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title-59•Title 59 — Revenue and Taxation
As used in this title:
(1) "Commission" and "tax commission" mean the State Tax Commission.
(2) "Deficiency" is as defined in Section 59-1-1402.
(1) As used in this section:
(a) "Account" means the Income Tax Surplus Restricted Account created in Subsection (2).
(b) "Material increase in state income tax revenue" means the same as that term is defined in Section 59-1-214.
(2) There is created within the Income Tax Fund a restricted account known as the "Income Tax Surplus Restricted Account."
(3) The account shall be funded by the revenue deposited into the account in accordance with Subsection (5).
(4)
(a) The account shall earn interest.
(b) The interest described in Subsection (4)(a) shall be deposited into the account.
(5) After receiving from the commission an electronic report under Subsection 59-1-214(6)(b) indicating the likelihood of a material increase in state income tax revenue, the Division of Finance shall, at the end of the fiscal year for which the material increase in state income tax revenue is expected, deposit into the account an amount of income tax revenue that is equal to the estimate of the amount of the material increase in state income tax revenue specified in the report.
(6) Upon appropriation, the money in the account may be used for the purposes specified by the Legislature in accordance with Utah Constitution, Article X, Section 1.
(1) The commission shall be composed of four members appointed by the governor with the advice and consent of the Senate in accordance with Title 63G, Chapter 24, Part 2, Vacancies.
(2) Subject to Subsection (3), the term of office of each commissioner shall be for four years and expire on June 30 of the year the term ends.
(3) The governor shall stagger a term described in Subsection (2) so that the term of one commissioner expires each year.
(4) A commissioner shall hold office until a successor is appointed and qualified.
(5)
(a) The governor may remove a commissioner from office for neglect of duty, inefficiency, or malfeasance, after notice and a hearing.
(b) If the governor removes a commissioner from office and appoints another person to replace the commissioner, the person the governor appoints to replace the commissioner:
(i) shall serve for the remainder of the unexpired term; and
(ii) may be reappointed as the governor determines.
(6) The individual the governor appoints or reappoints under Subsection (5) shall be made with the advice and consent of the Senate in accordance with Title 63G, Chapter 24, Part 2, Vacancies.
(7)
(a) Before appointing a commissioner, the governor shall request a list of names of potential appointees from:
(i) the Utah State Bar;
(ii) one or more organizations that represent certified public accountants who are licensed to practice in the state;
(iii) one or more organizations that represent persons who assess or appraise property in the state; and
(iv) one or more national organizations that:
(A) offer a professional certification in the areas of property tax, sales and use tax, and state income tax;
(B) require experience, education, and testing to obtain the certification; and
(C) require additional education to maintain the certification.
(b) In appointing a commissioner, the governor shall consider:
(i) to the extent names of potential appointees are submitted, the names of potential appointees submitted in accordance with Subsection (7)(a); and
(ii) any other potential appointee of the governor's own choosing.
(1) Each member of the commission:
(a) shall have significant tax experience that is relevant to holding office as a commissioner;
(b) shall have knowledge of tax administration or tax compliance;
(c) shall have executive and administrative experience; and
(d) except for one member who has substantial knowledge and expertise in the theory and practice of ad valorem taxation as described in Subsection (2)(a), shall have substantial knowledge and experience in one or more of the following:
(i) the theory and practice of excise taxation;
(ii) the theory and practice of income taxation;
(iii) the theory and practice of sales and use taxation; and
(iv) the theory and practice of corporate taxation.
(2)
(a) At least one member of the commission shall have substantial knowledge and experience in the theory and practice of ad valorem taxation.
(b) At least one member of the commission shall have substantial knowledge and experience in the theory and practice of accounting.
(3) The membership of the commission shall represent composite skills in accounting, auditing, property assessment, management, law, and finance.
(1) No person appointed as a member of the commission may hold any other office under the laws of this state, the government of the United States, or any other state. Each member shall devote full time to the duties of the office and may not hold any other position of trust or profit under the Constitution nor engage in any other occupation that would create a direct conflict with the duties of a commissioner.
(2) The salaries of the commissioners shall be established by the governor within the salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation. Commissioners shall also be allowed expenses as provided by law.
(3) No commissioner, executive director, or consultant shall engage in political or charitable fund raising activities. Commissioners and commission employees are governed by Title 67, Chapter 16, Utah Public Officers' and Employees' Ethics Act.
(4) A commissioner shall comply with the conflict of interest provisions described in Title 63G, Chapter 24, Part 3, Conflicts of Interest.
(1) Before entering upon the duties of office, a member of the commission shall qualify by taking the constitutional oath of office.
(2) The oath described in Subsection (1) shall be recorded and filed.
(1) The governor shall designate one of the members of the commission as chairperson.
(2)
(a) Three members of the commission constitute a quorum for the transaction of business.
(b) A quorum of the commission must participate in any order that constitutes a final agency action, as described in Section 63G-4-403, on:
(i) a formal adjudicative proceeding over which the commission has jurisdiction;
(ii) an informal adjudicative proceeding over which the commission has jurisdiction; or
(iii) an initial hearing conducted pursuant to Section 59-1-502.5.
(c) If a commission vote results in a tie vote on any matter described in Subsection (2)(b), the position of the taxpayer is considered to have prevailed.
(3) The commission shall be in session and open for the transaction of business during ordinary business hours each day.
(4) The commission may hold sessions or conduct investigations at any place in the state to facilitate the performance of its duties.
(1) The commission shall appoint the following persons who are qualified, knowledgeable, and experienced in matters relating to their respective positions, exempt under Title 63A, Chapter 17, Utah State Personnel Management Act, to serve at the pleasure of, and who are directly accountable to, the commission:
(a) in consultation with the governor and with the advice and consent of the Senate, an executive director;
(b) an administrative secretary;
(c) an internal audit unit; and
(d) an appeals staff.
(2) The governor shall establish the executive director's salary within the salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
(3) Division directors shall be appointed by the executive director subject to the approval of the commission. The division directors are exempt employees under Title 63A, Chapter 17, Utah State Personnel Management Act.
(4)
(a) The executive director may with the approval of the commission employ additional staff necessary to perform the duties and responsibilities of the commission. These employees are subject to Title 63A, Chapter 17, Utah State Personnel Management Act.
(b)
(i) The executive director may under Subsection (4)(a) employ criminal tax investigators to help the commission carry out its duties and responsibilities regarding criminal provisions of the state tax laws. The executive director may not employ more than eight criminal tax investigators at one time.
(ii) The executive director may designate investigators hired under this Subsection (4)(b) as special function officers, as defined in Section 53-13-105, to enforce the criminal provisions of the state tax laws.
(iii) Notwithstanding Section 49-15-201, any special function officer designated under this Subsection (4)(b) may not become or be designated as a member of the Public Safety Retirement Systems.
(5) The internal audit unit shall provide the following:
(a) an examination to determine the honesty and integrity of fiscal affairs, the accuracy and reliability of financial statements and reports, and the adequacy and effectiveness of financial controls to properly record and safeguard the acquisition, custody, and use of public funds;
(b) an examination to determine whether commission administrators have faithfully adhered to commission policies and legislative intent;
(c) an examination to determine whether the operations of the divisions and other units of the commission have been conducted in an efficient and effective manner;
(d) an examination to determine whether the programs administered by the divisions and other units of the commission have been effective in accomplishing intended objectives; and
(e) an examination to determine whether management control and information systems are adequate and effective in assuring that commission programs are administered faithfully, efficiently, and effectively.
(6) The appeals office shall receive and hear appeals to the commission and shall conduct the hearings in compliance with formal written rules approved by the commission. The commission has final review authority over the appeals.
(1) As used in this section:
(a) "Bureau" means the Bureau of Criminal Identification created in Section 53-10-201.
(b) "Return information" means the same as that term is defined in 26 U.S.C. Sec. 6103.
(2) The commission shall:
(a) require the following individuals to submit to a nationwide criminal background check and ongoing monitoring of that nationwide criminal background check as a condition of employment:
(i) an employee or contractor of the commission that has access to return information in the custody of the commission, regardless of whether access by the employee or contractor is authorized; and
(ii) an employee or contractor of the commission that has access to information in the custody of the commission in the Utah Criminal Justice Information System, regardless of whether access by the employee or contractor is authorized; and
(b) require the following individuals to submit to a nationwide criminal background check and ongoing monitoring of the nationwide criminal background check:
(i) an employee or contractor of another state agency, or an employee of the office of the attorney general, that has access to return information in the custody of the commission, regardless of whether access by the employee or contractor is authorized; and
(ii) an employee or contractor of another state agency, or an employee of the office of the attorney general, that has access to information in the custody of the commission in the Utah Criminal Justice Information System, regardless of whether access by the employee or contractor is authorized.
(3) The commission shall collect the following from an individual required to submit to a background check under Subsection (2):
(a) the personal identifying information required on the fingerprint card; and
(b) consent, on a form specified by the commission, for:
(i) an initial fingerprint-based state, regional, and national background check by the Federal Bureau of Investigation and the bureau upon submission of the application; and
(ii) retention of personal identifying information for ongoing monitoring through registration with the systems described in Subsection 53-10-108(13).
(4) For an individual required to submit to a background check under Subsection (2), the commission shall submit the individual's personal identifying information to the bureau for:
(a) an initial fingerprint-based background check by the Federal Bureau of Investigation and the bureau; and
(b) ongoing monitoring through registration with the systems described in Subsection 53-10-108(13) if the results of the initial background check do not contain disqualifying criminal history information as determined by the commission.
(5) The commission shall:
(a) submit any fees required under Subsection 53-10-108(15) to the bureau; and
(b) identify the appropriate privacy risk mitigation strategy that will be used to ensure that the commission only receives notifications for individuals described in Subsection (2).
(6) The bureau shall provide all the results from the state, regional, and nationwide criminal history background checks and monitoring performed under Subsection (4) to the commission.
(7) On or before May 1, 2019, the commission shall:
(a) collect the information and consent described in Subsection (3) from individuals described in Subsection (2)(a) who:
(i) were employed by or under contract with the commission prior to May 8, 2018; and
(ii) are employed by or under contract with the commission; and
(b) submit the information and consent described in Subsection (3) to the bureau for ongoing monitoring through registration with the systems described in Subsection 53-10-108(13).
(8) Upon receipt of criminal history information under Subsection 53-10-108(13) regarding an individual described in Subsection (2)(a), the commission shall assess the employment status of the employee or contractor.
(9) Upon receipt of criminal history information under Subsection 53-10-108(13) regarding an individual described in Subsection (2)(b), the commission shall deny the employee or contractor access to:
(a) return information in the custody of the commission; and
(b) information in the custody of the commission in the Utah Criminal Justice Information System.
The commission shall prepare and implement a plan for the administration of the divisions and other offices of the commission which do not report directly to the commission. The plan shall, by rule, establish the duties and responsibilities to be delegated to the executive director.
The main office of the commission shall be located in Salt Lake City. The commission may establish branch offices necessary for the convenience of the public and the efficient performance of its duties.
The commission shall adopt an official seal, and shall file an impression and description of the seal with the Division of Archives. Copies of any records in the possession of the commission may be authenticated with the seal of the commission attested by the signature of the commission's administrative secretary, and when so authenticated shall be received in evidence to the same extent and with the same effect as the originals.
The powers and duties of the commission are as follows:
(1) to sue and be sued in its own name;
(2) to adopt rules and policies consistent with the Constitution and laws of this state to govern the commission, executive director, division directors, and commission employees in the performance of their duties;
(3) to adopt rules and policies consistent with the Constitution and laws of the state, to govern county boards and officers in the performance of any duty relating to assessment, equalization, and collection of taxes;
(4) to prescribe the use of forms relating to the assessment of property for state or local taxation, the equalization of those assessments, the reporting of property or income for state or local taxation purposes, or for the computation of those taxes and the reporting of any information, statistics, or data required by the commission;
(5) to administer and supervise the tax laws of the state;
(6) to prepare and maintain from year to year a complete record of all lands subject to taxation in this state, and all machinery used in mining and all property or surface improvements upon or appurtenant to mines or mining claims;
(7) to exercise general supervision over county assessors, county boards of equalization, and other county officers in the performance of their duties relating to the assessment of property and collection of taxes, so that all assessments of property are uniform and equal, according to fair market value, and that the tax burden is distributed without favor or discrimination;
(8) to reconvene any county board of equalization which, when reconvened, may only address business approved by the commission and extend the time for which any county board of equalization may sit for the equalization of assessments;
(9) to confer with, advise, and direct county treasurers, assessors, and other county officers in matters relating to the assessment and equalization of property for taxation and the collection of taxes;
(10) to provide for and hold annually at such time and place as may be convenient a district or state convention of county assessors, auditors, and other county officers to consider and discuss matters relative to taxation, uniformity of valuation, and changes in the law relative to taxation and methods of assessment, to which county assessors and other officers called to attend shall attend at county expense;
(11) to direct proceedings, actions, and prosecutions to enforce the laws relating to the penalties, liabilities, and punishments of public officers, persons, and officers or agents of corporations for failure or neglect to comply with the statutes governing the reporting, assessment, and taxation of property;
(12) to cause complaints to be made in the proper court seeking removal from office of assessors, auditors, members of county boards, and other assessing, taxing, or disbursing officers, who are guilty of official misconduct or neglect of duty;
(13) to require county attorneys to immediately institute and prosecute actions and proceedings in respect to penalties, forfeitures, removals, and punishments for violations of the laws relating to the assessment and taxation of property in their respective counties;
(14) to require any person to furnish any information required by the commission to ascertain the value and the relative burden borne by all kinds of property in the state, and to require from all state and local officers any information necessary for the proper discharge of the duties of the commission;
(15) to examine all records relating to the valuation of property of any person;
(16) to subpoena witnesses to appear and give testimony and produce records relating to any matter before the commission;
(17) to cause depositions of witnesses to be taken as in civil actions at the request of the commission or any party to any matter or proceeding before the commission;
(18) to authorize any member or employee of the commission to administer oaths and affirmations in any matter or proceeding relating to the exercise of the powers and duties of the commission;
(19) to visit periodically each county of the state, to investigate and direct the work and methods of local assessors and other officials in the assessment, equalization, and taxation of property, and to ascertain whether the law requiring the assessment of all property not exempt from taxation, and the collection of taxes, have been properly administered and enforced;
(20) to carefully examine all cases where evasion or violation of the laws for assessment and taxation of property is alleged, to ascertain whether existing laws are defective or improperly administered;
(21) to furnish to the governor from time to time such assistance and information as the governor requires;
(22) to transmit to the governor and to each member of the Legislature recommendations as to legislation which will correct or eliminate defects in the operation of the tax laws and will equalize the burden of taxation within the state;
(23) to correct any error in any assessment made by it at any time before the tax is due and report the correction to the county auditor, who shall enter the corrected assessment upon the assessment roll;
(24) to compile and publish statistics relating to taxation in the state and prepare and submit an annual budget to the governor for inclusion in the state budget to be submitted to the Legislature;
(25) to perform any further duties imposed by law, and exercise all powers necessary in the performance of its duties;
(26) to adopt a schedule of fees assessed for services provided by the commission, unless otherwise provided by statute. The fee shall be reasonable and fair, and shall reflect the cost of services provided. Each fee established in this manner shall be submitted to and approved by the Legislature as part of the commission's annual appropriations request. The commission may not charge or collect any fee proposed in this manner without approval by the Legislature;
(27) to comply with the procedures and requirements of Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative proceedings; and
(28) to distribute money to improve the delivery of quality health care in rural areas of the state, as required by Section 26B-1-308.
(1) The commission shall establish a uniform system of accounts and when established it shall be followed by all taxing entities within the state.
(2) The commission may make rules directly relating to the administration of a uniform system of accounts and shall periodically publish these rules and distribute them to all taxing entities.
(3) The commission shall certify a list of all taxing entities that do not comply with the laws and rules pertaining to uniform accounts to the county attorney of the county in which the entity is located. The county attorney shall immediately notify the official or officials charged by law with complying with them. If the official or officials fail to so comply within 60 days after receipt of the notice, the county attorney shall commence proceedings in district court in mandamus to require performance.
(1) The commission shall annually provide an electronic report to the Revenue and Taxation Interim Committee on or before October 1 concerning the impacts of the reliance of this title on the Internal Revenue Code, including:
(a) any modification to the Internal Revenue Code that is likely to have a fiscal impact on state revenues:
(i) that became effective:
(A) if the commission is preparing its initial report in accordance with this section, during the previous calendar year; or
(B) if the commission has prepared a previous report in accordance with this section, after the most recent report prepared in accordance with this section; or
(ii) that have been enacted and will become effective prior to the end of the calendar year that begins January 1 following the current report prepared in accordance with this section;
(b) the fiscal impacts a modification described in Subsection (1)(a) may have on state revenues; and
(c) statutory or administrative options to:
(i) implement the effects on this title of a modification described in Subsection (1)(a); or
(ii) change this title to prevent this title from implementing a modification described in Subsection (1)(a).
(2) In a year in which the commission, the Office of the Legislative Fiscal Analyst, and the Governor's Office of Planning and Budget predict a material increase in state income tax revenue for the next fiscal year by consensus in accordance with Section 59-1-214, the commission shall submit the report described in Subsection 59-1-214(4)(a) as part of the report required under this section for the same year.
(1) As used in this section, "nonsubstantive change" means a change that does not alter the meaning of a publication.
(2) Except as provided in Subsection (3), if the commission revises an official numbered commission publication providing instruction to taxpayers, the commission, in accordance with Title 52, Chapter 4, Open and Public Meetings Act, shall place the publication revision on a commission meeting agenda and allow public comment on the revision.
(3) The commission is not required to hold a public meeting on a nonsubstantive change to an official numbered commission publication.
(1) As used in this section:
(a) "Federal tax law change" means any modification to the Internal Revenue Code approved by Congress.
(b) "Material increase in state income tax revenue" means a net increase in revenue the state is expected to receive from the income taxes imposed under this title for a fiscal year, as compared to the latest consensus revenue estimates adopted by the Executive Appropriations Committee, that is equal to or greater than .5% of the revenue the state received from the income taxes imposed under this title for the preceding fiscal year.
(c) "Specified entities" means the commission, the Office of the Legislative Fiscal Analyst, and the Governor's Office of Planning and Budget.
(2) The specified entities shall annually determine by consensus whether federal tax law changes will likely result in a material increase in state income tax revenue for:
(a) the next fiscal year; and
(b) the first taxable year in which the federal tax law change takes effect.
(3) In determining whether federal tax law changes will likely result in a material increase in state income tax revenue under Subsection (2), the specified entities may consider:
(a) federal tax law changes enacted in any taxable year;
(b) legislative action to increase or offset increases in state income tax revenue; and
(c) any other factors the specified entities determine to be relevant.
(4)
(a) The commission shall submit to the Revenue and Taxation Interim Committee an electronic report in any year in which the specified entities, by consensus, predict a material increase in state income tax revenue for the next fiscal year under Subsection (2).
(b) The report described in Subsection (4)(a) shall include:
(i) a description of each federal tax law change expected to result in a material increase in state income tax revenue for the next fiscal year; and
(ii) an estimate of the amount of the material increase in state income tax revenue that the state is expected to receive for the next fiscal year as a result of the federal tax law changes described under Subsection (4)(b)(i), based on consensus between the specified entities.
(c) The commission shall submit the report described in Subsection (4)(a):
(i) on or before October 1 of the year in which the consensus prediction under Subsection (2) is made; and
(ii) as part of the annual report required under Section 59-1-213 for the same year.
(5) Upon receiving the report described in Subsection (4)(a), the Revenue and Taxation Interim Committee shall:
(a) review the information provided in the report; and
(b) if the Revenue and Taxation Interim Committee decides to recommend legislative action to the Legislature in order to negate the material increase in state income tax revenue predicted for the next fiscal year, prepare legislation for consideration in the next annual general session.
(6)
(a) If the commission submits a report under Subsection (4), the specified entities shall, following the Legislature's next annual general session, determine by consensus whether legislative action taken during the annual general session negates the specified entities' initial prediction of a material increase in state income tax revenue for the next fiscal year.
(b)
(i) If the specified entities determine by consensus under Subsection (6)(a) that legislative action taken during the annual general session does not negate the specified entities' initial prediction of a material increase in state income tax revenue for the next fiscal year, the commission shall submit to the Division of Finance an electronic report on or before the June 1 following the annual general session.
(ii) The report described in this Subsection (6)(b) shall include the information required by Subsection (4)(b)(ii).
In all cases of levy of taxes, licenses, or other demands for public revenue which is deemed unlawful by the party whose property is taxed, or from whom the tax or license is demanded or enforced, that party may pay under protest the tax or license, or any part deemed unlawful, to the officers designated and authorized by law to collect the tax or license; and then the party so paying or a legal representative may bring an action in the tax division of the appropriate district court against the officer to whom the tax or license was paid, or against the state, county, municipality, or other taxing entity on whose behalf it was collected, to recover the tax or license or any portion of the tax or license paid under protest.
(1) This section applies to the following:
(a) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(b) a tax under Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(c) a tax under Chapter 10, Part 4, Withholding of Tax;
(d) a tax under Chapter 12, Sales and Use Tax Act;
(e) a tax under Chapter 13, Part 2, Motor Fuel;
(f) a tax under Chapter 13, Part 3, Special Fuel; and
(g) a tax under Chapter 13, Part 4, Aviation Fuel.
(2)
(a) A person required to collect, truthfully account for, and pay over a tax listed in Subsection (1) who willfully fails to collect the tax, fails to truthfully account for and pay over the tax, or attempts in any manner to evade or defeat the tax or the payment of the tax, is liable for a penalty equal to the total amount of the tax evaded, not collected, not accounted for, or not paid over.
(b) The penalty described in Subsection (2)(a) is in addition to other penalties provided by law.
(3)
(a) If the commission determines in accordance with Subsection (2) that a person is liable for the penalty, the commission shall mail a notice of the proposed penalty to the person.
(b) The notice of proposed penalty shall:
(i) set forth the basis of the assessment; and
(ii) be mailed:
(A) in accordance with Section 59-1-1404; and
(B) to the person's last-known address.
(4) Upon receipt of the notice of proposed penalty, the person against whom the penalty is proposed may:
(a) pay the amount of the proposed penalty at the place and time stated in the notice; or
(b) proceed in accordance with the review procedures of Subsection (5).
(5) A person against whom a penalty is proposed in accordance with Subsections (2) and (3) may contest the proposed penalty by filing a petition for an adjudicative proceeding with the commission.
(6) If the commission determines that the collection of the penalty is in jeopardy, this section does not prevent the immediate collection of the penalty in accordance with the procedures and requirements for an emergency proceeding under Title 63G, Chapter 4, Administrative Procedures Act.
(7)
(a) In a hearing before the commission and in a judicial review of the hearing, the commission and the court shall consider any inference and evidence that a person has willfully failed to collect, truthfully account for, or pay over a tax listed in Subsection (1).
(b) It is prima facie evidence that a person has willfully failed to collect, truthfully account for, or pay over a tax listed in Subsection (1) if the commission or a court finds that the person charged with the responsibility of collecting, accounting for, or paying over the taxes:
(i) made a voluntary, conscious, and intentional decision to prefer other creditors over the state government or utilize the tax money for personal purposes;
(ii) recklessly disregarded obvious or known risks that resulted in the failure to collect, truthfully account for, or pay over the tax; or
(iii) failed to investigate or to correct mismanagement, having notice that the tax was not or is not being collected, accounted for, or paid over as provided by law.
(c) The commission or court is not required to find a bad motive or specific intent to defraud the government or deprive the government of revenue to establish willfulness under this section.
(d) If the commission determines that a person is liable for the penalty under Subsection (2), the commission shall assess the penalty and give notice and demand for payment in accordance with Section 59-1-1411.
(1) For purposes of this section:
(a) "Overpayment" means an amount equal to the sum of:
(i) the amount by which a tax or fee a taxpayer paid exceeds the taxpayer's liability for the tax or fee; and
(ii) interest accruing to the amount described in Subsection (1)(a)(i).
(b) "Tax or fee" means any tax or fee administered by the commission.
(2) The commission may apply an overpayment of any tax or fee against a taxpayer's liability for any tax or fee.
(3) If the commission applies an overpayment of a tax or fee against a taxpayer's liability for a tax or fee, the commission shall notify the taxpayer in writing.
(1) As used in this section, "tax or fee" means a tax or fee administered by the commission.
(2) A class action that relates to a tax or fee may not be maintained in any court if a claim sought by a representative party seeking to maintain the class action arises as a result of:
(a) a person collecting a tax or fee from the representative party if the representative party is not required by law to pay the tax or fee; or
(b) any of the following that requires a change in the manner in which a tax or fee is required to be collected or paid:
(i) an administrative rule made by the commission;
(ii) a private letter ruling issued by the commission; or
(iii) a decision issued by:
(A) the commission; or
(B) a court of competent jurisdiction.
(3)
(a) A person may be included as a member of a class in a class action relating to a tax or fee only if the person:
(i) exhausts all administrative remedies with the commission; and
(ii) requests in writing to be included as a member of the class.
(b)
(i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules to simplify and expedite the administrative remedies a person shall exhaust as required by Subsection (3)(a).
(ii) The rules required by Subsection (3)(b)(i) may include rules providing for:
(A) expedited filing procedures and forms;
(B) consolidation of hearings procedures as may be reasonably needed to accommodate potential inclusion of similarly situated persons; and
(C) the designation of test or sample cases to avoid multiple hearings.
(4) Subject to Subsection (5), in a class action brought under this section against the state or its political subdivisions in which members of the class are awarded a refund or credit of a tax or fee by a court of competent jurisdiction, the total amount that may be recovered by members of the class may not exceed the difference between:
(a) the sum of:
(i) the amount of the refund or credit awarded to members of the class; and
(ii) interest as provided in Section 59-1-402; and
(b) if awarded in accordance with Subsection (5), the sum of:
(i) reasonable costs; and
(ii) reasonable attorney fees.
(5)
(a) For purposes of Subsection (4), at the discretion of the court, the court may award:
(i) reasonable costs as determined by the court; and
(ii) reasonable attorney fees determined under Subsection (5)(b).
(b) Reasonable attorney fees awarded in a class action may not exceed a reasonable hourly rate for work actually performed:
(i) as determined by the court; and
(ii) taking into account all facts and circumstances that the court considers reasonable.
(6) If any provision of this section, or the application of any provision of this section to any person or circumstance is held unconstitutional or invalid by a court of competent jurisdiction, the remainder of the section shall be given effect without the invalid provision or application.
(1) As used in this section:
(a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221.
(b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221.
(2) The commission may collect a convenience electronic payment fee established in accordance with the procedures and requirements of Section 63J-1-504 to cover the costs of electronic payments of taxes and fees administered by the commission.
(3) Notwithstanding any other provisions of this title, the commission shall use a fee imposed under this section as a dedicated credit to cover the costs of electronic payments.
(1) As used in this section, "qualifying tax, fee, or charge" means a tax, fee, or charge the commission administers under:
(a) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(b) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(c) Section 19-6-714;
(d) Section 19-6-805;
(e) Chapter 12, Sales and Use Tax Act, other than a tax under Chapter 12, Part 1, Tax Collection, or Chapter 12, Part 18, Additional State Sales and Use Tax Act;
(f) Section 59-27-105;
(g) Chapter 31, Cannabinoid Licensing and Tax Act;
(h) Chapter 32, Local Impact Mitigation Tax Act;
(i) Chapter 33, Wind or Solar Electric Generation Facility Capacity Tax;
(j) Chapter 35, Targeted Advertising Tax;
(k) Chapter 37, County Energy Excise Tax Act;
(l) Section 63H-1-205;
(m) Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone;
(n) Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone;
(o) Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City;
(p) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(q) Title 79, Chapter 6, Part 14, Energy Project Assessment.
(2) There is created a restricted account within the General Fund known as the "State Tax Commission Administrative Charge Account."
(3) Subject to the other provisions of this section, the restricted account shall consist of administrative charges the commission retains and deposits in accordance with this section.
(4) For purposes of this section, the administrative charge is a percentage of revenue the commission collects from each qualifying tax, fee, or charge of not to exceed the lesser of:
(a) 1.5%; or
(b) an equal percentage of revenue the commission collects from each qualifying tax, fee, or charge sufficient to cover the cost to the commission of administering the qualifying taxes, fees, or charges.
(5) The commission shall deposit an administrative charge into the restricted account.
(6) Interest earned on the restricted account shall be deposited into the General Fund.
(7) The commission shall expend money appropriated by the Legislature to the commission from the restricted account to administer qualifying taxes, fees, or charges or to offset general operational expenses.
(1) As used in this section:
(a) "Tax, fee, or charge" means:
(i) a tax, fee, or charge the commission administers under:
(A) this title;
(B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(D) Section 19-6-410.5;
(E) Section 19-6-714;
(F) Section 19-6-805;
(G) Section 34A-2-202;
(H) Section 40-6-14;
(I) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(J) Title 79, Chapter 6, Part 11, Utah Energy Council; or
(ii) another amount that by statute is subject to a penalty imposed under this section.
(b) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
(i) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
(ii) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
(iii) Chapter 2, Property Tax Act, except for Section 59-2-1309;
(iv) Chapter 3, Tax Equivalent Property Act; or
(v) Chapter 4, Privilege Tax.
(2)
(a) The due date for filing a return is:
(i) if the person filing the return is not allowed by law an extension of time for filing the return, the day on which the return is due as provided by law; or
(ii) if the person filing the return is allowed by law an extension of time for filing the return, the earlier of:
(A) the date the person files the return; or
(B) the last day of that extension of time as allowed by law.
(b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files a return after the due date described in Subsection (2)(a).
(c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
(i) $20; or
(ii)
(A) 2% of the unpaid tax, fee, or charge due on the return if the return is filed no later than five days after the due date described in Subsection (2)(a);
(B) 5% of the unpaid tax, fee, or charge due on the return if the return is filed more than five days after the due date but no later than 15 days after the due date described in Subsection (2)(a); or
(C) 10% of the unpaid tax, fee, or charge due on the return if the return is filed more than 15 days after the due date described in Subsection (2)(a).
(d) This Subsection (2) does not apply to:
(i) an amended return; or
(ii) a return with no tax due.
(3)
(a) Except as provided in Subsection (15), a person is subject to a penalty for failure to pay a tax, fee, or charge if:
(i) the person files a return on or before the due date for filing a return described in Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or before that due date;
(ii) the person:
(A) is subject to a penalty under Subsection (2)(b); and
(B) fails to pay the tax, fee, or charge due on a return within a 90-day period after the due date for filing a return described in Subsection (2)(a);
(iii)
(A) the person is subject to a penalty under Subsection (2)(b); and
(B) the commission estimates an amount of tax due for that person in accordance with Subsection 59-1-1406(2);
(iv) the person:
(A) is mailed a notice of deficiency; and
(B) within a 30-day period after the day on which the notice of deficiency described in Subsection (3)(a)(iv)(A) is mailed:
(I) does not file a petition for redetermination or a request for agency action; and
(II) fails to pay the tax, fee, or charge due on a return;
(v)
(A) the commission:
(I) issues an order constituting final agency action resulting from a timely filed petition for redetermination or a timely filed request for agency action; or
(II) is considered to have denied a request for reconsideration under Subsection 63G-4-302(3)(b) resulting from a timely filed petition for redetermination or a timely filed request for agency action; and
(B) the person fails to pay the tax, fee, or charge due on a return within a 30-day period after the date the commission:
(I) issues the order constituting final agency action described in Subsection (3)(a)(v)(A)(I); or
(II) is considered to have denied the request for reconsideration described in Subsection (3)(a)(v)(A)(II); or
(vi) the person fails to pay the tax, fee, or charge within a 30-day period after the date of a final judicial decision resulting from a timely filed petition for judicial review.
(b) For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
(i) $20; or
(ii)
(A) 2% of the unpaid tax, fee, or charge due on the return if the activated tax, fee, or charge due on the return is paid no later than five days after the due date for filing a return described in Subsection (2)(a);
(B) 5% of the unpaid tax, fee, or charge due on the return if the activated tax, fee, or charge due on the return is paid more than five days after the due date for filing a return described in Subsection (2)(a) but no later than 15 days after that due date; or
(C) 10% of the unpaid tax, fee, or charge due on the return if the activated tax, fee, or charge due on the return is paid more than 15 days after the due date for filing a return described in Subsection (2)(a).
(4)
(a) In the case of any underpayment of estimated tax or quarterly installments required by Sections 59-5-107, 59-5-207, 59-7-504, and 59-9-104, there shall be added a penalty in an amount determined by applying the interest rate provided under Section 59-1-402 plus four percentage points to the amount of the underpayment for the period of the underpayment.
(b)
(i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the excess of the required installment over the amount, if any, of the installment paid on or before the due date for the installment.
(ii) The period of the underpayment shall run from the due date for the installment to whichever of the following dates is the earlier:
(A) the original due date of the tax return, without extensions, for the taxable year; or
(B) with respect to any portion of the underpayment, the date on which that portion is paid.
(iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited against unpaid required installments in the order in which the installments are required to be paid.
(5)
(a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a person allowed by law an extension of time for filing a corporate franchise or income tax return under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not including the extension of time, the person fails to pay:
(i) for a person filing a corporate franchise or income tax return under Chapter 7, Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507(1)(b); or
(ii) for a person filing an individual income tax return under Chapter 10, Individual Income Tax Act, the payment required by Subsection 59-10-516(2).
(b) For purposes of Subsection (5)(a), the penalty per month during the period of the extension of time for filing the return is an amount equal to 2% of the tax due on the return, unpaid as of the day on which the return is due as provided by law.
(6) If a person does not file a return within an extension of time allowed by Section 59-7-505 or 59-10-516, the person:
(a) is not subject to a penalty in the amount described in Subsection (5)(b); and
(b) is subject to a penalty in an amount equal to the sum of:
(i) a late file penalty in an amount equal to the greater of:
(A) $20; or
(B) 10% of the tax due on the return, unpaid as of the day on which the return is due as provided by law, not including the extension of time; and
(ii) a late pay penalty in an amount equal to the greater of:
(A) $20; or
(B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return is due as provided by law, not including the extension of time.
(7)
(a) Additional penalties for an underpayment of a tax, fee, or charge are as provided in this Subsection (7)(a).
(i) Except as provided in Subsection (7)(c), if any portion of an underpayment of a tax, fee, or charge is due to negligence, the penalty is 10% of the portion of the underpayment that is due to negligence.
(ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of a tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% of the entire underpayment.
(iii) If any portion of an underpayment is due to an intent to evade a tax, fee, or charge, the penalty is the greater of $500 per period or 50% of the entire underpayment.
(iv) If any portion of an underpayment is due to fraud with intent to evade a tax, fee, or charge, the penalty is the greater of $500 per period or 100% of the entire underpayment.
(b) If the commission determines that a person is liable for a penalty imposed under Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the proposed penalty.
(i) The notice of proposed penalty shall:
(A) set forth the basis of the assessment; and
(B) be mailed by certified mail, postage prepaid, to the person's last-known address.
(ii) Upon receipt of the notice of proposed penalty, the person against whom the penalty is proposed may:
(A) pay the amount of the proposed penalty at the place and time stated in the notice; or
(B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
(iii) A person against whom a penalty is proposed in accordance with this Subsection (7) may contest the proposed penalty by filing a petition for an adjudicative proceeding with the commission.
(iv)
(A) If the commission determines that a person is liable for a penalty under this Subsection (7), the commission shall assess the penalty and give notice and demand for payment.
(B) The commission shall mail the notice and demand for payment described in Subsection (7)(b)(iv)(A):
(I) to the person's last-known address; and
(II) in accordance with Section 59-1-1404.
(c) A seller that voluntarily collects a tax under Subsection 59-12-107(2)(d) is not subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
(i) a court of competent jurisdiction issues a final unappealable judgment or order determining that:
(A) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a) or is a seller required to pay or collect and remit sales and use taxes under Subsection 59-12-107(2)(b) or (2)(c); and
(B) the commission or a county, city, or town may require the seller to collect a tax under Subsections 59-12-103(2)(a) through (e); or
(ii) the commission issues a final unappealable administrative order determining that:
(A) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a) or is a seller required to pay or collect and remit sales and use taxes under Subsection 59-12-107(2)(b) or (2)(c); and
(B) the commission or a county, city, or town may require the seller to collect a tax under Subsections 59-12-103(2)(a) through (e).
(d) A seller that voluntarily collects a tax under Subsection 59-12-107(2)(d) is not subject to the penalty under Subsection (7)(a)(ii) if:
(i)
(A) a court of competent jurisdiction issues a final unappealable judgment or order determining that:
(I) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a) or is a seller required to pay or collect and remit sales and use taxes under Subsection 59-12-107(2)(b) or (2)(c); and
(II) the commission or a county, city, or town may require the seller to collect a tax under Subsections 59-12-103(2)(a) through (e); or
(B) the commission issues a final unappealable administrative order determining that:
(I) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a) or is a seller required to pay or collect and remit sales and use taxes under Subsection 59-12-107(2)(b) or (2)(c); and
(II) the commission or a county, city, or town may require the seller to collect a tax under Subsections 59-12-103(2)(a) through (e); and
(ii) the seller's intentional disregard of law or rule is warranted by existing law or by a nonfrivolous argument for the extension, modification, or reversal of existing law or the establishment of new law.
(8)
(a) Subject to Subsections (8)(b) and (c), the penalty for failure to file an information return, information report, or a complete supporting schedule is $50 for each information return, information report, or supporting schedule up to a maximum of $1,000.
(b) If an employer is subject to a penalty under Subsection (13), the employer may not be subject to a penalty under Subsection (8)(a).
(c) If an employer is subject to a penalty under this Subsection (8) for failure to file a return in accordance with Subsection 59-10-406(3) on or before the due date described in Subsection 59-10-406(3)(b)(ii), the commission may not impose a penalty under this Subsection (8) unless the return is filed more than 14 days after the due date described in Subsection 59-10-406(3)(b)(ii).
(9) If a person, in furtherance of a frivolous position, has a prima facie intent to delay or impede administration of a law relating to a tax, fee, or charge and files a purported return that fails to contain information from which the correctness of reported tax, fee, or charge liability can be determined or that clearly indicates that the tax, fee, or charge liability shown is substantially incorrect, the penalty is $500.
(10)
(a) A seller that fails to remit a tax, fee, or charge monthly as required by Subsection 59-12-108(1)(a):
(i) is subject to a penalty described in Subsection (2); and
(ii) may not retain the percentage of sales and use taxes that would otherwise be allowable under Subsection 59-12-108(2).
(b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as required by Subsection 59-12-108(1)(a)(ii)(B):
(i) is subject to a penalty described in Subsection (2); and
(ii) may not retain the percentage of sales and use taxes that would otherwise be allowable under Subsection 59-12-108(2).
(11)
(a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
(i) commits an act described in Subsection (11)(b) with respect to one or more of the following documents:
(A) a return;
(B) an affidavit;
(C) a claim; or
(D) a document similar to Subsections (11)(a)(i)(A) through (C);
(ii) knows or has reason to believe that the document described in Subsection (11)(a)(i) will be used in connection with any material matter administered by the commission; and
(iii) knows that the document described in Subsection (11)(a)(i), if used in connection with any material matter administered by the commission, would result in an understatement of another person's liability for a tax, fee, or charge.
(b) The following acts apply to Subsection (11)(a)(i):
(i) preparing any portion of a document described in Subsection (11)(a)(i);
(ii) presenting any portion of a document described in Subsection (11)(a)(i);
(iii) procuring any portion of a document described in Subsection (11)(a)(i);
(iv) advising in the preparation or presentation of any portion of a document described in Subsection (11)(a)(i);
(v) aiding in the preparation or presentation of any portion of a document described in Subsection (11)(a)(i);
(vi) assisting in the preparation or presentation of any portion of a document described in Subsection (11)(a)(i); or
(vii) counseling in the preparation or presentation of any portion of a document described in Subsection (11)(a)(i).
(c) For purposes of Subsection (11)(a), the penalty:
(i) shall be imposed by the commission;
(ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
(iii) is in addition to any other penalty provided by law.
(d) The commission may seek a court order to enjoin a person from engaging in conduct that is subject to a penalty under this Subsection (11).
(e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules prescribing the documents that are similar to Subsections (11)(a)(i)(A) through (C).
(12)
(a) Criminal offenses and penalties are provided in Subsections (12)(b) through (e).
(b)
(i) A person who is required by this title or any laws the commission administers or regulates to register with or obtain a license or permit from the commission, who operates without having registered or secured a license or permit, or who operates when the registration, license, or permit is expired or not current, is guilty of a class B misdemeanor.
(ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(b)(i), the penalty may not:
(A) be less than $500; or
(B) exceed $1,000.
(c)
(i) With respect to a tax, fee, or charge, a person who knowingly and intentionally, and without a reasonable good faith basis, fails to make, render, sign, or verify a return within the time required by law or to supply information within the time required by law, or who makes, renders, signs, or verifies a false or fraudulent return or statement, or who supplies false or fraudulent information, is guilty of a third degree felony.
(ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(c)(i), the penalty may not:
(A) be less than $1,000; or
(B) exceed $5,000.
(d)
(i) A person who intentionally or willfully attempts to evade or defeat a tax, fee, or charge or the payment of a tax, fee, or charge is, in addition to other penalties provided by law, guilty of a second degree felony.
(ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(d)(i), the penalty may not:
(A) be less than $1,500; or
(B) exceed $25,000.
(e)
(i) A person is guilty of a second degree felony if that person commits an act:
(A) described in Subsection (12)(e)(ii) with respect to one or more of the following documents:
(I) a return;
(II) an affidavit;
(III) a claim; or
(IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
(B) subject to Subsection (12)(e)(iii), with knowledge that the document described in Subsection (12)(e)(i)(A):
(I) is false or fraudulent as to any material matter; and
(II) could be used in connection with any material matter administered by the commission.
(ii) The following acts apply to Subsection (12)(e)(i):
(A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
(B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
(C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
(D) advising in the preparation or presentation of any portion of a document described in Subsection (12)(e)(i)(A);
(E) aiding in the preparation or presentation of any portion of a document described in Subsection (12)(e)(i)(A);
(F) assisting in the preparation or presentation of any portion of a document described in Subsection (12)(e)(i)(A); or
(G) counseling in the preparation or presentation of any portion of a document described in Subsection (12)(e)(i)(A).
(iii) This Subsection (12)(e) applies:
(A) regardless of whether the person for which the document described in Subsection (12)(e)(i)(A) is prepared or presented:
(I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
(II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
(B) in addition to any other penalty provided by law.
(iv) Notwithstanding Section 76-3-301, for purposes of this Subsection (12)(e), the penalty may not:
(A) be less than $1,500; or
(B) exceed $25,000.
(v) The commission may seek a court order to enjoin a person from engaging in conduct that is subject to a penalty under this Subsection (12)(e).
(vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules prescribing the documents that are similar to Subsections (12)(e)(i)(A)(I) through (III).
(f) The statute of limitations for prosecution for a violation of this Subsection (12) is the later of six years:
(i) from the date the tax should have been remitted; or
(ii) after the day on which the person commits the criminal offense.
(13)
(a) An employer that is required to file a form with the commission in accordance with Subsection 59-10-406(8) or (9) is subject to a penalty described in Subsection (13)(b) if the employer:
(i) fails to file the form with the commission in an electronic format approved by the commission as required by Subsection 59-10-406(8) or (9);
(ii) fails to file the form on or before the due date provided in Subsection 59-10-406(8) or (9);
(iii) fails to provide accurate information on the form; or
(iv) fails to provide all of the information required by the Internal Revenue Service to be contained on the form.
(b) For purposes of Subsection (13)(a), the penalty is:
(i) $30 per form, not to exceed $75,000 in a calendar year, if the employer files the form in accordance with Subsection 59-10-406(8) or (9), more than 14 days, but no later than 60 days, after the due date provided in Subsection 59-10-406(8) or (9);
(ii) $60 per form, not to exceed $200,000 in a calendar year, if the employer files the form in accordance with Subsection 59-10-406(8) or (9), more than 60 days after the due date provided in Subsection 59-10-406(8) or (9) but on or before June 1; or
(iii) $100 per form, not to exceed $500,000 in a calendar year, if the employer:
(A) files the form in accordance with Subsection 59-10-406(8) or (9) after June 1; or
(B) fails to file the form.
(c) A producer that is required to file a form with the commission in accordance with Subsection 59-6-103(3) is subject to a penalty described in Subsection (13)(d) if the producer:
(i) fails to file the form with the commission in the format approved by the commission as required by Subsection 59-6-103(3);
(ii) fails to file the form on or before the due date provided in Subsection 59-6-103(3);
(iii) fails to provide accurate information on the form; or
(iv) fails to provide all of the information required by the Internal Revenue Service to be contained on the form.
(d) For purposes of Subsection (13)(c), the penalty is:
(i) $30 per form, not to exceed $75,000 in a calendar year, if the producer files the form in accordance with Subsection 59-6-103(3), more than 14 days, but no later than 60 days, after the due date provided in Subsection 59-6-103(3);
(ii) $60 per form, not to exceed $200,000 in a calendar year, if the producer files the form in accordance with Subsection 59-6-103(3), more than 60 days after the due date provided in Subsection 59-6-103(3) but on or before June 1; or
(iii) $100 per form, not to exceed $500,000 in a calendar year, if the producer:
(A) files the form in accordance with Subsection 59-6-103(3) after June 1; or
(B) fails to file the form.
(14) Upon making a record of the commission's actions, and upon reasonable cause shown, the commission may waive, reduce, or compromise any of the penalties or interest imposed under this part.
(15) Failure to pay a tax described in Subsection 59-10-1403.2(2) shall be subject to a penalty as described in Subsection (3) except that the penalty shall be:
(a) assessed only if the pass-through entity reports tax paid on a Utah Schedule K-1 but does not pay some or all of the tax reported; and
(b) calculated based on the difference between the amount of tax reported and the amount of tax paid.
(1) As used in this section:
(a) "Final judicial decision" means a final ruling by a court of this state or the United States for which the time for any further review or proceeding has expired.
(b) "Retroactive application of a judicial decision" means the application of a final judicial decision that:
(i) invalidates a state or federal taxation statute; and
(ii) requires the state to provide a refund for an overpayment that was made:
(A) before the final judicial decision; or
(B) during the 180-day period after the final judicial decision.
(c)
(i) "Tax, fee, or charge" means:
(A) a tax, fee, or charge the commission administers under:
(I) this title;
(II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(IV) Section 19-6-410.5;
(V) Section 19-6-714;
(VI) Section 19-6-805;
(VII) Section 34A-2-202;
(VIII) Section 40-6-14; or
(IX) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(B) another amount that by statute is subject to interest imposed under this section.
(ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
(A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
(B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
(C) Chapter 2, Property Tax Act, except for Section 59-2-1309;
(D) Chapter 3, Tax Equivalent Property Act;
(E) Chapter 4, Privilege Tax; or
(F) Chapter 13, Part 5, Interstate Agreements.
(2) Except as otherwise provided for by law, the commission shall calculate the interest rate for a calendar year for a tax, fee, or charge the commission administers based on the federal short-term rate determined by the Secretary of the Treasury under Section 6621, Internal Revenue Code, in effect for the preceding fourth calendar quarter.
(3) The interest rate calculation shall be as follows:
(a) except as provided in Subsection (7), in the case of an overpayment or refund, the commission shall calculate simple interest at the rate of two percentage points above the federal short-term rate; or
(b) in the case of an underpayment, deficiency, or delinquency, the commission shall calculate simple interest at the rate of two percentage points above the federal short-term rate.
(4) Notwithstanding Subsection (2) or (3), the commission shall determine the interest rate applicable to certain installment sales for purposes of a tax under Chapter 7, Corporate Franchise and Income Taxes, in accordance with Section 453A, Internal Revenue Code, as provided in Section 59-7-112.
(5)
(a) Except as provided in Subsection (5)(c), the commission may not pay interest on an overpayment of a tax, fee, or charge if the overpayment of the tax, fee, or charge is refunded within:
(i) 45 days after the last date provided for filing the return:
(A) with respect to a tax under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; and
(B) if the return is filed electronically; or
(ii) 90 days after the last date provided for filing the return:
(A) with respect to a tax, fee, or charge, except for a tax under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; or
(B) if the return is not filed electronically.
(b) Except as provided in Subsection (5)(c), if a person files a return after the last date provided for filing the return, interest is not allowed on the overpayment if the overpayment is refunded within:
(i) 45 days after the date the return is filed:
(A) with respect to a tax under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; and
(B) if the return is filed electronically; or
(ii) 90 days after the date the return is filed:
(A) with respect to a tax, fee, or charge, except for a tax under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; or
(B) if the return is not filed electronically.
(c)
(i) Subject to Subsection (5)(c)(ii), for an amended return, the commission shall pay interest on an overpayment for a time period:
(A) that begins on the later of the date the original return was filed orthe due date for filing the original return not including any extensions for filing the original return; and
(B) that ends on the date the commission receives the amended return.
(ii)
(A) For interest that accrues on or after January 1, 2026, the maximum amount of interest authorized by Subsection (5)(c)(i) is $100 per calendar year.
(B) Subsection (5)(c)(ii)(A) does not apply to an overpayment provided to a federally recognized tribe or an overpayment resulting from commission error.
(iii) For an amended return filed electronically with respect to a tax under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act, the commission shall pay interest on an overpayment if the commission does not process a refund of the overpayment within a 45-day period after the date the commission receives the amended return, for a time period:
(A) that begins 46 days after the commission receives the amended return; and
(B) that ends on the date that the commission completes processing the refund of the overpayment.
(iv) For an amended return not filed electronically or with respect to any tax, fee, or charge not described in Subsection (5)(c)(iii), the commission shall pay interest on an overpayment if the commission does not process a refund of the overpayment within a 90-day period after the date the commission receives the amended return, for a time period:
(A) that begins 91 days after the commission receives the amended return; and
(B) that ends on the date that the commission completes processing the refund of the overpayment.
(6) The commission shall compute interest on any underpayment, deficiency, or delinquency of a tax, fee, or charge from the time the original return is due, excluding any filing or payment extensions, to the date the payment is received.
(7) The commission may not pay interest on a refund relating to an overpayment of a tax, fee, or charge that arises from a statute that is determined to be invalid under state or federal law or declared unconstitutional under the constitution of the United States or Utah if the basis for the refund is the retroactive application of a judicial decision upholding the claim of unconstitutionality or the invalidation of a statute.
(1) As used in this section:
(a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
(i) the commission administers under:
(A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax Act;
(B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(D) Section 19-6-805;
(E) Section 63H-1-205; or
(F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; and
(ii) with respect to which the commission distributes the revenue collected from the tax, fee, or charge to a qualifying jurisdiction.
(b) "GOED" means the Governor's Office of Economic Development created in Section 63N-1a-301.
(c) "Qualifying jurisdiction" means:
(i) a county, city, or town;
(ii) the military installation development authority created in Section 63H-1-201;
(iii) the Utah Inland Port Authority created in Section 11-58-201; or
(iv) the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201.
(2)
(a) Any of the following may not divulge or make known in any manner any information gained by that person from any return filed with the commission:
(i) a tax commissioner;
(ii) an agent, clerk, or other officer or employee of the commission; or
(iii) a representative, agent, clerk, or other officer or employee of any county, city, or town.
(b) An official charged with the custody of a return filed with the commission is not required to produce the return or evidence of anything contained in the return in any action or proceeding in any court, except:
(i) in accordance with judicial order;
(ii) on behalf of the commission in any action or proceeding under:
(A) this title; or
(B) other law under which persons are required to file returns with the commission;
(iii) on behalf of the commission in any action or proceeding to which the commission is a party; or
(iv) on behalf of any party to any action or proceeding under this title if the report or facts shown by the return are directly involved in the action or proceeding.
(c) Notwithstanding Subsection (2)(b), a court may require the production of, and may admit in evidence, any portion of a return or of the facts shown by the return, as are specifically pertinent to the action or proceeding.
(d) Notwithstanding any other provision of state law, a person described in Subsection (2)(a) may not divulge or make known in any manner any information gained by that person from any return filed with the commission to the extent that the disclosure is prohibited under federal law.
(3) This section does not prohibit:
(a) a person or that person's authorized representative from receiving a copy of any return or report filed in connection with that person's own tax;
(b) the publication of statistics as long as the statistics are classified to prevent the identification of particular reports or returns; and
(c) the inspection by the attorney general or other legal representative of the state of the report or return of any taxpayer:
(i) who brings action to set aside or review a tax based on the report or return;
(ii) against whom an action or proceeding is contemplated or has been instituted under this title; or
(iii) against whom the state has an unsatisfied money judgment.
(4)
(a) Notwithstanding Subsection (2) and for purposes of administration, the commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, provide for a reciprocal exchange of information with:
(i) the United States Internal Revenue Service; or
(ii) the revenue service of any other state.
(b) Notwithstanding Subsection (2) and for all taxes except individual income tax and corporate franchise tax, the commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and other written statements with the federal government, any other state, any of the political subdivisions of another state, or any political subdivision of this state, except as limited by Sections 59-12-209 and 59-12-210, if the political subdivision, other state, or the federal government grant substantially similar privileges to this state.
(c) Notwithstanding Subsection (2) and for all taxes except individual income tax and corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, provide for the issuance of information concerning the identity and other information of taxpayers who have failed to file tax returns or to pay any tax due.
(d) Notwithstanding Subsection (2), the commission shall provide to the director of the Division of Environmental Response and Remediation, as defined in Section 19-6-402, as requested by the director of the Division of Environmental Response and Remediation, any records, returns, or other information filed with the commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5 regarding the environmental assurance program participation fee.
(e) Notwithstanding Subsection (2), at the request of any person the commission shall provide that person sales and purchase volume data reported to the commission on a report, return, or other information filed with the commission under:
(i) Chapter 13, Part 2, Motor Fuel; or
(ii) Chapter 13, Part 4, Aviation Fuel.
(f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer, as defined in Section 59-22-202, the commission shall report to the manufacturer:
(i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the manufacturer and reported to the commission for the previous calendar year under Section 59-14-407; and
(ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the manufacturer for which a tax refund was granted during the previous calendar year under Section 59-14-401 and reported to the commission under Subsection 59-14-401(1)(a)(v).
(g) Notwithstanding Subsection (2), the commission shall notify manufacturers, distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited from selling cigarettes to consumers within the state under Subsection 59-14-210(2).
(h) Notwithstanding Subsection (2), the commission may:
(i) provide to the Division of Consumer Protection within the Department of Commerce and the attorney general data:
(A) reported to the commission under Section 59-14-212; or
(B) related to a violation under Section 59-14-211; and
(ii) upon request, provide to any person data reported to the commission under Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
(i) Notwithstanding Subsection (2), the commission shall, at the request of a committee of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's Office of Planning and Budget, provide to the committee or office the total amount of revenue collected by the commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period specified by the committee or office.
(j) Notwithstanding Subsection (2), the commission shall make the directory required by Section 59-14-603 available for public inspection.
(k) Notwithstanding Subsection (2), the commission may share information with federal, state, or local agencies as provided in Subsection 59-14-606(3).
(l)
(i) Notwithstanding Subsection (2), the commission shall provide the Office of Recovery Services within the Department of Health and Human Services any relevant information obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer who has become obligated to the Office of Recovery Services.
(ii) The information described in Subsection (4)(l)(i) may be provided by the Office of Recovery Services to any other state's child support collection agency involved in enforcing that support obligation.
(m)
(i) Notwithstanding Subsection (2), upon request from the state court administrator, the commission shall provide to the state court administrator, the name, address, telephone number, county of residence, and social security number on resident returns filed under Chapter 10, Individual Income Tax Act.
(ii) The state court administrator may use the information described in Subsection (4)(m)(i) only as a source list for the master jury list described in Section 78B-1-106.
(n)
(i) As used in this Subsection (4)(n):
(A) "GOED" means the Governor's Office of Economic Development created in Section 63N-1a-301.
(B) "Income tax information" means information gained by the commission that is required to be attached to or included in a return filed with the commission under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
(C) "Other tax information" means information gained by the commission that is required to be attached to or included in a return filed with the commission except for a return filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
(D) "Tax information" means income tax information or other tax information.
(ii)
(A) Notwithstanding Subsection (2) and except as provided in Subsection (4)(n)(ii)(B) or (C), the commission shall at the request of GOED provide to GOED all income tax information.
(B) For purposes of a request for income tax information made under Subsection (4)(n)(ii)(A), GOED may not request and the commission may not provide to GOED a person's address, name, social security number, or taxpayer identification number.
(C) In providing income tax information to GOED, the commission shall in all instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
(iii)
(A) Notwithstanding Subsection (2) and except as provided in Subsection (4)(n)(iii)(B), the commission shall at the request of GOED provide to GOED other tax information.
(B) Before providing other tax information to GOED, the commission shall redact or remove any name, address, social security number, or taxpayer identification number.
(iv) GOED may provide tax information received from the commission in accordance with this Subsection (4)(n) only:
(A) as a fiscal estimate, fiscal note information, or statistical information; and
(B) if the tax information is classified to prevent the identification of a particular return.
(v)
(A) A person may not request tax information from GOED under Title 63G, Chapter 2, Government Records Access and Management Act, or this section, if GOED received the tax information from the commission in accordance with this Subsection (4)(n).
(B) GOED may not provide to a person that requests tax information in accordance with Subsection (4)(n)(v)(A) any tax information other than the tax information GOED provides in accordance with Subsection (4)(n)(iv).
(o) Notwithstanding Subsection (2), the commission may provide to the governing board of the agreement or a taxing official of another state, the District of Columbia, the United States, or a territory of the United States:
(i) the following relating to an agreement sales and use tax:
(A) information contained in a return filed with the commission;
(B) information contained in a report filed with the commission;
(C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
(D) a document filed with the commission; or
(ii) a report of an audit or investigation made with respect to an agreement sales and use tax.
(p) Notwithstanding Subsection (2), the commission may provide information concerning a taxpayer's state income tax return or state income tax withholding information to the Driver License Division if the Driver License Division:
(i) requests the information; and
(ii) provides the commission with a signed release form from the taxpayer allowing the Driver License Division access to the information.
(q) Notwithstanding Subsection (2), the commission shall provide to the Utah Communications Authority, or a division of the Utah Communications Authority, the information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and 63H-7a-502.
(r) Notwithstanding Subsection (2), the commission shall provide to the Utah Educational Savings Plan information related to a resident or nonresident individual's contribution to a Utah Educational Savings Plan account as designated on the resident or nonresident's individual income tax return as provided under Section 59-10-1313.
(s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under Sections 26B-3-106 and 26B-3-903, the commission shall provide an eligibility worker with the Department of Health and Human Services or the department's designee with the adjusted gross income of an individual if:
(i) an eligibility worker with the Department of Health and Human Services or the department's designee requests the information from the commission; and
(ii) the eligibility worker has complied with the identity verification and consent provisions of Sections 26B-3-106 and 26B-3-903.
(t) Notwithstanding Subsection (2), the commission may provide to a county, as determined by the commission, information declared on an individual income tax return in accordance with Section 59-10-103.1 that relates to eligibility to claim a residential exemption authorized under Section 59-2-103.
(u) Notwithstanding Subsection (2), the commission shall provide a report regarding any access line provider that is over 90 days delinquent in payment to the commission of amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges, to the board of the Utah Communications Authority created in Section 63H-7a-201.
(v) Notwithstanding Subsection (2), the commission shall provide the Department of Environmental Quality a report on the amount of tax paid by a radioactive waste facility for the previous calendar year under Section 59-24-103.5.
(w) Notwithstanding Subsection (2), the commission may, upon request, provide to the Department of Workforce Services any information received under Chapter 10, Part 4, Withholding of Tax, that is relevant to the duties of the Department of Workforce Services.
(x) Notwithstanding Subsection (2), the commission may provide the Public Service Commission or the Division of Public Utilities information related to a seller that collects and remits to the commission a charge described in Subsection 69-2-405(2), including the seller's identity and the number of charges described in Subsection 69-2-405(2) that the seller collects.
(y)
(i) Notwithstanding Subsection (2), the commission shall provide to each qualifying jurisdiction the collection data necessary to verify the revenue collected by the commission for a distributed tax, fee, or charge collected within the qualifying jurisdiction.
(ii) In addition to the information provided under Subsection (4)(y)(i), the commission shall provide a qualifying jurisdiction with copies of returns and other information relating to a distributed tax, fee, or charge collected within the qualifying jurisdiction.
(iii)
(A) To obtain the information described in Subsection (4)(y)(ii), the chief executive officer or the chief executive officer's designee of the qualifying jurisdiction shall submit a written request to the commission that states the specific information sought and how the qualifying jurisdiction intends to use the information.
(B) The information described in Subsection (4)(y)(ii) is available only in official matters of the qualifying jurisdiction.
(iv) Information that a qualifying jurisdiction receives in response to a request under this subsection is:
(A) classified as a private record under Title 63G, Chapter 2, Government Records Access and Management Act; and
(B) subject to the confidentiality requirements of this section.
(z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic Beverage Services Commission, upon request, with taxpayer status information related to state tax obligations necessary to comply with the requirements described in Section 32B-1-203.
(aa) Notwithstanding Subsection (2), the commission shall inform the Department of Workforce Services, as soon as practicable, whether an individual claimed and is entitled to claim a federal earned income tax credit for the year requested by the Department of Workforce Services if:
(i) the Department of Workforce Services requests this information; and
(ii) the commission has received the information release described in Section 35A-9-604.
(bb)
(i) As used in this Subsection (4)(bb), "unclaimed property administrator" means the administrator or the administrator's agent, as those terms are defined in Section 67-4a-102.
(ii)
(A) Notwithstanding Subsection (2), upon request from the unclaimed property administrator, subject to the commission's availability of the information, and to the extent allowed under federal law, the commission shall provide the unclaimed property administrator the name, address, telephone number, email address, county of residence, and social security number or federal employer identification number on any return filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
(B) The unclaimed property administrator may use the information described in Subsection (4)(bb)(ii)(A) only for the purpose of returning unclaimed property to the property's owner in accordance with Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act.
(iii) The unclaimed property administrator is subject to the confidentiality provisions of this section with respect to any information the unclaimed property administrator receives under this Subsection (4)(bb).
(iv) The commission is not liable for actions arising from the unclaimed property administrator's use of information that the commission provides to the unclaimed property administrator upon request under this Subsection (4)(bb).
(cc) Notwithstanding Subsection (2), the commission may, upon request, disclose a taxpayer's state individual income tax information to a program manager of the Utah Fits All Scholarship Program under Section 53F-6-402 if:
(i) the taxpayer consents in writing to the disclosure;
(ii) the taxpayer's written consent includes the taxpayer's name, social security number, and any other information the commission requests that is necessary to verify the identity of the taxpayer; and
(iii) the program manager provides the taxpayer's written consent to the commission.
(dd) Notwithstanding Subsection (2), the commission may, upon request, disclose a taxpayer's state individual income tax information to a scholarship granting organization of the Carson Smith Opportunity Scholarship Program under Section 53E-7-402 if:
(i) the taxpayer consents in writing to the disclosure;
(ii) the taxpayer's written consent includes the taxpayer's name, social security number, and any other information the commission requests that is necessary to verify the identity of the taxpayer; and
(iii) the program manager provides the taxpayer's written consent to the commission.
(ee) Notwithstanding Subsection (2), the commission may provide to the Division of Finance within the Department of Government Operations any information necessary to facilitate a payment from the commission to a taxpayer, including:
(i) the name of the taxpayer entitled to the payment or any other person legally authorized to receive the payment;
(ii) the taxpayer identification number of the taxpayer entitled to the payment;
(iii) the payment identification number and amount of the payment;
(iv) the tax year to which the payment applies and date on which the payment is due;
(v) a mailing address to which the payment may be directed; and
(vi) information regarding an account at a depository institution to which the payment may be directed, including the name of the depository institution, the type of account, the account number, and the routing number for the account.
(ff) Notwithstanding Subsection (2), the commission shall provide the total amount of revenue collected by the commission under Subsection 59-5-202(5):
(i) at the request of a committee of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's Office of Planning and Budget, to the committee or office for the time period specified by the committee or office; and
(ii) to the Division of Finance for purposes of the Division of Finance administering Subsection 59-5-202(5).
(gg) Notwithstanding Subsection (2), the commission may provide the Department of Agriculture and Food with information from a return filed in accordance with Chapter 31, Cannabinoid Licensing and Tax Act.
(hh) Notwithstanding Subsection (2), the commission shall provide the Department of Workforce Services with the information described in Section 35A-3-105.
(ii) Notwithstanding Subsection (2), the commission may provide aggregated information to the Utah Population Committee, created in Section 63C-20-103, if the Utah Population Committee requests the information in accordance with Section 63C-20-105.
(5)
(a) Each report and return shall be preserved for at least three years.
(b) After the three-year period provided in Subsection (5)(a) the commission may destroy a report or return.
(6)
(a) Any individual who violates this section is guilty of a class A misdemeanor.
(b) If the individual described in Subsection (6)(a) is an officer or employee of the state, the individual shall be dismissed from office and be disqualified from holding public office in this state for a period of five years thereafter.
(c) Notwithstanding Subsection (6)(a) or (b), GOED, when requesting information in accordance with Subsection (4)(n)(iii), or an individual who requests information in accordance with Subsection (4)(n)(v):
(i) is not guilty of a class A misdemeanor; and
(ii) is not subject to:
(A) dismissal from office in accordance with Subsection (6)(b); or
(B) disqualification from holding public office in accordance with Subsection (6)(b).
(d) Notwithstanding Subsection (6)(a) or (b), for a disclosure of information to the Office of the Legislative Auditor General in accordance with Title 36, Chapter 12, Legislative Organization, an individual described in Subsection (2):
(i) is not guilty of a class A misdemeanor; and
(ii) is not subject to:
(A) dismissal from office in accordance with Subsection (6)(b); or
(B) disqualification from holding public office in accordance with Subsection (6)(b).
(7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
(1) As used in this section:
(a) "Office" means:
(i) the Office of the Legislative Fiscal Analyst, established in Section 36-12-13;
(ii) the Office of Legislative Research and General Counsel, established in Section 36-12-12; or
(iii) the Governor's Office of Planning and Budget, created in Section 63J-4-201.
(b)
(i) "Return information" means information gained by the commission that is required to be attached to or included in a return filed with the commission.
(ii) "Return information" does not include information that the commission is prohibited from disclosing by federal law, federal regulation, or federal publication.
(2)
(a) Notwithstanding Subsection 59-1-403(2), the commission, at the request of an office, shall provide to the office all return information with the items described in Subsection (2)(b) removed.
(b) For purposes of a request for return information made under Subsection (2)(a), the commission shall redact or remove any name, address, social security number, or taxpayer identification number.
(3)
(a) An office may disclose return information received from the commission in accordance with this section only:
(i)
(A) as a fiscal estimate, fiscal note information, or statistical information; and
(B) in a manner that reasonably protects the identification of a particular taxpayer; or
(ii) to another office.
(b) A person may not request return information, other than the return information that the office discloses in accordance with Subsection (3)(a), from an office under Title 63G, Chapter 2, Government Records Access and Management Act, or this section, if that office received the return information from the commission in accordance with this section.
(c) An office may not disclose to a person that requests return information any return information other than the return information that the office discloses in accordance with Subsection (3)(a).
(4) Any individual who violates Subsection (3)(a):
(a) is guilty of a class A misdemeanor; and
(b) shall be:
(i) dismissed from office; and
(ii) disqualified from holding public office in this state for a period of five years after dismissal.
(5)
(a) An office and the commission may enter into an agreement specifying the procedures for accessing, storing, and destroying return information requested in accordance with this section.
(b) An office's access to return information is governed by this section, and except as provided in Subsection (5)(a), may not be limited by any agreement.
(1) As used in this section:
(a) "Appraiser" means an individual who holds an appraiser's certificate or license issued by the Division of Real Estate under Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act and includes an individual associated with an appraiser who assists the appraiser in preparing an appraisal.
(b) "Appraisal" is as defined in Section 61-2g-102.
(c)
(i) "Commercial information" means:
(A) information of a commercial nature obtained from a property taxpayer regarding the property taxpayer's property; or
(B) information derived from the information described in this Subsection (1)(c)(i).
(ii)
(A) "Commercial information" does not include information regarding a property taxpayer's property if the information is intended for public use.
(B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for purposes of Subsection (1)(c)(ii)(A), the commission may by rule prescribe the circumstances under which information is intended for public use.
(d) "Consultation service" is as defined in Section 61-2g-102.
(e) "Locally assessed property" means property that is assessed by a county assessor in accordance with Chapter 2, Part 3, County Assessment.
(f) "Property taxpayer" means a person that:
(i) is a property owner; or
(ii) has in effect a contract with a property owner to:
(A) make filings on behalf of the property owner;
(B) process appeals on behalf of the property owner; or
(C) pay a tax under Chapter 2, Property Tax Act, on the property owner's property.
(g) "Property taxpayer's property" means property with respect to which a property taxpayer:
(i) owns the property;
(ii) makes filings relating to the property;
(iii) processes appeals relating to the property; or
(iv) pays a tax under Chapter 2, Property Tax Act, on the property.
(h) "Protected commercial information" means commercial information that:
(i) identifies a specific property taxpayer; or
(ii) would reasonably lead to the identity of a specific property taxpayer.
(2) An individual listed under Subsection 59-1-403(2)(a) may not disclose commercial information:
(a) obtained in the course of performing any duty that the individual listed under Subsection 59-1-403(2)(a) performs under Chapter 2, Property Tax Act; or
(b) relating to an action or proceeding:
(i) with respect to a tax imposed on property in accordance with Chapter 2, Property Tax Act; and
(ii) that is filed in accordance with:
(A) this chapter;
(B) Chapter 2, Property Tax Act; or
(C) this chapter and Chapter 2, Property Tax Act.
(3)
(a) Notwithstanding Subsection (2) and subject to Subsection (3)(c), an individual listed under Subsection 59-1-403(2)(a) may disclose the following information:
(i) the assessed value of property;
(ii) the tax rate imposed on property;
(iii) a legal description of property;
(iv) the physical description or characteristics of property, including a street address or parcel number for the property;
(v) the square footage or acreage of property;
(vi) the square footage of improvements on property;
(vii) the name of a property taxpayer;
(viii) the mailing address of a property taxpayer;
(ix) the amount of a property tax:
(A) assessed on property;
(B) due on property;
(C) collected on property;
(D) abated on property; or
(E) deferred on property;
(x) the amount of the following relating to property taxes due on property:
(A) interest;
(B) costs; or
(C) other charges;
(xi) the tax status of property, including:
(A) an exemption;
(B) a property classification;
(C) a bankruptcy filing; or
(D) whether the property is the subject of an action or proceeding under this title;
(xii) information relating to a tax sale of property; or
(xiii) information relating to single-family residential property.
(b) Notwithstanding Subsection (2) and subject to Subsection (3)(c), an individual listed under Subsection 59-1-403(2)(a) shall disclose, upon request, the information described in Subsection 59-2-1007(9).
(c)
(i) Subject to Subsection (3)(c)(ii), a person may receive the information described in Subsection (3)(a) or (b) in written format.
(ii) The following may charge a reasonable fee to cover the actual cost of providing the information described in Subsection (3)(a) or (b) in written format:
(A) the commission;
(B) a county;
(C) a city; or
(D) a town.
(4)
(a) Notwithstanding Subsection (2) and except as provided in Subsection (4)(c), an individual listed under Subsection 59-1-403(2)(a) shall disclose commercial information:
(i) in accordance with judicial order;
(ii) on behalf of the commission in any action or proceeding:
(A) under this title;
(B) under another law under which a property taxpayer is required to disclose commercial information; or
(C) to which the commission is a party;
(iii) on behalf of any party to any action or proceeding under this title if the commercial information is directly involved in the action or proceeding; or
(iv) if the requirements of Subsection (4)(b) are met, that is:
(A) relevant to an action or proceeding:
(I) filed in accordance with this title; and
(II) involving property; or
(B) in preparation for an action or proceeding involving property.
(b) Commercial information shall be disclosed in accordance with Subsection (4)(a)(iv):
(i) if the commercial information is obtained from:
(A) a real estate agent if the real estate agent is not a property taxpayer of the property that is the subject of the action or proceeding;
(B) an appraiser if the appraiser:
(I) is not a property taxpayer of the property that is the subject of the action or proceeding; and
(II) did not receive the commercial information pursuant to Subsection (8);
(C) a property manager if the property manager is not a property taxpayer of the property that is the subject of the action or proceeding; or
(D) a property taxpayer other than a property taxpayer of the property that is the subject of the action or proceeding;
(ii) regardless of whether the commercial information is disclosed in more than one action or proceeding; and
(iii)
(A) if a county board of equalization conducts the action or proceeding, the county board of equalization takes action to provide that any commercial information disclosed during the action or proceeding may not be disclosed by any person conducting or participating in the action or proceeding except as specifically allowed by this section;
(B) if the commission conducts the action or proceeding, the commission enters a protective order or, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, makes rules specifying that any commercial information disclosed during the action or proceeding may not be disclosed by any person conducting or participating in the action or proceeding except as specifically allowed by this section; or
(C) if a court of competent jurisdiction conducts the action or proceeding, the court enters a protective order specifying that any commercial information disclosed during the action or proceeding may not be disclosed by any person conducting or participating in the action or proceeding except as specifically allowed by this section.
(c) Notwithstanding Subsection (4)(a), a court may require the production of, and may admit in evidence, commercial information that is specifically pertinent to the action or proceeding.
(5) Notwithstanding Subsection (2), this section does not prohibit:
(a) the following from receiving a copy of any commercial information relating to the basis for assessing a tax that is charged to a property taxpayer:
(i) the property taxpayer;
(ii) a duly authorized representative of the property taxpayer;
(iii) a person that has in effect a contract with the property taxpayer to:
(A) make filings on behalf of the property taxpayer;
(B) process appeals on behalf of the property taxpayer; or
(C) pay a tax under Chapter 2, Property Tax Act, on the property taxpayer's property;
(iv) a property taxpayer that purchases property from another property taxpayer; or
(v) a person that the property taxpayer designates in writing as being authorized to receive the commercial information;
(b) the publication of statistics as long as the statistics are classified to prevent the identification of a particular property taxpayer's commercial information;
(c) the inspection by the attorney general or other legal representative of the state or a legal representative of a political subdivision of the state of the commercial information of a property taxpayer:
(i) that brings action to set aside or review a tax or property valuation based on the commercial information;
(ii) against which an action or proceeding is contemplated or has been instituted under this title; or
(iii) against which the state or a political subdivision of the state has an unsatisfied money judgment; or
(d) the commission from disclosing commercial information to the extent necessary to comply with the requirements of Subsection 59-12-205(6).
(6) Notwithstanding Subsection (2), in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule establish standards authorizing an individual listed under Subsection 59-1-403(2)(a) to disclose commercial information:
(a)
(i) in a published decision; or
(ii) in carrying out official duties; and
(b) if that individual listed under Subsection 59-1-403(2)(a) consults with the property taxpayer that provided the commercial information.
(7) Notwithstanding Subsection (2):
(a) an individual listed under Subsection 59-1-403(2)(a) may share commercial information with the following:
(i) another individual listed in Subsection 59-1-403(2)(a)(i) or (ii); or
(ii) a representative, agent, clerk, or other officer or employee of a county as required to fulfill an obligation created by Chapter 2, Property Tax Act;
(b) an individual listed under Subsection 59-1-403(2)(a) may perform the following to fulfill an obligation created by Chapter 2, Property Tax Act:
(i) publish notice;
(ii) provide notice; or
(iii) file a lien; or
(c) the commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, share commercial information gathered from returns and other written statements with the federal government, any other state, any of the political subdivisions of another state, or any political subdivision of this state, if these political subdivisions or the federal government grant substantially similar privileges to this state.
(8) Notwithstanding Subsection (2):
(a) subject to the limitations in this section, an individual described in Subsection 59-1-403(2)(a) may share the following commercial information with an appraiser:
(i) the sales price of locally assessed property and the related financing terms;
(ii) capitalization rates and related rates and ratios related to the valuation of locally assessed property; and
(iii) income and expense information related to the valuation of locally assessed property; and
(b) except as provided in Subsection (4), an appraiser who receives commercial information:
(i) may disclose the commercial information:
(A) to an individual described in Subsection 59-1-403(2)(a);
(B) to an appraiser;
(C) in an appraisal if protected commercial information is removed to protect its confidential nature; or
(D) in performing a consultation service if protected commercial information is not disclosed; and
(ii) may not use the commercial information:
(A) for a purpose other than to prepare an appraisal or perform a consultation service; or
(B) for a purpose intended to be, or which could reasonably be foreseen to be, anti-competitive to a property taxpayer.
(9)
(a) The commission shall:
(i) prepare a written explanation of this section; and
(ii) make the written explanation described in Subsection (9)(a)(i) available to the public.
(b) An employer of a person described in Subsection 59-1-403(2)(a) shall:
(i) provide the written explanation described in Subsection (9)(a)(i) to each person described in Subsection 59-1-403(2)(a) who is reasonably likely to receive commercial information;
(ii) require each person who receives a written explanation in accordance with Subsection (9)(b)(i) to:
(A) read the written explanation; and
(B) sign the written explanation; and
(iii) retain each written explanation that is signed in accordance with Subsection (9)(b)(ii) for a time period:
(A) beginning on the day on which a person signs the written explanation in accordance with Subsection (9)(b)(ii); and
(B) ending six years after the day on which the employment of the person described in Subsection (9)(b)(iii)(A) by the employer terminates.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall by rule define "employer."
(10)
(a) An individual described in Subsection (1)(a) or 59-1-403(2)(a), or an individual that violates a protective order or similar limitation entered pursuant to Subsection (4)(b)(iii), is guilty of a class A misdemeanor if that person:
(i) intentionally discloses commercial information in violation of this section; and
(ii) knows that the disclosure described in Subsection (10)(a)(i) is prohibited by this section.
(b) If the individual described in Subsection (10)(a) is an officer or employee of the state or a county and is convicted of violating this section, the individual shall be dismissed from office and be disqualified from holding public office in this state for a period of five years thereafter.
(c) If the individual described in Subsection (10)(a) is an appraiser, the appraiser shall forfeit any certification or license received under Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act, for a period of five years.
(d) If the individual described in Subsection (10)(a) is an individual associated with an appraiser who assists the appraiser in preparing appraisals, the individual shall be prohibited from becoming licensed or certified under Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act, for a period of five years.
(11) Notwithstanding Subsection (10), for a disclosure of information to the Office of the Legislative Auditor General in accordance with Title 36, Chapter 12, Legislative Organization:
(a) an individual does not violate a protective order or similar limitation entered in accordance with Subsection (4)(b)(iii); and
(b) an individual described in Subsection (1)(a) or 59-1-403(2)(a):
(i) is not guilty of a class A misdemeanor; and
(ii) is not subject to the penalties described in Subsections (10)(b) through (d).
(1) As used in this section, "confidential tax matter" means:
(a) an offer in compromise;
(b) a private letter ruling;
(c) an appeal before the members of the commission;
(d) a tax matter if the disclosure of the tax matter is prohibited under:
(i) federal law;
(ii) Section 59-1-403; or
(iii) Section 59-1-404;
(e) a voluntary disclosure agreement;
(f) a waiver request; or
(g) provision of guidance by the commission to an employee of the commission on the interpretation and application of a law administered by the commission.
(2)
(a) Notwithstanding Title 52, Chapter 4, Open and Public Meetings Act, the commission may hold a meeting that is not open to the public to conduct a hearing on, discuss, or take action on a confidential tax matter in accordance with the rules established as provided under this section.
(b) When the commission holds a meeting described in Subsection (2)(a) on a confidential tax matter described in Subsection (1)(g), the meeting:
(i) shall include:
(A) the commission's executive director; or
(B) the executive director's designee;
(ii) may include any other commission employee as determined by the commission; and
(iii) may not include guidance that constitutes an ex parte communication on a taxpayer specific matter.
(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules:
(a) to establish procedures for holding a meeting that is not open to the public to conduct a hearing on, discuss, or take action on a confidential tax matter; and
(b) except as provided in Subsection (4), to establish procedures and requirements for keeping confidential minutes and a confidential recording of a meeting that is not open to the public.
(4) For purposes of Subsection (3)(b), the commission is not required to make rules to establish procedures and requirements for keeping confidential minutes and a confidential recording of:
(a) an initial hearing to the extent provided in Section 59-1-502.5; or
(b) private analysis, contemplation, and discussion by members of the commission:
(i) in performing the judicial aspects of their duties; and
(ii) consistent with state case law.
(1) As used in this section:
(a) "Legal holiday" means the same as that term is defined in Section 59-10-518.
(b) "Tax, fee, or charge" means the same as that term is defined in Section 59-1-1402.
(2) A person may file a request for agency action, petitioning the commission for redetermination of a deficiency.
(3) Subject to Subsections (4) through (6), a person shall file the request for agency action described in Subsection (2):
(a) within a 30-day period after the date the commission mails a notice of deficiency to the person in accordance with Section 59-1-1405; or
(b) within a 90-day period after the date the commission mails a notice of deficiency to the person in accordance with Section 59-1-1405 if the notice of deficiency is addressed to a person outside the United States or the District of Columbia.
(4) If the last day of a time period described in Subsection (3) is a Saturday, Sunday, or legal holiday, the last day for a person to file a request for agency action is the next day that is not a Saturday, Sunday, or legal holiday.
(5) A person that mails a request for agency action shall mail the request for agency action in accordance with Section 59-1-1404.
(6) For purposes of Subsection (3), a person is considered to have filed a request for agency action:
(a) if the person mails the request for agency action, on the date the person is considered to have mailed the request for agency action in accordance with Section 59-1-1404; or
(b) if the person delivers the request for agency action to the commission by a method other than mail, on the date the commission receives the request for agency action.
(7) A person that has not previously filed a timely request for agency action in accordance with Subsection (3) may object to a final assessment issued by the commission by:
(a) paying the tax, fee, or charge, penalty accrued in accordance with Section 59-1-401, or interest accrued in accordance with Section 59-1-402; and
(b) filing a claim for a refund as provided in Section 59-1-1410.
(1) At least 30 days before any formal hearing is held in response to a party's request for agency action, one or more tax commissioners or an administrative law judge designated by the commission shall hold an initial hearing at which proffers of evidence, including testimony, documents, and other exhibits may be made and oral or written argument on legal issues may be received.
(2) Any party participating in an initial hearing shall have the right to informal discovery under any rules established by the commission.
(3) A party may appear at the initial hearing in person or through an agent, an employee, or another representative, but any person appearing on behalf of another party or entity shall have full settlement authority on behalf of the party the person is representing.
(4) A record may not be kept of the initial hearing and all initial hearing proceedings are privileged and do not constitute admissions against interest of any party participating in the hearing.
(5) At the initial hearing, or as soon thereafter as reasonably practicable, the commission may take any action the commission deems appropriate to settle, compromise, or reduce the deficiency, or adjust the assessed valuation of any property.
(6) Nothing in this section may limit a party's right to a formal hearing under Title 63G, Chapter 4, Administrative Procedures Act.
(7) A party has not exhausted the party's administrative remedies in accordance with Section 63G-4-401 unless:
(a) the party requests a formal hearing within the time period provided by law; and
(b) the commission has issued a final unappealable administrative order.
(1) Following a redetermination of a deficiency by the commission, the entire amount redetermined as the deficiency by the decision of the commission, which has become final, shall be assessed and shall be paid within 30 days from the date the notice and demand is sent from the commission.
(2) If the taxpayer does not file a petition with the commission within the time prescribed for filing the petition, the deficiency, notice of which has been sent to the taxpayer, shall be assessed, and shall be paid within 30 days from the date the notice and demand is sent from the commission.
The action of the commission on the taxpayer's petition for redetermination of deficiency shall be final 30 days after the date the commission's notice of agency action is sent. All tax, interest, and penalties are due 30 days from the date the commission's decision or order is sent, unless the taxpayer seeks judicial review.
(1) In addition to the jurisdiction granted in Section 63G-4-402, beginning July 1, 1994, the district court shall have jurisdiction to review by trial de novo all decisions issued by the commission after that date resulting from formal adjudicative proceedings.
(2) As used in this section, "trial de novo" means an original, independent proceeding, and does not mean a trial de novo on the record.
(3)
(a) In any appeal to the district court pursuant to this section taken after January 1, 1997, the commission shall certify a record of its proceedings to the district court.
(b) This Subsection (3) supercedes Section 63G-4-403 pertaining to judicial review of formal adjudicative proceedings.
(1)
(a) Any aggrieved party appearing before the commission or county whose tax revenues are affected by the decision may at that party's option petition for judicial review in the district court pursuant to this section, or in the Supreme Court or the Court of Appeals pursuant to Section 59-1-610.
(b) Judicial review of formal or informal adjudicative proceedings in the district is in the district court located in the county of residence or principal place of business of the affected taxpayer or, in the case of a taxpayer whose taxes are assessed on a statewide basis, to the Third Judicial District Court in and for Salt Lake County.
(c) Notwithstanding Section 63G-4-402, a petition for review made to the district court under this section shall conform to the Utah Rules of Appellate Procedure.
(2) A county whose tax revenues are affected by the decision being reviewed shall be allowed to be a party in interest in the proceeding before the court.
In proceedings of the district court under this part and on appeal therefrom, a preponderance of the evidence shall suffice to sustain the burden of proof. The burden of proof shall fall upon the parties seeking affirmative relief and the burden of going forward with the evidence shall shift as in other civil litigation. The district court shall render its decision in writing, including therein a concise statement of the facts found by the court and the conclusions of law reached by the court. The court may affirm, reverse, modify, or remand any order of the commission, and shall grant other relief, invoke such other remedies, and issue such orders, in accordance with its decision, as appropriate.
Unless stayed, the decision of the district court shall be binding upon all parties until changed upon appeal. If no appeal is taken, the decision of the court shall constitute a final determination of the matter.
The exclusive remedy for review of a decision or order of the district court entered under this part shall be by appeal. Any party to the action has the right to an appeal.
(1) When reviewing formal adjudicative proceedings commenced before the commission, the Court of Appeals or Supreme Court shall:
(a) grant the commission deference concerning its written findings of fact, applying a substantial evidence standard on review; and
(b) grant the commission no deference concerning its conclusions of law, applying a correction of error standard, unless there is an explicit grant of discretion contained in a statute at issue before the appellate court.
(2) This section supercedes Section 63G-4-403 pertaining to judicial review of formal adjudicative proceedings.
(1) As used in this section, "post security" means:
(a) posting with the commission, for the full or a partial amount of the deficiency as determined by the commission:
(i) a letter of credit;
(ii) a bond; or
(iii) other similar financial instrument acceptable to the commission; or
(b) as determined by the commission, depositing with the commission:
(i) the full amount of the deficiency; or
(ii) a partial amount of the deficiency.
(2) Except as provided in Subsection (3), a taxpayer that seeks judicial review of a final commission redetermination of a deficiency shall post security with the commission.
(3) The commission shall waive the requirements of Subsection (2) if a taxpayer establishes:
(a) that the taxpayer has sufficient financial resources to pay the deficiency if the deficiency is upheld in a final unappealable judgment or order by a court of competent jurisdiction; or
(b) as determined by the commission, that collection of the deficiency that is the subject of the appeal is not jeopardized by waiving the requirements of Subsection (2).
(4)
(a) The commission may not unreasonably deny a waiver described in Subsection (3).
(b) A taxpayer may seek judicial review of the commission's decision to deny a waiver under Subsection (3) by the court reviewing the redetermination of the deficiency.
(5) If a taxpayer fails to comply with the requirements of Subsection (2), the reviewing court may, in its discretion, dismiss the taxpayer's appeal of the redetermination of the deficiency.
(6) If the commission grants a waiver under Subsection (3), the taxpayer shall pay any tax, interest, or penalties:
(a) ordered by a court of competent jurisdiction; and
(b) within a 30-day period beginning on the day on which the order described in Subsection (6)(a) becomes final.
(7) If a taxpayer posts security with the commission, or the commission grants a waiver in accordance with this section, interest shall accrue on the unpaid taxes that are the subject of the deficiency at the rate and in the manner provided in Section 59-1-402.
A party has not exhausted the party's administrative remedies in accordance with Section 63G-4-401 unless:
(1) the party requests a formal hearing within the time period provided by law; and
(2) the commission has issued a final unappealable administrative order.
(1) Except as provided in Subsection (2) or unless all parties otherwise agree, upon request, the commission shall stay an appeal of the valuation or equalization of real or personal property, if:
(a) a commission decision on the valuation or equalization of real or personal property is under judicial review; and
(b) the commission decision described in Subsection (1)(a) and the pending commission appeal involve the same:
(i) taxpayer;
(ii) legal issue or valuation principle; and
(iii) to a material degree, facts.
(2) Subsection (1) does not apply if:
(a) the commission determines that the case under judicial review is not likely to have a material influence on the outcome of the pending commission appeal; or
(b) the property taxes subject to the pending commission appeal have not been paid in accordance with Section 59-2-1330.
(3) An appeal stayed in accordance with Subsection (1) is stayed until the court issues a final decision after judicial review of the commission decision.
(1) If the commission finds that a taxpayer intends quickly to depart from this state or to remove the taxpayer's property therefrom, or to conceal the taxpayer or the taxpayer's property therein, or to do any other act (including in the case of a taxpayer selling or otherwise distributing all or a part of its assets in liquidation or otherwise) tending to prejudice or to render wholly or partially ineffectual proceedings to collect any tax or penalty in lieu of tax for the current or the preceding taxable period, unless such proceedings be brought without delay, the commission may declare the taxable period for such taxpayer immediately terminated whether or not the time otherwise allowed by law for filing returns and paying the liability has expired. The commission shall immediately make a determination of tax for the current taxable period or for the preceding period, or both, and notwithstanding any other provision of law, the tax shall become immediately due and payable. The commission shall immediately assess the amount of the tax so determined (together with all interest, penalties, additional amounts, and additions to the tax provided by law) for the current taxable period or such preceding taxable period, or both, and shall give the notice of determination and assessment to the taxpayer, together with a demand for immediate payment of the tax.
(2) In the case of a current taxable period, the commission shall determine the tax for the period beginning on the first day of the current taxable period and ending on the date of the determination under Subsection (1) as though the period were a taxable period of the taxpayer. The commission shall take into account any prior determination made under this subsection with respect to such current taxable period. Any amounts collected as a result of any assessments under this subsection shall be treated as a partial payment of tax for the taxable period.
(3) Notwithstanding the termination of the taxable period of the taxpayer as provided in Subsection (1), the commission may reopen such taxable period each time the taxpayer is found by the commission to have incurred additional liabilities, within the current taxable period, since the termination of such period. A taxable period so terminated by the commission may be reopened by the taxpayer if the taxpayer files a true and accurate return, as required under Chapter 2, Property Tax Act, Chapter 7, Corporate Franchise and Income Taxes, Chapter 10, Individual Income Tax Act, or Chapter 12, Sales and Use Tax Act, for the taxable period, together with such other information as the commission may by rule prescribe.
(4) Payment of taxes may not be enforced by any proceedings under Subsection (1) prior to the expiration of the time otherwise allowed for paying such taxes if the taxpayer furnishes, under rules prescribed by the commission, a bond to ensure the timely making of returns with respect to, and payment of, the taxes, penalties, or interest for prior periods.
(1) If the commission believes that the assessment or collection of any tax or penalty in lieu of tax will be jeopardized by delay, it shall, notwithstanding the assessment provisions of Title 59, Chapter 2, Property Tax Act, Chapter 7, Corporate Franchise and Income Taxes, Chapter 10, Individual Income Tax Act, or Chapter 12, Sales and Use Tax Act, immediately assess such tax or penalty in lieu of tax (together with all interest, penalties, and additions to tax provided for by law), and notice and demand shall be made by the commission for the payment thereof.
(2) If the jeopardy assessment is made before any notice of the tax deficiency to which the jeopardy assessment relates has been mailed under Title 59, Chapter 2, Property Tax Act, Chapter 7, Corporate Franchise and Income Taxes, Chapter 10, Individual Income Tax Act, or Chapter 12, Sales and Use Tax Act, then the commission shall mail a notice under this section within 60 days after the making of the assessment.
(3) The jeopardy assessment may be made of a deficiency greater or less than that set forth in the notice of deficiency, which has been mailed to the taxpayer, and whether or not the taxpayer has filed a petition with the commission. The commission may, at any time before rendering its decision, abate such assessment, or any unpaid portion thereof, to the extent that it believes the assessment to be excessive in amount. The commission has jurisdiction to redetermine the entire amount of the deficiency and of all amounts assessed.
(4) If the jeopardy assessment is made after the commission has rendered a decision on a taxpayer's petition for redetermination, the assessment may be made only in respect to the amount of the deficiency determined by the commission in its decision.
(1)
(a) If an amount that is due and payable under Sections 59-1-701 and 59-1-702 is not paid, the commission shall collect that amount in accordance with Part 14, Assessment, Collections, and Refunds Act.
(b)
(i) For purposes of collecting an amount described in Subsection (1)(a), the commission may issue a warrant.
(ii) The commission may direct the warrant described in Subsection (1)(b)(i) to an authorized representative of the commission.
(iii) In executing the warrant described in Subsection (1)(b)(i), the authorized representative described in Subsection (1)(b)(ii):
(A) has all of the powers conferred by law upon a sheriff; and
(B) may not collect a fee or other compensation for executing the warrant other than the actual expenses paid to execute the warrant.
(2)
(a) The appropriateness of a termination or jeopardy assessment shall be reviewable under procedures prescribed by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) The amount of a termination or jeopardy assessment is reviewable only in the manner prescribed in Chapter 1, Part 5, Petitions for Redetermination of Deficiencies, and Part 6, Judicial Review.
(3) In a proceeding brought to enforce payment of a liability made due and payable under this section, Section 59-1-701, or 59-1-702, the finding of the commission, whether made after notice to the taxpayer or not, is presumptive evidence of jeopardy.
(4)
(a) After a petition is filed with the commission and when the amount that the commission determines to be assessable becomes final, any unpaid portion that is stayed by bond shall be collected as part of the tax upon notice and demand from the commission.
(b) A portion remaining after the commission collects the amount determined to be assessable under Subsection (4)(a) shall be abated.
(c) If the amount the commission collects in accordance with Subsection (4)(a) exceeds the amount that should have been assessed, the excess shall be credited or refunded to the taxpayer.
(d) If the amount the commission determines to be assessable in accordance with Subsection (4)(a) is greater than the amount actually assessed, the difference shall be assessed, and collected as part of the tax, upon notice and demand by the commission.
(5)
(a) The commission may abate a jeopardy assessment if the commission finds that jeopardy does not exist.
(b) An abatement described in Subsection (5)(a) may not be made after a decision of the commission in respect of the deficiency is rendered or, if no petition is filed with the commission, after the expiration of the period for filing a petition.
(c) The period of limitation on making an assessment or levy or a proceeding for collection, in respect of a deficiency, shall be determined as if the commission had not abated the jeopardy assessment under Subsection (5)(a).
(d) The running of the period of limitation on making an assessment or levy or a proceeding for collection shall be suspended from the date of a jeopardy assessment until the expiration of the 10th day after the jeopardy assessment is abated under this Subsection (5).
(6)
(a) The collection of all or a part of a jeopardy assessment may be stayed by posting a bond with the commission in the amount and under conditions established by the commission.
(b) A taxpayer may waive a stay described in Subsection (6)(a) at any time in respect of all or part of the amount covered by the bond.
(c) If, as a result of a waiver described in Subsection (6)(b), any part of the amount covered by the bond is paid, the commission shall proportionately reduce the bond at the request of the taxpayer that waives the stay in accordance with Subsection (6)(b).
(d) If any portion of a jeopardy assessment is abated, or if a notice of deficiency is mailed to a taxpayer in a lesser amount, the bond shall, at the request of the taxpayer, be proportionately reduced.
(7)
(a) If a bond is posted before a taxpayer files a petition for redetermination of a deficiency under Section 59-1-501, the bond shall contain a condition that the amount of the deficiency assessment, the collection of which is stayed by the bond, shall be paid on notice and demand at any time after the expiration of the stay, together with interest on the deficiency assessment, beginning on the date of the jeopardy notice and demand and ending on the date of notice and demand under this Subsection (7)(a).
(b) A bond described in Subsection (7)(a) shall be conditioned upon the payment of that part of the assessment, collection of which is stayed by the bond, that is:
(i) not abated by a decision of the commission; and
(ii) final.
(c) If the commission determines that the amount of a deficiency assessed is greater than the amount that should have been assessed, the bond shall be proportionately reduced:
(i) at the time the decision of the commission is rendered; and
(ii) at the request of the taxpayer that posts the bond.
(8)
(a) If a jeopardy assessment is made under this section, property seized for the collection of a tax may not be sold until:
(i) the commission issues a notice of deficiency; and
(ii) the time for filing a petition for redetermination expires.
(b) Except as provided in Subsection (8)(c), if a taxpayer files a petition for redetermination, regardless of whether the taxpayer files the petition for redetermination before or after the commission makes the jeopardy assessment, the property described in Subsection (8)(a) may not be sold until the commission's decision on the petition is final.
(c) For purposes of Subsection (8)(b), the property described in Subsection (8)(a) may be sold if:
(i) the taxpayer consents to the sale;
(ii) the commission determines that the expenses of conservation and maintenance of the property would greatly reduce the net proceeds of the sale; or
(iii) the property is perishable.
(1) Except as otherwise provided in Chapter 1, Part 5, Petitions for Redetermination of Deficiencies, Part 6, Judicial Review, and Part 7, Termination and Jeopardy Assessments Procedure and Chapter 2, Property Tax Act, Chapter 6, Mineral Production Tax Withholding, Chapter 7, Corporate Franchise and Income Taxes, Chapter 10, Individual Income Tax Act, and Chapter 12, Sales and Use Tax Act and the rules promulgated thereunder, no suit for the purpose of restraining the assessment or collection of any tax, penalty, or interest imposed under Chapter 1, General Taxation Policies, Chapter 2, Property Tax Act, Chapter 6, Mineral Production Tax Withholding, Chapter 7, Corporate Franchise and Income Taxes, Chapter 10, Individual Income Tax Act, or Chapter 12, Sales and Use Tax Act may be maintained in any court by any person, whether or not such person is the person against whom such tax was assessed.
(2) No suit may be maintained in any court for the purpose of restraining the assessment or collection of the amount of the state tax liability of a transferee or of a fiduciary of property of a taxpayer.
The penalties, interest, and other liabilities imposed by the provisions of Title 59, Revenue and Taxation, shall be paid by the taxpayer upon notice and demand by the commission, and shall be assessed and collected in the same manner as taxes. Except as otherwise provided, any reference in Title 59, Revenue and Taxation, to "tax" includes penalties, interest, and other liabilities.
(1)
(a) If a taxpayer fails to file any return required pursuant to this title within 60 days of the time prescribed, the commission may petition for a writ of mandate to compel the taxpayer to file the return. The petition may be filed, in the discretion of the commission, in the Tax Division of the Third Judicial District or in the district court for the county in which the taxpayer resides or has a principal place of business. In the case of a nonresident taxpayer the petition shall be filed in the Third District Court.
(b) The court shall grant a hearing on the petition for a writ of mandate within 20 days after the filing of the petition or as soon thereafter as the court may determine, having regard for the rights of the parties and the necessity of a speedy determination of the petition.
(c) Upon a finding of failure to file a return within 60 days of the time prescribed pursuant to this title the court shall issue a writ of mandate requiring the taxpayer to file a return. The order of the court shall include an award of attorney fees, court costs, witness fees, and all other costs in favor of the prevailing party.
(2) Nothing in this section shall limit the remedies otherwise available to the commission under this title or other laws of this state.
The "Multistate Tax Compact" is hereby enacted into law and entered into with all jurisdictions legally joining therein, in the form substantially as follows:
ARTICLE I. PURPOSES
The purposes of this compact are to:
Facilitate proper determination of state and local tax liability of multistate taxpayers.
Promote uniformity or compatibility in significant components of tax systems.
Facilitate taxpayer convenience and compliance in the filing of tax returns and in other phases of tax administration.
Avoid duplicative taxation.
ARTICLE II. DEFINITIONS
As used in this compact:
"State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States.
"Subdivision" means any governmental unit or special district of a state.
"Taxpayer" means any corporation, partnership, firm, association, governmental unit or agency, or person acting as a business entity in more than one state.
"Income tax" means a tax imposed on or measured by net income including any tax imposed on or measured by an amount arrived at by deducting expenses from gross income, one or more forms of which expenses are not specifically and directly related to particular transactions.
"Capital stock tax" means a tax measured in any way by the capital of a corporation considered in its entirety.
"Gross receipts tax" means a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no deduction is allowed which would constitute the tax an income tax.
"Sales tax" means a tax imposed with respect to the transfer for a consideration of ownership, possession, or custody of tangible personal property or the rendering of services measured by the price of the tangible personal property transferred or services rendered and which is required by state or local law to be separately stated from the sales price by the seller, or which is customarily separately stated from the sales price, but does not include a tax imposed exclusively on the sale of a specifically identified commodity or article or class of commodities or articles.
"Use tax" means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession, or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property, and (b) is complementary to a sales tax.
"Tax" means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any other tax which has a multistate impact, except that the provisions of Article V of this compact shall apply only to the taxes specifically designated therein.
ARTICLE III. ELEMENTS OF INCOME TAX LAWS (intentionally omitted)
ARTICLE IV. DIVISION OF INCOME (intentionally omitted)
ARTICLE V. ELEMENTS OF SALES AND USE TAX LAWS
Tax Credit
Exemption Certificates, Vendors May Rely
ARTICLE VI. THE COMMISSION
Organization and Management
(b) Each party state shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the commission member from that state.
(c) Each member shall be entitled to one vote. The commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members.
(d) The commission shall adopt an official seal to be used as it may provide.
(e) The commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its executive committee may determine. The commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular, and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered.
(f) The commission shall elect annually, from among its members, a chairman, a vice-chairman, and a treasurer. The commission shall appoint an executive director who shall serve at its pleasure, and it shall fix his duties and compensation. The executive director shall be secretary of the commission. The commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate.
(g) Irrespective of the civil service, personnel, or other merit system laws of any party state, the executive director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the commission and shall fix their duties and compensation. The commission bylaws shall provide for personnel policies and programs.
(h) The commission may borrow, accept, or contract for the services of personnel from any state, the United States, or any other governmental entity.
(i) The commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same.
(j) The commission may establish one or more offices for the transacting of its business.
(k) The commission shall adopt bylaws for the conduct of its business. The commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party states.
(l) The commission annually shall make to the governor and legislature of each party state a report covering its activities for the preceding year. Any donation or grant accepted by the commission or services borrowed shall be reported in the annual report of the commission, and shall include the nature, amount, and conditions, if any, of the donation, gift, grant, or services borrowed and the identity of the donor or lender. The commission may make additional reports as it may deem desirable.
Committees
(b) The commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the commission, including problems of special interest to any party state and problems dealing with particular types of taxes.
(c) The commission may establish such additional committees as its bylaws may provide.
Powers
(a) study state and local tax systems and particular types of state and local taxes;
(b) develop and recommend proposals for an increase in uniformity or compatibility of state and local tax laws with a view toward encouraging the simplification and improvement of state and local tax law and administration;
(c) compile and publish information as in its judgment would assist the party states in implementation of the compact and taxpayers in complying with state and local tax laws; and
(d) do all things necessary and incidental to the administration of its functions pursuant to this compact.
Finance
(b) Each of the commission's budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party states. The total amount of appropriations requested under any such budget shall be apportioned among the party states as follows: one-tenth in equal shares; and the remainder in proportion to the amount of revenue collected by each party state and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, sales and use taxes. In determining such amounts, the commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party states. Each of the commission's budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph.
(c) The commission shall not pledge the credit of any party state. The commission may meet any of its obligations in whole or in part with funds available to it under paragraph 1(i) of this article; provided that the commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the commission makes use of funds available to it under paragraph 1(i), the commission shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same.
(d) The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the commission.
(e) The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the commission.
(f) Nothing contained in this article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission.
ARTICLE VII. UNIFORM REGULATIONS AND FORMS
Whenever any two or more party states, or subdivisions of party states, have uniform or similar provisions of law relating to an income tax, the commission may adopt uniform regulations for any phase of the administration of such law, including assertion of jurisdiction to tax, or prescribing uniform tax forms.
Prior to the adoption of any regulations, the commission shall:
(a) as provided in its bylaws, hold at least one public hearing on due notice to all affected party states and subdivisions thereof and to all taxpayers and other persons who have made timely request of the commission for advance notice of its regulation-making proceedings; and
(b) afford all affected party states and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the commission.
ARTICLE VIII. INTERSTATE AUDITS
This article shall be in force only in those party states that specifically provide therefor by statute.
Any party state or subdivision thereof desiring to make or participate in an audit of any accounts, books, papers, records, or other documents may request the commission to perform the audit on its behalf. In responding to the request, the commission shall have access to and may examine, at any reasonable time, such accounts, books, papers, records, and other documents and any relevant property or stock of merchandise. The commission may enter into agreements with party states or their subdivisions for assistance in performance of the audit. The commission shall make charges, to be paid by the state or local government or governments for which it performs the service, for any audits performed by it in order to reimburse itself for the actual costs incurred in making the audit.
The commission may require the attendance of any person within the state where it is conducting an audit or part thereof at a time and place fixed by it within such state for the purpose of giving testimony with respect to any account, book, paper, document, other record, property, or stock of merchandise being examined in connection with the audit. If the person is not within the jurisdiction, he may be required to attend for such purpose at any time and place fixed by the commission within the state of which he is a resident; provided that such state has adopted this article.
The commission may apply to any court having power to issue compulsory process for orders in aid of its powers and responsibilities pursuant to this article and any and all such courts shall have jurisdiction to issue such orders. Failure of any person to obey any such order shall be punishable as contempt of the issuing court. If the party or subject matter on account of which the commission seeks an order is within the jurisdiction of the court to which application is made, such application may be to a court in the state or subdivision on behalf of which the audit is being made or a court in the state in which the object of the order being sought is situated. The provisions of this paragraph apply only to courts in a state that has adopted this article.
The commission may decline to perform any audit requested if it finds that its available personnel or other resources are insufficient for the purpose or that, in the terms requested, the audit is impracticable of satisfactory performance. If the commission, on the basis of its experience, has reason to believe that an audit of a particular taxpayer, either at a particular time or on a particular schedule, would be of interest to a number of party states or their subdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficient participation therein as determined by the commission.
Information obtained by any audit pursuant to this article shall be confidential and available only for tax purposes to party states, their subdivisions or the United States. Availability of information shall be in accordance with the laws of the states or subdivisions on whose account the commission performs the audit, and only through the appropriate agencies or officers of such states or subdivisions. Nothing in this article shall be construed to require any taxpayer to keep records for any period not otherwise required by law.
Other arrangements made or authorized pursuant to law for cooperative audit by or on behalf of the party states or any of their subdivisions are not superseded or invalidated by this article.
In no event shall the commission make any charge against a taxpayer for an audit.
As used in this article, "tax," in addition to the meaning ascribed to it in Article II, means any tax or license fee imposed in whole or in part for revenue purposes.
ARTICLE IX. ARBITRATION (intentionally omitted)
ARTICLE X. ENTRY INTO FORCE AND WITHDRAWAL
This compact shall enter into force when enacted into law by any seven states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof. The commission shall arrange for notification of all party states whenever there is a new enactment of the compact.
Any party state may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.
No proceeding commenced before an arbitration board prior to the withdrawal of a state and to which the withdrawing state or any subdivision thereof is a party shall be discontinued or terminated by the withdrawal, nor shall the board thereby lose jurisdiction over any of the parties to the proceeding necessary to make a binding determination therein.
ARTICLE XI. EFFECT ON OTHER LAWS AND JURISDICTION
Nothing in this compact shall be construed to:
(a) affect the power of any state or subdivision thereof to fix rates of taxation;
(b) apply to any tax or fixed fee imposed for the registration of a motor vehicle or any tax on motor fuel, other than a sales tax; provided that the definition of "tax" in Article VIII 9 may apply for the purposes of that article and the commission's powers of study and recommendation pursuant to Article VI 3 may apply;
(c) withdraw or limit the jurisdiction of any state or local court or administrative officer or body with respect to any person, corporation or other entity or subject matter, except to the extent that such jurisdiction is expressly conferred by or pursuant to this compact upon another agency or body; or
(d) supersede or limit the jurisdiction of any court of the United States.
ARTICLE XII. CONSTRUCTION AND SEVERABILITY
This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution of any state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters.
Article VIII of the Multistate Tax Compact relating to interaudits shall be in force in and with respect to this state.
The commission may furnish to the Multistate Tax Commission, a taxing official of another state, the District of Columbia, or the United States or its territories, any information contained in:
(1) a tax return or report, a related schedule, or a document filed pursuant to the tax laws of this state; or
(2) the report of an audit or investigation made with respect to a tax return or report, a related schedule, or a document described in Subsection (1).
(1) The commission shall prepare written information in clear, nontechnical language of the taxpayer's rights and obligations and of the commission's procedures for appeal, refund claims, and collections.
(2) When the commission contacts a taxpayer in writing about the determination or collection of any tax, the commission shall notify the taxpayer of the availability of a written statement of the taxpayer's rights and obligations and of the commission's procedures for appeal, refund claims, and collections. If a taxpayer requests this information, the commission shall provide it to the taxpayer free of charge.
(3) In notices to taxpayers of taxes and penalties due, the commission shall notify the taxpayer of the procedure to follow in order to request detailed information concerning the additional taxes, tax penalties, or interest.
(1) During any audit interview, the commission shall:
(a) require reasonable scheduling of its audit interviews;
(b) permit recording of audit interviews;
(c) explain its audit and collection process before the first interview; and
(d) allow a taxpayer to be represented at an interview by an attorney or other representative with power of attorney.
(2) The commission may not require a taxpayer to bring an attorney or other representative to interviews.
The commission shall waive penalties on taxpayer underpayments that are attributable to incorrect written advice obtained from the commission unless the taxpayer has given the commission inaccurate or insufficient information.
(1) The commission may enter into agreements with taxpayers on installment payments of taxes, penalties, and interest. The commission may revise, accelerate, or cancel the installment agreement if any of the following occurs:
(a) the commission determines that the financial condition of the taxpayer has substantially changed;
(b) the commission determines that the taxpayer provided inaccurate information concerning the taxpayer's financial condition; or
(c) the taxpayer fails to make timely payments pursuant to the terms of the installment agreement.
(2) The commission shall give the taxpayer reasonable notice of its intent to revise or cancel an installment agreement entered into under this section.
(1) A taxpayer may bring a civil suit against the commission for recovery of actual damages and costs incurred by the taxpayer if:
(a) the commission or one of its employees intentionally or recklessly takes possession of a taxpayer's property in disregard of its published procedures, laws, or rules; or
(b) otherwise intentionally or recklessly disregards published procedures, laws, or rules.
(2) An award of actual damages and court costs in a suit under this section may not exceed $100,000.
(3) If the court finds that the civil action brought by the taxpayer is frivolous, the court may impose a penalty of up to $10,000 against the taxpayer.
The provisions of Section 59-1-1004 do not apply to jeopardy assessments authorized by Sections 59-1-701 through 59-1-707. The provisions of this part do not apply to Title 59, Chapter 2, Property Tax Act.
(1) The commission is authorized to employ private collectors for the collection of accounts that are unpaid over 12 months after the assessment date.
(2) Up to, but no more than, 33% of the money collected may be used to offset the payment to a private collector.
(3) The commission may authorize a private collector described in Subsection (1) to contract with a third party for services for the collection of accounts that the commission refers to the private collector.
(1)
(a) Notwithstanding Section 59-1-403, if the commission refers a debt related to a tax, fee, or charge as defined in Section 59-1-401 to a private collector under Section 59-1-1101, the commission may disclose to the private collector the following information related to the debt:
(i) the name of the taxpayer;
(ii) the taxpayer's contact information, including address and phone number;
(iii) the amount of the debt;
(iv) other information that identifies the taxpayer; or
(v) a combination of the information described in Subsections (1)(a)(i) through (iv).
(b) This disclosure may not be made if it would be in violation of Section 6103, Internal Revenue Code.
(2) Subject to Subsections (1)(b) and (3), if the commission authorizes a private collector to contract with a third party under Section 59-1-1101, the private collector may disclose to the third party the information described in Subsection (1)(a) that the commission discloses to the private collector and that relates to services the third party provides to the private collector.
(3) A private collector or a third party described in Subsection (2) is subject to the confidentiality requirements and penalty provisions provided in Section 59-1-403 with regard to information disclosed in accordance with this section.
(1) "Gross income" is as defined in Section 61, Internal Revenue Code.
(2) "Income tax" means a tax imposed under:
(a) Chapter 7, Corporate Franchise and Income Taxes; or
(b) Chapter 10, Individual Income Tax Act.
(3) "Income tax return" means a return filed under:
(a) Chapter 7, Corporate Franchise and Income Taxes; or
(b) Chapter 10, Individual Income Tax Act.
(4) "Listed transaction" means a reportable transaction that is the same as, or substantially similar to, a transaction or arrangement specifically identified as a listed transaction by the:
(a) United States Secretary of the Treasury in written materials interpreting the requirements of Section 6011, Internal Revenue Code; or
(b) commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(5) "Material advisor" is as defined in Section 6111, Internal Revenue Code.
(6) "Reportable transaction" means a transaction or arrangement that:
(a) is carried out through or invested in by one or more entities that:
(i) are organized in this state;
(ii) do business in this state;
(iii) derive gross income from sources within this state;
(iv) are subject to income tax; or
(v) are otherwise subject to the jurisdiction of this state; and
(b) is:
(i) a transaction or arrangement described in 26 C.F.R. Sec. 1.6011-4(b)(2) through (7); or
(ii) a reportable transaction as described by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(7) "Taxpayer" means a person that is required to file an income tax return.
(8) "Unitary group" is as defined in Section 59-7-101.
(1) A taxpayer is subject to this section for each taxable year in which:
(a) the taxpayer participates in a reportable transaction;
(b) the taxpayer:
(i) is included in a federal consolidated return under Sections 1501 and 1504(b), Internal Revenue Code; and
(ii) participates in a reportable transaction; or
(c) the taxpayer is a member of a group that:
(i) is a unitary group; and
(ii) participates in a reportable transaction.
(2)
(a) A taxpayer described in Subsection (1) shall disclose a reportable transaction to the commission in a manner required by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) If a taxpayer described in Subsection (1) is required to file a disclosure statement under 26 C.F.R. Sec. 1.6011-4, the taxpayer shall provide the commission a copy of that disclosure statement in a manner required by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(3)
(a) For a listed transaction entered into on or after January 1, 2004, but on or before December 31, 2006, a disclosure statement required by this section shall be attached to:
(i)
(A) the taxpayer's income tax return for the taxable year beginning on or after January 1, 2007, but beginning on or before December 31, 2007; and
(B) any amended income tax return that the taxpayer files for the taxable year beginning on or after January 1, 2007, but beginning on or before December 31, 2007; and
(ii) subject to Subsection (3)(b):
(A) the taxpayer's income tax return for any taxable year after the taxable year beginning on or after January 1, 2007, but beginning on or before December 31, 2007, for which there is a reduction in income tax as a result of the listed transaction; and
(B) any amended income tax return for any taxable year after the taxable year beginning on or after January 1, 2007, but beginning on or before December 31, 2007, for which there is a reduction in income tax as a result of the listed transaction.
(b) For purposes of Subsection (3)(a)(ii), a reduction in income tax as a result of a listed transaction includes a loss, credit, or deduction if the loss, credit, or deduction results from a listed transaction that is carried forward or carried back.
(4) For a reportable transaction entered into on or after January 1, 2004, a disclosure statement required by this section shall be attached to an amended income tax return filed on or after January 1, 2007, if the filing of the amended income tax return reflects a determination by the Internal Revenue Service of the federal income tax treatment of the reportable transaction.
(5)
(a) For a reportable transaction entered into on or after January 1, 2007, a disclosure statement required by this section shall be attached to:
(i)
(A) the taxpayer's income tax return for the taxable year during which the transaction was entered into; and
(B) any amended income tax return that the taxpayer files for the taxable year during which the transaction was entered into; and
(ii) subject to Subsection (5)(b):
(A) the taxpayer's income tax return for any taxable year after the taxable year during which the transaction was entered into, for which there is a reduction in income tax as a result of the reportable transaction; and
(B) any amended income tax return for any taxable year after the taxable year during which the transaction was entered into, for which there is a reduction in income tax as a result of the reportable transaction.
(b) For purposes of Subsection (5)(a)(ii), a reduction in income tax as a result of a reportable transaction includes a loss, credit, or deduction if the loss, credit, or deduction results from a reportable transaction that is carried forward or carried back.
(1)
(a) Except as provided in Subsection (1)(b), a taxpayer that fails to disclose a reportable transaction as required by Section 59-1-1303 is subject to a penalty of $15,000.
(b) A taxpayer that fails to disclose a listed transaction as required by Section 59-1-1303 is subject to a penalty of $30,000.
(2) A penalty imposed by this section is in addition to any other penalty imposed by this title.
(1) If the underpayment of a tax by a taxpayer is attributable to a reportable transaction, the taxpayer is subject to a penalty that is equal to the product of:
(a) 10%; and
(b) the amount of the tax underpayment attributable to the reportable transaction.
(2) If a taxpayer amends an income tax return to change the tax treatment of a reportable transaction after the day on which the commission contacts the taxpayer regarding the examination of the income tax return, that change in the tax treatment of the reportable transaction contained in the amended income tax return may not be considered in determining a tax underpayment under this section.
(3) A penalty imposed by this section is in addition to any other penalty imposed by this title.
(1)
(a) A material advisor shall disclose a reportable transaction to the commission on a form provided by the commission.
(b) The disclosure described in Subsection (1)(a):
(i) shall include information:
(A) identifying and describing the transaction; and
(B) describing any potential tax benefits expected to result from the transaction; and
(ii) may include information other than the information described in Subsection (1)(b)(i) as required by the commission.
(2) If a material advisor described in Subsection (1) is required to file a return disclosing a reportable transaction under Section 6111, Internal Revenue Code, the material advisor shall provide the commission a copy of that return.
(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules prescribing:
(a) the date a:
(i) disclosure required by Subsection (1) shall be filed with the commission; and
(ii) copy of a return required by Subsection (2) shall be filed with the commission;
(b) that only one person may be required to meet the requirements of Subsection (1) or (2) if two or more persons would otherwise be required to meet the requirements of Subsection (1) or (2); and
(c) exemptions from Subsection (1) or (2).
(1) For each reportable transaction, a material advisor shall maintain a list of the persons to which the material advisor provides material aid, assistance, or advice with respect to organizing, managing, promoting, selling, implementing, insuring, or carrying out a reportable transaction.
(2) The list described in Subsection (1) shall include:
(a) the name of each person described in Subsection (1) that is:
(i) a taxpayer;
(ii)
(A) a taxpayer; and
(B) a member of a unitary group; or
(iii)
(A) a taxpayer; and
(B) included in a federal consolidated return under Sections 1501 and 1504(b), Internal Revenue Code;
(b) the same information required to be contained in the list described in 26 C.F.R. Sec. 301.6112-1; and
(c) any additional information required by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(3) The list described in Subsection (1) shall be maintained in the same form and manner as the list described in 26 C.F.R. Sec. 301.6112-1.
(4) A material advisor required to maintain a list under Subsection (1) shall:
(a) make the list available to the commission upon written request by the commission; and
(b) retain the information that is required to be included on the list for seven years.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules prescribing that only one person may be required to meet the requirements of this section if two or more persons would otherwise be required to meet the requirements of this section.
(1) The penalty for failure of a material advisor to disclose a reportable transaction as required by Section 59-1-1306 is $20,000.
(2) If a material advisor that is required to disclose a reportable transaction in accordance with Section 59-1-1306 provides false or incomplete information to the commission, the penalty is $20,000.
(3) If a material advisor that is required to maintain a list under Section 59-1-1307 fails to make that list available to the commission within a 20-day period after the day on which the commission mails a written request for that list, the material advisor is subject to a penalty of $10,000 for each day that the material advisor fails to make that list available to the commission after the expiration of the 20-day period.
(4) A penalty imposed by this section is in addition to any other penalty imposed by this title.
Upon making a record of its actions, and upon reasonable cause shown, the commission may waive, reduce, or compromise a penalty imposed by this part.
As used in this part:
(1) "Administrative cost" means a fee imposed to cover:
(a) the cost of filing;
(b) the cost of administering a garnishment;
(c) the amount the commission pays to a depository institution in accordance with Part 17, Depository Institution Data Match System and Levy Act; or
(d) a cost similar to Subsections (1)(a) through (c) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(2) "Books and records" means the following made available in printed or electronic format:
(a) an account;
(b) a book;
(c) an invoice;
(d) a memorandum;
(e) a paper;
(f) a record; or
(g) an item similar to Subsections (2)(a) through (f) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(3) "Deficiency" means:
(a) the amount by which a tax, fee, or charge exceeds the difference between:
(i) the sum of:
(A) the amount shown as the tax, fee, or charge by a person on the person's return; and
(B) any amount previously assessed, or collected without assessment, as a deficiency; and
(ii) any amount previously abated, credited, refunded, or otherwise repaid with respect to that tax, fee, or charge; or
(b) if a person does not show an amount as a tax, fee, or charge on the person's return, or if a person does not make a return, the amount by which the tax, fee, or charge exceeds:
(i) the amount previously assessed, or collected without assessment, as a deficiency; and
(ii) any amount previously abated, credited, refunded, or otherwise repaid with respect to that tax, fee, or charge.
(4) "Garnishment" means any legal or equitable procedure through which one or more of the following are required to be withheld for payment of an amount a person owes:
(a) an asset of the person held by another person; or
(b) the earnings of the person.
(5) "Liability" means the following that a person is required to remit to the commission:
(a) a tax, fee, or charge;
(b) an addition to a tax, fee, or charge;
(c) an administrative cost;
(d) interest that accrues in accordance with Section 59-1-402; or
(e) a penalty that accrues in accordance with Section 59-1-401.
(6)
(a) Subject to Subsection (6)(b), "mathematical error" is as defined in Section 6213(g)(2), Internal Revenue Code.
(b) The reference to Section 6213(g)(2), Internal Revenue Code, in Subsection (6)(a) means:
(i) the reference to Section 6213(g)(2), Internal Revenue Code, in effect for the taxable year; or
(ii) a corresponding or comparable provision of the Internal Revenue Code as amended, redesignated, or reenacted.
(7)
(a) Except as provided in Subsection (7)(b), "tax, fee, or charge" means:
(i) a tax, fee, or charge the commission administers under:
(A) this title;
(B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(D) Section 19-6-410.5;
(E) Section 19-6-714;
(F) Section 19-6-805;
(G) Section 34A-2-202;
(H) Section 40-6-14; or
(I) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(ii) another amount that by statute is administered by the commission.
(b) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
(i) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
(ii) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
(iii) Chapter 2, Property Tax Act;
(iv) Chapter 3, Tax Equivalent Property Act;
(v) Chapter 4, Privilege Tax; or
(vi) Chapter 13, Part 5, Interstate Agreements.
(8) "Transferee" means:
(a) a devisee;
(b) a distributee;
(c) a donee;
(d) an heir;
(e) a legatee; or
(f) a person similar to Subsections (8)(a) through (e) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
This part does not apply to:
(1) Chapter 2, Property Tax Act;
(2) Chapter 3, Tax Equivalent Property Act; or
(3) Chapter 4, Privilege Tax.
(1) Except as otherwise provided in this title, the commission shall collect a tax, fee, or charge.
(2) The commission may designate an agent to collect a tax, fee, or charge.
(3) The commission shall, upon request, give a receipt for a tax, fee, or charge the commission collects.
(4)
(a) A remedy provided in this part is in addition to other existing remedies.
(b) An action taken by the commission may not be construed to be an election on the part of the state or an officer of the state to pursue a remedy under this part to the exclusion of another remedy.
(5) The commission may:
(a) retain counsel for the purpose of collecting an amount the commission assesses against a person who is not a resident of this state;
(b) establish the compensation of an agent described in Subsection (2) or counsel described in Subsection (5)(a) to be paid out of money appropriated or otherwise lawfully available for payment to the agent or counsel; and
(c) require a bond or other security for an agent described in Subsection (2) or counsel described in Subsection (5)(a) in a form and amount the commission considers appropriate.
(6)
(a) The commission shall represent the state in a matter pertaining to the collection of a tax, fee, or charge.
(b) The commission may institute a proceeding to enforce a judgment allowing for the collection of a liability in the district court of a county in which is located a portion of property against which collection is sought.
(c) For purposes of Subsection (6)(b), the commission may request that the following assist the commission:
(i) the attorney general; or
(ii) a county attorney.
(7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule establish a collection procedure:
(a) in addition to the methods of collecting a liability provided in this title;
(b) that is consistent with this part;
(c) that uses a return, warrant, or other reasonable document or method; and
(d) that is necessary in collecting a liability.
(1) As used in this section, "Section 7502, Internal Revenue Code" means:
(a) Section 7502, Internal Revenue Code, in effect for the taxable year; or
(b) a corresponding or comparable provision to Section 7502, Internal Revenue Code, as amended, redesignated, or reenacted.
(2) If the commission or a person is required to mail a document under this part:
(a) the commission or the person shall mail the document using:
(i) the United States Postal Service; or
(ii) a delivery service the commission describes or designates in accordance with any rules the commission makes as authorized by Subsection (3); and
(b) the document is considered to be mailed:
(i) for a document that is mailed using the method described in Subsection (2)(a)(i), on the date the document is postmarked; or
(ii) for a document that is mailed using the method described in Subsection (2)(a)(ii), on the date the delivery service records or marks the document as having been received by the delivery service for delivery in accordance with any rules the commission makes as authorized by Subsection (3).
(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(a) describing or designating one or more delivery services the commission or a person may use to mail a document under this part if a delivery service the commission describes or specifies is consistent with the definition of "designated delivery service" in Section 7502, Internal Revenue Code; or
(b) providing procedures or requirements for determining the date a delivery service records or marks a document as having been received by the delivery service for delivery if those rules are consistent with Section 7502, Internal Revenue Code.
(4) Subject to Subsection (5), if the commission is required to mail a notice to a person under this part, the commission shall mail the notice to the person at the person's last-known address as shown on the records of the commission.
(5) In the case of a joint return filed by a husband and wife under Chapter 10, Individual Income Tax Act, if the commission is notified in writing by either spouse that separate residences have been established, the commission shall mail a duplicate of the joint notice to each spouse at each spouse's last-known address.
(1) Except as provided in Subsection (3) or (5), the commission shall mail a notice of deficiency to a person in accordance with Section 59-1-1404 if the commission finds there is:
(a) a deficiency in a tax, fee, or charge imposed; or
(b) an increase or decrease in a deficiency.
(2) A notice of deficiency described in Subsection (1) shall contain:
(a) the details of the deficiency; and
(b) the manner of computing the tax.
(3) If the commission estimates an amount of tax, fee, or charge due under Subsection 59-1-1406(2), the commission:
(a) shall mail a notice of deficiency:
(i) to the person for which the commission estimates the amount of tax, fee, or charge due; and
(ii) in accordance with Section 59-1-1404; or
(b) shall:
(i) mail a notice to the person for which the commission estimates the amount of tax, fee, or charge due:
(A) that the amount the commission estimates as a tax, fee, or charge is an assessment; and
(B) in accordance with Section 59-1-1404; and
(ii) provide in the notice described in Subsection (3)(b)(i) that if the person files an amended return within the time period provided in Section 59-1-1410, the commission shall replace the assessment with the amount shown on the person's amended return.
(4) If the commission mails notice to a person under Subsection (3)(b), the person may file an amended return within the period provided in Section 59-1-1410 to replace the assessment of tax.
(5) If the commission makes a jeopardy assessment under Part 7, Termination and Jeopardy Assessments Procedure:
(a) the commission is not required to mail a notice of deficiency described in Subsection (1) to the person against which the commission makes the jeopardy assessment; and
(b) the jeopardy assessment is subject to the procedures and requirements of Part 7, Termination and Jeopardy Assessments Procedure.
(1) A person subject to a tax, fee, or charge shall:
(a) keep in a form prescribed by the commission books and records that are necessary to determine the amount of a tax, fee, or charge the person owes;
(b) keep books and records described in Subsection (1)(a) for the time period during which an assessment may be made under Section 59-1-1408; and
(c) open the person's books and records for examination at any time by:
(i) the commission; or
(ii) an agent or representative the commission designates.
(2)
(a) If a person required to file a return with the commission fails to file the return with the commission, the commission may estimate the tax, fee, or charge due from the best information or knowledge the commission can obtain.
(b) An estimate the commission makes under Subsection (2)(a) is considered to be a return filed on the date the commission makes the estimate.
(3) For the purpose of ascertaining the correctness of a return or for estimating a tax, fee, or charge due in accordance with Subsection (2)(a), the commission may:
(a) examine the books and records bearing upon the matter required to be included in a return;
(b) authorize an agent or representative designated by the commission to examine the books and records bearing upon the matter required to be included in a return;
(c) require the attendance of:
(i) an officer or employee of a person required to make a return; or
(ii) a person having knowledge of a pertinent fact;
(d) take testimony; or
(e) require any other necessary information.
(1) The commission shall correct a mathematical error.
(2) The commission shall provide notice to a person if:
(a) because of a mathematical error appearing on a return, an amount of tax, fee, or charge in excess of that shown upon the return is due; and
(b) an assessment of the amount of tax, fee, or charge is or will be made on the basis of what would have been the correct amount of tax, fee, or charge but for the mathematical error.
(3) The notice required by Subsection (2):
(a) shall describe the mathematical error; and
(b) is not considered to be a notice of deficiency.
(4) For purposes of Subsection (2):
(a) there is no restriction upon the assessment and collection of an amount of tax, fee, or charge described in Subsection (2); and
(b) the person described in Subsection (2) does not have a right to:
(i) file a petition to the commission on the basis of a notice provided under Subsection (2); or
(ii) apply for review by a district court or the Utah Supreme Court of the determination of a mathematical error by the commission.
(1) Except as provided in Subsections (2) through (4), an assessment is made on the date a liability is posted to the records of the commission.
(2) Except as provided in Subsection (4), for purposes of a liability for which the commission mails a notice of deficiency to a person in accordance with Section 59-1-1405, an assessment is made:
(a) if a person has not filed a petition for redetermination of a deficiency under Section 59-1-501, on the date:
(i)
(A) 30 days after the day on which the commission mails the notice of deficiency to the person; or
(B) 90 days after the day on which the commission mails the notice of deficiency to the person if the notice is addressed to a person outside the United States or the District of Columbia; or
(ii) the person in writing:
(A) agrees with the commission on the existence and amount of the liability; and
(B) consents to the assessment of the liability; or
(b) if a person files a petition for redetermination of a deficiency under Section 59-1-501, on the date the liability resulting from a final commission decision is posted to the records of the commission.
(3) Except as provided in Subsection (4), for purposes of a notice of proposed penalty under Section 59-1-302 or Subsection 59-1-401(7), an assessment is made:
(a) if a person has not filed a petition for redetermination of a deficiency under Section 59-1-501, on the date:
(i)
(A) 30 days after the day on which the commission mails the notice of proposed penalty to the person; or
(B) 90 days after the day on which the commission mails the notice of proposed penalty to the person if the notice is addressed to a person outside the United States or the District of Columbia; or
(ii) the person in writing:
(A) agrees with the commission on the existence and amount of the liability; and
(B) consents to the assessment of the liability; or
(b) if a person files a petition for redetermination of a deficiency under Section 59-1-501, on the date the liability resulting from a final commission decision is posted to the records of the commission.
(4) In the case of interest under Section 59-1-402 that accrues to a tax, fee, or charge, an assessment is considered to have been made on the date the tax, fee, or charge is assessed.
(5) The commission may at any time within the time period prescribed for assessment under Section 59-1-1410, increase or decrease an assessment if the commission ascertains that the assessment is imperfect or incomplete in a material respect.
(1) As used in this section, "overpayment" means the amount by which a tax, fee, or charge a person pays exceeds the amount of tax, fee, or charge the person owes.
(2) If the commission determines that the correct amount of a tax, fee, or charge a person is required to remit is greater or less than the amount shown to be due on a return, the commission shall:
(a) recompute the tax, fee, or charge; and
(b) mail notice to the person:
(i) that the commission recomputed the tax, fee, or charge; and
(ii) in accordance with Section 59-1-1404.
(3) If the amount of a tax, fee, or charge a person pays exceeds the amount of tax, fee, or charge the person owes, the commission shall:
(a) credit the overpayment against any liability the person owes; and
(b) refund any balance to:
(i) the person; or
(ii)
(A) the person's assignee;
(B) the person's personal representative;
(C) the person's successor; or
(D) a person similar to Subsections (3)(b)(ii)(A) through (C) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(4) The commission may not credit or refund interest on an overpayment to a person if the commission determines that the overpayment was made for the purpose of investment.
(5) If the commission erroneously determines an amount of tax, fee, or charge to be due from a person, the commission shall:
(a) authorize the amount to be cancelled upon the commission's records; and
(b) mail notice to the person:
(i) that the commission cancelled the amount upon the commission's records; and
(ii) in accordance with Section 59-1-1404.
(1)
(a) Except as provided in Subsections (3) through (7) and Sections 59-5-114, 59-7-519, and 59-10-536, the commission shall assess a tax, fee, or charge within three years after the day on which a person files a return.
(b) Except as provided in Subsections (3) through (7), if the commission does not assess a tax, fee, or charge within the three-year period provided in Subsection (1)(a), the commission may not commence a proceeding to collect the tax, fee, or charge.
(2)
(a) Except as provided in Subsection (2)(b), for purposes of this part, a return filed before the last day prescribed by statute or rule for filing the return is considered to be filed on the last day for filing the return.
(b) A return of withholding tax under Chapter 10, Part 4, Withholding of Tax, is considered to be filed on April 15 of the succeeding calendar year if the return:
(i) is for a period ending with or within a calendar year; and
(ii) is filed before April 15 of the succeeding calendar year.
(3) The commission may assess a tax, fee, or charge or commence a proceeding for the collection of a tax, fee, or charge at any time if:
(a) a person:
(i) files a:
(A) false return with intent to evade; or
(B) fraudulent return with intent to evade; or
(ii) fails to file a return; or
(b) the commission estimates the amount of tax, fee, or charge due in accordance with Subsection 59-1-1406(2).
(4) The commission may extend the period to assess a tax, fee, or charge or to commence a proceeding to collect a tax, fee, or charge if:
(a) the three-year period under Subsection (1) has not expired; and
(b) the commission and the person sign a written agreement:
(i) authorizing the extension; and
(ii) providing for the length of the extension.
(5) The commission may make an assessment as provided in Subsection (6) if:
(a) the commission delays an audit at the request of a person;
(b) the person subsequently refuses to agree to an extension request by the commission; and
(c) the three-year period under Subsection (1) expires before the commission completes the audit.
(6) An assessment under Subsection (5) shall be:
(a) for the time period for which the commission could not make the assessment because of the expiration of the three-year period; and
(b) in an amount equal to the difference between:
(i) the commission's estimate of the amount of tax, fee, or charge the person would have been assessed for the time period described in Subsection (6)(a); and
(ii) the amount of tax, fee, or charge the person actually paid for the time period described in Subsection (6)(a).
(7) If a person erroneously pays a liability, overpays a liability, pays a liability more than once, or the commission erroneously receives, collects, or computes a liability, the commission shall:
(a) credit the liability against any amount of liability the person owes; and
(b) refund any balance to:
(i) the person; or
(ii)
(A) the person's assign;
(B) the person's personal representative;
(C) the person's successor; or
(D) a person similar to Subsections (7)(b)(ii)(A) through (C) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(8)
(a) Except as provided in Subsection (8)(b) or Section 19-12-203, 59-7-522, 59-10-529, or 59-12-110, the commission may not make a credit or refund unless a person files a claim with the commission within the later of:
(i) three years from the due date of the return, including the period of any extension of time provided in statute for filing the return; or
(ii) two years from the date the tax was paid.
(b) The commission shall extend the time period for a person to file a claim under Subsection (8)(a) if:
(i) the time period described in Subsection (8)(a) has not expired; and
(ii) the commission and the person sign a written agreement:
(A) authorizing the extension; and
(B) providing for the length of the extension.
(9) If the commission denies a claim for a credit or refund, a person may request a redetermination of the denial by filing a petition or request for agency action with the commission:
(a)
(i) within a 30-day period after the day on which the commission mails a notice of denial for the claim for credit or refund; or
(ii) within a 90-day period after the day on which the commission mails a notice of denial for the claim for credit or refund, if the notice is addressed to a person outside the United States or the District of Columbia; and
(b) in accordance with:
(i) Section 59-1-501; and
(ii) Title 63G, Chapter 4, Administrative Procedures Act.
(10) The action of the commission on a person's petition for redetermination of a denial of a claim for credit or refund is final 30 days after the day on which the commission sends the commission's decision or order, unless the person seeks judicial review.
(1) The commission shall as soon as practicable mail notice and demand to a person who owes a liability that has been assessed but remains unpaid.
(2)
(a) The notice and demand required by Subsection (1) shall:
(i) except as provided in Subsection (2)(b), state the amount of the liability;
(ii) demand payment of the liability; and
(iii) be mailed in accordance with Section 59-1-1404.
(b) For purposes of Subsection (2)(a)(i), the notice and demand shall:
(i) state the amount of interest and penalties that have accrued as of the date of the notice and demand; and
(ii) include a statement that interest and penalties may continue to accrue in accordance with Sections 59-1-401 and 59-1-402.
(3) Payment for a liability may not be demanded before the last day prescribed for payment of the liability, including an extension, unless the commission determines under Section 59-1-701 that collection of the liability would be jeopardized by delay.
(4) Upon issuance of the notice and demand described in this section, a person that owes a liability shall pay the liability at the place and time stated in the notice and demand.
(1)
(a) Except as provided in Subsection (1)(b), this section applies to a delinquency in the payment of a liability.
(b) This section does not apply to a garnishment.
(2) If a person is delinquent in the payment of a liability, the commission may mail notice of the amount of the delinquency:
(a) to a person that at the time of the receipt of the notice has in that person's possession, under that person's control, or owing to that person:
(i) a credit of the person owing the liability;
(ii) personal property of the person owing the liability; or
(iii) a debt of the person owing the liability; and
(b) in accordance with Section 59-1-1404.
(3) A person to which the commission mails notice in accordance with this section shall, within 10 days after the date the commission mails the notice, advise the commission of the following in the person's possession, under the person's control, or owing to the person:
(a) a credit of the person owing the liability;
(b) personal property of the person owing the liability; or
(c) a debt of the person owing the liability.
(4) A person to which the commission mails notice in accordance with this section may not transfer or make any other disposition of a credit, personal property, or debt described in Subsection (3) until the sooner of:
(a) the commission consents to the transfer or disposition; or
(b) 20 days elapse after the day on which the person provides the commission the information required by Subsection (3).
(1) In addition to Section 40-6-14, 59-5-108, 59-5-208, 59-12-112, 59-13-302, or 59-13-311, if a person that owes a liability fails to pay that liability after the commission mails notice and demand under Section 59-1-1411, the amount of liability, plus any administrative cost, is a lien in favor of the state upon all property and rights to property, whether real or personal, belonging to that person.
(2) Unless another date is specifically established by law, the lien imposed by this section:
(a) arises at the time the commission makes the assessment of the tax, fee, or charge that is part of the liability; and
(b) continues until the liability and administrative costs described in Subsection (1), or a judgment against the person arising from that liability and administrative costs:
(i) is satisfied; or
(ii) is unenforceable because the time period described in Subsection 59-1-1414(8) has elapsed.
(1) Except as provided in Subsections (3) and (4), if a person who owes a liability fails to pay that liability within 30 days after the day on which the commission mails notice and demand under Section 59-1-1411, the commission may:
(a) file a warrant with the clerk of:
(i) except as provided in Subsection (1)(a)(ii), the district court of any county in which that person has real or personal property; or
(ii) if the person is not a resident of this state, the Third District Court in Salt Lake City; or
(b) issue a warrant in duplicate under its official seal directed to the sheriff of a county requiring the sheriff to:
(i) levy upon and sell the person's real and personal property for the payment of the liability, plus the cost of executing the warrant; and
(ii) return to the commission within 60 days:
(A) the warrant; and
(B) the money collected under the warrant.
(2)
(a) A sheriff that receives a warrant under Subsection (1) shall within five days file a duplicate copy of the warrant with the clerk of the district court of the appropriate county.
(b)
(i) The sheriff shall execute the warrant in the same manner prescribed by law for an execution issued against property in accordance with a judgment by a court.
(ii) An execution of a warrant described in Subsection (2)(b)(i) has the same effect as an execution issued against property in accordance with a judgment by a court.
(iii) A sheriff that executes a warrant under Subsection (2)(b)(i) shall receive fees for the sheriff's services in executing the warrant as if the sheriff were executing a judgment by a court.
(3) The commission may file a warrant without regard to the 30-day period provided in Subsection (1) if the commission finds that the collection of a liability that a person owes is in jeopardy.
(4) The commission may not file a warrant under this section more than three years after the assessment of the tax, fee, or charge that is a portion of a liability.
(5) A clerk of a district court that receives a warrant under this section shall enter in the judgment docket:
(a) in the column for judgment debtors, the name of the person stated in the warrant; and
(b) in appropriate columns:
(i) the amount for which the warrant is filed; and
(ii) the date the warrant is filed.
(6) Notwithstanding Section 78B-5-202, the liability that serves as the basis for a warrant is a binding lien upon the real, personal, and other property of the person to the same extent as other judgments docketed in the office of the clerk of the district court.
(7) When a warrant is filed with the clerk of a district court in accordance with this section, the commission is considered to have obtained a judgment against a person for a liability.
(8) Notwithstanding Section 78B-5-202, a judgment described in Subsection (7) is effective for a period ending 10 years after the date the amount for which the warrant is filed is assessed in accordance with Section 59-1-1408.
(9) The commission may not renew a judgment described in Subsection (7).
(10) The commission may authorize an action or proceeding to collect or enforce a judgment described in Subsection (7) in any place and by any procedure that a civil judgment of the Utah Supreme Court may be collected or enforced if:
(a) a warrant is filed under this section against a person who is not a resident of this state; and
(b) the commission determines that the person does not have sufficient real or personal property in the state to pay the person's liability.
(11) After filing a warrant under Section 59-1-1414, the commission shall follow the notice requirements of Section 38-12-102.
The commission may release property from a lien placed under this part:
(1) if the commission determines that the interests of the state will not be jeopardized by the release; and
(2) under conditions the commission may require.
(1)
(a) If a transferee is obligated at law or equity for an amount of a liability of a person that originally owes a liability, the transferee is subject to this part for the assessment, payment, and collection of the amount of the liability for which the transferee has an obligation.
(b) The period of limitations for an assessment against a transferee is extended:
(i) subject to the other provisions of this section, by one year for each successive transfer:
(A) in the order of transfer; and
(B) beginning from the person that originally owes the liability to the transferee involved; and
(ii) by not more than three years in the aggregate.
(2)
(a) Subject to Subsection (2)(b), if before the expiration of the period of limitations for assessment against a transferee, the commission files a claim in court against the person that originally owes the liability or the last preceding transferee, based upon the liability the person originally owes, the period of limitation for assessment against the transferee may not expire before one year after the claim is finally allowed, disallowed, or otherwise disposed of.
(b)
(i) Subject to Subsection (2)(b)(ii), if before expiration of the time period described in Subsection (1)(b) or (2)(a) for an assessment against a transferee, the commission and the transferee agree in writing to an assessment after the time period described in Subsection (1)(b) or (2)(a), the commission may make an assessment against the transferee at any time before the expiration of the time period to which the commission and transferee agree in writing.
(ii) A time period that the commission and a transferee agree upon in writing in accordance with Subsection (2)(b)(i) may be extended by written agreement:
(A) between the commission and the transferee; and
(B) made before the expiration of the time period that the commission and the transferee previously agreed upon.
(c) An agreement described in Subsection (2)(b)(i) or an extension described in Subsection (2)(b)(ii) is considered to be an agreement or extension described in Section 59-1-1410 for purposes of determining the period of limitation on a credit or refund to a transferee of an overpayment of a liability:
(i) made by:
(A) the transferee; or
(B) the transferor; and
(ii) for which the transferee is allowed a credit or refund.
(d) If an agreement described in Subsection (2)(b)(i) or an extension described in Subsection (2)(b)(ii) is executed after the expiration of the period of limitation for assessment against the person that originally owes a liability, the time period in which a credit or refund may be claimed shall be increased by the time period:
(i) beginning on the date of the expiration of the period of limitation for assessment against the person that originally owes the liability; and
(ii) ending on the date the agreement described in Subsection (2)(b)(i) or the extension described in Subsection (2)(b)(ii) is executed.
(3) If the person that originally owes a liability is deceased, the period of limitation for assessment of a liability against that person is the period that would be in effect had the person lived.
(4)
(a) Subject to Subsection (4)(b) and notwithstanding Section 59-1-403, the commission shall make available to a transferee information necessary to enable the transferee to determine the liability:
(i) of the person that originally owes the liability; or
(ii) a preceding transferee owes.
(b) The commission may not take an action under Subsection (4)(a) that imposes an undue hardship to the person that originally owes the liability or a preceding transferee.
(1) In a proceeding before the commission, the burden of proof is on the petitioner except for determining the following, in which the burden of proof is on the commission:
(a) whether the petitioner committed fraud with intent to evade a tax, fee, or charge;
(b) whether the petitioner is obligated as the transferee of property of the person that originally owes a liability or a preceding transferee, but not to show that the person that originally owes a liability is obligated for the liability; and
(c) whether the petitioner is liable for an increase in a deficiency if the increase is asserted initially after a notice of deficiency is mailed in accordance with Section 59-1-1405 and a petition under Part 5, Petitions for Redetermination of Deficiencies, is filed, unless the increase in the deficiency is the result of a change or correction of federal taxable income:
(i) required to be reported; and
(ii) of which the commission has no notice at the time the commission mails the notice of deficiency.
(2) Regardless of whether a taxpayer has paid or remitted a tax, fee, or charge, the commission or a court considering a case involving the tax, fee, or charge shall:
(a) construe a statute imposing the tax, fee, or charge strictly in favor of the taxpayer; and
(b) construe a statute providing an exemption from or credit against the tax, fee, or charge strictly against the taxpayer.
(1) The time period allowed for making an assessment or commencing a proceeding under Section 59-1-1410 shall be extended by the time period during which the commission is prohibited by law from making an assessment or commencing a proceeding for collection, plus 60 days.
(2) The time period allowed for commencing a proceeding under Section 59-1-1410 shall be extended by the time period during which the commencement of the proceeding is stayed by injunction or statutory prohibition.
(1) If the commission commences a proceeding relating to the following, the venue is the Third District Court in Salt Lake City:
(a) failure to pay a liability;
(b) failure to file a return; or
(c) failure to supply information.
(2) Nothing in this section affects a right to seek judicial review in accordance with Part 6, Judicial Review.
(1) As used in this section:
(a) "Administrative garnishment order" includes a continuing administrative garnishment order issued under this section.
(b) "Disposable earnings" means the same as that term is defined in Section 70C-7-103.
(c) "Garnishee" means a person to whom the commission issues an administrative garnishment order under this section.
(d) "Nonexempt periodic payment" means any recurring payment that, under Title 78B, Chapter 5, Part 5, Utah Exemptions Act, is not exempt from the judicial process to collect an unsecured debt.
(2)
(a) Subject to Subsection (3), if a taxpayer owes a liability, the commission may issue an administrative garnishment order against the taxpayer's personal property, including wages, in the possession or control of a person other than the taxpayer in the same manner and with the same effect as if the order were a writ of garnishment issued by a court with jurisdiction.
(b) In addition to the underlying liability, the commission may satisfy through an administrative garnishment any costs or fees incurred by the commission as a result of issuing the administrative garnishment order.
(3) The commission may issue an administrative garnishment order to a person described in Subsection (2) if:
(a) the commission has filed a warrant against the taxpayer for the underlying liability in accordance with Section 59-1-1414; and
(b) the commission's executive director or the executive director's designee signs the administrative garnishment order.
(4) An administrative garnishment order issued in accordance with this section is subject to the procedures and due process protections provided by Rule 64D, Utah Rules of Civil Procedure.
(5) The maximum portion of a taxpayer's disposable earnings subject to garnishment under this section is the lesser of:
(a) 25% of the taxpayer's disposable earnings; or
(b) the amount by which the taxpayer's disposable earnings for a pay period exceeds the number of weeks in that pay period multiplied by 30 times the federal minimum wage as provided in 29 U.S.C. Sec. 201 et seq., Fair Labor Standards Act of 1938.
(6) Upon agreement by the garnishee, the parties to an administrative garnishment order may accept and transmit documents relating to the administrative garnishment order by electronic means, including service of process, proof of service, interrogatories, answers, and any other information shared between the garnishee and the commission.
(7) In an administrative garnishment order issued under this section, the commission shall:
(a) identify the taxpayer, including:
(i) the taxpayer's name and address; and
(ii) if known:
(A) the last four digits of the taxpayer's social security number, or the taxpayer's full social security number, if the taxpayer's full social security number is required by federal law; and
(B) the taxpayer's date of birth;
(b) contain a statement that includes:
(i) if known, the nature, location, account number, and estimated value of the property subject to administrative garnishment;
(ii) if known, the name, address, and phone number of the person holding the property subject to administrative garnishment; and
(iii) the name, address, and phone number of any person claiming an interest in the property described in Subsection (7)(b)(i) or (ii);
(c) state whether any of the property subject to administrative garnishment consists of earnings;
(d) state the outstanding amount owed under the warrant described in Subsection (3)(a);
(e) state the amount of any applicable costs or fees included in the administrative garnishment;
(f) state the manner in which the garnishee shall deliver the property to the commission; and
(g) state that the commission shall pay the garnishee the fee described in Section 78A-2-216.
(8) As part of the administrative garnishment order, the commission shall serve on the garnishee the following interrogatories:
(a) whether the garnishee is indebted to the taxpayer and, if so, the nature of the indebtedness;
(b) whether the garnishee possesses or controls any property of the taxpayer, and, if so, the nature, location, and estimated value of the property;
(c) whether the garnishee knows of any property of the taxpayer in the possession or control of another person, and if so, the following information about the property:
(i) the nature;
(ii) the location; and
(iii) the estimated value;
(d)
(i) whether the garnishee intends to deduct from the property a liquidated claim against the taxpayer;
(ii) a description of any claim described in Subsection (8)(d)(i); and
(iii) the amount deducted, if any;
(e) the date and manner of the garnishee's service of the documents described in Subsection (9)(c) on the taxpayer and any third party;
(f) the date on which the taxpayer was previously served with any continuing administrative garnishment order;
(g) any other relevant information the commission requests, including:
(i) the taxpayer's position;
(ii) the taxpayer's rate of pay;
(iii) the taxpayer's compensation method;
(iv) the taxpayer's pay period; and
(v) a computation of the taxpayer's disposable earnings.
(9) Within seven days after the day on which an administrative garnishment order is served, the garnishee shall:
(a) answer each interrogatory described in Subsection (8);
(b) serve the answers to the interrogatories on the commission;
(c) serve the taxpayer and any other person known to the garnishee to have an interest in the property a copy of:
(i) the administrative garnishment order; and
(ii) the answers to the interrogatories described in Subsection (9)(b); and
(d) inform the taxpayer of the taxpayer's right to reply to the answers described in Subsection (9)(b) and request a hearing in district court as provided by Rule 64D, Utah Rules of Civil Procedure.
(10)
(a) A garnishee who acts in accordance with this section and the administrative garnishment order is released from liability unless an answer to an interrogatory is successfully controverted.
(b) Except as provided in Subsection (10)(c), if a garnishee fails to comply with the administrative garnishment order without a court or final administrative order directing otherwise, the garnishee is liable for an amount including:
(i) the lesser of the value of the property or the balance owed under the warrant described in Subsection (3)(a);
(ii) reasonable costs and fees; and
(iii) attorney fees incurred by the parties as a result of the garnishee's failure.
(c) If a garnishee demonstrates that the garnishee took reasonable steps to secure the property, the commission may excuse the garnishee of liability in whole or in part.
(11) If the commission files a motion to enforce an administrative garnishment order under this section, the commission shall file the motion in district court and attach to the motion a statement that the commission has in good faith conferred or attempted to confer with the garnishee in an effort to settle the issue without court action.
(12) A garnishee is not liable for drawing, accepting, making, or endorsing a negotiable instrument that is not in the possession or control of the garnishee at the time the administrative garnishment order is served.
(13) A garnishee may deduct from the property any liquidated claim against the taxpayer.
(14)
(a) If a debt owed by the taxpayer to the garnishee is secured by the property subject to the administrative garnishment order, the commission may apply the property to the debt.
(b) An administrative garnishment order described in Subsection (14)(a) remains in effect regardless of whether the commission applies the property to the debt.
(15)
(a) The commission may issue a continuing administrative garnishment order against any nonexempt periodic payment.
(b) A continuing administrative garnishment order applies to payments to the taxpayer:
(i) beginning on the day on which the continuing administrative garnishment order is served; and
(ii) ending on the earlier of:
(A) subject to Subsection (15)(c), one year after the day on which the continuing administrative garnishment order is served;
(B) 120 days after the day on which a second or subsequent continuing administrative garnishment against the taxpayer is served;
(C) the day on which the last nonexempt periodic payment subject to the continuing administrative garnishment order occurs;
(D) the day on which the warrant described in Subsection (3)(a) is stayed, vacated, or satisfied in full; or
(E) the day on which the commission releases the continuing administrative garnishment order.
(c) If the commission issues a continuing administrative garnishment order during the term of another continuing administrative garnishment order against the same taxpayer, the period described in Subsection (15)(b)(i) is tolled if the other continuing administrative garnishment order:
(i) is in effect at the time the commission serves the subsequent continuing administrative garnishment order; and
(ii) requires payments greater than or equal to the maximum portion of disposable earnings described in Subsection (5).
(d) For each periodic payment period, no later than seven days after the day on which the periodic payment period ends, the garnishee shall:
(i) answer each interrogatory described in Subsection (8);
(ii) serve the answers to the interrogatories on the commission, the taxpayer, and any other person known to the garnishee to have an interest in the property; and
(iii) deliver the property to the commission in the manner specified in the continuing administrative garnishment order.
(16)
(a) The commission may not name more than one garnishee in an administrative garnishment order.
(b) Priority among garnishments is according to the order of service on the garnishee.
(c) An administrative garnishment order applies to earnings accruing during the pay period in which the order is effective.
(17) This section is subject to Title 78B, Chapter 5, Part 5, Utah Exemptions Act.
Subject to Subsection 59-1-1502(3), as used in this part, "specie legal tender" means gold or silver coin that is issued by the United States.
(1) Specie legal tender is legal tender in the state.
(2) Except as expressly provided by contract, a person may not compel any other person to tender or accept specie legal tender.
(3) Gold or silver coin or bullion, other than gold or silver coin that is issued by the United States, is considered to be specie legal tender and is legal tender in the state if:
(a) a court of competent jurisdiction issues a final, unappealable judgment or order determining that the state may recognize the gold or silver coin or bullion, other than gold or silver coin that is issued by the United States, as legal tender in the state; or
(b) Congress enacts legislation that:
(i) expressly provides that the gold or silver coin or bullion, other than gold or silver coin that is issued by the United States, is legal tender in the state; or
(ii) expressly allows the state to recognize the gold or silver coin or bullion, other than gold or silver coin that is issued by the United States, as legal tender in the state.
(4) A central bank digital currency, as defined in Section 70A-1a-201, is not specie legal tender and is not legal tender in the state.
(1) A nonrefundable individual income tax credit is allowed as provided in Section 59-10-1028 related to a capital gain on a transaction involving the exchange of one form of legal tender for another form of legal tender.
(2) Sales of currency or coin are exempt from sales and use taxes as provided in Subsection 59-12-104(50).
(3) The remittance of a sales and use tax on a transaction involving specie legal tender is as provided in Section 59-12-107.
The attorney general shall enforce this part.
If any provision of this part or the application of any provision to any person or circumstance is held invalid by a final decision of a court of competent jurisdiction, the remainder of this part shall be given effect without the invalid provision or application. The provisions of this part are severable.
As used in this part:
(1)
(a) "Ballot proposition" means:
(i) an opinion question or other question concerning a tax increase submitted to voters for their approval or rejection; or
(ii) a question submitted to voters concerning the issuance of bonds under Section 11-14-103.
(b) "Ballot proposition" does not include an initiative or referendum authorized under Title 20A, Chapter 7, Issues Submitted to the Voters.
(2) "Determination date" means the date of an election at which a ballot proposition is considered by voters.
(3) "Election officer" is as defined in Section 20A-1-102.
(4) "Eligible voter" means a person who:
(a) has registered to vote in accordance with Title 20A, Chapter 2, Voter Registration; and
(b) is a resident of a voting district or precinct within the taxing entity that is holding an election to consider a ballot proposition.
(5) "Governing body" is as defined in Section 59-2-102.
(6) "Tax increase" means:
(a) for a property tax, the imposition of a property tax rate or increase in a property tax rate if the imposition or increase is required to be submitted to voters for their approval or rejection; or
(b) for a sales and use tax imposed under Chapter 12, Sales and Use Tax Act, a sales and use tax rate that:
(i) is not currently imposed; or
(ii) exceeds the sales and use tax rate that is currently imposed.
(7) "Taxing entity" means:
(a) a taxing entity as defined in Section 59-2-102; or
(b) a county, city, or town authorized to impose a sales and use tax under Chapter 12, Sales and Use Tax Act.
A taxing entity may not submit a ballot proposition unless the taxing entity complies with this part.
(1) The arguments for or against a ballot proposition shall conform to the requirements of this section.
(2)
(a)
(i) The governing body of a taxing entity shall submit to the election officer an argument in favor of a ballot proposition.
(ii) To prepare an argument for or against a ballot proposition, an eligible voter shall file a request with the election officer at least 65 days before the election at which the ballot proposition is to be voted on.
(b) If two or more eligible voters wish to submit an argument for, or an argument against, a ballot proposition, the election officer shall designate one of the eligible voters to submit the argument.
(c)
(i) An eligible voter who submits an argument under this section shall:
(A) ensure that the argument does not exceed 500 words in length;
(B) submit the argument to the election officer no less than 60 days before the determination date; and
(C) include with the argument the eligible voter's name, residential address, postal address, email address if available, and phone number.
(ii) An election officer shall refuse to accept and publish an argument that is submitted after the deadline described in Subsection (2)(c)(i)(B).
(3)
(a) An election officer who timely receives the arguments in favor of and against a ballot proposition shall, within one business day after the day on which the election officer receives both arguments, send, via email or mail:
(i) a copy of the argument in favor of the ballot proposition to the eligible voter who submitted the argument against the ballot proposition; and
(ii) a copy of the argument against the ballot proposition to the eligible voter who submitted the argument in favor of the ballot proposition.
(b) The eligible voter who submitted a timely argument in favor of the ballot proposition:
(i) may submit to the election officer a rebuttal argument of the argument against the ballot proposition;
(ii) shall ensure that the rebuttal argument does not exceed 250 words in length; and
(iii) shall submit the rebuttal argument no later than 45 days before the election day on which the ballot proposition will be submitted to the voters.
(c) The eligible voter who submitted a timely argument against the ballot proposition:
(i) may submit to the election officer a rebuttal argument of the argument in favor of the ballot proposition;
(ii) shall ensure that the rebuttal argument does not exceed 250 words in length; and
(iii) shall submit the rebuttal argument no later than 45 days before the election day on which the ballot proposition will be submitted to the voters.
(d) An election officer shall refuse to accept and publish a rebuttal argument that is submitted after the deadline described in Subsection (3)(b)(iii) or (3)(c)(iii).
(4)
(a) Except as provided in Subsection (4)(b):
(i) an eligible voter may not modify an argument or rebuttal argument after the eligible voter submits the argument or rebuttal argument to the election officer; and
(ii) a person other than the eligible voter described in Subsection (4)(a)(i) may not modify an argument or rebuttal argument.
(b) The election officer, and the eligible voter who submits an argument or rebuttal argument, may jointly agree to modify an argument or a rebuttal argument in order to:
(i) correct factual, grammatical, and spelling errors; and
(ii) reduce the number of words to come into compliance with the requirements of this section.
(c) An election officer shall refuse to accept and publish an argument or rebuttal argument if the eligible voter who submits the argument or rebuttal argument fails to negotiate, in good faith, to modify the argument or rebuttal argument in accordance with Subsection (4)(b).
(5) An election officer may designate another eligible voter to take the place of an eligible voter described in this section if the original eligible voter is, due to injury, illness, death, or another circumstance, unable to continue to fulfill the duties of an eligible voter described in this section.
(6) The election officer of a taxing entity shall:
(a) post the arguments and rebuttal arguments on the Statewide Electronic Voter Information Website as described in Section 20A-7-801 for 30 consecutive days before the determination date;
(b) if a taxing entity has a public website, post all arguments and rebuttal arguments in a prominent place on the taxing entity's public website for 30 consecutive days before the determination date; and
(c) if the taxing entity publishes a newsletter or other periodical, post all arguments and rebuttal arguments in the next scheduled newsletter or other periodical published before the determination date.
(7) When posting an argument and rebuttal argument under Subsection (6), the election officer of a taxing entity shall ensure that:
(a) a rebuttal argument is posted in the same manner as a direct argument;
(b) each rebuttal argument follows immediately after the direct argument that it seeks to rebut; and
(c) information regarding the public meeting required by Section 59-1-1605 follows immediately after the posted arguments, including the date, time, and place of the public meeting.
(1) The governing body of a taxing entity shall conduct a public meeting in accordance with this section no more than 45, but at least four, days before the determination date.
(2) The governing body of the taxing entity shall allow equal time, within a reasonable limit, for a presentation of the arguments:
(a) in favor of the ballot proposition; and
(b) against the ballot proposition.
(3)
(a) A governing body of a taxing entity conducting a public meeting described in Subsection (1) shall provide an interested party desiring to be heard an opportunity to present oral testimony within reasonable time limits.
(b) A taxing entity shall hold a public meeting described in this section beginning at or after 6 p.m.
(4)
(a) A taxing entity shall provide a digital audio recording of a public meeting described in Subsection (1) no later than three days after the date of the public meeting.
(b) For purposes of providing the digital audio recording described in Subsection (4)(a), a governing body of a taxing entity shall:
(i) if a taxing entity has a public website, provide access to the digital audio recording described in Subsection (4)(a) on the taxing entity's public website; or
(ii) provide a digital copy of the recording described in Subsection (4)(a) to members of the public at the taxing entity's primary government office building.
As used in this part:
(1) "Agreement" means an agreement described in Section 59-1-1704 between a depository institution and the commission.
(2) "Delinquent taxpayer" means a person against whom the commission is considered to have obtained a judgment for a liability under Section 59-1-1414.
(3) "Depository institution" is a depository institution described in Section 7-1-103 that holds or receives deposits, savings, or share accounts.
(4) "Depository institution data match system" means the database that the commission develops, maintains, and operates in accordance with Section 59-1-1703.
(5) "Identifying information" means:
(a) the name of the account holder;
(b) the social security number of the account holder; or
(c) other identifying information.
(6) "Liability" means the same as that term is defined in Section 59-1-1402.
(7) "Satisfy a liability" means to pay in full a liability that is the subject of a levy under this part.
(1) The commission shall develop, maintain, and operate a database as provided in this section.
(2) The database described in Subsection (1):
(a) shall use automated data exchanges;
(b) shall identify a delinquent taxpayer by identifying information;
(c) may be accessed only by the commission or a depository institution;
(d) shall be used to determine whether a delinquent taxpayer identified in the database has the same identifying information as that of an account holder at a depository institution; and
(e) shall be updated by the commission on at least a quarterly basis.
(1) A depository institution that does business in this state may elect to use the depository institution data match system to respond to judicial process against a delinquent taxpayer.
(2) A depository institution may not make an election under Subsection (1) unless the commission approves the election.
(3) A depository institution that elects to use the depository institution data match system shall enter into an agreement with the commission.
(4) An agreement under this section shall:
(a) address the operation of the depository institution data match system;
(b) require the depository institution to comply with this part;
(c) address reimbursement to the depository institution for complying with this part; and
(d) provide for the security and confidentiality of data contained in the depository institution data match system.
(5) An election under this section does not preclude the commission from requiring a depository institution to respond to judicial process against a delinquent taxpayer:
(a) by means other than the depository institution data match system; and
(b) as provided by law.
(1) A depository institution that enters into an agreement with the commission in accordance with Section 59-1-1704 shall access the depository institution data match system on or before the 15th day of each calendar quarter.
(2) A depository institution that accesses the depository institution data match system shall determine whether a delinquent taxpayer identified in the depository institution data match system has the same identifying information as that of an account holder at the depository institution.
A depository institution that determines under Section 59-1-1705 that a delinquent taxpayer identified in the depository institution data match system has the same identifying information as that of an account holder at the depository institution shall provide the commission, within five days after the day on which the depository institution accesses the depository institution data match system:
(1) the name of the account holder;
(2) the address of the account holder;
(3) the account number of the account holder;
(4) the account balance of the account holder on the day that the depository institution provides the commission the information required by this section;
(5) the type of account of the account holder;
(6) the social security number of the account holder;
(7) other information that identifies the account holder; and
(8) the name of, and contact information for, other account holders that have access to the account.
(1) The commission shall provide, within three business days after a depository institution provides the commission information described in Section 59-1-1706, a notice of levy to the depository institution by electronic means:
(a) stating that the commission levies an amount equal to the liability of a delinquent taxpayer that is an account holder at the depository institution; and
(b) identifying the account subject to levy.
(2) A levy described in Subsection (1) is valid until the earlier of:
(a) the day on which the commission releases the levy;
(b) the day on which the delinquent taxpayer satisfies the liability; or
(c) the day on which the depository institution releases, in accordance with Section 59-1-1711, the amounts deposited into the account of the delinquent taxpayer.
(3) The commission shall provide notice to a depository institution by electronic means:
(a) if the commission releases a levy, no later than one business day after the day on which the commission releases the levy; or
(b) if a delinquent taxpayer satisfies the liability, no later than one business day after the day on which the delinquent taxpayer satisfies the liability.
(1) Subject to Subsection (2), before the later of two business days after the day on which, or 48 hours after the time at which, a depository institution receives a notice of levy described in Section 59-1-1707 from the commission, the depository institution shall secure the amount subject to levy in a delinquent taxpayer's account by prohibiting:
(a) any person that has access to the delinquent taxpayer's account from accessing the amount; or
(b) the transfer or other disposition of the amount.
(2) For purposes of Subsection (1), a depository institution shall secure an amount subject to levy regardless of whether a person other than the delinquent taxpayer has access to the account or is an account holder.
(1) The commission shall, within three business days after the day on which the commission provides a notice of levy described in Section 59-1-1707 to a depository institution, notify a delinquent taxpayer that the commission has issued the notice of levy to the depository institution.
(2) The notice described in Subsection (1) shall:
(a) state the amount subject to levy as stated in the notice of levy described in Section 59-1-1707;
(b) notify the delinquent taxpayer that the depository institution is required to secure the amount subject to levy in accordance with Section 59-1-1708;
(c) identify each account subject to levy at the depository institution; and
(d) describe the actions a delinquent taxpayer may take to:
(i) satisfy the liability; or
(ii) resolve an issue as to whether the commission has the authority to receive from a depository institution the amount subject to levy at the depository institution.
(1) In accordance with this section, the commission, in consultation with the depository institution, shall determine the portion of the amount subject to a levy under this part.
(2) The time period for making the determination required by Subsection (1):
(a) begins on the day on which the commission provides a notice of levy described in Section 59-1-1707 to a depository institution; and
(b) ends on the first business day after a 21-day period beginning on the day described in Subsection (2)(a).
(3) The commission shall provide notice to a depository institution, no later than the last day of the time period described in Subsection (2), of the portion of the amount subject to a levy under this part.
(4) The portion of an amount subject to levy under this part that the commission may receive from a depository institution may not exceed the lesser of:
(a) the amount of the liability that is subject to the levy;
(b) the amount the commission would have been able to receive had the commission obtained a writ of garnishment; or
(c) the balance of the delinquent taxpayer's account that a depository institution has secured or will secure in accordance with Section 59-1-1708 minus any amounts that the depository institution holds as a security interest.
(5) As part of the determination required by Subsection (1), the commission shall allow a delinquent taxpayer to communicate with and provide information to the commission.
(6) The commission shall order a conference between the commission and the delinquent taxpayer in accordance with Section 63G-4-102 if:
(a) the commission finds that there is a dispute as to an issue related to the determination required by Subsection (1); or
(b) a delinquent taxpayer requests the conference to address a dispute as to an issue related to the determination required by Subsection (1).
(7) The time period beginning on the day on which the commission orders a conference in accordance with Subsection (6) and ending on the day on which the conference adjourns may not be included in calculating a time period:
(a) during which a levy is valid;
(b) during which a depository institution is required to secure an amount in accordance with Section 59-1-1708;
(c) for making the determination required by Subsection (1); or
(d) for requiring a depository institution to release a portion of an amount to the commission in accordance with Section 59-1-1711.
(8) If a conference described in Subsection (6) does not result in the resolution of the issues related to the determination required by Subsection (1), a delinquent taxpayer may file an action in district court:
(a) within 14 days after the day on which a conference described in Subsection (6) adjourns; and
(b) in the district court located in the county of residence or principal place of business of the delinquent taxpayer.
(9)
(a) Subject to Subsection (9)(b), the time period beginning on the day on which a delinquent taxpayer files an action in accordance with Subsection (8) and ending on the day on which the action becomes final may not be included in calculating a time period:
(i) during which a levy is valid;
(ii) during which a depository institution is required to secure an amount in accordance with Section 59-1-1708;
(iii) for making the determination required by Subsection (1); or
(iv) for requiring a depository institution to release a portion of an amount to the commission in accordance with Section 59-1-1711.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for determining when an action under this section becomes final.
(1) Subject to the other provisions of this section, a depository institution shall release the portion of the amount subject to a levy under this part that the commission may receive in accordance with Section 59-1-1710 from the depository institution.
(2) On the first business day after the day on which the commission provides the notice described in Subsection 59-1-1710(3) to the depository institution, the depository institution shall release the lesser of the following:
(a) the portion of the amount the commission may receive in accordance with Section 59-1-1710 from the depository institution; or
(b) the balance of the delinquent taxpayer's account on the first business day after the day on which the commission provides the notice described in Subsection 59-1-1710(3) to the depository institution minus:
(i) the $10 reimbursement to the depository institution described in Section 59-1-1713; and
(ii) the fees that an account holder agreed to pay the depository institution to process a writ of garnishment in a deposit agreement.
(1) During the time period that a levy the commission imposes on the account of a delinquent taxpayer is valid, the commission may not impose another levy on that account.
(2) The commission may impose a levy in accordance with the procedures and requirements of this part on an account subject to a previous levy under this part if that previous levy is no longer valid.
In addition to any compensation that the commission pays to the depository institution in accordance with an agreement, the commission shall pay the depository institution $10 if the depository institution secures an amount subject to levy under Section 59-1-1708.
(1) If the commission levies an amount in error, the commission shall:
(a) pay the cost of a depository institution charge incurred as a result of the levy; or
(b) if a person other than the commission pays the depository institution charge, reimburse the person for the depository institution charge incurred as a result of the levy.
(2) If a depository institution releases an amount in an account holder's account to the commission in error, the commission shall return the amount to the depository institution by electronic means for deposit into the account holder's account.
(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules prescribing:
(a) what constitutes levying or releasing an amount in error; and
(b) the depository institution charges the commission shall pay.
(1) Before a depository institution secures an amount subject to levy in a delinquent taxpayer's account in accordance with Section 59-1-1708 and except as provided in Subsection (2), a depository institution may not disclose or provide notice to an account holder at the depository institution that the depository institution:
(a) provided information to the commission or the commission provided information to the depository institution in relation to the account holder or the account holder's account in accordance with this part; or
(b) took an action in relation to the account holder or the account holder's account in accordance with this part.
(2) A depository institution may provide information to an account holder describing the depository institution's duties under this part if the information the depository institution provides does not identify that the depository institution:
(a) provides or has provided information to the commission in relation to a particular account holder or account holder's account in accordance with this part; or
(b) takes or has taken an action in relation to a particular account holder or account holder's account in accordance with this part.
A depository institution is not liable to a person for the following if the depository institution acts in good faith:
(1) providing or failing to provide information; or
(2) taking or failing to take an action.
Except for the exchange of information between the commission and a depository institution that is necessary to meet the requirements of this part, information the commission obtains from a depository institution is subject to Section 59-1-403 as if the information had been gained from a return filed with the commission.
As used in this part:
(1) "Participating payee" means the same as that term is defined in 26 U.S.C. Sec. 6050W.
(2) "Payment settlement entity" means the same as that term is defined in 26 U.S.C. Sec. 6050W.
A payment settlement entity that is required to file a return in accordance with 26 U.S.C. Sec. 6050W shall file a return containing the same information with the commission for each participating payee with an address in Utah:
(1) electronically;
(2) in a format approved by the commission; and
(3) within 30 days after the day on which the payment settlement entity is required to file a return with the Internal Revenue Service.
(1) "Agency" means a community reinvestment agency, as defined in Section 17C-1-102.
(2) "Database" means a collection of electronic data to track the information that each TIF entity is required to submit, or the program manager collects, in accordance with Chapter 36, Tax Increment Financing Reporting.
(3) "Program manager" means the same as that term is defined in Section 59-2-1601.
(4) "STATS" means the Statewide Tax Administration and Technology Solutions program, created in Section 59-1-1902.
(5)
(a) "TIF entity" means a political subdivision of the state that intends to receive, receives, or is authorized to receive tax increment for an approved project area.
(b) "TIF entity" includes an agency.
(1) There is created the "Statewide Tax Administration and Technology Solutions" program, administered by the program manager.
(2) STATS services are:
(a) subject to Subsection (3), the hiring of one or more professional appraisers to provide property valuation services within a county of the third, fourth, fifth, or sixth class, as classified in Section 17-60-104;
(b) the performance of the duties related to telecommunications service providers described in Sections 59-2-306.5 and 59-2-307;
(c) the maintenance and enhancement of the statewide property tax system in accordance with Section 59-2-1606;
(d) the coordination with the commission to conduct a study to determine the need for adjustment to the rate of the recovery fee as required by Section 59-2-2002; and
(e) the collation and distribution of the information regarding tax increment financing that a TIF entity provides, or the program manager collects, in accordance with Part 35, Tax Increment Financing Reporting, and a county auditor submits in accordance with Section 17C-1-606.
(3) A professional appraiser hired to provide property valuation services under Subsection (2) shall hold an appraiser's certificate or license from the Division of Real Estate in accordance with Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act.
(4)
(a) The commission shall approve a professional appraiser before the program manager hires the professional appraiser.
(b) The program manager shall determine that hiring a professional appraiser to provide property valuation services promotes the objectives described in Subsection 59-2-1601(1)(a) before hiring a professional appraiser.
(5)
(a) The program manager shall:
(i) create and maintain a database;
(ii) summarize and provide analysis of the electronic data within the database; and
(iii) make the database publicly accessible from the STATS website.
(b) The program manager may:
(i) contract with a third party to create and maintain the database; and
(ii) charge a fee to a TIF entity to cover the program manager's cost of complying with Subsection (5)(a).
(c) The program manager shall determine the amount of the fee described in Subsection (5)(b)(ii), provided that the combined fees charged to all TIF entities may not exceed the actual cost of complying with Subsection (5)(a).
As used in this chapter:
(1)
(a) "Acquisition cost" means any cost required to put an item of tangible personal property into service.
(b) "Acquisition cost" includes:
(i) the purchase price of a new or used item;
(ii) the cost of freight, shipping, loading at origin, unloading at destination, crating, skidding, or any other applicable cost of shipping;
(iii) the cost of installation, engineering, rigging, erection, or assembly, including foundations, pilings, utility connections, or similar costs; and
(iv) sales and use taxes.
(2) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of engaging in dispensing activities directly affecting agriculture or horticulture with an airworthiness certificate from the Federal Aviation Administration certifying the aircraft or rotorcraft's use for agricultural and pest control purposes.
(3) "Air charter service" means an air carrier operation that requires the customer to hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled trip.
(4) "Air contract service" means an air carrier operation available only to customers that engage the services of the carrier through a contractual agreement and excess capacity on any trip and is not available to the public at large.
(5) "Aircraft" means the same as that term is defined in Section 72-10-102.
(6)
(a) "Airline" means an air carrier that:
(i) operates:
(A) on an interstate route; and
(B) on a scheduled basis; and
(ii) offers to fly one or more passengers or cargo on the basis of available capacity on a regularly scheduled route.
(b) "Airline" does not include an:
(i) air charter service; or
(ii) air contract service.
(7) "Assessment roll" or "assessment book" means a permanent record of the assessment of property as assessed by the county assessor and the commission and may be maintained manually or as a computerized file as a consolidated record or as multiple records by type, classification, or categories.
(8) "Base parcel" means a parcel of property that was legally:
(a) subdivided into two or more lots, parcels, or other divisions of land; or
(b)
(i) combined with one or more other parcels of property; and
(ii) subdivided into two or more lots, parcels, or other divisions of land.
(9)
(a) "Certified revenue levy" means a property tax levy that provides an amount of ad valorem property tax revenue equal to the sum of:
(i) the amount of ad valorem property tax revenue to be generated statewide in the previous year from imposing a multicounty assessing and collecting levy, as specified in Section 59-2-1602; and
(ii) the product of:
(A) eligible new growth, as defined in Section 59-2-924; and
(B) the multicounty assessing and collecting levy certified by the commission for the previous year.
(b) For purposes of this Subsection (9), "ad valorem property tax revenue" does not include property tax revenue received by a taxing entity from personal property that is:
(i) assessed by a county assessor in accordance with Part 3, County Assessment; and
(ii) semiconductor manufacturing equipment.
(c) For purposes of calculating the certified revenue levy described in this Subsection (9), the commission shall use:
(i) the taxable value of real property assessed by a county assessor contained on the assessment roll;
(ii) the taxable value of real and personal property assessed by the commission; and
(iii) the taxable year end value of personal property assessed by a county assessor contained on the prior year's assessment roll.
(10) "County-assessed commercial vehicle" means:
(a) any commercial vehicle, trailer, or semitrailer that is not apportioned under Section 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or property in furtherance of the owner's commercial enterprise;
(b) any passenger vehicle owned by a business and used by its employees for transportation as a company car or vanpool vehicle; and
(c) vehicles that are:
(i) especially constructed for towing or wrecking, and that are not otherwise used to transport goods, merchandise, or people for compensation;
(ii) used or licensed as taxicabs or limousines;
(iii) used as rental passenger cars, travel trailers, or motor homes;
(iv) used or licensed in this state for use as ambulances or hearses;
(v) especially designed and used for garbage and rubbish collection; or
(vi) used exclusively to transport students or their instructors to or from any private, public, or religious school or school activities.
(11) "Eligible judgment" means a final and unappealable judgment or order under Section 59-2-1330:
(a) that became a final and unappealable judgment or order no more than 14 months before the day on which the notice described in Section 59-2-919.1 is required to be provided; and
(b) for which a taxing entity's share of the final and unappealable judgment or order is greater than or equal to the lesser of:
(i) $5,000; or
(ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the previous fiscal year.
(12)
(a) "Escaped property" means any property, whether personal, land, or any improvements to the property, that is subject to taxation and is:
(i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed to the wrong taxpayer by the assessing authority;
(ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to comply with the reporting requirements of this chapter; or
(iii) undervalued because of errors made by the assessing authority based upon incomplete or erroneous information furnished by the taxpayer.
(b) "Escaped property" does not include property that is undervalued because of the use of a different valuation methodology or because of a different application of the same valuation methodology.
(13)
(a) "Fair market value" means the amount at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.
(b) For purposes of taxation, "fair market value" shall be determined using the current zoning laws applicable to the property in question, except in cases where there is a reasonable probability of a change in the zoning laws affecting that property in the tax year in question and the change would have an appreciable influence upon the value.
(14) "Geothermal fluid" means water in any form at temperatures greater than 120 degrees centigrade naturally present in a geothermal system.
(15) "Geothermal resource" means:
(a) the natural heat of the earth at temperatures greater than 120 degrees centigrade; and
(b) the energy, in whatever form, including pressure, present in, resulting from, created by, or which may be extracted from that natural heat, directly or through a material medium.
(16)
(a) "Goodwill" means:
(i) acquired goodwill that is reported as goodwill on the books and records that a taxpayer maintains for financial reporting purposes; or
(ii) the ability of a business to:
(A) generate income that exceeds a normal rate of return on assets and that results from a factor described in Subsection (16)(b); or
(B) obtain an economic or competitive advantage resulting from a factor described in Subsection (16)(b).
(b) The following factors apply to Subsection (16)(a)(ii):
(i) superior management skills;
(ii) reputation;
(iii) customer relationships;
(iv) patronage; or
(v) a factor similar to Subsections (16)(b)(i) through (iv).
(c) "Goodwill" does not include:
(i) the intangible property described in Subsection (20)(a) or (b);
(ii) locational attributes of real property, including:
(A) zoning;
(B) location;
(C) view;
(D) a geographic feature;
(E) an easement;
(F) a covenant;
(G) proximity to raw materials;
(H) the condition of surrounding property; or
(I) proximity to markets;
(iii) value attributable to the identification of an improvement to real property, including:
(A) reputation of the designer, builder, or architect of the improvement;
(B) a name given to, or associated with, the improvement; or
(C) the historic significance of an improvement; or
(iv) the enhancement or assemblage value specifically attributable to the interrelation of the existing tangible property in place working together as a unit.
(17) "Governing body" means:
(a) for a county, city, or town, the legislative body of the county, city, or town;
(b) for a special district under Title 17B, Limited Purpose Local Government Entities - Special Districts, the special district's board of trustees;
(c) for a school district, the local board of education;
(d) for a special service district under Title 17D, Chapter 1, Special Service District Act:
(i) the legislative body of the county or municipality that created the special service district, to the extent that the county or municipal legislative body has not delegated authority to an administrative control board established under Section 17D-1-301; or
(ii) the administrative control board, to the extent that the county or municipal legislative body has delegated authority to an administrative control board established under Section 17D-1-301; or
(e) for a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure District Act, the public infrastructure district's board of trustees.
(18) "Gross vehicle weight rating" means the maximum weight a vehicle can carry, including the weight of the vehicle itself, passengers, cargo, fuel, and trailer tongue weight as reported by the manufacturer, except that if a gross vehicle weight rating is not reported by the vehicle's manufacturer, the division may determine the gross vehicle weight rating using the best available information.
(19)
(a) "Improvement" means a building, structure, fixture, fence, or other item that is permanently attached to land, regardless of whether the title has been acquired to the land, if:
(i)
(A) attachment to land is essential to the operation or use of the item; and
(B) the manner of attachment to land suggests that the item will remain attached to the land in the same place over the useful life of the item; or
(ii) removal of the item would:
(A) cause substantial damage to the item; or
(B) require substantial alteration or repair of a structure to which the item is attached.
(b) "Improvement" includes:
(i) an accessory to an item described in Subsection (19)(a) if the accessory is:
(A) essential to the operation of the item described in Subsection (19)(a); and
(B) installed solely to serve the operation of the item described in Subsection (19)(a); and
(ii) an item described in Subsection (19)(a) that is temporarily detached from the land for repairs and remains located on the land.
(c) "Improvement" does not include:
(i) an item considered to be personal property in accordance with rules made under Section 59-2-107;
(ii) a moveable item that is attached to land for stability only or for an obvious temporary purpose;
(iii)
(A) manufacturing equipment and machinery; or
(B) essential accessories to manufacturing equipment and machinery;
(iv) an item attached to the land in a manner that facilitates removal without substantial damage to the land or the item; or
(v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that transportable factory-built housing unit is considered to be personal property under Section 59-2-1503.
(20) "Intangible property" means:
(a) property that is capable of private ownership separate from tangible property, including:
(i) money;
(ii) credits;
(iii) bonds;
(iv) stocks;
(v) representative property;
(vi) franchises;
(vii) licenses;
(viii) trade names;
(ix) copyrights; and
(x) patents;
(b) a low-income housing tax credit;
(c) goodwill; or
(d) a clean or renewable energy tax credit or incentive, including:
(i) a federal renewable energy production tax credit under Section 45, Internal Revenue Code;
(ii) a federal energy credit for qualified renewable electricity production facilities under Section 48, Internal Revenue Code;
(iii) a federal grant for a renewable energy property under American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
(iv) a tax credit under Subsection 59-7-614(5).
(21) "Livestock" means:
(a) a domestic animal;
(b) a fish;
(c) a fur-bearing animal;
(d) a honeybee; or
(e) poultry.
(22) "Low-income housing tax credit" means:
(a) a federal low-income housing tax credit under Section 42, Internal Revenue Code; or
(b) a low-income housing tax credit under Section 59-7-607 or Section 59-10-1010.
(23) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
(24) "Mine" means a natural deposit of either metalliferous or nonmetalliferous valuable mineral.
(25) "Mining" means the process of producing, extracting, leaching, evaporating, or otherwise removing a mineral from a mine.
(26)
(a) "Mobile flight equipment" means tangible personal property that is owned or operated by an air charter service, air contract service, or airline and:
(i) is capable of flight or is attached to an aircraft that is capable of flight; or
(ii) is contained in an aircraft that is capable of flight if the tangible personal property is intended to be used:
(A) during multiple flights;
(B) during a takeoff, flight, or landing; and
(C) as a service provided by an air charter service, air contract service, or airline.
(b)
(i) "Mobile flight equipment" does not include a spare part other than a spare engine that is rotated at regular intervals with an engine that is attached to the aircraft.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining the term "regular intervals."
(27) "Nonmetalliferous minerals" includes oil, gas, coal, salts, sand, rock, gravel, and all carboniferous materials.
(28) "Part-year residential property" means property that is not residential property on January 1 of a calendar year but becomes residential property after January 1 of the calendar year.
(29) "Personal property" includes:
(a) every class of property as defined in Subsection (30) that is the subject of ownership and is not real estate or an improvement;
(b) any pipe laid in or affixed to land whether or not the ownership of the pipe is separate from the ownership of the underlying land, even if the pipe meets the definition of an improvement;
(c) bridges and ferries;
(d) livestock; and
(e) outdoor advertising structures as defined in Section 72-7-502.
(30)
(a) "Property" means property that is subject to assessment and taxation according to its value.
(b) "Property" does not include intangible property as defined in this section.
(31)
(a) "Public utility" means:
(i) the operating property of a railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline company, electrical corporation, sewerage corporation, or heat corporation where the company performs the service for, or delivers the commodity to, the public generally or companies serving the public generally, or in the case of a gas corporation or an electrical corporation, where the gas or electricity is sold or furnished to any member or consumers within the state for domestic, commercial, or industrial use; and
(ii) the operating property of any entity or person defined under Section 54-2-1 except water corporations.
(b) "Public utility" does not include the operating property of a telecommunications service provider.
(32)
(a) Subject to Subsection (32)(b), "qualifying exempt primary residential rental personal property" means household furnishings, furniture, and equipment that:
(i) are used exclusively within a dwelling unit that is the primary residence of a tenant;
(ii) are owned by the owner of the dwelling unit that is the primary residence of a tenant; and
(iii) after applying the residential exemption described in Section 59-2-103, are exempt from taxation under this chapter in accordance with Subsection 59-2-1115(2).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "dwelling unit" for purposes of this Subsection (32) and Subsection (35).
(33) "Real estate" or "real property" includes:
(a) the possession of, claim to, ownership of, or right to the possession of land;
(b) all mines, minerals, and quarries in and under the land, all timber belonging to individuals or corporations growing or being on the lands of this state or the United States, and all rights and privileges appertaining to these; and
(c) improvements.
(34)
(a) "Relationship with an owner of the property's land surface rights" means a relationship described in Subsection 267(b), Internal Revenue Code, except that the term 25% shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code.
(b) For purposes of determining if a relationship described in Subsection 267(b), Internal Revenue Code, exists, the ownership of stock shall be determined using the ownership rules in Subsection 267(c), Internal Revenue Code.
(35)
(a) "Residential property," for purposes of the reductions and adjustments under this chapter, means any property used for residential purposes as a primary residence.
(b) "Residential property" includes:
(i) household furnishings, furniture, and equipment if the household furnishings, furniture, and equipment are:
(A) used exclusively within a dwelling unit that is the primary residence of a tenant; and
(B) owned by the owner of the dwelling unit that is the primary residence of a tenant; and
(ii) if the county assessor determines that the property will be used for residential purposes as a primary residence:
(A) property under construction; or
(B) unoccupied property.
(c) "Residential property" does not include property used for transient residential use.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "dwelling unit" for purposes of Subsection (32) and this Subsection (35).
(36) "Split estate mineral rights owner" means a person that:
(a) has a legal right to extract a mineral from property;
(b) does not hold more than a 25% interest in:
(i) the land surface rights of the property where the wellhead is located; or
(ii) an entity with an ownership interest in the land surface rights of the property where the wellhead is located;
(c) is not an entity in which the owner of the land surface rights of the property where the wellhead is located holds more than a 25% interest; and
(d) does not have a relationship with an owner of the land surface rights of the property where the wellhead is located.
(37)
(a) "State-assessed commercial vehicle" means:
(i) any commercial vehicle, trailer, or semitrailer that operates interstate or intrastate to transport passengers, freight, merchandise, or other property for hire; or
(ii) any commercial vehicle, trailer, or semitrailer that operates interstate and transports the vehicle owner's goods or property in furtherance of the owner's commercial enterprise.
(b) "State-assessed commercial vehicle" does not include vehicles used for hire that are specified in Subsection (10)(c) as county-assessed commercial vehicles.
(38) "Subdivided lot" means a lot, parcel, or other division of land, that is a division of a base parcel.
(39) "Tax area" means a geographic area created by the overlapping boundaries of one or more taxing entities.
(40) "Taxable value" means fair market value less any applicable reduction allowed for residential property under Section 59-2-103.
(41) "Taxing entity" means any county, city, town, school district, special taxing district, special district under Title 17B, Limited Purpose Local Government Entities - Special Districts, or other political subdivision of the state with the authority to levy a tax on property.
(42)
(a) "Tax roll" means a permanent record of the taxes charged on property, as extended on the assessment roll, and may be maintained on the same record or records as the assessment roll or may be maintained on a separate record properly indexed to the assessment roll.
(b) "Tax roll" includes tax books, tax lists, and other similar materials.
(43) "Telecommunications service provider" means the same as that term is defined in Section 59-12-102.
(1) As used in this section:
(a)
(i) "Household" means the association of individuals who live in the same dwelling, sharing the dwelling's furnishings, facilities, accommodations, and expenses.
(ii) "Household" includes married individuals, who are not legally separated, who have established domiciles at separate locations within the state.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining the term "domicile."
(2) All tangible taxable property located within the state shall be assessed and taxed at a uniform and equal rate on the basis of its fair market value, as valued on January 1, unless otherwise provided by law.
(3) Subject to Subsections (4) through (6) and Section 59-2-103.5, for a calendar year, the fair market value of residential property located within the state is allowed a residential exemption equal to a 45% reduction in the value of the property.
(4) Part-year residential property located within the state is allowed the residential exemption described in Subsection (3) if the part-year residential property is used as residential property for 183 or more consecutive calendar days during the calendar year for which the owner seeks to obtain the residential exemption.
(5) No more than one acre of land per residential unit may qualify for the residential exemption described in Subsection (3).
(6)
(a) Except as provided in Subsections (6)(b)(ii) and (iii), a residential exemption described in Subsection (3) is limited to one primary residence per household.
(b) An owner of multiple primary residences located within the state is allowed a residential exemption under Subsection (3) for:
(i) subject to Subsection (6)(a), the primary residence of the owner;
(ii) each residential property that is the primary residence of a tenant; and
(iii) subject to Subsection 59-2-103.5(4), each residential property described in Subsection 59-2-102(35)(b)(ii).
(1) Subject to Subsections (4), (5), (6), and (11), for residential property other than part-year residential property, a county legislative body may adopt an ordinance that requires an owner to file an application with the county board of equalization before the county applies a residential exemption authorized under Section 59-2-103 to the value of the residential property if:
(a) the residential property was ineligible for the residential exemption during the calendar year immediately preceding the calendar year for which the owner is seeking to have the residential exemption applied to the value of the residential property;
(b) an ownership interest in the residential property changes; or
(c) the county board of equalization determines that there is reason to believe that the residential property no longer qualifies for the residential exemption.
(2)
(a) The application described in Subsection (1):
(i) shall be on a form the commission provides by rule and makes available to the counties;
(ii) shall be signed by the owner of the residential property; and
(iii) may not request the sales price of the residential property.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing the contents of the form described in Subsection (2)(a).
(c) For purposes of the application described in Subsection (1), a county may not request information from an owner of a residential property beyond the information in the form provided by the commission under this Subsection (2).
(3)
(a) Regardless of whether a county legislative body adopts an ordinance described in Subsection (1), before a county may apply a residential exemption to the value of part-year residential property, an owner of the property shall:
(i) subject to Subsection (6), file the application described in Subsection (2)(a) with the county board of equalization; and
(ii) include as part of the application described in Subsection (2)(a) a statement that certifies:
(A) the date the part-year residential property became residential property;
(B) that the part-year residential property will be used as residential property for 183 or more consecutive calendar days during the calendar year for which the owner seeks to obtain the residential exemption; and
(C) that the owner, or a member of the owner's household, may not claim a residential exemption for any property for the calendar year for which the owner seeks to obtain the residential exemption, other than the part-year residential property, or as allowed under Section 59-2-103 with respect to the primary residence or household furnishings, furniture, and equipment of the owner's tenant.
(b) If an owner files an application under this Subsection (3) on or after May 1 of the calendar year for which the owner seeks to obtain the residential exemption, the county board of equalization may require the owner to pay an application fee not to exceed $50.
(4) Before a county allows residential property described in Subsection 59-2-102(35)(b)(ii) a residential exemption authorized under Section 59-2-103, an owner of the residential property shall file with the county assessor a written declaration that:
(a) states under penalty of perjury that, to the best of each owner's knowledge, upon completion of construction or occupancy of the residential property, the residential property will be used for residential purposes as a primary residence;
(b) is signed by each owner of the residential property; and
(c) is on a form approved by the commission.
(5)
(a) Before a county allows residential property described in Subsection 59-2-103(6)(b) a residential exemption authorized under Section 59-2-103, an owner of the residential property shall file with the county assessor a written declaration that:
(i) states under penalty of perjury that, to the best of each owner's knowledge, the residential property will be used for residential purposes as a primary residence of a tenant;
(ii) is signed by each owner of the residential property; and
(iii) is on a form approved by the commission.
(b)
(i)
(A) In addition to the declaration, a county assessor may request from an owner a current lease agreement signed by the tenant.
(B) If the lease agreement is insufficient for a county assessor to make a determination about eligibility for a residential exemption, a county assessor may request a copy of the real estate insurance policy for the property.
(C) If the real estate insurance policy is insufficient for a county assessor to make a determination about eligibility for a residential exemption, a county assessor may request a copy of a filing from the most recent federal tax return showing that the owner had profit or loss from the residential property as a rental.
(ii) A county assessor may not request information from an owner's tenant.
(6)
(a) Except as provided in Subsection (6)(b), the county board of equalization may not accept from a property owner an application to receive a residential exemption authorized under Section 59-2-103 for the property owner's primary residence that is filed after the later of:
(i) September 15 of the calendar year for which the property owner seeks to receive the residential exemption; or
(ii) the last day of a 45-day period beginning on the day on which the county auditor provides the notice under Section 59-2-919.1.
(b)
(i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing for circumstances under which the county board of equalization is required to accept a property owner's application for a residential exemption authorized under Section 59-2-103 that is filed after the time period described in Subsection (6)(a).
(ii) The commission shall report to the Revenue and Taxation Interim Committee on any rules implemented under this Subsection (6)(b).
(7) Except as provided in Subsection (8), if a property owner no longer qualifies to receive a residential exemption authorized under Section 59-2-103 for the property owner's primary residence, the property owner shall:
(a) file a written statement with the county board of equalization of the county in which the property is located:
(i) on a form provided by the county board of equalization; and
(ii) notifying the county board of equalization that the property owner no longer qualifies to receive a residential exemption authorized under Section 59-2-103 for the property owner's primary residence; and
(b) declare on the property owner's individual income tax return under Chapter 10, Individual Income Tax Act, for the taxable year for which the property owner no longer qualifies to receive a residential exemption authorized under Section 59-2-103 for the property owner's primary residence, that the property owner no longer qualifies to receive a residential exemption authorized under Section 59-2-103 for the property owner's primary residence.
(8) A property owner is not required to file a written statement or make the declaration described in Subsection (7) if the property owner:
(a) changes primary residences;
(b) qualified to receive a residential exemption authorized under Section 59-2-103 for the residence that was the property owner's former primary residence; and
(c) qualifies to receive a residential exemption authorized under Section 59-2-103 for the residence that is the property owner's current primary residence.
(9) Subsections (2) through (8) do not apply to qualifying exempt primary residential rental personal property.
(10)
(a) Subject to Subsection (11), for the first calendar year in which a property owner qualifies to receive a residential exemption under Section 59-2-103, a county assessor may require the property owner to file a signed statement described in Section 59-2-306.
(b) Subject to Subsection (11) and notwithstanding Section 59-2-306, for a calendar year after the calendar year described in Subsection (10)(a) in which a property owner qualifies for an exemption authorized under Section 59-2-1115 for qualifying exempt primary residential rental personal property, a signed statement described in Section 59-2-306 with respect to the qualifying exempt primary residential rental personal property may only require the property owner to certify, under penalty of perjury, that the property owner qualifies for the exemption authorized under Section 59-2-1115.
(11)
(a) After an ownership interest in residential property changes, the county assessor shall:
(i) notify the owner of the residential property that the owner is required to submit a written declaration described in Subsection (11)(d) within 90 days after the day on which the county assessor mails the notice under this Subsection (11)(a); and
(ii) provide the owner of the residential property with the form described in Subsection (11)(e) to make the written declaration described in Subsection (11)(d).
(b) A county assessor is not required to provide a notice to an owner of residential property under Subsection (11)(a) if the situs address of the residential property is the same as any one of the following:
(i) the mailing address of the residential property owner or the tenant of the residential property;
(ii) the address listed on the:
(A) residential property owner's driver license; or
(B) tenant of the residential property's driver license; or
(iii) the address listed on the:
(A) residential property owner's voter registration; or
(B) tenant of the residential property's voter registration.
(c) A county assessor is not required to provide a notice to an owner of residential property under Subsection (11)(a) if:
(i) the owner is using a post office box or rural route box located in the county where the residential property is located; and
(ii) the residential property is located in a county of the fourth, fifth, or sixth class.
(d) An owner of residential property that receives a notice described in Subsection (11)(a) shall submit a written declaration to the county assessor under penalty of perjury certifying the information contained in the form described in Subsection (11)(e).
(e) The written declaration required by Subsection (11)(d) shall be:
(i) signed by the owner of the residential property; and
(ii) in substantially the following form:
"Residential Property Declaration
This form must be submitted to the County Assessor's office where your new residential property is located within 90 days of receipt. Failure to do so will result in the county assessor taking action that could result in the withdrawal of the primary residential exemption from your residential property.
Residential Property Owner Information
Name(s):__________________________________________________
Home Phone:_______________________________________________
Work Phone:_______________________________________________
Mailing Address:____________________________________________
Residential Property Information
Physical Address:___________________________________________
Certification
"Part-year residential property" means owned property that is not residential property on January 1 of a calendar year but becomes residential property after January 1 of the calendar year.
Yes No
A part-year residential property occupied for 183 or more consecutive calendar days in a calendar year by the owner(s) or a tenant is eligible for the exemption.
YesNo
If a property owner or a property owner's spouse claims a residential exemption under Utah Code Ann. 59-2-103 for property in this state that is the primary residence of the property owner or the property owner's spouse, that claim of a residential exemption shall be considered in determining whether the property owner and the property owner's spouse have domicile in Utah for income tax purposes.
Signature
Under penalties of perjury, I declare to the best of my knowledge and belief, this declaration and accompanying pages are true, correct, and complete.
__________________(Owner signature) _____________________Date (mm/dd/yyyy)
__________________(Owner printed name)"
(f) For purposes of a written declaration described in this Subsection (11), a county may not request information from a property owner beyond the information described in the form provided in Subsection (11)(e).
(g)
(i) If, after receiving a written declaration filed under Subsection (11)(d), the county determines that the property has been incorrectly qualified or disqualified to receive a residential exemption, the county shall:
(A) redetermine the property's qualification to receive a residential exemption; and
(B) notify the claimant of the redetermination and the county's reason for the redetermination.
(ii) The redetermination provided in Subsection (11)(g)(i)(A) is final unless:
(A) except as provided in Subsection (11)(g)(iii), the property owner appeals the redetermination to the board of equalization in accordance with Subsection 59-2-1004(2); or
(B) the county determines that the property is eligible to receive a primary residential exemption as part-year residential property.
(iii) The board of equalization may not accept an appeal that is filed after the later of:
(A) September 15 of the current calendar year; or
(B) the last day of the 45-day period beginning on the day on which the county auditor provides the notice under Section 59-2-919.1.
(h)
(i) If a residential property owner fails to file a written declaration required by Subsection (11)(d), the county assessor shall mail to the owner of the residential property a notice that:
(A) the property owner failed to file a written declaration as required by Subsection (11)(d); and
(B) the property owner will no longer qualify to receive the residential exemption authorized under Section 59-2-103 for the property that is the subject of the written declaration if the property owner does not file the written declaration required by Subsection (11)(d) within 30 days after the day on which the county assessor mails the notice under this Subsection (11)(h)(i).
(ii) If a property owner fails to file a written declaration required by Subsection (11)(d) after receiving the notice described in Subsection (11)(h)(i), the property owner no longer qualifies to receive the residential exemption authorized under Section 59-2-103 in the calendar year for the property that is the subject of the written declaration unless:
(A) except as provided in Subsection (11)(h)(iii), the property owner appeals the redetermination to the board of equalization in accordance with Subsection 59-2-1004(2); or
(B) the county determines that the property is eligible to receive a primary residential exemption as part-year residential property.
(iii) The board of equalization may not accept an appeal that is filed after the later of:
(A) September 15 of the current calendar year; or
(B) the last day of the 45-day period beginning on the day on which the county auditor provides the notice under Section 59-2-919.1.
(iv) A property owner that is disqualified to receive the residential exemption under Subsection (11)(h)(ii) may file an application described in Subsection (1) to determine whether the owner is eligible to receive the residential exemption.
(i) The requirements of this Subsection (11) do not apply to a county assessor in a county that adopts and enforces an ordinance described in Subsection (1).
(12) A county assessor may use driver license information disclosed by the Driver License Division in accordance with Subsections 53-3-109(3)(a)(iv) and (e) only for purposes of verifying a property owner's eligibility to receive a residential exemption.
(1) The situs of all taxable property is the tax area where it is located.
(2) Personal property, unless assessed by the commission, shall be assessed in the tax area where the owner is domiciled in this state on January 1, unless the owner demonstrates to the satisfaction of the county assessor that the personal property is usually kept in a tax area other than that of the domicile of the owner, in which case that property shall be assessed in the other tax area.
(3) Land shall be assessed in parcels or subdivisions not exceeding 640 acres each, and tracts of land containing more than 640 acres, which have been sectioned by the United States government, shall be assessed by sections or fractions of sections.
(4) The following property shall be listed and assessed in the county where the property is located:
(a) public utilities, when operated wholly in one county;
(b) bridges and ferries which are not public utilities, when operated wholly in one county;
(c) electric light lines and similar improvements; and
(d) canals, ditches, and flumes when separately taxable.
Public utilities, and bridges and ferries not public utilities, when operated wholly in one county, and electric light lines and similar improvements, canals, ditches, and flumes when separately taxable, shall be listed and assessed in the county in which the property is located.
The commission shall make rules:
(1) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(2) defining classes of items considered to be personal property for purposes of this chapter;
(3) defining items that fall into the classes established under Subsection (2); and
(4) defining any class or item as personal property if the commission defined that class or item as personal property prior to January 1, 2004, by:
(a) a rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) a published decision of the commission; or
(c) an official schedule published by the commission.
(1) For an appeal to the commission involving the valuation or equalization of real property assessed under Part 2, Assessment of Property, the party carrying the burden of proof shall demonstrate:
(a) substantial error in the original assessed value; and
(b) a sound evidentiary basis to support the value the party requests.
(2)
(a) For an appeal to the county board of equalization or the commission involving the valuation or equalization of real property assessed under Part 3, County Assessment, the party carrying the burden of proof shall demonstrate:
(i) except as provided in Subsection (2)(b), substantial error in:
(A) the original assessed value in an appeal to the county board of equalization; or
(B) the value set by the county board of equalization in an appeal to the commission; and
(ii) a sound evidentiary basis to support the value the party requests.
(b) The party carrying the burden of proof does not have to show substantial error as required by Subsection (2)(a)(i) if the party is requesting:
(i) the original assessed value in an appeal to the county board of equalization; or
(ii) the value set by the county board of equalization in an appeal to the commission.
(3) For property assessed under Part 2, Assessment of Property, the commission has the burden of proof, if the commission is a party to the appeal that asserts that the fair market value of the assessed property is greater than the original assessed value for that calendar year.
(4) For property assessed under Part 3, County Assessment, the following shall carry the burden of proof before a county board of equalization or the commission:
(a) the county assessor or the county board of equalization that is a party to the appeal has the burden of proof to support the value the county assessor or the county board of equalization requests; and
(b) the taxpayer that is a party to the appeal has the burden of proof to support the value the taxpayer requests.
(5) A preponderance of the evidence suffices to sustain the burden for all parties.
(1) This section applies to an appeal to the county board of equalization or the commission involving the valuation or equalization of real property that is eligible for a deferral under Section 59-2a-801 for the calendar year that begins on January 1, 2023.
(2)
(a) The party carrying the burden of proof shall demonstrate:
(i) except as provided in Subsection (2)(b), substantial error in:
(A) the adjusted value set by the county assessor in accordance with Section 59-2-303.3 in an appeal to the county board of equalization; or
(B) the value set by the county board of equalization in an appeal to the commission; and
(ii) a sound evidentiary basis to support the value the party requests.
(b) The party carrying the burden of proof does not have to show substantial error as required by Subsection (2)(a)(i) if the party is requesting:
(i) the adjusted value in an appeal to the county board of equalization; or
(ii) the value set by the county board of equalization in an appeal to the commission.
(3) The following shall carry the burden of proof:
(a) the county assessor or the county board of equalization that is a party to the appeal has the burden of proof to support the value the county assessor or the county board of equalization requests; and
(b) the taxpayer that is a party to the appeal has the burden of proof to support the value the taxpayer requests.
(1)
(a) Except as provided in Subsection (1)(b), if a governmental entity is required under this chapter to send information or notice to a person, the governmental entity shall send the information or notice to:
(i) the person required under the applicable provision of this chapter; and
(ii) each person designated in accordance with Subsection (2) by the person described in Subsection (1)(a)(i).
(b) If a governmental entity is required under Section 59-2-919, 59-2-919.1, or 59-2-1317 to send information or notice to a person, the governmental entity shall send the information or notice to:
(i) the person required under the applicable section; or
(ii) one person designated in accordance with Subsection (2) by the person described in Subsection (1)(b)(i).
(2)
(a) A person to whom a governmental entity is required under this chapter to send information or notice may designate a person to receive the information or notice in accordance with Subsection (1).
(b) To make a designation described in Subsection (2)(a), the person shall submit a written request to the governmental entity on a form prescribed by the commission.
(3) A person who makes a designation described in Subsection (2) may revoke the designation by submitting a written request to the governmental entity on a form prescribed by the commission.
(1)
(a) By May 1 of each year, the following property, unless otherwise exempt under the Utah Constitution or under Part 11, Exemptions, shall be assessed by the commission at 100% of fair market value, as valued on January 1, in accordance with this chapter:
(i) except as provided in Subsection (2), all property that operates as a unit across county lines, if the values must be apportioned among more than one county or state;
(ii) all property of public utilities;
(iii) subject to Subsection (1)(b), all mobile flight equipment of an airline, air charter service, and air contract service;
(iv) all geothermal fluids and geothermal resources;
(v) all mines and mining claims except in cases, as determined by the commission, where the mining claims are used for other than mining purposes, in which case the value of mining claims used for other than mining purposes shall be assessed by the assessor of the county in which the mining claims are located; and
(vi) all machinery used in mining, all property or surface improvements upon or appurtenant to mines or mining claims. For the purposes of assessment and taxation, all processing plants, mills, reduction works, and smelters that are primarily used by the owner of a mine or mining claim for processing, reducing, or smelting minerals taken from a mine or mining claim shall be considered appurtenant to that mine or mining claim, regardless of actual location.
(b)
(i) For purposes of Subsection (1)(a)(iii), if the operating property of an airline, air charter service, or air contract service includes an aircraft, the commission shall assess the aircraft only if the aircraft operates under 14 C.F.R. Part 121, with a maximum takeoff weight exceeding 35,000 pounds.
(ii) Except as provided in Subsection (1)(a)(iii), property in the state owned by an airline, air charter service, or air contract service shall be assessed by the local county assessor.
(2)
(a) The commission may not assess property owned by a telecommunications service provider.
(b) The commission shall assess and collect property tax on state-assessed commercial vehicles at the time of original registration or annual renewal.
(i) The commission shall assess and collect property tax annually on state-assessed commercial vehicles that are registered pursuant to Section 41-1a-222 or 41-1a-228.
(ii) State-assessed commercial vehicles brought into the state that are required to be registered in Utah shall, as a condition of registration, be subject to ad valorem tax unless all property taxes or fees imposed by the state of origin have been paid for the current calendar year.
(iii) Real property, improvements, equipment, fixtures, or other personal property in this state owned by the company shall be assessed separately by the local county assessor.
(iv) The commission shall adjust the value of state-assessed commercial vehicles as necessary to comply with 49 U.S.C. Sec. 14502, and the commission shall direct the county assessor to apply the same adjustment to any personal property, real property, or improvements owned by the company and used directly and exclusively in their commercial vehicle activities.
(3)
(a) The method for determining the fair market value of productive mining property is the capitalized net revenue method or any other valuation method the commission believes, or the taxpayer demonstrates to the commission's satisfaction, to be reasonably determinative of the fair market value of the mining property.
(b) The commission shall determine the rate of capitalization applicable to mines, consistent with a fair rate of return expected by an investor in light of that industry's current market, financial, and economic conditions.
(c) In no event may the fair market value of the mining property be less than the fair market value of the land, improvements, and tangible personal property upon or appurtenant to the mining property.
(4)
(a) As used in this Subsection (4), "aircraft pricing guide" means a nationally recognized publication that assigns value estimates for individual commercial aircraft that are:
(i) identified by year, make, and model; and
(ii) in average condition typical for the aircraft's type and vintage.
(b)
(i) Except as provided in Subsection (4)(d), the commission shall use an aircraft pricing guide to determine the fair market value of aircraft assessed under this part.
(ii) The commission shall use the Airliner Price Guide as the aircraft pricing guide, except that:
(A) if the Airliner Price Guide is no longer published or the commission determines that another aircraft pricing guide more reasonably reflects the fair market value of aircraft, the commission, after consulting with the airlines operating in the state, shall select an alternative aircraft pricing guide;
(B) if an aircraft is not listed in the Airliner Price Guide, the commission shall use the Aircraft Bluebook Price Digest as the aircraft pricing guide; and
(C) if the Aircraft Bluebook Price Digest is no longer published or the commission determines that another aircraft pricing guide more reasonably reflects the fair market value of aircraft, the commission, after consulting with the airlines operating in the state, shall select an alternative aircraft pricing guide.
(c)
(i) The commission shall make a fleet adjustment in accordance with Subsection (4)(c)(ii) or (iii) to assess the fair market value of a fleet of aircraft or a fleet of the same aircraft type that is used as part of the mobile flight equipment of an airline, air charter service, or air contract service.
(ii) If the aircraft pricing guide provides for a fleet adjustment to determine the fair market value of the fleet of aircraft or the fleet of the same aircraft type, the commission shall make the fleet adjustment in the manner provided in the aircraft pricing guide.
(iii) If the aircraft pricing guide does not provide for a fleet adjustment to determine the fair market value of the fleet of aircraft or the fleet of the same aircraft type, the commission shall make the adjustment the commission determines most reasonably reflects the fair market value of the fleet of aircraft or fleet of the same aircraft type.
(d) The commission may use an alternative method for valuing aircraft of an airline, air charter service, or air contract service if the commission:
(i) has clear and convincing evidence that the aircraft values reflected in the aircraft pricing guide do not reasonably reflect fair market value of the aircraft; and
(ii) cannot identify an alternative aircraft pricing guide from which the commission may determine aircraft value.
(5) Immediately following the assessment, the commission shall send, by certified mail, notice of the assessment to the owner or operator of the assessed property and the assessor of the county in which the property is located.
(6) The commission may consult with a county in valuing property in accordance with this part.
(7) The local county assessor shall separately assess property that is assessed by the unitary method if the commission determines that the property:
(a) is not necessary to the conduct of the business; and
(b) does not contribute to the income of the business.
(1)
(a) A person, or an officer or agent of that person, owning or operating property described in Subsection (1)(b) shall, on or before March 1 of each year, file with the commission a statement:
(i) signed and sworn to by the person, officer, or agent;
(ii) showing in detail all real property and tangible personal property located in the state that the person owns or operates;
(iii) containing the number of miles of taxable tangible personal property in each county:
(A) that the person owns or operates; and
(B) as valued on January 1 of the year for which the person, officer, or agent is furnishing the statement; and
(iv) containing any other information the commission requires.
(b) Subsection (1)(a) applies to:
(i) the following property located in the state:
(A) a public utility;
(B) mobile flight equipment of an airline;
(C) mobile flight equipment of an air charter service; or
(D) mobile flight equipment of an air contract service; or
(ii) the following property located in more than one county in the state:
(A) a pipeline company;
(B) a power company;
(C) a canal company;
(D) an irrigation company; or
(E) a telephone company.
(c)
(i) The commission may allow an extension for filing the statement under Subsection (1)(a) for a time period not exceeding 30 days, unless the commission determines that extraordinary circumstances require a longer period of extension.
(ii) The commission shall grant a person, or an officer or agent of that person, an extension for filing the statement under Subsection (1)(a) for a time period not exceeding 15 days if:
(A) a federal regulatory agency requires the taxpayer to file a statement that contains the same information as the statement under Subsection (1)(a); and
(B) the person, or an officer or agent of that person, requests the commission to grant the extension.
(2) The commission shall assess and list the property described in Subsection (1)(b) using the best information obtainable by the commission if a person, or an officer or agent of that person, fails to file the statement required under Subsection (1)(a) on or before the later of:
(a) March 1; or
(b) if the commission allows an extension under Subsection (1)(c) for filing the statement, the day after the last day of the extension period.
(3)
(a) Except as provided in Subsection (3)(c), the commission shall assess a person a penalty as provided in Subsection (3)(b), if the person, or an officer or agent of that person, fails to file:
(i) the statement required under Subsection (1)(a) on or before the later of:
(A) March 1; or
(B) if the commission allows an extension under Subsection (1)(c) for filing the statement, the day after the last day of the extension period; or
(ii) any other information the commission determines to be necessary to:
(A) establish valuations for assessment purposes; or
(B) apportion an assessment.
(b) The penalty described in Subsection (3)(a) is an amount equal to the greater of:
(i) 10% of the person's estimated tax liability under this chapter for the current calendar year not to exceed $50,000; or
(ii) $100.
(c)
(i) Notwithstanding Subsections (3)(a) and (4), the commission may waive, reduce, or compromise a penalty imposed under this section if the commission finds there are reasonable grounds for the waiver, reduction, or compromise.
(ii) If the commission waives, reduces, or compromises a penalty under Subsection (3)(c)(i), the commission shall make a record of the grounds for waiving, reducing, or compromising the penalty.
(4) The county treasurer shall collect the penalty imposed under Subsection (3) as provided in Section 59-2-1308.
(5) A person subject to a penalty under Subsection (3) may appeal the penalty according to procedures and requirements of Title 63G, Chapter 4, Administrative Procedures Act.
(1) Each year the commission shall prepare a record of assessment of railroads and rail car companies. The record shall include:
(a) the name of the person to whom the property was assessed;
(b) the number of miles in the state;
(c) the number of miles in each county;
(d) the total assessment of that property; and
(e) the amount of the apportionment of the total assessment to each county.
(2) At least quarterly, the commission shall prepare a record of assessment of state-assessed commercial vehicles.
(3) The record of the assessment and the information upon which the assessments and apportionments are made are available for review upon request by a county assessor.
(1) Each year, the commission shall prepare a record of assessment of the following companies:
(a) public utility companies;
(b) airlines;
(c) air charter services; and
(d) air contract services.
(2) The record of assessment under Subsection (1) shall include:
(a) the name of each person engaged in business within the state in a company described in Subsection (1);
(b) for each company described in Subsection (1), the total value of all of the company's tangible properties subject to assessment by the commission; and
(c) any other information as determined by the commission.
(3) At the request of a county assessor, the commission shall provide to the county assessor:
(a) the record of assessment described in Subsection (1); and
(b) the information upon which the assessments and apportionments contained in the record of assessment are made.
(1) Each year the commission shall prepare a record of assessment of mines. The record shall include the following information for all mines subject to assessment by the commission:
(a) the owner of the mine;
(b) the name and description and location of the mine;
(c) the county in which the mine is located;
(d) the value of the mine;
(e) the value of the machinery;
(f) the value of supplies and other personal property;
(g) the value of improvements; and
(h) the value of machinery, property, and surface improvements having a value separate and independent of the mines or mining claims assessed by the commission, and the names of the owners of the machinery, property, or surface improvements, together with any other information determined by the commission.
(2) The record of the assessment and the information upon which the assessments and apportionments are calculated are available for review upon request by a county assessor.
(1)
(a) A person, or an officer or agent of that person, owning or operating property described in Subsection (1)(b) shall file with the commission, on a form prescribed by the commission, a sworn statement on or before March 1 of each year:
(i) showing in detail all real property and tangible personal property located in the state that the person owns or operates; and
(ii) containing any other information the commission requires.
(b) Subsection (1)(a) applies to the following property:
(i) a mine;
(ii) a mining claim; or
(iii) a valuable mineral deposit, including lands containing coal or hydrocarbons.
(c)
(i) The commission may allow an extension for filing the statement under Subsection (1)(a) for a time period not exceeding 30 days, unless the commission determines that extraordinary circumstances require a longer period of extension.
(ii) The commission shall grant a person, or an officer or agent of that person, an extension for filing the statement under Subsection (1)(a) for a time period not exceeding 15 days if:
(A) a federal regulatory agency requires the taxpayer to file a statement that contains the same information as the statement under Subsection (1)(a); and
(B) the person, or an officer or agent of that person, requests the commission to grant the extension.
(2) The commission shall assess and list the property described in Subsection (1)(b) using the best information obtainable by the commission if a person, or an officer or agent of that person, fails to file the statement required under Subsection (1)(a) on or before the later of:
(a) March 1; or
(b) if the commission allows an extension under Subsection (1)(c) for filing the statement, the day after the last day of the extension period.
(3)
(a) Except as provided in Subsection (3)(c), the commission shall assess a person a penalty as provided in Subsection (3)(b), if the person, or an officer or agent of that person, fails to file:
(i) the statement required under Subsection (1)(a) on or before the later of:
(A) March 1; or
(B) if the commission allows an extension under Subsection (1)(c) for filing the statement, the day after the last day of the extension period; or
(ii) any other information the commission determines to be necessary to:
(A) establish valuations for assessment purposes; or
(B) apportion an assessment.
(b) The penalty described in Subsection (3)(a) is an amount equal to the greater of:
(i) 10% of the person's estimated tax liability under this chapter for the current calendar year not to exceed $50,000; or
(ii) $100.
(c)
(i) Notwithstanding Subsections (3)(a) and (4), the commission may waive, reduce, or compromise a penalty imposed under this section if the commission finds there are reasonable grounds for the waiver, reduction, or compromise.
(ii) If the commission waives, reduces, or compromises a penalty under Subsection (3)(c)(i), the commission shall make a record of the grounds for waiving, reducing, or compromising the penalty.
(4) The county treasurer shall collect the penalty imposed under Subsection (3) as provided in Section 59-2-1308.
(5) A person subject to a penalty under Subsection (3) may appeal the penalty according to the procedures and requirements of Title 63G, Chapter 4, Administrative Procedures Act.
The duties of the commission relative to the following shall be the same as provided for the assessment of public utilities:
(1) the assessment of mines, mining claims, and mining property;
(2) the statements and returns to be made; and
(3) the equalization of the assessments described in this section.
Nothing in this chapter may be construed to exempt from taxation any supplies used in mills, reduction works, or mines, or any improvements, machinery, or other property placed upon or used in connection with a mine or mining claim, which has a value separate and independent of the mine or mining claim.
(1) The tax mentioned in the preceding sections on mines, mining claims, and mining property shall be collected, and payment enforced, in the manner provided for the collection and enforcement of other taxes, except as provided in Subsection (3).
(2) Every tax is a lien upon the mine or mining claim and related mining machinery and improvements. The lien attaches on January 1. Sale of property for delinquent taxes may be made as provided for the sale of real estate for delinquent taxes, except as set forth below.
(3)
(a) If oil, gas, or other hydrocarbon wells or fields belonging to multiple owners are operated as a unit, the owner of each fractional interest in the unit is liable for the same proportion of the tax assessed against the total unit that the owner's interest bears to the total interest in the unit.
(b) The unit operator shall be notified of the assessment against the entire unit as provided in Section 59-2-201. The operator shall collect the applicable tax from the owner of each fractional interest, and remit the tax assessed against the entire unit. The operator shall also file the statement described in Section 59-2-207 for the entire unit. The commission may require that the statement include a listing of all fractional interest owners and their interests.
(c) The unit operator may, in a manner provided by the commission, deduct and withhold from royalty payments, or from any other payments due to any fractional interest owner, the amount of the tax owed by the fractional interest owner.
(d) If the unit operator fails to collect the applicable tax from the fractional interest owners and remit the tax as provided, a penalty shall be imposed against the operator by the county treasurer of the county in which the unit is located. The penalty is equal to the amount of the tax due and owing the county for the tax period in question from that unit.
(e) Failure of the unit operator to collect and remit the tax does not preclude tax authorities from utilizing regular collection and enforcement remedies and procedures against the owner of any fractional interest to collect the tax owed by the owner. A nonoperating owner is not subject to penalty or interest upon the tax owed unless the owner fails to remit the tax within 20 days after notification by the county treasurer of the default of the operator.
(f) As used in this section, "unit" means any single oil, gas, or other hydrocarbon well or field which has multiple ownership, or any combination of oil, gas, or other hydrocarbon wells, fields, and properties consolidated into a single operation, whether by a formal agreement or otherwise. "Owner" means the holder of any interest or interests in those properties or units, including royalty interests.
(1) The commission, in order to ensure the payment and collection of an ad valorem property tax imposed against uranium and vanadium mining properties, may require the owner or the person engaged in mining the properties to deposit a security with the commission in an amount determined by the commission. The security shall be deposited with the commission within 30 days of proper notice by the commission that the security is required. Notice by registered mail to the last-known address as shown in the records of the commission constitutes proper notice.
(2) The security may be sold by the commission at public sale in order to recover any tax, interest, or penalty due. Notice of the sale may be personally served upon the person who deposited the securities, or served by registered mail sent to the last-known address as shown in the records of the commission. Following the sale, any surplus amount shall be returned to the person who deposited the security.
(3) If the security is not deposited on or before the due date, the commission may declare the tax for that year and any preceding year, if unpaid, in jeopardy, and may proceed to collect the tax under this chapter.
(4) Following recourse to the security by the commission, or to jeopardy proceedings under Part 13, Collection of Taxes, the person engaged in using the properties shall deposit any new security required by the commission prior to resuming operations.
(5) The ad valorem tax imposed upon metalliferous mining claims and properties is a personal obligation of the owner or operator of the affected claims or properties, and the obligations are not satisfied until paid in full. If a mining claim or property is sold at the tax sale under Part 13, Collection of Taxes, the sale does not extinguish the personal obligation of the owner or operator of the claim or property. The personal obligation continues to exist against the owner or operator of the claim or property until paid or otherwise satisfied. Other real or personal property of the owner or operator may be seized or sold to satisfy the personal obligation. This remedy is not exclusive but is in addition to any other remedy provided by law for the collection of these taxes. Nothing contained in this section abrogates existing powers of the commission or a county legislative body to compromise or adjust the assessment of taxes.
(1) The commission shall prepare and furnish to each county an assessment roll in which the county assessor of each county shall list all property within the county.
(2) In counties using computerized listings, the county assessor shall furnish the information required under Subsection (1) pursuant to procedures established by the commission.
(1) The commission shall furnish the assessor of each county with blank forms of statements provided under Section 59-2-306, affixing to the form a statement substantially as follows to be signed by the party completing the form:
I, ____, do swear that I am a resident of the county of ____, and that my post office address is ____; that the above list contains a full and correct statement of all property subject to taxation, which I, or any firm of which I am a member, or any corporation, association, or company of which I am president, cashier, secretary, or managing agent, owned, claimed, possessed, or controlled at 12 o'clock midnight on the preceding January 1 and which is not already assessed this year.
(2) The signed statement made on behalf of a firm or corporation shall state the principal place of business of the firm or corporation, and in other respects shall conform substantially to the preceding form.
On or before January 15 of each year the chief executive officer of any agency of the state shall make and transmit to the commission certified lists of lands sold by the state for which certificates of purchase or patents have been issued during the preceding year, giving a description by divisions or subdivisions or lots and blocks, together with the names of the purchasers or patentees, and in the case of lands sold by the state upon contract the amount of the purchase price and the total amount paid or due on the preceding January 1.
The commission shall furnish the county assessors, annually, by February 1:
(1) a list of all patents of lands, except patents for mining locations, and all lands for which receivers' final receipts have been issued for which patents have not been issued, not previously reported;
(2) a certified list of all lands that have been sold by the state for which certificates of purchase or patents have been issued during the preceding year, with a description, together with the names of the purchasers or patentees; and
(3) a list containing a description of the lands sold by the state during the preceding year upon contracts for purchase, together with the names and addresses of the purchasers where known, the amount of the purchase price, and the total amount paid or due on the preceding January 1.
(1) Any escaped property may be assessed by the original assessing authority at any time as far back as five years prior to the time of discovery, in which case the assessing authority shall enter the assessments on the tax rolls and follow the procedures established under Part 13, Collection of Taxes.
(2) Any property found to be willfully concealed, removed, transferred, or misrepresented by its owner or agent in order to evade taxation is subject to a penalty equal to the tax on its value, and neither the penalty nor assessment may be reduced by the county board of equalization or the commission.
The county assessor shall assess all property located within the county which is not required by law to be assessed by the commission.
(1) As used in this section:
(a) "Association" means the same as that term is defined in Section 57-8a-102.
(b) "Common area" means:
(i) for a condominium project subject to Title 57, Chapter 8, Condominium Ownership Act, the following property, unless otherwise provided in the declaration or lawful amendments to the declaration:
(A) the land included within the condominium project, whether leasehold or in fee simple;
(B) the foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors, lobbies, stairs, stairways, fire escapes, entrances, and exits of the building;
(C) the basements, yards, gardens, parking areas, and storage spaces;
(D) the premises for lodging of janitors or persons in charge of the property;
(E) installations of central services such as power, light, gas, hot and cold water, heating, refrigeration, air conditioning, and incinerating;
(F) the elevators, tanks, pumps, motors, fans, compressors, ducts, and in general all apparatus and installations existing for common use;
(G) community and commercial facilities as may be provided for in the declaration; and
(H) all other parts of the property necessary or convenient to the property's existence, maintenance, and safety or normally in common use; and
(ii) for an association subject to Title 57, Chapter 8a, Community Association Act, property that the association:
(A) owns;
(B) maintains;
(C) repairs; or
(D) administers.
(c) "Condominium project" means the same as that term is defined in Section 57-8-3.
(d) "Declaration" means the same as that term is defined in Section 57-8-3.
(2) In assessing the fair market value of property subject to a conservation easement under Title 57, Chapter 18, Land Conservation Easement Act, a county assessor shall consider factors relating to the property and neighboring property that affect the fair market value of the property being assessed, including:
(a) value that transfers to neighboring property because of the presence of a conservation easement on the property being assessed;
(b) practical and legal restrictions on the development potential of the property because of the presence of the conservation easement;
(c) the absence of neighboring property similarly subject to a conservation easement to provide a basis for comparing values between properties; and
(d) any other factor that causes the fair market value of the property to be affected because of the presence of a conservation easement.
(3)
(a) In assessing the fair market value of a golf course or hunting club, a county assessor shall consider factors relating to the golf course or hunting club and neighboring property that affect the fair market value of the golf course or hunting club, including:
(i) value that transfers to neighboring property because of the presence of the golf course or hunting club;
(ii) practical and legal restrictions on the development potential of the golf course or hunting club; and
(iii) the history of operation of the golf course or hunting club and the likelihood that the present use will continue into the future.
(b) The valuation method a county assessor may use in determining the fair market value of a golf course or hunting club includes:
(i) the cost approach;
(ii) the income capitalization approach; and
(iii) the sales comparison approach.
(4)
(a) When a plat contains a common area:
(i) for purposes of assessment, each parcel that the plat creates has an equal ownership interest in the common area within the plat, unless the plat or an accompanying recorded document indicates a different division of interest for assessment purposes; and
(ii) each instrument describing a parcel on the plat by the parcel's identifying plat number implicitly includes the ownership interest in the common area, even if that ownership interest is not explicitly stated in the instrument.
(b) Except as otherwise provided by the plat or accompanying recorded document, a county assessor shall assess a common area consistent with the equal ownership interests described in Subsection (4)(a) and may not assess the common area in a manner that reflects a different division of interest.
(c) In assessing the fair market value of property that is a common area, a county assessor shall consider factors relating to the property and neighboring property that affect the fair market value of the property being assessed, including:
(i) value that transfers to neighboring property because the property is a common area;
(ii) practical and legal restrictions on the development potential of the property because the property is a common area;
(iii) the absence of neighboring property similarly situated as a common area to provide a basis for comparing values between properties; and
(iv) any other factor that causes the fair market value of the property to be affected because the property is a common area.
(1) "Minimum parcel size" means the minimum size that a parcel of property may be divided into under a zoning ordinance adopted by a:
(a) county in accordance with Title 17, Chapter 79, Part 5, Land Use Regulations - General Processes; or
(b) city or town in accordance with Title 10, Chapter 20, Part 5, Land Use Regulations - General Processes.
(2) In assessing the fair market value of a parcel of property that is subject to a minimum parcel size of one acre or more, a county assessor shall include as part of the assessment:
(a) that the parcel of property may not be subdivided into parcels of property smaller than the minimum parcel size; and
(b) any effects Subsection (2)(a) may have on the fair market value of the parcel of property.
(3) This section does not prohibit a county assessor from including as part of an assessment of the fair market value of a parcel of property any other factor affecting the fair market value of the parcel of property.
(1) As used in this section:
(a) "Lease up period" means the period that begins the day on which residential housing located on real property subject to a low-income housing covenant is available for occupancy and ends the day on which the residential housing achieves 90% occupancy for a continuous three-month period.
(b) "Low-income housing covenant" means an agreement:
(i) between:
(A) the Utah Housing Corporation or a government entity; and
(B) an owner of real property upon which residential rental housing is located;
(ii) in which the owner described in Subsection (1)(b)(i)(B) agrees to limit the amount of rent that a renter may be charged for the residential rental housing; and
(iii) that is filed with the county recorder in the county in which the real property is located.
(c) "Residential rental housing" means housing that:
(i) is used:
(A) for residential purposes; and
(B) as a primary residence; and
(ii) is rental property.
(2)
(a) A county assessor shall, in determining the fair market value of real property subject to a low-income housing covenant:
(i) use the income capitalization approach, if the county assessor finds that the income capitalization approach is a valid indicator of the property's fair market value;
(ii) in using the income capitalization approach:
(A) calculate the property's net operating income using the reduced rent amounts that result from the low-income housing covenant; and
(B) during the lease up period, account for rent loss due to vacancy and lease up costs; and
(iii) take into account all other relevant factors that affect the fair market value of the property, including the information provided in accordance with Subsection (3).
(b)
(i) Subject to Subsection (2)(b)(ii), Subsection (2)(a) applies regardless of whether the property is complete or under construction.
(ii) For a property under construction, when determining fair market value under this section, the county assessor shall take into account the impact of the low-income housing covenant on the fair market value of the property.
(3)
(a) On or before April 30 of each year, an owner of real property subject to a low-income housing covenant shall provide to the county assessor the following on a form approved by the commission:
(i) a signed statement from the property owner that the project continues to meet the requirements of the low-income housing covenant;
(ii) a certified financial operating statement for the property for the prior year;
(iii) rent rolls for the property for the prior year;
(iv) federal and commercial financing terms and agreements for the property; and
(v) for a property under construction, actual construction costs incurred as of the lien date.
(b) If the April 30 described in Subsection (3)(a) occurs before occupancy of the property or before the end of the lease up period, the property owner shall provide estimates of the information required by Subsections (3)(a)(ii) and (iii).
(c) On or before March 31 each year, the county assessor shall send a copy of the form described in Subsection (3)(a) to each owner of real property subject to a low-income housing covenant located in the county.
(4) If an owner of real property subject to a low-income housing covenant fails to meet the requirements of Subsection (3):
(a) the assessor shall:
(i) make a record of the failure to meet the requirements of Subsection (3); and
(ii) make an estimate of the fair market value of the property in accordance with Subsection (2) based on information available to the assessor; and
(b) subject to Subsection (5), the owner shall pay a penalty equal to the greater of:
(i) $250; or
(ii) 5% of the tax due on the property for that year.
(5)
(a) Only one penalty per year may be imposed per housing project subject to a low-income housing covenant.
(b) Upon making a record of the action, and upon reasonable cause shown, an assessor may waive, reduce, or compromise the penalty imposed under Subsection (4)(b).
(c) An owner is not subject to a penalty under Subsection (4) for a year in which the county assessor failed to timely comply with Subsection (3)(c).
(1) As used in this section, "valuation reduction" means a reduction in the value of property on appeal if that reduction was made:
(a) within the three years before the January 1 of the year in which the property is being assessed; and
(b) by a:
(i) county board of equalization in a final decision;
(ii) the commission in a final unappealable administrative order; or
(iii) a court of competent jurisdiction in a final unappealable judgment or order.
(2) In assessing the fair market value of property subject to a valuation reduction, a county assessor shall consider in the assessor's determination of fair market value:
(a) any additional information about the property that was previously unknown or unaccounted for by the assessor that is made known on appeal; and
(b) whether the reasons for the valuation reduction continue to influence the fair market value of the property.
(3) This section does not prohibit a county assessor from including as part of a determination of the fair market value of property any other factor affecting the fair market value of the property.
(4)
(a) Subject to the other provisions of this Subsection (4), for a calendar year, a county legislative body may reduce the value of property, or issue a refund of property taxes paid, if:
(i) a county board of equalization, the commission, or a court of competent jurisdiction makes a valuation reduction with respect to the property;
(ii) the property is assessed in the next calendar year at a value that is at least five times greater than the value established at the time of the valuation reduction; and
(iii) the county legislative body determines that the assessed value described in Subsection (4)(a)(ii) exceeds fair market value.
(b) A county legislative body may make a reduction or refund under Subsection (4)(a) if an owner of the property:
(i) applies to the county legislative body; and
(ii) has not filed an appeal with the county board of equalization under Section 59-2-1004 or the commission under Section 59-2-1006 with respect to the property for the calendar year in which the owner applies to the county legislative body under Subsection (4)(b)(i).
(c) A reduction described in Subsection (4)(a):
(i) may be made if the property taxes have not been paid for the calendar year for which an owner applies to the county legislative body under Subsection (4)(b)(i); and
(ii) is in an amount to ensure that the property is assessed at fair market value.
(d) A refund described in Subsection (4)(a):
(i) may be made if the property taxes have been paid for the calendar year for which an owner applies to the county legislative body under Subsection (4)(b)(i); and
(ii) is in an amount to ensure that the property is taxed at a uniform and equal rate on the basis of its fair market value.
(1) As used in this section:
(a) "Endangered" is as defined in Section 23A-1-101.
(b) "Threatened" is as defined in Section 23A-1-101.
(2) In assessing the fair market value of property, a county assessor shall consider as part of the determination of fair market value whether a threatened or endangered species is present on any portion of the property, including any impacts the presence of the threatened or endangered species has on:
(a) the functionality of the property;
(b) the ability to use the property; and
(c) property rights.
(3) This section does not prohibit a county assessor from including as part of a determination of the fair market value of property any other factor affecting the fair market value of the property.
(1) As used in this section, "diminished productive value" means that property has no, or a significantly reduced, ability to generate income as a result of:
(a) a parcel size requirement established under a land use ordinance or zoning map adopted by a:
(i) city or town in accordance with Title 10, Chapter 20, Part 5, Land Use Regulations - General Processes; or
(ii) a county in accordance with Title 17, Chapter 79, Part 5, Land Use Regulations - General Processes; or
(b) one or more easements burdening the property.
(2) In assessing the fair market value of property, a county assessor shall consider as part of the determination of fair market value whether property has diminished productive value.
(3) This section does not prohibit a county assessor from including as part of a determination of the fair market value of property any other factor affecting the fair market value of the property.
(1) As used in this section:
(a) "Hazardous waste" has the same meaning as that term is defined in Section 19-6-102.
(b)
(i) "Radioactive waste" means:
(A) low-level radioactive waste as defined in 42 U.S.C. Sec. 10101; or
(B) high-level radioactive waste as defined in 42 U.S.C. Sec. 10101.
(ii) "Radioactive waste" does not include naturally occurring radioactive materials.
(2) Subject to Subsection (3), in assessing the fair market value of property, a county assessor shall consider, as part of the determination of fair market value, whether property that is not currently used for the storage of hazardous waste or radioactive waste has been used in the past for the storage of hazardous waste or radioactive waste in a manner that affects:
(a) the functionality of the property;
(b) the ability to use the property; or
(c) property rights.
(3) Subsection (2) applies to the extent a county assessor knows, or reasonably should have known, that property has been used in the past for the storage of hazardous waste or radioactive waste.
(4) This section does not prohibit a county assessor from including as part of a determination of the fair market value of property any other factor affecting the fair market value of the property.
(1) As used in this section:
(a) "Multi-tenant residential property" means real and personal property where:
(i) the real property:
(A) is rented as 10 or more separate housing units;
(B) meets the definition of residential property; and
(C) qualifies for the residential exemption described in Section 59-2-103; and
(ii) the personal property is:
(A) located within the real property; and
(B) owned by the same person as the real property.
(b) "Multi-tenant residential property" does not include a tourist home, a hotel, a motel, or a trailer court accommodation and service that is regularly rented for fewer than 30 consecutive days.
(2)
(a) A county assessor may use an income approach to value multi-tenant residential properties within the county if the county assessor finds that the income approach is a valid indicator of fair market value for the multi-tenant residential property in the county.
(b) A county assessor that chooses to value a multi-tenant residential property in accordance with this section shall use the same valuation method for all multi-tenant residential properties within the county.
(c) On or before May 1, a county assessor shall notify the commission about the county's method for valuing multi-tenant residential properties if the county assessor:
(i)
(A) chooses to value multi-tenant residential properties in accordance with this section for the current tax year; and
(B) did not choose to value multi-tenant residential properties in accordance with this section for the previous tax year; or
(ii)
(A) chose to value multi-tenant residential properties in accordance with this section for the previous tax year; and
(B) is not choosing to value multi-tenant residential properties in accordance with this section for the current tax year.
(3)
(a) If a county assessor chooses to use the income approach to value multi-tenant residential properties, the county assessor may relieve the owners of any obligation to file the signed statement requested by the county under Section 59-2-306 for the owners' personal property located within the multi-tenant residential properties.
(b) On or before May 1:
(i) a county assessor that chooses to value multi-tenant residential properties in accordance with this section shall notify an owner that the owner is not required to file a signed statement if:
(A) the county requests a signed statement under Section 59-2-306;
(B) the county assessor relieves the owner of any obligation to file a signed statement in accordance with Subsection (3)(a); and
(C) the county assessor did not relieve the owner of the signed statement obligation for the previous tax year; or
(ii) a county assessor that chooses not to value multi-tenant residential properties in accordance with this section shall notify an owner of the obligation to file a signed statement if:
(A) the county requests a signed statement under Section 59-2-306; and
(B) the county assessor relieved the owner from filing a signed statement of personal property for the previous tax year.
(4) For personal property for which an owner is relieved of the obligation to file a signed statement under Subsection (3):
(a)
(i) the county assessor shall assess the personal property in the same manner as real property under Part 3, County Assessment; and
(ii) the county assessor or the county treasurer shall collect the tax on the personal property in the same manner as real property under Part 13, Collection of Taxes;
(b) the county assessor is not required to list personal property separately in the assessment roll; and
(c) the county auditor is not required to identify personal property separately on the statement to the commission required by Section 59-2-322.
(1) As used in this section, "pollution control equipment" means property that:
(a) is assessed under Part 3, County Assessment;
(b) is used:
(i) to prevent, control, or reduce air or water pollution; and
(ii) in connection with an establishment described in NAICS subsector 324110 of the 2022 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(c) is purchased to satisfy a requirement of the federal or state government; and
(d) does not significantly:
(i) increase the facility's output or capacity;
(ii) reduce the facility's total operating costs; or
(iii) extend the useful life of any other property.
(2) The taxable value of pollution control equipment is calculated by applying the percent good factor against the acquisition cost of the pollution control equipment as follows:
| | Year After Acquisition | Percent Good of Acquisition Cost | | --- | --- | --- | | | First year after acquisition | 80% | | | Second year after acquisition | 60% | | | Third year after acquisition | 40% | | | Fourth year after acquisition | 20% | | | Fifth year or any subsequent year after acquisition | 6% |
(3)
(a) A taxpayer owning property assessed under this section may make an appeal relating to the value of the property in accordance with Section 59-2-1005.
(b) As part of an appeal described in this subsection, a taxpayer may request a deviation from the schedule provided in this section for a specific item of property if use of the schedule does not result in the fair market value of the property, including any relevant installation or assemblage value, at the retail level of trade and on the lien date.
(4)
(a) A county assessor may deviate from the schedule provided in this section when necessary to reach fair market value.
(b) When a deviation described in Subsection (4)(a) affects an entire class or type of personal property, the county assessor shall submit to the commission a written report substantiating the deviation with verifiable data.
(c) A county assessor may not use a schedule other than the schedule provided in this section without prior written consent of the commission.
(d) If a county assessor deviates from the schedule provided in this section and the taxpayer makes an appeal in accordance with Subsection (3), the county assessor has the burden of proof in the appeal, whether before a county board of equalization, the commission, or a court.
The assessments made by:
(1) the county assessor, as equalized by the county board of equalization and the commission; and
(2) the commission, as apportioned to each county, city, town, school, road, or other district in their respective counties, are the only basis of property taxation for political subdivisions of the state.
(1)
(a) Before May 22 each year, the county assessor shall:
(i) ascertain the names of the owners of all property that is subject to taxation by the county;
(ii) except as provided in Subsection (2), assess the property to the owner, claimant of record, or occupant in possession or control at midnight on January 1 of the taxable year; and
(iii) conduct the review process described in Section 59-2-303.2.
(b) No mistake in the name or address of the owner or supposed owner of property renders the assessment invalid.
(2) If a conveyance of ownership of the real property was recorded in the office of a county recorder after January 1 but more than 14 calendar days before the day on which the county treasurer mails the tax notice, the county assessor shall assess the property to the new owner.
(3) A county assessor shall become fully acquainted with all property in the county assessor's county, as provided in Section 59-2-301.
(4) A county assessor in a county of the third, fourth, fifth, or sixth class shall seek assistance from other county assessors or an appraiser contracted in accordance with Section 59-2-703 for the county assessor to meet the requirements of Section 59-2-303.1.
(1) For purposes of this section:
(a) "Mass appraisal system" means a computer assisted mass appraisal system that:
(i) a county assessor uses to value real property; and
(ii) includes at least the following system features:
(A) has the ability to update all parcels of real property located within the county each year;
(B) can be programmed with specialized criteria;
(C) provides uniform and equal treatment of parcels within the same class of real property throughout the county; and
(D) annually updates all parcels of residential real property within the county using accepted valuation methodologies as determined by rule.
(b) "Property review date" means the date a county assessor completes a detailed review of the property characteristics of a parcel of real property in accordance with Subsection (3)(a).
(2)
(a) The county assessor shall annually update property values of property as provided in Section 59-2-301 based on a systematic review of current market data.
(b) The county assessor shall conduct the annual update described in Subsection (2)(a) by using a mass appraisal system.
(c) The county assessor and the commission shall jointly certify that the county's mass appraisal system meets the requirements:
(i) described in Subsection (1)(b); and
(ii) of the commission.
(3)
(a) In addition to the requirements in Subsection (2), the county assessor shall complete a detailed review of property characteristics for each property at least once every five years.
(b) The county assessor shall maintain on the county's mass appraisal system, a record of the last property review date for each parcel of real property located within the county assessor's county.
(c)
(i) The county assessor shall maintain on the county's mass appraisal system a parcel's property tax class or category that is used for the purpose of property tax assessment on the annual assessment date.
(ii) The classifications or categories of real property under Subsection (3)(c)(i) shall include, at minimum:
(A) primary residential;
(B) commercial;
(C) vacant land;
(D) secondary residential; and
(E) non-taxable.
(iii) The classifications or categories of real property used by the county assessor, and the classification or category applied to a specific parcel, is public information.
(4)
(a) The county assessor shall prepare a five-year plan to comply with the requirements of Subsections (2) and (3).
(b) The plan shall be available in the county assessor's office for review by the public upon request.
(c) The plan shall be annually reviewed and revised as necessary.
(5)
(a) A county assessor shall create, maintain, and regularly update a database containing the following information that the county assessor may use to enhance the county's ability to accurately appraise and assess property on an annual basis:
(i) fee and other appraisals;
(ii) property characteristics and features;
(iii) property surveys;
(iv) sales data; and
(v) any other data or information on sales, studies, transfers, changes to property, or property characteristics.
(b) A county assessor may provide access to the information in the database to another county assessor that requests assistance in accordance with Section 59-2-303.
(1) As used in this section:
(a) "Final assessed value" means:
(i) for a review property for which the taxpayer did not appeal the valuation or equalization in accordance with Section 59-2-1004, the assessed value as stated on the valuation notice described in Section 59-2-919.1;
(ii) for a review property for which the taxpayer appealed the valuation or equalization in accordance with Section 59-2-1004, the assessed value given to the review property by the county board of equalization, including an assessed value based on a stipulation of the parties;
(iii) for real property for which the taxpayer or a county assessor appealed the valuation or equalization to the commission in accordance with Section 59-2-1006, the value given to the real property by:
(A) the commission, if the commission has issued a decision in the appeal or the parties have entered a stipulation; or
(B) a county board of equalization, if the commission has not yet issued a decision in the appeal and the parties have not entered a stipulation; or
(iv) for real property for which the taxpayer or a county assessor sought judicial review of the valuation or equalization in accordance with Section 59-1-602 or Title 63G, Chapter 4, Part 4, Judicial Review, the value given the real property by the commission.
(b) "Median property value change" means the midpoint of the property value changes for all real property that is:
(i) of the same class of real property as the review property; and
(ii) located within the same county and within the same market area as the review property.
(c) "Property value change" means the percentage change in the fair market value of real property on or after January 1 of the previous year and before January 1 of the current year.
(d) "Qualifying change" means one of the following changes to real property that occurs on or after January 1 of the previous taxable year and before January 1 of the current taxable year:
(i) a physical improvement if, solely as a result of the physical improvement, the fair market value of the physical improvement equals or exceeds the greater of 10% of fair market value of the real property or $20,000;
(ii) a zoning change, if the fair market value of the real property increases solely as a result of the zoning change; or
(iii) a change in the legal description of the real property, if the fair market value of the real property increases solely as a result of the change in the legal description of the real property.
(e) "Review property" means real property located in the county:
(i) that on or after January 1 of the previous year and before January 1 of the current year has not had a qualifying change; and
(ii) for which the county assessor did not conduct a detailed review of property characteristics during the current taxable year.
(f) "Threshold increase" means an increase in a review property's assessed value for the current taxable year compared to the final assessed value of the review property for the previous taxable year that is:
(i) the median property value change plus 15%; and
(ii) at least $10,000.
(2)
(a) Before completing and delivering the assessment book to the county auditor in accordance with Section 59-2-311, the county assessor shall review the assessment of a review property for which the assessed value for the current taxable year is equal to or exceeds the threshold increase.
(b) The county assessor shall retain a record of the properties for which the county assessor conducts a review in accordance with this section and the results of that review.
(3)
(a) If the county assessor determines that the assessed value of the review property reflects the review property's fair market value, the county assessor may not adjust the review property's assessed value.
(b) If the county assessor determines that the assessed value of the review property does not reflect the review property's fair market value, the county assessor shall adjust the assessed value of the review property to reflect the fair market value.
(4) The review process described in this section does not supersede or otherwise affect a taxpayer's right to appeal or to seek judicial review of the valuation or equalization of a review property in accordance with:
(a) this part;
(b) Title 59, Chapter 1, Part 6, Judicial Review; or
(c) Title 63G, Chapter 4, Part 4, Judicial Review.
(1) As used in this section:
(a) "Qualifying increase" means a valuation increase that is equal to or more than 150% higher than the previous year's valuation for residential property, or equal to or more than 350% higher than the previous year's valuation for any other property that is not residential property, that:
(i) is county assessed; and
(ii) on or after January 1 of the previous year and before January 1 of the current year, has not had:
(A) a physical improvement if the fair market value of the physical improvement increases enough to result in the valuation increase solely as a result of the physical improvement;
(B) a zoning change if the fair market value of the real property increases enough to result in the valuation increase solely as a result of the zoning change; or
(C) a change in the legal description of the real property, if the fair market value of the real property increases enough to result in the valuation increase solely as a result of the change in the legal description of the real property.
(b) "Specified property" means a property:
(i) that requires a review in accordance with Subsection (2); and
(ii) for which the qualifying increase is equal to or more than $250,000.
(2)
(a) The county assessor shall review the assessment of a property with a qualifying increase before delivery of the assessment book to the county auditor in accordance with Section 59-2-311.
(b) The county assessor shall retain a record of the properties for which the county assessor conducts a review in accordance with this Subsection (2) and the results of that review.
(3)
(a) When the county assessor conducts the review described in Subsection (2):
(i) if the county assessor determines that the assessed value of the property reflects the property's fair market value, the county assessor may not adjust the property's assessed value; or
(ii) if the county assessor determines that the assessed value of the property does not reflect the review property's fair market value, the county assessor shall adjust the assessed value of the review property to reflect the fair market value.
(b) If a county assessor makes an adjustment under Subsection (3)(a), the county assessor shall list the adjusted value set in accordance with this section as the original assessed value on the valuation notice sent in accordance with Section 59-2-919.1.
(4)
(a) Upon completing the review described in Subsection (2), the county assessor shall report to the commission:
(i) the number of properties that:
(A) required a review in accordance with Subsection (2); and
(B) the county reduced the value as a result of the review;
(ii) the parcel number of any specified property for which the county assessor did not reduce the value as a result of the review; and
(iii) for each specified property, the property type and the reasons for the qualifying increase.
(b)
(i) A county that has any specified property for two consecutive years shall report to the Revenue and Taxation Interim Committee:
(A) at the same meeting or a meeting after the meeting during which the commission makes the report described in Section 59-2-1008;
(B) in the same year as the commission report; and
(C) on the number of specified properties in the county during the consecutive two-year period for which the report under this Subsection (4)(b) is required.
(ii) The requirement to report under this Subsection (4)(b) applies if the county has a specified property in each of two consecutive years regardless of whether the specified property is the same property for each year.
(5) The review process described in this section does not supersede or otherwise affect a taxpayer's right to appeal or to seek judicial review of the valuation or equalization of a review property in accordance with:
(a) Part 10, Equalization;
(b) Chapter 1, Part 6, Judicial Review; or
(c) Title 63G, Chapter 4, Part 4, Judicial Review.
The county assessor shall list all property in each taxing entity in the county by identifier and fair market value. The commission may prescribe procedures and formats, after consultation with affected state agencies and county assessors, which will provide reasonable uniformity and reduced costs in listing property.
(1) As used in this section:
(a) "Affected area" means:
(i) in the case of the creation or incorporation of a local entity, the area within the newly created local entity's boundary;
(ii) in the case of an annexation of an area into an existing local entity, the annexed area;
(iii) in the case of an adjustment of a boundary between local entities, the area that before the boundary adjustment was in the boundary of one local entity but becomes, because of the boundary adjustment, included within the boundary of another local entity;
(iv) in the case of the withdrawal or disconnection of an area from a local entity, the area that is withdrawn or disconnected;
(v) in the case of the consolidation of multiple local entities, the area within the boundary of the consolidated local entity;
(vi) in the case of the division of a local entity into multiple local entities, the area within the boundary of each new local entity created by the division; and
(vii) in the case of the dissolution of a local entity, the area that used to be within the former boundary of the dissolved local entity.
(b) "Applicable certificate" has the same meaning as defined in Section 67-1a-6.5.
(c) "Boundary action" has the same meaning as defined in Section 17-73-101.
(d) "Effective date" means the effective date, under applicable statute, of the boundary action that is the subject of an applicable certificate.
(e) "Local entity" has the same meaning as defined in Section 67-1a-6.5.
(f) "Required documents" means the documents relating to a boundary action that are required under applicable statute to be submitted to the county recorder for recording following the lieutenant governor's issuance of an applicable certificate.
(2) Notwithstanding the effective date, a boundary action is not effective for purposes of assessing under this part the property located within the affected area until the required documents are recorded in the office of the recorder of each county in which the affected area is located.
(1)
(a) Except as provided in Subsection (1)(c), the county assessor may request a signed statement from any person setting forth all the real and personal property assessable by the assessor that the person owns, possesses, manages, or has under the person's control at 12 noon on January 1.
(b) A request under Subsection (1)(a) shall include a notice of the procedure under Section 59-2-1005 for appealing the value of the personal property.
(c) A telecommunications service provider shall file a signed statement setting forth the telecommunications service provider'spersonal property in accordance with Section 59-2-306.5.
(d) A telecommunications service provider shall claim an exemption for personal property in accordance with Section 59-2-1115.
(2)
(a) Except as provided in Subsection (2)(b) or (c), a person shall file a signed statement described in Subsection (1) on or before May 15 of the year the county assessor requests the statement described in Subsection (1).
(b) For a county of the first class, a person shall file the signed statement described in Subsection (1) on or before the later of:
(i) 60 days after the day on which the county assessor requests the statement; or
(ii) May 15 of the year the county assessor requests the statement described in Subsection (1) if, by resolution, the county legislative body of that county adopts the deadline described in Subsection (2)(a).
(c) If a county assessor requests a signed statement described in Subsection (1) on or after March 16, the person shall file the signed statement within 60 days after the day on which the county assessor requests the signed statement.
(3) The signed statement shall include the following:
(a) all property belonging to, claimed by, or in the possession, control, or management of the person, any firm of which the person is a member, or any corporation of which the person is president, secretary, cashier, or managing agent;
(b) the county in which the property is located or in which the property is taxable; and, if taxable in the county in which the signed statement was made, also the city, town, school district, road district, or other taxing district in which the property is located or taxable;
(c) all lands in parcels or subdivisions not exceeding 640 acres each, the sections and fractional sections of all tracts of land containing more than 640 acres that have been sectionized by the United States government, and the improvements on those lands; and
(d) for a person who owns taxable tangible personal property as defined in Section 59-2-1115, the person's NAICS code, as classified under the current North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget.
(4) Every county assessor may subpoena and examine any person in any county in relation to any signed statement but may not require that person to appear in any county other than the county in which the subpoena is served.
(5)
(a) Except as provided in Subsection (5)(b), if the signed statement discloses property in any other county, the county assessor shall file the signed statement and send a copy to the county assessor of each county in which the property is located.
(b) If the signed statement discloses personal property of a telecommunications service provider, the county assessor shall notify the telecommunications service provider of the requirement to file a signed statement in accordance with Section 59-2-306.5.
(1) As used in this section, "program manager" means the same as that term is defined in Section 59-2-1601.
(2) A telecommunications service provider shall provide to the program manager a signed statement setting forth all of the personal property that the telecommunications service provider owns, possesses, manages, or has under the telecommunications service provider's control in the state.
(3) The signed statement:
(a) may be requested by the program manager on or before January 31 of each year;
(b) shall itemize each item of personal property that the telecommunications service provider owns, possesses, manages, or has under the telecommunications service provider's control:
(i) by county and by tax area; and
(ii) for the tax year that began on January 1; and
(c) shall be submitted:
(i) annually on or before March 31; and
(ii) electronically in a form the commission approves.
(4)
(a) Except where an estimate is made in accordance with Subsection 59-2-307(4)(b)(i)(C), the program manager shall value each item of personal property of a telecommunications service provider according to the personal property valuation guides and schedules the commission establishes.
(b)
(i) Between March 31 and May 31 of each year:
(A) the program manager may communicate with a telecommunications service provider to address any inconsistency or error in the filed signed statement; and
(B) the telecommunications service provider may file an amended signed statement with the program manager regarding the items agreed to by the program manager and the telecommunications service provider.
(ii) The communication described in this Subsection (4)(b) is in addition to the audit authority provided by this chapter.
(c) On or before May 31 of each year, the program manager shall:
(i) forward to each county information about the total value of personal property of each telecommunications service provider within the county, by tax area, including a listing of personal property that is exempt; and
(ii) issue a tax notice to each telecommunications service provider listing the tax due to each county, by tax area.
(d) On or before June 30 of each year, a telecommunications service provider shall pay to the county the tax due on the tax notice.
(e) A telecommunications service provider may appeal the valuation of personal property to the county on or before the later of:
(i) July 30 of the year the program manager requests a statement described in Subsection (3)(a); or
(ii) 60 days after mailing of a tax notice.
(5) The program manager shall forward to each county information about the total value of personal property of each telecommunications service provider within the county.
(6) If a signed statement filed in accordance with this section discloses real property, the program manager shall send a copy of the signed statement to the county in which the property is located.
(1) As used in this section, "program manager" means the same as that term is defined in Section 59-2-1601.
(2)
(a) Each person that fails to file the signed statement required by Section 59-2-306 or Section 59-2-306.5, fails to file the signed statement with respect to name and place of residence, or fails to appear and testify when requested by the county assessor shall pay a penalty equal to 10% of the estimated tax due, but not less than $25 for each failure to file a signed and completed statement.
(b) The program manager shall notify the county assessor of a telecommunications service provider's failure to file the signed statement.
(c) The county assessor shall collect each penalty under Subsection (2)(a) in the manner provided by Sections 59-2-1302 and 59-2-1303, except as otherwise provided for in this section, or by a judicial proceeding brought in the name of the county assessor.
(d) The county assessor shall pay all money recovered under this section into the county treasury.
(3)
(a) Upon a showing of reasonable cause, a county may waive or reduce a penalty imposed under Subsection (2)(a).
(b)
(i) Except as provided in Subsection (3)(b)(ii), a county assessor may impose a penalty under Subsection (2)(a) on or after May 16 of the year the county assessor requests the statement described in Section 59-2-306 or is due under Section 59-2-306.5.
(ii) A county assessor may not impose a penalty under Subsection (2)(a) until 30 days after the postmark date of mailing of a subsequent notice if the signed statement described in Section 59-2-306 is requested:
(A) on or after March 16; or
(B) by a county assessor of a county of the first class, as classified in Section 17-60-104.
(4)
(a) If an owner neglects or refuses to file a signed statement as required under Section 59-2-306 after the county assessor makes a request:
(i) the county assessor shall:
(A) make a record of the failure to file; and
(B) make an estimate of the value of the property of the owner based on known facts and circumstances; and
(ii) the county assessor of a county of the first class, as classified in Section 17-60-104:
(A) shall make a subsequent request by mail for the signed statement, informing the owner of the consequences of not filing a signed statement; and
(B) may impose a fee for the actual and necessary expenses of the mailing under this Subsection (4)(a).
(b)
(i) If a telecommunications service provider neglects or refuses to file a signed statement in accordance with Section 59-2-306.5, the program manager shall make:
(A) a record of the failure to file;
(B) a request by mail for the signed statement, informing the telecommunications service provider of the consequences of not filing a signed statement; and
(C) an estimate of the value of the personal property of the telecommunications service provider based on known facts and circumstances.
(ii) The program manager may impose a fee for the actual and necessary expenses of the mailing under this Subsection (4)(b).
(c) A county board of equalization or the commission may not reduce the value fixed by the county assessor in accordance with Subsection (4)(a)(i) or the program manager in accordance with Subsection (4)(b)(i).
(1) If a person is assessed as agent, trustee, bailee, guardian, executor, or administrator, a county shall:
(a) add the representative designation to the name; and
(b) enter the assessment separately from the individual assessment.
(2) A county may assess the undistributed or unpartitioned property of a deceased individual to an heir, guardian, executor, or administrator, and the payment of taxes binds all the parties in interest.
(3) Property in litigation, which is in the possession of a court or receiver, shall be assessed to the court clerk or receiver, and the taxes shall be paid under the direction of the court.
(4) A county shall add the valuation the program manager, as that term is defined in Section 59-2-1601, gives to personal property of a telecommunications service provider to the valuation of any real property of the telecommunications service provider within the county before making an assessment in accordance with this part.
(1) Any escaped property may be assessed by the original assessing authority at any time as far back as five years prior to the time of discovery, in which case the assessor shall enter the assessments on the tax rolls and follow the procedures established under Part 13, Collection of Taxes.
(2) Any property found to be willfully concealed, removed, transferred, or misrepresented by its owner or agent in order to evade taxation is subject to a penalty equal to the tax on its value, and neither the penalty nor assessment may be reduced or waived by the assessor, county, county Board of Equalization, or the commission, except pursuant to a procedure for the review and approval of waivers adopted by county ordinance, or by administrative rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
Real property described on the assessment book need not be described a second time, but any person claiming the real property and a desire to be assessed for the land may have the person's name inserted with that of the person to whom the real property is assessed.
(1) Before May 22 each year, the county assessor shall complete and deliver the assessment book to the county auditor.
(2) The county assessor shall subscribe and sign a statement in the assessment book substantially as follows:
I, ____, the assessor of ____ County, do swear that before May 22, _______(year), I made diligent inquiry and examination, and either personally or by deputy, established the value of all of the property within the county subject to assessment by me; that the property has been assessed on the assessment book equally and uniformly according to the best of my judgment, information, and belief at its fair market value; that I have faithfully complied with all the duties imposed on the assessor under the revenue laws including the requirements of Section 59-2-303.1; and that I have not imposed any unjust or double assessments through malice or ill will or otherwise, or allowed anyone to escape a just and equal assessment through favor or reward, or otherwise.
(3) Before completing and delivering the assessment book under Subsection (1), the county assessor shall adjust the assessment of property in the assessment book to reflect an adjustment in the taxable value of any property if the adjustment in taxable value is made:
(a) by the county board of equalization in accordance with Section 59-2-1004.5 on or before May 15; or
(b) by the county assessor in accordance with Section 59-2-303.2.
(4)
(a) Before completing and delivering the assessment book under Subsection (1), the county assessor shall deliver a preliminary assessment book to the commission on or before May 15 of each year for review by the commission.
(b) The commission shall annually:
(i) review the preliminary assessment book for each county delivered under Subsection (4)(a); and
(ii) track the assessments for each county.
The county assessor shall furnish to the commission, promptly upon demand, any information it may require as to the several kinds of personal and real property, and the taxable value of those properties, which are located in the county.
(1) As used in this section, "assessment data" means:
(a) the information described in Subsection 59-2-303.1(6) contained in a county's database used in mass appraisal; and
(b) any other assessment information the commission requires.
(2) A county assessor shall provide assessment data to the commission:
(a)
(i) annually on or before March 31;
(ii) no later than 15 days after the date the county assessor provides the assessment book to the county auditor under Section 59-2-311;
(iii) no later than 15 days after the date the county auditor provides the assessment roll to the county treasurer under Section 59-2-326; or
(b) at any other time requested by the commission.
(3) The commission may:
(a) review a county's annual update of property values the county is required to perform under Section 59-2-303.1;
(b) review a county's detailed review of property characteristics the county is required to perform under Section 59-2-303.1; and
(c) provide findings and recommendations to the county.
(4) The commission may subscribe to a market data service to assist:
(a) the commission in performing a review described in Subsection (3); and
(b) counties in meeting the requirements of Section 59-2-303.1.
Any assessor who fails to complete and deliver the assessment book to the county auditor within the time prescribed by law, or who fails to transmit the information required under Section 59-2-313 to the commission, shall pay a civil penalty of $1,000 to the county, or the county legislative body may deduct the civil penalty from the assessor's salary.
(1) The assessor shall obtain crime insurance in relation to the duties of the assessor, in an amount set by the county legislative body.
(2) The county attorney shall, upon showing of proper evidence and upon written demand by the commission or the county legislative body, commence and prosecute to judgment an action against the assessor for willful failure or neglect in assessing property.
(3) If, during the trial of the action against the assessor, the value of the unassessed or underassessed property is determined, the assessor is liable for the difference between the amount of taxes collected and the amount of taxes which should have been collected pursuant to law.
The county auditor shall add the valuations, and enter the total valuation of each kind of property, and the total valuation of all property, on the assessment book. In the appropriate column the total acreage of the county shall be shown.
(1) The property taxes of each city, town, school, and special taxing district shall be extended on the assessment book by the county auditor at the rate certified by the governing body of the city, town, school, and special taxing district at the time the state and county taxes are extended.
(2) The whole tax shall be carried into a column of aggregates, and shall be collected by the county treasurer at the time and in the manner provided by law for collecting state and county taxes.
(1) The county auditor shall, before June 8 of each year, prepare from the assessment book of that year a statement showing in separate columns:
(a) the total value of all property;
(b) the value of real estate, including patented mining claims, stated separately;
(c) the value of the improvements;
(d) the value of personal property exclusive of money; and
(e) the number of acres of land and the number of patented mining claims, stated separately.
(2) As soon as the statement is prepared the county auditor shall transmit the statement to the commission.
(1) The commission shall, before June 17 or within 10 days after the county auditors of the state have filed their report with the commission as provided for under Section 59-2-322, each year transmit to the county auditor a statement of the changes made by it in the assessment book of the county, as provided under Section 59-1-210.
(2) As soon as the county auditor receives from the commission a statement of the changes made by it in the assessment book of the county, or of any assessment contained therein, the auditor shall make the corresponding changes in the assessment book, by entering the same in a column provided with the proper heading in the assessment book, counting any fractional sum when more than 50 cents as one dollar and omitting it when less than 50 cents, so that the value of any separate assessment shall contain no fractions of a dollar; but shall in all cases disregard any action of the county board of equalization or commission which is prohibited by law.
The county auditor shall then compute, and enter in a separate money column in the assessment book, the aggregate sum in dollars and cents to be paid as taxes on the property enumerated in the book. Taxes levied only on a certain kind or class of property for a special purpose, other than for state, county, city, town, and school purposes, etc., shall be separately set out, and shall foot up the column showing the total amount of the taxes, and the column of total value of property in the county, as corrected by the commission.
(1) The county auditor shall, before November 1 of each year:
(a) prepare from the assessment rolls of that year a statement showing:
(i) the amount and value of all property in the county, as classified by the county assessment rolls, and the value of each class;
(ii) the total amount of taxes remitted by the county board of equalization;
(iii) the state's share of the taxes remitted;
(iv) the county's share of the taxes remitted;
(v) the rate of county taxes; and
(vi) any other information requested by the commission; and
(b) provide a copy of the statement to the commission.
(2) The county auditor shall prepare the statement in the manner prescribed by the commission.
Before November 1, the county auditor must deliver the corrected assessment roll to the county treasurer, together with a signed statement subscribed by the county auditor in a form substantially as follows:
I, ____ county auditor of the county of ____, do swear that I received the accompanying assessment roll of the taxable property of the county from the assessor, and that I have corrected it and made it conform to the requirements of the county board of equalization and commission, that I have reckoned the respective sums due as taxes and have added up the columns of valuations, taxes, and acreage as required by law.
(1) The county auditor shall deliver the assessment roll, with the taxes extended, all orders of the county board of equalization and commission posted, and all relief granted, prior to the time prescribed in Section 59-2-1317 for providing the original tax notice, to the county treasurer, together with a report of the accumulated total, which shall be considered to be a preliminary taxes charged amount.
(2) After delivering the corrected assessment roll to the county treasurer, under Section 59-2-326, the county auditor shall charge the treasurer with the full amount of taxes levied, except the taxes of rail car companies and state-assessed commercial vehicles, in an account established for the purpose.
(3) The county auditor shall either report the final taxes charged or report the adjustments in taxable value and tax amounts from the preliminary taxes charged amount to the county treasurer for use in settling with all taxing entities under Section 59-2-1365.
If the assessment book or the delinquent tax list is transferred from one treasurer to another, the county auditor shall credit the one and charge the other with the amount of taxes then outstanding.
The county auditor shall verify all statements made by the auditor under the provisions of this title and attach a signed statement of verification.
(1) As used in this section:
(a) "County officer" means a county assessor, a member of a county board of equalization, or any other individual who holds a county office.
(b) "Multicounty assessing and collecting levy" means the same as that term is defined in Section 59-2-1601.
(2) The commission shall take corrective action if the commission determines that a county officer has materially failed to perform a duty under this chapter relating to the assessment of property.
(3) Corrective action under Subsection (2) may include one or more of the following actions:
(a) notifying a county officer in writing of the performance issue;
(b) ordering factoring pursuant to Section 59-2-704;
(c) subject to Subsection (4):
(i) recommending the removal of a county officer; or
(ii) filing a petition for a court order requiring a county officer to take action;
(d) reporting suspected misconduct or malfeasance of a county officer to law enforcement agencies, as appropriate; and
(e) taking any other action the commission determines is appropriate to ensure that:
(i) all assessments of property are uniform and equal, according to fair market value; and
(ii) the tax burden is distributed without favor or discrimination.
(4)
(a) Before taking a corrective action described in Subsection (3)(c) against a county officer, the commission shall publish notice of the commission's intent to take the corrective action on:
(i) the commission's public website; and
(ii) the Utah Public Notice Website created in Section 63A-16-601.
(b) After taking a corrective action described in Subsection (3)(c) against a county officer, the commission shall provide written notice of the corrective action to:
(i) the county officer subject to the corrective action;
(ii) the county legislative body of the county for which the county officer described in Subsection (4)(b)(i) holds office;
(iii) the state auditor;
(iv) the president of the Senate; and
(v) the speaker of the House of Representatives.
(5) If the commission determines that a county officer has materially failed to perform a duty under this chapter relating to the assessment of property for a period of one year or longer, the commission shall:
(a) assist the county officer in performing the duty required by this chapter; and
(b) charge the county the full amount of the commission's costs in providing assistance under this Subsection (5).
If any taxable personal property is brought into a county from another county of this state at any time after January 1, and the property has not been assessed for that year, it shall be listed and assessed the same as if it had been in the county at the time of the regular assessment. The county assessor shall enter the assessment on the tax rolls in the hands of the county treasurer or elsewhere, and if made after the assessment book has been delivered to the county treasurer, the assessment shall be reported by the assessor to the county auditor, and the auditor shall charge the assessor with the taxes on the property. The assessor shall notify the person assessed and immediately proceed to secure or collect the taxes as provided under Part 13, Collection of Taxes.
(1) If any taxable transitory personal property, other than property exempted under Subsection (2), is brought into the state at any time after the assessment date, a proportional assessment shall be made in accordance with rules adopted by the commission based upon the length of time that the property is in the state, but in no event may the minimum assessment be less than 25% of the full year's assessment.
(2) The following property is exempt from proportional assessment under Subsection (1) for the year in which the license fee or tax is paid:
(a) property acquired during the calendar year;
(b) registered motor vehicles with a gross vehicle weight rating of 27,000 pounds or less;
(c) vehicles that are registered and licensed in another state;
(d) property subject to the provisions of Subsection 59-2-405(4);
(e) state-assessed commercial vehicles; and
(f) a motor home that is:
(i) brought into the state for the sole purpose of selling the motor home to a licensed dealer; and
(ii) purchased for resale by a person licensed as a dealer under Section 41-3-201.
(3) If any taxable transitory personal property is brought into the state at any time during the year, the owner of the property, or the owner's agent, shall immediately secure a personal property report form from the assessor, complete it in all pertinent respects, sign it, and file it with the assessor of the county in which the property is located.
(4) If the owner of the taxable transitory personal property, or the owner's agent, fails to secure, complete, and file a personal property report form with the county assessor, the assessor shall estimate the value of the property in accordance with Section 59-2-307. Any failure on the part of the owner or agent to report as required by this subsection subjects the property owner to a penalty of 50% of the amount of tax finally determined to be due.
(5) An owner of taxable transitory personal property, except motor vehicles with a gross vehicle weight rating of 27,000 pounds or less, who has paid taxes on the personal property and who removes the property from the state prior to December, is entitled to a rebate of a proportionate share of the taxes paid as determined by the commission. If a claim for rebate or adjustments is filed with the county auditor by December 10, the auditor shall immediately submit the claim with a recommendation to the county executive for its approval or denial. If the claim is not approved prior to the end of the calendar year, or within 30 days after its submission, or if the claim is submitted after December 10, it shall be considered denied, and the owners of the property may file an action in the district court for a refund or an adjustment.
When assessing state-assessed commercial vehicles covering interstate routes, the commission shall apportion the assessment for the rolling stock used in interstate commerce at the same percentage ratio that has been filed with the Motor Vehicle Division of the commission for determining the proration of registration fees.
(1) The property described in Subsection (2), except Subsection (2)(b)(ii), is exempt from ad valorem property taxes pursuant to Utah Constitution, Article XIII, Section 2, Subsection (6).
(2)
(a) Except as provided in Subsection (2)(b), there is levied as provided in this part a statewide uniform fee in lieu of the ad valorem tax on:
(i) motor vehicles required to be registered with the state that have a gross vehicle weight rating of 14,001 pounds or more;
(ii) motorcycles as defined in Section 41-1a-102 that are required to be registered with the state;
(iii) watercraft required to be registered with the state;
(iv) recreational vehicles required to be registered with the state; and
(v) all other tangible personal property required to be registered with the state before it is used on a public highway, on a public waterway, on public land, or in the air.
(b) The following tangible personal property is exempt from the statewide uniform fee imposed by this section:
(i) aircraft;
(ii) state-assessed commercial vehicles;
(iii) tangible personal property subject to a uniform fee imposed by:
(A) Section 59-2-405.1;
(B) Section 59-2-405.2; or
(C) Section 59-2-405.3; and
(iv) personal property that is exempt from state or county ad valorem property taxes under the laws of this state or of the federal government.
(3)
(a) Except as provided in Subsection (3)(b), the uniform fee is 1.5% of the fair market value of the personal property, as established by the commission.
(b) An owner of a trailer registered under Subsection 41-1a-228(1)(b) may elect to pay a one-time uniform fee in lieu of the ad valorem tax, which is $150.
(4) Notwithstanding Section 59-2-407, property subject to the uniform fee that is brought into the state and is required to be registered in Utah shall, as a condition of registration, be subject to the uniform fee unless all property taxes or uniform fees imposed by the state of origin have been paid for the current calendar year.
(5)
(a) The revenues collected in each county from the uniform fee shall be distributed by the county to each taxing entity in which the property described in Subsection (2) is located in the same proportion in which revenue collected from ad valorem real property tax is distributed.
(b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in the same proportion in which revenue collected from ad valorem real property tax is distributed.
(6) An appeal relating to the uniform fee imposed on the tangible personal property described in Subsection (2) shall be filed pursuant to Section 59-2-1005.
(1) The property described in Subsection (2) is exempt from ad valorem property taxes pursuant to Utah Constitution Article XIII, Section 2, Subsection (6).
(2)
(a) Except as provided in Subsection (2)(b), there is levied as provided in this part a statewide uniform fee in lieu of the ad valorem tax on:
(i) motor vehicles as defined in Section 41-1a-102 that:
(A) are required to be registered with the state; and
(B) have a gross vehicle weight rating of 14,000 pounds or less; and
(ii) state-assessed commercial vehicles required to be registered with the state that have a gross vehicle weight rating of 14,000 pounds or less.
(b) The following tangible personal property is exempt from the statewide uniform fee imposed by this section:
(i) aircraft;
(ii) tangible personal property subject to a uniform fee imposed by:
(A) Section 59-2-405;
(B) Section 59-2-405.2; or
(C) Section 59-2-405.3; and
(iii) tangible personal property that is exempt from state or county ad valorem property taxes under the laws of this state or of the federal government.
(3)
(a) Except as provided in Subsections (3)(b) and (c), beginning on January 1, 1999, the uniform fee for purposes of this section is as follows:
| | Age of Vehicle | Uniform Fee | | --- | --- | --- | | | 12 or more years | $10 | | | 9 or more years but less than 12 years | $50 | | | 6 or more years but less than 9 years | $80 | | | 3 or more years but less than 6 years | $110 | | | Less than 3 years | $150 |
(b) For registrations under Section 41-1a-215.5, the uniform fee for purposes of this section is as follows:
| | Age of Vehicle | Uniform Fee | | --- | --- | --- | | | 12 or more years | $7.75 | | | 9 or more years but less than 12 years | $38.50 | | | 6 or more years but less than 9 years | $61.50 | | | 3 or more years but less than 6 years | $84.75 | | | Less than 3 years | $115.50 |
(c) Notwithstanding Subsections (3)(a) and (b), beginning on September 1, 2001, for a motor vehicle issued a temporary sports event registration certificate in accordance with Section 41-3-306, the uniform fee for purposes of this section is $5 for the event period specified on the temporary sports event registration certificate regardless of the age of the motor vehicle.
(d)
(i) Subject to Subsection (3)(d)(ii), for a vehicle registered for a 24-month period as provided in Section 41-1a-215.5, the uniform statewide fee amounts imposed by this section are double the amounts due for the same vehicle registered for a 12-month period.
(ii) For a vehicle registered for a 24-month period as provided in Section 41-1a-215.5, if the 24-month term extends from one age bracket to another age bracket as described in this section, the person shall pay the sum of:
(A) the uniform statewide fee amount for the first year corresponding to the age bracket applicable for the first 12 months of the registration period; and
(B) the uniform statewide fee amount for the second year corresponding to the age bracket applicable for the second 12 months of the registration period.
(4) Notwithstanding Section 59-2-407, property subject to the uniform fee that is brought into the state and is required to be registered in Utah shall, as a condition of registration, be subject to the uniform fee unless all property taxes or uniform fees imposed by the state of origin have been paid for the current calendar year.
(5)
(a) The revenues collected in each county from the uniform fee shall be distributed by the county to each taxing entity in which the property described in Subsection (2) is located in the same proportion in which revenue collected from ad valorem real property tax is distributed.
(b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in the same proportion in which revenue collected from ad valorem real property tax is distributed.
(1) As used in this section:
(a)
(i) Except as provided in Subsection (1)(a)(ii), "all-terrain vehicle" means a motor vehicle that:
(A) is an:
(I) all-terrain type I vehicle as defined in Section 41-22-2;
(II) all-terrain type II vehicle as defined in Section 41-22-2; or
(III) all-terrain type III vehicle as defined in Section 41-22-2;
(B) is required to be registered in accordance with Title 41, Chapter 22, Off-highway Vehicles; and
(C) has:
(I) an engine with more than 150 cubic centimeters displacement;
(II) a motor that produces more than five horsepower; or
(III) an electric motor; and
(ii) notwithstanding Subsection (1)(a)(i), "all-terrain vehicle" does not include a snowmobile.
(b) "Camper" means a camper:
(i) as defined in Section 41-1a-102; and
(ii) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2, Registration.
(c)
(i) "Canoe" means a vessel that:
(A) is long and narrow;
(B) has curved sides; and
(C) is tapered:
(I) to two pointed ends; or
(II) to one pointed end and is blunt on the other end; and
(ii) "canoe" includes:
(A) a collapsible inflatable canoe;
(B) a kayak;
(C) a racing shell;
(D) a rowing scull; or
(E) notwithstanding the definition of vessel in Subsection (1)(cc), a canoe with an outboard motor.
(d) "Dealer" means the same as that term is defined in Section 41-1a-102.
(e) "Jon boat" means a vessel that:
(i) has a square bow; and
(ii) has a flat bottom.
(f) "Motor vehicle" means the same as that term is defined in Section 41-22-2.
(g) "Other motorcycle" means a motor vehicle that:
(i) is:
(A) a motorcycle as defined in Section 41-1a-102; and
(B) designed primarily for use and operation over unimproved terrain;
(ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2, Registration; and
(iii) has:
(A) an engine with more than 150 cubic centimeters displacement; or
(B) a motor that produces more than five horsepower.
(h)
(i) "Other trailer" means a portable vehicle without motive power that is primarily used:
(A) to transport tangible personal property; and
(B) for a purpose other than a commercial purpose; and
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for purposes of Subsection (1)(h)(i)(B), the commission may by rule define what constitutes a purpose other than a commercial purpose.
(i) "Outboard motor" means the same as that term is defined in Section 41-1a-102.
(j) "Park model recreational vehicle" means the same as that term is defined in Section 41-1a-102.
(k) "Personal watercraft" means a personal watercraft:
(i) as defined in Section 73-18-2; and
(ii) that is required to be registered in accordance with Title 73, Chapter 18, State Boating Act.
(l)
(i) "Pontoon" means a vessel that:
(A) is:
(I) supported by one or more floats; and
(II) propelled by either inboard or outboard power; and
(B) is not:
(I) a houseboat; or
(II) a collapsible inflatable vessel; and
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "houseboat."
(m) "Qualifying adjustment, exemption, or reduction" means an adjustment, exemption, or reduction:
(i) of all or a portion of a qualifying payment;
(ii) granted by a county during the refund period; and
(iii) received by a qualifying person.
(n)
(i) "Qualifying payment" means the payment made:
(A) of a uniform statewide fee in accordance with this section:
(I) by a qualifying person;
(II) to a county; and
(III) during the refund period; and
(B) on an item of qualifying tangible personal property; and
(ii) if a qualifying person received a qualifying adjustment, exemption, or reduction for an item of qualifying tangible personal property, the qualifying payment for that qualifying tangible personal property is equal to the difference between:
(A) the payment described in this Subsection (1)(n) for that item of qualifying tangible personal property; and
(B) the amount of the qualifying adjustment, exemption, or reduction.
(o) "Qualifying person" means a person that paid a uniform statewide fee:
(i) during the refund period;
(ii) in accordance with this section; and
(iii) on an item of qualifying tangible personal property.
(p) "Qualifying tangible personal property" means a:
(i) qualifying vehicle; or
(ii) qualifying watercraft.
(q) "Qualifying vehicle" means:
(i) an all-terrain vehicle with an engine displacement that is 100 or more cubic centimeters but 150 or less cubic centimeters;
(ii) an other motorcycle with an engine displacement that is 100 or more cubic centimeters but 150 or less cubic centimeters;
(iii) a small motor vehicle with an engine displacement that is 100 or more cubic centimeters but 150 or less cubic centimeters;
(iv) a snowmobile with an engine displacement that is 100 or more cubic centimeters but 150 or less cubic centimeters; or
(v) a street motorcycle with an engine displacement that is 100 or more cubic centimeters but 150 or less cubic centimeters.
(r) "Qualifying watercraft" means a:
(i) canoe;
(ii) collapsible inflatable vessel;
(iii) jon boat;
(iv) pontoon;
(v) sailboat; or
(vi) utility boat.
(s) "Refund period" means the time period:
(i) beginning on January 1, 2006; and
(ii) ending on December 29, 2006.
(t) "Sailboat" means a sailboat as defined in Section 73-18-2.
(u)
(i) "Small motor vehicle" means a motor vehicle that:
(A) is required to be registered in accordance with Title 41, Motor Vehicles; and
(B) has:
(I) an engine with 150 or less cubic centimeters displacement; or
(II) a motor that produces five or less horsepower; and
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule develop a process for an owner of a motor vehicle to certify whether the motor vehicle has:
(A) an engine with 150 or less cubic centimeters displacement; or
(B) a motor that produces five or less horsepower.
(v) "Snowmobile" means a motor vehicle that:
(i) is a snowmobile as defined in Section 41-22-2;
(ii) is required to be registered in accordance with Title 41, Chapter 22, Off-highway Vehicles; and
(iii) has:
(A) an engine with more than 150 cubic centimeters displacement; or
(B) a motor that produces more than five horsepower.
(w) "Street-legal all-terrain vehicle" means the same as that term is defined in Section 41-6a-102.
(x) "Street motorcycle" means a motor vehicle that:
(i) is:
(A) a motorcycle as defined in Section 41-1a-102; and
(B) designed primarily for use and operation on highways;
(ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2, Registration; and
(iii) has:
(A) an engine with more than 150 cubic centimeters displacement; or
(B) a motor that produces more than five horsepower.
(y) "Tangible personal property owner" means a person that owns an item of qualifying tangible personal property.
(z) "Tent trailer" means a portable vehicle without motive power that:
(i) is constructed with collapsible side walls that:
(A) fold for towing by a motor vehicle; and
(B) unfold at a campsite;
(ii) is designed as a temporary dwelling for travel, recreational, or vacation use;
(iii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2, Registration; and
(iv) does not require a special highway movement permit when drawn by a self-propelled motor vehicle.
(aa)
(i) Except as provided in Subsection (1)(aa)(ii), "travel trailer" means a travel trailer:
(A) as defined in Section 41-1a-102; and
(B) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2, Registration; and
(ii) notwithstanding Subsection (1)(aa)(i), "travel trailer" does not include:
(A) a camper; or
(B) a tent trailer.
(bb)
(i) "Utility boat" means a vessel that:
(A) has:
(I) two or three bench seating;
(II) an outboard motor; and
(III) a hull made of aluminum, fiberglass, or wood; and
(B) does not have:
(I) decking;
(II) a permanent canopy; or
(III) a floor other than the hull; and
(ii) notwithstanding Subsection (1)(bb)(i), "utility boat" does not include a collapsible inflatable vessel.
(cc) "Vessel" means a vessel:
(i) as defined in Section 73-18-2, including an outboard motor of the vessel; and
(ii) that is required to be registered in accordance with Title 73, Chapter 18, State Boating Act.
(2)
(a) In accordance with Utah Constitution Article XIII, Section 2, Subsection (6), beginning on January 1, 2006, the tangible personal property described in Subsection (2)(b) is:
(i) exempt from the tax imposed by Section 59-2-103; and
(ii) in lieu of the tax imposed by Section 59-2-103, subject to uniform statewide fees as provided in this section.
(b) The following tangible personal property applies to Subsection (2)(a) if that tangible personal property is required to be registered with the state:
(i) an all-terrain vehicle;
(ii) a camper;
(iii) an other motorcycle;
(iv) an other trailer;
(v) a personal watercraft;
(vi) a small motor vehicle;
(vii) a snowmobile;
(viii) a street motorcycle;
(ix) a tent trailer;
(x) a travel trailer;
(xi) a park model recreational vehicle; and
(xii) a vessel if that vessel is less than 31 feet in length as determined under Subsection (8).
(3) Except as provided in Subsection (4) and for purposes of this section, the uniform statewide fees are:
(a) for a snowmobile:
| | Age of Snowmobile | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $10 | | | 9 or more years but less than 12 years | $20 | | | 6 or more years but less than 9 years | $30 | | | 3 or more years but less than 6 years | $35 | | | Less than 3 years | $45 |
(b) for an all-terrain vehicle that is not a street-legal all-terrain vehicle or another motorcycle:
| | Age of All-Terrain Vehicle or Other Motorcycle Uniform Statewide Fee | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $4 | | | 9 or more years but less than 12 years | $8 | | | 6 or more years but less than 9 years | $12 | | | 3 or more years but less than 6 years | $14 | | | Less than 3 years | $18 |
(c) for a street-legal all-terrain vehicle:
| | Age of Street-Legal All-Terrain Vehicle | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $4 | | | 9 or more years but less than 12 years | $14 | | | 6 or more years but less than 9 years | $20 | | | 3 or more years but less than 6 years | $28 | | | Less than 3 years | $38 |
(d) for a camper or a tent trailer:
| | Age of Camper or Tent Trailer | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $10 | | | 9 or more years but less than 12 years | $25 | | | 6 or more years but less than 9 years | $35 | | | 3 or more years but less than 6 years | $50 | | | Less than 3 years | $70 |
(e) for an other trailer:
| | Age of Other Trailer | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $10 | | | 9 or more years but less than 12 years | $15 | | | 6 or more years but less than 9 years | $20 | | | 3 or more years but less than 6 years | $25 | | | Less than 3 years | $30 |
(f) for a personal watercraft:
| | Age of Personal Watercraft | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $5 | | | 9 or more years but less than 12 years | $13 | | | 6 or more years but less than 9 years | $18 | | | 3 or more years but less than 6 years | $23 | | | Less than 3 years | $28 |
(g) for a small motor vehicle:
| | Age of Small Motor Vehicle | Uniform Statewide Fee | | --- | --- | --- | | | 6 or more years | $10 | | | 3 or more years but less than 6 years | $15 | | | Less than 3 years | $25 |
(h) for a street motorcycle:
| | Age of Street Motorcycle | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $10 | | | 9 or more years but less than 12 years | $35 | | | 6 or more years but less than 9 years | $50 | | | 3 or more years but less than 6 years | $70 | | | Less than 3 years | $95 |
(i) for a travel trailer or park model recreational vehicle:
| | Age of Travel Trailer or Park Model Recreational Vehicle | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $20 | | | 9 or more years but less than 12 years | $65 | | | 6 or more years but less than 9 years | $90 | | | 3 or more years but less than 6 years | $135 | | | Less than 3 years | $175 |
(j) $5 regardless of the age of the vessel if the vessel is:
(i) less than 15 feet in length;
(ii) a canoe;
(iii) a jon boat; or
(iv) a utility boat;
(k) for a collapsible inflatable vessel, pontoon, or sailboat, regardless of age:
| | Length of Vessel | Uniform Statewide Fee | | --- | --- | --- | | | 15 feet or more in length but less than 19 feet in length | $8 | | | 19 feet or more in length but less than 23 feet in length | $13 | | | 23 feet or more in length but less than 27 feet in length | $20 | | | 27 feet or more in length but less than 31 feet in length | $38 |
(l) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon, sailboat, or utility boat, that is 15 feet or more in length but less than 19 feet in length:
| | Age of Vessel | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $13 | | | 9 or more years but less than 12 years | $33 | | | 6 or more years but less than 9 years | $40 | | | 3 or more years but less than 6 years | $55 | | | Less than 3 years | $75 |
(m) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon, sailboat, or utility boat, that is 19 feet or more in length but less than 23 feet in length:
| | Age of Vessel | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $25 | | | 9 or more years but less than 12 years | $60 | | | 6 or more years but less than 9 years | $88 | | | 3 or more years but less than 6 years | $110 | | | Less than 3 years | $138 |
(n) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon, sailboat, or utility boat, that is 23 feet or more in length but less than 27 feet in length:
| | Age of Vessel | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $50 | | | 9 or more years but less than 12 years | $90 | | | 6 or more years but less than 9 years | $120 | | | 3 or more years but less than 6 years | $155 | | | Less than 3 years | $200 |
(o) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon, sailboat, or utility boat, that is 27 feet or more in length but less than 31 feet in length:
| | Age of Vessel | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $60 | | | 9 or more years but less than 12 years | $125 | | | 6 or more years but less than 9 years | $175 | | | 3 or more years but less than 6 years | $250 | | | Less than 3 years | $350 |
(4) For registrations under Section 41-1a-215.5, the uniform fee for purposes of this section is as follows:
(a) for a street motorcycle:
| | Age of Street Motorcycle | Uniform Statewide Fee | | --- | --- | --- | | | 12 or more years | $7.75 | | | 9 or more years but less than 12 years | $27 | | | 6 or more years but less than 9 years | $38.50 | | | 3 or more years but less than 6 years | $54 | | | Less than 3 years | $73 |
(b) for a small motor vehicle:
| | Age of Small Motor Vehicle | Uniform Statewide Fee | | --- | --- | --- | | | 6 or more years | $7.75 | | | 3 or more years but less than 6 years | $11.50 | | | Less than 3 years | $19.25 |
(5) Notwithstanding Section 59-2-407, tangible personal property subject to the uniform statewide fees imposed by this section that is brought into the state shall, as a condition of registration, be subject to the uniform statewide fees unless all property taxes or uniform fees imposed by the state of origin have been paid for the current calendar year.
(6)
(a) Subject to Subsection (6)(b), for a vehicle registered for a 24-month period as provided in Section 41-1a-215.5, the uniform statewide fee amounts imposed by this section are double the amounts due for the same vehicle registered for a 12-month period.
(b) For a vehicle registered for a 24-month period as provided in Section 41-1a-215.5, if the 24-month term extends from one age bracket to another age bracket as described in this section, the person shall pay the sum of:
(i) the uniform statewide fee amount for the first year corresponding to the age bracket applicable for the first 12 months of the registration period; and
(ii) the uniform statewide fee amount for the second year corresponding to the age bracket applicable for the second 12 months of the registration period.
(7)
(a) The revenues collected in each county from the uniform statewide fees imposed by this section shall be distributed by the county to each taxing entity in which each item of tangible personal property subject to the uniform statewide fees is located in the same proportion in which revenues collected from the ad valorem property tax are distributed.
(b) Each taxing entity described in Subsection (7)(a) that receives revenues from the uniform statewide fees imposed by this section shall distribute the revenues in the same proportion in which revenues collected from the ad valorem property tax are distributed.
(8)
(a) For purposes of the uniform statewide fee imposed by this section, the length of a vessel shall be determined as provided in this Subsection (8).
(b)
(i) Except as provided in Subsection (8)(b)(ii), the length of a vessel shall be measured as follows:
(A) the length of a vessel shall be measured in a straight line; and
(B) the length of a vessel is equal to the distance between the bow of the vessel and the stern of the vessel.
(ii) Notwithstanding Subsection (8)(b)(i), the length of a vessel may not include the length of:
(A) a swim deck;
(B) a ladder;
(C) an outboard motor; or
(D) an appurtenance or attachment similar to Subsections (8)(b)(ii)(A) through (C) as determined by the commission by rule.
(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define what constitutes an appurtenance or attachment similar to Subsections (8)(b)(ii)(A) through (C).
(c) The length of a vessel:
(i)
(A) for a new vessel, is the length:
(I) listed on the manufacturer's statement of origin if the length of the vessel measured under Subsection (8)(b) is equal to the length of the vessel listed on the manufacturer's statement of origin; or
(II) listed on a form submitted to the commission by a dealer in accordance with Subsection (8)(d) if the length of the vessel measured under Subsection (8)(b) is not equal to the length of the vessel listed on the manufacturer's statement of origin; or
(B) for a vessel other than a new vessel, is the length:
(I) corresponding to the model number if the length of the vessel measured under Subsection (8)(b) is equal to the length of the vessel determined by reference to the model number; or
(II) listed on a form submitted to the commission by an owner of the vessel in accordance with Subsection (8)(d) if the length of the vessel measured under Subsection (8)(b) is not equal to the length of the vessel determined by reference to the model number; and
(ii)
(A) is determined at the time of the:
(I) first registration as defined in Section 41-1a-102 that occurs on or after January 1, 2006; or
(II) first renewal of registration that occurs on or after January 1, 2006; and
(B) may be determined after the time described in Subsection (8)(c)(ii)(A) only if the commission requests that a dealer or an owner submit a form to the commission in accordance with Subsection (8)(d).
(d)
(i) A form under Subsection (8)(c) shall:
(A) be developed by the commission;
(B) be provided by the commission to:
(I) a dealer; or
(II) an owner of a vessel;
(C) provide for the reporting of the length of a vessel;
(D) be submitted to the commission at the time the length of the vessel is determined in accordance with Subsection (8)(c)(ii);
(E) be signed by:
(I) if the form is submitted by a dealer, that dealer; or
(II) if the form is submitted by an owner of the vessel, an owner of the vessel; and
(F) include a certification that the information set forth in the form is true.
(ii) A certification made under Subsection (8)(d)(i)(F) is considered as if made under oath and subject to the same penalties as provided by law for perjury.
(iii)
(A) A dealer or an owner that submits a form to the commission under Subsection (8)(c) is considered to have given the dealer's or owner's consent to an audit or review by:
(I) the commission;
(II) the county assessor; or
(III) the commission and the county assessor.
(B) The consent described in Subsection (8)(d)(iii)(A) is a condition to the acceptance of any form.
(9)
(a) A county that collected a qualifying payment from a qualifying person during the refund period shall issue a refund to the qualifying person as described in Subsection (9)(b) if:
(i) the difference described in Subsection (9)(b) is $1 or more; and
(ii) the qualifying person submitted a form in accordance with Subsections (9)(c) and (d).
(b) The refund amount shall be calculated as follows:
(i) for a qualifying vehicle, the refund amount is equal to the difference between:
(A) the qualifying payment the qualifying person paid on the qualifying vehicle during the refund period; and
(B) the amount of the statewide uniform fee:
(I) for that qualifying vehicle; and
(II) that the qualifying person would have been required to pay:
(Aa) during the refund period; and
(Bb) in accordance with this section had Laws of Utah 2006, Fifth Special Session, Chapter 3, Section 1, been in effect during the refund period; and
(ii) for a qualifying watercraft, the refund amount is equal to the difference between:
(A) the qualifying payment the qualifying person paid on the qualifying watercraft during the refund period; and
(B) the amount of the statewide uniform fee:
(I) for that qualifying watercraft;
(II) that the qualifying person would have been required to pay:
(Aa) during the refund period; and
(Bb) in accordance with this section had Laws of Utah 2006, Fifth Special Session, Chapter 3, Section 1, been in effect during the refund period.
(c) Before the county issues a refund to the qualifying person in accordance with Subsection (9)(a) the qualifying person shall submit a form to the county to verify the qualifying person is entitled to the refund.
(d)
(i) A form under Subsection (9)(c) or (10) shall:
(A) be developed by the commission;
(B) be provided by the commission to the counties;
(C) be provided by the county to the qualifying person or tangible personal property owner;
(D) provide for the reporting of the following:
(I) for a qualifying vehicle:
(Aa) the type of qualifying vehicle; and
(Bb) the amount of cubic centimeters displacement;
(II) for a qualifying watercraft:
(Aa) the length of the qualifying watercraft;
(Bb) the age of the qualifying watercraft; and
(Cc) the type of qualifying watercraft;
(E) be signed by the qualifying person or tangible personal property owner; and
(F) include a certification that the information set forth in the form is true.
(ii) A certification made under Subsection (9)(d)(i)(F) is considered as if made under oath and subject to the same penalties as provided by law for perjury.
(iii)
(A) A qualifying person or tangible personal property owner that submits a form to a county under Subsection (9)(c) or (10) is considered to have given the qualifying person's consent to an audit or review by:
(I) the commission;
(II) the county assessor; or
(III) the commission and the county assessor.
(B) The consent described in Subsection (9)(d)(iii)(A) is a condition to the acceptance of any form.
(e) The county shall make changes to the commission's records with the information received by the county from the form submitted in accordance with Subsection (9)(c).
(10) A county shall change its records regarding an item of qualifying tangible personal property if the tangible personal property owner submits a form to the county in accordance with Subsection (9)(d).
(11)
(a) For purposes of this Subsection (11), "owner of tangible personal property" means a person that was required to pay a uniform statewide fee:
(i) during the refund period;
(ii) in accordance with this section; and
(iii) on an item of tangible personal property subject to the uniform statewide fees imposed by this section.
(b) A county that collected revenues from uniform statewide fees imposed by this section during the refund period shall notify an owner of tangible personal property:
(i) of the tangible personal property classification changes made to this section pursuant to Laws of Utah 2006, Fifth Special Session, Chapter 3, Section 1;
(ii) that the owner of tangible personal property may obtain and file a form to modify the county's records regarding the owner's tangible personal property; and
(iii) that the owner may be entitled to a refund pursuant to Subsection (9).
(1) For purposes of this section, "motor home" means:
(a) a motor home, as defined in Section 13-14-102, that is required to be registered with the state; or
(b) a self-propelled vehicle that is:
(i) modified for primary use as a temporary dwelling for travel, recreational, or vacation use; and
(ii) required to be registered with the state.
(2) In accordance with Utah Constitution Article XIII, Section 2, Subsection (6), a motor home is:
(a) exempt from the tax imposed by Section 59-2-103; and
(b) in lieu of the tax imposed by Section 59-2-103, subject to a uniform statewide fee described in Subsection (3).
(3) The uniform statewide fee for a motor home is:
| | Age of Motor Home | Uniform Statewide Fee | | --- | --- | --- | | | 15 or more years | $90 | | | 12 or more years but less than 15 years | $180 | | | 9 or more years but less than 12 years | $315 | | | 6 or more years but less than 9 years | $425 | | | 3 or more years but less than 6 years | $540 | | | Less than 3 years | $690 |
(4) Notwithstanding Section 59-2-407, a motor home subject to the uniform statewide fee imposed by this section that is brought into the state shall, as a condition of registration, be subject to the uniform statewide fee unless all property taxes or uniform fees imposed by the state of origin have been paid for the current calendar year.
(5)
(a) Each county shall distribute the revenue collected by the county from the uniform statewide fee imposed by this section to each taxing entity in which each motor home subject to the uniform statewide fee is located in the same proportion in which revenue collected from the ad valorem property tax is distributed.
(b) Each taxing entity described in Subsection (5)(a) that receives revenue from the uniform statewide fee imposed by this section shall distribute the revenue in the same proportion in which revenue collected from the ad valorem property tax is distributed.
(6) An appeal relating to the uniform statewide fee imposed on a motor home by this section shall be filed pursuant to Section 59-2-1005.
(1)
(a) For the purposes of efficiency in the collection of the uniform fee required by this section, the commission shall enter into a contract for the collection of the uniform fees required under Sections 59-2-405, 59-2-405.1, 59-2-405.2, and 59-2-405.3, and certain fees required by Title 41, Motor Vehicles.
(b) The contract required by this section shall, at the county's option, provide for one of the following collection agreements:
(i) the collection by the commission of:
(A) the uniform fees required under Sections 59-2-405, 59-2-405.1, 59-2-405.2, and 59-2-405.3; and
(B) all fees listed in Subsection (1)(c); or
(ii) the collection by the county of:
(A) the uniform fees required under Sections 59-2-405, 59-2-405.1, 59-2-405.2, and 59-2-405.3; and
(B) all fees listed in Subsection (1)(c).
(c) For purposes of Subsections (1)(b)(i)(B) and (1)(b)(ii)(B), the fees that are subject to the contractual agreement required by this section are the following fees imposed by Title 41, Motor Vehicles:
(i) registration fees for vehicles, mobile homes, manufactured homes, boats, and off-highway vehicles, with the exception of fleet and proportional registration;
(ii) title fees for vehicles, mobile homes, manufactured homes, boats, and off-highway vehicles;
(iii) plate fees for vehicles;
(iv) permit fees; and
(v) impound fees.
(d) A county may change the election it makes pursuant to Subsection (1)(b) by providing written notice of the change to the commission at least 18 months before the change shall take effect.
(2) The contract shall provide that the party contracting to perform services shall:
(a) be responsible for the collection of:
(i) the uniform fees under Sections 59-2-405, 59-2-405.1, 59-2-405.2, and 59-2-405.3; and
(ii) any fees described in Subsection (1)(c) as agreed to in the contract;
(b) utilize the documents and forms, guidelines, practices, and procedures that meet the contract specifications;
(c) meet the performance standards and comply with applicable training requirements specified in the rules made under Subsection (8)(a); and
(d) be subject to a penalty of 1/2 the difference between the reimbursement fee specified under Subsection (3) and the reimbursement fee for fiscal year 1997-98 if performance is below the performance standards specified in the rules made under Subsection (8)(a).
(3)
(a) The commission shall recommend a reimbursement fee for collecting the fees as provided in Subsection (2)(a), except that the commission may not collect a reimbursement fee on a state-assessed commercial vehicle described in Subsection 59-2-405.1(2)(a)(ii).
(b) The reimbursement fee shall be based on two dollars per standard unit for the first 5,000 standard units in each county and one dollar per standard unit for all other standard units and shall be annually adjusted by the commission beginning July 1, 1999.
(c) The adjustment shall be equal to any increase in the Consumer Price Index for all urban consumers, prepared by the United States Bureau of Labor Statistics, during the preceding calendar year.
(d) The reimbursement fees under this Subsection (3) shall be appropriated by the Legislature.
(4) All counties that elect to collect the uniform fees described in Subsection (1)(b)(ii)(A) and any other fees described in Subsection (1)(c) as provided by contract shall be subject to similar contractual terms.
(5) The party performing the collection services by contract shall use appropriate automated systems software and equipment compatible with the system used by the other contracting party in order to ensure the integrity of the current motor vehicle data base and county tax systems, or successor data bases and systems.
(6) If the county elects not to collect the uniform fees described in Subsection (1)(b)(ii)(A) and the fees described in Subsection (1)(c):
(a) the commission shall:
(i) collect the uniform fees described in Subsection (1)(b)(ii)(A) and the fees described in Subsection (1)(c) in each county or regional center as negotiated by the counties with the commission in accordance with the requirements of this section; and
(ii) provide information to the county in a format and media consistent with the county's requirements; and
(b) the county shall pay the commission a reimbursement fee as provided in Subsection (3).
(7) This section shall not limit the authority given to the county in Section 59-2-1302.
(8)
(a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules specifying the performance standards and applicable training requirements for all contracts required by this section.
(b) Beginning on July 1, 1998, each new contract entered into under this section shall be subject to the rules made under Subsection (8)(a).
(1)
(a) Except as provided in Subsection 59-2-405(4) or 59-2-405.3(4), the uniform fee authorized in Sections 59-2-405, 59-2-405.3, and 72-10-110.5 shall be assessed at the same time and in the same manner as ad valorem personal property taxes under Chapter 2, Part 13, Collection of Taxes, except that in listing personal property subject to the uniform fee with real property as permitted by Section 59-2-1302, the assessor or, if this duty has been reassigned in an ordinance under Section 17-74-102, the treasurer shall list only the amount of the uniform fee due, and not the taxable value of the property subject to the uniform fee.
(b) Except as provided in Subsections 59-2-405.1(4), 59-2-405.2(5), and 59-2-405.3(4), the uniform fee imposed by Section 59-2-405.1, 59-2-405.2, or 59-2-405.3 shall be assessed at the time of:
(i) registration as defined in Section 41-1a-102; and
(ii) renewal of registration.
(2) The remedies for nonpayment of the uniform fees authorized by Sections 59-2-405, 59-2-405.1, 59-2-405.2, 59-2-405.3, and 72-10-110.5 shall be the same as those provided in Chapter 2, Part 13, Collection of Taxes, for nonpayment of ad valorem personal property taxes.
(3) Any disclosure of information to a county for purposes of distributing a uniform fee under this part is not subject to Title 75E, Chapter 11, Safe at Home Program.
As used in this part:
(1) "Actively devoted to agricultural use" means that the land in agricultural use produces in excess of 50% of the average agricultural production per acre:
(a) as determined under Section 59-2-503; and
(b) for:
(i) the given type of land; and
(ii) the given county or area.
(2) "Conservation easement rollback tax" means the tax imposed under Section 59-2-506.5.
(3) "Identical legal ownership" means legal ownership held by:
(a) identical legal parties; or
(b) identical legal entities.
(4) "Land in agricultural use" means:
(a) land devoted to the raising of useful plants and animals with a reasonable expectation of profit, including:
(i) forages and sod crops;
(ii) grains and feed crops;
(iii) livestock as defined in Section 59-2-102;
(iv) trees and fruits; or
(v) vegetables, nursery, floral, and ornamental stock; or
(b) land devoted to and meeting the requirements and qualifications for payments or other compensation under a crop-land retirement program with an agency of the state or federal government.
(5) "Other eligible acreage" means land that is:
(a) five or more contiguous acres;
(b) eligible for assessment under this part; and
(c)
(i) located in the same county as land described in Subsection 59-2-503(1)(a); or
(ii) contiguous across county lines with land described in Subsection 59-2-503(1)(a) as provided in Section 59-2-512.
(6) "Platted" means land in which:
(a) parcels of ground are laid out and mapped by their boundaries, course, and extent; and
(b) the plat has been approved as provided in Section 10-20-804 or 17-79-704.
(7) "Rollback tax" means the tax imposed under Section 59-2-506.
(8) "Withdrawn from this part" means that land that has been assessed under this part is no longer assessed under this part or eligible for assessment under this part for any reason including that:
(a) an owner voluntarily requests that the land be withdrawn from this part;
(b) the land is no longer actively devoted to agricultural use;
(c)
(i) the land has a change in ownership; and
(ii)
(A) the new owner fails to apply for assessment under this part as required by Section 59-2-509; or
(B)
(I) an owner applies for assessment under this part as required by Section 59-2-509; and
(II) the land does not meet the requirements of this part to be assessed under this part;
(d)
(i) the legal description of the land changes; and
(ii)
(A) an owner fails to apply for assessment under this part as required by Section 59-2-509; or
(B)
(I) an owner applies for assessment under this part as required by Section 59-2-509; and
(II) the land does not meet the requirements of this part to be assessed under this part;
(e) if required by the county assessor, the owner of the land:
(i) fails to file a new application as provided in Subsection 59-2-508(5); or
(ii) fails to file a signed statement as provided in Subsection 59-2-508(5); or
(f) except as provided in Section 59-2-503, the land fails to meet a requirement of Section 59-2-503.
(1) Subject to Subsections (2) through (10), for general property tax purposes, land may be assessed on the basis of the value that the land has for agricultural use if the land:
(a) is not less than five contiguous acres in area;
(b) is actively devoted to agricultural use; and
(c) has been actively devoted to agricultural use for at least two successive years immediately preceding the tax year for which the land is being assessed under this part.
(2) In determining whether land is actively devoted to agricultural use, production per acre for a given county or area and a given type of land shall be determined by using the first applicable of the following:
(a) production levels reported in the current publication of the Utah Agricultural Statistics;
(b) current crop budgets developed and published by Utah State University; and
(c) other acceptable standards of agricultural production designated by the commission by rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(3)
(a) Notwithstanding Subsection (1)(a) and except as provided in Subsection (3)(b), land that is less than five contiguous acres in area may be assessed on the basis of the value that the land has for agricultural use if:
(i) the land is devoted to agricultural use in conjunction with other eligible acreage; and
(ii) the land and the other eligible acreage described in Subsection (3)(a)(i) have identical legal ownership.
(b)
(i) Land on which a residence is located may not be assessed on the basis of the value that the land has for agricultural use under Subsection (3)(a) unless the land significantly contributes to overall agricultural operations.
(ii) Land devoted to agricultural use in conjunction with land on which a residence is located is excluded from any determination under Subsection (3)(b)(i) as to whether the land on which a residence is located significantly contributes to overall agricultural operations.
(iii)
(A) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules prescribing the circumstances under which land on which a residence is located significantly contributes to overall agricultural operations under Subsection (3)(b)(i).
(B) The commission shall report to the Revenue and Taxation Interim Committee on any rules promulgated under this Subsection (3)(b)(iii).
(4) Land may be assessed on the basis of the land's agricultural value if the land:
(a) is subject to the privilege tax imposed by Section 59-4-101;
(b) is owned by the state or any of the state's political subdivisions; and
(c) meets the requirements of Subsection (1).
(5) Notwithstanding Subsection (1)(a), the commission or a county board of equalization may grant a waiver of the acreage limitation for land upon:
(a) appeal by the owner; and
(b) submission of proof that 80% or more of the owner's, purchaser's, or lessee's income is derived from agricultural products produced on the property in question.
(6) Notwithstanding Subsection (1)(a), the commission or a county board of equalization shall grant a waiver of the acreage limitation for land upon:
(a) appeal by the owner; and
(b) submission of proof that:
(i) the failure to meet the acreage requirement arose solely as a result of an acquisition by a public utility or a governmental entity by:
(A) eminent domain; or
(B) the threat or imminence of an eminent domain proceeding; and
(ii) the land is actively devoted to agricultural use.
(7)
(a) The commission or a county board of equalization may grant a waiver of the requirement that the land is actively devoted to agricultural use for the tax year for which the land is being assessed under this part upon:
(i) appeal by the owner; and
(ii) submission of proof that:
(A) the land was assessed on the basis of agricultural use for at least two years immediately preceding that tax year; and
(B) the failure to meet the agricultural production requirements for that tax year was due to no fault or act of the owner, purchaser, or lessee.
(b) As used in Subsection (7)(a), "fault" does not include:
(i) intentional planting of crops or trees which, because of the maturation period, do not give the owner, purchaser, or lessee a reasonable opportunity to satisfy the production levels required for land actively devoted to agricultural use; or
(ii) implementation of a bona fide range improvement program, crop rotation program, or other similar accepted cultural practices which do not give the owner, purchaser, or lessee a reasonable opportunity to satisfy the production levels required for land actively devoted to agricultural use.
(8) Land that otherwise qualifies for assessment under this part qualifies for assessment under this part in the first year the land resumes being actively devoted to agricultural use if:
(a) the land becomes ineligible for assessment under this part only as a result of a split estate mineral rights owner exercising the right to extract a mineral; and
(b) the land qualified for assessment under this part in the year immediately preceding the year the land became ineligible for assessment under this part only as a result of a split estate mineral rights owner exercising the right to extract a mineral.
(9) Land that otherwise qualifies under Subsection (1) to be assessed on the basis of the value that the land has for agricultural use does not lose that qualification by becoming subject to a forest stewardship plan developed under Section 65A-8a-106 under which the land is subject to a temporary period of limited use or nonuse.
(10)
(a) Notwithstanding Subsection (1) and except as provided in Subsection (10)(d), land in agricultural use that is intentionally allowed to lay fallow for one or more growing seasons qualifies for assessment under this part if the fallowing is conducted:
(i) during periods of limited water supply;
(ii) as part of a prudent farm management practice, including crop rotation, rotational grazing, or soil water management; or
(iii) to facilitate voluntary participation in a water management or agricultural water optimization program.
(b) If the owner of land assessed under this part fallows the land during any period in a calendar year, the owner may, on or before December 31 of the year in which the land is fallowed, provide to the county assessor written notice that:
(i) identifies the land that was fallowed during any period of the year in which the notice is provided, including the acreage of the fallowed land;
(ii) demonstrates how the land qualifies under Subsection (10)(a); and
(iii) specifies whether the owner intends to fallow the land during any period in the following calendar year, and, if so, the intended duration of the fallowing period.
(c)
(i) If the written notice under Subsection (10)(b) indicates that the owner intends to fallow the land during any period in the following calendar year, the county assessor may, within 45 days of receiving the written notice, require the owner to submit to the county assessor a land management plan in a form prescribed by the county assessor that:
(A) identifies the owner's objectives in fallowing the land for the intended duration of the fallowing period;
(B) provides adequate assurances to the county assessor that the fallowed land will become actively devoted to agricultural use upon the expiration of the intended fallowing period; and
(C) includes any other information required by the county assessor.
(ii) If the owner submits to the county assessor a land management plan for fallowed land that meets the requirements of Subsection (10)(c)(i), the county assessor may not require the owner to submit a new or additional land management plan for the same land within three years from the day on which the owner submitted the plan.
(d) Fallowed land is withdrawn from this part if:
(i) the county assessor determines that the land does not qualify under Subsection (10)(a);
(ii) the owner fails to return the fallowed land to active agricultural use upon the expiration of the intended fallowing period as specified in the written notice; or
(iii) the owner fails to comply with the requirements of Subsection (10)(c), if a land management plan is required.
(1) Except as provided in Subsection (2), land may not be assessed under this part if the land is:
(a) part of a platted subdivision or planned unit development, with restrictions prohibiting its use for agricultural purposes with surface improvements in place, whether within or without a city; or
(b) platted with surface improvements in place that are not an integral part of agricultural use.
(2)
(a) If land has been platted with surface improvements in place, the land has been withdrawn from this part, and the owner is not able to transfer title to the platted property, or continue development of the platted property due to economic circumstances, or some other reasonable cause, the owner may petition the county assessor for reinstatement under this part for assessment purposes as land in agricultural use without vacating the subdivision plat.
(b) The county assessor may grant the petition for reinstatement described in Subsection (2)(a) if the land is actively devoted to agricultural use.
(3) For purposes of this section:
(a) "platted with surface improvements in place" means that:
(i) land is platted; and
(ii) all surface improvements necessary for the land to be sold as a lot or a unit are in place:
(A) regardless of whether or not it is the owner of the land who puts the surface improvements in place; and
(B) as determined by the:
(I) county legislative body if the land is located in an unincorporated area of the county;
(II) city legislative body if the land is located in a city; or
(III) town legislative body if the land is located in a town; and
(b) "surface improvement" means:
(i) a curb;
(ii) a gutter; or
(iii) pavement.
(1)
(a) The county assessor shall consider only those indicia of value that the land has for agricultural use as determined by the commission when assessing land:
(i) that meets the requirements of Section 59-2-503 to be assessed under this part; and
(ii) for which the owner has:
(A) made a timely application in accordance with Section 59-2-508 for assessment under this part for the tax year for which the land is being assessed; and
(B) obtained approval of the application described in Subsection (1)(a)(ii)(A) from the county assessor.
(b) If land that becomes subject to a conservation easement created in accordance with Title 57, Chapter 18, Land Conservation Easement Act, meets the requirements of Subsection (1)(a) for assessment under this part, the county assessor shall consider only those indicia of value that the land has for agricultural use in accordance with Subsection (1)(a) when assessing the land.
(2) In addition to the value determined in accordance with Subsection (1), the fair market value assessment shall be included on the notices described in:
(a) Section 59-2-919.1; and
(b) Section 59-2-1317.
(3) The county board of equalization shall review the agricultural use value and fair market value assessments each year as provided under Section 59-2-1001.
(1) Except as provided in this section, Section 59-2-506.5, or Section 59-2-511, if land is withdrawn from this part, the land is subject to a rollback tax imposed in accordance with this section.
(2)
(a) An owner shall notify the county assessor that land is withdrawn from this part within 120 days after the day on which the land is withdrawn from this part.
(b) An owner that fails to notify the county assessor under Subsection (2)(a) that land is withdrawn from this part is subject to a penalty equal to the greater of:
(i) $10; or
(ii) 2% of the rollback tax due for the last year of the rollback period.
(3)
(a) The county assessor shall determine the amount of the rollback tax by computing the difference for the rollback period described in Subsection (3)(b) between:
(i) the tax paid while the land was assessed under this part; and
(ii) the tax that would have been paid had the property not been assessed under this part.
(b) For purposes of this section, the rollback period is a time period that:
(i) begins on the later of:
(A) the date the land is first assessed under this part; or
(B) five years preceding the day on which the county assessor mails the notice required by Subsection (5); and
(ii) ends the day on which the county assessor mails the notice required by Subsection (5).
(4)
(a) The county treasurer shall:
(i) collect the rollback tax; and
(ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien on the property has been satisfied by:
(A) preparing a document that certifies that the rollback tax lien on the property has been satisfied; and
(B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder for recordation.
(b) The county treasurer shall pay 100% of the rollback tax collected under this section to the county, which the county shall deposit and use in accordance with Section 17-41-602.
(5)
(a) The county assessor shall mail to an owner of the land that is subject to a rollback tax a notice that:
(i) the land is withdrawn from this part;
(ii) the land is subject to a rollback tax under this section; and
(iii) the rollback tax is delinquent if the owner of the land does not pay the tax on or before the due date listed on the notice described in this Subsection (5)(a).
(b)
(i) The rollback tax is due and payable within 60 days after the day on which the county assessor mails the notice required by Subsection (5)(a).
(ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that is withdrawn from this part does not pay the rollback tax on or before the due date listed on the notice described in Subsection (5)(a).
(6)
(a) Subject to Subsection (6)(b), the following are a lien on the land assessed under this part:
(i) the rollback tax; and
(ii) interest imposed in accordance with Subsection (7).
(b) The lien described in Subsection (6)(a) shall:
(i) arise upon the imposition of the rollback tax under this section;
(ii) end on the day on which the rollback tax and interest imposed in accordance with Subsection (7) are paid in full; and
(iii) relate back to the first day of the rollback period described in Subsection (3)(b).
(7)
(a) A delinquent rollback tax under this section shall accrue interest:
(i) from the date of delinquency until paid; and
(ii) at the interest rate established under Section 59-2-1331 and in effect on January 1 of the year in which the delinquency occurs.
(b) The county treasurer shall include in the notice required by Section 59-2-1317 a rollback tax that is delinquent on September 1 of any year and interest calculated on that delinquent amount through November 30 of the year in which the county treasurer provides the notice under Section 59-2-1317.
(8)
(a) Land that becomes ineligible for assessment under this part only as a result of an amendment to this part is not subject to the rollback tax if the owner of the land notifies the county assessor, in accordance with Subsection (2), that the land is withdrawn from this part.
(b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of an event other than an amendment to this part, whether voluntary or involuntary, is subject to the rollback tax.
(9) Except as provided in Section 59-2-511, land that becomes exempt from taxation under
Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land meets the requirements of Section 59-2-503 to be assessed under this part.
(10) Land that becomes ineligible for assessment under this part only as a result of a split estate mineral rights owner exercising the right to extract a mineral is not subject to the rollback tax:
(a)
(i) for the portion of the land required by a split estate mineral rights owner to extract a mineral if, after the split estate mineral rights owner exercises the right to extract a mineral, the portion of the property that remains in agricultural production still meets the acreage requirements of Section 59-2-503 for assessment under this part; or
(ii) for the entire acreage that would otherwise qualify for assessment under this part if, after the split estate mineral rights owner exercises the right to extract a mineral, the entire acreage that would otherwise qualify for assessment under this part no longer meets the acreage requirements of Section 59-2-503 for assessment under this part only due to the extraction of the mineral by the split estate mineral rights owner; and
(b) for the period of time that the property described in Subsection (10)(a) is ineligible for assessment under this part due to the extraction of a mineral by the split estate mineral rights owner.
(11)
(a) A portion of land withdrawn from this part is not subject to the rollback tax if the portion of land:
(i) qualifies for assessment under Part 17, Urban Farming Assessment Act; and
(ii) for the tax year immediately following withdrawal, the owner of the portion of land applies in accordance with Section 59-2-1707 for the land to be assessed under Part 17, Urban Farming Assessment Act.
(b) Any remaining portion of the withdrawn land that does not satisfy the requirements of Subsection (11)(a) is subject to the rollback tax.
(1)
(a) Notwithstanding Section 59-2-506 and subject to the requirements of this section, land is not subject to the rollback tax under Section 59-2-506, if:
(i) the land becomes subject to a conservation easement created in accordance with Title 57, Chapter 18, Land Conservation Easement Act;
(ii) the creation of the conservation easement described in Subsection (1)(a)(i) is considered to be a qualified conservation contribution for federal purposes under Section 170(h), Internal Revenue Code;
(iii) the land was assessed under this part in the tax year preceding the tax year that the land does not meet the requirements of Section 59-2-503;
(iv) after the creation of the conservation easement described in Subsection (1)(a)(i), the land does not meet the requirements of Section 59-2-503; and
(v) an owner of the land notifies the county assessor as provided in Subsection (1)(b).
(b) An owner of land described in Subsection (1)(a) shall notify the county assessor that the land meets the requirements of Subsection (1)(a) within 30 days after the day on which the land does not meet the requirements of Section 59-2-503.
(2)
(a) Except as provided in Subsection (4), if a conservation easement is terminated in accordance with Section 57-18-5:
(i) the land described in Subsection (1) is subject to a conservation easement rollback tax imposed in accordance with this section; or
(ii) if the land described in Subsection (1) is owned by a governmental entity as defined in Section 59-2-511, the land is subject to a one-time in lieu fee payment that is:
(A) in an amount equal to the conservation easement rollback tax imposed in accordance with this section; and
(B) except as provided in Subsection (2)(b), paid, collected, and distributed in the same manner as the conservation easement rollback tax imposed in accordance with this section.
(b) Notwithstanding Subsection (2)(a)(ii)(B), a one-time in lieu fee payment under Subsection (2)(a)(ii) is not a lien on the land described in Subsection (2)(a)(ii).
(c)
(i) The conservation easement rollback tax is an amount equal to 20 times the property tax imposed on the land for each year for the rollback period described in Subsection (2)(c)(ii).
(ii) For purposes of Subsection (2)(c)(i), the rollback period is a time period that:
(A) begins on the later of:
(I) the date the land became subject to a conservation easement; or
(II) five years preceding the day on which the county assessor mails the notice required by Subsection (3)(a); and
(B) ends the day on which the county assessor mails the notice required by Subsection (3)(a).
(d) An owner shall notify the county assessor that a conservation easement on land described in Subsection (1) has been terminated in accordance with Section 57-18-5 within 180 days after the day on which the conservation easement is terminated.
(3)
(a) If land is subject to a conservation easement rollback tax under Subsection (2), the county assessor shall mail to an owner of the land a notice that:
(i) the land is subject to a conservation easement rollback tax under this section; and
(ii) the conservation easement rollback tax is delinquent if the owner of the land does not pay the tax within 30 days after the day on which the county assessor mails the notice.
(b) The conservation easement rollback tax is:
(i) due and payable on the day the county assessor mails the notice required by Subsection (3)(a);
(ii) delinquent if an owner of the land that is subject to the conservation easement rollback tax does not pay the conservation easement rollback tax within 30 days after the day on which the county assessor mails the notice required by Subsection (3)(a); and
(iii) subject to the same:
(A) interest provisions of Subsection 59-2-506(7) that apply to the rollback tax; and
(B) notice requirements of Subsection 59-2-506(7) that apply to the rollback tax.
(c)
(i) Except as provided in Subsection (3)(c)(ii), the conservation easement rollback tax shall be paid, collected, subject to a lien, and distributed in a manner consistent with this section and Section 59-2-506.
(ii) Notwithstanding Subsection (3)(c)(i), a lien under Subsection (3)(c)(i) relates back to the day on which the conservation easement was terminated.
(4)
(a) Notwithstanding Subsection (2), land described in Subsection (2) is not subject to the conservation easement rollback tax or the one-time in lieu fee payment required by Subsection (2) if after the conservation easement is terminated in accordance with Section 57-18-5:
(i) an owner of the land applies for assessment of the land as land in agricultural use under this part within 30 days after the day on which the conservation easement is terminated; and
(ii) the application for assessment of the land described in Subsection (4)(a)(i) is approved within two years after the day on which the application was filed.
(b) Notwithstanding Subsection (4)(a), if the land described in Subsection (4)(a)(i) does not receive approval for assessment as land in agricultural use under this part within two years after the day on which the application was filed under Subsection (4)(a), an owner of the land shall:
(i) within 30 days after the day on which the two-year period expires, notify the county assessor that the two-year period expired; and
(ii) pay the conservation easement rollback tax or the one-time in lieu fee payment required by Subsection (2) as provided in this section.
(5) Land subject to a conservation easement created in accordance with Title 57, Chapter 18, Land Conservation Easement Act, is not subject to a conservation easement rollback tax or a one-time in lieu fee payment if the land is assessed under this part in accordance with Section 59-2-505.
(1)
(a) Land under barns, sheds, silos, cribs, greenhouses and like structures, lakes, dams, ponds, streams, and irrigation ditches and like facilities is included in determining the total area of land actively devoted to agricultural use.
(b) Land that is under a residence and land used in connection with a residence is excluded from the determination described in Subsection (1)(a).
(2) The following shall be valued, assessed, and taxed using the same standards, methods, and procedures that apply to other taxable structures and other land in the county:
(a) a structure, except as provided in Subsection (3), that is located on land in agricultural use;
(b) a residence and the land on which the residence is located; and
(c) land used in connection with a residence.
(3) A high tunnel, as defined in Section 10-20-613, is exempt from assessment for taxation purposes.
(1) If an owner of land eligible for assessment under this part wants the land to be assessed under this part, the owner shall submit an application to the county assessor of the county in which the land is located.
(2) An application required by Subsection (1) shall:
(a) be on a form:
(i) approved by the commission; and
(ii) provided to an owner:
(A) by the county assessor; and
(B) at the request of an owner;
(b) provide for the reporting of information related to this part;
(c) be submitted by:
(i) May 1 of the tax year in which assessment under Subsection (1) is requested if the land was not assessed under this part in the year before the application is submitted; or
(ii) by the date otherwise required by this part for land that prior to the application being submitted has been assessed under this part;
(d) be signed by all of the owners of the land that under the application would be assessed under this part;
(e) be accompanied by the prescribed fees made payable to the county recorder;
(f) include a certification by an owner that the facts set forth in the application or signed statement are true;
(g) include a statement that the application constitutes consent by the owners of the land to the creation of a lien upon the land as provided in this part; and
(h) be recorded by the county recorder.
(3) The application described in Subsection (2) constitutes consent by the owners of the land to the creation of a lien upon the land as provided in this part.
(4)
(a) If the county determines that an application that was timely filed is incomplete, the county shall:
(i) notify the owner of the incomplete application; and
(ii) allow the owner to complete the application within 30 days from the day on which the county provides notice to the owner.
(b) An application that has not been completed within 30 days of the day of the notice described in Subsection (4)(a) shall be considered denied.
(5)
(a) Once the application described in Subsection (1) has been approved, the county may:
(i) require, by written request of the county assessor, the owner to submit a new application or a signed statement that verifies that the land qualifies for assessment under this part; or
(ii) except as provided in Subsection (5)(b), require no additional signed statement or application for assessment under this part.
(b) A county shall require that an owner provide notice if land is withdrawn from this part:
(i) as provided in Section 59-2-506; or
(ii) for land that is subject to a conservation easement created in accordance with Section 59-2-506.5, as provided in Section 59-2-506.5.
(c) An owner shall submit an application or signed statement required under Subsection (5)(a) by the date specified in the written request of the county assessor for the application or signed statement.
(6) A certification under Subsection (2)(f) is considered as if made under oath and subject to the same penalties as provided by law for perjury.
(7)
(a) All owners applying for participation under this part and all purchasers or lessees signing statements under Subsection (8) are considered to have given their consent to field audit and review by:
(i) the commission;
(ii) the county assessor; or
(iii) the commission and the county assessor.
(b) The consent described in Subsection (7)(a) is a condition to the acceptance of any application or signed statement.
(8) Any owner of land eligible for assessment under this part, because a purchaser or lessee actively devotes the land to agricultural use as required by Section 59-2-503, may qualify the land for assessment under this part by submitting, with the application described in Subsection (2), a signed statement from that purchaser or lessee certifying those facts that would be necessary to meet the requirements of Section 59-2-503 for assessment under this part.
(1) Subject to the other provisions of this section, land assessed under this part may continue to be assessed under this part if the land continues to comply with the requirements of this part, regardless of whether the land continues to have:
(a) the same owner; or
(b) legal description.
(2) Notwithstanding Subsection (1), land described in Subsection (1) is subject to the rollback tax as provided in Section 59-2-506 if the land is withdrawn from this part.
(3) Notwithstanding Subsection (1), land is withdrawn from this part if:
(a) there is a change in:
(i) the ownership of the land; or
(ii) the legal description of the land; and
(b) after a change described in Subsection (3)(a):
(i) the land does not meet the requirements of Section 59-2-503;
(ii) an owner of the land fails to submit a new application for assessment as provided in Section 59-2-508 within 120 days after the day on which a change described in Subsection (3)(a) occurs; or
(iii)
(A) an owner of the land submits the application required by this section; and
(B) the county denies the application upon review.
(4) Within 30 days from the day on which a county receives an application required by this section, the county shall:
(a) review the application for completion; and
(b) approve or deny the application.
(5) Land under an application required by this section is not withdrawn from this part for the period in which the application is under review by the county.
Separation of a part of the land which is being valued, assessed, and taxed under this part, either by conveyance or other action of the owner of the land, for a use other than agricultural, subjects the land which is separated to liability for the applicable rollback tax, but does not impair the continuance of agricultural use valuation, assessment, and taxation for the remaining land if it continues to meet the requirements of this part.
(1) For purposes of this section, "governmental entity" means:
(a) the United States;
(b) the state;
(c) a political subdivision of the state, including:
(i) a county;
(ii) a city;
(iii) a town;
(iv) a school district;
(v) a special district; or
(vi) a special service district; or
(d) an entity created by the state or the United States, including:
(i) an agency;
(ii) a board;
(iii) a bureau;
(iv) a commission;
(v) a committee;
(vi) a department;
(vii) a division;
(viii) an institution;
(ix) an instrumentality; or
(x) an office.
(2)
(a) Except as provided in Subsections (3) through (5), land acquired by a governmental entity is subject to the rollback tax imposed by this part if:
(i) before the governmental entity acquires the land, the land is assessed under this part; and
(ii) after the governmental entity acquires the land, the land does not meet the requirements of Section 59-2-503 for assessment under this part.
(b) A person dedicating a public right-of-way to a governmental entity shall pay the rollback tax imposed by this part if:
(i) a portion of the public right-of-way is located within a subdivision as defined in Section 10-20-102; or
(ii) in exchange for the dedication, the person dedicating the public right-of-way receives:
(A) money; or
(B) other consideration.
(3)
(a) Except as provided in Subsections (4) and (5), land acquired by a governmental entity is not subject to the rollback tax imposed by this part, but is subject to a one-time in lieu fee payment as provided in Subsection (3)(b), if:
(i) the governmental entity acquires the land by eminent domain;
(ii)
(A) the land is under the threat or imminence of eminent domain proceedings; and
(B) the governmental entity provides written notice of the proceedings to the owner; or
(iii) the land is donated to the governmental entity.
(b)
(i) If a governmental entity acquires land under Subsection (3)(a)(iii), the governmental entity shall make a one-time in lieu fee payment:
(A) to the county treasurer of the county in which the land is located; and
(B) in an amount equal to the amount of rollback tax calculated under Section 59-2-506.
(ii) If a governmental entity acquires land under Subsection (3)(a)(i) or (3)(a)(ii), the governmental entity shall make a one-time in lieu fee payment:
(A) to the county treasurer of the county in which the land is located; and
(B)
(I) if the land remaining after the acquisition by the governmental entity meets the requirements of Section 59-2-503, in an amount equal to the rollback tax under Section 59-2-506 on the land acquired by the governmental entity; or
(II) if the land remaining after the acquisition by the governmental entity is less than five acres, in an amount equal to the rollback tax under Section 59-2-506 on the land acquired by the governmental entity and the land remaining after the acquisition by the governmental entity.
(iii) For purposes of Subsection (3)(b)(ii), "land remaining after the acquisition by the governmental entity" includes other eligible acreage that is used in conjunction with the land remaining after the acquisition by the governmental entity.
(c) The county treasurer shall pay 100% of the in lieu fee payment collected under this section to the county, which the county shall deposit and use in accordance with Section 17-41-602.
(4) Except as provided in Section 59-2-506.5, if land acquired by a governmental entity is made subject to a conservation easement in accordance with Section 59-2-506.5:
(a) the land is not subject to the rollback tax imposed by this part; and
(b) the governmental entity acquiring the land is not required to make an in lieu fee payment under Subsection (3)(b).
(5)
(a) This Subsection (5) applies only to a governmental entity that is the state or a political subdivision of the state as described in Subsections (1)(b) and (c).
(b) Land acquired by a governmental entity described in Subsection (5)(a) is not subject to the rollback tax imposed by this part.
(c) Notwithstanding Subsection (5)(b), a governmental entity described in Subsection (5)(a) may not, within five years after the day on which the governmental entity acquires land, sell the land to a private entity unless the governmental entity makes a one-time in lieu fee payment:
(i) to the county treasurer of the county in which the land is located;
(ii) in an amount equal to the rollback tax under Section 59-2-506 on the land acquired by the governmental entity at the time of acquisition; and
(iii) before selling the land to the private entity.
(6) If a governmental entity acquires land subject to assessment under this part, title to the land may not pass to the governmental entity until the following are paid to the county treasurer:
(a) any tax due under this part;
(b) any one-time in lieu fee payment due under this part; and
(c) any interest due under this part.
(1) If contiguous land in agricultural use in one ownership is located in more than one county, compliance with this part:
(a) shall be determined on the basis of the total area and production of the contiguous land; and
(b) is not determined on the basis of the area or production of land that is located in one particular county.
(2) If land in agricultural use in one ownership is located in more than one county but the land is not contiguous across county lines, compliance with the requirements of this part shall be determined on the basis of the total area and production of the land in each county.
The factual details to be shown on the assessor's tax list and duplicate with respect to land which is being valued, assessed, and taxed under this part are the same as those set forth by the assessor with respect to other taxable property in the county.
(1) There is created a State Farmland Evaluation Advisory Committee consisting of five members appointed as follows:
(a) one member appointed by the commission who shall be chairman of the committee;
(b) one member appointed by the president of Utah State University;
(c) one member appointed by the state Department of Agriculture and Food;
(d) one member appointed by the state County Assessors' Association; and
(e) one member actively engaged in farming or ranching appointed by the other members of the committee.
(2) The committee shall meet at the call of the chairman to review the several classifications of land in agricultural use in the various areas of the state and recommend a range of values for each of the classifications based upon productive capabilities of the land when devoted to agricultural uses. The recommendations shall be submitted to the commission prior to October 2 of each year.
The commission may promulgate rules and prescribe forms necessary to effectuate the purposes of this part.
(1) Notwithstanding Section 59-2-1004and except as provided in Subsection (2), the owner of land may appeal the determination or denial of a county assessor to the county board of equalization within 60 days after the day on which:
(a) the county assessor makes a determination under this part; or
(b) the county assessor's failure to make a determination results in the owner's request being considered denied under this part.
(2) Notwithstanding Subsection (1), the commission shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules establishing circumstances under which an appeal may be filed with the county board of equalization no later than 60 days after the deadline for an appeal described in Subsection (1).
(1)
(a) Except as provided in Subsection (1)(b), a person performing an appraisal for purposes of establishing fair market value of real estate or real property for the assessment roll shall be the holder of an appraiser's certificate or license issued by the Division of Real Estate under Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act.
(b) Notwithstanding Section 61-2g-301, an uncertified or unlicensed appraiser trainee who is registered under Section 61-2g-302 may appraise property under the direction of a holder of an appraiser's certificate or license issued by the Division of Real Estate under Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act.
(2) The limitations on appraisal authority under Subsections 61-2g-311(1) and (2) and Section 61-2g-312 do not apply to a person performing an appraisal for purposes of establishing fair market value for the assessment roll.
(3) The commission may prescribe additional requirements for any person performing an appraisal for purposes of establishing fair market value for the assessment roll.
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to establish qualifications for personal property appraisers exempt from licensure under Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act.
(5) In accordance with Sections 17-67-301 and 17-67-302, a county assessor shall ensure that the assessor's office is in compliance with this section and any additional rules or requirements for property appraisers established by the commission.
(1) The commission shall conduct, at its own expense, a program of education and training of appraisal personnel preparatory to the examination of applicants for appraisers' and assessors' certification or licensure required by Section 59-2-701.
(2) To ensure that the assessment of property will be performed in a professional manner by competent personnel, meeting specified professional qualifications, the commission shall conduct a continuing program of in-service education and training for county assessors and property appraisers in the principles and practices of assessment and appraisal of property. For this purpose the commission may cooperate with educational institutions, local, regional, state, or national assessors' organizations, and with other appropriate professional organizations. The commission may reimburse the participation expenses incurred by assessors and other employees of the state or its subdivisions whose attendance at in-service training programs is approved by the commission.
(3) The commission shall ensure that any training or continuing education required under this section complies with Title 63G, Chapter 22, State Training and Certification Requirements.
(1)
(a) The commission shall conduct a program of education and training for county assessors that offers instruction on:
(i) a county assessor's statutory obligations; and
(ii) the practical application of mass appraisal techniques to satisfy a county assessor's statutory obligations.
(b) The commission shall confer a designation of completion upon a county assessor each time that the county assessor completes the program under Subsection (1)(a).
(2) A county assessor shall obtain a designation of completion under Subsection (1)(b) within 12 months after the day on which the county assessor starts a term of office.
(1) Except as provided in Section 59-2-331, the commission shall, upon request and pursuant to mutual agreement, provide county assessors with technical assistance and appraisal aid.
(a) The commission shall provide certified or licensed appraisers who, upon request of the county assessor and pursuant to mutual agreement, shall perform appraisals of property and other technical services as needed by the county assessor.
(b) The commission shall calculate the costs of these services based on the number of days of services rendered.
(c) Each county shall pay to the commission an amount equal to the cost of the services that the county receives.
(2)
(a) Both the commission and counties may contract with a private firm or an individual to conduct appraisals.
(b) A county assessor may request the private firm or individual conducting appraisals to assist the county assessor in meeting the requirements of Section 59-2-303.1.
(c)
(i) Notwithstanding Title 63G, Chapter 2, Government Records Access and Management Act, the commission and counties may disclose the name of the taxpayer and the taxpayer's address to the contract appraiser.
(ii) A private appraiser is subject to the confidentiality requirements and penalty provisions provided in Title 63G, Chapter 2, Part 8, Remedies.
(d)
(i) Neither the commission nor a county may contract with a private firm or an individual under a contingency fee arrangement to assess property or prosecute or defend an appeal.
(ii) An appraisal that has been prepared on a contingency fee basis may not be allowed in any proceeding before a county board of equalization or the commission.
(1)
(a) Each year, to assist in the evaluation of appraisal performance of taxable real property, the commission shall conduct and publish studies to determine the relationship between the market value shown on the assessment roll and the market value of real property in each county.
(b) The studies conducted under this Subsection (1) shall include measurements of uniformity within counties and use statistical methods established by the commission.
(c) County assessors may provide sales information to the commission for purposes of the studies conducted under this Subsection (1).
(d) The commission shall make the sales and appraisal information related to the studies conducted under this Subsection (1) available to the county assessors upon request.
(2)
(a) Each year, the commission shall order each county to adjust or factor the county's assessment rates using the most current studies so that the assessment rate in each county is in accordance with Section 59-2-103.
(b) The adjustment or factoring ordered under this Subsection (2) may include an entire county, geographical areas within a county, and separate classes of properties.
(3) If the commission determines that sales data in any county is insufficient to perform the studies required under Subsection (1), the commission may conduct appraisals of property within the county.
(4) If a county fails to implement factoring the commission orders under Subsection (2), the commission shall:
(a) implement the factoring; and
(b) charge an amount equal to the reasonable implementation costs of the factoring to that county.
(5)
(a) The commission may change the factor for any county that, after a hearing before the commission, establishes that the factor should properly be set at a different level for the county.
(b) The commission shall establish the method, procedure, and timetable for the hearings authorized under this section, including access to information to ensure a fair hearing.
(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may establish rules to implement this section, including providing a means for a county to cure noncompliance with a factoring order.
(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and after receiving the advice of the Utah Assessors Association, the commission shall by rule adopt standards for determining acceptable assessment levels and valuation deviations within each county. The standards shall be used for determining whether factoring or corrective action is required under Subsection 59-2-704(2).
(2) As part of its review of the standards for determining acceptable assessment levels and valuation deviations within each county, the commission shall consider any relevant standards promulgated by the International Association of Assessing Officers.
(3) By October 1, 1998, and every five years thereafter, the Revenue and Taxation Interim Committee shall review the commission's standards and determine whether the standards should be modified.
(1) The commission shall provide the services of qualified personal property appraisers for the purpose of auditing taxable personal property accounts in each county. The results of the audits shall be reported to the assessor of the county. The reports shall constitute the confidential records of the commission and the assessor's office but the commission or the assessor may publish statistical information based upon the audits. The accounts to be audited shall be determined by the commission and the county assessor.
(2) The costs of all personal property audits made pursuant to Subsection (1) shall be computed by the commission upon the basis of the number of days of services rendered, and 70% of the cost shall be borne by the commission and 30% by the county. To assist the counties in budgeting for these services, the commission shall submit to each county assessor not later than May 1 of each year an estimate of the costs of the audits for the following fiscal year.
(1) As used in this section:
(a)
(i) Except as provided in Subsection (1)(a)(ii), "designated tax area" means a tax area created by the overlapping boundaries of only the following taxing entities:
(A) a county; and
(B) a school district.
(ii) "Designated tax area" includes a tax area created by the overlapping boundaries of the taxing entities described in Subsection (1)(a)(i) and:
(A) a city or town if the boundaries of the school district under Subsection (1)(a)(i) and the boundaries of the city or town are identical; or
(B) a special service district if the boundaries of the school district under Subsection (1)(a)(i) are located entirely within the special service district.
(b) "Ground hours" means the total number of hours during the calendar year immediately preceding the January 1 described in Section 59-2-103 that aircraft owned or operated by the following are on the ground:
(i) an air charter service;
(ii) an air contract service; or
(iii) an airline.
(2) Before May 25 of each year, the commission shall apportion to each tax area the total assessment of all of the property the commission assesses as provided in Subsections (2)(a) through (e).
(a)
(i) The commission shall apportion the assessments of the property described in Subsection (2)(a)(ii):
(A) to each tax area through which the public utility or company described in Subsection (2)(a)(ii) operates; and
(B) in proportion to the property's value in each tax area.
(ii) Subsection (2)(a)(i) applies to property owned by:
(A) a public utility, except for the rolling stock of a public utility;
(B) a pipeline company;
(C) a power company;
(D) a canal company; or
(E) an irrigation company.
(b) The commission shall apportion the assessments of the rolling stock of a railroad:
(i) to the tax areas through which railroads operate; and
(ii) in the proportion that the length of the main tracks, sidetracks, passing tracks, switches, and tramways of the railroads in each tax area bears to the total length of the main tracks, sidetracks, passing tracks, switches, and tramways in the state.
(c) The commission shall apportion the assessments of the property of a car company to:
(i) each tax area in which a railroad is operated; and
(ii) in the proportion that the length of the main tracks, passing tracks, sidetracks, switches, and tramways of all of the railroads in each tax area bears to the total length of the main tracks, passing tracks, sidetracks, switches, and tramways of all of the railroads in the state.
(d)
(i) The commission shall apportion the assessments of the property described in Subsection (2)(d)(ii) to each tax area in which the property is located.
(ii) Subsection (2)(d)(i) applies to the following property:
(A) mines;
(B) mining claims; or
(C) mining property.
(e)
(i) The commission shall apportion the assessments of the property described in Subsection (2)(e)(ii) to:
(A) each designated tax area; and
(B) in the proportion that the ground hours in each designated tax area bear to the total ground hours in the state.
(ii) Subsection (2)(e)(i) applies to the mobile flight equipment owned or operated by an:
(A) air charter service;
(B) air contract service; or
(C) airline.
(3)
(a)
(i)
(A) State-assessed commercial vehicles that weigh 14,001 pounds or more shall be taxed at a statewide average rate which is calculated from the overall county average tax rates from the preceding year, exclusive of the property subject to the statewide uniform fee, weighted by lane miles of principal routes in each county.
(B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall adopt rules to define "principal routes."
(ii) State-assessed commercial vehicles that weigh 14,000 pounds or less are subject to the uniform fee provided in Section 59-2-405.1.
(b) The combined revenue from all state-assessed commercial vehicles shall be apportioned to the counties based on:
(i) 40% by the percentage of lane miles of principal routes within each county as determined by the commission; and
(ii) 60% by the percentage of total state-assessed vehicles having business situs in each county.
(c) At least quarterly, the commission shall apportion the total taxes paid on state-assessed commercial vehicles to the counties.
(d) Each county shall apportion its share of the revenues under this Subsection (3) to the taxing entities within its boundaries in the same proportion as the assessments of other:
(i) real property;
(ii) tangible personal property; and
(iii) property assessed by the commission.
(1) The commission shall, before June 8, annually transmit to the county auditor of each county to which an apportionment has been made a statement showing:
(a) the property assessed;
(b) the value of the property, as fixed and apportioned to the tax areas; and
(c) the aggregate amount of taxable value placed in dispute in accordance with Section 59-2-1007.
(2) The county auditor shall enter the:
(a) statement on the county assessment roll or book; and
(b) amount of the assessment apportioned to the county in the column of the assessment book or roll which shows for the county the total taxable value of all property.
(3) A county board of equalization may not change any assessment fixed by the commission.
(1) The county auditor shall transmit to the governing bodies of taxing entities in which the property is located, or to which any of the value is apportioned, a statement of the valuation of all property as fixed and apportioned by the commission and reported under Section 59-2-802.
(2) The statement under Subsection (1) shall contain the aggregate amount of taxable value placed in dispute in accordance with Section 59-2-1007.
(3) The statement shall be transmitted at the same time and in the same manner as the statement is transmitted under Section 59-2-924.
(1) As used in this section:
(a) "Aircraft type" means a particular model of aircraft as designated by the manufacturer of the aircraft.
(b) "Airline ground hours calculation" means an amount equal to the product of:
(i) the total number of hours aircraft owned or operated by an airline are on the ground, calculated by aircraft type; and
(ii) the cost percentage.
(c) "Airline revenue ton miles" means, for an airline, the total revenue ton miles during the calendar year that immediately precedes the January 1 described in Section 59-2-103.
(d) "Cost percentage" means a fraction, calculated by aircraft type, the numerator of which is the airline's average cost of the aircraft type and the denominator of which is the airline's average cost of the aircraft type:
(i) owned or operated by the airline; and
(ii) that has the lowest average cost.
(e) "Ground hours factor" means the product of:
(i) a fraction, the numerator of which is the Utah ground hours calculation and the denominator of which is the airline ground hours calculation; and
(ii) .50.
(f)
(i) Except as provided in Subsection (1)(f)(ii), "mobile flight equipment" is as defined in Section 59-2-102.
(ii) "Mobile flight equipment" does not include tangible personal property described in Subsection 59-2-102(26) owned by an:
(A) air charter service; or
(B) air contract service.
(g) "Mobile flight equipment allocation factor" means the sum of:
(i) the ground hours factor; and
(ii) the revenue ton miles factor.
(h) "Revenue ton miles" is determined in accordance with 14 C.F.R. Part 241.
(i) "Revenue ton miles factor" means the product of:
(i) a fraction, the numerator of which is the Utah revenue ton miles and the denominator of which is the airline revenue ton miles; and
(ii) .50.
(j) "Utah ground hours calculation" means an amount equal to the product of:
(i) the total number of hours aircraft owned or operated by an airline are on the ground in this state, calculated by aircraft type; and
(ii) the cost percentage.
(k) "Utah revenue ton miles" means, for an airline, the total revenue ton miles within the borders of this state:
(i) during the calendar year that immediately precedes the January 1 described in Section 59-2-103; and
(ii) from flight stages that originate or terminate in this state.
(2) For purposes of the assessment of an airline's mobile flight equipment by the commission, a portion of the value of the airline's mobile flight equipment shall be allocated to the state by calculating the product of:
(a) the total value of the mobile flight equipment; and
(b) the mobile flight equipment allocation factor.
Before June 22 of each year the commission shall determine the rate of state tax to be levied and collected upon the taxable value of all property in the state sufficient to raise the amount of revenue specified by the Legislature for general state purposes. That rate may not exceed .00048 per dollar of taxable value of taxable property in the state. The commission shall transmit to the county auditor of each county and to the state auditor a statement of that rate. The county auditor shall, upon receipt, give the commission written acknowledgment of receipt.
(1) If any county fails to comply with Section 59-2-704, then this section determines the adjustment of the basic school levy for school districts within the county. Before June 15, the commission shall ascertain from the State Board of Education the number of weighted pupil units in each school district in the state for the school year commencing July 1 of the current calendar year, estimated according to the Minimum School Program Act, and the money necessary for the cost of the operation and maintenance of the minimum school program of the state for the school fiscal year beginning July 1 of the current calendar year. The commission shall then estimate the amounts of all surpluses in the Uniform School Fund, as of July 1 of the current calendar year, available for the operation and maintenance of the program, and shall estimate the anticipated income to the fund available for those purposes for the current school year from all sources, including revenues from taxes on income or from taxes on intangible property pursuant to Article XIII, Sec. 12, Utah Constitution.
(2) The commission shall then determine for each school district the amount to be raised by the minimum basic tax levy as its contribution toward the cost of the basic state-supported program, as required by the Minimum School Program Act.
(3) Each county auditor shall be notified by the commission that the minimum basic tax levy shall be imposed by the school district, to which shall be added an additional amount, if any, due to local undervaluation as provided in this section. The auditor shall inform the county legislative body as to the amount of the levy. The county legislative body shall at the time and in the manner provided by law make the levy upon the taxable property in the school district together with further levies for school purposes as may be required by each school district to pay the costs of programs in excess of the basic state-supported school program.
(4) If the levy applied under this section raises an amount in excess of the total basic state-supported school program for a school district, the excess amount shall be remitted by the school district to the State Board of Education to be credited to the Uniform School Fund for allocation to school districts to support the basic state-supported school program. The availability of money shall be considered by the commission in fixing the state property levy as provided in the Minimum School Program Act.
(5) If the levy does not raise an amount in excess of the total basic state-supported school program for a district, then the difference between the amount which the local levy will raise within the district, and the total cost of the basic state-supported school program within the district shall be computed. This difference, if any, shall be apportioned from the Uniform School Fund to each school district as the contribution of the state to the basic state-supported school program for the district, subject to the following conditions:
(a) Before the apportionment is made, the commission shall determine if the local taxable valuation of any school district is undervalued according to law and if so, the dollar amount of the undervaluation. The dollar amount of the undervaluation shall be multiplied by the district basic uniform school levy at 98%. The resulting dollar amount shall be divided by the current year estimated yield of .0002 per dollar of taxable value at 98% based on the district's taxable valuation prior to adjusting for undervaluation.
(b) The resulting levy amount shall be added to the required district basic uniform levy to determine the combined district basic school levy adjusted for undervaluation. The combined rate of levy shall be certified to the county auditor and employed by the auditor and the county legislative body in lieu of the required basic school local levy.
In providing for remittance to the State Board of Education of any excess collections from the tax levy applied for the basic state-supported school program as specified in Subsection 59-2-902(4), the excess amount shall be remitted in the following manner:
(1) by June 1, 95% of the amount by which the money then collected, pursuant to the levy, exceeds the estimated total basic state-supported school program of the district; or
(2) as soon after the end of the school year as the school district and the State Board of Education can determine the actual cost of the district's basic state-supported school program, the district and the State Board of Education shall make a final settlement.
(1) In addition to the basic state contribution provided in Section 59-2-902, a school district may participate in the state's contributions to the state-supported levy program by conforming to the requirements of the Minimum School Program Act and by making the required additional levy.
(2) A school district that participates in the state-supported levy program shall certify to the State Board of Education the results of its determination and the amount of the board or voted local levy that the district will impose.
The Legislature shall set the minimum rate of levy on each dollar of taxable value of taxable property so that it will raise sufficient supplementary revenue to pay the state's contribution to the cost of the minimum school program for that year. The Legislature shall take into consideration the estimated tax delinquency for the current year, and shall be conservative in its estimate of revenue to assure ample funds for the state's contribution to the cost of the minimum school program. The commission shall immediately transmit to the county auditor of each county and to the state auditor a statement of the rate. The county auditor shall, upon receipt, give the commission written acknowledgment of receipt.
The action of the commission in fixing the rate of taxation for state and state school purposes is a valid rate.
(1) Except as provided in Subsection (2), each county shall have a single aggregate limitation on the property tax levied for all purposes by the county. Except as provided in Section 59-2-911, this limitation may not exceed the maximum set forth in this section. The maximum is:
(a) .0032 per dollar of taxable value in all counties with a total taxable value of more than $100,000,000; and
(b) .0036 per dollar of taxable value in all counties with a total taxable value of less than $100,000,000.
(2)
(a) Beginning January 1, 1995, a county may impose a tax rate in excess of the limitation provided in Subsection (1) if the rate established under Subsection (1)(a) or (b) generates revenues for the county in an amount that is less than the revenues that would be generated by the county under the certified tax rate established in Section 59-2-924.
(b) A county meeting the requirements of Subsection (2)(a) may impose a tax rate that does not exceed the certified tax rate established in Section 59-2-924.
The county legislative body of each county shall adopt a proposed or, if the tax rate is not more than the certified tax rate, a final tax rate on the taxable property of the county before June 22 to provide funds for county purposes.
The county legislative body shall determine the amount which shall be available for each purpose authorized by law.
(1) The maximum levies set forth in Section 59-2-908 do not apply to and do not include:
(a) levies made to pay outstanding judgment debts;
(b) levies made in any special improvement districts;
(c) levies made for extended services in any county service area;
(d) levies made for county library services;
(e) levies made for county animal welfare services;
(f) levies made to be used for storm water, flood, and water quality control;
(g) levies made to share disaster recovery expenses for public facilities and structures as a condition of state assistance when a Presidential Declaration has been issued under the Disaster Relief Act of 1974, 42 U.S.C. Sec. 5121;
(h) levies made to pay interest and provide for a sinking fund in connection with any bonded or voter authorized indebtedness, including the bonded or voter authorized indebtedness of county service areas, special service districts, and special improvement districts;
(i) levies made to fund local health departments;
(j) levies made to fund public transit districts;
(k) levies made to establish, maintain, and replenish special improvement guaranty funds;
(l) levies made in any special service district;
(m) levies made to fund municipal-type services to unincorporated areas of counties under Title 17, Chapter 78, Part 5, Provision of Municipal-Type Services to Unincorporated Areas;
(n) levies made to fund the purchase of paramedic or ambulance facilities and equipment and to defray administration, personnel, and other costs of providing emergency medical and paramedic services, but this exception only applies to those counties in which a resolution setting forth the intention to make those levies has been duly adopted by the county legislative body and approved by a majority of the voters of the county voting at a special or general election;
(o) the multicounty and county assessing and collecting levies under Section 59-2-1602; and
(p) all other exceptions to the maximum levy limitation pursuant to statute.
(2)
(a) Upon the retirement of bonds issued for the development of a convention complex described in Section 17-63-904, and notwithstanding Section 59-2-908, any county of the first class may continue to impose a property tax levy equivalent to the average property tax levy previously imposed to pay debt service on those retired bonds.
(b) Notwithstanding that the imposition of the levy described in Subsection (2)(a) may not result in an increased amount of ad valorem tax revenue, the levy is subject to the notice requirements of Section 59-2-919.
(c) The revenue from this continued levy shall be used only for the funding of convention facilities as defined in Section 59-12-602.
(1) Except as provided in Subsection (2), the governing body of each taxing entity shall before June 22 of each year:
(a) adopt a proposed tax rate, or, if the tax rate is not more than the certified tax rate, a final tax rate for the taxing entity; and
(b) report the rate and levy, and submit the statement required under Section 59-2-913 and any other information prescribed by rules of the commission for the preparation, review, and certification of the tax rate, to the county auditor of the county in which the taxing entity is located.
(2) If the governing body of a taxing entity does not receive the taxing entity's certified tax rate at least seven days prior to the date described in Subsection (1), the governing body of the taxing entity shall, no later than 14 days after receiving the certified tax rate from the county auditor:
(a) adopt a proposed tax rate, or, if the tax rate is not more than the certified tax rate, a final tax rate for the taxing entity; and
(b) comply with the requirements of Subsection (1)(b).
(3)
(a) If the governing body of a taxing entity fails to comply with Subsection (1) or (2), the auditor of the county in which the taxing entity is located shall notify the taxing entity by certified mail of the deficiency and forward all available documentation to the commission.
(b) Upon receipt of the notice and documentation from the county auditor under Subsection (3)(a), the commission shall hold a hearing on the matter and certify an appropriate tax rate.
(1) As used in this section, "budgeted property tax revenues" does not include property tax revenue received by a taxing entity from personal property that is:
(a) assessed by a county assessor in accordance with Part 3, County Assessment; and
(b) semiconductor manufacturing equipment.
(2)
(a) The legislative body of each taxing entity shall file a statement as provided in this section with the county auditor of the county in which the taxing entity is located.
(b) The auditor shall annually transmit the statement to the commission:
(i) before June 22; or
(ii) with the approval of the commission, on a subsequent date prior to the date required by Section 59-2-1317 for the county treasurer to provide the notice under Section 59-2-1317.
(c) The statement shall contain the amount and purpose of each levy fixed by the legislative body of the taxing entity.
(3) For purposes of establishing the levy set for each of a taxing entity's applicable funds, the legislative body of the taxing entity shall calculate an amount determined by dividing the budgeted property tax revenues, specified in a budget that has been adopted and approved prior to setting the levy, by the amount calculated under Subsections 59-2-924(4)(b)(i) through (iv).
(4) The format of the statement under this section shall:
(a) be determined by the commission; and
(b) cite any applicable statutory provisions that:
(i) require a specific levy; or
(ii) limit the property tax levy for any taxing entity.
(5) The commission may require certification that the information submitted on a statement under this section is true and correct.
(1) If the commission determines that a levy established for a taxing entity set under Section 59-2-913 is in excess of the maximum levy permitted by law, the commission shall:
(a) lower the levy so that it is set at the maximum level permitted by law;
(b) notify the taxing entity which set the excessive rate that the rate has been lowered; and
(c) notify the county auditor of the county or counties in which the taxing entity is located to implement the rate established by the commission.
(2) A levy set for a taxing entity by the commission under this section shall be the official levy for that taxing entity unless:
(a) the taxing entity lowers the levy established by the commission; or
(b) the levy is subsequently modified by a court order.
(3) Notwithstanding Subsection (1) or (2), a taxing entity may impose a tax rate that exceeds the maximum levy permitted by law if the tax rate the taxing entity imposes is at or below the taxing entity's certified tax rate established in Section 59-2-924.
The governing body of each county, town, city, conservation district, and metropolitan district may levy a tax for participation in the development of the use of Colorado river water in Utah through the Colorado River-Great Basin Project. The tax shall be levied at the same time and collected in the same manner as other taxes.
The money raised by the levy imposed by Section 59-2-916 may be used for development purposes as provided in Section 59-2-916 or the governing body of any taxing entity may make contributions to the extent of the fund raised by the tax, to any state or government agency which has been organized for that public purpose and is engaged in the development.
(1) A taxing entity may not impose a judgment levy unless the taxing entity first advertises the taxing entity's intention to do so and holds a public hearing in accordance with the requirements of this section.
(2)
(a) The advertisement required by this section may be combined with the advertisement described in Section 59-2-919.
(b) The advertisement required by this section shall be published:
(i) electronically in accordance with Section 45-1-101;
(ii) as a class A notice under Section 63G-30-102; and
(iii) for at least 14 days before the day on which the taxing entity conducts the public hearing required under this section.
(c)
(i) For taxing entities operating under a July 1 through June 30 fiscal year, the public hearing required under this section shall be held 10 or more days after notice is provided to property owners pursuant to Section 59-2-919.1.
(ii) For taxing entities operating under a January 1 through December 31 fiscal year:
(A) for an eligible judgment issued on or after March 1 but on or before September 15, the public hearing required under this section shall be held at the same time as the hearing at which the annual budget is adopted; or
(B) for an eligible judgment issued on or after September 16 but on or before the last day of February, the public hearing required under this section shall be held 10 or more days after notice is provided to property owners pursuant to Section 59-2-919.1.
(3) The advertisement required by this section shall specify:
(a) the date, time, and location of the public hearing at which the judgment levy will be considered;
(b) the amount of the judgment levy;
(c) the term of the judgment levy; and
(d) the tax impact on an average residential and business property located within the taxing entity that results from the judgment levy.
(4) If a final decision regarding the judgment levy is not made at the public hearing required under this section, the taxing entity shall announce at the public hearing the scheduled time and place for consideration and adoption of the judgment levy.
(5)
(a) The information described in Subsections (3)(a) through (c) regarding a judgment levy shall be included on the notice provided to property owners pursuant to Section 59-2-919.1.
(b) The requirements of Subsections 59-2-919(8)(b)(i) and (c) through (f) apply to a public hearing required under this section.
(1) As used in this section, "existing school district," "new school district," and "remaining school district" are as defined in Section 53G-3-102.
(2) For the first fiscal year in which a new school district created under Section 53G-3-302 assumes responsibility for providing student instruction, the new school district and the remaining school district or districts may not impose a property tax unless the district imposing the tax:
(a) advertises its intention to do so in accordance with Subsection (3); and
(b) holds a public hearing in accordance with Subsection (4).
(3) The advertisement required by this section:
(a) may be combined with the advertisement described in Section 59-2-919;
(b) shall be at least 1/4 of a page in size and shall meet the type, placement, and frequency requirements established under Section 59-2-919; and
(c) shall specify the date, time, and location of the public hearing at which the levy will be considered and shall set forth the total amount of the district's proposed property tax levy and the tax impact on an average residential and business property located within the taxing entity compared to the property tax levy imposed in the prior year by the existing school district.
(4)
(a) The date, time, and place of public hearings required by this section shall be included on the notice provided to property owners pursuant to Section 59-2-919.1.
(b) If a final decision regarding the property tax levy is not made at the public hearing, the school district shall announce at the public hearing the scheduled time and place for consideration and adoption of the budget and property tax levies.
(1) As used in this section:
(a) "Additional ad valorem tax revenue" means ad valorem property tax revenue generated by the portion of the tax rate that exceeds the taxing entity's certified tax rate.
(b) "Ad valorem tax revenue" means ad valorem property tax revenue not including revenue from:
(i) eligible new growth; or
(ii) personal property that is:
(A) assessed by a county assessor in accordance with Part 3, County Assessment; and
(B) semiconductor manufacturing equipment.
(c) "Base year" means a taxing entity's fiscal year that immediately precedes the fiscal year in which the taxing entity first adopted a budget below last year's property tax budgeted revenue.
(d) "Base year budgeted revenue" means the property tax budgeted revenue, excluding eligible new growth, for the base year.
(e) "Calendar year taxing entity" means a taxing entity that operates under a fiscal year that begins on January 1 and ends on December 31.
(f) "County executive calendar year taxing entity" means a calendar year taxing entity that operates under the county executive-council form of government described in Section 17-62-203.
(g) "Current calendar year" means the calendar year immediately preceding the calendar year for which a calendar year taxing entity seeks to levy a tax rate that exceeds the calendar year taxing entity's certified tax rate.
(h) "Eligible new growth" means the same as that term is defined in Section 59-2-924.
(i) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year that begins on July 1 and ends on June 30.
(j) "Last year's property tax budgeted revenue" does not include:
(i) revenue received by a taxing entity from a debt service levy voted on by the public;
(ii) revenue generated by the minimum basic tax rate as defined in Section 53F-2-301; or
(iii) revenue generated by the charter school levy described in Section 53F-2-703.
(k) "Meeting" means the same as that term is defined in Section 52-4-103.
(l) "Truth-in-taxation exemption period" means a six-year period that begins with the base year.
(2) Except as provided in Subsection (11), a taxing entity may not levy a tax rate that exceeds the taxing entity's certified tax rate unless the taxing entity meets:
(a) the requirements of this section that apply to the taxing entity; and
(b) all other requirements as may be required by law.
(3)
(a) Subject to Subsection (3)(b) and except as provided in Subsection (5), a calendar year taxing entity may levy a tax rate that exceeds the calendar year taxing entity's certified tax rate if the calendar year taxing entity:
(i) 14 or more days before the date of the regular general election or municipal general election held in the current calendar year, states at a public meeting:
(A) that the calendar year taxing entity intends to levy a tax rate that exceeds the calendar year taxing entity's certified tax rate;
(B) the dollar amount of and purpose for additional ad valorem tax revenue that would be generated by the proposed increase in the certified tax rate; and
(C) the approximate percentage increase in ad valorem tax revenue for the taxing entity based on the proposed increase described in Subsection (3)(a)(i)(B);
(ii) provides notice for the public meeting described in Subsection (3)(a)(i) in accordance with Title 52, Chapter 4, Open and Public Meetings Act, including providing a separate item on the meeting agenda that notifies the public that the calendar year taxing entity intends to make the statement described in Subsection (3)(a)(i);
(iii) meets the advertisement requirements of Subsections (6) and (7) before the calendar year taxing entity conducts the public hearing required by Subsection (3)(a)(v);
(iv) provides notice by mail:
(A) seven or more days before the regular general election or municipal general election held in the current calendar year; and
(B) as provided in Subsection (3)(c); and
(v) conducts a public hearing that is held in accordance with Subsections (8) and (9).
(b)
(i) For a county executive calendar year taxing entity, the statement described in Subsection (3)(a)(i) shall be made by the:
(A) county council;
(B) county executive; or
(C) both the county council and county executive.
(ii) If the county council makes the statement described in Subsection (3)(a)(i) or the county council states a dollar amount of additional ad valorem tax revenue that is greater than the amount of additional ad valorem tax revenue previously stated by the county executive in accordance with Subsection (3)(a)(i), the county executive calendar year taxing entity shall:
(A) make the statement described in Subsection (3)(a)(i) 14 or more days before the county executive calendar year taxing entity conducts the public hearing under Subsection (3)(a)(v); and
(B) provide the notice required by Subsection (3)(a)(iv) 14 or more days before the county executive calendar year taxing entity conducts the public hearing required by Subsection (3)(a)(v).
(c) The notice described in Subsection (3)(a)(iv):
(i) shall be mailed to each owner of property:
(A) within the calendar year taxing entity; and
(B) listed on the assessment roll;
(ii) shall be printed on a separate form that:
(A) is developed by the commission;
(B) states at the top of the form, in bold upper-case type no smaller than 18 point "NOTICE OF PROPOSED TAX INCREASE"; and
(C) may be mailed with the notice required by Section 59-2-1317;
(iii) shall contain for each property described in Subsection (3)(c)(i):
(A) the value of the property for the current calendar year;
(B) the tax on the property for the current calendar year; and
(C) subject to Subsection (3)(d), for the calendar year for which the calendar year taxing entity seeks to levy a tax rate that exceeds the calendar year taxing entity's certified tax rate, the estimated tax on the property;
(iv) shall contain the following statement:
"[Insert name of taxing entity] is proposing a tax increase for [insert applicable calendar year]. This notice contains estimates of the tax on your property and the proposed tax increase on your property as a result of this tax increase. These estimates are calculated on the basis of [insert previous applicable calendar year] data. The actual tax on your property and proposed tax increase on your property may vary from this estimate.";
(v) shall state the dollar amount of additional ad valorem tax revenue that would be generated each year by the proposed increase in the certified tax rate;
(vi) shall include a brief statement of the primary purpose for the proposed tax increase, including the taxing entity's intended use of additional ad valorem tax revenue described in Subsection (3)(c)(v);
(vii) shall state the date, time, and place of the public hearing described in Subsection (3)(a)(v);
(viii) shall state the internet address for the taxing entity's public website;
(ix) may contain other information approved by the commission; and
(x) if sent in calendar year 2024, 2025, or 2026, shall contain:
(A) notice that the taxpayer may request electronic notice as described in Subsection 17-71-302(1)(m); and
(B) instructions describing how to elect to receive a notice as described in Subsection 17-71-302(1)(m).
(d) For purposes of Subsection (3)(c)(iii)(C), a calendar year taxing entity shall calculate the estimated tax on property on the basis of:
(i) data for the current calendar year; and
(ii) the amount of additional ad valorem tax revenue stated in accordance with this section.
(4) Except as provided in Subsection (5), a fiscal year taxing entity may levy a tax rate that exceeds the fiscal year taxing entity's certified tax rate if, before the fiscal year taxing entity conducts the public meeting at which the fiscal year taxing entity's budget is adopted:
(a)
(i) in the public meeting at which the taxing entity's tentative budget is first presented to the governing body of the taxing entity, an executive officer or budget officer of the taxing entity states that the tentative budget includes a proposed tax rate increase and presents a property tax impact schedule as defined in Section 59-2-924; and
(ii) the fiscal year taxing entity includes, on the agenda for the public meeting described in Subsection (4)(a)(i), a separate item notifying the public that an executive officer or budget officer of the taxing entity intends to state in the public meeting that the tentative budget includes a proposed tax rate increase;
(b)
(i) on or after May 1 but on or before June 13, the fiscal year taxing entity states at a public meeting:
(A) that the fiscal year taxing entity is considering levying a tax rate that exceeds the fiscal year taxing entity's certified tax rate;
(B) the approximate dollar amount of and purpose for additional ad valorem tax revenue that would be generated by the proposed tax rate increase described in Subsection (4)(b)(i)(A);
(C) the approximate percentage increase in ad valorem tax revenue for the fiscal year taxing entity based on the proposed tax rate increase described in Subsection (4)(b)(i)(A); and
(D) that if the fiscal year taxing entity proceeds with the proposed tax rate increase, the fiscal year taxing entity will provide notice of and conduct a public hearing, as required by Subsection (4)(c), at which members of the public will have an opportunity to provide comments on the proposed tax rate increase; and
(ii) the fiscal year taxing entity provides notice for the public meeting described in Subsection (4)(b)(i) in accordance with Title 52, Chapter 4, Open and Public Meetings Act, including providing a separate item on the meeting agenda that notifies the public that the fiscal year taxing entity intends to make the statement described in Subsection (4)(b)(i);
(c) the fiscal year taxing entity conducts a public hearing in accordance with Subsections (8) and (9); and
(d) the fiscal year taxing entity provides notice for the public hearing described in Subsection (4)(c) by meeting the advertisement requirements of Subsections (6) and (7).
(5)
(a) A taxing entity is not required to meet the notice or public hearing requirements of Subsection (3) or (4) if the taxing entity is expressly exempted by law from complying with the requirements of this section.
(b) A taxing entity is not required to meet the notice requirements of Subsection (3) or (4) if:
(i) Section 53F-8-301 allows the taxing entity to levy a tax rate that exceeds that certified tax rate without having to comply with the notice provisions of this section; or
(ii) the taxing entity:
(A) budgeted less than $20,000 in ad valorem tax revenue for the previous fiscal year; and
(B) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax revenue.
(c) The requirements of Subsection (4)(a) do not apply if the tentative budget presented during or prior to the first meeting in May does not include a proposed tax increase.
(6)
(a) Before holding the public hearing described in Subsection (3)(a)(v) or (4)(b), a taxing entity proposing a tax rate increase under this section shall publish an advertisement regarding the proposed tax increase:
(i) electronically in accordance with Section 45-1-101; and
(ii) as a class A notice under Section 63G-30-102.
(b) The advertisement described in Subsection (6)(a) shall:
(i) be published for at least 14 days before the day on which the taxing entity conducts the public hearing described in Subsection (3)(a)(v) or (4)(b); and
(ii) substantially be in the following form and content:
"NOTICE OF PROPOSED TAX INCREASE
(NAME OF TAXING ENTITY)
The (name of the taxing entity) is proposing to increase its property tax revenue.
The (name of the taxing entity) tax on a (insert the average value of a residence in the taxing entity rounded to the nearest thousand dollars) residence would increase from $______ to $________, which is $_______ per year.
The (name of the taxing entity) tax on a (insert the value of a business having the same value as the average value of a residence in the taxing entity) business would increase from $________ to $_____, which is $____ per year.
If the proposed budget is approved, (name of the taxing entity) would receive an additional $______ in property tax revenue per year as a result of the tax increase.
If the proposed budget is approved, (name of the taxing entity) would increase its property tax budgeted revenue by ___% above last year's property tax budgeted revenue excluding eligible new growth.
The (name of the taxing entity) invites all concerned citizens to a public hearing for the purpose of hearing comments regarding the proposed tax increase and to explain the reasons for the proposed tax increase. You have the option to participate in the public hearing in person or virtually.
PUBLIC HEARING
Date/Time:(date) (time)
Location:(name of meeting place and address of meeting place)
To obtain more information regarding the tax increase, citizens may contact the (name of the taxing entity) at (phone number of taxing entity) or visit (internet address for the taxing entity's public website). Instructions for virtual participation in the public hearing will be available at (internet address for the taxing entity's public website) no later than 24 hours before the public hearing is scheduled to begin."
(c)
(i) This Subsection (6)(c) applies to a fiscal year taxing entity that:
(A) is a municipality classified by population as a town under Section 10-2-301; and
(B) does not have a public website as of May 1 of the calendar year in which the taxing entity proposes a tax rate increase.
(ii) Notwithstanding the other provisions of this section:
(A) if a provision of this section requires a fiscal year taxing entity to state the internet address for the taxing entity's public website, a fiscal year taxing entity described in Subsection (6)(c)(i) shall instead state the physical address of the fiscal year taxing entity's town hall or principal place of business; and
(B) if a provision of this section requires a fiscal year taxing entity to post information on the taxing entity's public website within a specific time frame, a fiscal year taxing entity described in Subsection (6)(c)(i) shall instead post that information at the fiscal year taxing entity's town hall or principal place of business within that specific time frame.
(iii) A fiscal year taxing entity described in Subsection (6)(c)(i) shall provide to the commission evidence of compliance with the requirements of Subsection (6)(c)(ii), as required by the commission.
(7) The commission:
(a) shall adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, governing the joint use of one advertisement described in Subsection (6) by two or more taxing entities; and
(b) subject to Section 45-1-101, may authorize a taxing entity's use of a commission-approved direct notice to each taxpayer if:
(i) the direct notice is different and separate from the notice required under Section 59-2-919.1; and
(ii) the taxing entity petitions the commission for the use of a commission-approved direct notice.
(8)
(a)
(i) On or before June 1, a fiscal year taxing entity shall notify the commission and the county auditor of the date, time, and place of the public hearing described in Subsection (4)(b).
(ii) On or before October 1 of the current calendar year, a calendar year taxing entity shall notify the commission and the county auditor of the date, time, and place of the public hearing described in Subsection (3)(a)(v).
(b)
(i) A public hearing described in Subsection (3)(a)(v) or (4)(b) shall be:
(A) open to the public;
(B) held at a meeting of the taxing entity with no items on the agenda other than discussion and action on the taxing entity's intent to levy a tax rate that exceeds the taxing entity's certified tax rate, the taxing entity's budget, a special district's or special service district's fee implementation or increase, or a combination of these items; and
(C) available for individuals to participate either in person or virtually, subject to Subsection (8)(g).
(ii) The governing body of a taxing entity conducting a public hearing described in Subsection (3)(a)(v) or (4)(b) shall:
(A) state the dollar amount of additional ad valorem tax revenue that would be generated each year by the proposed increase in the certified tax rate;
(B) explain the reasons for the proposed tax increase, including the taxing entity's intended use of additional ad valorem tax revenue described in Subsection (8)(b)(ii)(A);
(C) if the county auditor compiles the list required by Section 59-2-919.2, make the list available from the main page of the taxing entity's public website for a period that begins at least 14 days before the date on which the public hearing is held and ends on or after the date on which the commission certifies the taxing entity's certified tax rate; and
(D) provide an interested party desiring to be heard an opportunity to present oral testimony within reasonable time limits and without unreasonable restriction on the number of individuals allowed to make public comment.
(c)
(i) Except as provided in Subsection (8)(c)(ii), a taxing entity may not schedule a public hearing described in Subsection (3)(a)(v) or (4)(b) at the same time as the public hearing of another overlapping taxing entity in the same county.
(ii) The taxing entities in which the power to set tax levies is vested in the same governing board or authority may consolidate the public hearings described in Subsection (3)(a)(v) or (4)(b) into one public hearing.
(d) The county auditor shall resolve any conflict in public hearing dates and times after consultation with each affected taxing entity.
(e) A taxing entity shall hold a public hearing described in Subsection (3)(a)(v) or (4)(b) beginning at or after 6 p.m.
(f)
(i) Except as provided in Subsection (8)(f)(ii), a taxing entity may not hold the public hearing described in Subsection (3)(a)(v) or (4)(b) on the same date as:
(A) a public meeting for the purpose of addressing general business of the taxing entity; or
(B) another public hearing of the taxing entity.
(ii) A taxing entity may hold the following hearings on the same date as a public hearing described in Subsection (3)(a)(v) or (4)(b):
(A) a budget hearing;
(B) if the taxing entity is a special district or a special service district, a fee hearing described in Section 17B-1-643;
(C) if the taxing entity is a town, an enterprise fund hearing described in Section 10-5-107.5; or
(D) if the taxing entity is a city, an enterprise fund hearing described in Section 10-6-135.5.
(g) For purposes of facilitating virtual participation in a public hearing described in Subsection (3)(a)(v) or (4)(b), at least 24 hours before the public hearing is scheduled to begin, a taxing entity shall:
(i) post instructions on the taxing entity's public website as to how individuals can connect to and participate virtually in the public hearing; and
(ii) ensure that individuals participating in the public hearing virtually have the ability to:
(A) access the public hearing electronically through video and audio connection;
(B) provide oral testimony through video, audio, or both video and audio connection; and
(C) submit written comments electronically for inclusion in the public record, both before and during the public hearing.
(h) The county in which a taxing entity is located shall, at the request of the taxing entity, provide assistance to the taxing entity to meet the requirements of Subsection (8)(g).
(9)
(a) If a taxing entity does not make a final decision on budgeting additional ad valorem tax revenue at a public hearing described in Subsection (3)(a)(v) or (4)(b), the taxing entity shall:
(i) announce at that public hearing the scheduled time and place of the next public meeting at which the taxing entity will consider budgeting the additional ad valorem tax revenue; and
(ii) if the taxing entity is a fiscal year taxing entity, hold the public meeting described in Subsection (9)(a)(i) before September 1.
(b) A calendar year taxing entity may not adopt a final budget that budgets an amount of additional ad valorem tax revenue that exceeds the largest amount of additional ad valorem tax revenue stated at a public meeting under Subsection (3)(a)(i).
(c) A public hearing on levying a tax rate that exceeds a fiscal year taxing entity's certified tax rate may coincide with a public hearing on the fiscal year taxing entity's proposed annual budget.
(10)
(a) A county auditor may conduct an audit to verify a taxing entity's compliance with this section.
(b) If the county auditor, after completing an audit, finds that a taxing entity has failed to meet the requirements of this section, the county auditor shall prepare and submit a report of the auditor's findings to the commission.
(11) For a fiscal year within a truth-in-taxation exemption period, a taxing entity may adopt a budget that is equal to or less than the base year budgeted revenue without complying with this section.
(12)
(a) Subject to Subsection (12)(b), a taxing entity subject to this section shall provide to the commission all evidence of compliance with the requirements of this section within seven days from the date on which the taxing entity adopts a final budget.
(b) A taxing entity shall furnish to the commission any information the commission requires to certify the taxing entity's compliance with the requirements of this section.
(c) The commission may not certify a tax rate that exceeds a taxing entity's certified tax rate if, within 30 days from the date on which the taxing entity provides to the commission evidence of compliance under Subsection (12)(a), the commission determines that the taxing entity has failed to meet the requirements of this section.
(13) Notwithstanding Subsection (12)(c), if the commission determines that a fiscal year taxing entity proposing a tax rate increase for the fiscal year beginning on July 1, 2026, has failed to meet the requirements of Subsection (4)(a) or (b):
(a) Subsection (12)(c) does not apply, unless the commission determines that the taxing entity has failed to meet a requirement in this section other than the requirements of Subsection (4)(a) or (b); and
(b) the commission shall provide notice to the taxing entity:
(i) notifying the taxing entity of the taxing entity's failure to meet the requirements of Subsection (4)(a) or (b); and
(ii) explaining to the taxing entity that failure to meet the requirements of Subsection (4)(a) or (b) for a subsequent fiscal year will result in the commission not certifying the taxing entity's proposed tax rate increase.
(1) On or before July 22 of each year, in addition to the notice requirements of Section 59-2-919, the county auditor shall notify each owner of real estate who is listed on the assessment roll.
(2) The notice described in Subsection (1) shall:
(a) except as provided in Subsection (5), be sent to all owners of real property by mail 10 or more days before the day on which:
(i) the county board of equalization meets; and
(ii) the taxing entity holds a public hearing on the proposed increase in the certified tax rate;
(b) be on a form that:
(i) the commission approves; and
(ii) is uniform in content in all counties in the state; and
(c) contain for each property:
(i) the assessor's determination of the value of the property;
(ii) the taxable value of the property;
(iii) for property assessed by the county assessor:
(A) instructions on how the taxpayer may file an application with the county board of equalization to appeal the valuation or equalization of the property under Section 59-2-1004, including instructions for filing an application through electronic means; and
(B) the deadline for the taxpayer to make an application to appeal the valuation or equalization of the property under Section 59-2-1004;
(iv) for property assessed by the commission:
(A) instructions on how the taxpayer may file an application with the commission for a hearing on an objection to the valuation or equalization of the property under Section 59-2-1007;
(B) the deadline for the taxpayer to apply to the commission for a hearing on an objection to the valuation or equalization of the property under Section 59-2-1007; and
(C) a statement that the taxpayer may not appeal the valuation or equalization of the property to the county board of equalization;
(v) itemized tax information for all applicable taxing entities, including:
(A) the dollar amount of the taxpayer's tax liability for the property in the prior year; and
(B) the dollar amount of the taxpayer's tax liability under the current rate;
(vi) the following, stated separately:
(A) the charter school levy described in Section 53F-2-703;
(B) the multicounty assessing and collecting levy described in Section 59-2-1602;
(C) the county assessing and collecting levy described in Section 59-2-1602;
(D) levies for debt service voted on by the public;
(E) levies imposed for special purposes under Section 10-6-133.4;
(F) for property located in a county of the first class, as classified in Section 17-60-104, a levy imposed for a city library under Subsection 10-6-133.5(5);
(G) the minimum basic tax rate as defined in Section 53F-2-301; and
(H) if applicable, the annual payment described in Subsection 63H-1-501(4)(a);
(vii) the tax impact on the property;
(viii) the date, time, and place of the required public hearing for each entity;
(ix) property tax information pertaining to:
(A) taxpayer relief; and
(B) the residential exemption described in Section 59-2-103;
(x) information specifically authorized to be included on the notice under this chapter;
(xi) the last property review date of the property as defined in Section 59-2-303.1;
(xii) instructions on how the taxpayer may obtain additional information regarding the valuation of the property, including the characteristics and features of the property, from:
(A) a website maintained by the county; or
(B) the statewide web portal developed and maintained in accordance with Section 59-2-1606 for uniform access to property characteristics and features; and
(xiii) other information approved by the commission.
(3) If a taxing entity that is subject to the notice and hearing requirements of Subsection 59-2-919(4) proposes a tax increase, the notice described in Subsection (1) shall state, in addition to the information required by Subsection (2):
(a) the dollar amount of the taxpayer's tax liability if the proposed increase is approved;
(b) the difference between the dollar amount of the taxpayer's tax liability if the proposed increase is approved and the dollar amount of the taxpayer's tax liability under the current rate, placed in close proximity to the information described in Subsection (2)(c)(viii);
(c) the percentage increase that the dollar amount of the taxpayer's tax liability under the proposed tax rate represents as compared to the dollar amount of the taxpayer's tax liability under the current tax rate; and
(d) for each taxing entity proposing a tax increase, the dollar amount of additional ad valorem tax revenue, as defined in Section 59-2-919, that would be generated each year if the proposed tax increase is approved.
(4) In addition to any other tax relief information required under Subsection (2)(c)(ix)(A), a notice sent to a residential property shall:
(a) state, "If you are 65 years old or older, disabled, or experiencing extreme hardship, and this property is your primary residence, you may be eligible to defer payment of this property tax."; and
(b) include a telephone number, or a website address on which a telephone number is prominently listed, that the property owner may call to obtain additional information about applying for a deferral.
(5)
(a) Subject to the other provisions of this Subsection (5), a county auditor may provide, at the county auditor's discretion, the notice required by this section to a taxpayer by electronic means if a taxpayer makes an election, according to procedures determined by the county auditor, to receive the notice by electronic means.
(b)
(i) If a county auditor sends a notice required by this section by electronic means, the county auditor shall attempt to verify whether a taxpayer receives the notice.
(ii) If the county auditor cannot verify receipt of the notice sent by electronic means 14 days or more before the county board of equalization meets and the taxing entity holds a public hearing on a proposed increase in the certified tax rate, the county auditor shall send the notice required by this section by mail as provided in Subsection (2).
(c) A taxpayer may revoke an election to receive the notice required by this section by electronic means if the taxpayer provides written notice to the county auditor on or before April 30.
(d) An election or a revocation of an election under this Subsection (5):
(i) does not relieve a taxpayer of the duty to pay a tax due under this chapter on or before the due date for paying the tax; or
(ii) does not alter the requirement that a taxpayer appealing the valuation or the equalization of the taxpayer's real property submit the application for appeal within the time period provided in Subsection 59-2-1004(3).
(e) A county auditor shall provide the notice required by this section as provided in Subsection (2), until a taxpayer makes a new election in accordance with this Subsection (5), if:
(i) the taxpayer revokes an election in accordance with Subsection (5)(c) to receive the notice required by this section by electronic means; or
(ii) the county auditor finds that the taxpayer's electronic contact information is invalid.
(f) A person is considered to be a taxpayer for purposes of this Subsection (5) regardless of whether the property that is the subject of the notice required by this section is exempt from taxation.
(1)
(a) Except as provided in Subsection (1)(b), on the same day on which a taxing entity provides the notice to the county required under Subsection 59-2-919(8)(a)(i), the taxing entity shall provide to the county auditor the information required by Subsection 59-2-919(8)(a)(i).
(b) A taxing entity is not required to notify the county auditor of the taxing entity's public hearing in accordance with Subsection (1)(a) if the taxing entity is exempt from the notice requirements of Section 59-2-919.
(2) If as of July 22, two or more taxing entities notify the county auditor under Subsection (1), the county auditor shall by no later than July 22 of each year:
(a) compile a list of the taxing entities that notify the county auditor under Subsection (1);
(b) include on the list described in Subsection (2)(a), the following information for each taxing entity on the list:
(i) the name of the taxing entity;
(ii) the date, time, and location of the public hearing described in Subsection 59-2-919(8)(a)(i);
(iii) the average dollar increase on a residence in the taxing entity that the proposed tax increase would generate;
(iv) the average dollar increase on a business in the taxing entity that the proposed tax increase would generate;
(v) the dollar amount of additional ad valorem tax revenue, as defined in Section 59-2-919, that would be generated each year if the proposed tax increase is approved;
(vi) the approximate percentage increase in ad valorem tax revenue for the taxing entity if the proposed tax increase is approved; and
(vii) other information approved by the commission;
(c) provide a copy of the list described in Subsection (2)(a) to each taxing entity that notifies the county auditor under Subsection (1); and
(d) in addition to the requirements of Subsection (3), if the county has a webpage, publish a copy of the list described in Subsection (2)(a) on the county's webpage until December 31.
(3)
(a) Subject to Subsection (3)(b), at least two weeks before any public hearing included in the list under Subsection (2) is held, the county auditor shall publish:
(i) the list compiled under Subsection (2); and
(ii) a statement that:
(A) the list is for informational purposes only;
(B) the list should not be relied on to determine a person's tax liability under this chapter; and
(C) for specific information related to the tax liability of a taxpayer, the taxpayer should review the taxpayer's tax notice received under Section 59-2-919.1.
(b) The information described in Subsection (3)(a) shall be published:
(i) electronically in accordance with Section 45-1-101;
(ii) as a class A notice under Section 63G-30-102; and
(iii) under the following heading at the top of the document: "NOTICE OF PROPOSED TAX INCREASES."
(4) A taxing entity that notifies the county auditor under Subsection (1) shall provide the list described in Subsection (2)(c) to a person:
(a) who attends the public hearing described in Subsection 59-2-919(8)(a)(i) of the taxing entity; or
(b) who requests a copy of the list.
(5)
(a) A county auditor shall by no later than 30 days from the day on which the last publication of the information required by Subsection (3)(a) is made:
(i) determine the costs of compiling the list; and
(ii) charge each taxing entity included on the list an amount calculated by dividing the amount determined under Subsection (5)(a) by the number of taxing entities on the list.
(b) A taxing entity shall pay the county auditor the amount charged under Subsection (5)(a).
(6) The publication of the list under this section does not remove or change the notice requirements of Section 59-2-919 for a taxing entity.
(7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(a) relating to the publication of a consolidated advertisement which includes the information described in Subsection (2) for a taxing entity that overlaps two or more counties;
(b) relating to the payment required in Subsection (5)(b); and
(c) to oversee the administration of this section and provide for uniform implementation.
(1) If a taxing entity, after fulfilling the requirements of Section 59-2-919, adopts a resolution to levy a tax rate that exceeds the taxing entity's certified tax rate, the taxing entity shall forward the resolution to the tax commission along with the statement of the amount and purpose of the levy required under Sections 59-2-912 and 59-2-913.
(2) No tax rate in excess of the certified tax rate may be certified by the commission or implemented by the taxing entity until the resolution described in Subsection (1) is adopted by the governing authority of the taxing entity and submitted to the commission.
(1) On or before September 15 the county board of equalization and, in cases involving the original jurisdiction of the commission or an appeal from the county board of equalization, the commission, shall annually notify each taxing entity of the following changes resulting from actions by the commission or the county board of equalization:
(a) a change in the taxing entity's assessment roll; and
(b) a change in the taxing entity's adopted tax rate.
(2) A taxing entity is not required to comply with the notice and public hearing provisions of Section 59-2-919 if the commission, the county board of equalization, or a court of competent jurisdiction:
(a) changes a taxing entity's adopted tax rate; or
(b)
(i) makes a reduction in the taxing entity's assessment roll; and
(ii) the taxing entity adopts by resolution an increase in its tax rate above the certified tax rate as a result of the reduction under Subsection (2)(b)(i).
(3) A rate adjustment under this section for:
(a) a taxing entity shall be:
(i) made by the county auditor;
(ii) aggregated;
(iii) reported by the county auditor to the commission; and
(iv) certified by the commission; and
(b) the state shall be made by the commission.
Except as provided in Section 59-2-921, if, after a taxing entity approves an initial tax rate, the taxing entity determines that a greater tax rate is required, the taxing entity shall adopt a replacement resolution after the taxing entity meets the notice and public hearing requirements of Section 59-2-919 to the extent required by Section 59-2-919.
Except as provided in Subsection 59-2-924(8), a taxing entity may, before the taxing entity adopts a final annual budget or a tax rate, expend money on the basis of the taxing entity's:
(1) tentative budget after adoption of the tentative budget; or
(2) prior year's adopted final budget as amended, which shall be readopted by resolution at a meeting of the taxing entity's governing body.
(1) As used in this section:
(a) "Additional ad valorem tax revenue" means the same as that term is defined in Section 59-2-919.
(b)
(i) "Ad valorem property tax revenue" means revenue collected in accordance with this chapter.
(ii) "Ad valorem property tax revenue" does not include:
(A) interest;
(B) penalties;
(C) collections from redemptions; or
(D) revenue received by a taxing entity from personal property that is semiconductor manufacturing equipment assessed by a county assessor in accordance with Part 3, County Assessment.
(c) "Adjusted tax increment" means the same as that term is defined in Section 17C-1-102.
(d)
(i) "Aggregate taxable value of all property taxed" means:
(A) the aggregate taxable value of all real property a county assessor assesses in accordance with Part 3, County Assessment, for the current year;
(B) the aggregate taxable value of all real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for the current year; and
(C) the aggregate year end taxable value of all personal property a county assessor assesses in accordance with Part 3, County Assessment, contained on the prior year's tax rolls of the taxing entity.
(ii) "Aggregate taxable value of all property taxed" does not include the aggregate year end taxable value of personal property that is:
(A) semiconductor manufacturing equipment assessed by a county assessor in accordance with Part 3, County Assessment; and
(B) contained on the prior year's tax rolls of the taxing entity.
(e) "Base taxable value" means:
(i) for an authority created under Section 11-58-201, the same as that term is defined in Section 11-58-102;
(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201, the same as that term is defined in Section 11-59-208;
(iii) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, the same as that term is defined in Section 11-70-101;
(iv) for an agency created under Section 17C-1-201.5, the same as that term is defined in Section 17C-1-102;
(v) for an authority created under Section 63H-1-201, the same as that term is defined in Section 63H-1-102;
(vi) for a host local government, the same as that term is defined in Section 63N-2-502;
(vii) for a housing and transit reinvestment zone or convention center reinvestment zone created under Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, the same as that term is defined in Section 63N-23-101;
(viii) for a home ownership promotion zone created under Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for Counties, a property's taxable value as shown upon the assessment roll last equalized during the base year, as that term is defined in Section 63N-23-501 or 63N-23-601;
(ix) for a first home investment zone created under Title 63N, Chapter 23, Part 7, First Home Investment Zone, a property's taxable value as shown upon the assessment roll last equalized during the base year, as that term is defined in Section 63N-23-701;
(x) for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, a property's taxable value as shown upon the assessment roll last equalized during the property tax base year, as that term is defined in Section 63N-3-1701;
(xi) for an electrical energy development zone designated under Section 79-6-1104, the value of the property within an electrical energy development zone, as shown on the assessment roll last equalized before the designation of the electrical development zone;
(xii) for a regionally significant development zone created under Section 63N-3a-203, the taxable value of the property within a regionally significant development zone boundary, as shown on the assessment roll last equalized during the base year, as that term is defined in Section 63N-3a-101; or
(xiii) for a critical minerals zone created under Title 79, Chapter 10, Part 4, Critical Minerals Zone, the value of the property within a critical minerals zone, as shown on the assessment roll last equalized before the creation of the critical minerals zone, as that term is defined in Section 79-10-101.
(f) "Centrally assessed benchmark value" means an amount equal to the average year end taxable value of real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for the previous three calendar years, adjusted for taxable value attributable to:
(i) an annexation to a taxing entity;
(ii) an incorrect allocation of taxable value of real or personal property the commission assesses in accordance with Part 2, Assessment of Property; or
(iii) a change in value as a result of a change in the method of apportioning the value prescribed by the Legislature, a court, or the commission in an administrative rule or administrative order.
(g) "Centrally assessed industry" means the following industry classes the commission assesses in accordance with Part 2, Assessment of Property:
(i) air carrier;
(ii) coal;
(iii) coal load out property;
(iv) electric generation;
(v) electric rural;
(vi) electric utility;
(vii) gas utility;
(viii) ground access property;
(ix) land only property;
(x) liquid pipeline;
(xi) metalliferous mining;
(xii) nonmetalliferous mining;
(xiii) oil and gas gathering;
(xiv) oil and gas production;
(xv) oil and gas water disposal;
(xvi) railroad;
(xvii) sand and gravel; and
(xviii) uranium.
(h)
(i) "Centrally assessed new growth" means the greater of:
(A) for each centrally assessed industry, zero; or
(B) the amount calculated by subtracting the centrally assessed benchmark value for each centrally assessed industry, adjusted for prior year end incremental value, from the taxable value of real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for each centrally assessed industry for the current year, adjusted for current year incremental value.
(ii) "Centrally assessed new growth" does not include a change in value for a centrally assessed industry as a result of a change in the method of apportioning the value prescribed by the Legislature, a court, or the commission in an administrative rule or administrative order.
(i) "Certified tax rate" means a tax rate that will provide the same ad valorem property tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
(j) "Community reinvestment agency" means the same as that term is defined in Section 17C-1-102.
(k) "Department" means a functional unit within a taxing entity that, in accordance with the Uniform Accounting Manual for Utah Cities, carries on a specific activity.
(l) "Eligible new growth" means the greater of:
(i) zero; or
(ii) the sum of:
(A) locally assessed new growth;
(B) centrally assessed new growth; and
(C) project area new growth or hotel property new growth.
(m) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year that begins on July 1 and ends on June 30.
(n) "Host local government" means the same as that term is defined in Section 63N-2-502.
(o) "Hotel property" means the same as that term is defined in Section 63N-2-502.
(p) "Hotel property new growth" means an amount equal to the incremental value that is no longer provided to a host local government as incremental property tax revenue.
(q) "Incremental property tax revenue" means the same as that term is defined in Section 63N-2-502.
(r) "Incremental value" means:
(i) for an authority created under Section 11-58-201, the amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the property that is located within a project area and on which property tax differential is collected; and
(B) the number that represents the percentage of the property tax differential that is paid to the authority;
(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201, an amount calculated by multiplying:
(A) the difference between the current assessed value of the property and the base taxable value; and
(B) the number that represents the percentage of the property tax augmentation, as defined in Section 11-59-208, that is paid to the Point of the Mountain State Land Authority;
(iii) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, the amount calculated by multiplying:
(A) the difference between the taxable value for the current year and the base taxable value of the property that is located within a project area; and
(B) the number that represents the percentage of enhanced property tax revenue, as defined in Section 11-70-101;
(iv) for an agency created under Section 17C-1-201.5, the amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the property located within a project area and on which tax increment is collected; and
(B) the number that represents the adjusted tax increment from that project area that is paid to the agency;
(v) for an authority created under Section 63H-1-201, the amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the property located within a project area and on which property tax allocation is collected; and
(B) the number that represents the percentage of the property tax allocation from that project area that is paid to the authority;
(vi) for a housing and transit reinvestment zone or convention center reinvestment zone created in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, an amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the property that is located within a housing and transit reinvestment zone or convention center reinvestment zone and on which tax increment is collected; and
(B) the number that represents the percentage of the tax increment that is paid to the housing and transit reinvestment zone or convention center reinvestment zone;
(vii) for a host local government, an amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the hotel property on which incremental property tax revenue is collected; and
(B) the number that represents the percentage of the incremental property tax revenue from that hotel property that is paid to the host local government;
(viii) for a home ownership promotion zone created in accordance with Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for Counties, an amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the property that is located within a home ownership promotion zone and on which tax increment is collected; and
(B) the number that represents the percentage of the tax increment that is paid to the home ownership promotion zone;
(ix) for a first home investment zone created in accordance with Title 63N, Chapter 23, Part 7, First Home Investment Zone, an amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the property that is located within a first home investment zone and on which tax increment is collected; and
(B) the number that represents the percentage of the tax increment that is paid to the first home investment zone;
(x) for a major sporting event venue zone created in accordance with Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, an amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the property located within a qualified development zone for a major sporting event venue zone and upon which property tax increment is collected; and
(B) the number that represents the percentage of tax increment that is paid to the major sporting event venue zone, as approved by a major sporting event venue zone committee described in Section 63N-1a-1706;
(xi) for an electrical energy development zone designated under Section 79-6-1104, the amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the property that is located within the electrical energy developmental zone; and
(B) the number that represents the percentage of the tax increment that is paid to a community reinvestment agency and the Electrical Energy Development Investment Fund created in Section 79-6-1105;
(xii) for a regionally significant development zone created under Section 63N-3a-203, the amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the property that is located within the regionally significant development zone; and
(B) the number that represents the percentage of the tax increment that is paid to a creating entity's agency, as established by the committee in Section 63N-3a-204; or
(xiii) for a critical minerals zone created under Section 79-10-403, the amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the property that is located within the critical minerals zone; and
(B) the number that represents the percentage of the tax increment that is paid to a community reinvestment agency or a state land use authority, as defined in Section 79-10-401, and the Critical Minerals Development Account created in Section 79-10-701.
(s) "Interim budget" means the final tentative budget for a fiscal year taxing entity that in accordance with Subsection (8)(a), proposes a tax rate increase for the ensuing fiscal year period that is in effect for the period beginning July 1 and ending after the date on which the taxing entity, before September 1, adopts a final budget.
(t)
(i) "Locally assessed new growth" means the greater of:
(A) zero; or
(B) the amount calculated by subtracting the year end taxable value of real property the county assessor assesses in accordance with Part 3, County Assessment, for the previous year, adjusted for prior year end incremental value from the taxable value of real property the county assessor assesses in accordance with Part 3, County Assessment, for the current year, adjusted for current year incremental value.
(ii) "Locally assessed new growth" does not include a change in:
(A) value as a result of factoring in accordance with Section 59-2-704, reappraisal, or another adjustment;
(B) assessed value based on whether a property is allowed a residential exemption for a primary residence under Section 59-2-103;
(C) assessed value based on whether a property is assessed under Part 5, Farmland Assessment Act; or
(D) assessed value based on whether a property is assessed under Part 17, Urban Farming Assessment Act.
(u) "Project area" means:
(i) for an authority created under Section 11-58-201, the same as that term is defined in Section 11-58-102;
(ii) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, the same as that term is defined in Section 11-70-101;
(iii) for an agency created under Section 17C-1-201.5, the same as that term is defined in Section 17C-1-102;
(iv) for an authority created under Section 63H-1-201, the same as that term is defined in Section 63H-1-102;
(v) for a housing and transit reinvestment zone or convention center reinvestment zone created in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, the same as that term is defined in Section 63N-23-101;
(vi) for a home ownership promotion zone created in accordance with Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for Counties, the same as that term is defined in Section 63N-23-101;
(vii) for a first home investment zone created in accordance with Title 63N, Chapter 23, Part 7, First Home Investment Zone, the same as that term is defined in Section 63N-23-701;
(viii) for a major sporting event venue zone established under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, the qualified development zone, as defined in Section 63N-3-1701; or
(ix) for a regionally significant development zone created under Title 63N, Chapter 3a, Part 2, Creation of Regionally Significant Development Zones, the qualified development zone, as defined in Section 63N-3a-204.
(v) "Project area new growth" means:
(i) for an authority created under Section 11-58-201, an amount equal to the incremental value that is no longer provided to an authority as property tax differential;
(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201, an amount equal to the incremental value that is no longer provided to the Point of the Mountain State Land Authority as property tax augmentation, as defined in Section 11-59-208;
(iii) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, an amount equal to the incremental value that is no longer provided to the Utah Fairpark Area Investment and Restoration District;
(iv) for an agency created under Section 17C-1-201.5, an amount equal to the incremental value that is no longer provided to an agency as tax increment;
(v) for an authority created under Section 63H-1-201, an amount equal to the incremental value that is no longer provided to an authority as property tax allocation;
(vi) for a housing and transit reinvestment zone or convention center reinvestment zone created in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, an amount equal to the incremental value that is no longer provided to a housing and transit reinvestment zone or convention center reinvestment zone as tax increment;
(vii) for a home ownership promotion zone created in accordance with Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for Counties, an amount equal to the incremental value that is no longer provided to a home ownership promotion zone as tax increment;
(viii) for a first home investment zone created under Title 63N, Chapter 23, Part 7, First Home Investment Zone, an amount equal to the incremental value that is no longer provided to a first home investment zone as tax increment;
(ix) for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, an amount equal to the incremental value that is no longer provided to the creating entity of a major sporting event venue zone as property tax increment; or
(x) for a regionally significant development zone created under Title 63N, Chapter 3a, Part 2, Creation of Regionally Significant Development Zones, an amount equal to the incremental value that is no longer provided to the creating entity's agency for the regionally significant development zone.
(w) "Project area incremental revenue" means the same as that term is defined in Section 17C-1-1001.
(x) "Property tax allocation" means the same as that term is defined in Section 63H-1-102.
(y) "Property tax differential" means the same as that term is defined in Sections 11-58-102, 79-6-1104, and 79-10-401.
(z) "Property tax impact schedule" means a schedule of expenditures that, in accordance with Subsection (8)(b), is included in the interim budget for a fiscal year taxing entity that proposes a tax rate increase for the ensuing fiscal year period.
(aa) "Tax increment" means:
(i) for a project created under Section 17C-1-201.5, the same as that term is defined in Section 17C-1-102;
(ii) for a housing and transit reinvestment zone or convention center reinvestment zone created in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, the same as the term "property tax increment" is defined in Section 63N-23-101;
(iii) for a home ownership promotion zone created in accordance with Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for Counties, the same as that term is defined in Section 10-21-101 or 17-80-101;
(iv) for a first home investment zone created in accordance with Title 63N, Chapter 23, Part 7, First Home Investment Zone, the same as that term is defined in Section 63N-23-701;
(v) for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, property tax increment, as that term is defined in Section 63N-3-1701; or
(vi) for a regionally significant development zone created under Title 63N, Chapter 3a, Part 2, Creation of Regionally Significant Development Zones, the same as the term "property tax increment" is defined in Section 63N-3a-101.
(2) Before June 1 of each year, each county assessor shall deliver to the county auditor and the commission the following statements:
(a) a statement containing the aggregate valuation of all taxable real property a county assessor assesses in accordance with Part 3, County Assessment, for each taxing entity; and
(b) a statement containing the taxable value of all personal property a county assessor assesses in accordance with Part 3, County Assessment, from the prior year end values.
(3) The county auditor shall, on or before June 13, transmit to the governing body of each taxing entity:
(a) the statements described in Subsections (2)(a) and (b);
(b) an estimate of the revenue from personal property;
(c) the certified tax rate; and
(d) all forms necessary to submit a tax levy request.
(4)
(a) Except as otherwise provided in this section, the certified tax rate shall be calculated by dividing the ad valorem property tax revenue that a taxing entity budgeted for the prior year by the amount calculated under Subsection (4)(b).
(b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall calculate an amount as follows:
(i) calculate for the taxing entity the difference between:
(A) the aggregate taxable value of all property taxed; and
(B) any adjustments for current year incremental value;
(ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount determined by increasing or decreasing the amount calculated under Subsection (4)(b)(i) by the average of the percentage net change in the value of taxable property for the equalization period for the three calendar years immediately before the current calendar year;
(iii) after making the calculation required by Subsection (4)(b)(ii), calculate the product of:
(A) the amount calculated under Subsection (4)(b)(ii); and
(B) the percentage of property taxes collected for the five calendar years immediately before the current calendar year; and
(iv) after making the calculation required by Subsection (4)(b)(iii), calculate an amount determined by:
(A) multiplying the percentage of property taxes collected for the five calendar years immediately before the current calendar year by eligible new growth; and
(B) subtracting the amount calculated under Subsection (4)(b)(iv)(A) from the amount calculated under Subsection (4)(b)(iii).
(5) A certified tax rate for a taxing entity described in this Subsection (5) shall be calculated as follows:
(a) except as provided in Subsection (5)(b) or (c), for a new taxing entity, the certified tax rate is zero;
(b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
(i) in a county of the first, second, or third class, the levy imposed for municipal-type services under Title 17, Chapter 78, Part 5, Provision of Municipal-Type Services to Unincorporated Areas; and
(ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general county purposes and such other levies imposed solely for the municipal-type services identified in Section 17-78-501 and Subsection 17-63-101(23);
(c) for a community reinvestment agency that received all or a portion of a taxing entity's project area incremental revenue in the prior year under Title 17C, Chapter 1, Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in Subsection (4) except that the commission shall treat the total revenue transferred to the community reinvestment agency as ad valorem property tax revenue that the taxing entity budgeted for the prior year; and
(d) for debt service voted on by the public, the certified tax rate is the actual levy imposed by that section, except that a certified tax rate for the following levies shall be calculated in accordance with Section 59-2-913 and this section:
(i) a school levy provided for under Section 53F-8-301, 53F-8-302, or 53F-8-303; and
(ii) a levy to pay for the costs of state legislative mandates or judicial or administrative orders under Section 59-2-1602.
(6)
(a) A taxing entity may impose a judgment levy under Section 59-2-1328 or 59-2-1330 at a rate that is sufficient to generate only the revenue required to satisfy one or more eligible judgments.
(b) The ad valorem property tax revenue generated by a judgment levy described in Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate certified tax rate.
(7)
(a) For the purpose of calculating the certified tax rate, the county auditor shall use:
(i) the taxable value of real property:
(A) the county assessor assesses in accordance with Part 3, County Assessment; and
(B) contained on the assessment roll;
(ii) the year end taxable value of personal property:
(A) a county assessor assesses in accordance with Part 3, County Assessment; and
(B) contained on the prior year's assessment roll; and
(iii) the taxable value of real and personal property the commission assesses in accordance with Part 2, Assessment of Property.
(b) For purposes of Subsection (7)(a), taxable value does not include eligible new growth.
(8)
(a) On or before June 30, a fiscal year taxing entity that proposes an increase to the certified tax rate for the ensuing fiscal year period shall:
(i) prepare and adopt an interim budget that:
(A) is based on the taxing entity's proposed tax rate increase;
(B) includes a property tax impact schedule, subject to the requirements of Subsection (8)(b); and
(C) is in effect for the period beginning on July 1 and ending after the date on which the taxing entity, subject to the requirements of Section 59-2-919, adopts a budget;
(ii) present and make available to the public the property tax impact schedule described in Subsection (8)(a)(i)(B):
(A) at each public hearing held prior to June 30 at which the taxing entity discusses the taxing entity's proposed general fund budget for the ensuing fiscal year period; and
(B) as a separate document from all other budget documents; and
(iii) subject to Subsection (8)(c), set aside, in a restricted budget account, an amount of the taxing entity's general fund revenue that is no less than the amount of additional ad valorem tax revenue that would be generated by the taxing entity's proposed tax rate increase.
(b) The property tax impact schedule described in Subsection (8)(a)(i)(B) shall:
(i) specify:
(A) the approximate dollar amount of additional ad valorem tax revenue that would be generated by the proposed tax rate increase;
(B) the approximate percentage increase in tax revenue based on the proposed tax rate increase;
(C) the approximate percentage increase to the amount of property taxes paid on an average residence per year as a result of the proposed tax rate increase; and
(D) the approximate percentage increase to the amount of property taxes paid on an average commercial property per year as a result of the proposed tax rate increase; and
(ii) for each department of the taxing entity whose budget would be affected by the proposed tax rate increase:
(A) outline the budget increase or decrease to the department as a result of the proposed tax rate increase; and
(B) articulate the operational impact to the department if the taxing entity approves the proposed tax rate increase.
(c) A taxing entity subject to this Subsection (8) may not expend or otherwise obligate the revenue that the taxing entity sets aside in a restricted budget account, as required by Subsection (8)(a)(iii), for the period beginning on July 1 and ending after the date on which the taxing entity, subject to the requirements of Section 59-2-919, adopts a budget.
(d) A county shall include the property tax impact schedule described in Subsection (8)(a)(i)(B) as part of the county notice provided under Section 59-2-919.1, if requested and paid for by the taxing entity.
(e) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify the county auditor of:
(i) the taxing entity's intent to exceed the certified tax rate; and
(ii) the amount by which the taxing entity proposes to exceed the certified tax rate.
(f) The county auditor shall notify property owners of any intent to levy a tax rate that exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
(9) On or before June 30, a fiscal year taxing entity shall adopt a budget if the taxing entity does not propose an increase to the certified tax rate for the ensuing fiscal year period.
(10)
(a) Subject to Subsection (10)(d), the commission shall provide notice, through electronic means on or before July 31, to a taxing entity and the Revenue and Taxation Interim Committee if:
(i) the amount calculated under Subsection (10)(b) is 10% or more of the year end taxable value of the real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for the previous year, adjusted for prior year end incremental value; and
(ii) the amount calculated under Subsection (10)(c) is 50% or more of the total year end taxable value of the real and personal property of a taxpayer the commission assesses in accordance with Part 2, Assessment of Property, for the previous year.
(b) For purposes of Subsection (10)(a)(i), the commission shall calculate an amount by subtracting the taxable value of real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for the current year, adjusted for current year incremental value, from the year end taxable value of the real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for the previous year, adjusted for prior year end incremental value.
(c) For purposes of Subsection (10)(a)(ii), the commission shall calculate an amount by subtracting the total taxable value of real and personal property of a taxpayer the commission assesses in accordance with Part 2, Assessment of Property, for the current year, from the total year end taxable value of the real and personal property of a taxpayer the commission assesses in accordance with Part 2, Assessment of Property, for the previous year.
(d) The notification under Subsection (10)(a) shall include a list of taxpayers that meet the requirement under Subsection (10)(a)(ii).
(1) For purposes of this section:
(a) "Clerical error" means the following in an assessment roll:
(i) an omission;
(ii) an error; or
(iii) a defect in form.
(b) "Year" means the period beginning on January 1 and ending on December 31 during which there is a clerical error on the taxing entity's assessment roll.
(2) The commission shall adjust a taxing entity's certified tax rate as provided in Subsection (3) if the county legislative body in which the taxing entity is located certifies to the commission in writing that:
(a) the taxing entity's assessment roll contained a clerical error;
(b) the county adjusted the clerical error on the assessment roll;
(c) the taxing entity's actual collections for the year were different than the taxing entity's budgeted collections for the year; and
(d) the taxing entity notified the county legislative body of the clerical error after the county treasurer provided the tax notices under Section 59-2-1317, but no later than 60 days after the day on which the county treasurer made the final annual settlement with the taxing entity under Section 59-2-1365.
(3)
(a) The adjustment under Subsection (2) is an amount equal to the lesser of:
(i) the difference between the taxing entity's budgeted collections for the year and the taxing entity's actual collections for the year; or
(ii) the amount of the clerical error.
(b) The commission shall make an adjustment under Subsection (2) no later than 90 days after the day on which the county treasurer made the final annual settlement with the taxing entity under Section 59-2-1365.
(1) As used in this section:
(a) "Annexing county" means a county for which the unincorporated area is included within a public safety district by annexation.
(b) "Annexing municipality" means a municipality that is included within a public safety district by annexation.
(c) "Certified tax rate" means a certified tax rate calculated in accordance with Section 59-2-924.
(d) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service Area Act:
(i) created to provide fire protection, paramedic, and emergency services; and
(ii) in the creation of which an election was not required under Subsection 17B-1-214(3)(d).
(e) "Participating county" means a county that has the unincorporated area included within a public safety district.
(f) "Participating municipality" means a municipality that is included within a public safety district.
(g) "Police district" means a service area under Title 17B, Chapter 2a, Part 9, Service Area Act, within a county of the first class:
(i) created to provide law enforcement service; and
(ii) in the creation of which an election was not required under Subsection 17B-1-214(3)(d).
(h) "Public safety district" means a fire district or a police district.
(i) "Public safety service" means:
(i) in the case of a public safety district that is a fire district, fire protection, paramedic, and emergency services; and
(ii) in the case of a public safety district that is a police district, law enforcement service.
(2) If a taxing entity receives increased revenue from uniform fees on tangible personal property under Section 59-2-405, 59-2-405.1, 59-2-405.2, 59-2-405.3, or 72-10-110.5 as a result of any county imposing a sales and use tax under Chapter 12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease the taxing entity's certified tax rate to offset the increased revenue.
(3)
(a) If a county has imposed a sales and use tax under Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
(i) decreased on a one-time basis by the amount of the estimated sales and use tax revenue to be distributed to the county under Subsection 59-12-1102(4); and
(ii) increased by the amount necessary to offset the county's reduction in revenue from uniform fees on tangible personal property under Section 59-2-405, 59-2-405.1, 59-2-405.2, 59-2-405.3, or 72-10-110.5 as a result of the decrease in the certified tax rate under Subsection (3)(a)(i).
(b) The commission shall determine estimates of sales and use tax distributions for purposes of Subsection (3)(a).
(4) If a municipality has imposed an additional resort communities sales and use tax under Section 59-12-402, the municipality's certified tax rate shall be decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated revenue from the additional resort communities sales and use tax imposed under Section 59-12-402.
(5)
(a) This Subsection (5) applies to each county that:
(i) establishes a countywide special service district under Title 17D, Chapter 1, Special Service District Act, to provide jail service, as provided in Subsection 17D-1-201(10); and
(ii) levies a property tax on behalf of the special service district under Section 17D-1-105.
(b)
(i) The certified tax rate of each county to which this Subsection (5) applies shall be decreased by the amount necessary to reduce county revenue by the same amount of revenue that will be generated by the property tax imposed on behalf of the special service district.
(ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the levy on behalf of the special service district under Section 17D-1-105.
(6) The equalized public safety tax rate is determined by:
(a) calculating, for each participating county and each participating municipality, the property tax revenue necessary:
(i) in the case of a fire district, to cover all the costs associated with providing fire protection, paramedic, and emergency services:
(A) for a participating county, in the unincorporated area of the county; and
(B) for a participating municipality, in the municipality; or
(ii) in the case of a police district, to cover all the costs associated with providing law enforcement service that the police district board designates to be funded by a property tax:
(A) for a participating county, in the unincorporated area of the county; or
(B) for a participating municipality, in the municipality; and
(b) adding all the amounts calculated under Subsection (6)(a) for all participating counties and all participating municipalities and then dividing that sum by the aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913:
(i) for participating counties, in the unincorporated area of all participating counties; and
(ii) for participating municipalities, in all participating municipalities.
(7)
(a) In the first year following creation of a public safety district, the certified tax rate of each participating county and each participating municipality shall be decreased by the amount of the equalized public safety tax rate calculated in accordance with Subsection (6).
(b) In the first budget year following annexation to a public safety district, the certified tax rate of each annexing county and each annexing municipality shall be decreased by an amount equal to the amount of revenue budgeted by the annexing county or annexing municipality:
(i) for public safety service; and
(ii) in:
(A) for a taxing entity operating under a January 1 through December 31 fiscal year, the prior calendar year; or
(B) for a taxing entity operating under a July 1 through June 30 fiscal year, the prior fiscal year.
(c) Each tax levied under this section by a public safety district shall be considered to be levied by:
(i) each participating county and each annexing county for purposes of the county's tax limitation under Section 59-2-908; and
(ii) each participating municipality and each annexing municipality for purposes of the municipality's tax limitation under Section 10-5-112, for a town, or Section 10-6-133, for a city.
(d) The calculation of a public safety district's certified tax rate for the year of annexation shall be adjusted to include an amount of revenue equal to one half of the amount of revenue budgeted by the annexing entity for public safety service in the annexing entity's prior fiscal year if:
(i) the public safety district operates on a January 1 through December 31 fiscal year;
(ii) the public safety district approves an annexation of an entity operating on a July 1 through June 30 fiscal year; and
(iii) the annexation described in Subsection (7)(d)(ii) takes effect on July 1.
(8)
(a) The base taxable value as defined in Section 17C-1-102 shall be reduced for any year to the extent necessary to provide a community reinvestment agency established under Title 17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act, with approximately the same amount of money the agency would have received without a reduction in the county's certified tax rate, calculated in accordance with Section 59-2-924, if:
(i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
(ii) the amount of the decrease is more than 20% of the county's certified tax rate of the previous year; and
(iii) the decrease results in a reduction of the amount to be paid to the agency under Section 17C-1-403 or 17C-1-404.
(b) The base taxable value as defined in Section 17C-1-102 shall be increased in any year to the extent necessary to provide a community reinvestment agency with approximately the same amount of money as the agency would have received without an increase in the certified tax rate that year if:
(i) in that year the base taxable value as defined in Section 17C-1-102 is reduced due to a decrease in the certified tax rate under Subsection (2) or (3)(a); and
(ii) the certified tax rate of a city, school district, special district, or special service district increases independent of the adjustment to the taxable value of the base year.
(c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a), the amount of money allocated and, when collected, paid each year to a community reinvestment agency established under Title 17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act, for the payment of bonds or other contract indebtedness, but not for administrative costs, may not be less than the amount would have been without a decrease in the certified tax rate under Subsection (2) or (3)(a).
(1) As used in this section:
(a) "Centrally assessed new growth" means the same as that term is defined in Section 59-2-924.
(b) "Centrally assessed new growth revenue" means an amount calculated by multiplying a taxing entity's centrally assessed new growth for a calendar year by the taxing entity's final tax rate adopted under this part for that year.
(2)
(a) On or before December 31 of each year, the county treasurer shall remit the amount calculated under Subsection (2)(b) to the Division of Finance.
(b) The amount to be remitted to the Division of Finance under this Subsection (2) shall be the sum of centrally assessed new growth revenue for each taxing entity in the county for that year multiplied by 7%.
(c) Notwithstanding the remittance of money under this Subsection (2), for purposes of calculating a tax rate, a taxing entity shall recognize total centrally assessed new growth in the following year's budgeted revenue.
(3) Beginning in 2027, by no later than June 30 of each year, the Division of Finance shall deposit into the Species Protection Account created in Section 23A-3-214 the amounts remitted to the Division of Finance under Subsection (2) after subtracting the administrative charge described in Subsection (4).
(4) Notwithstanding the other provisions of this section, the Division of Finance may retain an administrative charge for the costs associated with implementing this section from the amounts remitted to the Division of Finance under Subsection (2).
If the state authorizes a tax rate that exceeds the minimum basic tax rate described in Section 53F-2-301, or authorizes a levy pursuant to Section 59-2-1602 that exceeds the certified revenue levy as defined in Section 59-2-102, the state shall publish a notice no later than 10 days after the last day of the annual legislative general session that meets the following requirements:
(1)
(a) The Office of the Legislative Fiscal Analyst shall advertise that the state authorized a levy that generates revenue in excess of the previous year's ad valorem tax revenue, plus eligible new growth, but exclusive of revenue from collections from redemptions, interest, and penalties:
(i) in a newspaper of general circulation in the state; and
(ii) as required in Section 45-1-101.
(b) Except an advertisement published on a website, the advertisement described in Subsection (1)(a):
(i) shall be no less than 1/4 page in size and the type used shall be no smaller than 18 point, and surrounded by a 1/4-inch border;
(ii) may not be placed in that portion of the newspaper where legal notices and classified advertisements appear; and
(iii) shall be run once.
(2) The form and content of the notice shall be substantially as follows:
"NOTICE OF TAX INCREASE
The state has budgeted an increase in its property tax revenue from $__________ to $__________ or ____%. The increase in property tax revenues will come from the following sources (include all of the following provisions):
(a) $__________ of the increase will come from (provide an explanation of the cause of adjustment or increased revenues, such as reappraisals or factoring orders);
(b) $__________ of the increase will come from natural increases in the value of the tax base due to (explain cause of eligible new growth, such as new building activity, annexation, etc.); and
(c) a home valued at $100,000 in the state of Utah which based on last year's (levy for the basic state-supported school program, applicable tax rate for the Property Tax Valuation Fund, or both) paid $____________ in property taxes would pay the following:
(i) $__________ if the state of Utah did not budget an increase in property tax revenue exclusive of eligible new growth; and
(ii) $__________ under the increased property tax revenues exclusive of eligible new growth budgeted by the state of Utah."
(1) The county legislative body is the county board of equalization and the county auditor is the clerk of the county board of equalization.
(2)
(a) The county board of equalization shall adjust and equalize the valuation and assessment of the real and personal property within the county, subject to regulation and control by the commission, as prescribed by law.
(b) The county board of equalization shall meet and hold public hearings each year to examine the assessment roll and equalize the assessment of property in the county, including the assessment for general taxes of all taxing entities located in the county.
(3)
(a) Except as provided in Subsection (3)(d), a county board of equalization may:
(i) appoint an appraiser licensed in accordance with Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act, as a hearing officer for the purpose of examining an applicant or a witness; or
(ii) appoint an individual who is not licensed in accordance with Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act, as a hearing officer for the purpose of examining an applicant or a witness if the county board of equalization determines that the individual has competency relevant to the work of a hearing officer, including competency in:
(A) real estate;
(B) finance;
(C) economics;
(D) public administration; or
(E) law.
(b) Except as provided in Subsection (3)(d), a county board of equalization may only allow an individual to serve as a hearing officer for the purposes of examining an applicant or a witness if the individual has completed a course the commission:
(i) develops in accordance with Subsection (3)(c)(i); or
(ii) approves in accordance with Subsection (3)(c)(ii).
(c)
(i) The commission shall develop and administer a continuing education and training program for hearing officers that includes training in property valuation and administrative law.
(ii) In addition to the program the commission develops and administers in accordance with Subsection (3)(c)(i), the commission may approve the continuing education and training program for a hearing officer provided by a county or a private entity if the program includes training in property valuation and administrative law.
(iii) The commission shall ensure that any education and training provided to hearing officers under this Subsection (3)(c) complies with Title 63G, Chapter 22, State Training and Certification Requirements.
(iv)
(A) The commission shall confer a designation of completion upon a hearing officer each time the hearing officer completes the education and training program under Subsection (3)(c)(i) or (ii).
(B) A hearing officer shall obtain a designation of completion as described in Subsection (3)(c)(iv)(A) before the hearing officer acts or performs as a hearing officer.
(d) A county board of equalization may not appoint a person employed by an assessor's office as a hearing officer.
(e) A hearing officer shall transmit the hearing officer's findings to the board, where a quorum shall be required for final action upon any application for exemption, deferral, reduction, or abatement.
(4)
(a) The clerk of the board of equalization shall notify the taxpayer, in writing, of any decision of the board.
(b) The decision shall include any adjustment in the amount of taxes due on the property resulting from a change in the taxable value and shall be considered the corrected tax notice.
(5) During the session of the board, the assessor or any deputy whose testimony is needed shall be present and may make any statement or introduce and examine witnesses on questions before the board.
(6) The county board of equalization may make and enforce any rule which is consistent with statute or commission rule and necessary for the government of the board, the preservation of order, and the transaction of business.
(7)
(a) In addition to education and training provided to hearing officers under Subsection (3)(c), the commission shall develop and administer an education and training program for county officers whose participation in a county board of equalization is required by Subsection (1), including:
(i) members of a county legislative body; and
(ii) county auditors.
(b) The education and training provided to county officers under this Subsection (7) shall include instruction on:
(i) a county officer's duties and obligations in relation to the county board of equalization;
(ii) property valuation; and
(iii) administrative law.
(c)
(i) The commission shall confer a designation of completion upon a county officer described in Subsection (7)(a) each time the county officer completes the education and training program under this Subsection (7).
(ii) A county officer subject to education and training under this Subsection (7) shall obtain a designation of completion as described in Subsection (7)(c)(i) before the county officer participates in a board of equalization process.
(8) The commission may require education and training for county officers involved in property valuation who are not otherwise required to complete an education and training program in accordance with Subsection (3)(c) or (7).
(9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for administering education and training programs in accordance with this section.
(1) The county board of equalization shall use all information it may gain from the records of the county or elsewhere in equalizing the assessment of the property in the county or in determining any exemptions. The board may require the assessor to enter upon the assessment roll any taxable property which has not been assessed and any assessment made has the same force and effect as if made by the assessor before the delivery of the assessment roll to the county treasurer.
(2) During its sessions, the county board of equalization may direct the assessor to:
(a) assess any taxable property which has escaped assessment;
(b) add to the amount, number, or quantity of property when a false or incomplete list has been rendered; and
(c) make and enter new assessments, at the same time cancelling previous entries, when any assessment made by the assessor is considered by the board to be incomplete or incorrect.
(3) The clerk of the board of equalization shall give written notice:
(a) to all interested persons of the day fixed for the investigation of any assessment under consideration by the board at least 30 days before action is taken; and
(b) to the assessor of a valuation adjustment made in accordance with Subsection 59-2-301.4(2) or another adjustment under this section.
(1) The county board of equalization may, after giving notice as prescribed by any rules the commission makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, increase or decrease any assessment contained in any assessment book, so as to equalize the assessment of all classes of property under Section 59-2-103.
(2) In accordance with any rules the commission makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the county board of equalization shall notify the assessor of an adjustment made in accordance with Subsection (1).
(1) As used in this section:
(a) "Applicable lien date" means January 1 of the year in which the valuation or equalization of real property is appealed to the county board of equalization.
(b) "Final assessed value" means:
(i) for real property for which the taxpayer appealed the valuation or equalization to the county board of equalization in accordance with this section, the value given to the real property by the county board of equalization, including a value based on a stipulation of the parties;
(ii) for real property for which the taxpayer or a county assessor appealed the valuation or equalization to the commission in accordance with Section 59-2-1006, the value given to the real property by:
(A) the commission, if the commission has issued a decision in the appeal or the parties have entered a stipulation; or
(B) a county board of equalization, if the commission has not yet issued a decision in the appeal and the parties have not entered a stipulation; or
(iii) for real property for which the taxpayer or a county assessor sought judicial review of the valuation or equalization in accordance with Section 59-1-602 or Title 63G, Chapter 4, Part 4, Judicial Review, the value given the real property by the commission.
(c) "Inflation adjusted value" means the value of the real property that is the subject of the appeal as calculated by changing the final assessed value for the previous taxable year for the real property by the median property value change.
(d) "Median property value change" means the midpoint of the property value changes for all real property that is:
(i) of the same class of real property as the qualified real property; and
(ii) located within the same county and within the same market area as the qualified real property.
(e) "Property value change" means the percentage change in the fair market value of real property on or after January 1 of the previous year and before January 1 of the current year.
(f) "Qualified real property" means real property:
(i) for which:
(A) the taxpayer or a county assessor appealed the valuation or equalization for the previous taxable year to the county board of equalization in accordance with this section or the commission in accordance with Section 59-2-1006;
(B) the appeal described in Subsection (1)(f)(i)(A), resulted in a final assessed value that was lower than the assessed value; and
(C) the assessed value for the current taxable year is higher than the inflation adjusted value; and
(ii) that, on or after January 1 of the previous taxable year and before January 1 of the current taxable year, has not had a qualifying change.
(g) "Qualifying change" means one of the following changes to real property that occurs on or after January 1 of the previous taxable year and before January 1 of the current taxable year:
(i) a physical improvement if, solely as a result of the physical improvement, the fair market value of the physical improvement equals or exceeds the greater of 10% of fair market value of the real property or $20,000;
(ii) a zoning change, if the fair market value of the real property increases solely as a result of the zoning change; or
(iii) a change in the legal description of the real property, if the fair market value of the real property increases solely as a result of the change in the legal description of the real property.
(h) "Qualifying contract" means a contract for the completed sale of residential property that:
(i) involves residential property for which a taxpayer appealed the valuation or equalization to the county board of equalization;
(ii) identifies the final sales price for the residential property described in Subsection (1)(h)(i); and
(iii) is executed within six months before or after the applicable lien date.
(2)
(a) A taxpayer dissatisfied with the valuation or the equalization of the taxpayer's real property may make an application to appeal by:
(i) subject to Subsection (2)(d), filing the application with the county board of equalization within the time period described in Subsection (3); or
(ii) making an application by telephone within the time period described in Subsection (3) if the county legislative body passes a resolution under Subsection (11) authorizing a taxpayer to make an application by telephone.
(b)
(i) The county board of equalization shall make a rule describing the contents of the application.
(ii) In addition to any information the county board of equalization requires, the application shall include information about:
(A) the burden of proof in an appeal involving qualified real property; and
(B) the process for the taxpayer to learn the inflation adjusted value of the qualified real property.
(c)
(i)
(A) The county assessor shall notify the county board of equalization of a qualified real property's inflation adjusted value within 15 business days after the date on which the county assessor receives notice that a taxpayer filed an appeal with the county board of equalization.
(B) The county assessor shall notify the commission of a qualified real property's inflation adjusted value within 15 business days after the date on which the county assessor receives notice that a person dissatisfied with the decision of a county board of equalization files an appeal with the commission.
(ii)
(A) A person may not appeal a county assessor's calculation of inflation adjusted value but may appeal the fair market value of a qualified real property.
(B) A person may appeal a determination of whether, on or after January 1 of the previous taxable year and before January 1 of the current taxable year, real property had a qualifying change.
(d) For purposes of Subsection (2)(a), the county board of equalization shall ensure that a taxpayer has the ability to access and file an application to appeal the valuation or equalization of real property through electronic means.
(3)
(a) Except as provided in Subsection (3)(b) and for purposes of Subsection (2), a taxpayer shall make an application to appeal the valuation or the equalization of the taxpayer's real property on or before the later of:
(i) September 15 of the current calendar year; or
(ii) the last day of a 45-day period beginning on the day on which the county auditor provides the notice under Section 59-2-919.1.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules providing for circumstances under which the county board of equalization is required to accept an application to appeal that is filed after the time period prescribed in Subsection (3)(a).
(4)
(a) The taxpayer shall include in the application under Subsection (2)(a):
(i) the taxpayer's estimate of the fair market value of the property and any evidence that may indicate that the assessed valuation of the taxpayer's property is improperly equalized with the assessed valuation of comparable properties; and
(ii) a signed statement of the personal property located in a multi-tenant residential property, as that term is defined in Section 59-2-301.8 if the taxpayer:
(A) appeals the value of multi-tenant residential property assessed in accordance with Section 59-2-301.8; and
(B) intends to contest the value of the personal property located within the multi-tenant residential property.
(b) For an appeal involving qualified real property, the county board of equalization shall presume that the fair market value of the qualified real property is equal to the inflation adjusted value.
(5) Subject to Subsection (6), in reviewing evidence submitted to a county board of equalization by or on behalf of an owner or a county assessor, the county board of equalization shall consider and weigh:
(a) the accuracy, reliability, and comparability of the evidence presented by the owner or the county assessor;
(b) if submitted, the sales price of relevant property that was under contract for sale as of the lien date but sold after the lien date;
(c) if submitted, the sales offering price of property that was offered for sale as of the lien date but did not sell, including considering and weighing the amount of time for which, and manner in which, the property was offered for sale; and
(d) if submitted, other evidence that is relevant to determining the fair market value of the property.
(6)
(a) This Subsection (6) applies only to an appeal to a county board of equalization involving the valuation or equalization of residential property that is not qualified real property.
(b) If a qualifying contract is submitted as evidence in an appeal described in Subsection (6)(a), the only evidence that the county board of equalization or hearing officer may consider to determine that the final sales price identified in the qualifying contract does not provide an accurate or reliable indication of the fair market value of the residential property is evidence of the following, if submitted:
(i) evidence disputing the nature of the qualifying contract as an arms-length transaction;
(ii) evidence demonstrating that changes in market conditions have occurred in the time period between the day on which the qualifying contract was executed and the applicable lien date; or
(iii) evidence demonstrating that a qualifying change to the residential property has occurred in the time period between the day on which the qualifying contract was executed and the applicable lien date.
(c) In determining the fair market value of residential property in an appeal described in Subsection (6)(a), the county board of equalization may not consider any evidence or information other than the evidence submitted to the county board of equalization by the parties in the appeal.
(7)
(a) Except as provided in Subsection (7)(b), at least five days before the day on which the county board of equalization holds a public hearing on an appeal:
(i) the county assessor shall provide the taxpayer any evidence the county assessor relies upon in support of the county assessor's valuation; and
(ii) the taxpayer shall provide the county assessor any evidence not previously provided to the county assessor that the taxpayer relies upon in support of the taxpayer's appeal.
(b)
(i) The deadline described in Subsection (7)(a) does not apply to evidence that is commercial information as defined in Section 59-1-404, if:
(A) for the purpose of complying with Section 59-1-404, the county assessor requires that the taxpayer execute a nondisclosure agreement before the county assessor discloses the evidence; and
(B) the taxpayer fails to execute the nondisclosure agreement before the deadline described in Subsection (7)(a).
(ii) The county assessor shall disclose evidence described in Subsection (7)(b)(i) as soon as practicable after the county assessor receives the executed nondisclosure agreement.
(iii) The county assessor shall provide the taxpayer a copy of the nondisclosure agreement with reasonable time for the taxpayer to review and execute the agreement before the deadline described in Subsection (7)(a) expires.
(c) If at the public hearing, a party presents evidence not previously provided to the other party, the county board of equalization shall allow the other party to respond to the evidence in writing within 10 days after the day on which the public hearing occurs.
(d)
(i) A county board of equalization may adopt rules governing the deadlines described in this Subsection (7), if the rules are no less stringent than the provisions of this Subsection (7).
(ii) A county board of equalization's rule that complies with Subsection (7)(d)(i) controls over the provisions of this subsection.
(8)
(a) The county board of equalization shall meet and hold public hearings as described in Section 59-2-1001.
(b)
(i) For purposes of this Subsection (8)(b), "significant adjustment" means a proposed adjustment to the valuation of real property that:
(A) is to be made by a county board of equalization; and
(B) would result in a valuation that differs from the original assessed value by at least 20% and $1,000,000.
(ii) When a county board of equalization is going to consider a significant adjustment, the county board of equalization shall:
(A) list the significant adjustment as a separate item on the agenda of the public hearing at which the county board of equalization is going to consider the significant adjustment; and
(B) for purposes of the agenda described in Subsection (8)(b)(ii)(A), provide a description of the property for which the county board of equalization is considering a significant adjustment.
(c) The county board of equalization shall make a decision on each appeal filed in accordance with this section within 60 days after the day on which the taxpayer makes an application.
(d) The commission may approve the extension of a time period provided for in Subsection (8)(c) for a county board of equalization to make a decision on an appeal.
(e) Unless the commission approves the extension of a time period under Subsection (8)(d), if a county board of equalization fails to make a decision on an appeal within the time period described in Subsection (8)(c), the county legislative body shall:
(i) list the appeal, by property owner and parcel number, on the agenda for the next meeting the county legislative body holds after the expiration of the time period described in Subsection (8)(c); and
(ii) hear the appeal at the meeting described in Subsection (8)(e)(i).
(f) The decision of the county board of equalization shall contain:
(i) a determination of the valuation of the property based on fair market value; and
(ii) a conclusion that the fair market value is properly equalized with the assessed value of comparable properties.
(g) If no evidence is presented before the county board of equalization, the county board of equalization shall presume that the equalization issue has been met.
(h)
(i) If the fair market value of the property that is the subject of the appeal deviates plus or minus 5% from the assessed value of comparable properties, the county board of equalization shall adjust the valuation of the appealed property to reflect a value equalized with the assessed value of comparable properties.
(ii) Subject to Sections 59-2-301.1, 59-2-301.2, 59-2-301.3, and 59-2-301.4, equalized value established under Subsection (8)(h)(i) shall be the assessed value for property tax purposes until the county assessor is able to evaluate and equalize the assessed value of all comparable properties to bring all comparable properties into conformity with full fair market value.
(9)
(a) If the decision of the county board of equalization warrants a refund of any amount of property taxes paid for the tax year for the real property that is the subject of the appeal, the county shall issue the refund directly to the taxpayer that paid the property taxes, or an officer or agent of that taxpayer as identified in the information provided under Subsection (9)(b), regardless of whether the taxpayer is the owner of record of the real property at the time the decision is rendered.
(b) A taxpayer entitled to a refund under this section that is not the owner of record of the real property subject to the appeal shall, within 10 calendar days after the day on which the decision of the county board of equalization is rendered, provide the following information to the county board of equalization:
(i) a statement that the taxpayer is entitled to receive the refund under Subsection (9)(a);
(ii) the name of the taxpayer, or an officer or agent of that taxpayer, entitled to receive the refund;
(iii) the mailing address of the taxpayer, or an officer or agent of that taxpayer, to which the taxpayer requests the refund to be sent; and
(iv) any other information requested by the county board of equalization.
(10) If any taxpayer is dissatisfied with the decision of the county board of equalization, the taxpayer may file an appeal with the commission as described in Section 59-2-1006.
(11) A county legislative body may pass a resolution authorizing taxpayers owing taxes on property assessed by that county to file property tax appeals applications under this section by telephone.
(1)
(a) Subject to Subsections (2) through (4) and for the calendar year that begins on January 1, 2023, a taxpayer may file an appeal to the commission of the valuation or equalization of real property that is eligible for a deferral under Section 59-2a-801 for the calendar year that begins on January 1, 2023, if:
(i) the taxpayer filed an appeal of the valuation or equalization of the property with the county board of equalization for the calendar year that begins on January 1, 2023;
(ii) the county board of equalization has issued a decision in accordance with Section 59-2-1004;
(iii) the parties have not entered a stipulation regarding the value of the property; and
(iv) the county board of equalization does not make an adjustment in accordance with Subsection 59-2-303.3.
(b) A taxpayer shall file an appeal to the commission on or before June 30, 2025.
(c) This Subsection (1) does not allow more than one formal adjudicative proceeding by the commission for the calendar year beginning on January 1, 2023.
(2)
(a) For the calendar year that begins on January 1, 2023, a taxpayer may file an appeal of the valuation or equalization of real property for which a county assessor makes an adjustment under Subsection 59-2-303.3(3) for the calendar year that begins on January 1, 2023, in accordance with this Subsection (2).
(b) A taxpayer shall make an appeal under this Subsection (2):
(i) to the county board of equalization; and
(ii) on or before June 30, 2025.
(c) If a taxpayer is dissatisfied with the decision of the county board of equalization, the taxpayer may file an appeal with the commission as described in Section 59-2-1006.
(d) A taxpayer may file an appeal of the valuation or equalization of property under this Subsection (2) regardless of whether:
(i) the taxpayer previously filed an appeal of the valuation or equalization of the property for the calendar year that begins on January 1, 2023;
(ii) the county board of equalization has issued a decision on the appeal in accordance with Section 59-2-1004;
(iii) the commission has issued a decision on the appeal in accordance with Section 59-2-1006;
(iv) the parties have entered a stipulation regarding the value of the property; or
(v) any appeal of the valuation or equalization of the property for the calendar year that begins on January 1, 2023, has been closed.
(3) Except as specifically provided in this section:
(a) an appeal to the county board of equalization shall be filed in accordance with Section 59-2-1004; and
(b) an appeal to the commission shall be filed in accordance with Section 59-2-1006.
(4) For each property eligible to receive a deferral under Section 59-2a-801, this section may not be interpreted to require a taxpayer to refile:
(a) an application to appeal in accordance with Section 59-2-1004 if an appeal before the county board of equalization is pending for the calendar year that begins on January 1, 2023; or
(b) a notice of appeal in accordance with Section 59-2-1006 if an appeal before the commission is pending for the calendar year that begins on January 1, 2023.
(1) For purposes of this section:
(a) "Natural disaster" means:
(i) an explosion;
(ii) fire;
(iii) a flood;
(iv) a storm;
(v) a tornado;
(vi) winds;
(vii) an earthquake;
(viii) lightning;
(ix) any adverse weather event; or
(x) any event similar to an event described in this Subsection (1), as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) "Natural disaster damage" means any physical harm to property caused by a natural disaster.
(2) Except as provided in Subsection (3), if, during a calendar year, property sustains a decrease in taxable value that is caused by natural disaster damage, the owner of the property may apply to the county board of equalization for an adjustment in the taxable value of the owner's property as provided in Subsection (4).
(3) An owner may not receive the valuation adjustment described in this section if the decrease in taxable value described in Subsection (2) is:
(a) due to the intentional action or inaction of the owner; or
(b) less than 30% of the taxable value of the property described in Subsection (2) before the decrease in taxable value described in Subsection (2).
(4)
(a) To receive the valuation adjustment described in Subsection (2), the owner of the property shall file an application for the valuation adjustment with the county board of equalization on or before the later of:
(i) the deadline described in Subsection 59-2-1004(3); or
(ii) 45 days after the day on which the natural disaster damage described in Subsection (2) occurs.
(b) The county board of equalization shall hold a hearing:
(i) within 30 days after the day on which the county board of equalization receives the application described in Subsection (4)(a); and
(ii) following the procedures and requirements of Section 59-2-1001.
(c) At the hearing described in Subsection (4)(b), the applicant shall have the burden of proving, by a preponderance of the evidence:
(i) that the property sustained a decrease in taxable value, that:
(A) was caused by natural disaster damage; and
(B) is at least 30% of the taxable value of the property described in this Subsection (4)(c)(i) before the decrease in taxable value described in this Subsection (4)(c)(i);
(ii) the amount of the decrease in taxable value described in Subsection (4)(c)(i); and
(iii) that the decrease in taxable value described in Subsection (4)(c)(i) is not due to the action or inaction of the applicant.
(d) If the county board of equalization determines that the applicant has met the burden of proof described in Subsection (4)(c), the county board of equalization shall reduce the valuation of the property described in Subsection (4)(c)(i) by an amount equal to the decrease in taxable value of the property multiplied by the percentage of the calendar year remaining after the natural disaster damage occurred.
(e) The decision of the board of equalization shall be provided to the applicant, in writing, within 30 days after the day on which the county board of equalization concludes the hearing described in Subsection (4)(b).
(5) An applicant that is dissatisfied with a decision of the county board of equalization under this section may appeal that decision under Section 59-2-1006.
(1) For purposes of this section "access interruption" means interruption of the normal access to or from property due to any circumstance beyond the control of the owner, including:
(a) road construction;
(b) traffic diversion;
(c) an accident;
(d) vandalism;
(e) an explosion;
(f) fire;
(g) a flood;
(h) a storm;
(i) a tornado;
(j) winds;
(k) an earthquake;
(l) lightning;
(m) any adverse weather event; or
(n) any event similar to the events described in this Subsection (1), as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(2) Except as provided in Subsection (3), if, during a calendar year, property sustains a decrease in fair market value that is caused by access interruption, the owner of the property may apply to the county board of equalization for an adjustment in the fair market value of the owner's property as provided in Subsection (4).
(3) Notwithstanding Subsection (2), an owner may not receive the tax relief described in this section if the decrease in fair market value described in Subsection (2) is due to the intentional action or inaction of the owner.
(4)
(a) To receive the tax relief described in Subsection (2), the owner of the property shall file an application for tax relief with the county board of equalization on or before September 30.
(b) The county board of equalization shall hold a hearing:
(i) within 30 days of the day on which the application described in Subsection (4)(a) is received by the board of equalization; and
(ii) in the manner described in Section 59-2-1001.
(c) At the hearing described in Subsection (4)(b), the applicant shall have the burden of proving, by a preponderance of the evidence:
(i) that the property sustained a decrease in fair market value, during the applicable calendar year, that was caused by access interruption;
(ii) the amount of the decrease in fair market value described in Subsection (4)(c)(i); and
(iii) that the decrease in fair market value described in Subsection (4)(c)(i) is not due to the action or inaction of the applicant.
(d) If the county board of equalization determines that the applicant has met the burden of proof described in Subsection (4)(c), the county board of equalization shall reduce the valuation of the property described in Subsection (4)(c)(i) by an amount equal to the decrease in fair market value of the property multiplied by the portion of the calendar year that the fair market value of the property was decreased.
(e) The decision of the board of equalization shall be provided to the applicant, in writing, within 30 days of the day on which the hearing described in Subsection (4)(b) is concluded.
(5) An applicant that is dissatisfied with a decision of the board of equalization under this section may appeal that decision under Section 59-2-1006.
(1)
(a) Except as provided in Section 59-2-306.5, a taxpayer owning personal property assessed by a county assessor under Section 59-2-301 may make an appeal relating to the value of the personal property by filing an application with the county legislative body no later than:
(i) the expiration of the time allowed under Section 59-2-306 for filing a signed statement, if the county assessor requests a signed statement under Section 59-2-306; or
(ii) 60 days after the mailing of the tax notice, for each other taxpayer.
(b) A county legislative body shall:
(i) after giving reasonable notice, hear an appeal filed under Subsection (1)(a); and
(ii) render a written decision on the appeal within 60 days after receiving the appeal.
(c) If the taxpayer is dissatisfied with a county legislative body decision under Subsection (1)(b), the taxpayer may file an appeal with the commission in accordance with Section 59-2-1006.
(2) A taxpayer owning personal property subject to a fee in lieu of tax or a uniform tax under Article XIII, Section 2 of the Utah Constitution that is based on the value of the property may appeal the basis of the value by filing an appeal with the commission within 30 days after the mailing of the tax notice.
(1) Any person dissatisfied with the decision of the county board of equalization concerning the assessment and equalization of any property, or the determination of any exemption in which the person has an interest, or a tax relief decision made under designated decision-making authority as described in Section 59-2-1101 or Chapter 2a, Tax Relief Through Property Tax, may appeal that decision to the commission by:
(a) filing a notice of appeal specifying the grounds for the appeal with the county auditor within 30 days after the final action of the county board or entity with designated decision-making authority described in Section 59-2-1101 or Chapter 2a, Tax Relief Through Property Tax; and
(b) if the county assessor valued the property in accordance with Section 59-2-301.8 and the taxpayer intends to contest the value of personal property located in a multi-tenant residential property, as that term is defined in Section 59-2-301.8, submitting a signed statement of the personal property with the notice of appeal.
(2) The auditor shall:
(a) file one notice with the commission;
(b) certify and transmit to the commission:
(i) the minutes of the proceedings of the county board of equalization or entity with designated decision-making authority for the matter appealed;
(ii) all documentary evidence received in that proceeding; and
(iii) a transcript of any testimony taken at that proceeding that was preserved;
(c) if the appeal is from a hearing where an exemption was granted or denied, certify and transmit to the commission the written decision of:
(i) the board of equalization as required by Section 59-2-1102; or
(ii) the entity with designated decision-making authority; and
(d) any signed statement submitted in accordance with Subsection (1)(b).
(3) In reviewing a decision described in Subsection (1), the commission may:
(a) admit additional evidence;
(b) issue orders that it considers to be just and proper; and
(c) make any correction or change in the assessment or order of the county board of equalization or entity with decision-making authority.
(4) In reviewing evidence submitted to the commission to decide an appeal under this section, the commission shall consider and weigh:
(a) the accuracy, reliability, and comparability of the evidence presented;
(b) if submitted, the sales price of relevant property that was under contract for sale as of the lien date but sold after the lien date;
(c) if submitted, the sales offering price of property that was offered for sale as of the lien date but did not sell, including considering and weighing the amount of time for which, and manner in which, the property was offered for sale; and
(d) if submitted, other evidence that is relevant to determining the fair market value of the property.
(5) In reviewing a decision described in Subsection (1), the commission shall adjust property valuations to reflect a value equalized with the assessed value of other comparable properties if:
(a) the issue of equalization of property values is raised; and
(b) the commission determines that the property that is the subject of the appeal deviates in value plus or minus 5% from the assessed value of comparable properties.
(6) The commission shall decide all appeals taken pursuant to this section not later than March 1 of the following year for real property and within 90 days for personal property, and shall report its decision, order, or assessment to the county auditor, who shall make all changes necessary to comply with the decision, order, or assessment.
(1)
(a) Subject to the other provisions of this section, if the owner of property assessed by the commission objects to the assessment, the owner may apply to the commission for a hearing on the objection on or before the later of:
(i) August 1; or
(ii) 90 days after the day on which the commission mails the notice of assessment in accordance with Section 59-2-201.
(b) The commission shall allow an owner that meets the requirements of Subsection (1)(a) to be a party at a hearing under this section.
(2) Subject to the other provisions of this section, a county that objects to the assessment of property assessed by the commission may apply to the commission for a hearing on the objection:
(a) for an assessment with respect to which the owner has applied to the commission for a hearing on the objection under Subsection (1), if the county applies to the commission to become a party to the hearing on the objection no later than 60 days after the day on which the owner applied to the commission for the hearing on the objection; or
(b) for an assessment with respect to which the owner has not applied to the commission for a hearing on the objection under Subsection (1), if the county:
(i) reasonably believes that the commission should have assessed the property for the current calendar year at a fair market value that is at least the lesser of an amount that is:
(A) 50% greater than the value at which the commission is assessing the property for the current calendar year; or
(B) 50% greater than the value at which the commission assessed the property for the prior calendar year; and
(ii) applies to the commission for a hearing on the objection no later than 60 days after the last day on which the owner could have applied to the commission for a hearing on the objection under Subsection (1).
(3) Before a county may apply to the commission for a hearing under this section on an objection to an assessment, a majority of the members of the county legislative body shall approve filing an application under this section.
(4)
(a) The commission shall allow a county that meets the requirements of Subsections (2) and (3) to be a party at a hearing under this section.
(b) The commission shall allow an owner to be a party at a hearing under this section on an objection to an assessment a county files in accordance with Subsection (2)(b).
(5) An owner or a county shall include in an application under this section:
(a) a written statement:
(i) setting forth the known facts and legal basis supporting a different fair market value than the value assessed by the commission; and
(ii) for an assessment described in Subsection (2)(b), establishing the county's reasonable belief that the commission should have assessed the property for the current calendar year at a fair market value that is at least the lesser of an amount that is:
(A) 50% greater than the value at which the commission is assessing the property for the current calendar year; or
(B) 50% greater than the value at which the commission assessed the property for the prior calendar year; and
(b) the owner's or county's estimate of the fair market value of the property.
(6)
(a) Except as provided in Subsection (6)(b), an owner or a county assessor may amend an estimate on an application under this section of the fair market value of the property prior to the hearing as provided by rule.
(b) A county may not amend the fair market value of property under this Subsection (6) to equal an amount that is less than the lesser of:
(i) the value at which the commission is assessing the property for the current calendar year plus 50%; or
(ii) the value at which the commission assessed the property for the prior calendar year plus 50%.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules governing the procedures for amending an estimate of fair market value under this Subsection (6).
(7) In applying to the commission for a hearing on an objection under this section:
(a) a county may estimate the fair market value of the property using a valuation methodology the county considers to be appropriate, regardless of:
(i) the valuation methodology used previously in valuing the property; or
(ii) the valuation methodology an owner asserts; and
(b) an owner may estimate the fair market value of the property using a valuation methodology the owner considers to be appropriate, regardless of:
(i) the valuation methodology used previously in valuing the property; or
(ii) the valuation methodology a county asserts.
(8)
(a) An owner who applies to the commission for a hearing in accordance with Subsection (1) shall, for the property for which the owner objects to the commission's assessment, file a copy of the application with the county auditor of each county in which the property is located.
(b) A county auditor who receives a copy of an application in accordance with Subsection (8)(a) shall provide a copy of the application to the county:
(i) assessor;
(ii) attorney;
(iii) legislative body; and
(iv) treasurer.
(9)
(a) Upon request, the commission shall provide to a nonprofit organization that represents counties in the state the following information regarding an appeal filed under this section:
(i) the name of the property owner filing the appeal;
(ii) each year at issue in the appeal;
(iii) the value assessed by the commission for the property that is the subject of the appeal; and
(iv) the owner's estimate of value for the property that is the subject of the appeal as submitted under Subsection (5)(b).
(b)
(i) Except as provided in Subsection (9)(b)(ii), a nonprofit organization may not disclose the information described in Subsection (9)(a)(iv).
(ii) A nonprofit organization may disclose information described in Subsection (9)(a)(iv) to an individual listed under Subsection 59-1-403(2)(a).
(10)
(a) On or before November 15, the commission shall conduct a scheduling conference with all parties to a hearing under this section.
(b) At the scheduling conference under Subsection (10)(a), the commission shall establish dates for:
(i) the completion of discovery;
(ii) the filing of prehearing motions; and
(iii) conducting a hearing on the objection to the assessment.
(11)
(a) The commission shall issue a written decision no later than 120 days after the later of the day on which:
(i) the commission completes the hearing under this section; or
(ii) the parties submit all posthearing briefs.
(b) If the commission does not issue a written decision on an objection to an assessment under this section within a two-year period after the date an application under this section is filed, the objection is considered to be denied, unless the parties stipulate to a different time period for resolving the objection.
(c) A party may appeal to the district court in accordance with Section 59-1-601 within 30 days after the day on which an objection is considered to be denied.
(12) At the hearing on an objection under this section, the commission may increase, lower, or sustain the assessment if:
(a) the commission finds an error in the assessment; or
(b) the commission determines that increasing, lowering, or sustaining the assessment is necessary to equalize the assessment with other similarly assessed property.
(13)
(a) The commission shall send notice of a commission action under Subsection (12) to a county auditor if:
(i) the commission proposes to adjust an assessment the commission made in accordance with Section 59-2-201;
(ii) the county's tax revenues may be affected by the commission's decision; and
(iii) the county is not a party to the hearing under this section.
(b) The written notice described in Subsection (13)(a):
(i) may be sent by:
(A) any form of electronic communication;
(B) first class mail; or
(C) private carrier; and
(ii) shall request the county to show good cause why the commission should not adjust the assessment by requesting the county to provide to the commission a written statement setting forth the known facts and legal basis for not adjusting the assessment within 30 days after the day on which the commission sends the written notice.
(c) If a county provides a written statement described in Subsection (13)(b) to the commission, the commission shall:
(i) hold a hearing or take other appropriate action to consider the good cause the county provides in the written statement; and
(ii) issue a written decision increasing, lowering, or sustaining the assessment.
(d) If a county does not provide a written statement described in Subsection (13)(b) to the commission within 30 days after the day on which the commission sends the notice described in Subsection (13)(a), the commission shall adjust the assessment and send a copy of the commission's written decision to the county.
(14) Subsection (13) does not limit the rights of a county as provided in Subsections (2) and (4)(a).
(1) As used in this section, "review information" means, as reported by a county assessor:
(a) the number of properties that:
(i) required a review in accordance with Section 59-2-303.3; and
(ii) the county reduced the value as a result of the review; and
(b) the parcel number of any property:
(i) that required a review in accordance with Section 59-2-303.3;
(ii) that has an increase in value of $50,000 or more; and
(iii) for which the county assessor did not reduce the value.
(2)
(a) Each year the commission shall conduct an investigation throughout each county of the state to determine whether all property subject to taxation is on the assessment rolls and whether the property is being assessed at fair market value.
(b) When, after any investigation, the commission finds that any property that is subject to taxation is not assessed, the commission shall direct the county assessor, the county board of equalization, or the county auditor, as the commission may determine, to enter the assessment of the escaped property.
(3) If the commission finds that any property in any county is not being assessed at the property's fair market value, the commission shall, for the purpose of equalizing the value of property in the state, increase or decrease the valuation of the property in order to enforce the assessment of all property subject to taxation upon the basis of its fair market value, and shall direct the county assessor, the county board of equalization, or the county auditor, as the commission may determine, to correct the value of the property in a manner prescribed by the commission.
(4) The county assessors, county boards of equalization, and county auditors shall make all increases or decreases as may be required by the commission to make the assessment of all property within the county conform to the property's fair market value.
(5) Each year, after receiving the review information from a county assessor and on or before June 8, the commission shall:
(a) review the assessment of a property described in Subsection (1)(b); and
(b) if warranted, take action as described in Subsection 59-1-210(23).
(6) For review information relating to the calendar year that begins January 1, 2023, the commission shall on or before June 15, 2024:
(a) review the assessment of a property described in Subsection (1)(b); and
(b) if warranted, take reasonable action to correct an error in assessment and report any action to the county auditor.
(7) The commission shall report the review information and the number of properties for which an adjustment is made in accordance with Subsection (5) to the Revenue and Taxation Interim Committee annually on or before the September interim meeting.
(8) The commission shall include in the report the name of each county that reported review information for the current calendar year and the previous calendar year.
Before July 7 the commission shall examine and compare the reports of the county auditors and shall equalize the assessment of the taxable property of the several counties of the state for the purpose of taxation.
When the equalization among the several counties is completed, the commission shall transmit to each county auditor and to the state auditor a statement of the changes made by it in the assessment books of each county or any assessment contained in the book, which is prima facie evidence of the regularity of all proceedings of the commission resulting in the action which is the subject matter of the statement.
The county auditor shall make a record of all changes, corrections, and orders and before October 15 shall affix a signed statement to the record, subscribed by the auditor, in a form substantially as follows:
I, ____, do swear that, as county auditor of ____ county, I have kept correct minutes of all acts of the county board of equalization regarding alterations to the assessment rolls, that all alterations agreed to or directed to be made have been made and entered on the rolls, and that no changes or alterations have been made except those authorized by the board or the commission.
(1) As used in this section:
(a) "Certified appraiser" means an appraiser certified in accordance with:
(i) Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act; or
(ii) the law of a jurisdiction in the United States.
(b) "Licensed appraiser" means an appraiser licensed in accordance with:
(i) Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification Act; or
(ii) the law of a jurisdiction in the United States.
(c) "Opinion of value" means an estimate of fair market value that:
(i) is made by a licensed appraiser or a certified appraiser; and
(ii) except as provided in Subsections (5) and (6), complies with the Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal Standards Board as described in 12 U.S.C. Sec. 3339.
(d) "Present evidence" means to present information:
(i) to a county board of equalization or the commission; and
(ii) related to a property tax appeal made in accordance with this part.
(e) "Price estimate" means an estimate:
(i) of the price that property would sell for; and
(ii) that is not an opinion of value.
(f) "Provide property tax information" means to provide information related to a property tax appeal made in accordance with this part to another person.
(2) Subject to the other provisions of this section, a person may:
(a) present evidence in a property tax appeal on behalf of another person after obtaining permission from that other person; or
(b) provide property tax information to another person.
(3) For purposes of Subsection (2):
(a) only a licensed appraiser or a certified appraiser may present or provide an opinion of value; and
(b) a licensed appraiser or a certified appraiser may not present or provide a price estimate.
(4) A licensed appraiser or a certified appraiser may, in accordance with Subsection (2), provide services regarding a property tax appeal as follows:
(a) present or provide an opinion of value; or
(b) provide consultation services, including presenting evidence or providing property tax information.
(5)
(a) A licensed appraiser or a certified appraiser who presents or provides an opinion of value in accordance with Subsection (2) shall comply with all applicable laws and regulations, including Sections 61-2g-304, 61-2g-403, 61-2g-406, and 61-2g-407.
(b) A licensed appraiser or a certified appraiser who does not present or provide an opinion of value but who provides consultation services by presenting evidence or providing property tax information in accordance with Subsection (2) shall comply with all applicable laws and regulations, including Sections 61-2g-304, 61-2g-403, 61-2g-406, and 61-2g-407, except that the licensed appraiser or the certified appraiser may advocate for the client in a property tax appeal.
(c) A person who is not a licensed appraiser and not a certified appraiser who presents evidence or provides property tax information in accordance with Subsection (2):
(i) is subject to Section 61-2g-407; and
(ii) if the person charges a contingent fee, is subject to Section 61-2g-406.
(6) A licensed appraiser or a certified appraiser may provide an opinion of value, present evidence, or provide tax information in a property tax appeal of the personal residence of the licensed appraiser or certified appraiser despite any personal bias.
(7) A county board of equalization or the commission may evaluate the reliability or accuracy of evidence presented or property tax information provided in accordance with this section.
(1) On or before May 1 of each year, a county board of equalization shall report the following information to the commission:
(a) the number of appeals involving the valuation or equalization of real property for which the county board of equalization issued a decision during the preceding calendar year in accordance with Section 59-2-1004; and
(b) for each appeal described in Subsection (1)(a):
(i) whether the property is residential or commercial;
(ii) the original assessed value of the property; and
(iii) the value given to the property by the county board of equalization.
(2) The commission shall report the appeals information provided by county boards of equalization under Subsection (1) to the Revenue and Taxation Interim Committee on or before July 31 of each year.
(1) As used in this section:
(a) "Charitable purposes" means:
(i) for property used as a nonprofit hospital or a nursing home, the standards outlined in Howell v. County Board of Cache County ex rel. IHC Hospitals, Inc., 881 P.2d 880 (Utah 1994); and
(ii) for property other than property described in Subsection (1)(a)(i), providing a gift to the community.
(b) "Compliance period" means a period equal to 15 taxable years beginning with the first taxable year for which the taxpayer claims a tax credit under Section 42, Internal Revenue Code, or Section 59-7-607 or 59-10-1010.
(c)
(i) "Educational purposes" means purposes carried on by an educational organization that normally:
(A) maintains a regular faculty and curriculum; and
(B) has a regularly enrolled body of pupils and students.
(ii) "Educational purposes" includes:
(A) the physical or mental teaching, training, or conditioning of competitive athletes by a national governing body of sport recognized by the United States Olympic and Paralympic Committee that qualifies as being tax exempt under Section 501(c)(3), Internal Revenue Code; and
(B) an activity in support of or incidental to the teaching, training, or conditioning described in this Subsection (1)(c)(ii).
(d) "Exclusive use exemption" means a property tax exemption under Subsection (3)(a)(iv), for property owned by a nonprofit entity used exclusively for one or more of the following purposes:
(i) religious purposes;
(ii) charitable purposes; or
(iii) educational purposes.
(e)
(i) "Farm machinery and equipment" means tractors, milking equipment and storage and cooling facilities, feed handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage tools, scales, combines, spreaders, sprayers, haying equipment, including balers and cubers, and any other machinery or equipment used primarily for agricultural purposes.
(ii) "Farm machinery and equipment" does not include vehicles required to be registered with the Motor Vehicle Division or vehicles or other equipment used for business purposes other than farming.
(f) "Gift to the community" means:
(i) the lessening of a government burden; or
(ii)
(A) the provision of a significant service to others without immediate expectation of material reward;
(B) the use of the property is supported to a material degree by donations and gifts including volunteer service;
(C) the recipients of the charitable activities provided on the property are not required to pay for the assistance received, in whole or in part, except that if in part, to a material degree;
(D) the beneficiaries of the charitable activities provided on the property are unrestricted or, if restricted, the restriction bears a reasonable relationship to the charitable objectives of the nonprofit entity that owns the property; and
(E) any commercial activities provided on the property are subordinate or incidental to charitable activities provided on the property.
(g) "Government exemption" means a property tax exemption provided under Subsection (3)(a)(i), (ii), or (iii).
(h)
(i) "Nonprofit entity" means an entity:
(A) that is organized on a nonprofit basis, that dedicates the entity's property to the entity's nonprofit purpose, and that makes no dividend or other form of financial benefit available to a private interest;
(B) for which, upon dissolution, the entity's assets are distributable only for exempt purposes under state law or to the government for a public purpose; and
(C) for which none of the net earnings or donations made to the entity inure to the benefit of private shareholders or other individuals, as the private inurement standard has been interpreted under Section 501(c)(3), Internal Revenue Code.
(ii) "Nonprofit entity" includes an entity:
(A) if the entity is treated as a disregarded entity for federal income tax purposes and wholly owned by, and controlled under the direction of, a nonprofit entity; and
(B) for which none of the net earnings and profits of the entity inure to the benefit of any person other than a nonprofit entity.
(iii) "Nonprofit entity" includes an entity that is not an entity described in Subsection (1)(h)(i) if the entity jointly owns a property that:
(A) is used for the purpose of providing permanent supportive housing;
(B) has an owner that is an entity described in Subsection (1)(h)(i) or that is a housing authority that operates the permanent supportive housing;
(C) has an owner that receives public funding from a federal, state, or local government entity to provide support services and rental subsidies to the permanent supportive housing;
(D) is intended to be transferred at or before the end of the compliance period to an entity described in Subsection (1)(h)(i) or a housing authority that will continue to operate the property as permanent supportive housing; and
(E) has been certified by the Utah Housing Corporation as meeting the requirements described in Subsections (1)(h)(iii)(A) through (D).
(iv) "Nonprofit entity" includes an entity that is not an entity described in Subsection (1)(h)(i) if:
(A) the entity is a housing organization as defined in Section 63N-24-316; and
(B) the entity is owned by an entity described in Subsection (1)(h)(i) or a housing authority.
(i) "Permanent supportive housing" means a housing facility that:
(i) provides supportive services;
(ii) makes a 15-year commitment to provide rent subsidies to tenants of the housing facility when the housing facility is placed in service;
(iii) receives an allocation of federal low-income housing tax credits in accordance with 26 U.S.C. Sec. 42; and
(iv) leases each unit to a tenant:
(A) who, immediately before leasing the housing, was homeless as defined in 24 C.F.R. 583.5; and
(B) whose rent is capped at no more than 30% of the tenant's household income.
(j)
(i) "Property of" means property that an entity listed in Subsection (3)(a)(ii) or (iii) has a legal right to possess.
(ii) "Property of" includes a lease of real property if:
(A) the property is wholly leased to a state or political subdivision entity listed in Subsection (3)(a)(ii) or (iii) under a triple net lease; and
(B) the lease is in effect for the entire calendar year.
(k) "Supportive service" means a service that is an eligible cost under 24 C.F.R. 578.53.
(l) "Triple net lease" means a lease agreement under which the lessee is responsible for the real estate taxes, building insurance, and maintenance of the property separate from and in addition to the rental price.
(2)
(a) Except as provided in Subsection (2)(b), an exemption under this part may be allowed only if the claimant is the owner of the property as of January 1 of the year the exemption is claimed.
(b) A claimant shall collect and pay a proportional tax based upon the length of time that the property was not owned by the claimant if:
(i) the claimant is a federal, state, or political subdivision entity described in Subsection (3)(a)(i), (ii), or (iii); or
(ii) in accordance with Subsection (3)(a)(iv):
(A) the claimant is a nonprofit entity; and
(B) the property is used exclusively for religious, charitable, or educational purposes.
(3)
(a) The following property is exempt from taxation:
(i) property exempt under the laws of the United States;
(ii) property of:
(A) the state;
(B) school districts; and
(C) public libraries;
(iii) except as provided in Title 11, Chapter 13, Interlocal Cooperation Act, or in Subsection (6), property of:
(A) counties;
(B) cities;
(C) towns;
(D) special districts;
(E) special service districts; and
(F) all other political subdivisions of the state;
(iv) except as provided in Subsection (7) or (8), property owned by a nonprofit entity used exclusively for one or more of the following purposes:
(A) religious purposes;
(B) charitable purposes; or
(C) educational purposes;
(v) places of burial not held or used for private or corporate benefit;
(vi) farm machinery and equipment;
(vii) a high tunnel, as defined in Section 10-20-613;
(viii) intangible property; and
(ix) the ownership interest of an out-of-state public agency, as defined in Section 11-13-103:
(A) if that ownership interest is in property providing additional project capacity, as defined in Section 11-13-103; and
(B) on which a fee in lieu of ad valorem property tax is payable under Section 11-13-302.
(b) For purposes of a property tax exemption for property of school districts under Subsection (3)(a)(ii)(B), a charter school under Title 53G, Chapter 5, Charter Schools, is considered to be a school district.
(4) Subject to Subsection (5), if property that is allowed an exclusive use exemption or a government exemption ceases to qualify for the exemption because of a change in the ownership of the property:
(a) the new owner of the property shall pay a proportional tax based upon the period of time:
(i) beginning on the day that the new owner acquired the property; and
(ii) ending on the last day of the calendar year during which the new owner acquired the property; and
(b) the new owner of the property and the person from whom the new owner acquires the property shall notify the county assessor, in writing, of the change in ownership of the property within 30 days from the day that the new owner acquires the property.
(5) Notwithstanding Subsection (4)(a), the proportional tax described in Subsection (4)(a):
(a) is subject to any exclusive use exemption or government exemption that the property is entitled to under the new ownership of the property; and
(b) applies only to property that is acquired after December 31, 2005.
(6)
(a) As used in this Subsection (6), "extraterritorial county property" means real property owned by a county that is located outside the geographical boundaries of the county.
(b) Notwithstanding Subsection (3)(a)(iii)(A) and except as provided in Subsection (6)(c):
(i) beginning January 1, 2027, extraterritorial county property that is acquired on or after May 6, 2026, is subject to property taxation; and
(ii) beginning January 1, 2029, extraterritorial county property that was acquired before May 6, 2026, is subject to property taxation.
(c) Extraterritorial county property shall retain the exemption described in Subsection (3)(a)(iii)(A) if the county that owns the property and the county where the property is located:
(i) agree to maintain the exemption described in Subsection (3)(a)(iii)(A) in regard to the extraterritorial county property; and
(ii) enter into an agreement regarding the extraterritorial county property.
(d) If extraterritorial county property is subject to property taxation as described in this Subsection (6), the extraterritorial county property shall be assessed and taxed at the property's taxable value and use immediately before the county's acquisition of the extraterritorial county property, including any assessment under Part 5, Farmland Assessment Act.
(e)
(i) If the use of extraterritorial county property subject to property taxation changes from an agricultural use to a non-qualifying use, as described in Part 5, Farmland Assessment Act, the county that owns the property shall be subject to the rollback tax described in Section 59-2-506.
(ii) The rollback tax described in Subsection (6)(e)(i) shall be calculated based on the difference between the greenbelt assessment and the fair market value assessment for the preceding five years.
(7)
(a) A property may not receive an exemption under Subsection (3)(a)(iv) if:
(i) the nonprofit entity that owns the property participates in or intervenes in any political campaign on behalf of or in opposition to any candidate for public office, including the publishing or distribution of statements; or
(ii) a substantial part of the activities of the nonprofit entity that owns the property consists of carrying on propaganda or otherwise attempting to influence legislation, except as provided under Subsection 501(h), Internal Revenue Code.
(b) Whether a nonprofit entity is engaged in an activity described in Subsection (7)(a) shall be determined using the standards described in Section 501, Internal Revenue Code.
(8) A property may not receive an exemption under Subsection (3)(a)(iv) if:
(a) the property is used for a purpose that is not religious, charitable, or educational; and
(b) the use for a purpose that is not religious, charitable, or educational is more than de minimis.
(9) A county legislative body may adopt rules or ordinances to:
(a) effectuate an exemption under this part; and
(b) designate one or more persons to perform the functions given to the county under this part.
(10) If a person is dissatisfied with an exemption decision made under designated decision-making authority as described in Subsection (9)(b), that person may appeal the decision to the commission under Section 59-2-1006.
(1)
(a) For property assessed under Part 3, County Assessment, the county board of equalization may, after giving notice in a manner prescribed by rule, determine whether certain property within the county is exempt from taxation.
(b) The decision of the county board of equalization described in Subsection (1)(a) shall:
(i) be in writing; and
(ii) include:
(A) a statement of facts; and
(B) the statutory basis for its decision.
(c) Except as provided in Subsection (10)(a), a copy of the decision described in Subsection (1)(a) shall be sent on or before May 15 to the person applying for the exemption.
(2) Except as provided in Subsection (7) and subject to Subsection (8), a county board of equalization may not grant an exemption under this part unless the person affected or the person's agent:
(a) submits a written application to the county board of equalization; and
(b) verifies the application by signed statement.
(3)
(a) The county board of equalization may require a person making an application for exemption to appear before the county board of equalization and be examined under oath.
(b) If the county board of equalization requires a person making an application for exemption to appear before the county board of equalization, the county board of equalization may not grant an exemption unless the person affected or the person's agent appears and answers all questions pertinent to the inquiry.
(4) For the hearing on the application, the county board of equalization may subpoena any witnesses, and hear and take any evidence in relation to the pending application.
(5) Except as provided in Subsection (10)(b), the county board of equalization shall hold hearings and render a written decision to determine any exemption on or before May 1 in each year.
(6) Any person that made an exemption application and is dissatisfied with the decision of the county board of equalization regarding any exemption may appeal to the commission under Section 59-2-1006.
(7)
(a) A county board of equalization may not require an owner of property to file an application in accordance with this section to claim an exemption for the property under the following:
(i) Subsection 59-2-1101(3)(a)(i);
(ii) Subsection 59-2-1101(3)(a)(vi) or (viii);
(iii) Section 59-2-1110;
(iv) Section 59-2-1111;
(v) Section 59-2-1112;
(vi) Section 59-2-1113; or
(vii) Section 59-2-1114.
(b) A county board of equalization may not require an owner of property to file an application in accordance with this section to claim an exemption for the property described in Subsection 59-2-1101(3)(a)(ii) or (iii) unless the property is property described in Subsection 59-2-1101(1)(j)(ii).
(8)
(a) Except as provided in Subsection (8)(b), for property described in Subsection 59-2-1101(3)(a)(iv) or (v), a county board of equalization shall, consistent with Subsection (9), require an owner of that property to file an application in accordance with this section to claim an exemption for that property.
(b) A county board of equalization may not require an owner of property described in Subsection 59-2-1101(3)(a)(iv) or (v) to file an application under Subsection (8)(a) if:
(i) the owner filed an application under Subsection (8)(a);
(ii) the county board of equalization determines that the owner may claim an exemption for that property; and
(iii) the exemption described in Subsection (8)(b)(ii) is in effect.
(c)
(i) For the time period that an owner is granted an exemption in accordance with this section for property described in Subsection 59-2-1101(3)(a)(iv) or (v), a county board of equalization shall require the owner to file an annual statement on or before March 1 on a form prescribed by the commission establishing that the property continues to be eligible for the exemption.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules providing:
(A) the form for the annual statement required by Subsection (8)(c)(i);
(B) the contents of the form for the annual statement required by Subsection (8)(c)(i); and
(C) procedures and requirements for making the annual statement required by Subsection (8)(c)(i).
(iii) The commission shall make the form described in Subsection (8)(c)(ii)(A) available to counties.
(d) On or before April 1, a county board of equalization shall notify each property owner that fails to timely file an annual statement in accordance with Subsection (8)(c) of the county board of equalization's intent to revoke the exemption.
(e) An owner of exempt property described in Subsection 59-2-1101(3)(a)(iv) may file the annual statement described in Subsection (8)(c) after March 1 if the property owner:
(i) files the annual statement on or before March 31; and
(ii) includes a statement of facts establishing that the property owner was unable to file the annual statement on or before March 1 due to one of the following conditions and no other responsible party was capable of filing the annual statement:
(A) a medical emergency of the property owner, an immediate family member of the property owner, or the property owner's agent;
(B) the death of the property owner, an immediate family member of the property owner, or the property owner's agent; or
(C) other extraordinary and unanticipated circumstances.
(9)
(a) For purposes of this Subsection (9), "exclusive use exemption" means the same as that term is defined in Section 59-2-1101.
(b) For purposes of Subsection (1)(a), when a person acquires property on or after January 1 that qualifies for an exclusive use exemption, that person may apply for the exclusive use exemption on or before the later of:
(i) the day set by rule as the deadline for filing a property tax exemption application; or
(ii) 120 days after the day on which the property is acquired.
(10)
(a) Notwithstanding Subsection (1)(c), if a person files an application for an exemption under Subsection (9), a county board of equalization shall send a copy of the decision described in Subsection (1)(c) to the person applying for the exemption on or before the later of:
(i) May 15; or
(ii) 45 days after the day on which the application for the exemption is filed.
(b) Notwithstanding Subsection (5), if an application for an exemption is filed under Subsection (9), a county board of equalization shall hold the hearing and render the decision described in Subsection (5) on or before the later of:
(i) May 1; or
(ii) 30 days after the day on which the application for the exemption is filed.
(1) Lands to which title remains in the state, which are held or occupied by any person under a contract of sale or lease from the state, are exempt from taxation.
(2) This section does not exempt the taxation of:
(a) improvements on state lands;
(b)
(i) any interest in state lands to the extent of money paid or due in part payment of the purchase price, regardless of whether an extension of payment was granted prior to the levying of this tax; or
(ii) any interest remaining in the state in state lands after subtracting amounts paid or due in part payment of the purchase price as provided in Subsection (2)(b)(i) under a contract of sale that is subject to the privilege tax under Subsection 59-4-101(1)(b); or
(c) land otherwise subject to the privilege tax under Section 59-4-101.
(3)
(a) If final payment has been made under Subsection (1) on state lands, the contract of sale shall be regarded as passing title to the purchaser or assignee.
(b) The state agency from which the interest was purchased shall certify the receipt of final payment to the commission.
(4) Any tax levied on the interest of a purchaser of state lands before title passes to the purchaser or assignee shall be collected in the same manner as taxes on personal property.
(5) The interest of a purchaser of state lands is subject to sale for delinquent taxes in the same manner as personal property.
(6)
(a) If any interest in state lands is sold for delinquent taxes, the officer making the sale shall issue a certificate of sale.
(b) When filed with the state agency from which the interest was purchased, the certificate or certified copy operates as an assignment of the interest of the original purchaser or assignee to the purchaser at the tax sale.
(1)
(a) Subject to Subsections (2) and (3), the first $11,500 of taxable value of real and tangible personal property in this state owned by the following is exempt from taxation:
(i) a blind person;
(ii) the unmarried surviving spouse of a blind person; or
(iii) a minor orphan of a blind person.
(b) If the claimant is the grantor of a trust holding title to real or tangible personal property on which an exemption is claimed, the claimant may claim the portion of the exemption under this section and be treated as the owner of that portion of the property held in trust for which the claimant proves to the satisfaction of the county that:
(i) title to the portion of the trust will revest in the claimant upon the exercise of a power:
(A) by:
(I) the claimant as grantor of the trust;
(II) a nonadverse party; or
(III) both the claimant and a nonadverse party; and
(B) regardless of whether the power is a power:
(I) to revoke;
(II) to terminate;
(III) to alter;
(IV) to amend; or
(V) to appoint;
(ii) the claimant is obligated to pay the taxes on that portion of the trust property beginning January 1 of the year the claimant claims the exemption; and
(iii) the claimant meets the requirements under this part for the exemption.
(2)
(a) Every person claiming the exemption under Subsection (1) shall file an application:
(i) on or before September 1 in each year; and
(ii) with the county in which the person resides.
(b) A county may extend the deadline for filing under Subsection (2)(a) until December 31 if the county finds that good cause exists to extend the deadline.
(3) The first year's application shall be accompanied by a statement signed by a licensed ophthalmologist verifying that the person:
(a) has no more than 20/200 visual acuity in the better eye when corrected; or
(b) has, in the case of better than 20/200 central vision, a restriction of the field of vision in the better eye which subtends an angle of vision no greater than 20 degrees.
(4)
(a) For purposes of this Subsection (4):
(i) "Property taxes due" means the taxes due on a person's property:
(A) for which an exemption is granted by a county under this section; and
(B) for the calendar year for which the exemption is granted.
(ii) "Property taxes paid" is an amount equal to the sum of:
(A) the amount of the property taxes the person paid for the taxable year for which the person is applying for the exemption; and
(B) the amount of tax the county exempts under this section.
(b) A county granting an exemption to a person under this section shall refund to that person an amount equal to the amount by which the person's property taxes paid exceed the person's property taxes due, if that amount is $1 or more.
(1) Power plants, power transmission lines, and other property used for generating and delivering electrical power, a portion of which is used for furnishing power for pumping water for irrigation purposes on lands in this state, are exempt from taxation, subject to the conditions of this section.
(2) For purposes of the exemption under Subsection (1), the commission shall determine:
(a) the total amount of electric power distributed by each distributor for all purposes within this state; and
(b) the total amount of electric power distributed by each distributor which was used exclusively for pumping water for the irrigation of lands within this state.
(3) The commission shall exempt from the total property assessment on all properties assessed within this state used for generating and distributing electrical power, that portion which the total amount of electric power used exclusively for pumping water for irrigation purposes bears to the total amount of electric power distributed within this state.
(4) The total amount of tax exempted shall be prorated among the distributors. The distributors shall prorate the benefits among the users according to the amount of power used for pumping water for irrigation purposes by each user.
(5) The commission may adopt and enforce all rules necessary to determine the exemption and prorate the benefits provided in this section.
(1) Water rights, ditches, canals, reservoirs, power plants, pumping plants, transmission lines, pipes, and flumes owned and used by individuals or corporations for irrigating land within the state owned by those individuals or corporations, or by the individual members of the corporation, are exempt from taxation to the extent that they are owned and used for irrigation purposes.
(2)
(a) As used in this Subsection (2) and for purposes of Article XIII, Section 3 of the Utah Constitution:
(i) "Domestic water" means water used for a residential or commercial application, including the outdoor watering of vegetation.
(ii) "Other water infrastructure" means property, other than a reservoir, pumping plant, ditch, canal, pipe, or flume, whose use is physically necessary in the production, treatment, storage, or distribution of water.
(b) If owned by a nonprofit entity and used within the state to irrigate land, provide domestic water, or provide water to a public water supplier, the following are exempt from taxation:
(i) a water right;
(ii) a reservoir, pumping plant, ditch, canal, pipe, and flume; and
(iii) other water infrastructure.
(c) Land occupied by a reservoir, ditch, canal, or pipe that is exempt under Subsection (2)(b)(ii) is exempt if the land is owned by the nonprofit entity that owns the reservoir, ditch, canal, or pipe.
(d) Land immediately adjacent to a reservoir, ditch, canal, or pipe that is exempt under Subsection (2)(b)(ii) is exempt if the land is:
(i) owned by the nonprofit entity that owns the adjacent reservoir, ditch, canal, or pipe; and
(ii) reasonably necessary for the maintenance or for otherwise supporting the operation of the reservoir, ditch, canal, or pipe.
Livestock in Utah, as defined in Section 59-2-102, is exempt from ad valorem property taxation.
Household furnishings, furniture, and equipment used exclusively by the owner at the owner's place of abode in maintaining a home for the owner and the owner's family are exempt from property taxation.
(1) Tangible personal property present in Utah on the assessment date, at noon, held for sale in the ordinary course of business or for shipping to a final out-of-state destination within 12 months and which constitutes the inventory of any retailer, wholesaler, distributor, processor, warehouseman, manufacturer, producer, gatherer, transporter, storage provider, farmer, or livestock raiser, is exempt from property taxation.
(2) This exemption does not apply to:
(a) inventory which is not otherwise subject to personal property taxation;
(b) mines;
(c) natural deposits; or
(d) a manufactured home or mobile home which is sited at a location where occupancy could take place.
(3) As used in this section:
(a) "Assessment date" means:
(i) for tangible personal property and vehicles other than vehicles described in Subsection (3)(a)(ii), January 1; and
(ii) for vehicles brought into Utah from out-of-state, the date the vehicles are brought into Utah.
(b) "Inventory" means all items of tangible personal property described as materials, containers, goods in process, finished goods, severed minerals, and other personal property owned by or in possession of the person claiming the exemption.
(c)
(i) "Mine" means a natural deposit of either metalliferous or nonmetalliferous valuable mineral.
(ii) "Mine" does not mean a severed mineral.
(d) "Natural deposit" means a metalliferous or nonmetalliferous mineral located at or below ground level that has not been severed or extracted from its natural state.
(e) "Severed mineral" means any mineral that has been previously severed or extracted from a natural deposit including severed or extracted minerals that:
(i) are stored above, below, or within the ground; and
(ii) are ultimately recoverable for future sale.
(4) The commission may adopt rules to implement the inventory exemption.
(1) As used in this section:
(a)
(i) "Item of taxable tangible personal property" does not include an improvement to real property or a part that will become an improvement.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining the term "item of taxable tangible personal property."
(b)
(i) "Supply" means taxable tangible personal property that is:
(A) not held for sale in the ordinary course of business;
(B) either carried on hand and for which no record of consumption is taken in ordinary business or typically used up within the calendar year; and
(C) used in the provision of the taxpayer's business activity.
(ii) "Supply" includes an office supply, a shipping supply, a maintenance supply, a replacement part, a lubricating oil, a fuel, or an item consumed in the course of operating the business.
(iii) "Supply" does not include furniture, a fixture, machinery, equipment, a computer, a cellular telephone, or a vehicle.
(c)
(i) "Taxable tangible personal property" means tangible personal property that is subject to taxation under this chapter.
(ii) "Taxable tangible personal property" does not include:
(A) tangible personal property required by law to be registered with the state before it is used on a public highway, public waterway, or public land or in the air;
(B) a mobile home as defined in Section 41-1a-102; or
(C) a manufactured home as defined in Section 41-1a-102.
(2)
(a) In accordance with Utah Constitution, Article XIII, Section 3, Subsection (2)(a)(vi), which provides that the Legislature may by statute exempt tangible personal property that, if subject to property tax, would generate an inconsequential amount of revenue, the Legislature exempts the tangible personal property described in this Subsection (2).
(b) The taxable tangible personal property of a taxpayer is exempt from taxation if the taxable tangible personal property has a total aggregate taxable value per county of $25,000 or less.
(c) For an item of taxable tangible personal property that is not exempt under Subsection (2)(b), the item is exempt from taxation if:
(i) the item is owned by a business and is not critical to the actual business operation of the business; and
(ii) the acquisition cost of the item is less than $500.
(d) A supply, including the cost of freight-in, is exempt from taxation.
(3)
(a) For a calendar year beginning on or after January 1, 2023, the commission shall increase the dollar amount described in Subsection (2)(b):
(i) by a percentage equal to the percentage difference between the consumer price index for the preceding calendar year and the consumer price index for calendar year 2021; and
(ii) up to the nearest $100 increment.
(b) For purposes of this Subsection (3), the commission shall calculate the consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(c) If the percentage difference under Subsection (3)(a)(i) is zero or a negative percentage, the consumer price index increase for the year is zero.
(4)
(a) For the first calendar year in which a taxpayer qualifies for an exemption described in Subsection (2)(b), a county assessor may require the taxpayer to file a signed statement described in Section 59-2-306.
(b) If a taxpayer qualifies for an exemption described in Subsection (2)(b) and files a signed statement in accordance with Subsection (4)(a), a county assessor may not require the taxpayer to file a signed statement for each continuing consecutive year for which the taxpayer qualifies for the exemption.
(c) If a taxpayer qualifies for an exemption described in Subsection (2)(c) for an item of tangible taxable personal property or in Subsection (2)(d) for a supply, a county assessor may not require the taxpayer to include the item on a signed statement described in Section 59-2-306.
(5)
(a) Beginning in 2023, a county assessor shall send a notice to a taxpayer who becomes eligible for the exemption described in Subsection (2)(b).
(b) The county assessor shall:
(i) send the notice during the calendar year in which the taxpayer becomes eligible for the exemption and before the deadline to file a signed statement; and
(ii) in the notice, inform the taxpayer that:
(A) in accordance with Subsection (4)(b), the taxpayer is not required to file a signed statement for each continuing consecutive year for which the taxpayer qualifies for the exemption; and
(B) the taxpayer shall notify the county assessor if the taxpayer's taxable tangible personal property exceeds the total aggregate taxable value described in Subsection (2)(b).
(6) A signed statement with respect to qualifying exempt primary residential rental personal property is as provided in Section 59-2-103.5.
(7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to administer this section and provide for uniform implementation.
Every tax has the effect of a judgment against the person, and every lien created by this title has the force and effect of an execution duly levied against all personal property of the delinquent. The judgment is not satisfied nor the lien removed until the taxes are paid or the property sold for the payment of the judgment or lien.
As used in this part:
(1) "Tax notice charge" means an amount that:
(a) a property owner owes to a tax notice charge entity in relation to real property; and
(b) the county treasurer lists on the property tax notice in accordance with Section 59-2-1317 or another statutory authorization allowing the item's inclusion on the property tax notice.
(2) "Tax notice charge entity" means the entity that certifies to the county treasurer an outstanding amount that:
(a) a property owner owes to the entity in relation to the property; and
(b) the county treasurer lists on the property tax notice as a tax notice charge.
(1) After the assessor assesses taxes or uniform fees on personal property, the assessor or, if this duty has been reassigned in an ordinance under Section 17-74-102, the treasurer shall:
(a) list the personal property tax or uniform fee with the real property of the owner in the manner required by law and as provided under Subsection (3), if the assessor or treasurer, as the case may be, determines that the real property is sufficient to secure the payment of the personal property taxes or uniform fees;
(b) immediately collect the taxes or uniform fees due on the personal property; or
(c) on or before the day on which the tax or uniform fee on personal property is due, obtain from the taxpayer a bond that is:
(i) payable to the county in an amount equal to the amount of the tax or uniform fee due, plus 20% of the amount of the tax or uniform fee due; and
(ii) conditioned for the payment of the tax or uniform fee on or before November 30.
(2)
(a) An unpaid tax as defined in Section 59-1-705, or unpaid uniform fee upon personal property listed with the real property is a lien upon the owner's real property as of noon of January 1 of each year.
(b) An unpaid tax as defined in Section 59-1-705, or unpaid uniform fee upon personal property not listed with the real property is a lien upon the owner's personal property as of noon of January 1 of each year.
(3) The assessor or treasurer, as the case may be, shall make the listing under this section:
(a) on the record of assessment of the real property; or
(b) by entering a reference showing the record of the assessment of the personal property on the record of assessment of the real property.
(4)
(a) The amount of tax or uniform fee assessed upon personal property is delinquent if the tax or uniform fee is not paid on the day on which the tax notice or the combined signed statement and tax notice under Section 59-2-306 is due.
(b) Subject to Subsection (4)(c), delinquent taxes or uniform fees under Subsection (4)(a) shall bear interest from the date of delinquency until the day on which the delinquent tax or uniform fee is paid at an interest rate equal to the sum of:
(i) 6%; and
(ii) the federal funds rate target:
(A) established by the Federal Open Markets Committee; and
(B) that exists on the January 1 immediately preceding the date of delinquency.
(c) The interest rate described in Subsection (4)(b) may not be less than 7% or more than 10%.
(5) A county assessor or treasurer shall deposit all collections of public funds from a personal property tax or personal property uniform fee no later than once every seven banking days with:
(a) the state treasurer; or
(b) a qualified depository for the credit of the county.
Unless taxes or uniform fees on personal property assessed by the county assessor are paid or secured as provided under Section 59-2-1302, the assessor or, if this duty has been reassigned in an ordinance under Section 17-74-102, the treasurer shall collect the taxes, including accrued interest and penalties, by seizure or seizure and subsequent sale of any personal property owned by the person against whom the tax is assessed. The assessor or treasurer, as the case may be, may seize that personal property on which a delinquent property tax or uniform fee exists at any time in order to protect a county's interest in that personal property. The sale of personal property shall be made in the following manner:
(1)
(a) For all personal property, except manufactured homes and mobile homes as provided in Subsection (1)(b), the sale shall be made:
(i) at public auction;
(ii) of a sufficient amount of property to pay the taxes, or uniform fees and interest, penalties, and costs;
(iii) when practicable, in the city, town, or precinct where the property was seized; and
(iv) after one week's notice of the time and place of the sale, given by:
(A)
(I) publication in a newspaper having general circulation in the county; and
(II) publication in accordance with Section 45-1-101; and
(B) posting in three public places in the county.
(b) For manufactured homes and mobile homes that are used as a residence and that are listed on the personal property roll of the county, the sale shall be made:
(i) at public auction;
(ii) when practicable, in the city, town, or precinct where the property was seized;
(iii) no sooner than one year after the taxes on the property became delinquent as determined in Section 59-2-1302;
(iv) after publication of the date, time, and place of sale:
(A) in a newspaper having general circulation in the county, once in each of two successive weeks immediately preceding the date of the sale; and
(B) in accordance with Section 45-1-101 for two weeks immediately preceding the date of the sale; and
(v) after notification, sent by certified mail at least 10 days prior to the first date of publication under Subsection (1)(b)(iv), to the owner of the manufactured home or mobile home, all lien holders of record, and any other person known by the assessor to have an interest in the manufactured home or mobile home, of the date, time, and place of the sale.
(2) For seizing or selling personal property the assessor or treasurer, as the case may be, may charge in each case the actual and necessary expenses for travel and seizing, handling, keeping, selling, or caring for that property.
(3) Upon payment of the price bid for any personal property sold under this section, the delivery of the property, with a bill of sale, vests title in the purchaser.
(4) All sale proceeds in excess of taxes, or uniform fees and interest, penalties, and costs shall be returned to the owner of the personal property, and until claimed shall be deposited in the county treasury and made subject to the order of the owner, the owner's heirs, or assigns.
(5) The unsold portion of any property may be left at the place of sale at the risk of the owner.
(6) If there is no acceptable purchaser of the property, the property shall be declared the property of the county. The county executive may sell or rent any property held in the name of the county at any time after the sale upon terms determined by the county legislative body.
(1)
(a) The amount of taxes to be collected in the current year on personal property assessed by the county assessor shall be based on the tax rates levied by all taxing entities for the previous year, and the tax so billed shall be the full tax on the property for the current year.
(b) The money collected in accordance with Subsection (1)(a) shall be paid:
(i) into the county treasury; and
(ii) by the treasurer to the various taxing entities pro rata in accordance with the tax rates levied and approved for the current year, including new entities levying for the first time.
(2) An assessment shall be collected in accordance with the effective date and boundary adjustment provisions in Section 17-61-306.
(1) The assessor or, if this duty has been reassigned in an ordinance under Section 17-74-102, the treasurer shall note on the assessment roll, opposite the names of each person against whom taxes have been assessed or tax notice charges have been listed, the amount of the taxes and tax notice charges paid.
(2)
(a) The assessor or treasurer, as the case may be, shall require all checks to be made payable to the office of the county assessor or treasurer, respectively.
(b) If the assessor or treasurer receives checks made payable to a payee other than the office of the county assessor or treasurer, respectively, the assessor or treasurer, as the case may be, shall immediately endorse the check with a restrictive endorsement that makes the check payable to the office of the county treasurer.
(3) The assessor shall deposit all money the assessor collects into an account controlled by the county treasurer.
(1) If any person moves from one county to another after being assessed on personal property, the county in which the person was assessed may sue for and collect the tax in the name of the county where the assessment was made.
(2) At the trial, a certified copy of the assessment from the county where the assessment was made, with a signed statement attached that the tax has not been paid, describing it as on the assessment book or delinquent list, is prima facie evidence that the tax and the interest are due, and entitles the county to judgment, unless the defendant proves that the tax was paid.
(3) The county treasurer shall be credited and the county finance officer, as that term is defined in Section 17-66-101, shall allow the expenses of collecting the tax and permit a deduction from the amount collected, not to exceed 1/3 of the amount of the tax collected.
(1) The commission, upon apportionment of the property of rail car companies and state-assessed commercial vehicles, shall proceed to collect the taxes from the owners of the property, and shall send to each owner notice of the amount of the tax assessed against it, when and where payable, when delinquent, and the penalty provided by law.
(a) The commission shall remit taxes collected from owners of state-assessed commercial vehicles to each county treasurer at least quarterly.
(b) On or before the first Monday in January following in each year, the commission shall remit to the state treasurer all other taxes collected and due the state, and to each county the taxes collected and due to it and to the various taxing entities included in the county. The state treasurer and the treasurers of the several taxing entities shall make proper entries in their records of the receipt of the taxes.
(2) All railroads doing business in this state shall furnish the commission with any information required by the commission, within the knowledge of the railroad companies, which will aid the commission in the collection of taxes from rail car companies.
(1) Property taxes assessed by the commission shall be collected, billed, and paid in the manner provided for the collection, billing, and enforcement of other general property taxes under this chapter, except:
(a) the rolling stock of rail car companies; and
(b) state-assessed commercial vehicles.
(2)
(a) A county treasurer may require a taxpayer, other than a taxpayer described in Subsection (1)(a) or (b), to pay an ad valorem tax liability immediately if:
(i) the taxpayer's property taxes are assessed by the commission under Section 59-2-201; and
(ii) the taxpayer gives any indication of:
(A) departing from the state;
(B) removing the taxpayer's property from the state; or
(C) doing any other act which may prejudice or hinder the collection process for any assessment period.
(b) If a tax is not paid as provided in this chapter, the county treasurer shall collect the tax:
(i) for personal property and uniform fees, in the same manner as is provided for the collection of delinquent taxes or uniform fees under Sections 59-2-1302 and 59-2-1303; or
(ii) for all other property, including personal property and uniform fees listed with real property under Section 59-2-1302, in the same manner as is provided for the collection of delinquent taxes under Section 59-2-1331.
(c) The provisions of Sections 59-2-1302 and 59-2-1303 apply to the assessment by the commission or the county assessor of taxpayers other than a taxpayer described in Subsection (1)(a) or (b).
(1)
(a) The commission may enter into an agreement with a commercial or industrial taxpayer to provide for equal, or approximately equal, property tax payments over a reasonable period of years, not to exceed 20 years, if:
(i) the payment schedule is based on an accepted valuation methodology that reasonably estimates the property's anticipated fair market value over the period of the proposed equal payments;
(ii) the agreement includes a provision making the initial equal payment schedule subject to an annual adjustment, as necessary, to account for differences between the property's fair market value as of the annual lien date and the property's fair market value that formed the basis of the initial equal payment schedule;
(iii) the commission, the taxpayer, and each affected taxing entity approve the agreement; and
(iv) the total amount the taxpayer pays under the agreement is no less than the amount the taxpayer would have paid in the absence of the agreement.
(b) A taxing entity may not approve an agreement under this section on behalf of another taxing entity.
(2)
(a) Subject to Subsection (2)(b), a tax lien under this chapter against the taxpayer's property is not affected by a payment pursuant to an agreement under this section to the extent of the difference between the amount the taxpayer would have been required to pay in the absence of the agreement and the amount of the payment under the agreement.
(b) For purposes of enforcing a tax lien under this chapter, a taxpayer's failure to pay the full amount of taxes that the taxpayer would have been required to pay in the absence of an agreement under this section does not constitute a failure to pay the full amount of taxes owing:
(i) if the taxpayer pays the full amount of the payment owing under the agreement; and
(ii) unless the taxpayer:
(A) files for bankruptcy;
(B) transfers ownership of the property that is the subject of the property taxes; or
(C) has a change in ownership and the new owner does not assume all responsibility and liability under the agreement.
(3)
(a) The commission may revise, accelerate, or cancel an equal payment agreement under this section to the same extent and for the same reasons that the commission may revise, accelerate, or cancel an installment agreement under Section 59-1-1004.
(b) The commission shall give the taxpayer reasonable notice of its intent to revise or cancel an equal payment agreement under this section.
(4) The commission shall promulgate rules to ensure that tax revenue derived from payments pursuant to an agreement under this section do not affect the calculation of the certified tax rate under Section 59-2-924.
(5) If the commission or a taxing entity enters into an equal payment agreement under this section:
(a) the commission shall annually provide an electronic report to the Revenue and Taxation Interim Committee on the effects of equal payment agreements under this section; and
(b) the Revenue and Taxation Interim Committee shall annually review and assess the effects of equal payment agreements under this section.
(1)
(a) On or before December 15 of each year, the commission shall publish a list of the delinquent rail car companies and state-assessed commercial vehicles:
(i) in a newspaper having general circulation in the state; and
(ii) as required in Section 45-1-101.
(b) The list shall contain the names of the owners, when known, and a general description of the property assessed as to which the taxes are delinquent, and the amount of the delinquent taxes.
(c) The commission shall publish with the list a notice that unless the delinquent taxes, together with the penalty, are paid before December 21, the property of the delinquent or so much of it as may be necessary to pay the amount of the taxes, penalty, and interest at the rate prescribed in Section 59-1-402 from December 31 to the date of sale, shall be seized and sold for taxes, interest, and costs, the sale to be made at any time and place at the discretion of the commission.
(d) The provisions of law governing the seizure and sale by county treasurers of personal property for delinquent taxes shall apply to sales made by the commission under this section, except that notice of the time and place of the sale shall be given by publication:
(i) in a newspaper of general circulation in the state; and
(ii) as required in Section 45-1-101.
(2) Property seized by the commission pursuant to this section may be redeemed, at any time prior to the sale, by payment of the full amount of taxes due from the delinquent together with all penalties, interest, and the costs then accrued.
(3) All sums collected by the commission upon the sale or redemption of property pursuant to this section shall be immediately distributed as follows:
(a) all interest, penalties, and costs to the appropriate county treasurer; and
(b) any excess over the taxes, penalties, interest, and cost shall be deposited with the state treasurer subject to the order of the owner of the property sold, or the owner's heirs or assigns.
(1) The treasurer shall collect the taxes delinquent on personal property assessed by the commission as determined by the assessor, except when sufficient real estate is liable for the tax, by seizure and sale of any personal property owned by the delinquent taxpayer.
(2) The sale shall be at public auction, and of a sufficient amount of property to pay the taxes and costs, and when practicable shall be made in the city, town, or precinct where seized.
(3) The sale shall be made after one week's notice of the time and place of the sale, given by:
(a)
(i) publication in a newspaper having general circulation in the county; and
(ii) publication in accordance with Section 45-1-101; and
(b) posting in three public places in the county.
(4) For seizing or selling personal property the treasurer may charge in each case the actual and necessary expenses for travel and seizing, handling, keeping, selling, or caring for property so seized or sold.
(5) On payment of the price bid for any personal property sold, its delivery, with a bill of sale, vests title in the purchaser.
(6) All excess of the proceeds of any sale over the taxes and costs shall be returned to the owner of the property sold, and until claimed shall be deposited in the county treasury and disposed of under Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act, subject to the order of the owner, or the owner's heirs or assigns.
(7) If there is no acceptable purchaser of the property, the property shall be declared the property of the county. The county executive may sell or rent any property held in the name of the county at any time after the sale upon terms determined by the county legislative body.
(8) The unsold portion of any property may be left at the place of sale at the risk of the owner.
Each county treasurer shall, during the first week in February of each year, report to the commission the name of each person who has failed to pay the taxes assessed and levied against the person during the preceding year upon property assessed by the commission. The commission shall note that the prior year's taxes are delinquent on the next tax notice sent to property owners under Section 59-2-1307.
The state auditor, any member of the commission, or any person designated by the commission may examine the books of any county officer charged with the collection and receipt of state taxes.
If, on examination, it is found that any officer has been guilty of defrauding the state of revenue or has neglected or refused to perform any duty relating to revenue, the attorney general shall prosecute the delinquent officer.
No assessment or act relating to assessment or collection of taxes is illegal on account of informality or because the assessment or act was not completed within the time required by law.
The fines and forfeitures incurred by violation of any of the provisions of this chapter shall be paid into the treasury for the use of the county where the property is located.
Every county assessor and county treasurer shall annually, on the first Monday in January, make a settlement with the county auditor of all transactions connected with the revenue for the previous year, and every county treasurer, on the expiration of the treasurer's term of office, shall make the settlement.
(1) As used in this section, "political subdivision lien" means the same as that term is defined in Section 11-60-102.
(2) Subject to the other provisions of this section, the county treasurer shall:
(a) collect the taxes and tax notice charges; and
(b) provide a notice to each taxpayer that contains the following:
(i) the kind and value of property assessed to the taxpayer;
(ii) the street address of the property, if available to the county;
(iii) that the property may be subject to a detailed review in the next year under Section 59-2-303.1;
(iv) the amount of taxes levied;
(v) a separate statement of the taxes levied only on a certain kind or class of property for a special purpose;
(vi) instructions for payment of the taxes and tax notice charges applicable to the property, including the taxpayer's payment options and collection procedures;
(vii) any tax notice charges applicable to the property, including:
(A) if applicable, a political subdivision lien for road damage that a railroad company causes, as described in Section 10-7-30;
(B) if applicable, a political subdivision lien for municipal water distribution, as described in Section 10-8-17, or a political subdivision lien for an increase in supply from a municipal water distribution, as described in Section 10-8-19;
(C) if applicable, a political subdivision lien for unpaid abatement fees as described in Section 10-11-4;
(D) if applicable, a political subdivision lien for the unpaid portion of an assessment assessed in accordance with Title 11, Chapter 42, Assessment Area Act, or Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act, including unpaid costs, charges, and interest as of the date the local entity certifies the unpaid amount to the county treasurer;
(E) if applicable, for a special district in accordance with Section 17B-1-902, a political subdivision lien for an unpaid fee, administrative cost, or interest;
(F) if applicable, a political subdivision lien for an unpaid irrigation district use charge as described in Section 17B-2a-506;
(G) if applicable, a political subdivision lien for a contract assessment under a water contract, as described in Section 17B-2a-1007;
(H) if applicable, a property tax penalty that a public infrastructure district imposes, as described in Section 17D-4-304;
(I) if applicable, an annual payment to the Military Installation Development Authority or an entity designated by the authority in accordance with Section 63H-1-501; and
(J) if applicable, for property located in a county of the first class, as classified in Section 17-60-104, a levy imposed for a city library under Subsection 10-6-133.5(5);
(viii) if a county's tax notice includes an assessment area charge, a statement that, due to potentially ongoing assessment area charges, costs, penalties, and interest, payment of a tax notice charge may not:
(A) pay off the full amount the property owner owes to the tax notice entity; or
(B) cause a release of the lien underlying the tax notice charge;
(ix) if applicable, the annual payment described in Subsection 63H-1-501(4)(a);
(x) the date the taxes and tax notice charges are due;
(xi) the street address or website at which the taxes and tax notice charges may be paid;
(xii) the date on which the taxes and tax notice charges are delinquent;
(xiii) the penalty imposed on delinquent taxes and tax notice charges;
(xiv) a statement that explains the taxpayer's right to direct allocation of a partial payment in accordance with Subsection (9);
(xv) other information specifically authorized to be included on the notice under this chapter;
(xvi) other property tax information approved by the commission; and
(xvii) if sent in calendar year 2024, 2025, or 2026:
(A) notice that the taxpayer may request electronic notice as described in Subsection 17-71-302(1)(m); and
(B) instructions describing how to elect to receive a notice as described in Subsection 17-71-302(1)(m).
(3)
(a) Unless expressly allowed under this section or another statutory provision, the treasurer may not add an amount to be collected to the property tax notice.
(b) If the county treasurer adds an amount to be collected to the property tax notice under this section or another statutory provision that expressly authorizes the item's inclusion on the property tax notice:
(i) the amount constitutes a tax notice charge; and
(ii)
(A) the tax notice charge has the same priority as property tax; and
(B) a delinquency of the tax notice charge triggers a tax sale, in accordance with Section 59-2-1343.
(4) For any property for which property taxes or tax notice charges are delinquent, the notice described in Subsection (2) shall state, "Prior taxes or tax notice charges are delinquent on this parcel."
(5) Except as provided in Subsection (6), the county treasurer shall:
(a) mail the notice required by this section, postage prepaid; or
(b) leave the notice required by this section at the taxpayer's residence or usual place of business, if known.
(6)
(a) Subject to the other provisions of this Subsection (6), a county treasurer may, at the county treasurer's discretion, provide the notice required by this section by electronic mail if a taxpayer makes an election, according to procedures determined by the county treasurer, to receive the notice by electronic mail.
(b) A taxpayer may revoke an election to receive the notice required by this section by electronic mail if the taxpayer provides written notice to the treasurer on or before October 1.
(c) A revocation of an election under this section does not relieve a taxpayer of the duty to pay a tax or tax notice charge due under this chapter on or before the due date for paying the tax or tax notice charge.
(d) A county treasurer shall provide the notice required by this section using a method described in Subsection (5), until a taxpayer makes a new election in accordance with this Subsection (6), if:
(i) the taxpayer revokes an election in accordance with Subsection (6)(b) to receive the notice required by this section by electronic mail; or
(ii) the county treasurer finds that the taxpayer's electronic mail address is invalid.
(e) A person is considered to be a taxpayer for purposes of this Subsection (6) regardless of whether the property that is the subject of the notice required by this section is exempt from taxation.
(7)
(a) The county treasurer shall provide the notice required by this section to a taxpayer on or before November 1.
(b) The county treasurer shall keep on file in the county treasurer's office the information set forth in the notice.
(c) The county treasurer is not required to mail a tax receipt acknowledging payment.
(8) This section does not apply to property taxed under Section 59-2-1302 or 59-2-1307.
(9)
(a) A taxpayer who pays less than the full amount due on the taxpayer's property tax notice may, on a form provided by the county treasurer, direct how the county treasurer allocates the partial payment between:
(i) the total amount due for property tax;
(ii) the amount due for assessments, past due special district fees, and other tax notice charges; and
(iii) any other amounts due on the property tax notice.
(b) The county treasurer shall comply with a direction submitted to the county treasurer in accordance with Subsection (9)(a).
(c) The provisions of this Subsection (9) do not:
(i) affect the right or ability of a local entity to pursue any available remedy for non-payment of any item listed on a taxpayer's property tax notice; or
(ii) toll or otherwise change any time period related to a remedy described in Subsection (9)(c)(i).
The county treasurer shall mark the date of the payment of any tax on the assessment roll opposite the property identification number.
(1) If a person pays taxes in person at the county treasurer's office, the county treasurer shall, upon request, give a receipt to the person paying the taxes, specifying the amount of the taxes due, the property identification number, and the aggregate amount of taxes paid.
(2) County warrants shall be taken in payment of county taxes, city warrants in payment of city taxes, and school district warrants in payment of school district taxes.
(3) All taxes shall be paid in cash, unless the county treasurer adopts rules otherwise.
On the first Monday of March and June, and the second Monday of September and December, the county treasurer shall settle with the county legislative body for all money collected by the treasurer, and on those days shall deliver to and file in the office of the county auditor a statement under oath showing:
(1) an account of all transactions and receipts since the last settlement; and
(2) that all money collected is in the county treasury.
The county legislative body, upon sufficient evidence being produced that property has been either erroneously or illegally assessed, may order the county treasurer to allow the taxes on that part of the property erroneously or illegally assessed to be deducted before payment of taxes. Any taxes, interest, and costs paid more than once, or erroneously or illegally collected, may, by order of the county legislative body, be refunded by the county treasurer, and the portion of taxes, interest, and costs paid to the state or any taxing entity shall be refunded to the county, and the appropriate officer shall draw a warrant for that amount in favor of the county.
If the county treasurer determines that any property has been assessed more than once for the same year, the treasurer shall collect only the tax justly due and report the facts, under affidavit, to the county auditor.
(1) The county treasurer shall issue a receipt showing the interest on which taxes or tax notice charges are paid to any person paying taxes on an undivided interest in real estate.
(2) If any portion of the taxes or tax notice charges on the real estate remain unpaid, it is the duty of the treasurer to sell only the undivided interest in the real estate which belongs to the co-owners who have not paid their portion of the tax.
(1) The district court shall require every administrator or executor to pay out of the funds of the estate all taxes and tax notice charges due from the estate.
(2) No order or decree for the distribution of any property of any decedent among the heirs or devisees may be made until all taxes and tax notice charges against the estate are paid.
(1)
(a) A tax upon real property is a lien against the property assessed.
(b) A tax due upon improvements upon real property assessed to a person other than the owner of the real property is a lien upon the property and improvements.
(c) A lien described in Subsection (1)(a) or (b) shall attach on January 1 of each year.
(2) An assessment shall be collected in accordance with the effective date and boundary adjustment provisions in Section 17-61-306.
(1) No injunction may be granted by any court to restrain the collection of any tax, any part of the tax, or any tax notice charge, nor to restrain the sale of any property for the nonpayment of the tax or tax notice charge, unless the tax or tax notice charge, or some part of the tax or tax notice charge sought to be enjoined:
(a) is not authorized by law; or
(b) is on property which is exempt from taxation.
(2) If the payment of a part of a tax or tax notice charge is sought to be enjoined, the other part shall be paid or tendered before any action may be commenced.
(1) Where a taxing entity demands or enforces a tax or where an entity responsible for a tax notice charge demands or enforces the tax notice charge, and the person whose property is taxed or charged claims the tax or tax notice charge is unlawful, that person may pay the tax or tax notice charge under protest to the county treasurer.
(2) The person may then bring an action in the district court against the officer or taxing entity to recover the tax or tax notice charge or any portion of the tax or tax notice charge paid under protest.
(1) If a taxpayer obtains a final and unappealable judgment or order in accordance with Section 59-2-1330 ordering a reduction in the amount of any tax levied against any property for which the taxpayer paid a tax or any portion of a tax under this chapter for a calendar year, the state or the taxing entity against which the taxpayer obtained the final and unappealable judgment or order shall:
(a) audit and allow the final and unappealable judgment or order;
(b) cause a warrant to be drawn for the amount recovered by the final and unappealable judgment or order; and
(c) pay the taxpayer as required by Section 59-2-1330.
(2) At the request of a county, the state or a taxing entity shall cause a warrant to be drawn upon the treasurer of the state or the taxing entity in favor of the county:
(a) if:
(i) the final and unappealable judgment or order described in Subsection (1) is obtained against a county; and
(ii) any portion of the taxes included in the final and unappealable judgment or order described in Subsection (1):
(A) is levied by the state or a taxing entity other than the county; and
(B) has been paid over to the state or the taxing entity described in Subsection (2)(a)(ii)(A) by the county; and
(b) for the state's or the taxing entity's proportionate share of a payment to a taxpayer required by Section 59-2-1330.
(3) For purposes of Subsection (2), the state's or a taxing entity's proportionate share of a payment to a taxpayer required by Section 59-2-1330 is an amount equal to the product of:
(a) the percentage by which the amount of any tax levied against any property for which the taxpayer paid a tax under this chapter for a calendar year was reduced in accordance with the final and unappealable judgment or order described in Subsection (1); and
(b) the total amount of the taxes for the property described in Subsection (1) paid over to the state or the taxing entity by the county for the calendar year described in Subsection (3)(a).
(4) If the final and unappealable judgment or order described in Subsection (1) results from an objection to the commission's assessment of property to which the county is a party under Section 59-2-1007, any expenses incurred by the county in connection with the objection shall be apportioned proportionately among each taxing entity located within the county.
This remedy supersedes the remedy of injunction and all other remedies which might be invoked to prevent the collection of taxes alleged to be unlawfully levied or demanded, unless the court finds that the remedy provided is inadequate, in which case the injunctive proceedings under Section 59-2-1326 apply.
(1) Unless otherwise specifically provided by statute, property taxes shall be paid directly to the county treasurer:
(a) on the date that the property taxes are due; and
(b) as provided in this chapter.
(2)
(a) The county treasurer shall apply a payment that is insufficient to cover both a tax or tax notice charge that is deferred in accordance with Chapter 2a, Part 7, Discretionary Deferral, Chapter 2a, Part 8, Nondiscretionary Deferral for Property with Qualifying Increase, or Chapter 2a, Part 9, Nondiscretionary Deferral for Elderly Property Owners, and a current year property tax or tax notice charge to the current tax year property tax or tax notice charge first.
(b) The county treasurer shall send notice to the property owner:
(i) that the payment was insufficient;
(ii) that the county applied the payment to the tax or tax notice charges for the current tax year; and
(iii) of the amount of tax and tax notice charge that is outstanding.
(3) A taxpayer shall receive payment as provided in this section if a reduction in the amount of any tax levied against any property for which the taxpayer paid a tax or any portion of a tax under this chapter for a calendar year is required by a final and unappealable judgment or order described in Subsection (4) issued by:
(a) a county board of equalization;
(b) the commission; or
(c) a court of competent jurisdiction.
(4)
(a) For purposes of Subsection (3), the state or any taxing entity that has received property taxes or any portion of property taxes from a taxpayer described in Subsection (2) shall pay the taxpayer if:
(i) the taxes the taxpayer paid in accordance with Subsection (3) are collected by an authorized officer of the:
(A) county; or
(B) state; and
(ii) the taxpayer obtains a final and unappealable judgment or order:
(A) from a county board of equalization, the commission, or a court of competent jurisdiction;
(B) against:
(I) the taxing entity or an authorized officer of the taxing entity; or
(II) the state or an authorized officer of the state; and
(C) ordering a reduction in the amount of any tax levied against any property for which a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
(b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined in accordance with Subsections (5) through (8).
(5) For purposes of Subsections (3) and (4), the amount the state shall pay to a taxpayer is equal to the sum of:
(a) if the difference described in this Subsection (5)(a) is greater than $0, the difference between:
(i) the tax the taxpayer paid to the state in accordance with Subsection (3); and
(ii) the amount of the taxpayer's tax liability to the state after the reduction in the amount of tax levied against the property in accordance with the final and unappealable judgment or order described in Subsection (4);
(b) if the difference described in this Subsection (5)(b) is greater than $0, the difference between:
(i) any penalties the taxpayer paid to the state in accordance with Section 59-2-1331; and
(ii) the amount of penalties the taxpayer is liable to pay to the state in accordance with Section 59-2-1331 after the reduction in the amount of tax levied against the property in accordance with the final and unappealable judgment or order described in Subsection (4);
(c) as provided in Subsection (7)(a), interest the taxpayer paid in accordance with Section 59-2-1331 on the amounts described in Subsections (5)(a) and (5)(b); and
(d) as provided in Subsection (7)(b), interest on the sum of the amounts described in Subsections (5)(a), (5)(b), and (5)(c).
(6) For purposes of Subsections (3) and (4), the amount a taxing entity shall pay to a taxpayer is equal to the sum of:
(a) if the difference described in this Subsection (6)(a) is greater than $0, the difference between:
(i) the tax the taxpayer paid to the taxing entity in accordance with Subsection (3); and
(ii) the amount of the taxpayer's tax liability to the taxing entity after the reduction in the amount of tax levied against the property in accordance with the final and unappealable judgment or order described in Subsection (4);
(b) if the difference described in this Subsection (6)(b) is greater than $0, the difference between:
(i) any penalties the taxpayer paid to the taxing entity in accordance with Section 59-2-1331; and
(ii) the amount of penalties the taxpayer is liable to pay to the taxing entity in accordance with Section 59-2-1331 after the reduction in the amount of tax levied against the property in accordance with the final and unappealable judgment or order described in Subsection (4);
(c) as provided in Subsection (7)(a), interest the taxpayer paid in accordance with Section 59-2-1331 on the amounts described in Subsections (6)(a) and (6)(b); and
(d) as provided in Subsection (7)(b), interest on the sum of the amounts described in Subsections (6)(a), (6)(b), and (6)(c).
(7) Except as provided in Subsection (8):
(a) interest shall be refunded to a taxpayer on the amount described in Subsection (5)(c) or (6)(c) in an amount equal to the amount of interest the taxpayer paid in accordance with Section 59-2-1331; and
(b) interest shall be paid to a taxpayer on the amount described in Subsection (5)(d) or (6)(d):
(i) beginning on the later of:
(A) the day on which the taxpayer paid the tax in accordance with Subsection (3); or
(B) January 1 of the calendar year immediately following the calendar year for which the tax was due;
(ii) ending on the day on which the state or a taxing entity pays to the taxpayer the amount required by Subsection (5) or (6); and
(iii) at the interest rate earned by the state treasurer on public funds transferred to the Public Treasurers' Investment Fund as defined in Section 51-7-3.
(8)
(a) The state may not pay or refund interest to a taxpayer under Subsection (7) on any tax the taxpayer paid in accordance with Subsection (3) that exceeds the amount of tax levied by the state for that calendar year as stated on the notice required by Section 59-2-1317.
(b) A taxing entity may not pay or refund interest to a taxpayer under Subsection (7) on any tax the taxpayer paid in accordance with Subsection (3) that exceeds the amount of tax levied by the taxing entity for that calendar year as stated on the notice required by Section 59-2-1317.
(9)
(a) Each taxing entity may levy a tax to pay the taxing entity's share of the final and unappealable judgment or order described in Subsection (4) if:
(i) the final and unappealable judgment or order is issued no later than 15 days prior to the date the certified tax rate is set under Section 59-2-924;
(ii) the following information is included on the notice under Section 59-2-919.1:
(A) the date, time, and location of the public hearing at which the judgment levy will be considered;
(B) the amount of the judgment levy; and
(C) the term of the judgment levy;
(iii) the taxing entity complies with the requirements of Section 59-2-918.5; and
(iv) the final and unappealable judgment or order is an eligible judgment, as defined in Section 59-2-102.
(b) The levy under Subsection (9)(a) is in addition to, and exempt from, the maximum levy established for the taxing entity.
(c) A taxing entity may divide a judgment levy under this Subsection (9) and impose the judgment levy in more than one subsequent tax year.
(10)
(a) A taxpayer that objects to the assessment of property assessed by the commission shall pay, on or before the property tax due date established under Subsection 59-2-1331(1) or Section 59-2-1332, the full amount of taxes stated on the notice required by Section 59-2-1317 if:
(i) the taxpayer has applied to the commission for a hearing in accordance with Section 59-2-1007 on the objection to the assessment; and
(ii) the commission has not issued a written decision on the objection to the assessment in accordance with Section 59-2-1007.
(b) A taxpayer that pays the full amount of taxes due under Subsection (10)(a) is not required to pay penalties or interest on an assessment described in Subsection (10)(a) unless:
(i) a final and unappealable judgment or order establishing that the property described in Subsection (10)(a) has a value greater than the value stated on the notice required by Section 59-2-1317 is issued by:
(A) the commission; or
(B) a court of competent jurisdiction; and
(ii) the taxpayer fails to pay the additional tax liability resulting from the final and unappealable judgment or order described in Subsection (10)(b)(i) within a 45-day period after the county bills the taxpayer for the additional tax liability.
(11)
(a) Except as provided in Subsection (11)(b), a payment that is required by this section shall be paid to a taxpayer:
(i) within 120 days after the day on which the final and unappealable judgment or order is issued in accordance with Subsection (4); or
(ii) if a judgment levy is imposed in accordance with Subsection (9):
(A) if the payment to the taxpayer required by this section is $15,000 or more, no later than December 31 of the first year in which the judgment levy is imposed; and
(B) if the payment to the taxpayer required by this section is less than $15,000, within 120 days after the date the final and unappealable judgment or order is issued in accordance with Subsection (4).
(b) A taxpayer may enter into an agreement:
(i) that establishes a time period other than a time period described in Subsection (11)(a) for making a payment to the taxpayer that is required by this section; and
(ii) with:
(A) an authorized officer of a taxing entity for a tax imposed by a taxing entity; or
(B) an authorized officer of the state for a tax imposed by the state.
(1)
(a) Except as provided in Subsection (1)(b) and subject to Subsections (1)(c) and (d), all property taxes, unless otherwise specifically provided for under Section 59-2-1332, or other law, and any tax notice charges, are due on November 30 of each year following the date of levy.
(b) If November 30 falls on a Saturday, Sunday, or holiday:
(i) the date of the next following day that is not a Saturday, Sunday, or holiday shall be substituted in Subsection (1)(a) and Subsection 59-2-1332(1) for November 30; and
(ii) the date of the day occurring 30 days after the date under Subsection (1)(b)(i) shall be substituted in Subsection 59-2-1332(1) for December 30.
(c) If a property tax is paid or postmarked after the due date described in this Subsection (1) the property tax is delinquent.
(d) A county treasurer or other public official, public entity, or public employee may not require the payment of a property tax before the due date described in this Subsection (1).
(2)
(a) Except as provided in Subsections (2)(e), (f), and (g)(i), for each parcel, all delinquent taxes and tax notice charges on each separately assessed parcel are subject to a penalty of 2.5% of the amount of the delinquent taxes and tax notice charges or $10, whichever is greater.
(b) Unless the delinquent taxes and tax notice charges, together with the penalty, are paid on or before January 31, the amount of taxes and tax notice charges and penalty shall bear interest on a per annum basis from the January 1 immediately following the delinquency date.
(c) Except as provided in Subsection (2)(d), for purposes of Subsection (2)(b), the interest rate is equal to the sum of:
(i) 6%; and
(ii) the federal funds rate target:
(A) established by the Federal Open Market Committee; and
(B) that exists on the January 1 immediately following the date of delinquency.
(d) The interest rate described in Subsection (2)(c) may not be:
(i) less than 7%; or
(ii) more than 10%.
(e) The penalty described in Subsection (2)(a) is 1% of the amount of the delinquent taxes and tax notice charges or $10, whichever is greater, if all delinquent taxes, all tax notice charges, and the penalty are paid on or before the January 31 immediately following the delinquency date.
(f) This section does not apply to the costs, charges, and interest rate accruing on any tax notice charge related to an assessment assessed in accordance with:
(i) Title 11, Chapter 42, Assessment Area Act; or
(ii) Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act.
(g)
(i) The county shall waive any penalty or interest for a property granted a deferral in accordance with Section 59-2a-801 from the day of the delinquency through the end of the deferral period.
(ii) Penalties and interest accrue in accordance with this Subsection (2) on any tax or tax notice charge that is delinquent after the deferral period ends.
(3)
(a) If the delinquency exceeds one year, the amount of taxes, tax notice charges, and penalties for that year and all succeeding years shall bear interest until settled in full through redemption or tax sale.
(b) The interest rate to be applied shall be calculated for each year as established under Subsection (2) and shall apply on each individual year's delinquency until paid.
(4) The county treasurer may accept and credit on account against taxes and tax notice charges becoming due during the current year, at any time before or after the tax rates are adopted, but not subsequent to the date of delinquency, either:
(a) payments in amounts of not less than $10; or
(b) the full amount of the unpaid tax and tax notice charges.
(5)
(a) At any time before the county treasurer provides the tax notice described in Section 59-2-1317, the county treasurer may refund amounts accepted and credited on account against taxes and tax notice charges becoming due during the current year.
(b) Upon recommendation by the county treasurer, the county legislative body shall adopt rules or ordinances to implement the provisions of this Subsection (5).
(1)
(a) Subject to Subsection (1)(b), a person may make a payment toward a subdivided lot's proportional share of the property tax on the base parcel before the date on which the property tax is due.
(b) A person may make a payment under Subsection (1)(a) only if the record owner of the subdivided lot is a bona fide purchaser.
(2)
(a) Upon request, the county treasurer shall provide a person:
(i) the amount of a subdivided lot's proportional share of the property tax on the base parcel for the current year; or
(ii) if the amount described in Subsection (2)(a)(i) is unavailable, a reasonable estimate of a subdivided lot's proportional share of the property tax on the base parcel for the current year.
(b) The county treasurer shall calculate a subdivided lot's proportional share of the property tax on the base parcel by comparing:
(i) the amount of the value of the base parcel as described in Subsection (2)(b)(ii) that is attributable to the property that comprises the subdivided lot as the property existed on January 1 of the current year; and
(ii) the value of the base parcel as it existed on January 1 of the current year.
(3)
(a) The county treasurer shall send a written notice described in Subsection (3)(b) to the record owner of a subdivided lot if:
(i) a person makes a payment under Subsection (1) toward the subdivided lot's proportional share of the property tax on the base parcel; and
(ii) as of November 30, there is an outstanding balance on the subdivided lot's proportional share of the property tax on the base parcel.
(b) A written notice described in Subsection (3)(a) shall state:
(i) the remaining balance owed on the subdivided lot's proportional share of the property tax on the base parcel;
(ii) a date, not less than 30 days after the day on which the notice is sent, by which the remaining balance is due; and
(iii) that any amount of the balance that is not paid or postmarked by the date described in Subsection (3)(b)(ii) is delinquent and subject to the penalties, interest, and administrative costs described in this chapter.
(4) If a person timely pays a subdivided lot's proportional share of the property tax on the base parcel, and the property tax on the base parcel subsequently becomes delinquent, the subdivided lot is not subject to:
(a) a lien for the payment of the delinquent property tax on the base parcel; or
(b) any penalties, interest, or administrative costs associated with the delinquent property tax on the base parcel.
(1)
(a) The county legislative body may, upon a petition of not less than 100 taxpayers or upon its own motion for good cause, by proclamation, extend the property tax due date from November 30 to noon on December 30.
(b) If the county legislative body extends the property tax due date under Subsection (1)(a), the county legislative body shall publish a notice of the proclamation covering this extension:
(i) in a newspaper of general circulation in the county in at least two issues before November 1 of the year in which the taxes are to be paid; and
(ii) in accordance with Section 45-1-101 for two weeks before November 1.
(2) In all cases where the county legislative body extends the property tax due date under Subsection (1), the date for the selling of property to the county for delinquent taxes or tax notice charges shall be extended 30 days from the dates provided by law.
(1) As used in this section, "business entity" means:
(a) an association;
(b) a corporation;
(c) a limited liability company;
(d) a partnership;
(e) a trust; or
(f) a business entity similar to Subsections (1)(a) through (e).
(2) The county treasurer shall provide notice of delinquency in the payment of property taxes and tax notice charges:
(a) except as provided in Subsection (5), on or before December 31 of each calendar year; and
(b) in a manner described in Subsection (3).
(3) The notice described in Subsection (2) shall be provided by:
(a)
(i) mailing a written notice that includes the information described in Subsection (4)(a), postage prepaid, to:
(A) each delinquent taxpayer; and
(B) if the delinquent property taxes or tax notice charges are assessed on a base parcel, the record owner of each subdivided lot; and
(ii) making available to the public a list of delinquencies in the payment of property taxes:
(A) by electronic means; and
(B) that includes the information required by Subsection (4)(b); or
(b) publishing a list of delinquencies in the payment of property taxes and tax notice charges:
(i) in one issue of a newspaper having general circulation in the county;
(ii) that lists each delinquency in alphabetical order by:
(A) the last name of the delinquent taxpayer; or
(B) if the delinquent taxpayer is a business entity, the name of the business entity; and
(iii) that includes the information described in Subsection (4)(b).
(4)
(a) A written notice of delinquency described in Subsection (3)(a)(i) shall include:
(i) a statement that delinquent taxes and tax notice charges are due;
(ii) the amount of delinquent taxes and tax notice charges due, not including any penalties imposed in accordance with this chapter;
(iii)
(A) the name of the delinquent taxpayer; or
(B) if the delinquent taxpayer is a business entity, the name of the business entity;
(iv)
(A) a description of the delinquent property; or
(B) the property identification number of the delinquent property;
(v) a statement that a penalty shall be imposed in accordance with this chapter; and
(vi) a statement that interest accrues as of January 1 following the date of the delinquency unless on or before January 31 the following are paid:
(A) the delinquent taxes and tax notice charges; and
(B) the penalty.
(b) The list of delinquencies described in Subsection (3)(a)(ii) or (3)(b) shall include:
(i) the amount of delinquent taxes and tax notice charges due, not including any penalties imposed in accordance with this chapter;
(ii)
(A) the name of the delinquent taxpayer; or
(B) if the delinquent taxpayer is a business entity, the name of the business entity;
(iii)
(A) a description of the delinquent property; or
(B) the property identification number of the delinquent property;
(iv) a statement that a penalty shall be imposed in accordance with this chapter; and
(v) a statement that interest accrues as of January 1 following the date of the delinquency unless on or before January 31 the following are paid:
(A) the delinquent taxes and tax notice charges; and
(B) the penalty.
(5) Notwithstanding Subsection (2)(a), if the county legislative body extends the property tax due date under Subsection 59-2-1332(1), the notice of delinquency described in Subsection (2) shall be provided on or before January 10.
(6)
(a) In addition to the notice of delinquency required by Subsection (2), a county treasurer may in accordance with this Subsection (6) mail a notice that property taxes are delinquent:
(i) to:
(A) a delinquent taxpayer;
(B) an owner of record of the delinquent property;
(C) any other interested party that requests notice; or
(D) a combination of Subsections (6)(a)(i)(A) through (C); and
(ii) at any time that the county treasurer considers appropriate.
(b) A notice mailed in accordance with this Subsection (6):
(i) shall include the information required by Subsection (4)(a); and
(ii) may include any information that the county treasurer finds is useful to the owner of record of the delinquent property in determining:
(A) the status of taxes and tax notice charges owed on the delinquent property;
(B) any penalty that is owed on the delinquent property;
(C) any interest charged under Section 59-2-1331 on the delinquent property; or
(D) any related matters concerning the delinquent property.
An omission, error, defect in form in the assessment roll, or clerical error, when it can be ascertained what was intended, may, with the consent of the county legislative body, be supplied or corrected by the assessor at any time before the sale for delinquent taxes or tax notice charges and after the original assessment or tax notice charge listing was made.
(1) If an omission, error, or defect is in a delinquent list or any publication, the list or publication may be republished as amended, or notice of the correction may be given in a supplementary publication.
(2) Any republication shall be made in the same manner as the original publication, for not less than one week.
(1)
(a) In all proceedings relating to assessment, levy, or collection of taxes or relating to the listing or collection of tax notice charges, the subjection of any property to a charge for taxes of any nature or for tax notice charges, or the advertisement and sale of any property for taxes or tax notice charges, the following initial letters, abbreviations, symbols, and figures may be used.
(b) The meaning of the initial letters, abbreviations, symbols, and figures is shown by the word or words placed opposite the initial letters, abbreviations, symbols, and figures:
a., ac. ................................................................................................................................ acre, acres
add. ... ................................................................................................................................... addition
ave. ........................................................................................................................................ avenue
beg. ................................................................................................................................... beginning
blk. ........................................................................................................................................... block
bet. ....................................................................................................................................... between
bdy., bdrs. ....................................................................................................... boundary, boundaries
ch., chs. ........................................................................................................................ chain, chains
com. .............................................................................................................................. commencing
cont. .................................................................................................................................. containing
deg. or degree symbol .............................................................................................. degree, degrees
dist. ...................................................................................................................................... distance
E. ............................................................................................................................................... east
E'ly ........................................................................................................................................ easterly
ft. ....................................................................................................................................... foot, feet
frac. ................................................................................................................................... fractional
in., ins. ........................................................................................................................... inch, inches
lk., lks. .............................................................................................................................. link, links
lt., lts. .................................................................................................................................... lot, lots
m., min., or ' ............................................................................................................ minute, minutes
m. or l. .......................................................................................................................... more or less
N. ............................................................................................................................................ north
NE. ..................................................................................................................................... northeast
NE'ly. ........................................................................................................................... northeasterly
N'ly. .................................................................................................................................... northerly
NW. ................................................................................................................................... northwest
NW'ly. ........................................................................................................................ northwesterly
pt. ............................................................................................................................................. point
1/4 sec. ...................................................................................................................... quarter section
r., rs. ............................................................................................................................. range, ranges
rd., rds. ................................................................................................................................ rod, rods
R. of W. ....................................................................................................................... right-of-way
s. or " ....................................................................................................................... second, seconds
S. ........................................................................................................................................... south
SE. ...................................................................................................................................... southeast
SE'ly. ........................................................................................................................... southeasterly
S'ly. .................................................................................................................................... southerly
st. ............................................................................................................................................ street
sub. ................................................................................................................................. subdivision
S.L.M. ................................................................................................................ Salt Lake Meridian
SW. ................................................................................................................................... southwest
t., tp., tps. ......................................................................................................... township, townships
th. ........................................................................................................................................... thence
U.S. sur. ............................................................................................................ United State Survey
U.S.M. ....................................................................................................... Uintah Special Meridian
W. ............................................................................................................................................. west
W'ly. ..................................................................................................................................... westerly
(2) Where the name of any railroad or railroad company is commonly referred to by the initial letters of the word constituting the name of the railroad, the initial letters may be used as an abbreviation for the full name of the railroad or railroad company in all cases where the name is used in the description of property.
(3)
(a) Commonly accepted initial letters, abbreviations, symbols, and figures having local significance may be used.
(b) Any initial letters, abbreviations, symbols, and figures shall first be approved by the commission.
(c) A written or printed explanation of initial letters, abbreviations, symbols, and figures shall appear in each assessment roll in which they are used and shall be published with each separate advertisement and sale for taxes or tax notice charges in which they are used.
If any property is taken in fee by the state, any of its subdivisions or agencies, or by any private person, or other body pursuant to either:
(1) an exercise of the power of eminent domain; or
(2) by a right of entry agreement executed by reason of the threat or imminence of eminent domain, the ad valorem property tax assessed and collected on the property under this chapter shall be determined on the basis of the relationship which the number of months the property was held by the property owner, prior to the granting by the court of an order of occupancy or the execution of a right of entry agreement, bears to the taxable year.
(1) The treasurer shall prepare the official record of delinquent taxes and tax notice charges in the same order as property appears on the assessment rolls.
(2) The record shall show:
(a) the name of the person to whom the property is assessed;
(b) the description of the delinquent parcel, and a reference to the parcel, serial, or account number under which the property was listed in the assessment roll;
(c) the amount of delinquent taxes and tax notice charges, penalties, and administrative costs; and
(d) the date of redemption and by whom the property is redeemed.
(3) The record shall also provide space for entering delinquent taxes assessed and tax notice charges listed in subsequent years against each parcel which remains unredeemed.
(4) Taxes levied only on a certain kind or class of property for a special purpose and tax notice charges shall be separately set out.
(1) On or before March 15 the treasurer shall complete the official record of delinquent taxes and tax notice charges and attach the treasurer's certificate to the record.
(2) The certificate shall be substantially in the following form:
State of Utah)
ss.
County of )
I, ____, county treasurer of the county of ____, state of Utah, do certify that to the best of my knowledge the attached record is a full, true, and correct record and constitutes the official record of all properties which became delinquent for the year ____, and shows in the same order as the property appears on the assessment roll, the name of the person to whom the property is assessed, the description of the delinquent parcel and a reference to the parcel, serial, or account number under which the property was listed in the assessment roll, the amount of taxes, tax notice charges, penalties, administrative costs, the date of redemption, and by whom the property was redeemed if any redemption has been made.
Signature ___________________
County Treasurer of __________ County
(3) The official record shall be maintained in the treasurer's office and shall include any subsequent delinquent taxes, tax notice charges, penalties, administrative costs, and redemptions pertaining to the properties listed thereon.
(1) Property against which a property tax delinquency exists shall be assessed in subsequent years for taxes in the same manner as if no delinquency existed.
(2) Property against which a delinquency exists for tax notice charges may still accrue tax notice charges as if no delinquency existed.
(3) The rights of any person purchasing the property from the county at tax sale provided under Section 59-2-1351.1 are subject to the right of the county under any subsequent assessment and of any tax notice charge entity.
(1)
(a) If any property is not redeemed by March 15 following the lapse of four years from the date when any item in Subsection (1)(b) became delinquent, the county treasurer shall immediately file a listing with the county auditor of all properties whose redemption period is expiring in the nearest forthcoming tax sale to pay all outstanding property taxes and tax notice charges.
(b) Except as provided in Subsection (1)(c), a delinquency of any of the following triggers the tax sale process described in Subsection (1)(a):
(i) property tax; or
(ii) a tax notice charge.
(c) A property tax or a tax notice charge that is deferred in accordance with Section 59-2a-801 is delinquent only if full payment of the property tax and any tax notice charges is not made before the end of the five-year deferral period.
(2) The listing is known as the "tax sale listing."
(1) Between March 15 and the date of the tax sale, the county treasurer shall transmit daily to the county auditor a statement of the amount of money received by the treasurer during the preceding business day on account of redemptions made on property listed for tax sale.
(2) The statement described in Subsection (1) shall set out in separate columns:
(a) the number of the redemption certificate or the receipt issued on account for redemption;
(b) the amount received for taxes, tax notice charges, penalties, and administrative costs accrued to the date of the making of the tax sale record;
(c) the amount received for administrative costs subsequently accruing; and
(d) the amount received as interest accrued.
(3) The county auditor shall audit the treasurer's tax sale records at least once a year and the treasurer shall account to the auditor for all money due the county by reason of any redemptions or payments on account for redemption made, including interest as required by law.
(4) Before the tax sale listing under Section 59-2-1343 is compiled, the auditor shall credit the treasurer upon the books of the county with the sums charged for delinquent taxes, tax notice charges, penalties, and administrative costs charged against all real estate upon which the period of redemption is expiring in the nearest forthcoming tax sale.
(1) Property may be redeemed on behalf of the record owner by any person at any time before the tax sale which shall be held in May or June as provided in Section 59-2-1351 following the lapse of four years from the date the property tax or tax notice charges became delinquent.
(2) A person may redeem property by paying to the county treasurer all delinquent taxes, tax notice charges, interest, penalties, and administrative costs that have accrued on the property.
(3)
(a) Subject to Subsection (3)(d), a person may redeem a subdivided lot by paying the county treasurer the subdivided lot's proportional share of the delinquent taxes, tax notice charges, interest, penalties, and administrative costs accrued on the base parcel, calculated in accordance with Subsection (3)(b).
(b) The county treasurer shall calculate the amount described in Subsection (3)(a) by comparing:
(i) the amount of the value of the base parcel as described in Subsection (3)(b)(ii) that is attributable to the property that comprises the subdivided lot as the property existed on January 1 of the year in which the delinquent property taxes on the base parcel were assessed or tax notice charges on the base parcel were listed; and
(ii) the value of the base parcel as it existed on January 1 of the year in which the delinquent property taxes on the base parcel were assessed or tax notice charges on the base parcel were listed.
(c) If the county treasurer does not have sufficient information to calculate the amount described in Subsection (3)(b)(i), upon request from the county treasurer, the county assessor shall provide the county treasurer any information necessary to calculate the amount described in Subsection (3)(b)(i).
(d) A person may redeem a subdivided lot under this Subsection (3) only if the record owner of the subdivided lot is a bona fide purchaser.
(4)
(a) At any time before the expiration of the period of redemption, the county treasurer shall accept and credit on account for the redemption of property, payments in amounts of not less than $10, except for the final payment, which may be in any amount.
(b) For the purpose of computing the amount required for redemption and for the purpose of distributing the payments received on account, all payments, except payments described in Subsection (4)(c), shall be applied in the following order:
(i) against the interest and administrative costs accrued on the delinquent tax for the last year included in the delinquent account at the time of payment;
(ii) against the penalty charged on the delinquent tax for the last year included in the delinquent account at the time of payment;
(iii) against the delinquent tax for the last year included in the delinquent account at the time of payment;
(iv) against the interest and administrative costs accrued on the delinquent tax for the next to last year included in the delinquent account at the time of payment; and
(v) so on until the full amount of the delinquent taxes, tax notice charges, penalties, administrative costs, and interest on the unpaid balances are paid within the period of redemption.
(c) For a payment received through a levy on an income tax overpayment or refund in accordance with Title 63A, Chapter 3, Part 3, Accounts Receivable Collection, the payment shall be applied in the following order:
(i) against the penalty charged on the delinquent tax for the earliest year included in the delinquent account at the time of payment;
(ii) against the interest and administrative costs accrued on the delinquent tax for the earliest year included in the delinquent account at the time of payment;
(iii) against the delinquent tax for the earliest year included in the delinquent account at the time of payment;
(iv) against the penalty charged on the delinquent tax for the next earliest year included in the delinquent account at the time of payment; and
(v) so on until:
(A) the full amount of the delinquent taxes, tax notice charges, penalties, administrative costs, and interest on the unpaid balances are paid; or
(B) the amount of the income tax overpayment or refund is exhausted.
(1)
(a) If an interested person applies to a county legislative body for an adjustment or deferral of taxes levied against property located in the county, the county legislative body may accept a sum less than the full amount due, or defer the full amount due, where, in the judgment of the county legislative body, the best human interests and the interests of the state and the county are served.
(b) Nothing in this section prohibits a county legislative body from granting a retroactive adjustment or deferral if the criteria established in this section are met.
(2)
(a) In an application for an adjustment or deferral described in Subsection (1), the applicant shall include a statement setting forth the following:
(i) a description of the property;
(ii) the value of the property for the current year;
(iii) the amount of delinquent taxes, interest, and penalties;
(iv)
(A) for an adjustment, the amount proposed to be paid; or
(B) for a deferral, the amount proposed to be deferred; and
(v) any other information required by the county legislative body.
(b) The commission shall prepare blank forms for an application for an adjustment or deferral under this section.
(3)
(a) A county legislative body may not grant a deferral without the written consent of the holder of any mortgage or trust deed outstanding on the property.
(b) Any amount deferred shall be recorded as a lien on the property and shall bear interest at a rate equal to the lesser of:
(i) 6%; or
(ii) the federal funds rate target:
(A) established by the Federal Open Markets Committee; and
(B) that exists on the January 1 immediately preceding the day on which the taxes are deferred.
(c) The amount deferred together with accrued interest is due and payable when the property is sold or otherwise conveyed.
(4) Within 10 days after the day on which a county legislative body grants an adjustment or deferral, the county legislative body shall cause the adjustment or deferral to be posted in the county where the property involved is located. The publication shall contain:
(a) the name of the applicant;
(b) the parcel, serial, or account number of the property;
(c) the value of the property for the current year;
(d) the sum of the delinquent taxes, interest, and penalty due; and
(e) the adjusted amount paid or deferred.
(5) No later than the last day of each calendar month, each county legislative body shall send to the commission a record of any action taken by the county legislative body under this section during the preceding calendar month.
If any property is redeemed, the county treasurer shall make the proper entry in the record of tax sales filed in the treasurer's office and issue a certificate of redemption, which is prima facie evidence of the redemption, and may be recorded in the office of the county recorder without acknowledgment.
If two or more persons own an undivided interest in property on which a tax or tax notice charge delinquency exists, any owner may redeem the owner's interest in the property upon payment of that portion of the taxes, tax notice charges, interest, penalties, and administrative costs which the owner's interest bears to the whole, as determined by the county legislative body.
(1) If the county auditor discovers before the tax sale that because of an irregular or erroneous assessment any property should not be sold, the auditor may not sell the property, and the county legislative body shall cause the tax records to reflect the correction in the next succeeding year, on the basis of the value and rates of the year for which it was erroneously assessed, to be collected as other taxes are collected.
(2) If the county auditor, subject to approval by the county legislative body, issues a written finding that it may be in the best interest of the public to withdraw a property from the tax sale, the county auditor may withdraw the property from the sale.
(1)
(a) Upon receiving the tax sale listing from the county treasurer, the county auditor shall select a date for the tax sale for all real property:
(i) on which a tax or tax notice charge delinquency exists;
(ii) that was not previously redeemed; and
(iii) upon which the period of redemption is expiring in the nearest tax sale.
(b) The county auditor shall conduct the tax sale in May or June of the current year.
(c) The tax sale may occur:
(i) at the front door of the county courthouse in the county where the real property is located; or
(ii) through an electronic process if:
(A) the tax sale occurs in the same format as a tax sale would occur at the front door of the county courthouse except that participation is through an electronic means;
(B) members of the public are able to observe and participate, including making bids and payment arrangements, in the tax sale; and
(C) the county auditor includes information about how the public may access the tax sale through the electronic process with the description of the place of the tax sale in the notice provided in accordance with Subsections (2) and (3).
(2) The county auditor shall provide notice of the tax sale by sending notice by certified and first class mail, or by first class mail and another shipping service that includes tracking and delivery confirmation, to the last known address of each of the following persons:
(a) the last known recorded owner;
(b) the occupant of any improved property; and
(c) other interests of record as of the preceding March 15.
(3) In addition to the mailing requirements described in Subsection (2):
(a) a county auditor in a county of the first class shall provide notice by:
(i) publishing notice on the county auditor's website, or if the county auditor does not have a separate website from the county, on the county's website, at least four weeks before the date of sale; and
(ii) advertising the date of the tax sale and the web address for the notice described in Subsection (3)(a)(i) in a newspaper published and having general circulation in the county at least four weeks before the date of the sale; or
(b) a county auditor in a county of the second, third, fourth, fifth, or sixth class shall provide notice by:
(i)
(A) publishing notice four times in a newspaper published and having general circulation in the county, once in each of the four successive weeks immediately preceding the date of sale; or
(B) if no newspaper is published in the county, posting in five public places in the county, as determined by the county auditor, at least 25 but no more than 30 days before the date of sale; and
(ii) publishing notice in accordance with Section 45-1-101 for four weeks immediately preceding the date of sale.
(4) The notice shall be in substantially the following form:
NOTICE OF TAX SALE
Notice is hereby given that on __________(month\day\year), at __ o'clock __. m., at [the physical or electronic address of the tax sale], I will offer for sale at public auction and sell to the highest bidder for cash, under the provisions of Section 59-2-1351.1, the following described real property located in the county and now delinquent and subject to tax sale. A bid for less than the total amount of taxes, tax notice charges, interest, penalty, and administrative costs which are a charge upon the real estate will not be accepted.
(Here describe the real estate)
IN WITNESS WHEREOF I have hereunto set my hand and official seal on __________(month\day\year).
County Auditor
County
(5)
(a) The notice sent in accordance with Subsection (2) shall include:
(i) the name and last known address of the last known recorded owner of the property to be sold;
(ii) the parcel, serial, or account number of the delinquent property; and
(iii) the legal description of the delinquent property.
(b) The notice published in accordance with Subsection (3)(a) or (b) shall include:
(i) the name and last known address of the last known recorded owner of each parcel of property to be sold; and
(ii) the street address or the parcel, serial, or account number of the delinquent parcels.
(1)
(a) At the time specified in the notice the auditor shall:
(i) attend at the place appointed, offer for sale, and sell all real property for which an acceptable bid is made; and
(ii) refuse to offer a parcel of real property for sale if the description of the real property is so defective as to convey no title.
(b) The auditor may post at the place of sale a copy of the published list of real property to be offered and cry the sale by reference to the list rather than crying each parcel separately.
(2)
(a) The tax commission shall establish, by rule, minimum procedural standards applicable to tax sales.
(b) For matters not addressed by commission rules, the county legislative body, upon recommendation by the county auditor, shall establish procedures, by ordinance, for the sale of the delinquent property that best protect the financial interest of the delinquent property owner and meet the needs of local governments to collect delinquent property taxes and tax notice charges due.
(3) The county governing body may authorize the auditor to combine for sale two or more contiguous parcels owned by the same party when:
(a) the parcels are a single economic or functional unit;
(b) the combined sale will best protect the financial interests of the delinquent property owner; and
(c) separate sales will reduce the economic value of the unit.
(4) The governing body may accept any of the following bids:
(a) the highest bid amount for the entire parcel of property, however, a bid may not be accepted for an amount which is insufficient to pay the taxes, tax notice charges, penalties, interest, and administrative costs; or
(b) a bid in an amount sufficient to pay the taxes, tax notice charges, penalties, interest, and administrative costs, for less than the entire parcel.
(i) The bid which shall be accepted shall be the bid of the bidder who will pay in cash the full amount of the taxes, tax notice charges, penalties, interest, and administrative costs for the smallest portion of the entire parcel.
(ii) The county auditor at the tax sale or the county legislative body following the tax sale shall reject a bid to purchase a strip of property around the entire perimeter of the parcel, or a bid to purchase a strip of the parcel which would prevent access to the remainder of the parcel by the redemptive owner or otherwise unreasonably diminish the value of that remainder.
(iii) If the bid accepted is for less than the entire parcel, the auditor shall note the fact, with a description of the property covered by the bid, upon the tax sale record and the balance of the parcel not affected by the bid shall be considered to have been redeemed by the owner.
(5) The county legislative body may decide that none of the bids are acceptable.
(6)
(a) Once the county auditor has closed the sale of a particular parcel of property as a result of accepting a bid on the parcel, the successful bidder or purchaser of the property may not unilaterally rescind the bid.
(b) The county legislative body, after acceptance of a bid, may enforce the terms of the bid by obtaining a legal judgment against the purchaser in the amount of the bid, plus interest and attorney's fees.
(7) Any sale funds which are in excess of the amount required to satisfy the delinquent taxes, tax notice charges, penalties, interest, and administrative costs of the delinquent property shall be treated as unclaimed property under Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act.
(8) All money received upon the sale of property made under this section shall be paid into the county treasury, and the treasurer shall settle with the taxing entities and tax notice charge entities as provided in Section 59-2-1366.
(9)
(a) The county auditor shall, after acceptance by the county governing body, and in the name of the county, execute deeds conveying in fee simple all property sold at the public sale to the purchaser and attest this with the auditor's seal.
(b) Deeds issued by the county auditor under this section shall recite the following:
(i) the total amount of all the delinquent taxes, tax notice charges, penalties, interest, and administrative costs which were paid in for the execution and delivery of the deed;
(ii) the year for which the property was assessed or a tax notice charge was listed, the year the property became delinquent, and the year the property was subject to tax sale;
(iii) a full description of the property; and
(iv) the name of the grantee.
(c) When the deed is executed and delivered by the auditor, it shall be prima facie evidence of the regularity of all proceedings subsequent to the date the taxes or tax notice charges initially became delinquent and of the conveyance of the property to the grantee in fee simple.
(d) The deed issued by the county auditor under this section shall be recorded by the county recorder.
(e) The fee for the recording shall be included in the administrative costs of the sale.
(f) The deed shall be substantially in the following form:
TAX DEED
____ County, a body corporate and politic of the state of Utah, grantor, hereby conveys to ____, grantee, of ____ the following described real estate in ____ County, Utah:
(Here describe the property conveyed)
This conveyance is made in consideration of payment by the grantee of $, representing the total amount owing for delinquent taxes, delinquent tax notice charges, penalties, interest, and administrative costs constituting a charge against the real property for nonpayment of general taxes assessed against it for the years ____ through ____ in the sum of $.
Dated __________(month\day\year).
(Auditor's Seal)
County _______________
By _______________
County Auditor
(1) Any property offered for sale for which there is no purchaser shall be struck off to the county by the county auditor, who shall then:
(a) publicly declare substantially as follows: "All property here offered for sale which has not been struck off to a private purchaser is hereby struck off and sold to the county of ____ (naming the county), and I hereby declare the fee simple title of the property to be vested in the county";
(b) make an endorsement opposite each of the entries in the delinquency tax sale record described in Section 59-2-1338 substantially as follows: "The fee simple title to the property described in this entry in the year of ____, sold and conveyed to the county of ____ in payment of general taxes charged against the property"; and
(c) sign the auditor's name to the record.
(2) The fee simple title to the property shall then vest in the county.
(3) After following the procedures in Subsection (1), the auditor shall deposit the tax sale record with the county recorder. The record shall become a part of the official records of the recorder and is considered to have been recorded by the recorder.
(4) The recorder shall make the necessary entries in the index, abstract record, and plat book showing the conveyance of all property sold and conveyed to the county pursuant to this section.
(1)
(a) All property acquired by the county under this part may be disposed of for a price and upon terms determined by the county legislative body.
(b) If property is sold under a contract of sale and title remains in the county, the equity of the purchaser shall be subject to taxation as other taxable property.
(c) The county clerk may execute deeds for all property sold under this subsection in the name of the county and attest the same by seal, vesting in the purchaser all of the title of all taxing entities in the real estate so sold.
(d)
(i) Money received from the sale of property under this section shall first be applied to the cost of administering and supervising the property.
(ii) Any remaining money shall be apportioned to:
(A) state and other taxing entities with an interest in the taxes last levied upon the property in proportion to their respective interests in the taxes; and
(B) tax notice charge entities in proportion to the entities' respective tax notice charges.
(iii) The treasurer shall settle with the taxing entities and tax notice charge entities on funds remaining as provided in Section 59-2-1366.
(iv) Money in excess of claims under this subsection shall be paid to the state treasurer and treated as unclaimed property under Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act.
(2)
(a) The county legislative body may rent or lease any property held in the name of the county any time after the tax sale for a price and upon terms determined by the governing body.
(b) Lands leased may be sold at the discretion of the county executive, with the approval of the county legislative body, during the term of the lease, but any sale shall be made subject to the lease.
(c) The county executive, with the approval of the county legislative body, may enter into leasehold terms for asphalt, oil, or gas that the county considers to be in the best interest of the county as long as:
(i) the mineral, asphalt, oil, or gas is produced from, or attributable to, the property leased; and
(ii) each lease for oil and gas reserves a royalty of not less than 12-1/2%.
(d) If considered to be in the best interests of the county, the county executive may:
(i) enter into agreements for the pooling or unitizing of acreage with others for unit operations for the production of oil or gas, or both, and for the apportionment of oil or gas royalties, or both, on an acreage or other equitable basis; and
(ii) with the consent of its lessee, change any and all terms of leases issued by it to facilitate the efficient and economic production of oil and gas from the property under its jurisdiction.
(e) All leases for mineral, asphalt, or oil and gas already entered into by county governing bodies are ratified.
(3)
(a) Money received as rents from the rental or leasing of property held in the name of the county shall first be applied to the cost of administering and supervising the property.
(b) Any remaining money shall be apportioned to:
(i) state and other taxing entities with an interest in the taxes last levied upon the property in proportion to their respective interests in the taxes; and
(ii) tax notice charge entities in proportion to the entities' respective tax notice charges.
(c) The treasurer shall settle with the taxing entities and tax notice charge entities on funds remaining as provided in Section 59-2-1366.
(d) Money in excess of these claims shall be paid to the state treasurer and treated as unclaimed property under Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act.
(1) For purposes of this section:
(a) "Tax sale interest purchaser" means an owner of an undivided interest in a parcel of tax sale property that bid for and purchased the undivided interest:
(i) at a tax sale in accordance with Section 59-2-1351.1;
(ii) on or after July 1, 2007; and
(iii) if the undivided interest in the tax sale property equals 49% or less.
(b) "Tax sale property" means a parcel of real property that was sold in part as an undivided interest at a tax sale in accordance with Section 59-2-1351.1.
(2) If a parcel of tax sale property is sold, a tax sale interest purchaser may only receive from the sale of the tax sale property, an amount equal to the greater of:
(a) the amount the tax sale interest purchaser paid for the undivided interest in the tax sale property at the tax sale plus 12% interest; or
(b) the tax sale interest purchaser's pro rata share of the sale price of the tax sale property based on the percentage of the undivided interest the tax sale interest purchaser holds in the tax sale property.
(3) A tax sale interest purchaser may not object to the sale of the tax sale property if the tax sale interest purchaser receives an amount in accordance with Subsection (2).
(1) Every person who has purchased or purchases any invalid tax title to any real property in this state shall, from the effective date of this part, have a lien against the property for the recovery of the amount of the purchase price paid to the county to the extent that the county would have a lien prior to the sale by the county, but in no event may the lien be greater than the amount of taxes, tax notice charges, interest, and penalties, or the amount actually paid, whichever is smaller.
(2) Taxes and tax notice charges paid by the purchaser for subsequent years after the purchase from the county shall be included in the amount secured by the lien which has not already been recovered.
(3) The lien shall have the same priority against the property as the lien for the delinquent taxes and tax notice charges which were liquidated by the purchase except that it may not have preference over any right, title, interest in, or lien against, the property acquired since the purchase of the tax title for value and without notice, and the lien shall bear interest at the legal rate for a period of not to exceed four years.
(4) The lien shall be foreclosed in any action in which the invalidity of the tax title is determined.
(5) If the lien is not foreclosed at the time of the determination of the invalidity of the tax title, any later action to foreclose the lien shall be barred.
(1) In all cases where any county claims a lien on real estate for delinquent general taxes or tax notice charges which have not been paid for a period of four years, the county may foreclose the lien by an action in the district court of the county in which the real estate is located.
(2) In this action all persons owning, having, or claiming an interest in or lien upon the real estate or any part of the real estate may be joined as defendants, and the complaint shall contain a description of the property, together with the amount claimed to be due on the property, including interest, penalties, and administrative costs.
(3) If the name of the owner of any real estate cannot be ascertained from the records of the county, the complaint shall state that the owner is unknown to the plaintiff.
(4) It is sufficient to allege in the complaint that a general tax has been duly levied upon or a tax notice charge has been listed for the described real estate, without stating any of the proceedings or steps leading up to the levy of the tax or the listing of the tax notice charge.
Before the commencement of any action, 30 days' written notice of intention to do so shall be given to the owner, if known, by enclosing the notice in an envelope plainly addressed to the owner at the owner's post office address, as shown on the last assessment roll of the county in which the real estate is located, postage prepaid. If the post office address of any owner does not appear on the assessment roll, notice shall be addressed to the owner at the general delivery at the post office in the city, town, or precinct where the real estate is located, postage prepaid. Service of the notice is complete when deposited in the United States mail.
(1) The action described in Section 59-2-1353 shall be tried and determined as actions to foreclose mortgage liens, and the court shall determine and adjudge the amount of taxes, tax notice charges, interest, penalties, and costs on each parcel of property which has been separately assessed, and shall enter its decree determining the rights, and priorities of liens, of all parties to the action.
(2) The court shall also in its decree direct the sheriff to advertise and sell, as in the case of sales on execution, each parcel of property, or so much as may be necessary for the payment of the total amount of the general taxes and tax notice charges due, with interest, penalties, and costs, unless the amount is paid within a time named in the decree, but not to exceed 30 days from the entry of the decree.
(3) The decree shall provide that any of the parties to the action may become purchasers at any sale, that if less than an entire parcel of property is sold, it shall be sold at foreclosure sale in such a manner as not to convey to the purchaser a strip of property around the entire perimeter of the parcel, or a strip of the parcel which, if conveyed, would prevent access to the remainder of the parcel by the redemptive owner or otherwise unreasonably diminish the value of that remainder, as determined by the county executive.
(4) The decree shall also provide that if all delinquent taxes and tax notice charges, together with interest, respectively levied on or listed for the parcel of property, and all penalties and costs, are paid within the time fixed in the decree for payment, then no sale may be made.
(5) After the time for redemption has expired, if no redemption has been made, the sheriff shall execute and deliver to the purchaser a deed conveying to the purchaser all the right, title, and interest of each and all the parties, but subject to the lien of any general or special taxes or tax notice charges which may have been respectively levied on or listed for the property conveyed, other than those for the payment of which the sale has been made.
If any foreclosure sale is made, the sheriff shall give to the purchaser a certificate of sale as in the case of sales upon execution, and shall file a duplicate of the certificate with the county recorder and county auditor. Where any property has been purchased by the county at any foreclosure sale, the certificate of sale may be sold and assigned by it to any person upon payment of a sum not less than the amount for which it was sold to the county, together with interest. The assignee acquires all the rights of the county in the property.
Any person interested in any real estate sold at foreclosure sale under any decree has the same right to redeem the real estate from the sale, within the same time and upon the same terms as if the sale had been made upon execution.
The foreclosure may not deprive any county of any other method or means provided for the collection or enforcement of any taxes or tax notice charges, but is construed as providing an additional or cumulative remedy for the collection of general taxes levied and assessed and tax notice charges listed against the real estate in the county.
The tax commission may, under the conditions existing in this section, declare the taxes and tax notice charges to be immediately due and payable if it finds:
(1) that the owner or lessee of any real property, including improvements, subject to taxation within the state is removing, destroying, or is about to remove or destroy the property to such an extent as to render doubtful the payment of delinquent taxes, tax notice charges, penalty, and interest, if any, and the payment of current taxes and tax notice charges; or
(2) that the continued operation and extraction of ores and minerals from mine or mining claims, or the method employed by the owner or lessee, contractor, or other person working upon or operating any mine or mining claim will render doubtful the payment of delinquent taxes, tax notice charges, penalty, and interest, if any, for past years or the current year.
Proceedings to make findings under Section 59-2-1359 may be commenced before the commission upon its own initiative, the request of any taxing entity, the request of any tax notice charge entities, or the request of any taxpayer.
(1)
(a) Notice that the commission has made a finding and declaration under Section 59-2-1359 shall be given to the owner of the property in the same manner as is provided by law for the giving of the notice of assessment by the commission.
(b) The notice required by this section shall include a notice of the location and time of the hearing in which the findings of the commission may be protested.
(c)
(i) The hearing must be scheduled at least 10 days after the mailing of the notice.
(ii) The owner, lessee, contractor, or operator of the property shall be afforded the opportunity to protest the commission's findings at the hearing.
(2) After the scheduled hearing, the taxes shall become immediately due and payable if any of the following occur:
(a) the owner, contractor, lessee, or operator of the property fails to appear at the hearing; or
(b) the commission sustains the findings.
(3) If the taxes and tax notice charges are not paid within 10 days from the date due, the commission may commence a proceeding in court in its name, but for the benefit of the state, the taxing entities interested in the taxes, and the tax notice charge entities for the property, in the district court of the county in which the property is located to determine the liens of the taxes and tax notice charges and to foreclose the liens.
(4) In any proceeding the court may order any of the following:
(a) enjoin and restrain the destruction or removal of the property or any part of the property;
(b) appoint a receiver to operate the property; and
(c) order and direct that the proceeds from the property, or so much of it as may be necessary to pay the amount of the taxes and tax notice charges, be withheld and impounded or paid on account of the taxes and tax notice charges from time to time as the court may direct.
(5) In determining the amount of taxes due for any year for which the levy has not been fixed and for the purposes of the proceeding in court, the commission shall use the levy prevailing within the taxing entity where the property is located for the last preceding year.
(6) In any court proceeding brought to enforce the payment of taxes and tax notice charges made due and payable under this section, the findings of the commission shall be for all purposes presumptive evidence of the necessity for the action for the protection of the public revenues and of the amount of taxes and tax notice charges to be paid.
(7)
(a) Payment of taxes and tax notice charges due under this section will not be enforced through the proceedings authorized by this section prior to the expiration of the time otherwise allowed for payment of taxes if the owner, lessee, contractor, or other person operating the property furnishes security approved by the commission that the person will timely submit all required returns and payment of taxes and tax notice charges.
(b) The commission may, from time to time, require additional security for the payment of taxes and tax notice charges.
(8) The commission may promulgate rules to implement this section.
(1) A copy of the record of any tax sale duly certified by the official custodian of the record at the time of the certificate under the seal of office as a true copy of the entry in the official record showing the sale is prima facie evidence of the facts shown in the record.
(2) The regularity of all proceedings connected with the assessment, valuation, notice, equalization, levies, tax notices, advertisement, and sale of property described in the record is presumed, and the burden of showing any irregularity in any of the proceedings resulting in the sale of property for the nonpayment of delinquent taxes and tax notice charges shall be on the person who asserts it.
If property is sold for correctly imposed taxes and tax notice charges as the property of a particular person, no misnomer of the owner or supposed owner, or other mistake relating to ownership, affects the sale or renders it void or voidable.
The county auditor shall make and keep on file in the county auditor's office a record of all tax deeds issued. The acknowledgment of all deeds shall be taken by the county recorder, or other county officer authorized to take acknowledgments, free of charge. No charge may be made by the county auditor for the making of any deed where the county is the grantee.
(1) Except as provided in Subsections (3) and (4), the county treasurer shall pay to the treasurer of each taxing entity and each tax notice charge entity in the county on or before the tenth day of each month:
(a) all money that the county treasurer received during the preceding month that is due to the entity; and
(b) each entity's proportionate share of money the county treasurer received during the preceding month for:
(i) delinquent taxes and tax notice charges;
(ii) interest;
(iii) penalties; and
(iv) costs on all tax sales and redemptions.
(2) Except as provided in Subsections (3) and (4), the county treasurer shall:
(a) adopt an appropriate procedure to account for the transfer and receipt of money between taxing entities and tax notice charge entities;
(b) make a final annual settlement on March 31 with each taxing entity and tax notice charge entity, including providing the entity a written statement for the most recent calendar year of the amount of:
(i) total taxes and tax notice charges charged;
(ii) current taxes and tax notice charges collected;
(iii) treasurer's relief;
(iv) redemptions;
(v) penalties;
(vi) interest;
(vii) in lieu fee collections on motor vehicles; and
(viii) miscellaneous collections;
(c) invest the money it receives under Subsection (1); and
(d) pay annually to each taxing entity and tax notice charge entity in the county the interest earned on the invested money under Subsection (2)(c):
(i) on or before March 31; and
(ii) apportioned according to the proportion that the:
(A) taxing entity's tax receipts bear to the total tax receipts received by the county treasurer; and
(B) tax notice charge entity's tax notice charge receipts bear to the total tax notice charge receipts that the county treasurer receives.
(3) Notwithstanding Subsections (1) and (2), a county may:
(a) negotiate with a taxing entity or tax notice charge entity a procedure other than the procedure provided in Subsection (2)(a) to account for the transfer and receipt of money between the county and the taxing entity or tax notice charge entity; and
(b) establish a date other than the tenth day of each month for the county treasurer to make payments required under Subsection (1).
(4) This section does not invalidate an existing contract between a county and a taxing entity or tax notice charge entity relating to the apportionment and payment of money or interest.
(1) If property sold to the county under this title is redeemed, or the certificate of sale is assigned, the money received on account of the redemption or assignment shall be distributed as follows:
(a) the original and subsequent taxes, and 40% of interest, penalty, and costs of sale received shall be apportioned to the taxing entities interested, in proportion to their respective taxes;
(b) the original and subsequent tax notice charges, and 40% of interest, penalty, and costs of sale received shall be apportioned to the tax notice charge entities interested, in proportion to their respective tax notice charges; and
(c) the balance shall be paid to the county.
(2) If a sum less than the taxes, tax notice charges, interest, penalty, and costs is accepted in settlement, the proceeds of the settlement shall be applied, first to the payment of the original and subsequent taxes and tax notice charges, and the remainder, if any, to the payment of interest, penalty, and costs.
(1) The auditor shall audit the books and records of the treasurer and make a final settlement with the treasurer.
(2) In making the settlement the auditor shall credit the treasurer with the amount of taxes and tax notice charges for the previous year which are found to be still unpaid and shall then charge the treasurer upon the books of the county in an account which shall be called the Delinquent Tax Control Account with the full amount of delinquent taxes, tax notice charges, penalty, and costs found due the county for the previous year.
As used in this part:
(1) "Manufactured home" is as defined in Section 41-1a-102.
(2) "Mobile home" is as defined in Section 41-1a-102.
(3) "Transportable factory-built housing unit" means a:
(a) mobile home; or
(b) manufactured home.
(4) "Transportable factory-built housing unit park" means any tract of land on which two or more unit spaces are:
(a) leased;
(b) rented; or
(c) offered for:
(i) lease; or
(ii) rent.
(5) "Unit space" means a specific area of land within a transportable factory-built housing unit park that is designed to accommodate one transportable factory-built housing unit for residential purposes.
Regardless of whether a transportable factory-built housing unit is considered to be real property or personal property under Section 70D-2-401, for purposes of this chapter:
(1) a transportable factory-built housing unit that is located in a transportable factory-built housing unit park:
(a) except as provided in Subsection (1)(b), is considered to be personal property; and
(b) notwithstanding Subsection (1)(a), is considered to be real property if the owner of the transportable factory-built housing unit owns the real property upon which the transportable factory-built housing unit is located; and
(2) a transportable factory-built housing unit that is not located in a transportable factory-built housing unit park:
(a) except as provided in Subsection (2)(b), is considered to be personal property; and
(b) notwithstanding Subsection (2)(a), is considered to be real property if the transportable factory-built housing unit is an improvement.
As used in this part:
(1) "Database" means the same as that term is defined in Section 59-1-1901.
(2) "Fund" means the Property Tax Valuation Fund created in Section 59-2-1602.
(3) "Multicounty assessing and collecting levy" means a property tax the counties levy in accordance with Subsection 59-2-1602(3).
(4) "Program manager" means an association that represents at least two-thirds of the counties in the state.
(5)
(a) "Property valuation service" means a service or technology that promotes uniform assessment levels for the valuation of personal property and real property in accordance with Part 3, County Assessment.
(b) "Property valuation service" includes statewide aerial imagery, change detection, sketch validation, exception analysis, commercial valuation modeling, residential valuation modeling, automated valuation modeling, and equity analysis.
(6) "Statewide property tax system" means a computer assisted system for mass appraisal, equalization, collection, distribution, and administration related to property tax.
(7) "STATS" means the Statewide Tax Administration and Technology Solutions program, created in Section 59-1-1902.
(1)
(a) There is created a custodial fund in the Division of Finance known as the "Property Tax Valuation Fund."
(b) The fund consists of:
(i) deposits made and penalties received under Subsection (4);
(ii) interest on money deposited into the fund;
(iii) appropriations from the Legislature;
(iv) the statewide property tax system and statewide web portals, including intellectual property rights; and
(v) the database.
(c)
(i) Subject to Subsection (1)(c)(ii), the Division of Finance shall allocate money in the fund for the calendar year to the program manager:
(A) after the Division of Finance determines that the budget submitted in accordance with Section 59-2-1605 contains proposed expenses for a use described in Subsection 59-2-1606(4); and
(B) for revenue the Division of Finance receives after the Division of Finance makes the determination in accordance with Subsection (1)(c)(i)(A), within 30 days after receipt of the money.
(ii) The Division of Finance may retain an amount equal to the cost of making the determination described in Subsection (1)(c)(i)(A) before making an allocation.
(d) Subject to the requirements of this section, the program manager shall have:
(i) sole authority to:
(A) determine expenditure of revenue the Division of Finance allocates to the program manager, including provision of property valuation services within counties; and
(B) oversee the maintenance and enhancement of a statewide property tax system, including statewide web portals, that meets the requirements of this section; and
(ii) control over the property described in Subsections (1)(b)(iv), (1)(b)(v), and (2) for the purpose and uses described in this section.
(e) The program manager may spend money the Division of Finance allocates to the program manager only for STATS.
(2) The following assets are transferred to the program manager to use for STATS:
(a) tangible personal property purchased, in whole or in part, with revenue from the multicounty assessing and collecting levy, including property acquired before May 6, 2026; and
(b) unexpended revenue that is:
(i) obtained from the multicounty assessing and collecting levy or for the performance of the duties described in this section, including revenue acquired before May 6, 2026; and
(ii) within the control of the program manager.
(3)
(a) Each county shall annually impose a multicounty assessing and collecting levy as provided in this Subsection (3).
(b) The tax rate of the multicounty assessing and collecting levy is the certified revenue levy rounded up to the sixth decimal place.
(c) The state treasurer shall allocate all revenue collected from the multicounty assessing and collecting levy to the Multicounty Appraisal Trust.
(4)
(a) The county shall state separately the multicounty assessing and collecting levy on the tax notice as a multicounty assessing and collecting levy.
(b) The multicounty assessing and collecting levy is:
(i) exempt from Sections 17C-1-403 through 17C-1-406;
(ii) in addition to and exempt from the maximum levies allowable under Section 59-2-908; and
(iii) exempt from the notice and public hearing requirements of Section 59-2-919.
(c)
(i) Each county shall transmit quarterly to the state treasurer the revenue the county collects from the multicounty assessing and collecting levy.
(ii) The county shall transmit the revenue described in Subsection (4)(c)(i) no later than the tenth day of the month following the end of the quarter in which the county collects the revenue.
(iii) If a county transmits revenue described in Subsection (4)(c)(i) after the tenth day of the month following the end of the quarter in which the county collects the revenue, the county shall pay an interest penalty at the rate of 10% each year until the county transmits the revenue.
(iv) The state treasurer shall deposit the revenue and penalties described in this Subsection (4) into the fund.
(5)
(a) A county may levy a county additional property tax in accordance with this Subsection (5).
(b) The county additional property tax:
(i) shall be separately stated on the tax notice as a county assessing and collecting levy;
(ii) may not be incorporated into the rate of any other levy;
(iii) is exempt from Sections 17C-1-403 through 17C-1-406; and
(iv) is in addition to and exempt from the maximum levies allowable under Section 59-2-908.
(c) A county shall use revenue collected from the county additional property tax to:
(i) promote the accurate valuation and uniform assessment levels of property as required by Section 59-2-103;
(ii) promote the efficient administration of the property tax system, including the costs of assessment, collection, and distribution of property taxes;
(iii) fund state mandated actions to meet legislative mandates or judicial or administrative orders that relate to promoting:
(A) the accurate valuation of property; and
(B) the establishment and maintenance of uniform assessment levels within and among counties; and
(iv) establish reappraisal programs that:
(A) are adopted by a resolution or ordinance of the county legislative body; and
(B) conform to rules the commission makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(1) Each county shall separately budget and account for the use of any money the county receives or spends from a levy the county imposes in accordance with Section 59-2-1602.
(2) The program manager shall separately budget and account for the use of any revenue received from the fund.
(3) On or before October 1 of each year, the program manager shall submit an electronic report to the Revenue and Taxation Interim Committee and the commission that contains:
(a) a financial report that includes:
(i) the amount of revenue allocated to the program manager for the current calendar year; and
(ii) a summary of the uses of the revenue during the current calendar year; and
(b) a status report on:
(i) the development, enhancement, and implementation of the statewide property tax system and the statewide web portals described in Section 59-2-1606; and
(ii) achievement of the performance metrics described in Section 59-2-1606.
(4) On or before December 31 of each year, the program manager shall submit a detailed budget for the upcoming calendar year to the Division of Finance.
(5) For the calendar year that begins on January 1, 2026, the program manager shall submit a detailed budget for the current year to the Division of Finance on May 6, 2026.
(1) The purpose for creating the fund is to provide the counties with:
(a) a statewide property tax system that will promote:
(i) the accurate valuation of property;
(ii) the establishment and maintenance of uniform assessment levels among counties within the state;
(iii) efficient administration of the property tax system, including the costs of assessment, collection, and distribution of property taxes; and
(iv) the uniform filing of a signed statement a county assessor requests under Section 59-2-306, including implementation of a statewide electronic filing system; and
(b) property valuation services.
(2)
(a) The statewide property tax system shall comply with rules the commission establishes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) The fund manager, in conjunction with the commission, shall establish annual performance metrics for the development of the statewide property tax system.
(3)
(a) Except as described in Subsection (3)(b), each county shall adopt the statewide property tax system.
(b) A county may adopt only part of the statewide property tax system or none of the system if the county demonstrates to the commission that:
(i) the county uses a property tax system that includes a computer assisted mass appraisal system and complies with rules the commission establishes in accordance with Subsection (2)(a); and
(ii) the county's overall system is able to exchange data with and make use of data received from the statewide property tax system.
(4) To promote the purposes described in Subsection (1), the program manager shall:
(a) maintain and enhance the statewide property tax system in accordance with Subsection (2);
(b) subject to Subsection (5), develop and maintain a statewide web portal for uniform access to property characteristics and features relevant to the valuation of real property;
(c) subject to Subsection (6), develop and maintain a statewide web portal for the uniform electronic filing of an application to appeal the valuation or equalization of real property with a county board of equalization under Section 59-2-1004; and
(d) assist counties with tracking and reporting appeals information to the commission as required by Section 59-2-1018.
(5)
(a) The statewide web portal for uniform access to property characteristics and features developed under Subsection (4)(b) shall specify, at a minimum, the following property characteristics and features:
(i) parcel or serial number;
(ii) situs address;
(iii) tax area;
(iv) the neighborhood;
(v) property type;
(vi) land type;
(vii) quality or condition;
(viii) year of construction;
(ix) gross living area;
(x) acreage;
(xi) market value; and
(xii) taxable value.
(b) In developing the statewide web portal for uniform access to property characteristics and features under Subsection (4)(b), the program manager may link the statewide web portal to a web portal a county maintains for accessing property characteristics and features within the county if the program manager determines that the county web portal meets the requirements of Subsection (5)(a).
(6) In developing the statewide web portal for the uniform electronic filing of appeal applications under Subsection (4)(c), the program manager may link the statewide web portal to a web portal a county maintains for the uniform electronic filing of appeal applications if the program manager determines that the county web portal provides equivalent functions as the statewide web portal.
As used in this part:
(1) "Actively devoted to urban farming" means that:
(a) land is devoted to active urban farming activities; and
(b)
(i) the land produces greater than 50% of the average agricultural production per acre:
(A) as determined under Section 59-2-1703; and
(B) for the given type of land and the given county or area; or
(ii) agricultural production on the land generates annual gross sales of at least $1,000 for each quarter-acre of land devoted to active urban farming activities.
(2) "Rollback tax" means the tax imposed under Section 59-2-1705.
(3) "Urban farming" means:
(a) cultivating food or other marketable crop or engaging in livestock production, including grazing; and
(b) performing the activity described in Subsection (3)(a) with a reasonable expectation of profit and from irrigated land located in a county that has adopted an ordinance governing urban farming in accordance with Section 59-2-1714.
(4) "Withdrawn from this part" means that land that has been assessed under this part is no longer assessed under this part or eligible for assessment under this part for any reason including that:
(a) an owner voluntarily requests that the land be withdrawn from this part;
(b) the land is no longer actively devoted to urban farming;
(c)
(i) the land has a change in ownership; and
(ii)
(A) the new owner fails to apply for assessment under this part as required by Section 59-2-1707; or
(B) an owner applies for assessment under this part, as required by Section 59-2-1707, but the land does not meet the requirements of this part to be assessed under this part;
(d)
(i) the legal description of the land changes; and
(ii)
(A) an owner fails to apply for assessment under this part, as required by Section 59-2-1707; or
(B) an owner applies for assessment under this part, as required by Section 59-2-1707, but the land does not meet the requirements of this part to be assessed under this part;
(e) the owner of the land fails to file an application as provided in Section 59-2-1707; or
(f) except as provided in Section 59-2-1703, the land fails to meet a requirement of Section 59-2-1703.
(1)
(a) For general property tax purposes, land may be assessed on the basis of the value that the land has for agricultural use if the land:
(i) is actively devoted to urban farming;
(ii) is at least one contiguous acre, but less than five acres, in size; and
(iii)
(A) has been actively devoted to urban farming for at least two successive years immediately preceding the tax year for which the land is assessed under this part; or
(B) was assessed under Part 5, Farmland Assessment Act, for the preceding tax year.
(b) Land that is not actively devoted to urban farming may not be assessed as provided in Subsection (1)(a), even if the land is part of a parcel that includes land actively devoted to urban farming.
(2)
(a) In determining whether land meets the production requirement in Subsection 59-2-1702(1)(b)(i), production per acre for a given county or area and a given type of land shall be determined by using the first applicable of the following:
(i) production levels reported in the current publication of Utah Agricultural Statistics;
(ii) current crop budgets developed and published by Utah State University; or
(iii) the highest per acre value used for land assessed under the Farmland Assessment Act for the county in which the property is located.
(b) A county assessor may not assess land actively devoted to urban farming on the basis of the value that the land has for agricultural use under this part unless an owner files documentation with the county assessor:
(i) on a form provided by the county assessor;
(ii) demonstrating to the satisfaction of the county assessor that the land meets:
(A) the production requirement in Subsection 59-2-1702(1)(b)(i); or
(B) the gross sales requirement in Subsection 59-2-1702(1)(b)(ii); and
(iii) except as provided in Subsection 59-2-1707(2)(c)(i), no later than January 30 of the tax year in which the owner applies for assessment under this part.
(3) Notwithstanding Subsection (1)(a)(ii), a county board of equalization may grant a waiver of the acreage requirements of Subsection (1)(a)(ii):
(a) on appeal by an owner; and
(b) if the owner submits documentation to the county assessor demonstrating to the satisfaction of the county assessor that:
(i) the failure to meet the acreage requirements of Subsection (1)(a)(ii) arose solely as a result of an acquisition by a governmental entity by:
(A) eminent domain; or
(B) the threat or imminence of an eminent domain proceeding;
(ii) the land is actively devoted to urban farming; and
(iii) no change occurs in the ownership of the land.
(4)
(a) Notwithstanding Subsection (1) and except as provided in Subsection (4)(d), land for urban farming that is intentionally allowed to lay fallow for one or more growing seasons qualifies for assessment under this part if the fallowing is conducted:
(i) during periods of limited water supply;
(ii) as part of a prudent farm management practice, including crop rotation, rotational grazing, or soil water management; or
(iii) to facilitate voluntary participation in a water management or agricultural water optimization program.
(b) If the owner of land assessed under this part fallows the land during any period in a calendar year, the owner may, on or before December 31 of the year in which the land is fallowed, provide to the county assessor written notice that:
(i) identifies the land that was fallowed during any period of the calendar year in which the notice is provided, including the acreage of the fallowed land;
(ii) demonstrates how the fallowed land qualifies under Subsection (4)(a); and
(iii) specifies whether the owner intends to fallow the land during any period in the following calendar year, and, if so, the intended duration of the fallowing period.
(c)
(i) If a written notice under Subsection (4)(b) indicates that the owner intends to fallow the land during any period in the following calendar year, the county assessor may, within 45 days of receiving the written notice, require the owner to submit to the county assessor a land management plan in a form prescribed by the county assessor that:
(A) identifies the owner's objectives in fallowing the land for the intended duration of the fallowing period;
(B) provides adequate assurances to the county assessor that the fallowed land will become actively devoted to urban farming upon the expiration of the intended fallowing period; and
(C) includes any other information required by the county assessor.
(ii) If the owner submits to the county assessor a land management plan for fallowed land that meets the requirements of Subsection (4)(c)(i), the county assessor may not require the owner to submit a new or additional land management plan for the same land within three years from the day on which the owner submitted the plan.
(d) Fallowed land is withdrawn from this part if:
(i) the county assessor determines that the land does not qualify under Subsection (4)(a);
(ii) the owner fails to return the fallowed land to active urban farming upon the expiration of the intended fallowing period as specified in the written notice; or
(iii) the owner fails to comply with the requirements of Subsection (4)(c), if a land management plan is required.
(5) Notwithstanding Subsection (1), land that has been assessed under this part for meeting the gross sales requirement in Subsection 59-2-1702(1)(b)(ii) is not withdrawn from this part solely as a result of failing to meet the requirement of Subsection (1)(a)(iii)(A) if the land met the gross sales requirement in Subsection 59-2-1702(1)(b)(ii) for at least one of the three years immediately preceding the tax year for which the land is being assessed.
(1) The county assessor shall consider only those indicia of value that the land has for agricultural use as determined by the commission when assessing land:
(a) that meets the requirements of Section 59-2-1703 to be assessed under this part; and
(b) for which the owner has:
(i) made a timely application in accordance with Section 59-2-1707 for assessment under this part; and
(ii) obtained approval of the application described in Subsection (1)(b)(i) from the county assessor.
(2) In addition to the value determined in accordance with Subsection (1), the fair market value assessment shall be included on the notices described in:
(a) Section 59-2-919.1; and
(b) Section 59-2-1317.
(3) The county board of equalization shall review the agricultural use value and fair market value assessments each year as provided under Section 59-2-1001.
(1) Except as provided in this section or Section 59-2-1710, land that is withdrawn from this part is subject to a rollback tax imposed as provided in this section.
(2)
(a) An owner shall notify the county assessor that land is withdrawn from this part within 120 days after the day on which the land is withdrawn from this part.
(b) An owner who fails to notify the county assessor under Subsection (2)(a) that land is withdrawn from this part is subject to a penalty equal to the greater of:
(i) $10; or
(ii) 2% of the rollback tax due for the last year of the rollback period.
(3)
(a) The county assessor shall determine the amount of the rollback tax by computing the difference for the rollback period described in Subsection (3)(b) between:
(i) the tax paid while the land was assessed under this part; and
(ii) the tax that would have been paid had the property not been assessed under this part.
(b) For purposes of this section, the rollback period is a time period that:
(i) begins on the later of:
(A) except as provided in Subsection (3)(c), the date the land is first assessed under this part; or
(B) five years preceding the day on which the county assessor mails the notice required by Subsection (5); and
(ii) ends the day on which the county assessor mails the notice required by Subsection (5).
(c) For land that was previously assessed under Part 5, Farmland Assessment Act, the date described in Subsection (3)(b)(i)(A) is the date the land was first assessed under Part 5, Farmland Assessment Act, unless the land was subject to a rollback tax imposed under Section 59-2-506.
(4)
(a) The county treasurer shall:
(i) collect the rollback tax; and
(ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien on the property has been satisfied by:
(A) preparing a document that certifies that the rollback tax lien on the property has been satisfied; and
(B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder for recording.
(b) The county treasurer shall pay 100% of the rollback tax collected under this section to the county, which the county shall deposit and use in accordance with Section 17-41-602.
(5)
(a) The county assessor shall mail to an owner of the land that is subject to a rollback tax a notice that:
(i) the land is withdrawn from this part;
(ii) the land is subject to a rollback tax under this section; and
(iii) the rollback tax is delinquent if the owner of the land does not pay the tax on or before the due date listed on the notice described in this Subsection (5)(a).
(b)
(i) The rollback tax is due and payable within 60 days after the day on which the county assessor mails the notice required by Subsection (5)(a).
(ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that is withdrawn from this part does not pay the rollback tax on or before the due date listed on the notice described in Subsection (5)(a).
(6)
(a) Subject to Subsection (6)(b), the rollback tax and interest imposed under Subsection (7) are a lien on the land assessed under this part.
(b) The lien described in Subsection (6)(a) shall:
(i) arise upon the imposition of the rollback tax under this section;
(ii) end on the day on which the rollback tax and interest imposed under Subsection (7) are paid in full; and
(iii) relate back to the first day of the rollback period described in Subsection (3)(b).
(7)
(a) A delinquent rollback tax under this section shall accrue interest:
(i) from the date of delinquency until paid; and
(ii) at the interest rate established under Section 59-2-1331 and in effect on January 1 of the year in which the delinquency occurs.
(b) The county treasurer shall include in the notice required by Section 59-2-1317 a rollback tax that is delinquent on September 1 of any year and interest calculated on that delinquent amount through November 30 of the year in which the county treasurer provides the notice under Section 59-2-1317.
(8)
(a) Land that becomes ineligible for assessment under this part only as a result of an amendment to this part is not subject to the rollback tax if the owner of the land notifies the county assessor, in accordance with Subsection (2), that the land is withdrawn from this part.
(b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of an event other than an amendment to this part, whether voluntary or involuntary, is subject to the rollback tax.
(9) Except as provided in Section 59-2-1710, land that becomes exempt from taxation under Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land meets the requirements of Section 59-2-1703 to be assessed under this part.
(1)
(a) Land under a structure used in or related to urban farming, including a barn, shed, silo, crib, or greenhouse, or under a facility used in or related to urban farming, including a lake, dam, pond, stream, or irrigation ditch, is included in determining the total area of land actively devoted to urban farming.
(b) The land described in Subsection (1)(a) shall be included in determining if the land meets the production requirement in Subsection 59-2-1702(1)(b)(i) or the gross sales requirement in Subsection 59-2-1702(1)(b)(ii), as applicable.
(2)
(a) Except as provided in this part, land under a residence and land used in connection with residential use may not be included in determining the total area of land actively devoted to urban farming.
(b) Land described in Subsection (2)(a) shall be valued, assessed, and taxed in accordance with this chapter other than this part.
(c) The exclusion from assessment under this part of land described in Subsection (2)(a) that is part of a parcel does not disqualify any remaining portion of the land that meets the requirements of Section 59-2-1703 from assessment under this part.
(1) Before a county assessor may assess land under this part, an owner of land eligible for assessment under this part shall submit an application described in Subsection (2) to the county assessor of the county in which the land is located.
(2) An application required by Subsection (1) shall:
(a) be on a form:
(i) approved by the commission; and
(ii) provided to an owner:
(A) by the county assessor; and
(B) at the request of an owner;
(b) provide for the reporting of information related to this part;
(c) be submitted by:
(i) May 1 of the tax year in which assessment under Subsection (1) is requested if the land was not assessed under this part in the year before the application is submitted; or
(ii) the date otherwise required by this part for land that before the application being submitted has been assessed under this part;
(d) be signed by all of the owners of the land that under the application would be assessed under this part;
(e) be accompanied by the prescribed fees made payable to the county recorder;
(f) include a certification by an owner that the facts set forth in the application or signed statement are true;
(g) include a statement that the application constitutes consent by the owners of the land to the creation of a lien upon the land as provided in this part; and
(h) be recorded by the county recorder.
(3) An application described in Subsection (2) constitutes consent by the owners of the land to the creation of a lien upon the land as provided in this part.
(4)
(a) If the county determines that a timely filed application is incomplete, the county shall:
(i) notify the owner of the incomplete application; and
(ii) allow the owner to complete the application within 30 days from the day on which the county provides notice to the owner.
(b) An application that has not been completed within 30 days of the day of the notice described in Subsection (4)(a) is considered denied.
(5)
(a) Once the application required by Subsection (1) has been approved, the county assessor may:
(i) require, by written request of the county assessor, the owner to submit a new application or a signed statement that verifies that the land qualifies for assessment under this part; or
(ii) except as provided in Subsection (5)(b), require no additional signed statement or application for assessment under this part.
(b) A county assessor shall require that:
(i) an owner provide notice if land is withdrawn from this part as provided in Section 59-2-1705; and
(ii) a new owner submit an application in accordance with this section.
(c) An owner shall submit an application or signed statement required under Subsection (5)(a) by the date specified in the written request of the county assessor for the application or signed statement.
(6) A certification under Subsection (2)(f) is considered as if made under oath and subject to the same penalties as provided by law for perjury.
(7)
(a) An owner applying for participation under this part or a purchaser or lessee that signs a statement under Subsection (8) is considered to have given consent to a field audit and review by:
(i) the commission;
(ii) the county assessor; or
(iii) the commission and the county assessor.
(b) The consent described in Subsection (7)(a) is a condition to the acceptance of an application or signed statement.
(8) An owner of land eligible for assessment under this part, because a purchaser or lessee actively devotes the land to agricultural use as required by Section 59-2-1703, may qualify the land for assessment under this part by submitting, with the application described in Subsection (2), a signed statement from that purchaser or lessee certifying those facts that would be necessary to meet the requirements of Section 59-2-1703 for assessment under this part.
(1) Subject to the other provisions of this section, land assessed under this part may continue to be assessed under this part if the land continues to comply with the requirements of this part, regardless of whether the land continues to have the same owner or legal description.
(2) Notwithstanding Subsection (1), land described in Subsection (1) is subject to the rollback tax as provided in Section 59-2-1705 if the land is withdrawn from this part.
(3) Notwithstanding Subsection (1), land is withdrawn from this part if:
(a) there is a change in:
(i) the ownership of the land; or
(ii) the legal description of the land; and
(b) after a change described in Subsection (3)(a):
(i) the land does not meet the requirements of Section 59-2-1703;
(ii) an owner of the land fails to submit a new application for assessment as provided in Section 59-2-1707 within 120 days after the day on which a change described in Subsection (3)(a) occurs; or
(iii)
(A) an owner of the land submits the application required by this section; and
(B) the county denies the application upon review.
(4) Within 30 days from the day on which a county receives an application required by this section, the county shall:
(a) review the application for completion; and
(b) approve or deny the application.
(5) Land under an application required by this section is not withdrawn from this part for the period in which the application is under review by the county.
Separation of a part of the land that is being valued, assessed, and taxed under this part, either by conveyance or other action of the owner of the land, for a use other than urban farming, subjects the land that is separated to liability for the applicable rollback tax, but does not impair the continuance of urban farming valuation, assessment, and taxation for the remaining land if the remaining land continues to meet the requirements of this part.
(1) For purposes of this section, "governmental entity" means:
(a) the United States;
(b) the state;
(c) a political subdivision of the state, including a county, city, town, school district, special district, or special service district; or
(d) an entity created by the state or the United States, including an agency, board, bureau, commission, committee, department, division, institution, instrumentality, or office.
(2)
(a) Except as provided in Subsections (3) and (4), land acquired by a governmental entity is subject to the rollback tax imposed by this part if:
(i) before the governmental entity acquires the land, the land is assessed under this part; and
(ii) after the governmental entity acquires the land, the land does not meet the requirements of Section 59-2-1703 for assessment under this part.
(b) A person dedicating a public right-of-way to a governmental entity shall pay the rollback tax imposed by this part if:
(i) a portion of the public right-of-way is located within a subdivision as defined in Section 10-20-102; or
(ii) in exchange for the dedication, the person dedicating the public right-of-way receives money or other consideration.
(3)
(a) Except as provided in Subsection (4), land acquired by a governmental entity is not subject to the rollback tax imposed by this part, but is subject to a one-time in lieu fee payment as provided in Subsection (3)(b), if:
(i) the governmental entity acquires the land by eminent domain;
(ii)
(A) the land is under the threat or imminence of eminent domain proceedings; and
(B) the governmental entity provides written notice of the proceedings to the owner; or
(iii) the land is donated to the governmental entity.
(b)
(i) If a governmental entity acquires land under Subsection (3)(a)(iii), the governmental entity shall make a one-time in lieu fee payment:
(A) to the county treasurer of the county in which the land is located; and
(B) in an amount equal to the amount of rollback tax calculated under Section 59-2-1705.
(ii) A governmental entity that acquires land under Subsection (3)(a)(i) or (ii) shall make a one-time in lieu fee payment to the county treasurer of the county in which the land is located:
(A) if the land remaining after the acquisition by the governmental entity meets the requirements of Section 59-2-1703, in an amount equal to the rollback tax under Section 59-2-1705 on the land acquired by the governmental entity; or
(B) if the land remaining after the acquisition by the governmental entity is less than one acre, in an amount equal to the rollback tax under Section 59-2-1705 on the land acquired by the governmental entity and the land remaining after the acquisition by the governmental entity.
(c) The county treasurer shall pay 100% of the in lieu fee payment collected under this section to the county, which the county shall deposit and use in accordance with Section 17-41-602.
(4)
(a) This Subsection (4) applies only to a governmental entity that is the state or a political subdivision of the state as described in Subsections (1)(b) and (c).
(b) Land acquired by a governmental entity described in Subsection (4)(a) is not subject to the rollback tax imposed by this part.
(c) Notwithstanding Subsection (4)(b), a governmental entity described in Subsection (4)(a) may not, within five years after the day on which the governmental entity acquires land, sell the land to a private entity unless the governmental entity makes a one-time in lieu fee payment:
(i) to the county treasurer of the county in which the land is located;
(ii) in an amount equal to the rollback tax under Section 59-2-1705 on the land acquired by the governmental entity at the time of acquisition; and
(iii) before selling the land to the private entity.
(5) If a governmental entity acquires land subject to assessment under this part, title to the land may not pass to the governmental entity until any tax, one-time in lieu fee payment, and applicable interest due under this part are paid to the county treasurer.
The factual details to be shown on the assessor's tax list and duplicate with respect to land that is being valued, assessed, and taxed under this part are the same as those set forth by the assessor with respect to other taxable property in the county.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules and prescribe forms as necessary to administer this part.
(1) Notwithstanding Section 59-2-1004and except as provided in Subsection (2), the owner of land may appeal the determination or denial of a county assessor to the county board of equalization within 60 days after the day on which:
(a) the county assessor makes a determination under this part; or
(b) the county assessor's failure to make a determination results in the owner's request being considered denied under this part.
(2) Notwithstanding Subsection (1), the commission shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules establishing circumstances under which an appeal may be filed with the county board of equalization no later than 60 days after the deadline for an appeal described in Subsection (1).
(1) A county in this state may adopt an ordinance, authorizing residents of the county to:
(a) participate in urban farming; and
(b) utilize the provisions of this part.
(2)
(a) In adopting the ordinance, a county may limit urban farming to:
(i) cultivating food or other marketable crop; or
(ii) engaging in livestock production, including grazing.
(b) If the county ordinance does not limit urban farming, the county authorizes urban farming by either cultivating food or other marketable crop or engaging in livestock production, including grazing.
As used in this part:
(1)
(a) "Heavy equipment" means tangible personal property that:
(i) is owned by a qualified rental business for purposes of renting;
(ii) is utilized or designed for construction, earthmoving, or industrial operations; and
(iii) is portable and transferable to the location in which the heavy equipment is used.
(b) "Heavy equipment" includes:
(i) lift equipment;
(ii) material handling equipment;
(iii) cranes;
(iv) pumps;
(v) generators;
(vi) compressors;
(vii) portable power equipment;
(viii) heating, ventilation, and air conditioning equipment;
(ix) portable worksite offices and containers;
(x) tank trailers; and
(xi) self-propelled equipment.
(2) "Program manager" means the same as that term is defined in Section 59-2-1601.
(3) "Qualified rental business" means a business entity located in this state:
(a) that is classified within one of the following NAICS codes of the 2022 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget:
(i) NAICS Code 532310, General Rental Centers; or
(ii) NAICS Code 532412, Construction, Mining, and Forestry Machinery and Equipment Rental and Leasing; and
(b) for which 51% or more of the business entity's total annual revenue is derived from the rental of heavy equipment.
(4) "Recovery fee" means the fee authorized in Subsection 59-2-2002(1).
(5) "Rental" means the same as the terms "lease" or "rental" are defined in Section 59-12-102.
(6)
(a) "Rental charge" means the amount charged to a renter by a qualified rental business for the rental of heavy equipment.
(b) "Rental charge" does not include any additional charges separate from the actual cost of the rental transaction, including costs required for delivery, insurance, or a waiver of liability.
(7) "Renter" means the person to which a qualified rental business rents heavy equipment.
(1) A qualified rental business may charge to a renter a fee in an amount equal to 1.5% of the rental charge for each item of heavy equipment rented in this state.
(2) A recovery fee under Subsection (1):
(a) shall be separately stated on the invoice or receipt for the rental transaction; and
(b) is not subject to a sales and use tax under Chapter 12, Sales and Use Tax Act.
(3) A qualified rental business may not charge a recovery fee to a renter that is a governmental entity as defined in Section 59-2-511.
(4) Any amount of recovery fees collected by a qualified rental business during a calendar year shall be used as reimbursement for property taxes paid by the qualified rental business on heavy equipment in the same calendar year.
(5)
(a) The commission shall:
(i) in coordination with county assessors and the program manager, conduct a study to determine the need for adjustment to the rate authorized under Subsection (1) for purposes of property tax reimbursement; and
(ii) on or before September 30, 2027, provide to the Revenue and Taxation Interim Committee an electronic report of the results of the study required under Subsection (5)(a)(i), including any recommendations, based on information received by the commission, for legislative changes to the rate authorized under Subsection (1).
(b) Upon request by the commission, a county assessor or the program manager shall provide to the commission any information necessary to complete the study required under Subsection (5)(a)(i).
As used in this chapter:
(1) "Active component of the United States Armed Forces" means the same as that term is defined in Section 59-10-1027.
(2) "Active duty claimant" means a member of an active component of the United States Armed Forces or a reserve component of the United States Armed Forces who:
(a) performed qualifying active duty military service; and
(b) applies for an exemption described in Part 6, Active Duty Armed Forces Exemption.
(3) "Adjusted taxable value limit" means:
(a) for the calendar year that begins on January 1, 2023, $479,504; or
(b) for each calendar year after the calendar year that begins on January 1, 2023, the amount of the adjusted taxable value limit for the previous year plus an amount calculated by multiplying the amount of the adjusted taxable value limit for the previous year by the actual percent change in the consumer price index during the previous calendar year.
(4) "Claim" means:
(a) a claim for tax abatement described in Subsection (21)(a) or a credit under Part 2, Renter's Credit, or Part 3, Homeowner's Credit;
(b) an exemption under Part 5, Veteran Armed Forces Exemption, or Part 6, Active Duty Armed Forces Exemption; or
(c) an application for an abatement under Part 4, Abatement for Indigent Individuals, or a deferral under Part 7, Discretionary Deferral, Part 8, Nondiscretionary Deferral for Property with Qualifying Increase, or Part 9, Nondiscretionary Deferral for Elderly Property Owners.
(5)
(a) "Claimant" means a homeowner or renter who:
(i) files a claim under Part 2, Renter's Credit, or Part 3, Homeowner's Credit, for a residence;
(ii) is domiciled in this state for the entire calendar year for which a claim for relief is filed; and
(iii) on or before December 31 of the year for which a claim for relief is filed, is:
(A) 66 years old or older if the individual was born on or before December 31, 1959; or
(B) 67 years old or older if the individual was born on or after January 1, 1960.
(b) Notwithstanding Subsection (5)(a), "claimant" includes a surviving spouse:
(i) regardless of:
(A) the age of the surviving spouse; or
(B) the age of the deceased spouse at the time of death;
(ii) if the surviving spouse meets:
(A) the requirements described in Subsections (5)(a)(i) and (5)(a)(ii); and
(B) the income requirements described in Part 2, Renter's Credit, if the surviving spouse is filing a claim for a renter's credit, or Part 3, Homeowner's Credit, if the surviving spouse is filing a claim for a homeowner's credit;
(iii) if the surviving spouse is part of the same household of the deceased spouse at the time of death of the deceased spouse; and
(iv) if the surviving spouse is unmarried at the time the surviving spouse files the claim.
(c) If two or more individuals of a household are able to meet the qualifications for a claimant, the individuals may determine among them as to who the claimant shall be, but if the individuals are unable to agree, the matter shall be referred to the county legislative body for a determination of the claimant of an owned residence and to the commission for a determination of the claimant of a rented residence.
(6) "Consumer price index" means:
(a) for Part 2, Renter's Credit, and Part 3, Homeowner's Credit, the Consumer Price Index - All Urban Consumers, Housing United States Cities Average, published by the Bureau of Labor Statistics of the United States Department of Labor; and
(b) for the other parts of this chapter, the same as that term is described in Section 1(f)(4), Internal Revenue Code, and defined in Section 1(f)(5), Internal Revenue Code.
(7) "Deceased veteran with a disability" means a deceased individual who was a veteran with a disability at the time the individual died.
(8) "Deferral" means a postponement of a tax due date or a tax notice charge granted in accordance with Section 59-2a-701, 59-2a-801, or 59-2a-901.
(9) "Eligible owner" means an owner of an attached or a detached single-family residence:
(a)
(i) who is 75 years old or older on or before December 31 of the year in which the individual applies for a deferral under Part 9, Nondiscretionary Deferral for Elderly Property Owners;
(ii) whose household income does not exceed 200% of the maximum household income certified to a homeowner's credit described in Section 59-2a-305; and
(iii) whose household liquid resources do not exceed 20 times the amount of property taxes levied on the owner's residence for the preceding calendar year; or
(b) that is a trust described in Section 59-2a-109 if the grantor of the trust is an individual described in Subsection (9)(a).
(10) "Eligible property" means property owned by a veteran claimant that is:
(a) the veteran claimant's primary residence, including a residence that the veteran claimant does not reside in because the veteran claimant is admitted as an inpatient at a health care facility as defined in Section 26B-4-501; or
(b) tangible personal property that:
(i) is held exclusively for personal use; and
(ii) is not used in a trade or business.
(11)
(a) "Gross rent" means rent actually paid in cash or the cash equivalent solely for the right of occupancy, at arm's length, of a residence, exclusive of charges for any utilities, services, furniture, furnishings, or personal appliances furnished by the landlord as a part of the rental agreement.
(b) If a claimant occupies two or more residences in the year, "gross rent" means the total rent paid for the residences during the one-year period for which the renter files a claim under this part.
(12)
(a) "Homeowner" means:
(i) an individual whose name is listed on the deed of a residence; or
(ii) if a residence is owned in a qualifying trust, an individual who is a grantor, trustor, or settlor or holds another similar role in the trust.
(b) "Homeowner" does not include:
(i) if a residence is owned by any type of entity other than a qualifying trust, an individual who holds an ownership interest in that entity; or
(ii) an individual who is listed on a deed of a residence along with an entity other than a qualifying trust.
(13) "Homeowner's credit" means a credit against a claimant's property tax liability.
(14) "Household" means the association of individuals who live in the same dwelling, sharing the dwelling's furnishings, facilities, accommodations, and expenses.
(15)
(a) "Household income" means all income received by all members of a claimant's household in:
(i) for a claimant who owns a residence, the calendar year preceding the calendar year in which property taxes are due; or
(ii) for a claimant who rents a residence, the year for which a claim is filed.
(b) "Household income" does not include income received by a member of a claimant's household who is:
(i) under 18 years old; or
(ii) a parent or a grandparent, through blood, marriage, or adoption, of the claimant or the claimant's spouse.
(16) "Household liquid resources" means the following resources that are not included in an individual's household income and held by one or more members of the individual's household:
(a) cash on hand;
(b) money in a checking or savings account;
(c) savings certificates; and
(d) stocks or bonds.
(17) "Income" means the sum of:
(a) federal adjusted gross income as defined in Section 62, Internal Revenue Code; and
(b) nontaxable income.
(18) "Indigent individual" means a poor individual as described in Utah Constitution, Article XIII, Section 3, Subsection (4), who:
(a)
(i) is 65 years old or older; or
(ii) is less than 65 years old and:
(A) extreme hardship would prevail on the individual if the county does not defer or abate the individual's taxes; or
(B) the individual has a disability;
(b) has a total household income of less than the maximum household income certified to a homeowner's credit described in Section 59-2a-305;
(c) resides for at least 10 months of the year in the residence that would be subject to the requested abatement; and
(d) cannot pay the tax assessed on the individual's residence when the tax becomes due.
(19) "Military entity" means:
(a) the United States Department of Veterans Affairs;
(b) an active component of the United States Armed Forces; or
(c) a reserve component of the United States Armed Forces.
(20)
(a) "Nontaxable income" means amounts excluded from adjusted gross income under the Internal Revenue Code, including:
(i) capital gains;
(ii) loss carry forwards claimed during the taxable year in which a claimant files for relief under this chapter;
(iii) depreciation claimed pursuant to the Internal Revenue Code by a claimant on the residence for which the claimant files for relief under this chapter;
(iv) support money received;
(v) nontaxable strike benefits;
(vi) the gross amount of a pension or annuity, including benefits under the Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231 et seq., and veterans disability pensions;
(vii) except for payments described in Subsection (20)(b)(vi), payments received under the Social Security Act;
(viii) state unemployment insurance amounts;
(ix) nontaxable interest received from any source;
(x) workers' compensation;
(xi) the gross amount of "loss of time" insurance; and
(xii) voluntary contributions to a tax-deferred retirement plan.
(b) "Nontaxable income" does not include:
(i) public assistance;
(ii) aid, assistance, or contributions from a tax-exempt nongovernmental source;
(iii) surplus foods;
(iv) relief in kind supplied by a public or private agency;
(v) relief provided under this chapter;
(vi) social security disability income payments received under the Social Security Act;
(vii) federal tax refunds;
(viii) federal child tax credits received under 26 U.S.C. Sec. 24;
(ix) federal earned income tax credits received under 26 U.S.C. Sec. 32;
(x) payments received under a reverse mortgage;
(xi) payments or reimbursements to senior program volunteers under 42 U.S.C. Sec. 5058; or
(xii) gifts or bequests.
(21)
(a) "Property taxes accrued" means property taxes, exclusive of special assessments, delinquent interest, and charges for service, levied on 35% of the fair market value, as reflected on the assessment roll, of a claimant's residence in this state.
(b) For a mobile home, "property taxes accrued" includes taxes imposed on both the land upon which the home is situated and on the structure of the home itself, whether classified as real property or personal property taxes.
(c) The relief described in Subsection (21)(a) constitutes:
(i) a tax abatement for the poor in accordance with Utah Constitution, Article XIII,
Section 3; and
(ii) the residential exemption provided for in Section 59-2-103.
(d) For purposes of this Subsection (21), property taxes accrued are levied on the lien date.
(e) When a household owns and occupies two or more different residences in this state in the same calendar year, and neither residence is acquired or sold during the calendar year for which relief is claimed under this part, property taxes accrued shall relate only to the residence occupied on the lien date by the household as the household's principal place of residence.
(f)
(i) If a residence is an integral part of a large unit such as a farm or a multipurpose or multidwelling building, property taxes accrued shall be calculated on the percentage that the value of the residence is of the total value of the unit.
(ii) For purposes of this Subsection (21)(f), "unit" refers to the parcel of property covered by a single tax statement of which the residence is a part.
(22) "Property taxes due" means:
(a) for a claimant:
(i) the taxes due for which the county or the commission grants a tax abatement for the poor described in Subsection (21) or a credit; and
(ii) for the calendar year for which the tax abatement for the poor or credit is granted;
(b) for an indigent individual:
(i) the taxes due for which a county granted an abatement under Section 59-2a-401; and
(ii) for the calendar year for which the county grants the abatement;
(c) for an active duty claimant:
(i) the taxes due for which the county or the commission grants an exemption; and
(ii) for the calendar year for which the exemption is granted; or
(d) for a veteran claimant:
(i)
(A) the taxes due for which the county or the commission grants an exemption; and
(B) for the calendar year for which the exemption is granted; and
(ii) a uniform fee on tangible personal property described in Section 59-2-405 that is:
(A) owned by the veteran claimant; and
(B) assessed for the calendar year for which the county grants an exemption.
(23) "Property taxes paid" means an amount equal to the sum of:
(a) the amount of property taxes, and for a veteran claimant, uniform fee, paid for the taxable year for which the individual applied for relief described in this chapter; and
(b) the amount of the relief the county grants under this chapter.
(24) "Public assistance" means:
(a) medical assistance provided under Title 26B, Chapter 3, Health Care - Administration and Assistance;
(b) SNAP benefits as defined in Section 35A-1-102;
(c) services or benefits provided under Title 35A, Chapter 3, Employment Support Act; and
(d) foster care maintenance payments provided from the General Fund or under Title IV-E of the Social Security Act.
(25) "Qualifying active duty military service" means at least 200 days, regardless of whether consecutive, in any continuous 365-day period of active duty military service outside the state in an active component of the United States Armed Forces or a reserve component of the United States Armed Forces, if the days of active duty military service:
(a) were completed in the year before an individual applies for an exemption described in Section 59-2a-601; and
(b) have not previously been counted as qualifying active duty military service for purposes of qualifying for an exemption described in Section 59-2a-601 or applying for the exemption as described in Section 59-2a-602.
(26) "Qualifying disabled veteran claimant" means a veteran claimant who has a 100% service-connected disability rating by the Veterans Benefits Administration that is permanent and total.
(27) "Qualifying increase" means a valuation that is equal to or more than 150% higher than the previous year's valuation for property that:
(a) is county assessed; and
(b) on or after January 1 of the previous year and before January 1 of the current year has not had:
(i) a physical improvement if the fair market value of the physical improvement increases enough to result in the valuation increase solely as a result of the physical improvement;
(ii) a zoning change if the fair market value of the real property increases enough to result in the valuation increase solely as a result of the zoning change; or
(iii) a change in the legal description of the real property, if the fair market value of the real property increases enough to result in the valuation increase solely as a result of the change in the legal description of the real property.
(28) "Qualifying trust" means a trust holding title to real or tangible personal property for which an individual:
(a) makes a claim under this part;
(b) proves to the satisfaction of the county that title to the portion of the trust will revest in the individual upon the exercise of a power:
(i) by:
(A) the individual as grantor, trustor, settlor, or in another similar role of the trust;
(B) a nonadverse party; or
(C) both the individual and a nonadverse party; and
(ii) regardless of whether the power is a power:
(A) to revoke;
(B) to terminate;
(C) to alter;
(D) to amend; or
(E) to appoint; and
(c) is obligated to pay the taxes on that portion of the trust property beginning January 1 of the year the individual makes the claim.
(29) "Relative" means a spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or a spouse of any of these individuals.
(30) "Rental assistance payment" means any payment that:
(a) is made by a:
(i) governmental entity;
(ii) charitable organization; or
(iii) religious organization; and
(b) is specifically designated for the payment of rent of a claimant:
(i) for the calendar year for which the claimant seeks a renter's credit under this part; and
(ii) regardless of whether the payment is made to the claimant or the landlord.
(31) "Reserve component of the United States Armed Forces" means the same as that term is defined in Section 59-10-1027.
(32)
(a)
(i) "Residence" means a dwelling in this state, whether owned or rented, and so much of the land surrounding the dwelling, not exceeding one acre, as is reasonably necessary for use of the dwelling as a home.
(ii) "Residence" includes a dwelling that is:
(A) a part of a multidwelling or multipurpose building and a part of the land upon which the multidwelling or multipurpose building is built; and
(B) a mobile home, manufactured home, or houseboat.
(b) "Residence" does not include personal property such as furniture, furnishings, or appliances.
(c) For purposes of this Subsection (32), "owned" includes a vendee in possession under a land contract or one or more joint tenants or tenants in common.
(33) "Statement of disability" means a document:
(a) issued by a military entity; and
(b) that lists the percentage of disability for the veteran with a disability or deceased veteran with a disability.
(34) "Tax notice charge" means the same as that term is defined in Section 59-2-1301.5.
(35) "Veteran claimant" means one of the following individuals who applies for an exemption described in Section 59-2a-501:
(a) a veteran with a disability;
(b) the unmarried surviving spouse of:
(i) a deceased veteran with a disability; or
(ii) a veteran who was killed in action or died in the line of duty; or
(c) a minor orphan of:
(i) a deceased veteran with a disability; or
(ii) a veteran who was killed in action or died in the line of duty.
(36) "Veteran who was killed in action or died in the line of duty" means an individual who was killed in action or died in the line of duty in an active component of the United States Armed Forces or a reserve component of the United States Armed Forces, regardless of whether that individual had a disability at the time that individual was killed in action or died in the line of duty.
(37) "Veteran with a disability" means an individual with a disability who, during military training or a military conflict, acquired a disability in the line of duty in an active component of the United States Armed Forces or a reserve component of the United States Armed Forces, as determined by a military entity.
(1)
(a) The right to file a claim under this chapter is personal to the individual eligible to file the claim.
(b) The right to file a claim does not survive the death of the individual eligible to file the claim.
(c) The right to file a claim may be exercised on behalf of an individual eligible to file the claim by:
(i) a legal guardian; or
(ii) an attorney-in-fact.
(2)
(a) If an individual dies after having filed a timely claim, the county or the commission shall disburse the amount of the claim to another member of the household as determined by the commission by rule.
(b) If the individual described in Subsection (2)(a) was the only member of the household, the county or the commission may pay the claim to the executor or administrator, except that if neither an executor or administrator is appointed and qualified within two years of the filing of the claim, the amount of the claim escheats to the state.
(3) If the individual is the grantor, trustor, or settlor of or holds another similar role in a qualifying trust and the individual meets the requirements of one or more parts of this chapter, the individual may claim the portion of the credit and be treated as the owner of that portion of the property held in trust.
(4) The relief described in Subsection 59-2a-101(21)(a) is in addition to any other exemption or reduction for which a homeowner may be eligible, including the homeowner's credit provided for in Section 59-2a-305.
(1) The commission shall make available suitable forms and instructions for:
(a) individuals filing claims; and
(b) counties.
(2) A county is not required to use the forms and instructions made available by the commission under Subsection (1) if the county prepares suitable forms and instructions for an individual filing a claim consistent with:
(a) this chapter; and
(b) rules adopted by the commission.
(3) The county legislative body may adopt rules or ordinances to:
(a) effectuate the property tax relief under this chapter; and
(b) designate one or more persons to perform the functions given the county under this chapter.
(1) If, on the audit of any claim filed under this chapter, the commission or the county determines the amount has been incorrectly determined, the commission or the county shall:
(a) redetermine the claim; and
(b) notify the individual filing the claim of the redetermination and the reason for the redetermination.
(2) The redetermination provided in Subsection (1)(a) is final unless appealed within 30 days after the day on which the commission or the county provides the notice required by Subsection (1)(b).
(1)
(a) If the commission or the county determines that a claim is excessive and was filed with fraudulent intent, the commission or the county shall:
(i) disallow the claim in full;
(ii) cancel the credit; and
(iii) recover the amount paid or claimed by assessment with interest:
(A) from the date of the claim until the claim is refunded or repaid; and
(B) at the rate of 1% per month.
(b)
(i) An individual who files an excessive claim, with fraudulent intent, is guilty of a class A misdemeanor.
(ii) An individual who assists in the preparation or filing of an excessive claim or supplies information upon which an excessive claim was prepared, with fraudulent intent, is guilty of a class A misdemeanor.
(2) If the commission or the county determines that a claim is excessive and negligently prepared, the commission or the county shall:
(a) disallow 10% of the corrected claim; and
(b) recover the proper portion of any amount paid by assessment with interest:
(i) from the date of the claim until the claim is refunded or repaid; and
(ii) at the rate of 1% per month.
Any person aggrieved by the denial in whole or in part of relief claimed under this chapter may appeal the denial to the commission by filing a notice of appeal in accordance with Section 59-2-1006.
A claim shall be disallowed if the commission or county finds that the claimant received title to a residence primarily for the purpose of receiving benefits under this chapter.
(1)
(a) The commission or a county may extend the time for filing an application until December 31 of the year the application is required to be filed if, subject to any rules made by the commission under Subsection (1)(b), the commission or county finds that good cause exists to extend the deadline.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to establish the circumstances under which the commission or a county may, for good cause, extend the deadline for filing an application under Subsection (1)(a).
(2) A county granting an abatement described in Subsection 59-2a-101(21) or to an indigent individual, a homeowner's credit, or an exemption described in Part 5, Veteran Armed Forces Exemption, or Part 6, Active Duty Armed Forces Exemption, shall refund to the recipient of the abatement, homeowner's credit, or exemption an amount equal to the amount by which the property taxes paid exceed the property taxes due, if that amount is $1 or more.
If an applicant for a homeowner's credit, a deferral, or an abatement is the grantor of a trust holding title to real or tangible personal property for which a homeowner's credit, a deferral, or an abatement is claimed, a county may allow the applicant to claim a portion of the homeowner's credit, deferral, or abatement and be treated as the owner of that portion of the property held in trust, if the applicant proves to the satisfaction of the county that:
(1) title to the portion of the trust will revest in the applicant upon the exercise of a power by:
(a) the claimant as grantor of the trust;
(b) a nonadverse party; or
(c) both the claimant and a nonadverse party;
(2) title will revest as described in Subsection (1), regardless of whether the power described in Subsection (1) is a power to revoke, terminate, alter, amend, or appoint;
(3) the applicant is obligated to pay the taxes on that portion of the trust property beginning January 1 of the year the claimant claims the homeowner's credit, deferral, or abatement; and
(4) the claimant satisfies the requirements described in this chapter for homeowner's credit, deferral, or abatement.
A county legislative body may adopt rules or ordinances to:
(1) effectuate a claim under this chapter, other than a claim under Part 2, Renter's Credit; or
(2) designate one or more persons to perform the functions given to the county under this chapter.
(1) Unless otherwise provided by this chapter, the relief authorized under this chapter shall be administered, enforced, and interpreted in accordance with Chapter 2, Property Tax Act.
(2) If relief is granted, the county shall collect the tax due in accordance with the collection procedures of Chapter 2, Property Tax Act.
(1) The purpose of this part is to provide general tax relief for certain persons who rent their places of residence through a system of tax credits, refunds, and appropriations from the General Fund.
(2) The relief is to offset in part the general tax burden, a significant portion of which, directly or indirectly, is represented by property tax.
(3)
(a) Accordingly, the tax relief provided by this part is determined in part by reference to the property tax assessment and collection mechanisms, but is not limited to property tax relief nor is the tax relief formulated upon the Legislature's power to relieve property taxes.
(b) The tax relief is for the general relief of all taxes.
(1) A claimant who rents a residence and meets the requirements of this part may receive a renter's credit.
(2) A claimant who meets the requirements of this part and Part 3, Homeowner's Credit, may claim in any year a renter's credit under Section 59-2a-205, a homeowner's credit as provided under Part 3, Homeowner's Credit, or both.
(3) Interest is not allowed on any payment made to a claimant under this part.
(1) The commission may not allow or pay a renter's credit unless the claim is actually filed with, and in the possession of, the commission on or before December 31 of each calendar year.
(2) Only one claimant per household per calendar year is entitled to payment under this part.
Every claimant shall supply to the commission, in support of the claim, a statement showing reasonable proof of rent paid, the name and address of the owner or managing agent of the property rented, and any changes of residence.
(1)
(a) Subject to Subsections (2) and (3), for a calendar year beginning on or after January 1, 2024, a claimant may claim a renter's credit for the previous calendar year that does not exceed the following amounts:
| | If household income is | Percentage of gross rent allowed as a credit | | --- | --- | --- | | | $0 -- $13,884 | 9.5% | | | $13,885 -- $18,515 | 8.5% | | | $18,516 -- $23,141 | 7.0% | | | $23,142 -- $27,770 | 5.5% | | | $27,771 -- $32,401 | 4.0% | | | $32,402 -- $36,754 | 3.0% | | | $36,755 -- $40,840 | 2.5% |
(b) For a calendar year beginning on or after January 1, 2025, the commission shall increase or decrease the household income eligibility amounts under Subsection (1)(a) by a percentage equal to the percentage difference between the consumer price index for the preceding calendar year and the consumer price index for calendar year 2023.
(2)
(a) A claimant may claim a renter's credit under this part only for gross rent that does not constitute a rental assistance payment.
(b) For purposes of determining whether a claimant receives a rental assistance payment and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining the terms:
(i) "governmental entity";
(ii) "charitable organization"; or
(iii) "religious organization."
(3) For purposes of calculating gross rent when a claimant's rent includes electricity or natural gas and the utility amount is not itemized in the statement provided in accordance with Section 59-2a-204, the commission shall deduct from rent:
(a) 7% of rent if the rent includes electricity or natural gas but not both; or
(b) 13% of rent if the rent includes both electricity and natural gas.
(4) An individual may not receive the renter's credit under this section if the individual is:
(a) claimed as a personal exemption on another individual's federal income tax return during any portion of a calendar year for which the individual seeks to claim the renter's credit under this section; or
(b) a dependent with respect to whom another individual claims a tax credit under Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for which the individual seeks to claim the renter's credit under this section.
(5) A payment for a renter's credit allowed by this section, and authorized by Section 59-2a-202, shall be paid from the General Fund.
(6) A credit under this section may not exceed the maximum amount allowed as a homeowner's credit for each income bracket under Section 59-2a-305.
If a homestead is rented by a person from another person under circumstances deemed by the commission to be not at arm's length, the commission may determine rent as at arm's length, and the determination is final unless appealed within 30 days after the day on which the commission determines the rent at arm's length.
(1) The purpose of this part is to provide general property tax relief for certain persons who own their places of residence through a system of tax credits, refunds, and appropriations from the General Fund.
(2) The relief is to offset in part the general tax burden, a significant portion of which, directly or indirectly, is represented by property tax.
(3)
(a) Accordingly, the tax relief provided by this part is determined in part by reference to the property tax assessment and collection mechanisms, but is not limited to property tax relief nor is the tax relief formulated upon the Legislature's power to relieve property taxes.
(b) The tax relief is for the general relief of all taxes.
(1) If a claimant who owns a residence meets the requirements of this part, the claimant's property tax liability for the calendar year is equal to property taxes accrued.
(2)
(a) A claimant meeting the requirements of this part and Part 2, Renter's Credit, may claim in any year a renter's credit under Part 2, Renter's Credit, a homeowner's credit as provided under Section 59-2a-305, or both.
(b) If a claimant who owns a residence claims a credit under Subsection (2)(a), the county shall apply the credit against the claimant's property taxes accrued.
(3) Interest is not allowed on any payment made to a claimant under this part.
(1)
(a) A claimant shall file annually an application for the credit with the county in which the residence for which the claimant is seeking a homeowner's credit is located before September 1.
(b) The application under this section shall:
(i) be on forms provided by the county that meet the requirements of Subsection 59-2a-103(3); and
(ii) include a household income statement signed by the claimant stating that:
(A) the income statement is correct; and
(B) the claimant qualifies for the credit.
(c)
(i) Subject to Subsection (1)(c)(ii), a county shall apply the credit in accordance with this section and Section 59-2a-304 for the year in which the claimant applies for a homeowner's credit if the claimant meets the criteria for obtaining a homeowner's credit as provided in this part.
(ii) A homeowner's credit under this part may not exceed the claimant's property tax liability for the residence for the year in which the claimant applies for a homeowner's credit under this part.
(d) A claimant may qualify for a homeowner's credit under this part regardless of whether the claimant owes delinquent property taxes.
(2)
(a)
(i) The county shall compile a list of claimants and the homeowner's credits granted to the claimants for purposes of obtaining payment from the General Fund for the amount of credits granted.
(ii) A county may not obtain payment from the General Fund for the amount described in Subsection 59-2a-101(21).
(b) Upon certification by the commission the payment for the credits under this Subsection (2) shall be made to the county on or before January 1 if the list of claimants and the credits granted are received by the commission on or before November 30 of the year in which the credits under this part are granted.
(c) If the commission does not receive the list under this Subsection (2) on or before November 30, payment shall be made within 30 days of receipt of the list of claimants and credits from the county.
(1) A county shall apply as provided in Subsection 59-2a-303 the amount of a credit under this part against:
(a) a claimant's property tax liability; or
(b) the property tax liability of a spouse who was a member of the claimant's household in the year in which the claimant applies for a homeowner's credit under this part.
(2) Only one claimant per household per year is entitled to payment under this part.
(1)
(a) Subject to Subsection (2), for a calendar year beginning on or after January 1, 2024, a claimant may claim a homeowner's credit that does not exceed the following amounts:
| | If household income is | Homeowner's credit | | --- | --- | --- | | | $0 -- $13,884 | $1,259 | | | $13,885 -- $18,515 | $1,105 | | | $18,516 -- $23,141 | $954 | | | $23,142 -- $27,770 | $726 | | | $27,771 -- $32,401 | $577 | | | $32,402 -- $36,754 | $351 | | | $36,755 -- $40,840 | $197 |
(b) For a calendar year beginning on or after January 1, 2025, the commission shall increase or decrease the household income eligibility amounts and the credits under Subsection (1)(a) by a percentage equal to the percentage difference between the consumer price index for the preceding calendar year and the consumer price index for calendar year 2023.
(2)
(a) An individual may not receive the homeowner's credit under this section or the abatement described in Subsection 59-2a-101(21) on 20% of the fair market value of the residence if:
(i) the individual is claimed as a personal exemption on another individual's federal income tax return during any portion of a calendar year for which the individual seeks to claim the homeowner's credit under this section;
(ii) the individual is a dependent with respect to whom another individual claims a tax credit under Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for which the individual seeks to claim the homeowner's credit under this section; or
(iii) the individual did not own the residence for the entire calendar year for which the individual claims the homeowner's credit.
(b) For a calendar year in which a residence is sold, the amount received as a homeowner's credit under this section or as an abatement described in Subsection 59-2a-101(21) on 20% of the fair market value of the residence shall be repaid to the county on or before the day on which the sale of the residence closes.
(3) A payment for a homeowner's credit allowed by this section, and authorized by Section 59-2a-302, shall be paid from the General Fund.
(4) After the commission has adjusted the homeowner credit amount under Subsection (1)(b), the commission shall increase each homeowner credit amount under Subsection (1) by $49.
In accordance with this part, a county may remit or abate the taxes of an indigent individual:
(1) if the indigent individual owned the property as of January 1 of the year for which the county remits or abates the taxes; and
(2) in an amount not more than the lesser of:
(a) the amount provided as a homeowner's credit for the lowest household income bracket as described in Section 59-2a-305; or
(b) 50% of the total tax levied for the indigent individual for the current year.
(1)
(a) Except as provided in Section 59-2a-108 or Subsection (2), an applicant for abatement for the current tax year shall annually file an application on or before September 1 with the county in which the applicant's property is located.
(b) An indigent individual may apply and potentially qualify for deferral under Part 7, Discretionary Deferral, Part 8, Nondiscretionary Deferral for Property with Qualifying Increase, or Part 9, Nondiscretionary Abatement for Elderly Property Owners, abatement, or both.
(2) A county shall extend the September 1 application deadline by one additional year if the county determines that:
(a) the applicant or a member of the applicant's immediate family had an illness or injury that prevented the applicant from filing the application on or before the September 1 application deadline;
(b) a member of the applicant's immediate family died during the calendar year of the September 1 application deadline;
(c) the failure of the applicant to file the application on or before the September 1 application deadline was beyond the reasonable control of the applicant; or
(d) denial of an application would be unjust or unreasonable.
(3) An applicant shall include in an application a signed statement that describes the eligibility of the applicant for abatement.
(4) Both spouses shall sign an application if the application seeks an abatement on a residence:
(a) in which both spouses reside; and
(b) that the spouses own as joint tenants.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to implement this section.
(1) In accordance with this part, the amount of taxable value of eligible property described in Subsection (2) or (3) is exempt from taxation if the eligible property is owned by a veteran claimant.
(2)
(a) Except as provided in Subsection (3), the amount of taxable value of eligible property that is exempt under Subsection (1) is equal to the percentage of disability described in the statement of disability multiplied by the adjusted taxable value limit.
(b) The amount of an exemption calculated under Subsection (2)(a) may not exceed the taxable value of the eligible property.
(c) A county shall consider a veteran with a disability to have a 100% disability, regardless of the percentage of disability described on the statement of disability, if the United States Department of Veterans Affairs certifies the veteran in the classification of individual unemployability.
(d) A county may not allow an exemption claimed under this section if the percentage of disability listed on the statement of disability is less than 10%.
(3) The amount of taxable value of eligible property that is exempt under Subsection (1) is equal to the total taxable value of the veteran claimant's eligible property if the property is owned by:
(a) the unmarried surviving spouse of a veteran who was killed in action or died in the line of duty;
(b) a minor orphan of a veteran who was killed in action or died in the line of duty; or
(c) the unmarried surviving spouse or minor orphan of a deceased veteran with a disability:
(i) who served in the military service of the United States or the state prior to January 1, 1921; and
(ii) whose percentage of disability described in the statement of disability is 10% or more.
(4) For purposes of this section and Section 59-2a-502, an individual who received an honorable or general discharge from military service of an active component of the United States Armed Forces or a reserve component of the United States Armed Forces:
(a) is presumed to be a citizen of the United States; and
(b) may not be required to provide additional proof of citizenship to establish that the individual is a citizen of the United States.
(5) The Department of Veterans and Military Affairs created in Section 71A-1-201 shall, through an informal hearing held in accordance with Title 63G, Chapter 4, Administrative Procedures Act, resolve each dispute arising under this section concerning an individual's status as a veteran with a disability.
(1) A veteran claimant may claim an exemption in accordance with Section 59-2a-501 and this section if the veteran claimant owns the property eligible for the exemption at any time during the calendar year for which the veteran claimant claims the exemption.
(2)
(a) Except as provided in Section 59-2a-108 or Subsection (3) or (5), a veteran claimant shall file, on or before September 1 of the calendar year for which the veteran claimant is applying for the exemption, an application for an exemption described in Section 59-2a-501 with the county in which the veteran claimant resides on September 1 of that calendar year.
(b) An application described in Subsection (2)(a) shall include:
(i) a copy of the veteran's certificate of discharge from military service or other satisfactory evidence of eligible military service; and
(ii) for an application submitted under the circumstances described in Subsection (4)(a), a statement, issued by a military entity, that gives the date on which the written decision described in Subsection (4)(a) takes effect.
(c) A veteran claimant who is claiming an exemption for a veteran with a disability or a deceased veteran with a disability shall ensure that, as part of the application described in this Subsection (2), the county has on file, for the veteran related to the exemption, a statement of disability.
(d) If a veteran claimant is in compliance with Subsection (2)(c), a county may not require the veteran claimant to file another statement of disability, except under the following circumstances:
(i) the percentage of disability has changed for the veteran with a disability or the deceased veteran with a disability; or
(ii) the veteran claimant is not the same individual who filed an application for the exemption for the calendar year immediately preceding the current calendar year.
(e) A county that receives an application described in Subsection (2)(a) shall, within 30 days after the day on which the county received the application, provide the veteran claimant with a receipt that states that the county received the veteran claimant's application.
(3) A county shall extend the September 1 application deadline by one additional year if, on or after January 4, 2004:
(a) a military entity issues a written decision that:
(i)
(A) for a potential claimant who is a living veteran, determines the veteran is a veteran with a disability; or
(B) for a potential claimant who is the unmarried surviving spouse or minor orphan of a deceased veteran, determines the deceased veteran was a deceased veteran with a disability at the time the deceased veteran with a disability died; and
(ii) takes effect in a year before the current calendar year; or
(b) the county legislative body determines that:
(i) the veteran claimant or a member of the veteran claimant's immediate family had an illness or injury that prevented the veteran claimant from filing the application on or before the September 1 application deadline;
(ii) a member of the veteran claimant's immediate family died during the calendar year of the September 1 application deadline;
(iii) the veteran claimant was not physically present in the state for a time period of at least six consecutive months during the calendar year of the September 1 application deadline; or
(iv) the failure of the veteran claimant to file the application on or before the September 1 application deadline:
(A) would be against equity or good conscience; and
(B) was beyond the reasonable control of the veteran claimant.
(4)
(a) A county shall allow a veteran claimant to amend an application described in Subsection (2)(b) after the application deadline if, on or after January 4, 2004, a military entity issues a written decision:
(i) that the percentage of disability has changed:
(A) for a veteran with a disability, if the veteran with a disability is the veteran claimant; or
(B) for a deceased veteran with a disability, if the claimant is the unmarried surviving spouse or minor orphan of a deceased veteran with a disability; and
(ii) that takes effect in a year before the current calendar year.
(b) A veteran claimant who files an amended application under Subsection (4)(a) shall include a statement, issued by a military entity, that gives the date on which the written decision described in Subsection (4)(a) takes effect.
(5)
(a) A qualifying disabled veteran claimant may submit an application described in Subsection (2)(b) before the qualifying disabled veteran claimant owns a residence if the qualifying disabled veteran claimant:
(i) intends to purchase the residence as evidenced by a real estate purchase contract or similar documentation;
(ii) files the application in the county where the residence that the qualifying disabled veteran claimant intends to purchase is located; and
(iii) intends to use the residence as the qualifying disabled veteran claimant's primary residence.
(b)
(i) The county shall process the application and send the qualifying disabled veteran claimant a receipt, which shall also include documentation that:
(A) the application is preliminarily approved or denied; and
(B) if the application is preliminarily approved, the amount of the qualifying disabled veteran claimant's tax exemption calculated in accordance with Section 59-2a-501.
(ii) The county shall provide the receipt within 15 business days after the day on which the county received the application.
(6) After issuing the receipt described in Subsection (2)(e) or (5)(b), a county may not require a veteran claimant to file another application under Subsection (2) or (5), except under the following circumstances relating to the veteran claimant:
(a) the veteran claimant applies all or a portion of an exemption to tangible personal property;
(b) the percentage of disability changes for a veteran with a disability or a deceased veteran with a disability;
(c) the veteran with a disability dies;
(d) a change in the veteran claimant's ownership of the veteran claimant's primary residence;
(e) a change in the veteran claimant's occupancy of the primary residence for which the veteran claimant claims an exemption under this section; or
(f) for an exemption relating to a deceased veteran with a disability or a veteran who was killed in action or died in the line of duty, the veteran claimant is not the same individual who filed an application for the exemption for the calendar year immediately preceding the current calendar year.
(7) A county may verify that real property for which a veteran claimant applies for an exemption is the veteran claimant's primary residence.
(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may, by rule:
(a) establish procedures and requirements for amending an application described in Subsection (2);
(b) for purposes of Subsection (3)(b), define the terms:
(i) "immediate family"; or
(ii) "physically present";
(c) for purposes of Subsection (3)(b), provide the circumstances under which the failure of a veteran claimant to file an application on or before the September 1 application deadline:
(i) would be against equity or good conscience; and
(ii) is beyond the reasonable control of a veteran claimant; or
(d) for purposes of Subsection (5)(a), establish the type of documentation that is evidence of intent to purchase.
(1) The total taxable value of an active duty claimant's primary residence is exempt from taxation for the calendar year after the year in which the active duty claimant completed qualifying military service.
(2) An active duty claimant may claim an exemption in accordance with this section if the active duty claimant owns the property eligible for the exemption at any time during the calendar year for which the active duty claimant claims the exemption.
(1) An active duty claimant shall:
(a) file an application as described in Subsection (2) in the year after the year during which the active duty claimant completes the qualifying active duty military service; and
(b) if the active duty claimant meets the requirements of this section, claim one exemption only in the year the active duty claimant files the application.
(2)
(a) Except as provided in Section 59-2a-108 or Subsection (3), an active duty claimant shall, on or before September 1 of the calendar year for which the active duty claimant is applying for the exemption, file an application for an exemption with the county in which the active duty claimant resides on September 1 of that calendar year.
(b) An application described in Subsection (2)(a) shall include:
(i) a completed travel voucher or other satisfactory evidence of eligible military service; and
(ii) a statement that lists the dates on which the 200 days of qualifying active duty military service began and ended.
(c) A county that receives an application described in Subsection (2)(a) shall, within 30 days after the day on which the county received the application, provide the active duty claimant with a receipt that states that the county received the active duty claimant's application.
(3) A county shall extend the September 1 application deadline by one additional year if the county legislative body determines that:
(a) the active duty claimant or a member of the active duty claimant's immediate family had an illness or injury that prevented the active duty claimant from filing the application on or before the September 1 application deadline;
(b) a member of the active duty claimant's immediate family died during the calendar year of the September 1 application deadline;
(c) the active duty claimant was not physically present in the state for a time period of at least six consecutive months during the calendar year of the September 1 application deadline; or
(d) the failure of the active duty claimant to file the application on or before the September 1 application deadline:
(i) would be against equity or good conscience; and
(ii) was beyond the reasonable control of the active duty claimant.
(4) After issuing the receipt described in Subsection (2)(c), a county may not require an active duty claimant to file another application under Subsection (2)(a), except under the following circumstances:
(a) a change in the active duty claimant's ownership of the active duty claimant's primary residence; or
(b) a change in the active duty claimant's occupancy of the primary residence for which the active duty claimant claims an exemption under this section.
(5) A county may verify that real property for which an active duty claimant applies for an exemption is the active duty claimant's primary residence.
(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule:
(a) establish procedures and requirements for amending an application described in Subsection (2);
(b) for purposes of Subsection (3), define the terms:
(i) "immediate family"; or
(ii) "physically present"; or
(c) for purposes of Subsection (3)(d), prescribe the circumstances under which the failure of an active duty claimant to file an application on or before the September 1 application deadline:
(i) would be against equity or good conscience; and
(ii) is beyond the reasonable control of an active duty claimant.
(1)
(a) In accordance with this part and after receiving an application and giving notice to the taxpayer, a county may grant a deferral to an owner who is an indigent individual on residential property.
(b) In determining whether to grant an application for a deferral under this section, a county shall consider an asset transferred to a relative by an applicant for deferral, if the transfer took place during the three years before the day on which the applicant applied for deferral.
(2) A county may grant a deferral described in Subsection (1) at any time:
(a) after the holder of each mortgage or trust deed outstanding on the property gives written approval of the application; and
(b) if the applicant is not the owner of income-producing assets that could be liquidated to pay the tax.
(3)
(a) Taxes and tax notice charges deferred under this part accumulate with interest and applicable recording fees as a lien against the residential property.
(b) A lien described in this Subsection (3) has the same legal status as a lien described in Section 59-2-1325.
(c) To release the lien described in this Subsection (3), an owner shall pay the total amount subject to the lien:
(i) upon the owner selling or otherwise disposing of the residential property; or
(ii) when the residential property is no longer the owner's primary residence.
(d)
(i) Notwithstanding Subsection (3)(c), an owner that receives a deferral does not have to pay the deferred taxes, deferred tax notice charges, or applicable recording fees when the residential property transfers:
(A) to the owner's surviving spouse as a result of the owner's death; or
(B) between the owner and a trust described in Section 59-2a-109 for which the owner is the grantor.
(ii) After the residential property transfers to the owner's surviving spouse, the deferred taxes, deferred tax notice charges, and applicable recording fees are due:
(A) upon the surviving spouse selling or otherwise disposing of the residential property; or
(B) when the residential property is no longer the surviving spouse's primary residence.
(e) When the deferral period ends:
(i) the lien becomes due and subject to the collection procedures described in Section 59-2-1331; and
(ii) the date of levy is the date that the deferral period ends.
(4)
(a) If a county grants an owner more than one deferral for the same single-family residence, the county is not required to submit for recording more than one lien.
(b) Each subsequent deferral relates back to the date of the initial lien filing.
(5)
(a) For each residential property for which the county grants a deferral, the county treasurer shall maintain a record that is an itemized account of the total amount of deferred property taxes and deferred tax notice charges subject to the lien.
(b) The record described in this Subsection (5) is the official record of the amount of the lien.
(6) Taxes and tax notice charges deferred under this part bear interest at a rate equal to 50% of the rate described in Subsections 59-2-1331(2)(c) and (d).
(1)
(a) Except as provided in Section 59-2a-108 or Subsection (2), an applicant for deferral for the current tax year shall annually file an application on or before September 1 with the county in which the applicant's property is located.
(b) An indigent individual may apply and potentially qualify for deferral under this part, Part 8, Nondiscretionary Deferral for Property with Qualifying Increase, or Part 9, Nondiscretionary Deferral for Elderly Property Owners, an abatement, or both.
(2) A county shall extend the September 1 application deadline by one additional year if:
(a) the applicant had been approved for a deferral under this part in the prior year; or
(b) the county determines that:
(i) the applicant or a member of the applicant's immediate family had an illness or injury that prevented the applicant from filing the application on or before the September 1 application deadline;
(ii) a member of the applicant's immediate family died during the calendar year of the September 1 application deadline;
(iii) the failure of the applicant to file the application on or before the September 1 application deadline was beyond the reasonable control of the applicant; or
(iv) denial of an application would be unjust or unreasonable.
(3) An applicant shall include in an application a signed statement that describes the eligibility of the applicant for deferral.
(4) Both spouses shall sign an application if the application seeks a deferral or abatement on a residence:
(a) in which both spouses reside; and
(b) that the spouses own as joint tenants.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to implement this section.
(1) A county shall grant a deferral for any real property if an owner of the property:
(a) applies for a property tax deferral on or before the date provided in Section 59-2a-802; and
(b) has a qualifying increase for the calendar year that begins on January 1, 2023, or January 1, 2024.
(2)
(a) The period of deferral is five years.
(b) The property owner shall pay 20% of the taxes and tax notice charges due during each year of the five-year deferral period.
(c) A county shall grant a separate five-year deferral period if an owner has a qualifying increase for both the calendar year that begins on January 1, 2023, and the calendar year that begins on January 1, 2024.
(3)
(a) Taxes and tax notice charges deferred under this part accumulate as a lien against the real property.
(b) A lien described in this Subsection (3) has the same legal status as a lien described in Section 59-2-1325.
(c) To release the lien described in this Subsection (3), an owner shall pay the total amount subject to the lien on or before the earlier of:
(i) the day on which the five-year deferral period ends; or
(ii) the day the owner sells or otherwise disposes of the real property.
(d) When the deferral period ends:
(i) the lien becomes due and subject to the collection procedures described in Section 59-2-1331; and
(ii) the date of levy is the date that the deferral period ends.
(4)
(a) Notwithstanding Section 59-2-1331, a county may not impose a penalty or interest during the period of deferral.
(b) If the property owner does not make all deferred payments before the day on which the five-year deferral period ends, the county may assess a penalty or interest in accordance with Section 59-2-1331 on the unpaid amount.
(5)
(a) If a county grants an owner more than one deferral for the same property, the county is not required to submit for recording more than one lien.
(b) Each subsequent deferral relates back to the date of the initial lien filing.
(6)
(a) For each property for which the county grants a deferral, the county treasurer shall maintain a record that is an itemized account of the total amount of deferred property taxes and deferred tax notice charges subject to the lien.
(b) The record described in this Subsection (6) is the official record of the amount of the lien.
(7) For a property that has a qualifying increase for the calendar year that begins on January 1, 2023, or January 1, 2024, a county assessor shall include with the notice provided in accordance with Section 59-2-919.1 for the calendar year that begins on January 1, 2024, a notice informing the owner of record of:
(a)
(i) for a property that has a qualifying increase for the calendar year that begins on January 1, 2023, the option to file an appeal under the extended period described in Section 59-2-1004.1; or
(ii) for a property that has a qualifying increase for the calendar year that begins on January 1, 2024, the option to file an appeal under Section 59-2-1004;
(b) instructions for filing an appeal;
(c) the option to apply for a deferral in accordance with this section; and
(d) the ability of the county to waive any penalty or interest assessed in accordance with Section 59-2-1331.
(1) The owner of the property shall apply for a deferral on or before the later of:
(a) June 30, 2025; or
(b) if an appeal of valuation or equalization of a property described in Subsection 59-2a-801(1) is filed with a county board of equalization, the commission, or a court of competent jurisdiction, 30 days after the day on which the county board of equalization, the commission, or a court of competent jurisdiction issues a final, unappealable judgment or order.
(2) An indigent individual may apply and potentially qualify for deferral under this part, Part 7, Discretionary Deferral, or Part 9, Nondiscretionary Deferral for Elderly Property Owners, an abatement, or both.
(3) An applicant shall include in an application a signed statement that describes the eligibility of the applicant for deferral.
(4) Both spouses shall sign an application if the application seeks a deferral or abatement on a residence:
(a) in which both spouses reside; and
(b) that the spouses own as joint tenants.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to implement this section.
(1) An eligible owner may apply for a deferral under this section if:
(a) the eligible owner uses the single-family residence as the eligible owner's primary residence as of January 1 of the year for which the eligible owner applies for the deferral;
(b) with respect to the single-family residence, there are no:
(i) delinquent property taxes;
(ii) delinquent tax notice charges; or
(iii) outstanding penalties, interest, or administrative costs related to a delinquent property tax or a delinquent tax notice charge;
(c)
(i) the value of the single-family residence for which the eligible owner applies for the deferral is no greater than the median property value of:
(A) attached single-family residences within the county, if the single-family residence is an attached single-family residence; or
(B) detached single-family residences within the county, if the single-family residence is a detached single-family residence; or
(ii) the eligible owner has owned the single-family residence for a continuous 20-year period as of January 1 of the year for which the eligible owner applies for the deferral; and
(d) the holder of each mortgage or trust deed outstanding on the single-family residence gives written approval of the deferral.
(2) If the conditions in Subsection (1) are satisfied and the applicant complies with the other applicable provisions of this part, a county shall defer the property tax and tax notice charges on an attached single-family residence or a detached single-family residence.
(3) The values described in Subsection (1)(c) are based on the county assessment roll for the county in which the single-family residence is located.
(4) For purposes of Subsection (1)(c)(ii), ownership is considered continuous regardless of whether the single-family residence is transferred between an eligible owner who is an individual and an eligible owner that is a trust.
(1)
(a) Except as provided in Section 59-2a-108 or Subsection (2), an applicant for deferral for the current tax year shall annually file an application on or before September 1 with the county in which the applicant's property is located.
(b) An indigent individual may apply and potentially qualify for deferral under Part 7, Discretionary Deferral, or Part 8, Nondiscretionary Deferral for Property with Qualifying Increase, an abatement, or both.
(2) A county shall extend the September 1 application deadline by one additional year if:
(a) the applicant had been approved for a deferral under this part in the prior year; or
(b) the county determines that:
(i) the applicant or a member of the applicant's immediate family had an illness or injury that prevented the applicant from filing the application on or before the September 1 application deadline;
(ii) a member of the applicant's immediate family died during the calendar year of the September 1 application deadline;
(iii) the failure of the applicant to file the application on or before the September 1 application deadline was beyond the reasonable control of the applicant; or
(iv) denial of an application would be unjust or unreasonable.
(3)
(a) An applicant shall include in an application a signed statement that describes the eligibility of the applicant for deferral.
(b) The requirements described in Subsection (3)(a) include:
(i) proof that the applicant resides at the single-family residence for which the applicant seeks the deferral;
(ii) proof of age; and
(iii) proof of household income.
(4) Both spouses shall sign an application if the application seeks a deferral on a residence:
(a) in which both spouses reside; and
(b) that the spouses own as joint tenants.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to implement this section.
(1) Upon application from a county in a form approved by the commission, the commission shall reimburse the county for the amount of any tax or tax notice charge that the county defers in accordance with this part.
(2) The commission may not reimburse a county:
(a) before the county approves the deferral; or
(b) for a tax or tax notice charge assessed after December 31, 2026.
(3) A county that receives money in accordance with this section shall:
(a) distribute the money to the taxing entities in the same proportion the county would have distributed the revenue from the deferred tax and deferred tax notice charge; and
(b) repay the money no later than 30 days after the day on which the deferral lien is satisfied.
(4) The commission shall deposit money received under Subsection (3)(b) into the General Fund.
As used in this chapter:
(1) "Tax equivalent payment" means a payment required or authorized by statute to be made in lieu of ad valorem taxes on tax exempt property pursuant to a contract entered into under statutory authority and filed with the county assessor of the county in which the property is located.
(2) "Tax equivalent property" means property on which any tax equivalent payment is made.
In determining the value of taxable property within any tax area for purposes of computing the limitation on indebtedness under Article XIV, Sec. 4, Utah Constitution, the value of all tax equivalent property shall be included as a part of the total value of taxable property.
The county assessor shall keep a separate list of the tax equivalent property in each tax area in the county, showing the value of all tax equivalent property in each area. The value of tax equivalent property established on the tax equivalent property list is subject to the same process of review and equalization as the value of taxable property shown in the assessment roll. The assessment roll delivered to the county treasurer under Section 59-2-326 shall include the tax equivalent property list as equalized. All tax equivalent property shall be assessed at its fair market value, as defined under Section 59-2-102.
(1)
(a) Subject to Subsection (1)(b) and except as provided in Section 59-4-103, a tax is imposed on the possession or other beneficial use enjoyed by any person of any real or personal property that is exempt for any reason from taxation, if that property is used in connection with a business conducted for profit.
(b) Any interest remaining in the state in state lands after subtracting amounts paid or due in part payment of the purchase price as provided in Subsection 59-2-1103(2)(b)(i) under a contract of sale is subject to taxation under this chapter regardless of whether the property is used in connection with a business conducted for profit.
(2)
(a) The tax imposed under this chapter is the same amount that the ad valorem property tax would be if the possessor or user were the owner of the property.
(b) The amount of any payments that are made in lieu of taxes is credited against the tax imposed on the beneficial use of property owned by the federal government.
(3)
(a) A tax imposed under this chapter is assessed to the possessors or users of the property on the same forms, and collected and, subject to Sections 11-70-203 and 11-59-207, distributed at the same time and in the same manner, as taxes assessed owners, possessors, or other claimants of property that is subject to ad valorem property taxation.
(b) The tax imposed under this chapter is not a lien against the property, and no tax-exempt property may be attached, encumbered, sold, or otherwise affected for the collection of the tax.
(4)
(a)
(i) Except as provided in Subsection (4)(a)(ii), if a governmental entity is required under this chapter to send information or notice to a person, the governmental entity shall send the information or notice to:
(A) the person required under the applicable provision of this chapter; and
(B) each person designated in accordance with Subsection (4)(b) by the person described in Subsection (4)(a)(i)(A).
(ii) If a governmental entity is required under Section 59-2-919.1 or 59-2-1317 to send information or notice to a person, the governmental entity shall send the information or notice to:
(A) the person required under the applicable section; or
(B) one person designated in accordance with Subsection (4)(b) by the person described in Subsection (4)(a)(ii)(A).
(b)
(i) A person to whom a governmental entity is required under this chapter to send information or notice may designate a person to receive the information or notice in accordance with Subsection (4)(a).
(ii) To make a designation described in Subsection (4)(b)(i), the person shall submit a written request to the governmental entity on a form prescribed by the commission.
(c) A person who makes a designation described in Subsection (4)(b) may revoke the designation by submitting a written request to the governmental entity on a form prescribed by the commission.
(5) Sections 59-2-301.1 through 59-2-301.7 apply for purposes of assessing a tax under this chapter.
A tax due and unpaid under this chapter constitutes a debt due the county for and on behalf of the various taxing units concerned with the tax. If the tax imposed by this chapter or any portion of the tax is not paid at the time the tax becomes delinquent, the county auditor shall issue a warrant in the name of the county directed to the clerk of the district court for that county. The clerk shall enter in the judgment docket, in the column for judgment debtors, the name of the delinquent taxpayer mentioned in the warrant and, in the appropriate columns, the amount of tax, penalties, interest, and other costs for which the warrant is issued and the date when the warrant is filed. The warrant so docketed has the force and effect of a judgment duly rendered by a district court and docketed in the office of the clerk, and the county has the same remedies against the possessor or user as any other judgment creditor.
(1) As used in this section:
(a) "Additional project capacity" means the same as that term is defined in Section 11-13-103.
(b) "Project" means the same as that term is defined in Section 11-13-103.
(c) "Public agency" means the same as that term is defined in Section 11-13-103.
(d) "Qualified stadium" means the same as that term is defined in Section 11-70-101.
(e) "Tollway development agreement" means the same as that term is defined in Section 72-6-202.
(2) The tax imposed under this chapter does not apply to the following:
(a) the use or possession of property exempt from taxation under Section 59-2-1114;
(b) the use or possession of property that is a concession in, or relative to, the use of a public airport, park, fairground, or similar property that is available as a matter of right to the use of the general public;
(c) the use or possession of property by a religious, educational, or charitable organization;
(d) the use or possession of property for which all revenue generated from the use or possession of the property inures only to the benefit of a religious, educational, or charitable organization and not to the benefit of any other person;
(e) the use or possession of public land occupied under the terms of an agricultural lease or permit issued by the United States or this state;
(f) subject to Subsection (3), the use or possession of any lease, permit, or easement unless the lease, permit, or easement entitles the lessee or permittee to exclusive possession of the premises to which the lease, permit, or easement relates;
(g) the use or possession of property by a public agency to the extent that the ownership interest of the public agency in that property is subject to a fee in lieu of ad valorem property tax under Section 11-13-302;
(h) the use or possession of public property as a tollway by a private entity through a tollway development agreement;
(i) in accordance with Section 11-12-312, the use or possession of a project or facility providing additional project capacity to the extent that the project or facility is subject to impact alleviation payments, fees in lieu of ad valorem property taxes, or ad valorem property taxes;
(j) in accordance with Subsection 11-70-203(1)(b), the use or possession of a qualified stadium during the construction of the qualified stadium and before title to the stadium is conveyed to the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201; or
(k) in accordance with Subsection 63H-1-501(7), the use or possession of a hotel, a hotel condominium unit in a condominium project, or a commercial condominium unit in a condominium project owned by the military installation development authority, created in Section 63H-1-201, regardless of whether the military installation development authority enters into a long-term operating agreement with a privately owned entity under which the privately owned entity agrees to operate the property.
(3) For purposes of Subsection (2)(f):
(a) each lessee, permittee, or other holder of a right to remove or extract the mineral covered by the holder's lease, right permit, or easement, except from brines of the Great Salt Lake, is considered to be in possession of the premises, regardless of whether another party has a similar right to remove or extract another mineral from the same property; and
(b) a lessee, permittee, or holder of an easement still has exclusive possession of the premises if the owner has the right to enter the premises, approve leasehold improvements, or inspect the premises.
As used in this part:
(1) "Board" means the Board of Oil, Gas, and Mining created in Section 40-6-4.
(2) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
(3) "Condensate" means the hydrocarbons, regardless of gravity, that occur naturally in the gaseous phase in the reservoir that are separated from the natural gas as liquids through the process of condensation either in the reservoir, in the wellbore, or at the surface in field separators.
(4) "Crude oil" means the hydrocarbons, regardless of gravity, that occur naturally in the liquid phase in the reservoir and are produced and recovered at the wellhead in liquid form.
(5) "Development well" means any oil and gas producing well other than a wildcat well.
(6) "Division" means the Division of Oil, Gas, and Mining established under Title 40, Chapter 6, Board and Division of Oil, Gas, and Mining.
(7) "Enhanced recovery project" means:
(a) the injection of liquids or hydrocarbon or nonhydrocarbon gases directly into a reservoir for the purpose of:
(i) augmenting reservoir energy;
(ii) modifying the properties of the fluids or gases in a reservoir; or
(iii) changing the reservoir conditions to increase the recoverable oil, gas, or oil and gas through the joint use of two or more well bores; and
(b) a project initially approved by the board as a new or expanded enhanced recovery project on or after January 1, 1996.
(8)
(a) "Gas" means:
(i) natural gas;
(ii) natural gas liquids; or
(iii) any mixture of natural gas and natural gas liquids.
(b) "Gas" does not include solid hydrocarbons.
(9) "Incremental production" means that part of production, certified by the division, which is achieved from an enhanced recovery project that would not have economically occurred under the reservoir conditions existing before the project and that has been approved by the division as incremental production.
(10) "Natural gas" means the hydrocarbons, other than oil and other than natural gas liquids separated from natural gas, that occur naturally in the gaseous phase in the reservoir and are produced and recovered at the wellhead in gaseous form.
(11) "Natural gas liquids" means the hydrocarbons initially in reservoir natural gas, regardless of gravity, that are separated in gas processing plants from the natural gas as liquids at the surface through the process of condensation, absorption, adsorption, or other methods.
(12)
(a) "Oil" means:
(i) crude oil;
(ii) condensate; or
(iii) any mixture of crude oil and condensate.
(b) "Oil" does not include solid hydrocarbons.
(13) "Oil or gas field" means a geographical area overlying oil or gas structures, the boundaries of which shall conform with the boundaries as fixed by the board and division under Title 40, Chapter 6, Board and Division of Oil, Gas, and Mining.
(14) "Oil shale" means a group of fine black to dark brown shales containing bituminous material that yields petroleum upon distillation.
(15) "Operator" means any person engaged in the business of operating an oil or gas well, regardless of whether the person is:
(a) a working interest owner;
(b) an independent contractor; or
(c) acting in a capacity similar to Subsection (15)(a) or (b) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(16) "Owner" means any person having a working interest, royalty interest, payment out of production, or any other interest in the oil or gas produced or extracted from an oil or gas well in the state, or in the proceeds of this production.
(17)
(a) Subject to Subsections (17)(b) and (c), "processing costs" means the reasonable actual costs of processing oil or gas to remove:
(i) natural gas liquids; or
(ii) contaminants.
(b) If processing costs are determined on the basis of an arm's-length contract, processing costs are the actual costs.
(c)
(i) If processing costs are determined on a basis other than an arm's-length contract, processing costs are those reasonable costs associated with:
(A) actual operating and maintenance expenses, including oil or gas used or consumed in processing;
(B) overhead directly attributable and allocable to the operation and maintenance; and
(C)
(I) depreciation and a return on undepreciated capital investment; or
(II) a cost equal to a return on the investment in the processing facilities as determined by the commission.
(ii) Subsection (17)(c)(i) includes situations where the producer performs the processing for the producer's product.
(18) "Producer" means any working interest owner in any lands in any oil or gas field from which gas or oil is produced.
(19) "Research and development" means the process of inquiry or experimentation aimed at the discovery of facts, devices, technologies, or applications and the process of preparing those devices, technologies, or applications for marketing.
(20) "Royalty interest owner" means the owner of an interest in oil or gas, or in the proceeds of production from the oil or gas who does not have the obligation to share in the expenses of developing and operating the property.
(21) "Solid hydrocarbons" means:
(a) coal;
(b) gilsonite;
(c) ozocerite;
(d) elaterite;
(e) oil shale;
(f) tar sands; and
(g) all other hydrocarbon substances that occur naturally in solid form.
(22) "Stripper well" means:
(a) an oil well whose average daily production for the days the well has produced has been 20 barrels or less of crude oil a day during any consecutive 12-month period; or
(b) a gas well whose average daily production for the days the well has produced has been 60 MCF or less of natural gas a day during any consecutive 90-day period.
(23) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon and require further processing other than mechanical blending before becoming finished petroleum products.
(24)
(a) Subject to Subsections (24)(b) and (c), "transportation costs" means the reasonable actual costs of transporting oil or gas products from the well to the point of sale.
(b) If transportation costs are determined on the basis of an arm's-length contract, transportation costs are the actual costs.
(c)
(i) If transportation costs are determined on a basis other than an arm's-length contract, transportation costs are those reasonable costs associated with:
(A) actual operating and maintenance expenses, including fuel used or consumed in transporting the oil or gas;
(B) overhead costs directly attributable and allocable to the operation and maintenance; and
(C) depreciation and a return on undepreciated capital investment.
(ii) Subsection (24)(c)(i) includes situations where the producer performs the transportation for the producer's product.
(d) Regardless of whether transportation costs are determined on the basis of an arm's-length contract or a basis other than an arm's-length contract, transportation costs include:
(i) carbon dioxide removal;
(ii) compression;
(iii) dehydration;
(iv) gathering;
(v) separating;
(vi) treating; or
(vii) a process similar to Subsections (24)(d)(i) through (vi), as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(25) "Tribe" means the Ute Indian Tribe of the Uintah and Ouray Reservation.
(26) "Well" means any extractive means from which oil or gas is produced or extracted, located within an oil or gas field, and operated by one person.
(27) "Wildcat well" means an oil and gas producing well which is drilled and completed in a pool, as defined under Section 40-6-2, in which a well has not been previously completed as a well capable of producing in commercial quantities.
(28) "Working interest owner" means the owner of an interest in oil or gas burdened with a share of the expenses of developing and operating the property.
(1) As used in this section:
(a) "Royalty rate" means the percentage of the interests described in Subsection (2)(b)(i) as defined by a contract between the United States, the state, an Indian, or an Indian tribe and the oil or gas producer.
(b) "Taxable value" means the total value of the oil or gas minus:
(i) any royalties paid to, or the value of oil or gas taken in kind by, the interest holders described in Subsection (2)(b)(i); and
(ii) the total value of oil or gas exempt from severance tax under Subsection (2)(b)(ii).
(c) "Taxable volume" means:
(i) for oil, the total volume of barrels minus:
(A) for an interest described in Subsection (2)(b)(i), the product of the royalty rate and the total volume of barrels; and
(B) the number of barrels that are exempt under Subsection (2)(b)(ii); and
(ii) for natural gas, the total volume of MCFs minus:
(A) for an interest described in Subsection (2)(b)(i), the product of the royalty rate and the total volume of MCFs; and
(B) the number of MCFs that are exempt under Subsection (2)(b)(ii).
(d) "Total value" means the value, as determined by Section 59-5-103.1, of all oil or gas that is:
(i) produced; and
(ii)
(A) saved;
(B) sold; or
(C) transported from the field where the oil or gas was produced.
(e) "Total volume" means:
(i) for oil, the number of barrels:
(A) produced; and
(B)
(I) saved;
(II) sold; or
(III) transported from the field where the oil was produced; and
(ii) for natural gas, the number of MCFs:
(A) produced; and
(B)
(I) saved;
(II) sold; or
(III) transported from the field where the natural gas was produced.
(f) "Value of oil or gas taken in kind" means the volume of oil or gas taken in kind multiplied by the market price for oil or gas at the location where the oil or gas was produced on the date the oil or gas was taken in kind.
(2)
(a) Except as provided in Subsection (2)(b), a person owning an interest in oil or gas produced from a well in the state, including a working interest, royalty interest, payment out of production, or any other interest, or in the proceeds of the production of oil or gas, shall pay to the state a severance tax on the owner's interest in the taxable value of the oil or gas:
(i) produced; and
(ii)
(A) saved;
(B) sold; or
(C) transported from the field where the substance was produced.
(b) The severance tax imposed by Subsection (2)(a) does not apply to:
(i) an interest of:
(A) the United States in oil or gas or in the proceeds of the production of oil or gas;
(B) the state or a political subdivision of the state in oil or gas or in the proceeds of the production of oil or gas; and
(C) an Indian or Indian tribe as defined in Section 9-9-101 in oil or gas or in the proceeds of the production of oil or gas produced from land under the jurisdiction of the United States; and
(ii) the value of:
(A) oil or gas produced from stripper wells, unless the exemption prevents the severance tax from being treated as a deduction for federal tax purposes;
(B) oil or gas produced in the first 12 months of production for wildcat wells started after January 1, 1990; and
(C) oil or gas produced in the first six months of production for development wells started after January 1, 1990.
(3)
(a) The severance tax on oil shall be calculated as follows:
(i) dividing the taxable value by the taxable volume;
(ii)
(A) multiplying the rate described in Subsection (4)(a)(i) by the portion of the figure calculated in Subsection (3)(a)(i) that is subject to the rate described in Subsection (4)(a)(i); and
(B) multiplying the rate described in Subsection (4)(a)(ii) by the portion of the figure calculated in Subsection (3)(a)(i) that is subject to the rate described in Subsection (4)(a)(ii);
(iii) adding together the figures calculated in Subsections (3)(a)(ii)(A) and (B); and
(iv) multiplying the figure calculated in Subsection (3)(a)(iii) by the taxable volume.
(b) The severance tax on natural gas shall be calculated as follows:
(i) dividing the taxable value by the taxable volume;
(ii)
(A) multiplying the rate described in Subsection (4)(b)(i) by the portion of the figure calculated in Subsection (3)(b)(i) that is subject to the rate described in Subsection (4)(b)(i); and
(B) multiplying the rate described in Subsection (4)(b)(ii) by the portion of the figure calculated in Subsection (3)(b)(i) that is subject to the rate described in Subsection (4)(b)(ii);
(iii) adding together the figures calculated in Subsections (3)(b)(ii)(A) and (B); and
(iv) multiplying the figure calculated in Subsection (3)(b)(iii) by the taxable volume.
(c) The severance tax on natural gas liquids shall be calculated by multiplying the taxable value of the natural gas liquids by the severance tax rate in Subsection (4)(c).
(4) Subject to Subsection (7):
(a) the severance tax rate for oil is as follows:
(i) 3% of the taxable value of the oil up to and including the first $13 per barrel for oil; and
(ii) 5% of the taxable value of the oil from $13.01 and above per barrel for oil;
(b) the severance tax rate for natural gas is as follows:
(i) 3% of the taxable value of the natural gas up to and including the first $1.50 per MCF for gas; and
(ii) 5% of the taxable value of the natural gas from $1.51 and above per MCF for gas; and
(c) the severance tax rate for natural gas liquids is 4% of the taxable value of the natural gas liquids.
(5) If oil or gas is shipped outside the state:
(a) the shipment constitutes a sale; and
(b) the oil or gas is subject to the tax imposed by this section.
(6)
(a) Except as provided in Subsection (6)(b), if the oil or gas is stockpiled, the tax is not imposed until the oil or gas is:
(i) sold;
(ii) transported; or
(iii) delivered.
(b) If oil or gas is stockpiled for more than two years, the oil or gas is subject to the tax imposed by this section.
(7) A 50% reduction in the tax rate is imposed upon the incremental production achieved from an enhanced recovery project.
(8) The taxes imposed by this section are:
(a) in addition to all other taxes provided by law; and
(b) delinquent, unless otherwise deferred, on June 1 following the calendar year when the oil or gas is:
(i) produced; and
(ii)
(A) saved;
(B) sold; or
(C) transported from the field.
(9) With respect to the tax imposed by this section on each owner of an interest in the production of oil or gas or in the proceeds of the production of oil or gas in the state, each owner is liable for the tax in proportion to the owner's interest in the production or in the proceeds of the production.
(10) The tax imposed by this section shall be reported and paid by each producer that takes oil or gas in kind pursuant to an agreement on behalf of the producer and on behalf of each owner entitled to participate in the oil or gas sold by the producer or transported by the producer from the field where the oil or gas is produced.
(11) Each producer shall deduct the tax imposed by this section from the amounts due to other owners for the production or the proceeds of the production.
(1)
(a) For purposes of the tax imposed under Section 59-5-102 and subject to Subsection (2), the value of oil or gas shall be determined at the first point closest to the well at which the fair market value for the oil or gas may be determined by:
(i) a sale pursuant to an arm's-length contract; or
(ii) for a sale other than a sale described in Subsection (1)(a)(i), comparison to other sales of oil or gas.
(b) For purposes of determining the fair market value of oil or gas under this Subsection (1), a person subject to a tax under Section 59-5-102 may deduct:
(i) all processing costs from the value of oil or gas, including processing costs attributable to the value of oil and gas that is exempt from taxation under Section 59-5-102; and
(ii) except as provided in Subsection (1)(c), all transportation costs from the value of oil or gas, including transportation costs attributable to the value of oil and gas that is exempt from taxation under Section 59-5-102.
(c) The deduction for transportation costs may not exceed 50% of the value of the oil or gas.
(2) Subsection (1)(a)(ii) applies to a sale of oil or gas between:
(a) a parent company and a subsidiary company;
(b) companies wholly owned or partially owned by a common parent company; or
(c) companies otherwise affiliated.
(1)
(a) Every producer engaged in the production of oil or gas from any well or wells in the state shall file with the commission, on or before June 1 of each year, on forms furnished by the commission, a statement containing the information required by Subsection (1)(b) relating to the oil or gas:
(i) produced; and
(ii)
(A) saved;
(B) sold; or
(C) transported from the field where the oil or gas was produced during the preceding calendar year.
(b) The statement required in Subsection (1)(a) shall include:
(i) the name, description, and location of:
(A) every well or wells; and
(B) every field in which the well or wells are located;
(ii) the number of barrels of oil, the cubic feet of gas, and quantity of other hydrocarbon substances produced, including the percentage of production from lands held in trust by the United States for any federally recognized Indian tribe or tribe members;
(iii) the value of the oil or gas; and
(iv) any other reasonable and necessary information required by the commission.
(2) The statements or reports required to be filed with the commission shall be signed and sworn to by the producer or a designee.
(3) Any willful false swearing as to the purported material facts set out in this report constitutes the crime of perjury and shall be punished as such under Title 76, Criminal Offenses.
(1) In case of any failure to make or file a return required by this chapter, the penalty provided in Section 59-1-401 and interest at the rate and in the manner prescribed in Section 59-1-402 shall be charged and added to the tax. The amount so added to any tax, whether as a penalty, interest, or both, shall be collected at the same time and in the same manner and as a part of the tax.
(2) An overpayment of a tax imposed by this chapter shall accrue interest at the rate and in the manner prescribed in Section 59-1-402.
(1) Except as provided in Subsections (2) and (3), the tax imposed by this part is due and payable on or before June 1 of the year next succeeding the calendar year when the oil or gas is:
(a)
(i) produced;
(ii) saved; and
(iii) sold; or
(b) transported from the field where produced.
(2)
(a) Notwithstanding Subsection (1), the commission may, for good cause shown upon a written application by the taxpayer, extend the time of payment of the whole or any part of the tax for a period not to exceed six months.
(b) If the commission allows an extension under Subsection (2)(a), interest at the rate and in the manner prescribed in Section 59-1-402 shall be charged and added to the amount of the tax allowed the extension.
(3)
(a) A taxpayer subject to this part whose total tax obligation for the current calendar year will be $3,000 or more shall pay the taxes assessed under this part in quarterly installments as provided in Subsections (3)(b) and (4).
(b) For purposes of Subsection (3)(a), each quarterly installment shall be based on the estimated gross value received by the taxpayer during the quarter preceding the date on which the installment is due.
(4) For purposes of Subsection (3), the quarterly installments are due as follows:
(a) for the quarter beginning on January 1 and ending on March 31, on or before June 1;
(b) for the quarter beginning on April 1 and ending on June 30, on or before September 1;
(c) for the quarter beginning on July 1 and ending on September 30, on or before December 1; and
(d) for the quarter beginning on October 1 and ending on December 31, on or before March 1 of the next year.
(5)
(a) Subject to Subsection (5)(b) and except as provided in Subsection (6), if the tax imposed by Section 59-5-102 is not paid when due or is underpaid, the taxpayer is subject to the penalty provided under Section 59-1-401.
(b) For purposes of Subsection (5)(a), an underpayment exists if less than 80% of the tax due for a quarter is paid.
(6) Notwithstanding Subsection (5)(a), the penalty for failure to pay a tax due or for underpayment of a tax may not be assessed if the taxpayer's total quarterly tax installment payments equal 25% or more of the tax reported and paid by the taxpayer for the preceding calendar year.
(7) The commission may not add interest to any quarterly installment subject to a penalty under this section.
(8) The commission may conduct audits to determine whether any tax is owed under this part.
(1) The severance tax imposed by this chapter, together with penalties and interest, is and shall remain a lien upon the owner's interest in the oil or gas well or rights in the well from which the oil or gas is extracted, until the tax is paid.
(2) In the case of an owner who has no interest in the oil or gas well, but only in the proceeds of production from it, the lien is upon the oil or gas production rights or royalty interests in the well.
If any person feels aggrieved because of the amount of the severance tax determined by the commission, the person may file a request for agency action with the commission within 30 days after notice is mailed to the person, requesting an adjudicative proceeding and the correction of the assessed tax.
Every decision of the commission shall be in writing and notice of the decision shall be mailed to the taxpayer within 10 days. All decisions become final upon the expiration of 30 days after notice has been mailed to the taxpayer, unless proceedings are taken within such time for a review in accordance with Title 63G, Chapter 4, Administrative Procedures Act, in which case it becomes final as specified in the Administrative Procedures Act.
(1) Before seeking judicial review, the taxpayer shall deposit with the commission the full amount of taxes, interest, and other charges audited and stated in the decision of the commission.
(2)
(a) If the party appealing executes an undertaking meeting the requirements of Subsection (2)(b), the party is not required to pay the taxes, interest, and other charges as a condition precedent to obtaining judicial review.
(b) The taxpayer shall file an undertaking with the commission in the amount and with the surety approved by the commission.
(c) The undertaking shall provide that, if the appeal is dismissed or the decision of the commission is affirmed, the party appealing will pay all costs and charges that may accrue against the party in the prosecution of the case.
(d) At the option of the party appealing, the undertaking may be in a sum sufficient to cover the taxes, interest, and other charges, audited or stated in the decision, plus the costs or charges that may accrue against the party appealing in the prosecution of the case.
(1)
(a) Except as provided in Subsections (1)(c) through (f), the commission shall assess the amount of taxes imposed under this part, and any penalties and interest, within six years after a taxpayer files a return.
(b) Except as provided in Subsections (1)(c) through (f), if the commission does not make an assessment under Subsection (1)(a) within six years, the commission may not commence a proceeding for the collection of the taxes after the expiration of the six-year period.
(c) Notwithstanding Subsections (1)(a) and (b), the commission may make an assessment or commence a proceeding to collect a tax at any time if a deficiency is due to:
(i) fraud; or
(ii) failure to file a return.
(d) Notwithstanding Subsections (1)(a) and (b), beginning on July 1, 1998, the commission may extend the period to make an assessment or to commence a proceeding to collect the tax under this part if:
(i) the six-year period under this Subsection (1) has not expired; and
(ii) the commission and the taxpayer sign a written agreement:
(A) authorizing the extension; and
(B) providing for the length of the extension.
(e) If the commission delays an audit at the request of a taxpayer, the commission may make an assessment as provided in Subsection (1)(f) if:
(i) the taxpayer subsequently refuses to agree to an extension request by the commission; and
(ii) the six-year period under this Subsection (1) expires before the commission completes the audit.
(f) An assessment under Subsection (1)(e) shall be:
(i) for the time period for which the commission could not make an assessment because of the expiration of the six-year period; and
(ii) in an amount equal to the difference between:
(A) the commission's estimate of the amount of taxes the taxpayer would have been assessed for the time period described in Subsection (1)(f)(i); and
(B) the amount of taxes the taxpayer actually paid for the time period described in Subsection (1)(f)(i).
(2)
(a) Except as provided in Subsection (2)(b), the commission may not make a credit or refund unless the taxpayer files a claim with the commission within six years of the date of overpayment.
(b) Notwithstanding Subsection (2)(a), beginning on July 1, 1998, the commission shall extend the period for a taxpayer to file a claim under Subsection (2)(a) if:
(i) the six-year period under Subsection (2)(a) has not expired; and
(ii) the commission and the taxpayer sign a written agreement:
(A) authorizing the extension; and
(B) providing for the length of the extension.
(1) As used in this section, "above-trend revenue" means the amount by which the actual revenue from the oil and gas severance tax deposited into the General Fund under Subsection (2) exceeds the long-term trend of oil and gas severance tax revenue to the General Fund as determined by the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and Budget.
(2) Except as provided in Section 51-9-305, 51-9-306, 51-9-1102, 59-5-116, 59-5-119, or 59-5-121, a tax imposed and collected under Section 59-5-102 shall be paid to the commission, promptly remitted to the state treasurer, and credited to the General Fund.
(3) The Division of Finance shall transfer above-trend revenue up to $20,000,000 from the General Fund into the Transportation Investment Fund each year beginning in the fiscal year beginning July 1, 2023, until the amount deposited into the Transportation Investment Fund totals $88,500,000.
(1) Except as provided in Subsection (2), there shall be deposited into the Uintah Basin Revitalization Fund created in Section 63N-24-602:
(a) for taxes imposed under this part, 33% of the taxes collected on oil, gas, or other hydrocarbon substances produced from a well:
(i) for which production began on or before June 30, 1995; and
(ii) attributable to interests:
(A) held in trust by the United States for the Tribe and the Tribe's members; or
(B) on lands identified in Pub. L. No. 440, 62 Stat. 72 (1948);
(b) for taxes imposed under this part, 80% of taxes collected on oil, gas, or other hydrocarbon substances produced from a well:
(i) for which production began on or after July 1, 1995; and
(ii) attributable to interests:
(A) held in trust by the United States for the Tribe and the Tribe's members; or
(B) on lands identified in Pub. L. No. 440, 62 Stat. 72 (1948); and
(c) for taxes imposed under this part, 80% of taxes collected on oil, gas, or other hydrocarbon substances produced from a well:
(i) for which production began on or after January 1, 2001; and
(ii) attributable to interests on lands conveyed to the tribe under the Ute-Moab Land Restoration Act, Pub. L. No. 106-398, Sec. 3303.
(2)
(a) The maximum amount deposited in the Uintah Basin Revitalization Fund may not exceed:
(i) $3,000,000 in fiscal year 2005-06;
(ii) $5,000,000 in fiscal year 2006-07;
(iii) $6,000,000 in fiscal years 2007-08 and 2008-09; and
(iv) for fiscal years beginning with fiscal year 2009-10, the amount determined by the commission as described in Subsection (2)(b).
(b)
(i) The commission shall increase or decrease the dollar amount described in Subsection (2)(a)(iii) by a percentage equal to the percentage difference between the consumer price index for the preceding calendar year and the consumer price index for calendar year 2008; and
(ii) after making an increase or decrease under Subsection (2)(b)(i), round the dollar amount to the nearest whole dollar.
(c) For purposes of this Subsection (2), "consumer price index" is as described in Section 1(f)(4), Internal Revenue Code, and defined in Section (1)(f)(5), Internal Revenue Code.
(d) Any amounts in excess of the maximum described in Subsection (2)(a) shall be credited as provided in Sections 51-9-305, 51-9-306, 51-9-1202, and 59-5-115.
(1) Except as provided in Subsection (2), there shall be deposited into the Navajo Revitalization Fund created in Section 63N-24-703 for taxes imposed under this part beginning on July 1, 1997:
(a) 33% of the taxes collected on oil, gas, or other hydrocarbon substances produced from a well:
(i) for which production began on or before June 30, 1996; and
(ii) attributable to interests in Utah held in trust by the United States for the Navajo Nation and the Navajo Nation's members; and
(b) 80% of the taxes collected on oil, gas, or other hydrocarbon substances produced from a well:
(i) for which production began on or after July 1, 1996; and
(ii) attributable to interests in Utah held in trust by the United States for the Navajo Nation and the Navajo Nation's members.
(2)
(a) The maximum amount deposited in the Navajo Revitalization Fund may not exceed:
(i) $2,000,000 in fiscal year 2006-07; and
(ii) $3,000,000 for fiscal years beginning with fiscal year 2007-08.
(b) Any amounts in excess of the maximum described in Subsection (2)(a) shall be credited as provided in Sections 51-9-305, 51-9-306, 51-9-1202, and 59-5-115.
Beginning on January 1, 2006, and ending on June 30, 2026, no severance tax required by this chapter is imposed on oil and gas produced, saved, sold, or transported if the oil or gas produced, saved, sold, or transported is derived from:
(1) coal-to-liquids technology;
(2) oil shale; or
(3) oil sands.
(1) As used in this section:
(a) "Base revenue year" means the fiscal year designated by the port authority under Subsection (3).
(b) "Incentive account" means the same as that term is defined in Section 11-58-208.
(c) "Incremental revenue" means the amount that is calculated by subtracting the net severance revenue for the base revenue year from the net severance revenue for the applicable incremental revenue year.
(d) "Incremental revenue year" means any of the first 10 consecutive fiscal years immediately following the base revenue year.
(e) "Net severance revenue" means the amount of severance tax revenue collected during a fiscal year under Section 59-5-102, after deducting the amount of severance tax revenue required to be distributed under Sections 51-9-305, 51-9-306, 59-5-116, and 59-5-119.
(f) "Port authority" means the Utah Inland Port Authority created in Section 11-58-201.
(2) Subject to Subsections (3) and (4), for each of the 10 consecutive fiscal years beginning the first incremental revenue year, if incremental revenue is greater than zero, the Division of Finance shall deposit incremental revenue into the incentive account.
(3)
(a) The port authority shall designate as the base revenue year the fiscal year that:
(i) begins on or after July 1, 2023; and
(ii) the port authority determines will precede the first fiscal year during which the effects of the aviation fuel incentive program under Section 11-58-208 on the amount of severance tax revenue under Section 59-5-102 are expected to begin to occur.
(b) No later than September 30 of the first incremental revenue year, the port authority shall provide written notification to the Division of Finance of the fiscal year that the port authority designates as the base revenue year.
(4)
(a) The Division of Finance may not deposit incremental revenue under Subsection (2) that exceeds $1,000,000 per fiscal year.
(b) The maximum cumulative amount of incremental revenue that the Division of Finance may deposit into the incentive account is $10,000,000.
(c) If the amount of incremental revenue for any incentive year is less than $1,000,000, the Division of Finance shall deposit into the incentive account the amount of incremental revenue available.
As used in this part:
(1)
(a) "Metalliferous minerals" includes any ore, metal, or other substance containing the following:
(i) aluminum;
(ii) antimony;
(iii) arsenic;
(iv) barium;
(v) beryllium;
(vi) bismuth;
(vii) boron;
(viii) cadmium;
(ix) calcium;
(x) cerium;
(xi) cesium;
(xii) chromium;
(xiii) cobalt;
(xiv) columbium;
(xv) copper;
(xvi) gallium;
(xvii) germanium;
(xviii) gold;
(xix) hafnium;
(xx) indium;
(xxi) iridium;
(xxii) iron;
(xxiii) lanthanum;
(xxiv) lead;
(xxv) lithium;
(xxvi) manganese;
(xxvii) mercury;
(xxviii) molybdenum;
(xxix) nickel;
(xxx) osmium;
(xxxi) palladium;
(xxxii) platinum;
(xxxiii) praseodymium;
(xxxiv) rare earth metals;
(xxxv) rhenium;
(xxxvi) rhodium;
(xxxvii) rubidium;
(xxxviii) ruthenium;
(xxxix) samarium;
(xl) scandium;
(xli) selenium;
(xlii) silicon;
(xliii) silver;
(xliv) sodium;
(xlv) strontium;
(xlvi) tantalum;
(xlvii) tellurium;
(xlviii) thallium;
(xlix) thorium;
(l) tin;
(li) titanium;
(lii) tungsten;
(liii) uranium;
(liv) vanadium;
(lv) yttrium;
(lvi) zinc; or
(lvii) zirconium.
(b) "Metalliferous minerals" does not include:
(i) chloride compounds or salts;
(ii) potash;
(iii) rock, sand, gravel, and stone products;
(iv) gypsum;
(v) sulfur or sulfuric acid;
(vi) gem stones;
(vii) ammonium nitrate;
(viii) carbon dioxide;
(ix) oil, gas, coal, and all carboniferous materials; or
(x) phosphate.
(2) "Mine" means an operation for extracting minerals and includes any deposit of valuable metalliferous minerals that are being extracted from a natural deposit, or a secondary source including tails, slag, waste dumps, or other similar secondary source, whether in solution or otherwise.
(3) "Mining" means the act, process, or work of extracting minerals from their natural occurring environment or from a mine, and transporting or moving those minerals to the point of processing, use, or sale. "Mining" includes the process of leaching minerals from their naturally occurring deposit.
(4) "Ore" means raw materials in their natural state or condition prior to beneficiation or processing, and includes mined raw materials extracted prior to further processing. "Ore" includes any metalliferous material whose metal content is less than 15% and does not include any material whose metal content is 15% or greater.
(1) A person engaged in the business of mining or extracting metalliferous minerals in this state shall pay to the state a severance tax equal to 2.6% of the taxable value of all metals or metalliferous minerals sold or otherwise disposed of.
(2) If the metals or metalliferous minerals are shipped outside the state, this constitutes a sale, and the finished metals or the recoverable units of finished metals from the metalliferous minerals shipped are subject to the severance tax. If the metals or metalliferous minerals are stockpiled, the tax is not applicable until they are sold or shipped out of state. For purposes of the tax imposed by this chapter, uranium concentrates shall be considered to be finished metals. The owner of the metals or metalliferous minerals that are stockpiled shall report to the commission annually, in a form acceptable to the commission, the amount of metalliferous minerals so stockpiled. Metals or metalliferous minerals that are stockpiled for more than two years, however, are subject to the severance tax.
(3) An annual exemption from the payment of the tax imposed by this chapter upon the first $50,000 in gross value of the metalliferous mineral is allowed to each mine.
(4) These taxes are in addition to all other taxes provided by law and are delinquent, unless otherwise deferred, on June 1 next succeeding the calendar year when the metalliferous mineral is produced and sold or delivered.
(5)
(a) As used in this Subsection (5):
(i) "Great Salt Lake element or mineral" means a metalliferous mineral, metal, ore, chloride compound, potash, or salt mined or extracted from the brines of the Great Salt Lake.
(ii) "Great Salt Lake elevation" means the same as that term is defined in Section 65A-17-101.
(iii) "Great Salt Lake extraction operator" means a person who is engaged in the business of mining or extracting Great Salt Lake elements or minerals or metalliferous compounds from the brine of the Great Salt Lake.
(iv) For purposes of each tax imposed under Subsection (5)(b), "incremental revenue" means the difference between the sum of the revenue collected for the fiscal year from each of the tax rates imposed under Subsection (5)(b) and the revenue collected for the fiscal year from the tax rate imposed under Subsection (1).
(v) "Metalliferous compound" means a metalliferous mineral or a chloride compound or salt containing a metalliferous mineral.
(b) Notwithstanding the exclusion for chloride compounds or salts from the definition of metalliferous minerals under Section 59-5-201 and in lieu of the severance tax imposed under Subsection (1), beginning with calendar year 2025, a Great Salt Lake extraction operator shall pay to the state a severance tax in accordance with the following:
(i) for a Great Salt Lake extraction operator that is not a party or a third-party beneficiary to a voluntary agreement for water rights with an approved beneficial use by a division as defined in Section 73-3-30, a severance tax equal to 7.8% of the taxable value of Great Salt Lake elements or minerals or metalliferous compounds sold or otherwise disposed of;
(ii) for a Great Salt Lake extraction operator that is not a party or a third-party beneficiary to a voluntary agreement for water rights with an approved beneficial use by a division as defined in Section 73-3-30, but does not use evaporative concentrations of Great Salt Lake brines in any stage of the extractive process, a severance tax equal to 2.6% of the taxable value of Great Salt Lake elements or minerals or metalliferous compounds sold or otherwise disposed of;
(iii) for a Great Salt Lake extraction operator that is a party or a third-party beneficiary to a voluntary agreement for water rights with an approved beneficial use by a division as defined in Section 73-3-30 or beginning with calendar year 2025, for a Great Salt Lake extraction operator that enters a voluntary agreement with the state relating to water rights owned by the state:
(A) a severance tax equal to 2.6% of the taxable value of Great Salt Lake elements or minerals sold or otherwise disposed of, if the Great Salt Lake elements or minerals are extracted during a calendar year when the Great Salt Lake elevation recorded in accordance with Section 65A-17-306 was at or above 4,198 feet in the prior calendar year; or
(B) a severance tax does not apply to the taxable value of Great Salt Lake elements or minerals sold or otherwise disposed of, if those Great Salt Lake elements or minerals are sold or otherwise disposed of in a calendar year when the Great Salt Lake elevation recorded in accordance with Section 65A-17-306 was below 4,198 feet in the prior calendar year; or
(iv) notwithstanding Subsection (5)(b)(iii), for a Great Salt Lake extraction operator that is a party or third-party beneficiary to a voluntary agreement for water rights with an approved beneficial use by a division as defined in Section 73-3-30, a severance tax equal to 2.6% of the taxable value of a metalliferous compound sold or otherwise disposed of under a royalty agreement issued under Subsection 65A-6-4(2)(d), entered into on or after May 1, 2024.
(c)
(i) Subject to Subsection (5)(c)(ii), the Division of Finance shall deposit the incremental revenue in accordance with Section 51-9-305.
(ii) The Division of Finance shall consider the incremental revenue required to be deposited under Subsection (5)(c)(i) to be the first revenue collected under this chapter for the fiscal year.
(iii) The Division of Finance shall deposit the incremental revenue that remains after making the deposit required by Subsection (5)(c)(i) into the Sovereign Lands Management Account created in Section 65A-5-1.
(d) This Subsection (5) may not be interpreted to:
(i) excuse a person from paying a severance tax in accordance with the other provisions of this part; or
(ii) void a mineral lease or royalty agreement.
(e) A person extracting metalliferous minerals, including a metalliferous compound, from the brine of the Great Salt Lake is subject to the payment of a royalty agreement under Section 65A-6-4 and the payment of a severance tax under this part.
(1) Except as provided in Subsection (3), the basis for computing the gross proceeds, prior to those deductions or adjustments specified in this chapter, in determining the taxable value of the metals, metalliferous minerals, or metalliferous compounds, as defined in Subsection 59-5-202(5), sold or otherwise disposed of, in the order of priority, is as follows:
(a) If the metals, metalliferous mineral products, or metalliferous compounds are actually sold, the value of those metals, metalliferous mineral products, or metalliferous compounds shall be the gross amount the producer receives from that sale, provided that the metals, metalliferous mineral products, or metalliferous compounds are sold under a bona fide contract of sale between unaffiliated parties. In the case of a sale of uranium concentrates, gross proceeds shall be the gross amount the producer receives from the sale of processed uranium concentrate or "yellowcake," provided that the uranium concentrate is sold under a bona fide contract of sale between unaffiliated parties.
(b)
(i) For purposes of a Great Salt Lake extraction operator, as defined in Section 59-5-202, if metals, metalliferous minerals, or metalliferous compounds are not sold, but are otherwise disposed of, the gross proceeds shall be the multiple of the recoverable units of finished or unfinished metals, or of the finished or unfinished metals contained in the metalliferous minerals or metalliferous compounds shipped, and the average daily price per unit of contained metals as quoted by an established authority for market prices of metals for the period during which the tax imposed by this chapter is due.
(ii) The established authority or authorities under this Subsection (1)(b) shall be designated by the commission by rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(c)
(i) If the metals, metalliferous mineral products, or metalliferous compounds are not actually sold but are shipped, transported, or delivered out of state, the gross proceeds shall be the multiple of the recoverable units of finished metals, or of the finished metals contained in the metalliferous minerals or metalliferous compounds shipped, and the average daily price per unit of contained metals as quoted by an established authority for market prices of metals for the period during which the tax imposed by this chapter is due.
(ii) The established authority or authorities shall be designated by the commission by rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(d) In the case of metals, metalliferous minerals, or metalliferous compounds not sold, but otherwise disposed of, for which there is no established authority for market prices of metals for the period during which the tax imposed by this chapter is due, gross proceeds is determined by allocating to the state the same proportion of the producer's total sales of metals, metalliferous minerals, or metalliferous compounds sold or otherwise disposed of as the producer's total Utah costs bear to the total costs associated with sale or disposal of the metal, metalliferous mineral, or metalliferous compound.
(e) In the event of a sale of metals, metalliferous minerals, or metalliferous compounds between affiliated companies which is not a bona fide sale because the value received is not proportionate to the fair market value of the metals, metalliferous minerals, metalliferous compounds or in the event that Subsection (1)(a), (b), (c), or (d) are not applicable, the commission shall determine the value of such metals, metalliferous minerals, or metalliferous compounds in an equitable manner by reference to an objective standard as specified in a rule adopted in accordance with the provisions of Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(2) For all metals except beryllium, the taxable value of the metalliferous mineral sold or otherwise disposed of is 30% of the gross proceeds received for the metals sold or otherwise disposed of by the producer of the metal.
(3) Notwithstanding Subsection (1) or (4), the taxable value of beryllium sold or otherwise disposed of by the producer of the beryllium is equal to 125% of the direct mining costs incurred in mining the beryllium.
(4) Except as provided in Subsection (3), if the metalliferous mineral sold or otherwise disposed of is sold or shipped out of state in the form of ore, then the taxable value is 80% of the gross proceeds.
(1) Every person engaged in the business of mining or extracting metalliferous minerals shall make and file with the commission, on or before June 1 of each year on forms furnished by the commission, a statement containing:
(a) the name, description, and location of the mine owned and operated by the person during the preceding calendar year;
(b) the number of tons of mineral mined during the preceding calendar year and the disposition of the mineral;
(c) the total amount received during the preceding calendar year from the sale of minerals; and
(d) such other reasonable and necessary information as the commission may require for the proper enforcement of this chapter as specified in a rule made under Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(2)
(a) The owner of the mine shall be responsible for the statement or report required by this section, but the principal lessee, contractor, or operator may, with the consent of the commission, report and pay the tax as agent for the owner.
(b) The owner shall be entitled to deduct and remit to the commission any tax chargeable upon the operations conducted by the lessees or other parties.
(3)
(a) The statements or reports required to be filed with the commission shall be signed and sworn to by the person required to file the statements or reports, by a partner if a partnership, or by the president, secretary, or managing officer, if a corporation.
(b) Any willful false swearing as to the purported material facts set out in this report constitutes the crime of perjury and shall be punished as such under Title 76, Criminal Offenses.
(1) In case of any failure to make or file a return required by this chapter, the penalty provided in Section 59-1-401 and interest at the rate and in the manner prescribed in Section 59-1-402 shall be charged and added to the tax. The amount so added to any tax, whether as a penalty, interest, or both, shall be collected at the same time and in the same manner and as a part of the tax.
(2) An overpayment of a tax imposed by this chapter shall accrue interest at the rate and in the manner prescribed in Section 59-1-402.
(1) The tax imposed by this chapter is due and payable on or before June 1 of the year next succeeding the calendar year when the mineral is produced and sold or delivered.
(2) The commission may, for good cause shown upon a written application by the taxpayer, extend the time of payment of the whole or any part of the tax for a period not to exceed six months. If an extension is granted, interest at the rate and in the manner prescribed in Section 59-1-402 shall be charged and added to the amount of the deferred payment of the tax.
(3) Every taxpayer subject to this chapter whose total tax obligation for the preceding calendar year was $3,000 or more shall pay the taxes assessed under this chapter in quarterly installments. Each installment shall be based on the estimated gross value received by the taxpayer during the quarter preceding the date on which the installment is due.
(4) The quarterly installments are due as follows:
(a) for January 1 through March 31, on or before June 1;
(b) for April 1 through June 30, on or before September 1;
(c) for July 1 through September 30, on or before December 1; and
(d) for October 1 through December 31, on or before March 1 of the next year.
(5)
(a) If the taxpayer fails to report and pay any tax when due, the taxpayer is subject to the penalties provided under Section 59-1-401, unless otherwise provided in Subsection (6).
(b) An underpayment exists if less than 80% of the tax due for a quarter is paid.
(6) The penalty for failure to pay the tax due or underpayment of tax may not be assessed if the taxpayer's quarterly tax installment payment equals 25% of the tax reported and paid by the taxpayer for the preceding taxable year.
(7) There shall be no interest added to any estimated tax payments subject to a penalty under this section.
(8) The commission may conduct audits to determine whether any tax is owed under this section.
(9) Subject to Subsection 65A-17-306(7), for purposes of a Great Salt Lake extraction operator under Subsection 59-5-202(5), the Division of Forestry, Fire, and State Lands shall provide the commission by January 15 of each year the information required by Section 65A-17-306, that the commission shall use to determine the amount due and payable on June 1 of the year next succeeding the calendar year.
The tax imposed by this chapter, together with penalties and interest, is and shall remain a lien upon the mine or mining claim from which the mineral is extracted, until the tax is paid. In the case of unpatented claims or leases on unpatented ground, the lien shall be upon the mining rights.
If any person feels aggrieved because of the amount of the tax determined by the commission, the person may file a request for agency action with the commission within 30 days after notice is mailed to the person, requesting an adjudicative proceeding and the correction of the assessed tax.
Every decision of the commission shall be in writing and notice of the decision shall be mailed to the taxpayer within 10 days. All decisions become final upon the expiration of 30 days after notice has been mailed to the taxpayer, unless proceedings are taken within such time for a review in accordance with Title 63G, Chapter 4, Administrative Procedures Act, in which case it becomes final as specified in the Administrative Procedures Act.
(1) Before seeking judicial review, the taxpayer shall deposit with the commission the full amount of taxes, interest, and other charges audited and stated in the decision of the commission.
(2)
(a) If the party appealing executes an undertaking meeting the requirements of Subsection (2)(b), the party is not required to pay the taxes, interest, and other charges as a condition precedent to obtaining judicial review.
(b) The undertaking shall be filed with the commission in the amount and with the surety approved by the commission.
(c) The undertaking shall provide that, if the appeal is dismissed or the decision of the commission is affirmed, the party appealing will pay all costs and charges that may accrue against the party in the prosecution of the case.
(d) At the option of the party appealing, the undertaking may be in a sum sufficient to cover the taxes, interest, and other charges, audited or stated in the decision, plus the costs or charges that may accrue against the party appealing in the prosecution of the case.
(1) Except as provided in Section 51-9-305, 51-9-306, or 51-9-1102, or Subsection 59-5-202(5), a tax imposed and collected under Section 59-5-202 shall be paid to the commission, promptly remitted to the state treasurer, and credited to the General Fund.
(2) For a fiscal year beginning on or after July 1, 2026, the Division of Finance shall transfer from the General Fund to the State Reinvestment Restricted Account created in Section 51-9-1102 the amount credited to the General Fund under Subsection (1) that exceeds $11,526,000.
As used in this part:
(1) "Division" means the Division of Oil, Gas, and Mining established under Title 40, Chapter 6, Board and Division of Oil, Gas, and Mining.
(2) "High cost infrastructure project" means the same as that term is defined in Section 79-6-602.
(3) "Infrastructure cost-burdened entity" means the same as that term is defined in Section 79-6-602.
(4) "Infrastructure-related revenue" means the same as that term is defined in Section 79-6-602.
(5) "Natural gas" means the same as that term is defined in Section 59-5-101.
(6) "Natural gas liquids" means the same as that term is defined in Section 59-5-101.
(7) "Office" means the Office of Energy Development created in Section 79-6-401.
(8) "Recompletion" means any downhole operation that is:
(a) conducted to reestablish the producibility or serviceability of a well in any geologic interval; and
(b) approved by the division as a recompletion.
(9) "Well" means the same as that term is defined in Section 59-5-101.
(10)
(a) "Workover" means any downhole operation that is:
(i) conducted to sustain, restore, or increase the producibility or serviceability of a well in the geologic intervals in which the well is currently completed; and
(ii) approved by the division as a workover.
(b) "Workover" does not include operations that are conducted primarily as routine maintenance or to replace worn or damaged equipment.
(1) A taxpayer that pays for all or part of the expenses of a recompletion or workover may claim a nonrefundable tax credit against taxes due under Section 59-5-102 equal to the amount stated on a tax credit certificate that the office issues to the taxpayer.
(2) The maximum tax credit per taxpayer per well in a calendar year is the lesser of:
(a) 20% of the taxpayer's payment of expenses of a well recompletion or workover during the calendar year; and
(b) $30,000.
(3) A taxpayer may carry forward a tax credit allowed under this section for the next three calendar years if the tax credit exceeds the taxpayer's tax liability under Section 59-5-102 for the calendar year in which the taxpayer claims the tax credit.
(4)
(a) To claim a tax credit, a taxpayer shall follow the procedures and requirements of this Subsection (4).
(b) The taxpayer shall prepare a summary of the taxpayer's expenses of a recompletion or workover during the calendar year that the taxpayer completed the recompletion or workover.
(c) An independent certified public accountant shall:
(i) review the summary from the taxpayer; and
(ii) provide a report on the accuracy and validity of the amount of expenses of a recompletion or workover that the taxpayer included in the summary, in accordance with the agreed upon procedures.
(d) The taxpayer shall submit the taxpayer's summary and the independent certified public accountant's report to the division to verify that the expenses certified by the independent certified public accountant are recompletion or workover expenses.
(e) The division shall return to the taxpayer:
(i) the taxpayer's summary;
(ii) the report by the independent certified public accountant; and
(iii) a report by the division that includes the amount of approved recompletion or workover expenses.
(f) The taxpayer shall apply to the office for a tax credit certificate to receive a written certification, on a form the commission approves, that includes:
(i) the amount of the taxpayer's payments of expenses of a recompletion or workover during the calendar year; and
(ii) the amount of the taxpayer's tax credit.
(g) A taxpayer that receives a tax credit certificate shall retain the tax credit certificate for the same time period that a person is required to keep books and records under Section 59-1-1406.
(5) The office shall submit to the commission an electronic list that includes:
(a) the name and identifying information of each taxpayer to which the office issues a tax credit certificate; and
(b) for each taxpayer, the amount of the tax credit listed on the tax credit certificate.
(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(a) the office may make rules to govern the application process for receiving a tax credit certificate; and
(b) the division shall make rules to establish the agreed upon procedures described in Subsection (4).
(1) A taxpayer may claim a tax credit against a severance tax owing on natural gas under Section 59-5-102 if:
(a) the taxpayer is required to pay a severance tax on natural gas under Section 59-5-102;
(b) the taxpayer owns or operates a plant in the state that converts natural gas to hydrogen fuel; and
(c) all of the natural gas for which the taxpayer owes a severance tax under Section 59-5-102 is used for the production in the state of hydrogen fuel for use in zero emission motor vehicles.
(2) The taxpayer may claim a tax credit equal to the lesser of:
(a) the amount of tax that the taxpayer owes under Section 59-5-102; and
(b) $5,000,000.
(3)
(a) To claim a tax credit, a taxpayer shall follow the procedures and requirements of this Subsection (3).
(b) The taxpayer shall request that the division verify that the taxpayer owns or operates a plant in this state:
(i) that converts natural gas to hydrogen fuel; and
(ii) at which all natural gas is converted to hydrogen fuel for use in zero emission motor vehicles.
(4) The division shall submit to the commission an electronic list that includes the name and identifying information of each taxpayer for which the division completed the verification described in Subsection (3).
(1) As used in this section:
(a) "Assigned tax credit certificate" means the same as that term is defined in Section 40-6-24.
(b) "Eligible claimant" means a person:
(i) that is a claimant as defined in Section 40-6-24 and obtains a tax credit certificate; or
(ii) to which a person described in Subsection (1)(b)(i) assigns a tax credit certificate and that obtains an assigned tax credit certificate in accordance with Section 40-6-24.
(c) "Tax credit certificate" means the same as that term is defined in Section 40-6-24.
(2) For a taxable year beginning on or after January 1, 2027, an eligible claimant may claim a nonrefundable tax credit against severance tax otherwise due under Part 2, Mining Severance Tax, in an amount equal to the amount stated on:
(a) the tax credit certificate for the taxable year for an eligible claimant described in Subsection (1)(b)(i); or
(b) the assigned tax credit certificate for the taxable year for an eligible claimant described in Subsection (1)(b)(ii).
(3) An eligible claimant may carry forward to the next 15 taxable years the amount of the eligible claimant's tax credit that exceeds the amount described in Subsection (2).
(1)
(a) Subject to Subsection (1)(b), an infrastructure cost-burdened entity may claim a nonrefundable tax credit against severance taxes due under Part 1, Oil and Gas Severance Tax, or Part 2, Mining Severance Tax, for development of a high cost infrastructure project.
(b) An infrastructure cost-burdened entity may not claim a tax credit under this section and under Section 59-7-619 or 59-10-1034 using the same tax credit certificate.
(2) The tax credit under this section is the amount listed as the tax credit amount on a tax credit certificate that the office issues under Title 79, Chapter 6, Part 6, High Cost Infrastructure Development Tax Credit Act, to the infrastructure cost-burdened entity for the taxable year.
(3) An infrastructure cost-burdened entity may carry forward a tax credit under this section for a period that does not exceed the next seven taxable years if the amount of the severance tax credit exceeds the infrastructure cost-burdened entity's tax liability under this chapter for that taxable year.
As used in this chapter:
(1) "Business entity" means a claimant that is a:
(a) C corporation;
(b) S corporation;
(c) general partnership;
(d) limited liability company;
(e) limited liability partnership;
(f) limited partnership; or
(g) business entity similar to Subsections (1)(c) through (f):
(i) with respect to which the business entity's income or losses are divided among and passed through to taxpayers; and
(ii) as defined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(2)
(a) Except as provided in Subsection (2)(b), "claimant" means a resident or nonresident person.
(b) "Claimant" does not include an estate or trust.
(3) "Estate" means a nonresident estate or a resident estate.
(4) "Minerals" means:
(a) metalliferous minerals as defined in Section 59-2-102;
(b) nonmetalliferous minerals as defined in Section 59-2-102; or
(c) a combination of Subsections (4)(a) and (b).
(5) "Producer" means a person that:
(a) produces or extracts minerals from deposits in this state; or
(b) is the first purchaser of minerals produced or extracted from deposits in this state.
(6) "Refundable tax credit" or "tax credit" means a tax credit that a claimant, estate, or trust may claim:
(a) as provided by statute; and
(b) regardless of whether the claimant, estate, or trust has a tax liability:
(i) for a tax imposed under:
(A) Chapter 7, Corporate Franchise and Income Taxes;
(B) Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act; or
(C) Chapter 10, Individual Income Tax Act; and
(ii) for the taxable year for which the claimant, estate, or trust claims the tax credit.
(7) "Taxable year" means the taxable year of a claimant, estate, or trust under:
(a) Chapter 7, Corporate Franchise and Income Taxes;
(b) Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act; or
(c) Chapter 10, Individual Income Tax Act.
(8) "Tax return" means a return required by:
(a) Chapter 7, Corporate Franchise and Income Taxes;
(b) Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act; or
(c) Chapter 10, Individual Income Tax Act.
(9) "Trust" means a nonresident trust or a resident trust.
(10) "Withholding return" means a return a producer is required to file under this chapter.
(1) Except as provided in Subsection (2), each producer shall deduct and withhold from each payment being made to any person in respect to production of minerals in this state, but not including that to which the producer is entitled, an amount equal to 5% of the amount which would have otherwise been payable to the person entitled to the payment.
(2) The obligation to deduct and withhold from payments as provided in Subsection (1) does not apply to those payments which are payable to:
(a) the United States, this state, or an agency or political subdivision of the United States or this state;
(b) an organization that is exempt from the taxes imposed by Chapter 7, Corporate Franchise and Income Taxes, in accordance with Subsection 59-7-102(1)(a);
(c) an Indian or Indian tribe if the amounts accruing are subject to the supervision of the United States or an agency of the United States; or
(d) a business entity that files an exemption certificate in accordance with Section 59-6-102.1.
(3) A claimant, estate, or trust that files a tax return with the commission may claim a refundable tax credit against the tax reflected on the tax return for the amount withheld by the producer under Subsection (1).
(1) For a taxable year, a business entity may file an exemption certificate claiming an exemption from the deduction and withholding requirements of this chapter if:
(a) for that taxable year, the business entity is required to file a tax return with the commission;
(b) for that taxable year, the business entity expects to claim a refund on a tax return of at least 75% of the amount that would otherwise be required to be deducted and withheld under this chapter; and
(c) regardless of whether the business entity sells or otherwise disposes of the business entity's interest in the production of minerals, the business entity consents to the jurisdiction of the commission to enforce:
(i) an amount required to be deducted and withheld under this chapter; or
(ii) a penalty imposed under this chapter.
(2) A business entity filing an exemption certificate in accordance with Subsection (1) shall file the exemption certificate:
(a) with the:
(i) producer; and
(ii) commission; and
(b) on a form prescribed by the commission.
(3)
(a) In addition to any other penalty provided by law, a business entity is subject to the penalty described in Subsection (3)(b) if the business entity:
(i) files an exemption certificate in accordance with this section; and
(ii) does not file a tax return with the commission for the taxable year for which the business entity files the exemption certificate described in Subsection (3)(a)(i).
(b) For purposes of Subsection (3)(a), the penalty is 100% of the amount that the producer would have deducted and withheld under this chapter for the taxable year had the business entity not filed an exemption certificate under this section for that taxable year.
(c) The commission shall collect the penalty described in Subsection (3)(b).
(4) If a business entity is subject to the penalty described in Subsection (3), the business entity may not file an exemption certificate under this section for five taxable years beginning with the taxable year that the business entity is subject to the penalty described in Subsection (3).
(5) In addition to any other penalty provided by law, a business entity is subject to a penalty of 5% of the amount that a producer would otherwise be required to deduct and withhold under this chapter for the taxable year if:
(a) the business entity files an exemption certificate under this section for a taxable year; and
(b) had the business entity not filed the exemption certificate under this section for the taxable year, the business entity:
(i) would have been allowed to claim a refund on a tax return for the taxable year in an amount less than 75% of the amount required to be deducted and withheld under this chapter for the taxable year; or
(ii) would not have been allowed to claim a refundable tax credit under Section 59-6-102 for the taxable year.
(1)
(a) Subject to Subsection (1)(b), a producer required to deduct and withhold an amount under this chapter shall file a withholding return with the commission:
(i) for the amounts required to be deducted and withheld under this chapter during the preceding calendar quarter;
(ii) in an electronic format approved by the commission; and
(iii) that contains any information the commission requires.
(b) A withholding return described in Subsection (1)(a) is due on or before the last day of April, July, October, and January.
(c)
(i) Each producer shall file an annual return containing the information that the commission requires.
(ii) The producer shall file the annual return:
(A) in an electronic format the commission approves; and
(B) on or before January 31 of the year following that for which the return is made.
(2)
(a) If a producer receives an exemption certificate filed in accordance with Section 59-6-102.1 from a business entity, the producer shall file a withholding return with the commission:
(i) in a format the commission approves; and
(ii) on or before the January 31 following the last day of the taxable year for which the producer receives the exemption certificate from the business entity.
(b) The withholding return required by Subsection (2)(a) shall contain:
(i) the name and address of the business entity that files the exemption certificate in accordance with Section 59-6-102.1;
(ii) the amount of the payment made by the producer to the business entity that would have been subject to deduction and withholding under this chapter had the business entity not filed the exemption certificate in accordance with Section 59-6-102.1;
(iii) the name or description of the property from which the production of minerals occurs that would have resulted in a payment subject to deduction and withholding under this chapter had the business entity not filed the exemption certificate in accordance with Section 59-6-102.1; and
(iv) the interest of the business entity in the production of minerals that would have resulted in a payment subject to deduction and withholding under this chapter had the business entity not filed the exemption certificate in accordance with Section 59-6-102.1.
(3)
(a) Subject to Subsections (3)(b) and (c), the commission shall require a producer that issues the following forms for a taxable year to file the forms with the commission in an electronic format approved by the commission:
(i) a federal Form 1099 filed for purposes of withholding under this section; or
(ii) a federal form substantially similar to a form described in Subsection (3)(a)(i) if designated by the commission in accordance with Subsection (3)(d).
(b) A producer that is required to file a form with the commission in accordance with Subsection (3)(a) shall file the form on or before January 31.
(c) A producer that is required to file a form with the commission in accordance with Subsection (3)(a) shall provide:
(i) accurate information on the form; and
(ii) all of the information required by the Internal Revenue Service to be contained on the form.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for purposes of Subsection (3)(a), the commission may designate a federal form as being substantially similar to a form described in Subsection (3)(a)(i) if:
(i) for purposes of federal individual income taxes, a different federal form contains substantially similar information to a form described in Subsection (3)(a)(i); or
(ii) the Internal Revenue Service replaces a form described in Subsection (3)(a)(i) with a different federal form.
(1) To the extent the following are consistent with this chapter, the commission shall administer this chapter in accordance with:
(a) Chapter 1, General Taxation Policies; and
(b) Chapter 10, Part 4, Withholding of Tax.
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules necessary to effectuate the purposes of this chapter.
As used in this chapter:
(1) "Adjusted income" means unadjusted income as modified by Sections 59-7-105 and 59-7-106.
(2)
(a) "Affiliated group" means one or more chains of corporations that are connected through stock ownership with a common parent corporation that meet the following requirements:
(i) at least 80% of the stock of each of the corporations in the group, excluding the common parent corporation, is owned by one or more of the other corporations in the group; and
(ii) the common parent directly owns at least 80% of the stock of at least one of the corporations in the group.
(b) "Affiliated group" does not include corporations that are qualified to do business but are not otherwise doing business in this state.
(c) For purposes of this Subsection (2), "stock" does not include nonvoting stock which is limited and preferred as to dividends.
(3) "Apportionable income" means adjusted income less nonbusiness income net of related expenses, to the extent included in adjusted income.
(4) "Apportioned income" means apportionable income multiplied by the apportionment fraction as determined in Section 59-7-311.
(5) "Business income" means the same as that term is defined in Section 59-7-302.
(6) "Captive insurance company" means the same as that term is defined in Section 31A-1-301.
(7)
(a) "Captive real estate investment trust" means a real estate investment trust if:
(i) the shares or beneficial interests of the real estate investment trust are not regularly traded on an established securities market; and
(ii) more than 50% of the voting power or value of the shares or beneficial interests of the real estate investment trust are directly, indirectly, or constructively:
(A) owned by a controlling entity of the real estate investment trust; or
(B) controlled by a controlling entity of the real estate investment trust.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining "established securities market."
(8)
(a) "Common ownership" means the direct or indirect control or ownership of more than 50% of the outstanding voting stock of:
(i) a parent-subsidiary controlled group as defined in Section 1563, Internal Revenue Code, except that 50% shall be substituted for 80%;
(ii) a brother-sister controlled group as defined in Section 1563, Internal Revenue Code; or
(iii) three or more corporations each of which is a member of a group of corporations described in Subsection (2)(a)(i) or (ii), and one of which is:
(A) a common parent corporation included in a group of corporations described in Subsection (2)(a)(i); and
(B) included in a group of corporations described in Subsection (2)(a)(ii).
(b) Ownership of outstanding voting stock shall be determined by Section 1563, Internal Revenue Code.
(9)
(a) "Controlling entity of a captive real estate investment trust" means an entity that:
(i) is treated as an association taxable as a corporation under the Internal Revenue Code;
(ii) is not exempt from federal income taxation under Section 501(a), Internal Revenue Code; and
(iii) directly, indirectly, or constructively holds more than 50% of:
(A) the voting power of a captive real estate investment trust; or
(B) the value of the shares or beneficial interests of a captive real estate investment trust.
(b) "Controlling entity of a captive real estate investment trust" does not include:
(i) a real estate investment trust, except for a captive real estate investment trust;
(ii) a qualified real estate investment subsidiary described in Section 856(i), Internal Revenue Code, except for a qualified real estate investment trust subsidiary of a captive real estate investment trust; or
(iii) a foreign real estate investment trust.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining "established securities market."
(10) "Corporate return" or "return" includes a combined report.
(11) "Corporation" includes:
(a) entities defined as corporations under Sections 7701(a) and 7704, Internal Revenue Code; and
(b) other organizations that are taxed as corporations for federal income tax purposes under the Internal Revenue Code.
(12) "COVID-19" means:
(a) the severe acute respiratory syndrome coronavirus 2; or
(b) the disease caused by severe acute respiratory syndrome coronavirus 2.
(13) "Dividend" means any distribution, including money or other type of property, made by a corporation to its shareholders out of its earnings or profits accumulated after December 31, 1930.
(14)
(a) "Doing business" includes any transaction in the course of business by a domestic corporation or by a foreign corporation qualified to do or doing business in this state.
(b) Except as provided in Subsection (14)(c) or Subsection 59-7-102(3), "doing business" includes:
(i) the right to do business through incorporation or qualification;
(ii) owning, renting, or leasing of real or personal property within this state;
(iii) the participation in joint ventures, working and operating agreements, the performance of which takes place in this state;
(iv) selling or performing a service in this state; and
(v) earning income from the use of intangible property in this state.
(c) "Doing business" does not include the business activity of a corporation if the corporation's only business activity within the state is the solicitation of orders for sales of tangible personal property that are protected under 15 U.S.C. Secs. 381 through 384.
(15) "Domestic corporation" means a corporation that is incorporated or organized under the laws of this state.
(16) "Exercising a corporate franchise" does not include the business activity of a corporation if the corporation's only business activity within the state is the solicitation of orders for sales of tangible personal property that are protected under 15 U.S.C. Secs. 381 through 384.
(17)
(a) "Farmers' cooperative" means an association, corporation, or other organization that is:
(i)
(A) an association, corporation, or other organization of farmers or fruit growers; or
(B) an association, corporation, or other organization that is similar to an association, corporation, or organization described in Subsection (17)(a)(i)(A); and
(ii) organized and operated on a cooperative basis to:
(A)
(I) market the products of members of the cooperative or the products of other producers; and
(II) return to the members of the cooperative or other producers the proceeds of sales less necessary marketing expenses on the basis of the quantity of the products of a member or producer or the value of the products of a member or producer; or
(B)
(I) purchase supplies and equipment for the use of members of the cooperative or other persons; and
(II) turn over the supplies and equipment described in Subsection (17)(a)(ii)(B)(I) at actual costs plus necessary expenses to the members of the cooperative or other persons.
(b)
(i) Subject to Subsection (17)(b)(ii), for purposes of this Subsection (17), the commission by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall define:
(A) the terms "member" and "producer"; and
(B) what constitutes an association, corporation, or other organization that is similar to an association, corporation, or organization described in Subsection (17)(a)(i)(A).
(ii) The rules made under this Subsection (17)(b) shall be consistent with the filing requirements under federal law for a farmers' cooperative.
(18) "Foreign corporation" means a corporation that is not incorporated or organized under the laws of this state.
(19)
(a) "Foreign operating company" means a corporation that:
(i) is incorporated in the United States;
(ii) conducts at least 80% of the corporation's business activity, as determined under Section 59-7-401, outside the United States; and
(iii) as calculated in accordance with Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions, has:
(A) at least $1,000,000 of payroll located outside the United States; and
(B) at least $2,000,000 of property located outside the United States.
(b) "Foreign operating company" does not include a corporation that qualifies for the Puerto Rico and possession tax credit as provided in Section 936, Internal Revenue Code.
(20)
(a) "Foreign real estate investment trust" means:
(i) a business entity organized outside the laws of the United States if:
(A) at least 75% of the business entity's total asset value at the close of the business entity's taxable year is represented by:
(I) real estate assets, as defined in Section 856(c)(5)(B), Internal Revenue Code;
(II) cash or cash equivalents; or
(III) one or more securities issued or guaranteed by the United States;
(B) the business entity is:
(I) not subject to income taxation:
(Aa) on amounts distributed to the business entity's beneficial owners; and
(Bb) in the jurisdiction in which the business entity is organized; or
(II) exempt from income taxation on an entity level in the jurisdiction in which the business entity is organized;
(C) the business entity distributes at least 85% of the business entity's taxable income, as computed in the jurisdiction in which the business entity is organized, to the holders of the business entity's:
(I) shares or beneficial interests; and
(II) on an annual basis;
(D)
(I) not more than 10% of the following is held directly, indirectly, or constructively by a single person:
(Aa) the voting power of the business entity; or
(Bb) the value of the shares or beneficial interests of the business entity; or
(II) the shares of the business entity are regularly traded on an established securities market; and
(E) the business entity is organized in a country that has a tax treaty with the United States; or
(ii) a listed Australian property trust.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining:
(i) "cash or cash equivalents";
(ii) "established securities market"; or
(iii) "listed Australian property trust."
(21) "Income" includes losses.
(22) "Internal Revenue Code" means Title 26 of the United States Code as effective during the year in which Utah taxable income is determined.
(23) "Nonbusiness income" means the same as that term is defined in Section 59-7-302.
(24) "Real estate investment trust" means the same as that term is defined in Section 856, Internal Revenue Code.
(25) "Related expenses" means:
(a) expenses directly attributable to nonbusiness income; and
(b) the portion of interest or other expense indirectly attributable to both nonbusiness and business income that bears the same ratio to the aggregate amount of such interest or other expense, determined without regard to this Subsection (25), as the average amount of the asset producing the nonbusiness income bears to the average amount of all assets of the taxpayer within the taxable year.
(26) "S corporation" means an S corporation as defined in Section 1361, Internal Revenue Code.
(27) "Safe harbor lease" means a lease that qualified as a safe harbor lease under Section 168, Internal Revenue Code.
(28) "Special deduction" includes a deduction under:
(a) Section 250, Internal Revenue Code; or
(b) Section 965(c), Internal Revenue Code.
(29) "State of the United States" includes any of the 50 states or the District of Columbia.
(30)
(a) "Taxable year" means the calendar year or the fiscal year ending during such calendar year upon the basis of which the adjusted income is computed.
(b) In the case of a return made for a fractional part of a year under this chapter or under rules prescribed by the commission, "taxable year" includes the period for which such return is made.
(31) "Taxpayer" means any corporation subject to the tax imposed by this chapter.
(32) "Threshold level of business activity" means business activity in the United States equal to or greater than 20% of the corporation's total business activity as determined under Section 59-7-401.
(33)
(a) "Unadjusted income" means federal taxable income as determined on a separate return basis before intercompany eliminations as determined by the Internal Revenue Code, before the net operating loss deduction and special deductions.
(b) "Unadjusted income" includes deferred foreign income described in Section 965(a), Internal Revenue Code.
(c) "Unadjusted income" does not include income received from:
(i) a loan forgiven in accordance with 15 U.S.C. Sec. 636(a)(36), to the extent that a deduction for the expenditures paid with the loan is disallowed; or
(ii) a similar paycheck protection loan that is:
(A) authorized by the federal government;
(B) provided in response to COVID-19;
(C) forgiven if the borrower meets the expenditure requirements; and
(D) exempt from federal income tax, to the extent that a deduction for the expenditures paid with the loan is disallowed.
(34)
(a) "Unitary group" means a group of corporations that:
(i) are related through common ownership; and
(ii) by a preponderance of the evidence as determined by a court of competent jurisdiction or the commission, are economically interdependent with one another as demonstrated by the following factors:
(A) centralized management;
(B) functional integration; and
(C) economies of scale.
(b) "Unitary group" includes a captive real estate investment trust.
(c) "Unitary group" does not include an S corporation.
(35) "United States" includes the 50 states and the District of Columbia.
(36) "Utah net loss" means the current year Utah taxable income before Utah net loss deduction, if determined to be less than zero.
(37) "Utah net loss deduction" means the amount of Utah net losses from other taxable years that a taxpayer may carry forward to the current taxable year in accordance with Section 59-7-110.
(38)
(a) "Utah taxable income" means Utah taxable income before net loss deduction less Utah net loss deduction.
(b) "Utah taxable income" includes income from tangible or intangible property located or having situs in this state, regardless of whether carried on in intrastate, interstate, or foreign commerce.
(39) "Utah taxable income before net loss deduction" means apportioned income plus nonbusiness income allocable to Utah net of related expenses.
(40)
(a) "Water's edge combined report" means a report combining the income and activities of:
(i) all members of a unitary group that are:
(A) corporations organized or incorporated in the United States, including those corporations qualifying for the Puerto Rico and Possession Tax Credit as provided in Section 936, Internal Revenue Code, in accordance with Subsection (40)(b); and
(B) corporations organized or incorporated outside of the United States meeting the threshold level of business activity; and
(ii) an affiliated group electing to file a water's edge combined report under Subsection 59-7-402(2).
(b) There is a rebuttable presumption that a corporation which qualifies for the Puerto Rico and possession tax credit provided in Section 936, Internal Revenue Code, is part of a unitary group.
(41) "Worldwide combined report" means the combination of the income and activities of all members of a unitary group irrespective of the country in which the corporations are incorporated or conduct business activity.
(1) Except as provided in this section, the following are exempt from a tax under this chapter:
(a) an organization exempt under Section 501, Internal Revenue Code;
(b) an organization exempt under Section 528, Internal Revenue Code;
(c) an insurance company that is subject to taxation on the insurance company's premiums under Chapter 9, Taxation of Admitted Insurers, regardless of whether the insurance company has a tax liability under that chapter;
(d) a local building authority as defined in Section 17D-2-102;
(e) a farmers' cooperative;
(f) a public agency, as defined in Section 11-13-103, with respect to or as a result of an ownership interest in:
(i) a project, as defined in Section 11-13-103; or
(ii) facilities providing additional project capacity, as defined in Section 11-13-103;
(g) an insurance company that engages in a transaction that is subject to taxation under Section 31A-3-301 or 31A-3-302, regardless of whether the insurance company has a tax liability under that section; or
(h) a captive insurance company that pays a fee under Section 31A-3-304.
(2) A corporation is exempt from a tax under this chapter:
(a) if the corporation is an out-of-state business as defined in Section 53-2a-1202; and
(b) for income earned:
(i) during a disaster period as defined in Section 53-2a-1202; and
(ii) for the purpose of responding to a declared state disaster or emergency as defined in Section 53-2a-1202.
(3) Notwithstanding any other provision in this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, a person not otherwise subject to the tax imposed by this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, is not subject to a tax imposed by Section 59-7-104, 59-7-201, 59-7-701, or 59-8-104, because of:
(a) that person's ownership of tangible personal property located at the premises of a printer's facility in this state with which the person has contracted for printing; or
(b) the activities of the person's employees or agents who are:
(i) located solely at the premises of a printer's facility; and
(ii) performing services:
(A) related to:
(I) quality control;
(II) distribution; or
(III) printing services; and
(B) performed by the printer's facility in this state with which the person has contracted for printing.
(4) Notwithstanding Subsection (1), an organization, company, authority, farmers' cooperative, or public agency exempt from this chapter under Subsection (1) is subject to Part 8, Unrelated Business Income, to the extent provided in Part 8, Unrelated Business Income.
(5) Notwithstanding Subsection (1)(b), to the extent the income of an organization described in Subsection (1)(b) is taxable for federal tax purposes under Section 528, Internal Revenue Code, the organization's income is also taxable under this chapter.
Unless otherwise provided in this chapter, receivers, trustees in bankruptcy, and assignees for creditors required to make returns under this chapter shall be subject to the provisions of this chapter.
(1) Each domestic and foreign corporation, except a corporation that is exempt under Section 59-7-102, shall pay an annual tax to the state based on the corporation's Utah taxable income for the taxable year for the privilege of exercising the corporation's corporate franchise or for the privilege of doing business in the state.
(2) The tax shall be 4.45% of a corporation's Utah taxable income.
(3) The minimum tax a corporation shall pay under this chapter is $100.
In computing adjusted income the following amounts shall be added to unadjusted income:
(1) interest from bonds, notes, and other evidences of indebtedness issued by any state of the United States, including any agency and instrumentality of a state of the United States;
(2) the amount of any deduction taken on a corporation's federal return for taxes paid by a corporation:
(a) to Utah for taxes imposed by this chapter; and
(b) to another state of the United States, a foreign country, a United States possession, or the Commonwealth of Puerto Rico for taxes imposed for the privilege of doing business, or exercising its corporate franchise, including income, franchise, corporate stock and business and occupation taxes;
(3) the safe harbor lease adjustment required under Subsections 59-7-111(1)(a) and (2)(a);
(4) capital losses that have been deducted on a Utah corporate return in previous years;
(5) any deduction on the federal return that has been previously deducted on the Utah return;
(6) charitable contributions, to the extent deducted on the federal return when determining federal taxable income;
(7) the amount of gain or loss determined under Section 59-7-114 relating to a target corporation under Section 338, Internal Revenue Code, unless such gain or loss has already been included in the unadjusted income of the target corporation;
(8) the amount of gain or loss determined under Section 59-7-115 relating to corporations treated for federal purposes as having disposed of its assets under Section 336(e), Internal Revenue Code, unless such gain or loss has already been included in the unadjusted income of the target corporation;
(9) adjustments to gains, losses, depreciation expense, amortization expense, and similar items due to a difference between basis for federal purposes and basis as computed under Section 59-7-107;
(10) the amount withdrawn under Title 53H, Chapter 10, Utah Education Savings, from the account of a corporation that is an account owner as defined in Section 53H-10-101, for the taxable year for which the amount is withdrawn, if that amount withdrawn from the account of the corporation that is the account owner:
(a) is not expended for:
(i) higher education costs as defined in Section 53H-10-201; or
(ii) a payment or distribution that qualifies as an exception to the additional tax for distributions not used for educational expenses provided in Sections 529(c) and 530(d), Internal Revenue Code; and
(b) is subtracted by the corporation:
(i) that is the account owner; and
(ii) in accordance with Subsection 59-7-106(1)(r);
(11) the amount of the deduction for dividends paid, as defined in Section 561, Internal Revenue Code, that is allowed under Section 857(b)(2)(B), Internal Revenue Code, in computing the taxable income of a captive real estate investment trust, if that captive real estate investment trust is subject to federal income taxation; and
(12) any deduction on a return filed under this chapter for a royalty or other expense that a corporation pays to an entity related by common ownership for the use of an intangible asset where the intangible asset is owned by the entity related by common ownership unless the corporation can demonstrate to the satisfaction of the commission or a court on judicial review in accordance with Section 59-1-602 or Title 63G, Chapter 4, Part 4, Judicial Review, that:
(a) for the same taxable year, the entity related by common ownership is subject to income taxes on the royalty or other expense:
(i) under this chapter;
(ii) under the laws of another state; or
(iii) by a foreign government that has in force an income tax treaty with the United States; or
(b) if Subsection (12)(a) does not apply, the corporation paying the royalty or other expenses never owned the intangible asset.
(1) In computing adjusted income, the following amounts shall be subtracted from unadjusted income:
(a) the foreign dividend gross-up included in gross income for federal income tax purposes under Section 78, Internal Revenue Code;
(b) subject to Subsection (2), the net capital loss, as defined for federal purposes, if the taxpayer elects to deduct the net capital loss on the return filed under this chapter for the taxable year for which the net capital loss is incurred;
(c) the decrease in salary expense deduction for federal income tax purposes due to claiming the federal work opportunity credit under Section 51, Internal Revenue Code;
(d) the decrease in qualified research and basic research expense deduction for federal income tax purposes due to claiming the federal credit for increasing research activities under Section 41, Internal Revenue Code;
(e) the decrease in qualified clinical testing expense deduction for federal income tax purposes due to claiming the federal credit for clinical testing expenses for certain drugs for rare diseases or conditions under Section 45C, Internal Revenue Code;
(f) any decrease in any expense deduction for federal income tax purposes due to claiming any other federal credit;
(g) the safe harbor lease adjustment required under Subsections 59-7-111(1)(b) and (2)(b);
(h) any income on the federal corporation income tax return that has been previously taxed by Utah;
(i) an amount included in federal taxable income that is due to a refund of a tax, including a franchise tax, an income tax, a corporate stock and business tax, or an occupation tax:
(i) if that tax is imposed for the privilege of:
(A) doing business; or
(B) exercising a corporate franchise;
(ii) if that tax is paid by the corporation to:
(A) Utah;
(B) another state of the United States;
(C) a foreign country;
(D) a United States possession; or
(E) the Commonwealth of Puerto Rico; and
(iii) to the extent that tax was added to unadjusted income under Section 59-7-105;
(j) a charitable contribution, to the extent the charitable contribution is allowed as a subtraction under Section 59-7-109;
(k) subject to Subsection (3), 50% of a dividend considered to be received or received from a subsidiary that:
(i) is a member of the unitary group;
(ii) is organized or incorporated outside of the United States; and
(iii) is not included in a combined report under Section 59-7-402 or 59-7-403;
(l) subject to Subsection (4) and Section 59-7-401, 50% of the adjusted income of a foreign operating company;
(m) the amount of gain or loss that is included in unadjusted income but not recognized for federal purposes on stock sold or exchanged by a member of a selling consolidated group as defined in Section 338, Internal Revenue Code, if an election has been made in accordance with Section 338(h)(10), Internal Revenue Code;
(n) the amount of gain or loss that is included in unadjusted income but not recognized for federal purposes on stock sold, exchanged, or distributed by a corporation in accordance with Section 336(e), Internal Revenue Code, if an election under Section 336(e), Internal Revenue Code, has been made for federal purposes;
(o) subject to Subsection (5), an adjustment to the following due to a difference between basis for federal purposes and basis as computed under Section 59-7-107:
(i) an amortization expense;
(ii) a depreciation expense;
(iii) a gain;
(iv) a loss; or
(v) an item similar to Subsections (1)(o)(i) through (iv);
(p) an interest expense that is not deducted on a federal corporation income tax return under Section 265(b) or 291(e), Internal Revenue Code;
(q) 100% of dividends received from a subsidiary that is an insurance company if that subsidiary that is an insurance company is:
(i) exempt from this chapter under Subsection 59-7-102(1)(c); and
(ii) under common ownership;
(r) subject to Subsection 59-7-105(10), for a corporation that is an account owner as defined in Section 53H-10-101, the amount of a qualified investment as defined in Section 53H-10-201:
(i) that the corporation or a person other than the corporation makes into an account owned by the corporation during the taxable year;
(ii) to the extent that neither the corporation nor the person other than the corporation described in Subsection (1)(r)(i) deducts the qualified investment on a federal income tax return; and
(iii) to the extent the qualified investment does not exceed the maximum amount of the qualified investment that may be subtracted from unadjusted income for a taxable year in accordance with Subsection 53H-10-205(1);
(s) for purposes of income included in a combined report under Part 4, Combined Reporting, the entire amount of the dividends a member of a unitary group receives or is considered to receive from a captive real estate investment trust;
(t) the increase in income for federal income tax purposes due to claiming a:
(i) qualified tax credit bond credit under Section 54A, Internal Revenue Code; or
(ii) qualified zone academy bond under Section 1397E, Internal Revenue Code;
(u) for a taxable year beginning on or after January 1, 2019, but beginning on or before December 31, 2019, only:
(i) the amount of any FDIC premium paid or incurred by the taxpayer that is disallowed as a deduction for federal income tax purposes under Section 162(r), Internal Revenue Code, on the taxpayer's 2018 federal income tax return; plus
(ii) the amount of any FDIC premium paid or incurred by the taxpayer that is disallowed as a deduction for federal income tax purposes under Section 162(r), Internal Revenue Code, for the taxable year; and
(v) for a taxable year beginning on or after January 1, 2020, the amount of any FDIC premium paid or incurred by the taxpayer that is disallowed as a deduction for federal income tax purposes under Section 162(r), Internal Revenue Code, for the taxable year.
(2) For purposes of Subsection (1)(b):
(a) the subtraction shall be made by claiming the subtraction on a return filed:
(i) under this chapter for the taxable year for which the net capital loss is incurred; and
(ii) by the due date of the return, including extensions; and
(b) a net capital loss for a taxable year shall be:
(i) subtracted for the taxable year for which the net capital loss is incurred; or
(ii) carried forward as provided in Sections 1212(a)(1)(B) and (C), Internal Revenue Code.
(3)
(a) For purposes of calculating the subtraction provided for in Subsection (1)(k), a taxpayer shall first subtract from a dividend considered to be received or received an expense directly attributable to that dividend.
(b) For purposes of Subsection (3)(a), the amount of an interest expense that is considered to be directly attributable to a dividend is calculated by multiplying the interest expense by a fraction:
(i) the numerator of which is the taxpayer's average investment in the dividend paying subsidiaries; and
(ii) the denominator of which is the taxpayer's average total investment in assets.
(c)
(i) For purposes of calculating the subtraction allowed by Subsection (1)(k), in determining income apportionable to this state, a portion of the factors of a foreign subsidiary that has dividends that are partially subtracted under Subsection (1)(k) shall be included in the combined report factors as provided in this Subsection (3)(c).
(ii) For purposes of Subsection (3)(c)(i), the portion of the factors of a foreign subsidiary that has dividends that are partially subtracted under Subsection (1)(k) that shall be included in the combined report factors is calculated by multiplying each factor of the foreign subsidiary by a fraction:
(A) not to exceed 100%; and
(B)
(I) the numerator of which is the amount of the dividend paid by the foreign subsidiary that is included in adjusted income; and
(II) the denominator of which is the current year earnings and profits of the foreign subsidiary as determined under the Internal Revenue Code.
(d) A dividend described in Subsection (1)(k) includes amounts included in federal taxable income under Section 965(a), Internal Revenue Code and amounts included in federal taxable income under Section 951A, Internal Revenue Code.
(4)
(a) For purposes of Subsection (1)(l), a taxpayer may not make a subtraction under Subsection (1)(l):
(i) if the taxpayer elects to file a worldwide combined report as provided in Section 59-7-403; or
(ii) for the following:
(A) income generated from intangible property; or
(B) a capital gain, dividend, interest, rent, royalty, or other similar item that is generated from an asset held for investment and not from a regular business trading activity.
(b) In calculating the subtraction provided for in Subsection (1)(l), a foreign operating company:
(i) may not subtract an amount provided for in Subsection (1)(k) or (l); and
(ii) prior to determining the subtraction under Subsection (1)(l), shall eliminate a transaction that occurs between members of a unitary group.
(c) For purposes of the subtraction provided for in Subsection (1)(l), in determining income apportionable to this state, the factors for a foreign operating company shall be included in the combined report factors in the same percentages as the foreign operating company's adjusted income is included in the combined adjusted income.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define what constitutes:
(i) income generated from intangible property; or
(ii) a capital gain, dividend, interest, rent, royalty, or other similar item that is generated from an asset held for investment and not from a regular business trading activity.
(5)
(a) For purposes of the subtraction provided for in Subsection (1)(o), the amount of a reduction in basis shall be allowed as an expense for the taxable year in which a federal tax credit is claimed if:
(i) there is a reduction in federal basis for a federal tax credit; and
(ii) there is no corresponding tax credit allowed in this state.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define what constitutes an item similar to Subsections (1)(o)(i) through (iv).
(1)
(a) For property acquired after December 31, 1993, basis shall be determined pursuant to the Internal Revenue Code without reference to Section 1502, Internal Revenue Code, or regulations promulgated under that section.
(b) Notwithstanding Subsection (1)(a), adjustments for basis in a combined report may be established by rules promulgated by the tax commission.
(2) For property acquired after December 31, 1930, but before January 1, 1994, basis shall be determined under Utah law in effect at the time the property was acquired.
(3)
(a) Except as provided in Subsection (3)(c), the basis for determining the gain or loss from the sale or other disposition of property acquired before January 1, 1931, shall be:
(i) the cost of such property or in the case of property acquired by gift or transfer in trust, the fair market value of such property at the time of such acquisition; or
(ii) the fair market value of such property as of January 1, 1931, whichever is greater.
(b) In determining the fair market value of stock in a corporation as of January 1, 1931, due regard shall be given to the fair market value of the assets of the corporation as of that date.
(c)
(i) In determining the basis for inventory acquired before January 1, 1931, if the property should have been included in the last inventory, the basis shall be the value of that property at the last inventory.
(ii) In determining the basis for bequests and devises acquired before January 1, 1931, if personal property was acquired by specific bequest, or if real property was acquired by general or specific devise, the basis shall be the fair market value of the property at the time of the death of the decedent. In all other cases if the property was acquired by will, the basis shall be the fair market value of the property at the time of the distribution to the taxpayer.
(iii) In determining the basis for property acquired before January 1, 1931, during affiliation in which a combined report is filed under either Section 59-7-402 or 59-7-403, the basis shall be determined in accordance with rules prescribed by the commission.
(4) If any property subject to taxation under this chapter was acquired before January 1, 1931, the basis of such property, if other than the fair market value as of January 1, 1931, shall be diminished in the amount of exhaustion, wear and tear, obsolescence, and depletion actually sustained before such date.
(1)
(a) For purposes of this chapter, a distribution is made out of earnings or profits to the extent of the earnings or profits, and from the most recently accumulated earnings or profits.
(b)
(i) Subject to Subsection (1)(b)(ii), any earnings or profits accumulated or increase in value of property accrued before January 1, 1931, may be excluded from taxable income after the earnings and profits accumulated after December 31, 1930 have been distributed.
(ii) A distribution described in Subsection (1)(b)(i) shall be applied against and reduce the basis of the stock.
(2)
(a) Subject to Subsection (2)(b), if any distribution that is not in partial or complete liquidation is made by a corporation to its shareholders, is not out of increase in value of property accrued before January 1, 1931, and is not out of earnings or profits, the amount of the distribution shall be applied against and reduce the basis of the stock.
(b) If a distribution described in Subsection (2)(a) is in excess of the basis of the stock, the excess shall be treated as a gain from the sale or exchange of property.
(1) Except as provided in Subsection (2), a subtraction is allowed for charitable contributions made within the taxable year to organizations described in Section 170(c), Internal Revenue Code.
(2) The aggregate amount of charitable contributions deductible under this section may not exceed 10% of the taxpayer's apportionable income. The limitation imposed in this subsection shall be calculated on a combined basis in a combined report.
(3) Any charitable contribution made in a taxable year beginning on or after January 1, 1994, which is in excess of the amount allowed as a deduction under Subsection (2) may be carried over to the five succeeding taxable years in the same manner as allowed under federal law.
(1) Notwithstanding anything to the contrary in Section 59-7-109, a taxpayer may not subtract a charitable contribution that meets the requirements of Section 59-7-109 to the extent that the taxpayer claims a tax credit under Section 59-7-625 for the same charitable contribution.
(2) This section supersedes any conflicting provisions of Utah law.
(1) A taxpayer shall determine the amount of Utah net loss that the taxpayer may carry forward to offset income of another taxable year as provided in this section.
(2) Subject to the other provisions of this section, a taxpayer:
(a) may carry forward a Utah net loss from a taxable year beginning on or after January 1, 2008, to a future taxable year until the Utah net loss is exhausted; and
(b) may not carry back a Utah net loss from a taxable year.
(3) A taxpayer that carries forward a Utah net loss shall carry forward the Utah net loss to the earliest eligible year for which the Utah taxable income before net loss deduction, minus Utah net losses from previous years that a taxpayer applied or was required to apply to offset income, is not less than zero.
(4)
(a) Subject to Subsection (4)(b), the amount of Utah net loss that a taxpayer may carry to the year identified in Subsection (3) is the lesser of:
(i) the remaining Utah net loss after deduction of any amounts of the Utah net loss that a taxpayer carried to previous years; or
(ii) the remaining Utah taxable income before net loss deduction of the year identified in Subsection (3) after deduction of Utah net losses from previous years that a taxpayer carried or was required to carry to the year identified in Subsection (3).
(b)
(i) For a Utah net loss carried forward to a taxable year beginning on or after January 1, 2023, the amount of Utah net loss that a taxpayer may carry forward to a taxable year may not exceed 80% of Utah taxable income calculated before deducting any Utah net loss from Utah taxable income.
(ii) A taxpayer may carry a remaining Utah net loss to one or more taxable years in accordance with this section.
(5)
(a)
(i) Subject to Subsection (5)(a)(ii), a corporation acquiring the assets or stock of another corporation may not deduct any net loss incurred by the acquired corporation prior to the date of acquisition.
(ii) Subsection (5)(a)(i) does not apply if the only change in the corporation is that of the state of incorporation.
(b) An acquired corporation may deduct the acquired corporation's net losses incurred before the date of acquisition against the acquired corporation's separate income as calculated under Subsections (6) and (7) if the acquired corporation has continued to carry on a trade or business substantially the same as that conducted before the acquisition.
(6) For purposes of Subsection (5)(b), the amount of net loss an acquired corporation that is acquired by a unitary group may deduct is calculated by:
(a) subject to Subsection (7):
(i) calculating the sum of:
(A) an amount determined by dividing the average value of the acquired corporation's real and tangible personal property owned or rented and used in this state during the taxable year by the average value of all of the unitary group's real and tangible personal property owned or rented and used during the taxable year;
(B) an amount determined by dividing the total amount paid in this state during the taxable year by the acquired corporation for compensation by the total compensation paid everywhere by the unitary group during the taxable year; and
(C) an amount determined by dividing the total sales of the acquired corporation in this state during the taxable year by the total sales of the unitary group everywhere during the taxable year; or
(ii) if the unitary group is required or elects to calculate the fraction for apportioning business income to this state using the method described in Subsection 59-7-311(2), calculating an amount determined by dividing the total sales of the acquired corporation in this state during the taxable year by the total sales of the unitary group everywhere during the taxable year;
(b) dividing the amount calculated under Subsection (6)(a) by the same denominator of the fraction the unitary group uses to apportion business income to this state for that taxable year in accordance with Section 59-7-311;
(c) multiplying the amount calculated under Subsection (6)(b) by the business income of the unitary group for the taxable year that is subject to apportionment under Section 59-7-311; and
(d) calculating the sum of:
(i) the amount calculated under Subsection (6)(c); and
(ii) the following amounts allocable to the acquired corporation for the taxable year:
(A) nonbusiness income allocable to this state; or
(B) nonbusiness loss allocable to this state.
(7) The amounts calculated under Subsection (6)(a) shall be derived in the same manner as those amounts are derived for purposes of apportioning the unitary group's business income before deducting the net loss, including a modification made in accordance with Section 59-7-320.
(1)
(a) For purchasers or lessors of safe harbor leases, the following additions shall be made to unadjusted income:
(i) interest expense; and
(ii) depreciation claimed on safe harbor lease property.
(b) For purchasers or lessors of safe harbor leases, the following subtractions shall be made from unadjusted income:
(i) rental income; and
(ii) amortization of the purchase price of tax benefits.
(2)
(a) For sellers or lessees of safe harbor leases the following additions shall be made from unadjusted income:
(i) the amount of gain on the sale of federal tax benefits; and
(ii) rental expense on safe harbor lease property.
(b) For sellers or lessees of safe harbor leases the following subtractions shall be made to unadjusted income:
(i) interest income; and
(ii) depreciation on safe harbor lease property.
(1) Except as provided in Subsections (2) and (3), installment sales shall be governed by Sections 453, 453A, and 453B, Internal Revenue Code.
(2) Installment sales entered into prior to January 1, 1994, shall be recognized as originally reported.
(3) If a corporation is no longer required to file a Utah corporate return, any taxes owed by that corporation on installment sales entered into by that corporation shall accelerate and be due on the corporation's last return filed in Utah.
If two or more corporations (whether or not organized or doing business in this state, and whether or not affiliated) are owned or controlled directly or indirectly by the same interests, the commission is authorized to distribute, apportion, or allocate gross income or deductions between or among such corporations, if it determines that such distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such corporations.
(1) Transactions for which an election has been made or considered to be made for federal purposes under Section 338, Internal Revenue Code, shall be treated as provided in this section. An election is not available for state purposes unless an election is made or considered to be made for federal purposes.
(2) If an election is made or considered to be made for federal purposes under Section 338, Internal Revenue Code, other than under Subsection 338(h)(10):
(a) the target corporation shall file a separate entity one-day tax return for state purposes, as is required for federal purposes, and shall include in such return the gain or loss on the deemed sale of assets in its adjusted income;
(b) the gain or loss on the deemed sale of assets shall be apportioned to this state using the apportionment fraction of the target corporation calculated on a separate entity basis for the most recent preceding taxable year consisting of 180 days or more; and
(c) the due date of the one-day return shall be the same as the due date of the return which includes the taxable period of the target corporation which immediately precedes the one-day return.
(3) If an election is made for federal purposes under Subsection 338(h)(10), Internal Revenue Code, the following shall apply:
(a) if the target corporation is a member of a unitary group immediately preceding the acquisition date, the target corporation shall be included in a combined return to the extent of its income through the acquisition date, and the gain or loss on the deemed sale of assets shall be included in the combined income of the unitary group;
(b) if the target corporation is not a member of a unitary group immediately preceding the acquisition date, the target corporation shall file a short period return for the period ending on the acquisition date and shall include in such return the gain or loss on the deemed sale of assets in its adjusted income; and
(c) any gain or loss which is not recognized for federal purposes on stock sold or exchanged by a member of a selling consolidated group as defined in Section 338, Internal Revenue Code, may not be included in the adjusted income of the selling corporation.
(4) There is a rebuttable presumption that the gain or loss on the deemed sale of assets constitutes business income.
(5) The new basis of the target corporation's assets shall be determined under Section 338, Internal Revenue Code.
(6) The target corporation shall be treated as a new corporation as of the day after the acquisition date.
(7) The commission may prescribe such rules as necessary to provide for the equitable treatment of any transaction subject to Section 338, Internal Revenue Code.
(1) Transactions for which an election has been made for federal purposes under Section 336(e), Internal Revenue Code, shall be treated as provided in this section. An election is not available for state purposes unless an election is made for federal purposes.
(2) If an election is made under Section 336(e), Internal Revenue Code, the following shall apply:
(a) if the corporation is treated for federal purposes as having disposed of all of its assets and is a member of a unitary group immediately preceding the date of sale, the corporation shall be included in a combined return to the extent of its income through the date of sale, and the gain or loss on the deemed disposal of assets shall be included in the combined income of the unitary group;
(b) if the corporation is treated for federal purposes as having disposed of all of its assets and is not a member of a unitary group immediately preceding the date of sale, the corporation shall file a short period return for the period ending on the date of sale and shall include in such return the gain or loss on the deemed disposal of assets in its adjusted income; and
(c) any gain or loss which is not recognized for federal purposes on stock sold, exchanged, or distributed by a corporation pursuant to Section 336(e), Internal Revenue Code, may not be included in adjusted income.
(3) There is a rebuttable presumption that the gain or loss on the deemed disposition of assets constitutes business income.
(4) The new basis of assets of the corporation which is treated as having disposed of its assets shall be the same as determined for federal purposes.
(5) The corporation which is treated as having disposed of its assets shall be treated as a new corporation as of the day after the date of sale.
(6) The commission may prescribe such rules as necessary to provide for the equitable treatment of any transaction subject to Section 336(e), Internal Revenue Code.
(1) A regulated investment company or a fund of such a company, as defined in Sections 851(a) or 851(g), Internal Revenue Code, which is organized under the laws of Utah, shall determine Utah taxable income as follows:
(a) calculate investment company taxable income, as determined in Section 852(b)(2), Internal Revenue Code;
(b) add any municipal interest and the exclusion of net capital gain provided in Section 852(b)(2)(A), Internal Revenue Code; and
(c) subtract the deduction for the capital gain dividends and exempt interest dividends as defined in Sections 852(b)(3)(C) and 852(b)(5), Internal Revenue Code.
(2) A regulated investment company which is organized under the laws of Utah or a fund of such a company, shall be taxed at the same rate and in the same manner as a corporation as provided in this chapter.
(1) A real estate investment trust that is not a captive real estate investment trust shall be taxed on the same income taxed for federal purposes under the Internal Revenue Code.
(2) Any income taxable under this section shall be taxed at the same rate and in the same manner provided for in this chapter.
The commission shall by rule prescribe for adjustments to Utah taxable income when, solely by reason of the enactment of this chapter, a taxpayer would otherwise receive or have received a double tax benefit or suffer or have suffered a double tax detriment. However, the commission may not make any adjustment pursuant to this section which will result in an increase or decrease of tax liability that is less than $25.
(1) Subject to the other provisions of this section, a corporation may pay in installments the tax owed under this chapter on deferred foreign income described in Section 965, Internal Revenue Code.
(2) Subsection (1) applies:
(a) to a corporation that:
(i) is authorized to make an election under Section 965(h), Internal Revenue Code; and
(ii) apportions deferred foreign income described in Section 965, Internal Revenue Code, to this state; and
(b) for a tax year in which a corporation makes an election under Section 965(h), Internal Revenue Code, for purposes of the corporation's federal income tax.
(3)
(a) Except as provided in Subsection (3)(b), the same provisions that apply to an election made under Section 965(h), Internal Revenue Code, for federal purposes apply to an installment payment made under this section.
(b) A corporation shall make:
(i) the first installment under this section on or before the due date of the tax return filed under this chapter for the first taxable year in which the corporation reports deferred foreign income described in Section 965, Internal Revenue Code; and
(ii) a subsequent installment on or before the due date of the tax return filed under this chapter in each of the following seven years.
(1) As used in this section, "committee" means the Revenue and Taxation Interim Committee.
(2)
(a) The committee shall review each tax credit described in this chapter once every five years to determine whether to continue, modify, or repeal the tax credit.
(b) In conducting the review required under Subsection (2)(a), the committee shall:
(i) schedule time on a committee agenda to conduct the review as needed;
(ii) invite state agencies, individuals, and organizations concerned with a tax credit under review to provide oral or written testimony;
(iii)
(A) invite the Governor's Office of Economic Development to present a summary and analysis of the information for each tax credit for which the Governor's Office of Economic Development is required to make a report under this chapter; and
(B) invite the Office of the Legislative Fiscal Analyst to present a summary and analysis of the information for each tax credit regarding which the Office of the Legislative Fiscal Analyst is required to make a report under this chapter;
(iv) evaluate:
(A) the cost of the tax credit to the state;
(B) the purpose and effectiveness of the tax credit; and
(C) the extent to which the state benefits from the tax credit; and
(v) undertake other review efforts as determined by the committee chairs or as otherwise required by law.
(1) There is imposed upon each corporation, except a corporation that is exempt under Section 59-7-102, a tax upon the corporation's Utah taxable income for the taxable year that is derived from sources within this state other than income for any period that the corporation is required to include in the corporation's tax base under Section 59-7-104.
(2) The tax imposed by Subsection (1) shall be 4.45% of a corporation's Utah taxable income.
(3) In no case shall the tax be less than $100.
For purposes of the tax imposed by this part, Utah taxable income shall be determined in accordance with Part 1, Corporate Tax Generally, except that wherever the date December 31, 1930 appears, the date December 31, 1958 shall be substituted, and wherever the date January 1, 1931 appears, the date January 1, 1959 shall be substituted.
For the purposes of the tax imposed by this part, the portion of Utah taxable income derived from or attributable to sources within this state shall be determined in accordance with Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions and Part 4, Combined Reporting.
For purposes of the tax imposed by this part, Part 5, Procedures and Administration and Part 6, Credits, shall apply.
There shall be offset against the tax imposed by this part for any period the amount of any tax imposed on the taxpayer under Section 59-7-104 for the same period. In the event that taxes, interest, and penalties have been or shall be assessed against, paid by, or collected from a taxpayer under Section 59-7-201, which assessment, payment, or collection should have been made under Section 59-7-104, such taxes, interest, and penalties shall be considered as having been assessed, paid, or collected under Section 59-7-104 as of the dates they were made.
If a corporation formerly subject to tax under Section 59-7-104 becomes subject to tax under this part, it shall file an information return for the income year in which the change occurs. The tax for the year in which the change occurs will be assessed under Section 59-7-104 and not under Section 59-7-201. For years subsequent to the year in which the change occurs, the tax will be assessed under Section 59-7-201.
For the purposes of the taxes collected under this part, and interest and penalties arising in connection therewith, the provisions of Section 59-7-532 shall be followed.
(1) As used in this part, unless the context otherwise requires:
(a) "Aircraft type" means a particular model of aircraft as designated by the manufacturer of the aircraft.
(b) "Airline" means the same as that term is defined in Section 59-2-102.
(c) "Airline revenue ton miles" means, for an airline, the total revenue ton miles during the airline's tax period.
(d) "Business income" means income that:
(i) is apportionable under the United States Constitution and is not allocated under the laws of this state, including income arising from:
(A) a transaction or activity in the regular course of the taxpayer's trade or business; and
(B) tangible and intangible property, if the acquisition, management, employment, development, or disposition of the property is or was related to the operation of the taxpayer's trade or business; or
(ii) would be allocable to this state under the United States Constitution, but is apportioned rather than allocated in accordance with the laws of this state.
(e) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.
(f) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services.
(g) "Excluded NAICS code" means a NAICS code of the 2017 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, within:
(i) NAICS Code 211120, Crude Petroleum Extraction;
(ii) NAICS Industry Group 2121, Coal Mining;
(iii) NAICS Industry Group 2212, Natural Gas Distribution;
(iv) NAICS Subsector 311, Food Manufacturing;
(v) NAICS Industry Group 3121, Beverage Manufacturing;
(vi) NAICS Code 327310, Cement Manufacturing;
(vii) NAICS Subsector 482, Rail Transportation;
(viii) NAICS Code 512110, Motion Picture and Video Production;
(ix) NAICS Subsection 515, Broadcasting (except Internet); or
(x) NAICS Code 522110, Commercial Banking.
(h)
(i) Except as provided in Subsection (1)(h)(ii), "mobile flight equipment" means the same as that term is defined in Section 59-2-102.
(ii) "Mobile flight equipment" does not include:
(A) a spare engine; or
(B) tangible personal property described in Subsection 59-2-102(26) owned by an air charter service or an air contract service.
(i) "Nonbusiness income" means all income other than business income.
(j) "Optional apportionment taxpayer" means a taxpayer described in Subsection (3).
(k) "Phased-in sales factor weighted taxpayer" means a taxpayer that:
(i) is not a sales factor weighted taxpayer;
(ii) does not meet the definition of an optional apportionment taxpayer; or
(iii) for a taxable year beginning on or after January 1, 2020:
(A) meets the definition of an optional apportionment taxpayer; and
(B) apportioned business income using the method described in Subsection 59-7-311(4) during the previous taxable year.
(l) "Revenue ton miles" is determined in accordance with 14 C.F.R. Part 241.
(m) "Sales" means all gross receipts of the taxpayer not allocated under Sections 59-7-306 through 59-7-310.
(n) "Sales factor weighted taxpayer" means a taxpayer described in Subsection (2).
(o) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof.
(p) "Transportation revenue" means revenue an airline earns from:
(i) transporting a passenger or cargo; or
(ii) from miscellaneous sales of merchandise as part of providing transportation services.
(q) "Utah revenue ton miles" means, for an airline, the total revenue ton miles within the borders of this state:
(i) during the airline's tax period; and
(ii) from flight stages that originate or terminate in this state.
(2)
(a) A taxpayer is a sales factor weighted taxpayer if the taxpayer apportioned business income using the method described in Subsection 59-7-311(2) during the previous taxable year or if, regardless of the number of economic activities the taxpayer performs, the taxpayer generates greater than 50% of the taxpayer's total sales everywhere from economic activities that are classified in a NAICS code of the 2002 or 2007 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, other than:
(i) a NAICS code within NAICS Sector 21, Mining;
(ii) a NAICS code within NAICS Industry Group 2212, Natural Gas Distribution;
(iii) a NAICS code within NAICS Sector 31-33, Manufacturing, except:
(A) NAICS Industry Group 3254, Pharmaceutical and Medicine Manufacturing;
(B) NAICS Industry Group 3333, Commercial and Service Industry Machinery Manufacturing;
(C) NAICS Subsector 334, Computer and Electronic Product Manufacturing; and
(D) NAICS Code 336111, Automobile Manufacturing;
(iv) a NAICS code within NAICS Sector 48-49, Transportation and Warehousing;
(v) a NAICS code within NAICS Sector 51, Information, except NAICS Subsector 519, Other Information Services; or
(vi) a NAICS code within NAICS Sector 52, Finance and Insurance.
(b) A taxpayer shall determine if the taxpayer is a sales factor weighted taxpayer each year before the due date for filing the taxpayer's return under this chapter for the taxable year, including extensions.
(c) For purposes of making the determination required by Subsection (2)(a), total sales everywhere include only the total sales everywhere:
(i) as determined in accordance with this part; and
(ii) made during the taxable year for which a taxpayer makes the determination required by Subsection (2)(a).
(3)
(a) A taxpayer is an optional apportionment taxpayer if the average calculated in accordance with Subsection (3)(b) is greater than .50.
(b) To calculate the average described in Subsection (3)(a), a taxpayer shall:
(i) calculate the following two fractions:
(A) the property factor fraction as described in Subsection 59-7-312(3); and
(B) the payroll factor fraction as described in Subsection 59-7-315(3);
(ii) add together the fractions described in Subsection (3)(b)(i); and
(iii) divide the sum calculated in Subsection (3)(b)(ii):
(A) except as provided in Subsection (3)(b)(iii)(B), by two; or
(B) if either the property factor fraction or the payroll factor fraction has a denominator of zero or is excluded in accordance with Subsection 59-7-312(3)(b) or 59-7-315(3)(b), by one.
(c) A taxpayer shall determine if the taxpayer is an optional apportionment taxpayer before the due date for filing the taxpayer's return under this chapter for the taxable year, including extensions.
(4) A taxpayer that files a return as a unitary group for a taxable year is considered to be a unitary group for that taxable year.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may define the term "economic activity" consistent with the use of the term "activity" in the 2007 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget.
(1) Any taxpayer having income from business activity which is taxable both within and without this state shall allocate and apportion the taxpayer's adjusted income as provided in this part.
(2) Any taxpayer having income solely from business activity taxable within this state shall allocate or apportion the taxpayer's entire adjusted income to this state.
(3)
(a) Notwithstanding Subsections (1) and (2), for a taxable year beginning on or after January 1, 2022, a taxpayer may elect to treat all of the taxpayer's income from sales of intangible property as business income.
(b) A taxpayer shall make the election described in Subsection (3)(a) on or before the deadline for filing a return under an extension of time described in Section 59-7-505.
(c) An election under this Subsection (3) is irrevocable.
For purposes of allocation and apportionment of income under this part, a taxpayer is taxable in another state if:
(1) in that state the taxpayer is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax; or
(2) that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.
Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in Sections 59-7-307 through 59-7-310.
(1) To the extent that the following constitute nonbusiness income:
(a) net rents and royalties from real property located in this state are allocable to this state; and
(b) net rents and royalties from tangible personal property are allocable to this state:
(i) if and to the extent that the property is utilized in this state; or
(ii) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
(2) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
To the extent that the following constitute nonbusiness income:
(1) capital gains and losses from sales of real property located in this state are allocable to this state;
(2) capital gains and losses from sales of tangible personal property are allocable to this state if:
(a) the property had a situs in this state at the time of the sale; or
(b) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs; and
(3) capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.
To the extent they constitute nonbusiness income, interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.
(1) To the extent they constitute nonbusiness income, patent and copyright royalties are allocable to this state:
(a) if and to the extent that the patent or copyright is utilized by the payer in this state; or
(b) if and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
(2) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
(3) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.
(1) For a taxable year, a taxpayer shall apportion all business income to this state by multiplying the business income by a fraction calculated as provided in this section.
(2) Subject to the other provisions of this part, a sales factor weighted taxpayer shall calculate the fraction for apportioning business income to this state using a fraction where:
(a) the numerator of the fraction is the sales factor as calculated under Section 59-7-317; and
(b) the denominator of the fraction is one.
(3) Subject to the other provisions of this part, an optional apportionment taxpayer that is not a phased-in sales factor weighted taxpayer shall calculate the fraction for apportioning business income to this state using one of the following fractions:
(a) the fraction described in Subsection (4); or
(b) the fraction where:
(i) the numerator of the fraction is the sum of:
(A) the property factor as calculated under Section 59-7-312;
(B) the payroll factor as calculated under Section 59-7-315; and
(C) the sales factor as calculated under Section 59-7-317; and
(ii) the denominator of the fraction is three.
(4)
(a) Subject to other provisions of this part, a phased-in sales factor weighted taxpayer shall calculate the fraction for apportioning business income to this state as provided in Subsections (4)(b) through (d).
(b) For the taxable year that begins on or after January 1, 2019, but begins on or before December 31, 2019:
(i) the numerator of the fraction is the sum of:
(A) the property factor as calculated under Section 59-7-312;
(B) the payroll factor as calculated under Section 59-7-315; and
(C) the sales factor as calculated under Subsection (4)(e)(i); and
(ii) the denominator of the fraction is six.
(c) For the taxable year that begins on or after January 1, 2020, but begins on or before December 31, 2020:
(i) the numerator of the fraction is the sum of:
(A) the property factor as calculated under Section 59-7-312;
(B) the payroll factor as calculated under Section 59-7-315; and
(C) the sales factor as calculated under Subsection (4)(e)(ii); and
(ii) the denominator of the fraction is 10.
(d) For a taxable year that begins on or after January 1, 2021, a phased-in sales factor weighted taxpayer shall calculate the fraction as described in Subsection (2).
(e)
(i) For the taxable year that begins on or after January 1, 2019, but begins on or before December 31, 2019, the sales factor shall be:
(A) calculated as described in Section 59-7-317; and
(B) multiplied by four.
(ii) For the taxable year that begins on or after January 1, 2020, but begins on or before December 31, 2020, the sales factor shall be:
(A) calculated as described in Section 59-7-317; and
(B) multiplied by eight.
(5)
(a) The taxpayer shall determine the method for calculating the fraction for apportioning business income to this state under this section on or before the due date for filing the taxpayer's return under this chapter for the taxable year, including extensions.
(b) The method described in Subsection (5)(a) is in effect for the taxable year.
(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing procedures for a taxpayer to make the election required by Subsection (3).
(1) Except as provided in Subsections (2) and (3), the property factor is a fraction:
(a) the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period; and
(b) the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period.
(2) The average value of an airline's real and tangible personal property owned or rented and used in this state attributable to mobile flight equipment for purposes of the numerator of the fraction described in Subsection (1) shall be calculated for each aircraft type by multiplying:
(a) the total average value of the airline's mobile flight equipment of the aircraft type owned or rented and used during the tax period; and
(b) a fraction:
(i) the numerator of which is the Utah revenue ton miles for the aircraft type; and
(ii) the denominator of which is the airline revenue ton miles for the aircraft type.
(3)
(a) For purposes of Subsection 59-7-302(3)(b)(i)(A) and subject to Subsection (3)(b), the property factor is a fraction:
(i) the numerator of which is the value of the property in this state that is attributable to economic activities that are classified in an excluded NAICS code; and
(ii) the denominator of which is the value of all property in this state.
(b) A taxpayer shall exclude property from the calculation of the property factor fraction described in Subsection (3)(a) if the property may be attributed to economic activities in both excluded NAICS codes and NAICS codes that are not excluded NAICS codes.
(1) Property owned by the taxpayer is valued at its original cost.
(2) Property rented by the taxpayer is valued at eight times the net annual rental rate.
(3) Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.
(4) Property owned or rented by an airline is valued as provided in this section, subject to the calculation required by Subsection 59-7-312(2).
(1) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period or averaging of monthly values during the tax period if monthly averaging more clearly reflects the average value of the taxpayer's property.
(2) The average value of property of an airline is valued as provided in this section, subject to the calculation required by Subsection 59-7-312(2).
(1) Except as provided in Subsections (2) and (3), the payroll factor is a fraction:
(a) the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation; and
(b) the denominator of which is the total compensation paid everywhere during the tax period.
(2) The total amount paid in this state during the tax period by an airline for compensation attributable to the compensation of flight personnel for purposes of the numerator of the fraction described in Subsection (1) shall be calculated for each aircraft type by multiplying:
(a) the total amount paid during the tax period by the airline to flight personnel for compensation for the aircraft type; and
(b) a fraction:
(i) the numerator of which is the Utah revenue ton miles for the aircraft type; and
(ii) the denominator of which is the airline revenue ton miles for the aircraft type.
(3)
(a) For purposes of Subsection 59-7-302(3)(b)(i)(B) and subject to Subsection (3)(b), the payroll factor is a fraction:
(i) the numerator of which is the amount of the payroll in this state that is attributable to economic activities that are classified in an excluded NAICS code; and
(ii) the denominator of which is the total amount of the payroll in this state.
(b) A taxpayer engaged in economic activities that are classified in an excluded NAICS code shall exclude an individual's payroll from the calculation of the payroll factor fraction described in Subsection (3)(a) if the individual's payroll may be attributed:
(i) to economic activities in both excluded NAICS codes and NAICS codes that are not excluded NAICS codes; or
(ii) to providing management, information technology, finance, accounting, legal, or human resource services.
(1) Compensation is paid in this state if:
(a) the individual's service is performed entirely within the state;
(b) the individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within the state; or
(c) some of the service is performed in the state and:
(i) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state; or
(ii) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.
(2) Whether compensation paid by an airline is paid in this state is determined as provided in this section, subject to the calculation required by Subsection 59-7-315(2).
(1) As used in this section:
(a)
(i) "Finance lease" means a lease transaction that is the functional equivalent of an extension of credit and that transfers substantially all of the benefits and risks incident to the ownership of property.
(ii) "Finance lease" includes a direct financing lease or leverage lease that meets the criteria of Financial Accounting Standards Board Statement No. 13, Accounting for Leases, or any other lease that is accounted for as a financing lease by a lessor under generally accepted accounting principles.
(b) "Financial institution" means:
(i) a corporation or other business entity registered under state law as a bank holding company, under the Federal Bank Holding Act of 1956, as amended, or registered as a savings and loan holding company under the Federal National Housing Act, as amended;
(ii) a national bank organized and existing as a national bank association in accordance with the National Bank Act, 12 U.S.C. Secs. 21 et seq.;
(iii) a savings association or federal savings bank as defined in 12 U.S.C. Secs. 1813(b)(1) and (2);
(iv) a bank, industrial loan corporation, or thrift institution incorporated or organized under the laws of any state;
(v) a corporation organized under the provisions of 12 U.S.C. Secs. 611 through 631;
(vi) an agency or a branch of a foreign bank as defined in 12 U.S.C. Sec. 3101;
(vii) a production credit association organized under the Federal Farm Credit Act of 1933, if all of the production credit association's stock held by the Federal Production Credit Corporation has been retired;
(viii) a corporation, other than an insurance company taxable under Chapter 9, Taxation of Admitted Insurers, for which voting stock is more than 50% owned, directly or indirectly, by any person described in Subsections (1)(b)(i) through (1)(b)(vii);
(ix) a corporation or other business entity that derives from finance leases more than 50% of the corporation's or the business entity's total gross income for financial accounting purposes:
(A) using the average of the gross income in the current tax year and immediately preceding two tax years; and
(B) disregarding gross income from incidental or occasional transactions; or
(x) another person, other than an insurance company, a credit union exempt from the corporation franchise tax under Section 59-7-102, a real estate broker, or a securities dealer, that derives more than 50% of the person's gross income, excluding non-recurring, extraordinary items, from activities that a person described in Subsections (1)(b)(ii) through (vii) and (1)(b)(ix) is authorized to transact unless the commission excludes the person upon receipt of proof, by clear and convincing evidence, that the income-producing activity of the person is not in substantial competition with the persons described in Subsections (1)(b)(ii) through (vii) and (1)(b)(ix).
(c)
(i) "Sales from investment activities and assets and trading activities and assets" means receipts from interest, dividends, a net gain, but not less than zero, or other income from an investment security, a trading account asset, federal funds, a security purchased and sold under an agreement to resell or repurchase, an option, a future contract, a forward contract, equities, a foreign currency transaction, or a notional principal contract, such as swaps.
(ii) "Sales from investment activities and assets and trading activities and assets" includes:
(A) the amount by which interest from federal funds sold and securities purchased under resale agreements exceeds interest expense on federal funds purchased and securities sold under repurchase agreements; and
(B) the amount by which interest, dividends, gains, and other income from foreign currency transactions and trading assets and activities, including assets and activities in the matched book and arbitrage book, exceed amounts paid in lieu of interest, amounts paid in lieu of dividends, and losses from trading assets and activities.
(iii) "Sales from investment activities and assets and trading activities and assets" does not include:
(A) receipts from the lease of real property;
(B) receipts from the lease of tangible personal property;
(C) interest from a loan secured by real property;
(D) interest from a loan not secured by real property;
(E) a net gain from the sale of a loan;
(F) receipts from a credit card receivable;
(G) a net gain from the sale of a credit card receivable;
(H) a credit card issuer's reimbursement fees;
(I) receipts from a merchant discount;
(J) a loan servicing fee;
(K) receipts from a service; or
(L) other receipts not addressed in Subsection (1)(c)(i) or Subsections (1)(c)(iii)(A) through (K).
(2) Except as provided in Subsections (3) and (4), the sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period, and the denominator of which is the total sales of the taxpayer everywhere during the tax period.
(3) The total sales of an airline in this state during the tax period attributable to transportation revenue in this state during the tax period for purposes of the numerator of the fraction described in Subsection (1) shall be calculated by determining the product of:
(a) the total transportation revenue during the tax period of the airline; and
(b) a fraction, the numerator of which is the Utah revenue ton miles and the denominator of which is the airline revenue ton miles.
(4)
(a) Except as provided in Subsection (4)(b), the commission shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that establish the sales to be included in the sales factor fraction of a financial institution.
(b) In calculating the sales factor of a financial institution:
(i) the numerator may not include sales from investment activities and assets and trading activities and assets; and
(ii) the denominator shall include sales from investment activities and assets and trading activities and assets.
(1) Sales of tangible personal property are in this state if:
(a) the property is delivered or shipped to a purchaser, other than the United States Government, within this state regardless of the f.o.b. point or other conditions of the sale; or
(b)
(i) the property is shipped from an office, store, warehouse, factory, or other place of storage in this state; and
(ii)
(A) the purchaser is the United States Government; or
(B) the taxpayer is not taxable in the state of the purchaser.
(2) Whether sales of tangible personal property by an airline are in this state is determined as provided in this section, subject to the calculation required by Subsection 59-7-317(2).
(1)
(a) Subject to Subsection (1)(b), as used in this section, "regulated investment company" is as defined in Section 851(a), Internal Revenue Code, in effect for the taxable year.
(b) "Regulated investment company" includes a trustee or sponsor of an employee benefit plan that has an account in a regulated investment company.
(2) The following are considered to be in this state:
(a) a rent in connection with:
(i) real property if the real property is in this state; or
(ii) tangible personal property if the tangible personal property is in this state;
(b) a royalty in connection with real property if the real property is in this state;
(c) a sale in connection with real property if the real property is in this state; or
(d) other income in connection with real property or tangible personal property if the real property or tangible personal property is in this state.
(3)
(a) Subject to Subsection (3)(b), a receipt from the performance of a service is considered to be in this state if the purchaser of the service receives a greater benefit of the service in this state than in any other single:
(i) foreign country; or
(ii) state, as defined in Section 68-3-12.5.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule prescribe the circumstances under which a purchaser of a service receives a greater benefit of the service in this state than in any other single:
(i) foreign country; or
(ii) state, as defined in Section 68-3-12.5.
(4)
(a) Subject to Subsection (4)(b), a receipt in connection with intangible property is considered to be in this state if the intangible property is used in this state.
(b) If the intangible property described in Subsection (4)(a) is used in this state and outside this state, a receipt in connection with the intangible property shall be apportioned to this state in accordance with Subsection (4)(c).
(c) For purposes of Subsection (4)(b), for a taxable year the percentage of a receipt in connection with intangible property that is considered to be in this state is the percentage of the use of the intangible property that occurs in this state during the taxable year.
(5)
(a) Notwithstanding Subsections (2) through (4), a sale, other than a sale of tangible personal property, derived, directly or indirectly, from the sale of management, distribution, or administration services to, or on behalf of a regulated investment company, is considered to be in this state:
(i) to the extent that shareholders of the regulated investment company are domiciled in the state; and
(ii) as provided in this Subsection (5).
(b) For purposes of Subsection (5)(a), the amount of a sale, other than a sale of tangible personal property, that is considered to be in this state is calculated by determining the product of:
(i) the taxpayer's total dollar amount of sales of the services; and
(ii) a fraction, the numerator of which is the average of the sum of the beginning of the year and the end of year balance of shares owned by the investment company shareholders domiciled in this state and the denominator of which is the average of the sum of the beginning of the year and end of year balance of shares owned by the investment company shareholders.
(c) A separate computation shall be made to determine the sales for each investment company.
(6)
(a) Notwithstanding Subsections (2) through (4) and subject to Subsection (6)(b), the following sales are considered to be in this state to the extent that customers of a securities brokerage business are domiciled in the state:
(i) a sale, other than a sale of tangible personal property, derived, directly or indirectly, from the sale of a securities brokerage service by a taxpayer if that taxpayer is primarily engaged in providing a service in this state to a regulated investment company; or
(ii) a sale, other than a sale of tangible personal property, derived, directly or indirectly, from the sale of a securities brokerage service by a taxpayer that is an affiliate of a taxpayer that provides a service in this state to a regulated investment company.
(b) For purposes of Subsection (6)(a), the amount of a sale, other than a sale of tangible personal property, that is considered to be in this state is calculated by determining the product of:
(i) the taxpayer's total dollar amount of sales of securities brokerage services; and
(ii) a fraction, the numerator of which is the receipts from securities brokerage services from customers of the taxpayer domiciled in this state, and the denominator of which is the receipts from securities brokerage services from all customers of the taxpayer.
(7) Whether sales by an airline, other than sales of tangible personal property, are in this state is determined as provided in this section, subject to the calculation required by Subsection 59-7-317(2).
Notwithstanding any other provision of this part, if the allocation and apportionment provisions of this part do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the commission may require, in respect to all or any part of the taxpayer's business activity, if reasonable:
(1) separate accounting;
(2) the exclusion of any one or more of the factors;
(3) the inclusion of one or more additional factors which will fairly represent the taxpayer's business activity in this state; or
(4) the employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.
This part shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it.
(1) Except as provided in Subsection (2), in determining whether a corporation is a foreign operating company or has met the threshold level of business activity, business activity within and without the United States shall be measured by means of the factors ordinarily applicable under Sections 59-7-312 through 59-7-319.
(2)
(a) Any taxpayer who would ordinarily be required to apportion business income in accordance with Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions, shall use a two-factor formula of property and payroll.
(b) The results of the property and payroll factor computation shall be divided by two, or by one if either the property or payroll factor has a denominator of zero.
(1) Except as provided in Section 59-7-403, if any corporation listed in Subsection 59-7-101(40)(a) is doing business in Utah, the unitary group shall file a water's edge combined report.
(2)
(a) A group of corporations that are not otherwise a unitary group may elect to file a water's edge combined report if each member of the group is:
(i) doing business in Utah;
(ii) part of the same affiliated group; and
(iii) qualified, under Section 1501, Internal Revenue Code, to file a federal consolidated return.
(b) Each corporation within the affiliated group that is doing business in Utah must consent to filing a combined report. If an affiliated group elects to file a combined report, each corporation within the affiliated group that is doing business in Utah must file a combined report.
(c) Corporations that elect to file a water's edge combined report under this section may not thereafter elect to file a separate return without the consent of the commission.
(1) A unitary group may elect to file a worldwide combined report.
(2) Corporations electing to file a worldwide combined report may not thereafter elect to file a return on a basis other than a worldwide combined report without the consent of the commission.
(1) A group filing a combined report under Section 59-7-402 or 59-7-403 shall calculate unadjusted income of the combined group by:
(a) computing unadjusted income on a separate return basis;
(b) combining income or loss of the members included in the combined report; and
(c) making appropriate eliminations and adjustments between members included in the combined report.
(2) For purposes of this section, if an entity does not calculate federal taxable income, then unadjusted income shall be calculated based on the applicable federal tax laws.
For purposes of apportionment under Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions:
(1) corporations filing a combined report under Section 59-7-402 or 59-7-403 may not include intercompany sales or other intercompany transactions between the corporations included in the combined report in determining the sales factor;
(2) corporations filing a combined report under Section 59-7-402 or 59-7-403 may not include intercompany rents or other intercompany transactions between the corporations included in the combined report in determining the property factor; and
(3) the amounts of the numerators in this state of the property, payroll, and sales factors of an out-of-state business, as defined in Section 53-2a-1202, that are directly related to disaster- or emergency-related work, as defined in Section 53-2a-1202, during a disaster period, as defined in Section 53-2a-1202, may not be included in the apportionment fraction of the combined group.
The commission shall prescribe such rules as necessary to reflect a corporation's tax liability and to prevent avoidance of corporate tax liability in accordance with the provisions of this part.
(1) Utah taxable income shall be computed upon the basis of:
(a) the same taxable period used for federal income tax purposes;
(b) the corporation's annual accounting period if the corporation did not file a federal income tax return; or
(c) the calendar year if the corporation has an annual accounting period other than a fiscal year, has no annual accounting period, or does not keep books, and does not file a federal income tax return.
(2)
(a) Utah taxable income shall be computed under the method of accounting on the basis of which the corporation computes:
(i) its income for federal income tax purposes; or
(ii) its income in keeping its books if the corporation did not file a federal income tax return.
(b) If no method of accounting has been regularly used by the corporation or if the method employed does not clearly reflect Utah taxable income computed and apportioned to this state for the taxable year, Utah taxable income shall be computed in accordance with a method which in the opinion of the commission clearly reflects Utah taxable income.
(3) If a corporation is required under Public Law 99-514, or successor statute, to change its method of accounting from the cash receipts and disbursements method to an accrual method or other permissible method, the transition period provision of Public Law 99-514, or successor statute, for taking into account the adjustments required by reasons of such change shall be followed.
(4) The amount of all items of gross income shall be included in the gross income for the taxable year in which received by the taxpayer, unless, under the methods of accounting permitted under this section, any such amounts are to be properly accounted for as of a different period.
(5) The subtractions provided for in this chapter shall be taken for the taxable year in which "paid or accrued" or "paid or incurred," dependent upon the method of accounting upon the basis of which Utah taxable income is computed, unless in order to clearly reflect the income the subtractions ought to be taken as of a different period.
(6) For purposes of Subsections (4) and (5), transition periods for reporting income or deductions permitted or required by Public Law 99-514, or successor statute, shall be followed.
(1) If a corporation changes its taxable year for federal income tax purposes, the new taxable year shall become the corporation's taxable year for Utah corporate franchise or income tax purposes.
(2) If a corporation which does not file a federal tax return changes its accounting period, the new accounting period shall become the corporation's taxable year for Utah corporate franchise or income tax purposes if the change is approved by the commission.
(1) If a corporation changes its taxable year in accordance with Section 59-7-502, a short period return shall be made for the period of less than 12 months between the close of the last taxable year for which a return was made and the close of the new taxable year.
(2) Where a short period return is made under Subsection (1) on account of a change in the accounting period, and in any other case where a short period return is required or permitted by rules prescribed by the commission to be made for a fractional part of a year, the tax shall be calculated at the rate provided in Section 59-7-104 for the period covered by the return assignable to business done in Utah.
(1) Except as provided in Subsection (2), a corporation subject to taxation under this chapter that has a tax liability of $3,000 or more in either the current tax year or the previous tax year shall make a payment of an estimated tax on or before the day on which the corporation is required to make a payment of an estimated tax for the same time period to the federal government.
(2) The provisions of Section 6655, Internal Revenue Code, shall govern the payment described in Subsection (1), except that:
(a) for the first year a corporation is required to file a return in Utah, that corporation is not subject to Subsection (1) if the corporation makes a payment on or before the due date of the return, without extensions, equal to or greater than the minimum tax required under Section 59-7-104 or 59-7-201;
(b) the applicable percentage of the required annual payment, as defined in Section 6655, Internal Revenue Code, for annualized income installments, adjusted seasonal installments, and those estimated tax payments based on the current year tax liability shall be:
| | | Installment | Percentage | | --- | --- | --- | --- | | | | 1st | 22.5 | | | | 2nd | 45.0 | | | | 3rd | 67.5 | | | | 4th | 90.0 |
(c) a large corporation shall be treated as any other corporation for purposes of this section;
(d) if a taxpayer elects a different annualization period than the one used for federal purposes, the taxpayer shall make an election with the commission at the same time as provided under Section 6655, Internal Revenue Code; and
(e) the due date shall be superseded by the due date for federal estimated payments if modified by other federal action.
(3) A penalty shall be added as provided in Section 59-1-401 for any quarterly estimated tax payment that is not made in accordance with this section.
(4) There shall be no interest added to any estimated tax payments subject to a penalty under this section.
(1) Each corporation subject to taxation under this chapter shall make a return, except that a group of corporations filing a combined report under Part 4, Combined Reporting, shall file one combined report.
(a) The return shall be signed by a responsible officer of the corporation, the signature of whom need not be notarized but when signed shall be considered as made under oath.
(b)
(i) In cases where receivers, trustees in bankruptcy, or assignees are operating the property or business of corporations, those receivers, trustees, or assignees shall make returns for such corporations in the same manner and form as corporations are required to make returns.
(ii) Any tax due on the basis of such returns made by receivers, trustees, or assignees shall be collected in the same manner as if collected from the corporations of whose business or property they have custody and control.
(2)
(a) A corporation required to make a return under this chapter shall make a return on or before the later of:
(i) the 15th day of the fourth month following the close of the taxable year; or
(ii) the day on which the corporation is required to file a federal income tax return.
(b) Interest accrues from the day on which a return is due under this Subsection (2).
(3)
(a) The commission shall allow a taxpayer an extension of time for filing a return.
(b) Except as provided in Subsection (3)(c), the extension described in Subsection (3)(a) may be for up to six months.
(c) For a taxable year beginning on or after January 1, 2019, but beginning on or before December 31, 2019, a taxpayer may receive an extension described in Subsection (3)(a) for the time period that ends on the last day of the extension to file the taxpayer's federal income tax return.
(4) Each return shall be made to the commission.
(5) A corporation incorporated or qualified to do business in this state before January 1, 1973, is not liable for filing a return or paying tax measured by income for the taxable year in which the corporation legally terminates the corporation's existence.
(6) A corporation incorporated or qualified to do business or that had the corporation's authority to do business reinstated on or after January 1, 1973, shall file a return and pay the tax measured by income for each period during which the corporation had the right to do business in this state, and the return shall be filed and the tax paid within three months and 15 days after the close of this period.
(7) If a corporation terminates the corporation's existence under Section 16-10a-1401, the corporation is not required to file a return if the corporation provides a statement to the commission that no business has been conducted during that period.
(8)
(a) A corporation commencing to do business in Utah after qualification or incorporation with the Division of Corporations and Commercial Code is not required to file a return for the period commencing with the date of incorporation or qualification and ending on the last day of the same month, if that corporation was not doing business in and received no income from sources in the state during such period.
(b) In determining whether a corporation comes within the provisions of this chapter, affidavits on behalf of the corporation that it did no business in and received no income from sources in Utah during such period shall be filed with the commission.
(9) An entity required to file a return under this section shall report on the entity's return:
(a) whether the entity has filed a current annual report with the Division of Corporations; and
(b) the entity's commerce entity number.
(1)
(a) If an estimated payment is not made as provided in Section 59-7-504, the amount of tax imposed by this chapter shall be paid no later than the due date of the return described in Subsection 59-7-505(2).
(b) If a taxpayer needs an extension of time to file a return, as provided in Section 59-7-505 or 59-7-803, a taxpayer shall pay, no later than the due date of the return described in Subsection 59-7-505(2), an amount equal to the lesser of:
(i) the greater of:
(A) 90% of the total tax reported on the return for the current taxable year; or
(B) 100% of the minimum tax described in Section 59-7-104; or
(ii) 100% of the total tax liability for the taxable year immediately preceding the current taxable year.
(c) If payment is not made as provided in Subsection (1)(b), the commission shall add an extension penalty as provided in Section 59-1-401, until the tax is paid during the period of extension.
(2)
(a) For a taxable year beginning on or after January 1, 2019, but beginning on or before December 31, 2019, a taxpayer shall receive an extension of time for the payment of the amount determined as the tax of the taxpayer, or any part of that amount, for the time period that ends on the last day of the extension to pay the taxpayer's federal income tax.
(b)
(i) For a taxable year beginning on or after January 1, 2020, at the request of the taxpayer, the commission may extend the time for payment of the amount determined as the tax by the taxpayer, or any part of that amount, for a period not to exceed six months from the date prescribed for the payment of the tax.
(ii) For purposes of Subsection (2)(b)(i), the taxpayer shall pay the amount for which the extension is granted on or before the day on which the period of the extension expires.
As soon as practicable after the return is filed the commission shall examine it and shall determine the correct amount of the tax.
In case of any failure to make and file a return required by this chapter within the time prescribed by law or prescribed by the commission in pursuance of law, there shall be added to the amount required to be shown as tax on the return a penalty as provided in Section 59-1-401. The amounts so added to any tax shall be collected at the same time and in the same manner and as a part of the tax, unless the tax has been paid before the discovery of the neglect, in which case the amount so added shall be collected in the same manner as the tax.
Interest upon the amount determined as a deficiency shall be assessed at the same time as the deficiency, shall be paid upon notice and demand from the commission, and shall be collected as a part of the tax at the rate and in the manner prescribed in Section 59-1-402.
A penalty shall be added to underpayments of tax as provided in Section 59-1-401.
Where the entire amount determined by the taxpayer as the tax imposed by this chapter is not paid on or before the date prescribed for its payment, there shall be collected as a part of the tax interest upon such unpaid amount at the rate and in the manner prescribed in Section 59-1-402.
If the time for payment of the amount determined as the tax by the taxpayer is extended under the authority of Subsection 59-7-507(2), there shall be collected as a part of such amount interest at the rate prescribed in Section 59-1-402 from the date when such payment should have been made, if no extension had been granted, until payment is received.
(1) Where it is shown to the satisfaction of the commission that the payment of a deficiency upon the date prescribed for the payment thereof will result in undue hardship to the taxpayer, the commission (except where the deficiency is due to negligence, to intentional disregard of rules, or to fraud with intent to evade tax) may grant an extension for the payment of such deficiency or any part thereof for a period not in excess of six months.
(2) If an extension is granted, the commission may require the taxpayer to furnish a bond in such amount, not exceeding double the amount of the deficiency, and with such sureties as the commission deems necessary, conditioned upon the payment of the deficiency in accordance with the terms of the extension.
(1) If the time for the payment of any part of a deficiency is extended, the commission shall collect as a part of the tax interest on the part of the deficiency (the time for payment of which is so extended) at the rate prescribed in Section 59-1-402 for the period of the extension, and shall collect no other interest on such part of the deficiency for such period.
(2) If the part of the deficiency (the time for payment of which is so extended) is not paid in accordance with the terms of the extension, the commission shall collect as a part of the tax interest on such unpaid amount at the rate prescribed in Section 59-1-402 for the period from the time fixed by the terms of the extension for its payment until it is paid, and shall collect no other interest on such unpaid amount for such period.
(1)
(a) Subject to the other provisions of this section, the amount of taxes imposed by this chapter shall be assessed within three years after a return is filed.
(b) After the expiration of the time period described in Subsection (1)(a), a proceeding in court may not be made without assessment for the collection of the taxes described in Subsection (1)(a).
(2) In the case of a deficiency attributable to the application of a net loss carryback, the deficiency may be assessed at any time before the expiration of the period within which a deficiency for the taxable year of the net loss that results in the carryback may be assessed.
(3) If the amount of federal taxable income for any year of any corporation as returned to the United States treasury department is changed or corrected by the commissioner of internal revenue or other officer of the United States or other competent authority, or where a renegotiation of a contract or subcontract with the United States results in a change of federal taxable income, a taxpayer shall:
(a) report the change or corrected net income within 90 days after the final determination of the change or correction as required to the commission; and
(b) concede the accuracy of the determination or state where the determination is erroneous.
(4) Any corporation filing an amended return with the United States treasury department shall also file, within 90 days after the corporation files the amended return with the United States treasury department, an amended return with the commission that contains the information the commission requires.
(5) If a corporation fails to report a change or correction by the commissioner of internal revenue, other officer of the United States, or other competent authority or fails to file an amended return, any deficiency resulting from the change or correction may be assessed and collected within three years after the change, correction, or amended return is reported to or filed with the federal government.
(6) If any corporation agrees with the commissioner of internal revenue for an extension, or a renewal of an extension, of the period for proposing and assessing deficiencies in federal income tax for any year, the period for sending a notice of proposed Utah tax deficiencies for that year is the later of:
(a) three years after the return is filed; or
(b) six months after the date of the expiration of the agreed period for assessing deficiencies in federal income tax.
(7) The extensions described in Section 59-1-1418 apply to this section.
(1) As used in this section, "overpayment" means the same as that term is defined in Section 59-1-1409.
(2)
(a) Subject to Subsection (2)(b), a claim for credit or refund of an overpayment that is attributable to a Utah net loss carry forward shall be filed within three years from the due date of the return for the taxable year of the Utah net loss.
(b) The three-year period described in Subsection (2)(a) shall be extended by any extension of time provided in statute for filing the return described in Subsection (2)(a).
(3) The commission shall make a credit against or refund of any overpayment of a tax under this chapter for a taxable year if, in accordance with Section 59-7-519:
(a)
(i) a corporation agrees with the commissioner of internal revenue for an extension, or a renewal of an extension, of the period for proposing and assessing a deficiency in federal income tax for that taxable year; or
(ii) there is a change in or correction of federal taxable income for that taxable year; and
(b) the corporation files a claim for the credit or refund before the expiration of the time period within which the commission may assess a deficiency.
(4) The commission shall make a credit or refund within a 30-day period after the day on which a court's decision to require the commission to credit or refund the amount of an overpayment to a taxpayer is final.
Each officer or employee of any corporation, who, without fraudulent intent, fails to make, render, sign, or verify any return, or to supply any information within the time required by or under the provisions of this chapter, shall be liable for a penalty as provided in Section 59-1-401, assessed and collected by the commission in the same manner as is provided in this chapter with regard to delinquent taxes.
(1) Each person who, without fraudulent intent, fails to make, render, sign, or verify any return, or to supply any information within the time required by or under the provisions of this chapter, is liable for a civil penalty as provided in Section 59-1-401 imposed, assessed, and collected by the commission in the same manner as provided by this chapter for delinquent taxes.
(2) It is unlawful for any person, with intent to evade any tax, to fail to timely remit the full amount of tax required by the provisions of this chapter. A violation of this section is punishable as provided in Section 59-1-401.
(3) Each person who knowingly or intentionally makes, renders, signs, or verifies any false or fraudulent return or statement or supplies any false or fraudulent information is guilty of a criminal violation as provided in Section 59-1-401.
(4) Each person who, with intent to evade any tax or any requirement of this chapter, fails to make, render, sign, or verify any return, or supply any information within the time required under the provisions of this chapter, is guilty of a criminal violation as provided in Section 59-1-401.
The commission may waive penalties or interest as provided in Section 59-1-401.
(1) The failure to do any act required by the provisions of this chapter shall be considered an act committed in part at the office of the commission.
(2) The certificate of the commission that a tax has not been paid, that a return has not been filed, or that information has not been supplied, as required by or under the provisions of this chapter, shall be prima facie evidence that such tax has not been paid, that such return has not been filed, or that such information has not been supplied.
(1)
(a) The commission shall deposit at least quarterly all revenue collected or received by the commission under this chapter with the state treasurer.
(b) The commission shall, subject to the refund provisions of this section, distribute or credit, at least quarterly and based on a pro rata share of Income Tax Fund and Uniform School Fund appropriations for the current fiscal year, the revenue described in Subsection (1)(a) to:
(i) the Income Tax Fund; and
(ii) the Uniform School Fund in accordance with Section 53F-9-201.1.
(c) The commission may credit to or draw from the Income Tax Fund and the Uniform School Fund:
(i) annually to adjust for differences between estimates and actual amounts; or
(ii) in the proportion described in Subsection (1)(b) to issue a refund.
(2) The commission shall from time to time certify to the state auditor the amount of any refund authorized by it, the amount of interest computed on it under the provisions of Section 59-7-533, from whom the tax to be refunded was collected, or by whom it was paid, and such refund claims shall be paid in order out of the funds first accruing to the Income Tax Fund from the provisions of this section.
Interest shall be allowed and paid upon any overpayment in respect of any tax imposed by this chapter at the rate and in the manner prescribed in Section 59-1-402.
(1) If a tax computed and levied under this chapter is not paid before 5 p.m. on the last day of the 11th month after the date of delinquency, the corporate powers, rights, and privileges of the delinquent taxpayer, if it is a domestic corporation, shall be suspended, and if a foreign corporation, it shall forfeit its rights to do intrastate business in this state.
(2) The commission shall transmit the name of each such corporation to the Division of Corporations and Commercial Code, which shall immediately record the same in such manner that it may be available to the public. This suspension or forfeiture shall become effective from the time such record is made, and the certificate of the Division of Corporations and Commercial Code shall be prima facie evidence of such suspension or forfeiture.
(1) A person is guilty of a class B misdemeanor if:
(a) the person's corporate powers, rights, and privileges have been suspended in accordance with Section 59-7-534; and
(b) the person:
(i) attempts or purports to exercise any of the rights, privileges, or powers of a suspended domestic corporation; or
(ii) transacts or attempts to transact any intrastate business in this state in behalf of a forfeited foreign corporation.
(2) Jurisdiction of the offense shall be in any county in which any part of an action described in Subsection (1)(b) occurred.
(3) Any contract made in violation of this section is unenforceable by a corporation or person described in Subsection (1).
(1)
(a) Any corporation which has suffered the suspension or forfeiture referred to in Section 59-7-534 may be relieved from that suspension or forfeiture by applying for that relief in writing, paying the tax and the interest and penalties for nonpayment of which the suspension or forfeiture occurred, and paying a reinstatement fee of $100. If the corporation has done business in this state during the period of such suspension, a tax shall be computed according to this chapter for each year in which the business was done, and the tax shall be added to the delinquency and penalties provided in this section. If the due date of any return required in this section has not passed, a return need not be filed until that due date.
(b) Application for revivor may be made by any stockholder or creditor of the corporation or by a majority of the surviving trustees or directors, and the same shall be filed with the Division of Corporations and Commercial Code. Upon payment to the commission of the taxes, penalties, and reinstatement fee provided for in this section, the Division of Corporations and Commercial Code shall issue a certificate of revivor, and the applicant shall be revived. The revivor shall be without prejudice to any action, defense, or right which has accrued by reason of the original suspension or forfeiture. The certificate of revivor is prima facie evidence of the revivor.
(2) If any corporation has adopted, subsequent to such suspension or forfeiture, any name so closely resembling the name of the reviving corporation as will tend to deceive, then the reviving corporation is entitled to a certificate of revivor pursuant to the terms of this section only upon adopting a new name, and in such case nothing in this section may be construed as permitting the reviving corporation to carry on any business under its former name. The reviving corporation may use its former name or may take the new name only upon filing an application for it with the Division of Corporations and Commercial Code, and upon the issuing of a certificate to such corporation by the Division of Corporations and Commercial Code, setting forth the right of such corporation to take such new name or use its former name as the case may be. The Division of Corporations and Commercial Code may not issue any certificate permitting any corporation to take or use the name of any corporation already organized in this state and which has not suffered a forfeiture, or take or use a name so closely resembling the name of any corporation already organized in this state as will tend to deceive.
The confidentiality of returns and other information filed with the commission shall be governed by Section 59-1-403.
(1) Except as provided in Subsection (2), when a nonrefundable corporate income tax credit under Part 6, Credits, expires or is repealed, the commission shall allow a taxpayer to carry forward any amount of the tax credit that remains for the period of time described in the tax credit for the taxable year in which the taxpayer first claimed the tax credit.
(2) Subsection (1) does not apply to a tax credit described in Subsection 59-7-607(2)(c)(iv).
(1) There shall be allowed as a credit against the tax an amount equal to 1% of the gross interest income included in state taxable income from:
(a) bonds, notes, or other evidences of indebtedness issued by the state and its agencies and instrumentalities, and bonds, notes, or other evidences of indebtedness of any political subdivision as described in Section 11-14-303; and
(b) stocks, notes, or obligations issued by, or guaranteed by the United States Government, or any of its agencies and instrumentalities as defined under federal law.
(2) Amounts otherwise qualifying for the credit, but not allowable because the credit exceeds the tax, may be carried back three years or may be carried forward five years as a credit against the tax. Such carryover credits shall be applied against the tax before the application of the credits earned in the current year and on a first-earned first-used basis.
(1) As used in this section:
(a) "Allocation certificate" means a certificate in a form prescribed by the commission and issued by the corporation to a housing sponsor that specifies the aggregate amount of the tax credit awarded under this section to a qualified development and includes:
(i) the aggregate annual amount of the tax credit awarded that may be claimed by one or more qualified taxpayers; and
(ii) the credit period over which the tax credit may be claimed by one or more qualified taxpayers.
(b) "Building" means a qualified low-income building as defined in Section 42(c), Internal Revenue Code.
(c) "Corporation" means the Utah Housing Corporation created in Section 63H-8-201.
(d) Except as provided in Subsection (5)(c), "credit period" means the same as that term is defined in Section 42(f)(1), Internal Revenue Code.
(e) "Designated reporter" means, as selected by a housing sponsor, the housing sponsor or one of the housing sponsor's direct or indirect partners, members, or shareholders that will provide information to the commission regarding the allocation of tax credits under this section.
(f) "Federal low-income housing tax credit" means the federal tax credit described in Section 42, Internal Revenue Code.
(g) "Housing sponsor" means an entity that owns a qualified development.
(h) "Pass-through entity" means the same as that term is defined in Section 59-10-1402.
(i)
(i) Subject to Subsection (1)(i)(ii), "pass-through entity taxpayer" means the same as that term is defined in Section 59-10-1402.
(ii) The determination of whether a pass-through entity taxpayer is considered a partner, member, or shareholder of a pass-through entity shall be made in accordance with applicable state law governing the pass-through entity.
(j) "Qualified allocation plan" means a qualified allocation plan adopted by the corporation in accordance with Section 42(m), Internal Revenue Code.
(k) "Qualified development" means a "qualified low-income housing project":
(i) as defined in Section 42(g)(1), Internal Revenue Code; and
(ii) that is located in the state.
(l)
(i) "Qualified taxpayer" means a person that:
(A) owns a direct interest or an indirect interest, through one or more pass-through entities, in a qualified development; and
(B) meets the requirements to claim a tax credit under this section.
(ii) "Qualified taxpayer" includes a pass-through entity taxpayer to which a tax credit under this section is passed through by a pass-through entity.
(2)
(a) A qualified taxpayer may claim a nonrefundable tax credit under this section against taxes otherwise due under this chapter, Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, or Chapter 9, Taxation of Admitted Insurers.
(b) The tax credit shall be in an amount equal to the tax credit amount specified on the allocation certificate that the corporation issues to a housing sponsor under this section.
(c)
(i) For a calendar year beginning on or before December 31, 2016, the aggregate annual tax credit that the corporation may allocate for each year of the credit period in accordance with this section and Section 59-10-1010 is an amount equal to the product of:
(A) 12.5 cents; and
(B) the population of Utah.
(ii) For a calendar year beginning on or after January 1, 2017, but beginning on or before December 31, 2022, the aggregate annual tax credit that the corporation may allocate for each year of the credit period in accordance with this section and Section 59-10-1010 is an amount equal to the product of:
(A) 34.5 cents; and
(B) the population of Utah.
(iii) For a calendar year beginning on or after January 1, 2023, but beginning on or before December 31, 2028, the aggregate annual tax credit that the corporation may allocate for each year of the credit period in accordance with this section and Section 59-10-1010 is $10,000,000.
(iv) For a calendar year beginning on or after January 1, 2024, in addition to the amount of annual tax credits available for allocation as described in Subsections (2)(c)(i) through (2)(c)(iii), the corporation shall have the following tax credit amounts available for allocation:
(A) any tax credits allocated in a calendar year that are subsequently returned to the corporation or recaptured by the corporation may be allocated in the following year, except no tax credits under this Subsection (2)(c)(iv) shall be allocated after December 31, 2028; and
(B) if the actual amount of tax credits allocated in a calendar year to qualified developments is less than the total amount of credits available to be allocated to qualified developments, the balance of the credits but no more than 15% of the total amount of credits available for allocation to qualified developments may be allocated by the corporation to qualified developments in the following calendar year, except no tax credits under this Subsection (2)(c)(iv) shall be allocated after December 31, 2028.
(v) For a calendar year beginning on or after January 1, 2029, the aggregate annual tax credit that the corporation may allocate for each year of the credit period pursuant to this section and Section 59-10-1010 is the amount described in Subsection (2)(c)(ii).
(vi) For purposes of this Subsection (2)(c), the population of Utah shall be determined in accordance with Section 146(j), Internal Revenue Code.
(d)
(i) Subject to Subsection (2)(d)(ii), a qualified taxpayer that is a pass-through entity may allocate a tax credit under this section to one or more of the pass-through entity's pass-through entity taxpayers in any manner agreed upon, regardless of whether:
(A) the pass-through entity taxpayer is eligible to claim any portion of a federal low-income housing tax credit for the qualified development;
(B) the allocation of the tax credit has substantial economic effect within the meaning of Section 704(b), Internal Revenue Code; or
(C) the pass-through entity taxpayer is considered a partner for federal income tax purposes.
(ii) With respect to a tax year, a qualified taxpayer that is a pass-through entity taxpayer may claim a tax credit allocated to the qualified taxpayer by a pass-through entity under Subsection (2)(d)(i) so long as the qualified taxpayer's ownership interest in the pass-through entity is:
(A) acquired on or before December 31 of the tax year to which the tax credit relates; and
(B) reflected in the report required in Subsection (6)(b) for the tax year to which the tax credit relates.
(e) If a qualified taxpayer that is a pass-through entity taxpayer assigns to another taxpayer the pass-through entity taxpayer's ownership interest in a pass-through entity, including the pass-through entity taxpayer's interest in the tax credit associated with the ownership interest, the assignee shall be considered a qualified taxpayer and may claim the tax credit so long as the assignee's ownership interest in the pass-through entity is:
(i) acquired on or before December 31 of the tax year to which the tax credit relates; and
(ii) reflected in the report required in Subsection (6)(b) for the tax year to which the tax credit relates.
(3)
(a) The corporation shall determine criteria and procedures for allocating the tax credit under this section and Section 59-10-1010 and incorporate the criteria and procedures into the corporation's qualified allocation plan.
(b) The corporation shall create the criteria under Subsection (3)(a) based on:
(i) the number of affordable housing units to be created in Utah for low and moderate income persons in a qualified development;
(ii) the level of area median income being served by a qualified development;
(iii) the need for the tax credit for the economic feasibility of a qualified development; and
(iv) the extended period for which a qualified development commits to remain as affordable housing.
(4) Any housing sponsor may apply to the corporation for a tax credit allocation under this section.
(5)
(a)
(i) The corporation shall determine the amount of the tax credit to allocate to a qualified development in accordance with the qualified allocation plan.
(ii)
(A) Before the allocation certificate is issued to the housing sponsor, the corporation shall send to the housing sponsor written notice of the corporation's preliminary determination of the tax credit amount to be allocated to the qualified development.
(B) The notice described in Subsection (5)(a)(ii)(A) shall specify the corporation's preliminary determination of the tax credit amount to be allocated to the qualified development for each year of the credit period and state that allocation of the tax credit is contingent upon the issuance of an allocation certificate.
(iii) Upon approving a final cost certification in accordance with the qualified allocation plan, the corporation shall issue an allocation certificate to the housing sponsor as evidence of the allocation.
(iv) The amount of the tax credit specified in an allocation certificate may not exceed 100% of the federal low-income housing tax credit awarded to a qualified development.
(b)
(i) Notwithstanding Subsection (5)(a), if a housing sponsor applies to the corporation for a tax credit under this section and an allocation certificate is not yet issued, a qualified taxpayer may claim a tax credit based upon the corporation's preliminary determination of the tax credit amount as stated in the notice under Subsection (5)(a)(ii).
(ii) Upon issuance of the allocation certificate to the housing sponsor, a qualified taxpayer that claims a tax credit under this Subsection (5)(b) shall file an amended tax return to adjust the tax credit amount if the amount previously claimed by the qualified taxpayer is different than the amount specified in the allocation certificate.
(c) The amount of tax credit that may be claimed in the first year of the credit period may not be reduced as a result of the calculation in Section 42(f)(2), Internal Revenue Code.
(d) On or before January 31 of each year, the corporation shall provide to the commission in a form prescribed by the commission a report that describes each allocation certificate that the corporation issued during the previous calendar year.
(6)
(a) A housing sponsor shall provide to the commission identification of the housing sponsor's designated reporter.
(b) For each tax year in which a qualified taxpayer claims a tax credit under this section, the designated reporter shall provide to the commission in a form approved by the commission:
(i) a list of each qualified taxpayer that has been allocated a portion of the tax credit awarded in the allocation certificate for that tax year;
(ii) the amount of tax credit that has been allocated to each qualified taxpayer described in Subsection (6)(b)(i) for that tax year; and
(iii) any other information the commission requires to demonstrate that the aggregate annual amount of tax credits allocated to all qualified taxpayers for that tax year does not exceed the aggregate annual tax credit amount specified in the allocation certificate.
(7)
(a) All elections made by a housing sponsor in accordance with Section 42, Internal Revenue Code, shall apply to this section.
(b)
(i) If a qualified development is required to recapture a portion of any federal low-income housing tax credit, then each qualified taxpayer that has been allocated a portion of a tax credit under this section shall also be required to recapture a portion of the tax credit under this section.
(ii) The state recapture amount is equal to the percentage of the state tax credit that equals the proportion the federal recapture amount bears to the original federal low-income housing tax credit amount subject to recapture.
(iii) The designated reporter shall identify each qualified taxpayer that is required to recapture a portion of any state tax credit as described in this Subsection (7)(b).
(8)
(a) The corporation may reallocate any tax credits returned to the corporation in any year within the same time period as provided in Section 42, Internal Revenue Code.
(b) Tax credits that are unallocated by the corporation in any year may be carried over for allocation in subsequent years.
(9)
(a) If a tax credit is not claimed by a qualified taxpayer in the year in which it is earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax credit may be carried back three years or may be carried forward five years as a credit against the tax.
(b) Carryover tax credits under Subsection (9)(a) shall be applied against the tax:
(i) before the application of the tax credits earned in the current year; and
(ii) on a first-earned first-used basis.
(10) Any tax credit taken in this section may be subject to an annual audit by the commission.
(11) The corporation shall provide annually an electronic report to the Revenue and Taxation Interim Committee that includes:
(a) the purpose and effectiveness of the tax credits;
(b) any recommendations for legislative changes to the aggregate tax credit amount that the corporation is authorized to allocate each year under Subsection (2)(c); and
(c) the benefits of the tax credits to the state.
(12) The commission may, in consultation with the corporation, make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this section.
(13) As part of the Revenue and Taxation Interim Committee's review of the tax credit required by Section 59-7-159, the Revenue and Taxation Interim Committee shall:
(a) conduct a review of the aggregate tax credit amount that the corporation is authorized to allocate and has allocated each year under Subsection (2)(c); and
(b) consider any recommendations provided by the corporation under Subsection (11)(b).
(1)
(a) For tax years beginning January 1, 1993, and thereafter, there is allowed to a taxpayer subject to Section 59-7-104, as a credit against the tax due, an amount equal to 20% of qualified rehabilitation expenditures, costing more than $10,000, incurred in connection with any residential certified historic building. When qualifying expenditures of more than $10,000 are incurred, the credit allowed by this section shall apply to the full amount of expenditures.
(b) All rehabilitation work to which the credit may be applied shall be approved by the State Historic Preservation Office prior to completion of the rehabilitation project as meeting the Secretary of the Interior's Standards for Rehabilitation so that the office can provide corrective comments to the taxpayer in order to preserve the historical qualities of the building.
(c) Any amount of credit remaining may be carried forward to each of the five taxable years following the qualified expenditures.
(d) The commission, in consultation with the State Historic Preservation Office, shall promulgate rules to implement this section.
(2) As used in this section:
(a) "Certified historic building" means a building that is listed on the National Register of Historic Places within three years of taking the credit under this section or that is located in a National Register Historic District and the building has been designated by the State Historic Preservation Office as being of significance to the district.
(b)
(i) "Qualified rehabilitation expenditures" means any amount properly chargeable to the rehabilitation and restoration of the physical elements of the building, including the historic decorative elements, and the upgrading of the structural, mechanical, electrical, and plumbing systems to applicable codes.
(ii) "Qualified rehabilitation expenditures" does not include expenditures related to:
(A) the taxpayer's personal labor;
(B) cost of acquisition of the property;
(C) any expenditure attributable to the enlargement of an existing building;
(D) rehabilitation of a certified historic building without the approval required in Subsection (1)(b); or
(E) any expenditure attributable to landscaping and other site features, outbuildings, garages, and related features.
(c) "Residential" means a building used for residential use, either owner occupied or income producing.
(1) Subject to other provisions of this section, a taxpayer that is a business operating in a recycling market development zone as defined in Section 19-13-102 may claim the following nonrefundable tax credits:
(a) a tax credit equal to the product of the percentage listed in Subsection 59-7-104(2) and the purchase price paid for machinery and equipment used directly in:
(i) commercial composting; or
(ii) manufacturing facilities or plant units that:
(A) manufacture, process, compound, or produce recycled items of tangible personal property for sale; or
(B) reduce or reuse postconsumer waste material; and
(b) a tax credit equal to the lesser of:
(i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test inventory, and utilities made by the taxpayer for establishing and operating recycling or composting technology in the state; and
(ii) $2,000.
(2)
(a) To claim a tax credit described in Subsection (1), the taxpayer shall receive from the Department of Environmental Quality a written certification, on a form approved by the commission, that includes:
(i) a statement that the taxpayer is operating a business within the boundaries of a recycling market development zone;
(ii) for a claim of the tax credit described in Subsection (1)(a):
(A) the type of the machinery and equipment that the taxpayer purchased;
(B) the date that the taxpayer purchased the machinery and equipment;
(C) the purchase price for the machinery and equipment;
(D) the total purchase price for all machinery and equipment for which the taxpayer is claiming a tax credit;
(E) a statement that the machinery and equipment are integral to the composting or recycling process; and
(F) the amount of the taxpayer's tax credit; and
(iii) for a claim of the tax credit described in Subsection (1)(b):
(A) the type of net expenditure that the taxpayer made to a third party;
(B) the date that the taxpayer made the payment to a third party;
(C) the amount that the taxpayer paid to each third party;
(D) the total amount that the taxpayer paid to all third parties;
(E) a statement that the net expenditures support the establishment and operation of recycling or composting technology in the state; and
(F) the amount of the taxpayer's tax credit.
(b)
(i) The Department of Environmental Quality shall provide a taxpayer seeking to claim a tax credit under Subsection (1) with a copy of the written certification.
(ii) The taxpayer shall retain a copy of the written certification for the same period of time that a person is required to keep books and records under Section 59-1-1406.
(c) The Department of Environmental Quality shall submit to the commission an electronic list that includes:
(i) the name and identifying information of each taxpayer to which the Department of Environmental Quality issues a written certification; and
(ii) for each taxpayer, the amount of each tax credit listed on the written certification.
(3) A taxpayer may not claim a tax credit under Subsection (1)(a), Subsection (1)(b), or both that exceeds 40% of the taxpayer's state income tax liability as the tax liability is calculated:
(a) for the taxable year in which the taxpayer made the purchases or payments;
(b) before any other tax credits the taxpayer may claim for the taxable year; and
(c) before the taxpayer claims a tax credit authorized by this section.
(4) The commission shall make rules governing what information a taxpayer shall file with the commission to verify the entitlement to and amount of a tax credit.
(5) Except as provided in Subsections (6) through (8), a taxpayer may carry forward, to the next three taxable years, the amount of a tax credit described in Subsection (1)(a) that the taxpayer does not use for the taxable year.
(6) A taxpayer may not claim or carry forward a tax credit described in Subsection (1)(a) in a taxable year during which the taxpayer claims or carries forward a tax credit under Section 63N-2-213.
(7) A taxpayer may not claim a tax credit described in Subsection (1)(b) in a taxable year during which the taxpayer claims or carries forward a tax credit under Section 63N-2-213.
(1)
(a) A taxpayer meeting the requirements of this section may claim the following nonrefundable tax credits:
(i) a research tax credit of 5% of the taxpayer's qualified research expenses for the current taxable year that exceed the base amount provided for under Subsection (4);
(ii) a tax credit for a payment to a qualified organization for basic research as provided in Section 41(e), Internal Revenue Code, of 5% for the current taxable year that exceed the base amount provided for under Subsection (4); and
(iii) a tax credit equal to 7.5% of the taxpayer's qualified research expenses for the current taxable year.
(b) Subject to Subsection (5), a taxpayer may claim a tax credit under:
(i) Subsection (1)(a)(i) or (1)(a)(iii), for the taxable year for which the taxpayer incurs the qualified research expenses; or
(ii) Subsection (1)(a)(ii), for the taxable year for which the taxpayer makes the payment to the qualified organization.
(c) The tax credits provided for in this section do not include the alternative incremental credit provided for in Section 41(c)(4), Internal Revenue Code.
(2) For purposes of claiming a tax credit under this section, a unitary group as defined in Section 59-7-101 is considered to be one taxpayer.
(3) Except as specifically provided for in this section:
(a) the tax credits authorized under Subsection (1) shall be calculated as provided in Section 41, Internal Revenue Code; and
(b) the definitions provided in Section 41, Internal Revenue Code, apply in calculating the tax credits authorized under Subsection (1).
(4) For purposes of this section:
(a) the base amount shall be calculated as provided in Sections 41(c) and 41(h), Internal Revenue Code, except that:
(i) the base amount does not include the calculation of the alternative incremental credit provided for in Section 41(c)(4), Internal Revenue Code;
(ii) a taxpayer's gross receipts include only those gross receipts attributable to sources within this state as provided in Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions; and
(iii) notwithstanding Section 41(c), Internal Revenue Code, for purposes of calculating the base amount, a taxpayer:
(A) may elect to be treated as a start-up company as provided in Section 41(c)(3)(B) regardless of whether the taxpayer meets the requirements of Section 41(c)(3)(B)(i)(I) or (II); and
(B) may not revoke an election to be treated as a start-up company under Subsection (4)(a)(iii)(A);
(b) "basic research" is as defined in Section 41(e)(7), Internal Revenue Code, except that the term includes only basic research conducted in this state;
(c) "qualified research" is as defined in Section 41(d), Internal Revenue Code, except that the term includes only qualified research conducted in this state;
(d) "qualified research expenses" is as defined and calculated in Section 41(b), Internal Revenue Code, except that the term includes only:
(i) in-house research expenses incurred in this state; and
(ii) contract research expenses incurred in this state; and
(e) a tax credit provided for in this section is not terminated if a credit terminates under Section 41, Internal Revenue Code.
(5)
(a) If the amount of a tax credit claimed by a taxpayer under Subsection (1)(a)(i) or (ii) exceeds the taxpayer's tax liability under this chapter for a taxable year, the amount of the tax credit exceeding the tax liability:
(i) may be carried forward for a period that does not exceed the next 14 taxable years; and
(ii) may not be carried back to a taxable year preceding the current taxable year.
(b) A taxpayer may not carry forward the tax credit allowed by Subsection (1)(a)(iii).
(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for purposes of this section prescribing a certification process for qualified organizations to ensure that amounts paid to the qualified organizations are for basic research conducted in this state.
(7) If a provision of Section 41, Internal Revenue Code, is modified or repealed, the commission shall provide an electronic report of the modification or repeal to the Revenue and Taxation Interim Committee within 60 days after the day on which the modification or repeal becomes effective.
(8)
(a) The Revenue and Taxation Interim Committee shall review the tax credits provided for in this section on or before October 1 of the year after the year in which the commission reports under Subsection (7) a modification or repeal of a provision of Section 41, Internal Revenue Code.
(b) The review described in Subsection (8)(a) is in addition to the review required by Section 59-7-159.
(c) Notwithstanding Subsection (8)(a), the Revenue and Taxation Interim Committee is not required to review the tax credits provided for in this section if the only modification to a provision of Section 41, Internal Revenue Code, is the extension of the termination date provided for in Section 41(h), Internal Revenue Code.
(d) The Revenue and Taxation Interim Committee shall address in a review under this section:
(i) the cost of the tax credits provided for in this section;
(ii) the purpose and effectiveness of the tax credits provided for in this section;
(iii) whether the tax credits provided for in this section benefit the state; and
(iv) whether the tax credits provided for in this section should be:
(A) continued;
(B) modified; or
(C) repealed.
(e) If the Revenue and Taxation Interim Committee reviews the tax credits provided for in this section, the committee shall issue a report of the Revenue and Taxation Interim Committee's findings.
(1) As used in this section:
(a)
(i) "Active solar system" means a system of equipment that is capable of:
(A) collecting and converting incident solar radiation into thermal, mechanical, or electrical energy; and
(B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a separate apparatus to storage or to the point of use.
(ii) "Active solar system" includes water heating, space heating or cooling, and electrical or mechanical energy generation.
(b) "Adequate energy storage" means an energy storage system that:
(i) is capable of storing electrical energy produced by a commercial energy system;
(ii) can provide at least six hours of the commercial energy system's expected peak daily generation; and
(iii) enables the commercial energy system to meet the requirements of being dispatchable and reliable.
(c) "Biomass system" means a system of apparatus and equipment for use in:
(i) converting material into biomass energy, as defined in Section 59-12-102; and
(ii) transporting the biomass energy by separate apparatus to the point of use or storage.
(d) "Clean energy source" means the same as that term is defined in Section 54-17-601.
(e) "Commercial energy system" means a system that is:
(i)
(A) an active solar system;
(B) a biomass system;
(C) a direct use geothermal system;
(D) a geothermal electricity system;
(E) a geothermal heat pump system;
(F) a hydroenergy system;
(G) a passive solar system; or
(H) a wind system;
(ii) located in the state; and
(iii) used:
(A) to supply energy to a commercial unit; or
(B) as a commercial enterprise.
(f) "Commercial enterprise" means an entity, the purpose of which is to produce:
(i) electrical, mechanical, or thermal energy for sale from a commercial energy system; or
(ii) hydrogen for sale from a hydrogen production system.
(g)
(i) "Commercial unit" means a building or structure, other than a residence, that an entity uses to transact business.
(ii) Notwithstanding Subsection (1)(g)(i):
(A) with respect to an active solar system used for agricultural water pumping or a wind system, each individual energy generating device is considered to be a commercial unit; or
(B) if an energy system is the building or structure that an entity uses to transact business, a commercial unit is the complete energy system itself.
(h) "Direct use geothermal system" means a system of apparatus and equipment that enables the direct use of geothermal energy to meet energy needs, including heating a building, an industrial process, and aquaculture.
(i) "Dispatchable" means the same as that term is defined in Section 79-6-102.
(j) "Geothermal electricity" means energy that is:
(i) contained in heat that continuously flows outward from the earth; and
(ii) used as a sole source of energy to produce electricity.
(k) "Geothermal energy" means energy generated by heat that is contained in the earth.
(l) "Geothermal heat pump system" means a system of apparatus and equipment that:
(i) enables the use of thermal properties contained in the earth at temperatures well below 100 degrees Fahrenheit; and
(ii) helps meet heating and cooling needs of a structure.
(m) "Hydroenergy system" means a system of apparatus and equipment that is capable of:
(i) intercepting and converting kinetic water energy into electrical or mechanical energy; and
(ii) transferring this form of energy by separate apparatus to the point of use or storage.
(n) "Hydrogen production system" means a system of apparatus and equipment, located in this state, that uses:
(i) electricity from a clean energy source to create hydrogen gas from water, regardless of whether the clean energy source is at a separate facility or the same facility as the system of apparatus and equipment; or
(ii) uses renewable natural gas to produce hydrogen gas.
(o) "Interconnection queue" means the list of requests from power generation projects maintained by a transmission provider that are waiting to connect to the electrical grid.
(p) "Office" means the Office of Energy Development created in Section 79-6-401.
(q)
(i) "Passive solar system" means a direct thermal system that utilizes the structure of a building and the structure's operable components to provide for collection, storage, and distribution of heating or cooling during the appropriate times of the year by utilizing the climate resources available at the site.
(ii) "Passive solar system" includes those portions and components of a building that are expressly designed and required for the collection, storage, and distribution of solar energy.
(r) "Peak daily generation" means the total electricity generation during the highest generation month of a calendar year, divided by the number of days in that month.
(s) "Photovoltaic system" means an active solar system that generates electricity from sunlight.
(t)
(i) "Principal recovery portion" means the portion of a lease payment that constitutes the cost a person incurs in acquiring a commercial energy system.
(ii) "Principal recovery portion" does not include:
(A) an interest charge; or
(B) a maintenance expense.
(u) "Reliable" means the same as that term is defined in Section 79-6-102.
(v) "Residential energy system" means the following used to supply energy to or for a residential unit:
(i) an active solar system;
(ii) a biomass system;
(iii) a direct use geothermal system;
(iv) a geothermal heat pump system;
(v) a hydroenergy system;
(vi) a passive solar system; or
(vii) a wind system.
(w)
(i) "Residential unit" means a house, condominium, apartment, or similar dwelling unit that:
(A) is located in the state; and
(B) serves as a dwelling for a person, group of persons, or a family.
(ii) "Residential unit" does not include property subject to a fee under:
(A) Section 59-2-405;
(B) Section 59-2-405.1;
(C) Section 59-2-405.2;
(D) Section 59-2-405.3; or
(E) Section 72-10-110.5.
(x) "Wind system" means a system of apparatus and equipment that is capable of:
(i) intercepting and converting wind energy into mechanical or electrical energy; and
(ii) transferring these forms of energy by a separate apparatus to the point of use, sale, or storage.
(2) A taxpayer may claim an energy system tax credit as provided in this section against a tax due under this chapter for an energy system that is completed and placed in service before January 1, 2028.
(3)
(a) Subject to the other provisions of this Subsection (3), a taxpayer may claim a nonrefundable tax credit under this Subsection (3) with respect to a residential unit the taxpayer owns or uses if:
(i) the taxpayer:
(A) purchases and completes a residential energy system to supply all or part of the energy required for the residential unit; or
(B) participates in the financing of a residential energy system to supply all or part of the energy required for the residential unit; and
(ii) the taxpayer obtains a written certification from the office in accordance with Subsection (8).
(b)
(i) Subject to Subsections (3)(b)(ii) through (iv) and, as applicable, Subsection (3)(c) or (d), the tax credit is equal to 25% of the reasonable costs of each residential energy system installed with respect to each residential unit the taxpayer owns or uses.
(ii) A tax credit under this Subsection (3) may include installation costs.
(iii) A taxpayer may claim a tax credit under this Subsection (3) for the taxable year in which the residential energy system is completed and placed in service.
(iv) If the amount of a tax credit under this Subsection (3) exceeds a taxpayer's tax liability under this chapter for a taxable year, the taxpayer may carry forward the amount of the tax credit exceeding the liability for a period that does not exceed the next four taxable years.
(c) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a residential energy system, other than a photovoltaic system, may not exceed $2,000 per residential unit.
(d) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a photovoltaic system may not exceed:
(i) for a system installed on or after January 1, 2018, but on or before December 31, 2020, $1,600;
(ii) for a system installed on or after January 1, 2021, but on or before December 31, 2021, $1,200;
(iii) for a system installed on or after January 1, 2022, but on or before December 31, 2022, $800;
(iv) for a system installed on or after January 1, 2023, but on or before December 31, 2023, $400; and
(v) for a system installed on or after January 1, 2024, $0.
(e) If a taxpayer sells a residential unit to another person before the taxpayer claims the tax credit under this Subsection (3):
(i) the taxpayer may assign the tax credit to the other person; and
(ii)
(A) if the other person files a return under this chapter, the other person may claim the tax credit under this section as if the other person had met the requirements of this section to claim the tax credit; or
(B) if the other person files a return under Chapter 10, Individual Income Tax Act, the other person may claim the tax credit under Section 59-10-1014 as if the other person had met the requirements of Section 59-10-1014 to claim the tax credit.
(4)
(a) Subject to the other provisions of this Subsection (4), a taxpayer may claim a refundable tax credit under this Subsection (4) with respect to a commercial energy system if:
(i) the commercial energy system does not use:
(A) wind, geothermal electricity, solar, or biomass equipment capable of producing a total of 660 or more kilowatts of electricity; or
(B) solar equipment capable of producing 2,000 or more kilowatts of electricity;
(ii) the taxpayer purchases or participates in the financing of the commercial energy system;
(iii)
(A) the commercial energy system supplies all or part of the energy required by commercial units owned or used by the taxpayer; or
(B) the taxpayer sells all or part of the energy produced by the commercial energy system as a commercial enterprise;
(iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (7) for hydrogen production using electricity for which the taxpayer claims a tax credit under this Subsection (4); and
(v) the taxpayer obtains a written certification from the office in accordance with Subsection (8).
(b)
(i) Subject to Subsections (4)(b)(ii) through (iv), the tax credit is equal to 10% of the reasonable costs of the commercial energy system.
(ii) A tax credit under this Subsection (4) may include installation costs.
(iii) A taxpayer is eligible to claim a tax credit under this Subsection (4) for the taxable year in which the commercial energy system is completed and placed in service.
(iv) The total amount of tax credit a taxpayer may claim under this Subsection (4) may not exceed $50,000 per commercial unit.
(c)
(i) Subject to Subsections (4)(c)(ii) and (iii), a taxpayer that is a lessee of a commercial energy system installed on a commercial unit may claim a tax credit under this Subsection (4) if the taxpayer confirms that the lessor irrevocably elects not to claim the tax credit.
(ii) A taxpayer described in Subsection (4)(c)(i) may claim as a tax credit under this Subsection (4) only the principal recovery portion of the lease payments.
(iii) A taxpayer described in Subsection (4)(c)(i) may claim a tax credit under this Subsection (4) for a period that does not exceed seven taxable years after the day on which the lease begins, as stated in the lease agreement.
(5)
(a) Subject to the other provisions of this Subsection (5), a taxpayer may claim a refundable tax credit under this Subsection (5) with respect to a commercial energy system if:
(i) the commercial energy system uses wind, geothermal electricity, or biomass equipment capable of producing a total of 660 or more kilowatts of electricity;
(ii)
(A) the commercial energy system supplies all or part of the energy required by commercial units owned or used by the taxpayer; or
(B) the taxpayer sells all or part of the energy produced by the commercial energy system as a commercial enterprise;
(iii) for a commercial energy system using wind, the system includes adequate energy storage;
(iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (7) for hydrogen production using electricity for which the taxpayer claims a tax credit under this Subsection (5); and
(v) the taxpayer obtains a written certification from the office in accordance with Subsection (8).
(b)
(i) Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal to the product of:
(A) 0.35 cents; and
(B) the kilowatt hours of electricity produced and used or sold during the taxable year.
(ii) A taxpayer is eligible to claim a tax credit under this Subsection (5) for production occurring during a period of 48 months beginning with the month in which the commercial energy system is placed in commercial service.
(c) For purposes of calculating the tax credit under this Subsection (5), electricity that is stored and later sold may only be counted at the time the electricity is sold from storage.
(d) A taxpayer that is a lessee of a commercial energy system installed on a commercial unit may claim a tax credit under this Subsection (5) if the taxpayer confirms that the lessor irrevocably elects not to claim the tax credit.
(e) Notwithstanding Subsection (5)(a)(iii), a commercial energy system is exempt from the energy storage requirement if the system had a position in an interconnection queue or a signed agreement with a transmission provider before January 1, 2025.
(6)
(a) Subject to the other provisions of this Subsection (6), a taxpayer may claim a refundable tax credit as provided in this Subsection (6) if:
(i) the taxpayer owns a commercial energy system that:
(A) uses solar equipment capable of producing a total of 660 or more kilowatts of electricity; and
(B) includes adequate energy storage;
(ii)
(A) the commercial energy system supplies all or part of the energy required by commercial units owned or used by the taxpayer; or
(B) the taxpayer sells all or part of the energy produced by the commercial energy system as a commercial enterprise;
(iii) the taxpayer does not claim a tax credit under Subsection (4) and has not claimed and will not claim a tax credit under Subsection (7) for hydrogen production using electricity for which a taxpayer claims a tax credit under this Subsection (6); and
(iv) the taxpayer obtains a written certification from the office in accordance with Subsection (8).
(b)
(i) Subject to Subsection (6)(b)(ii), a tax credit under this Subsection (6) is equal to the product of:
(A) 0.35 cents; and
(B) the kilowatt hours of electricity produced and used or sold during the taxable year.
(ii) A taxpayer is eligible to claim a tax credit under this Subsection (6) for production occurring during a period of 48 months beginning with the month in which the commercial energy system is placed in commercial service.
(c) For purposes of calculating the tax credit under this Subsection (6), electricity that is stored and later sold may only be counted at the time the electricity is sold from storage.
(d) A taxpayer that is a lessee of a commercial energy system installed on a commercial unit may claim a tax credit under this Subsection (6) if the taxpayer confirms that the lessor irrevocably elects not to claim the tax credit.
(e) Notwithstanding Subsection (6)(a)(i)(B), a commercial energy system is exempt from the energy storage requirement if the system had a position in an interconnection queue or a signed agreement with a transmission provider before January 1, 2025.
(7)
(a) A taxpayer may claim a refundable tax credit as provided in this Subsection (7) if:
(i) the taxpayer owns a hydrogen production system;
(ii) the hydrogen production system is completed and placed in service on or after January 1, 2022;
(iii) the taxpayer sells as a commercial enterprise, or supplies for the taxpayer's own use in commercial units, the hydrogen produced from the hydrogen production system;
(iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (4), (5), or (6) or Section 59-7-626 for electricity or hydrogen used to meet the requirements of this Subsection (7); and
(v) the taxpayer obtains a written certification from the office in accordance with Subsection (8).
(b)
(i) Subject to Subsections (7)(b)(ii) and (iii), a tax credit under this Subsection (7) is equal to the product of:
(A) $0.12; and
(B) the number of kilograms of hydrogen produced during the taxable year.
(ii) A taxpayer may not receive a tax credit under this Subsection (7) for more than 5,600 metric tons of hydrogen per taxable year.
(iii) A taxpayer is eligible to claim a tax credit under this Subsection (7) for production occurring during a period of 48 months beginning with the month in which the hydrogen production system is placed in commercial service.
(8)
(a) Before a taxpayer may claim a tax credit under this section, the taxpayer shall obtain a written certification from the office.
(b) The office shall issue a taxpayer a written certification if the office determines that:
(i) the taxpayer meets the requirements of this section to receive a tax credit; and
(ii) the residential energy system, the commercial energy system, or the hydrogen production system with respect to which the taxpayer seeks to claim a tax credit:
(A) has been completely installed;
(B) is a viable system for saving or producing energy from clean resources; and
(C) is safe, reliable, efficient, and technically feasible to ensure that the residential energy system, the commercial energy system, or the hydrogen production system uses the state's clean and nonrenewable energy resources in an appropriate and economic manner.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office may make rules:
(i) for determining whether a residential energy system, a commercial energy system, or a hydrogen production system meets the requirements of Subsection (8)(b)(ii); and
(ii) for purposes of a tax credit under Subsection (3) or (4), establishing the reasonable costs of a residential energy system or a commercial energy system, as an amount per unit of energy production.
(d) A taxpayer that obtains a written certification from the office shall retain the certification for the same time period a person is required to keep books and records under Section 59-1-1406.
(e) The office shall submit to the commission an electronic list that includes:
(i) the name and identifying information of each taxpayer to which the office issues a written certification; and
(ii) for each taxpayer:
(A) the amount of the tax credit listed on the written certification; and
(B) the date the clean energy system was installed.
(9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to address the certification of a tax credit under this section.
(10) A tax credit under this section is in addition to any tax credits provided under the laws or rules and regulations of the United States.
(11) A taxpayer may not claim or carry forward a tax credit described in this section in a taxable year during which the taxpayer claims or carries forward a tax credit under Section 59-7-614.7.
(1) For a taxable year beginning on or after January 1, 2004, a taxpayer may claim a refundable tax credit:
(a) as provided in this section;
(b) against taxes otherwise due under this chapter; and
(c) in an amount equal to the amount of tax the taxpayer pays:
(i) on a purchase of a hand tool:
(A) if the purchase is made on or after July 1, 2004;
(B) if the hand tool is used or consumed primarily and directly in a farming operation in the state; and
(C) if the unit purchase price of the hand tool is more than $250; and
(ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection (1)(c)(i).
(2) A taxpayer:
(a) shall retain the following to establish the amount of tax the resident or nonresident individual paid under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection (1)(c)(i):
(i) a receipt;
(ii) an invoice; or
(iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
(b) may not carry forward or carry back a tax credit under this section.
(3)
(a) In accordance with any rules prescribed by the commission under Subsection (3)(b):
(i) the commission shall make a refund to a taxpayer that claims a tax credit under this section if the amount of the tax credit exceeds the taxpayer's tax liability under this chapter; and
(ii) the Division of Finance shall transfer at least annually from the General Fund into the Income Tax Fund an amount equal to the amount of tax credit claimed under this section.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing procedures for making:
(i) a refund to a taxpayer as required by Subsection (3)(a)(i); or
(ii) transfers from the General Fund into the Income Tax Fund as required by Subsection (3)(a)(ii).
(1) As used in this section:
(a) "Business entity" means a taxpayer that meets the definition of "business entity" as defined in Section 63N-2-103.
(b) "Incremental job" means the same as that term is defined in Section 63N-1a-102.
(c) "New state revenue" means the same as that term is defined in Section 63N-1a-102.
(d) "Office" means the Governor's Office of Economic Development.
(2) Subject to the other provisions of this section, a business entity may claim a refundable tax credit for economic development.
(3) The tax credit under this section is the amount listed as the tax credit amount on the tax credit certificate that the office issues to the business entity for the taxable year.
(4)
(a) In accordance with any rules prescribed by the commission under Subsection (4)(b), the commission shall make a refund to a business entity that claims a tax credit under this section if the amount of the tax credit exceeds the business entity's tax liability for a taxable year.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing procedures for making a refund to a business entity as required by Subsection (4)(a).
(5)
(a) To assist the Revenue and Taxation Interim Committee with the review required by Section 59-7-159, the office shall provide the following information, if available to the office, to the Revenue and Taxation Interim Committee by electronic means:
(i) the amount of tax credit that the office grants to each business entity for each calendar year;
(ii) the criteria that the office uses in granting a tax credit;
(iii) the new state revenue generated by the business entity for the calendar year;
(iv) estimates for each of the next three calendar years of the following:
(A) the amount of tax credits that the office will grant;
(B) the amount of new state revenue that will be generated; and
(C) the number of new incremental jobs within the state that will be generated;
(v) the information contained in the office's latest report under Section 63N-2-106; and
(vi) any other information that the Revenue and Taxation Interim Committee requests.
(b) In providing the information described in Subsection (5)(a), the office shall redact information that identifies a recipient of a tax credit under this section.
(c) If, notwithstanding the redactions made under Subsection (5)(b), reporting the information described in Subsection (5)(a) might disclose the identity of a recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to provide the information described in Subsection (5)(a) in the aggregate for all business entities that receive the tax credit under this section.
(1) As used in this section:
(a) "Pass-through entity" is as defined in Section 59-10-1402.
(b) "Pass-through entity taxpayer" is as defined in Section 59-10-1402.
(2) A pass-through entity taxpayer may claim a refundable tax credit against the tax otherwise due under this chapter.
(3) The tax credit described in Subsection (2) is equal to the amount paid or withheld by the pass-through entity on behalf of the pass-through entity taxpayer described in Subsection (2) in accordance with Section 59-10-1403.2.
(4) A pass-through entity taxpayer may not claim a tax credit under this section for an amount for which the pass-through entity taxpayer claims a tax credit under Section 59-10-1103.
(1) As used in this section:
(a) "Motion picture company" means a taxpayer that meets the definition of a motion picture company under Section 63N-8-102.
(b) "Office" means the Governor's Office of Economic Development created in Section 63N-1a-301.
(c) "State-approved production" means the same as that term is defined in Section 63N-8-102.
(2) A motion picture company may claim a refundable tax credit for a state-approved production.
(3) The tax credit under this section is the amount listed as the tax credit amount on the tax credit certificate that the office issues to a motion picture company under Section 63N-8-103 for the taxable year.
(4)
(a) In accordance with any rules prescribed by the commission under Subsection (4)(b), the commission shall make a refund to a motion picture company that claims a tax credit under this section if the amount of the tax credit exceeds the motion picture company's tax liability for a taxable year.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing procedures for making a refund to a motion picture company as required by Subsection (4)(a).
(5)
(a)
(i) To assist the Revenue and Taxation Interim Committee with the review required by Section 59-7-159, the office shall provide the following information, if available to the office, to the Office of the Legislative Fiscal Analyst by electronic means:
(A) the amount of tax credit that the office grants to each motion picture company for each calendar year;
(B) estimates of the amount of tax credit that the office will grant for each of the next three calendar years;
(C) the criteria that the office uses in granting the tax credit;
(D) the dollars left in the state, as defined in Section 63N-8-102, by each motion picture company for each calendar year;
(E) the information contained in the office's latest report under Section 63N-1a-306; and
(F) any other information that the Office of the Legislative Fiscal Analyst requests.
(ii) In providing the information described in Subsection (5)(a)(i), the office shall redact information that identifies a recipient of a tax credit under this section.
(iii) If, notwithstanding the redactions made under Subsection (5)(a)(ii), reporting the information described in Subsection (5)(a)(i) might disclose the identity of a recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to provide the information described in Subsection (5)(a)(i) in the aggregate for all motion picture companies that receive the tax credit under this section.
(b) The Office of the Legislative Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a summary and analysis of the information provided to the Office of the Legislative Fiscal Analyst by the office under Subsection (5)(a).
(1) As used in this section:
(a) "Business entity" means a corporation that meets the definition of "business entity" as that term is defined in Section 63N-2-202.
(b) "Office" means the Governor's Office of Economic Development created in Section 63N-1a-301.
(2) Subject to the provisions of this section, for a taxable year beginning before January 1, 2025, a business entity may claim a nonrefundable enterprise zone tax credit as described in Section 63N-2-213.
(3) The enterprise zone tax credit under this section is the amount listed as the tax credit amount on the tax credit certificate that the office issues to the business entity for the taxable year.
(4) A business entity may carry forward a tax credit under this section for a period that does not exceed the next three taxable years, if the amount of the tax credit exceeds the business entity's tax liability under this chapter for that taxable year.
(5)
(a)
(i) To assist the Revenue and Taxation Interim Committee with the review required by Section 59-7-159, the office shall provide by electronic means the following information for each calendar year to the Office of the Legislative Fiscal Analyst:
(A) the amount of tax credits provided in each development zone;
(B) the number of new full-time employee positions reported to obtain tax credits in each development zone;
(C) the amount of tax credits awarded for rehabilitating a building in each development zone;
(D) the amount of tax credits awarded for investing in a plant, equipment, or other depreciable property in each development zone;
(E) the information related to the tax credit contained in the office's latest report under Section 63N-1a-301; and
(F) any other information that the Office of the Legislative Fiscal Analyst requests.
(ii) In providing the information described in Subsection (5)(a)(i), the office shall redact information that identifies a recipient of a tax credit under this section.
(iii) If, notwithstanding the redactions made under Subsection (5)(a)(ii), reporting the information described in Subsection (5)(a)(i) might disclose the identity of a recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to provide the information described in Subsection (5)(a)(i) in the aggregate for all development zones that receive the tax credit under this section.
(b) The Office of the Legislative Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a summary and analysis of the information provided to the Office of the Legislative Fiscal Analyst by the office under Subsection (5)(a).
(1) As used in this section:
(a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air Conservation Act.
(b) "Director" means the director of the Division of Air Quality appointed under Section 19-2-107.
(c) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to vehicle classifications established by the Federal Highway Administration.
(d) "Natural gas" includes compressed natural gas and liquified natural gas.
(e) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
(i) has never been titled or registered and has been driven less than 7,500 miles; and
(ii) is fueled by natural gas, has a 100% electric drivetrain, or has a hydrogen-electric drivetrain.
(f) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
(g) "Qualified taxpayer" means a taxpayer that:
(i) purchases a qualified heavy duty vehicle; and
(ii) receives a tax credit certificate from the director.
(h) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and owned by a single taxpayer.
(i) "Tax credit certificate" means a certificate issued by the director certifying that a taxpayer is entitled to a tax credit as provided in this section and stating the amount of the tax credit.
(2) A qualified taxpayer may claim a nonrefundable tax credit against tax otherwise due under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act:
(a) in an amount equal to:
(i) $15,000, if the qualified purchase occurs during calendar year 2021;
(ii) $13,500, if the qualified purchase occurs during calendar year 2022;
(iii) $12,000, if the qualified purchase occurs during calendar year 2023;
(iv) $10,500, if the qualified purchase occurs during calendar year 2024;
(v) $9,000, if the qualified purchase occurs during calendar year 2025;
(vi) $7,500, if the qualified purchase occurs during calendar year 2026;
(vii) $6,000, if the qualified purchase occurs during calendar year 2027;
(viii) $4,500, if the qualified purchase occurs during calendar year 2028;
(ix) $3,000, if the qualified purchase occurs during calendar year 2029; and
(x) $1,500, if the qualified purchase occurs during calendar year 2030; and
(b) if the qualified taxpayer certifies under oath that over 50% of the miles that the heavy duty vehicle that is the subject of the qualified purchase will travel annually will be within the state.
(3)
(a) Except as provided in Subsection (3)(b), a taxpayer may not submit an application for, and the director may not issue to the taxpayer, a tax credit certificate under this section in any taxable year for a qualified purchase if the director has already issued tax credit certificates to the taxpayer for 10 qualified purchases in the same taxable year.
(b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of tax credits under Subsection (5) has not been claimed, a taxpayer may submit an application for, and the director may issue to the taxpayer, one or more tax credit certificates for up to eight additional qualified purchases, even if the director has already issued to that taxpayer tax credit certificates for the maximum number of qualified purchases allowed under Subsection (3)(a).
(4)
(a) Subject to Subsection (4)(b), the director shall reserve 25% of all tax credits available under this section for qualified taxpayers with a small fleet.
(b) Subsection (4)(a) does not prevent a taxpayer from submitting an application for, or the director from issuing, a tax credit certificate if, before October 1, qualified taxpayers with a small fleet have not reserved under Subsection (5)(b) tax credits for the full amount reserved under Subsection (4)(a).
(5)
(a) The aggregate annual total amount of tax credits represented by tax credit certificates that the director issues under this section and Section 59-10-1033.1 may not exceed $500,000.
(b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to establish a process under which a taxpayer may reserve a potential tax credit under this section for a limited time to allow the taxpayer to make a qualified purchase with the assurance that the aggregate limit under Subsection (5)(a) will not be met before the taxpayer is able to submit an application for a tax credit certificate.
(6)
(a)
(i) A taxpayer wishing to claim a tax credit under this section shall, using forms the board requires by rule:
(A) submit to the director an application for a tax credit;
(B) provide the director proof of a qualified purchase; and
(C) submit to the director the certification under oath required under Subsection (2)(b).
(ii) Upon receiving the application, proof, and certification required under Subsection (6)(a)(i), the director shall provide the taxpayer a written statement from the director acknowledging receipt of the proof.
(b) If the director determines that a taxpayer qualifies for a tax credit under this section, the director shall:
(i) determine the amount of tax credit the taxpayer is allowed under this section; and
(ii) provide the taxpayer with a written tax credit certificate:
(A) stating that the taxpayer has qualified for a tax credit; and
(B) showing the amount of tax credit for which the taxpayer has qualified under this section.
(c) A qualified taxpayer shall retain the tax credit certificate.
(d) The director shall at least annually submit to the commission a list of all qualified taxpayers to which the director has issued a tax credit certificate and the amount of each tax credit represented by the tax credit certificates.
(7) The tax credit under this section is allowed only:
(a) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year by the qualified taxpayer;
(b) for the taxable year in which the qualified purchase occurs; and
(c) once per vehicle.
(8) A qualified taxpayer may not assign a tax credit or a tax credit certificate under this section to another person.
(9) If the qualified taxpayer receives a tax credit certificate under this section that allows a tax credit in an amount that exceeds the qualified taxpayer's tax liability under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, for a taxable year, the qualified taxpayer may carry forward the amount of the tax credit that exceeds the tax liability for a period that does not exceed the next five taxable years.
(1) As used in this section:
(a) "High cost infrastructure project" means the same as that term is defined in Section 79-6-602.
(b) "Infrastructure cost-burdened entity" means the same as that term is defined in Section 79-6-602.
(c) "Infrastructure-related revenue" means the same as that term is defined in Section 79-6-602.
(d) "Office" means the Office of Energy Development created in Section 79-6-401.
(2)
(a) Subject to the other provisions of this section, a corporation that is an infrastructure cost-burdened entity may claim a nonrefundable tax credit for development of a high cost infrastructure project as provided in this section.
(b) A corporation that is an infrastructure cost-burdened entity may not claim a tax credit under this section and under Section 59-5-305 using the same tax credit certificate.
(3) The tax credit under this section is the amount listed as the tax credit amount on a tax credit certificate that the office issues under Title 79, Chapter 6, Part 6, High Cost Infrastructure Development Tax Credit Act, to the infrastructure cost-burdened entity for the taxable year.
(4) An infrastructure cost-burdened entity may carry forward a tax credit under this section for a period that does not exceed the next seven taxable years if:
(a) the infrastructure cost-burdened entity is allowed to claim a tax credit under this section for a taxable year; and
(b) the amount of the tax credit exceeds the infrastructure cost-burdened entity's tax liability under this chapter for that taxable year.
(5)
(a)
(i) To assist the Revenue and Taxation Interim Committee with the review required by Section 59-7-159, the office shall provide the following information, if available to the office, to the Office of the Legislative Fiscal Analyst:
(A) the amount of tax credit that the office grants to each infrastructure cost-burdened entity for each taxable year;
(B) the infrastructure-related revenue generated by each high cost infrastructure project;
(C) the information contained in the office's latest report under Section 79-6-605; and
(D) any other information that the Office of the Legislative Fiscal Analyst requests.
(ii) In providing the information described in Subsection (5)(a)(i), the office shall redact information that identifies a recipient of a tax credit under this section.
(iii) If, notwithstanding the redactions made under Subsection (5)(a)(ii), reporting the information described in Subsection (5)(a)(i) might disclose the identity of a recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to provide the information described in Subsection (5)(a)(i) in the aggregate for all infrastructure cost-burdened entities that receive the tax credit under this section.
(b) The Office of the Legislative Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a summary and analysis of the information provided to the Office of the Legislative Fiscal Analyst by the office under Subsection (5)(a).
(6) Notwithstanding Section 59-7-903, the commission may not remove the tax credit described in this section from the tax return for a taxable year beginning before January 1, 2027.
(1) As used in this section, "office" means the Governor's Office of Economic Development created in Section 63N-1a-301.
(2) Subject to the other provisions of this section, a taxpayer may claim a nonrefundable tax credit for rural job creation as provided in this section.
(3) The tax credit under this section is the amount listed as the tax credit amount on a tax credit certificate that the office issues under Title 63N, Chapter 4, Part 3, Utah Rural Jobs Act, to the taxpayer for the taxable year.
(4) If the amount of a tax credit under this section exceeds the taxpayer's tax liability under this chapter for the taxable year in which the taxpayer claims the tax credit, the taxpayer may carry forward the tax credit for:
(a) the next seven taxable years, if the credit-eligible contribution as defined in Section 63N-4-302 is made before November 1, 2022; or
(b) the next four taxable years, if the credit-eligible contribution as defined in Section 63N-4-302 is made on or after November 1, 2022.
(1) As used in this section:
(a) "Guaranty association assessment" means the amount of any assessments paid by a qualified insurer under the guaranty association established under Title 31A, Chapter 28, Part 1, Utah Life and Health Insurance Guaranty Association Act, in the manner provided by Section 31A-28-113.
(b) "Qualified insurer" means an insurer, as defined in Section 31A-1-301, that is not subject to the premium tax on health care insurance under Section 59-9-101.
(2) For a taxable year beginning on or after January 1, 2019, a qualified insurer may claim a nonrefundable tax credit equal to 20% of the assessment for each of the five years following the year the qualified insurer pays a guaranty association assessment, in accordance with Section 31A-28-113.
(3)
(a) A qualified insurer may carry forward the portion of the tax credit that exceeds the qualified insurer's tax liability for the taxable year in accordance with Section 31A-28-113.
(b) A qualified insurer may not carry back the portion of the tax credit that exceeds the qualified insurer's tax liability for the taxable year.
(1) A taxpayer that makes a donation to the Carson Smith Opportunity Scholarship Program established in Section 53E-7-402 may claim a nonrefundable tax credit equal to 100% of the amount stated on a tax credit certificate issued in accordance with Section 53E-7-407.
(2) A taxpayer may claim the tax credit described in Subsection (1) for the taxable year indicated on the tax credit certificate issued in accordance with Section 53E-7-407.
(3) A taxpayer may not claim the tax credit described in Subsection (1) for a donation to the extent the taxpayer claims the donation as a deduction or credit against the taxpayer's federal income taxes for any taxable year.
(1) As used in this section:
(a) "Commercial enterprise" means an entity, the purpose of which is to produce hydrogen for sale from a hydrogen production system.
(b) "Commercial unit" means a building or structure that an entity uses to transact business.
(c) "Hydrogen production system" means a system of apparatus and equipment, located in this state, that produces hydrogen from nonrenewable sources.
(d) "Office" means the Office of Energy Development created in Section 79-6-401.
(2)
(a) A taxpayer may claim a refundable credit under this section if:
(i) the taxpayer owns a hydrogen production system;
(ii) the hydrogen production system is completed and placed in service on or after January 1, 2022;
(iii) the taxpayer sells as a commercial enterprise, or supplies for the taxpayer's own use in commercial units, the hydrogen produced from the hydrogen production system;
(iv) the taxpayer has not claimed and will not claim a tax credit under Section 59-7-614 for electricity used to meet the requirements of this section; and
(v) the taxpayer obtains a written certification from the office in accordance with Subsection (3).
(b)
(i) Subject to Subsections (2)(b)(ii) and (iii), a tax credit under this section is equal to the product of:
(A) $0.12; and
(B) the number of kilograms of hydrogen produced during the taxable year.
(ii) A taxpayer may not receive a tax credit under this section for more than 5,600 metric tons of hydrogen per taxable year.
(iii) A taxpayer is eligible to claim a tax credit under this section for production occurring during a period of 48 months beginning with the month in which the hydrogen production system is placed in commercial service.
(3)
(a) Before a taxpayer may claim a tax credit under this section, the taxpayer shall obtain a written certification from the office.
(b) The office shall issue a taxpayer a written certification if the office determines that:
(i) the taxpayer meets the requirements of this section to receive a tax credit; and
(ii) the hydrogen production system with respect to which the taxpayer seeks to claim a tax credit:
(A) has been completely installed; and
(B) is safe, reliable, efficient, and technically feasible to ensure that the hydrogen production system uses the state's nonrenewable energy resources in an appropriate and economic manner.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office may make rules for determining whether a hydrogen production system meets the requirements of Subsection (3)(b)(ii).
(d) A taxpayer that obtains a written certification from the office shall retain the certification for the same time period a person is required to keep books and records under Section 59-1-1406.
(e) The office shall submit to the commission an electronic list that includes:
(i) the name and identifying information of each taxpayer to which the office issues a written certification; and
(ii) for each taxpayer:
(A) the amount of the tax credit listed on the written certification; and
(B) the date the hydrogen production system was installed.
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to address the certification of a tax credit under this section.
(5) A tax credit under this section is in addition to any tax credits provided under the laws or rules and regulations of the United States.
(1) As used in this section:
(a) "Eligible small business" means the same as that term is defined in Section 45F, Internal Revenue Code.
(b) "Off-site qualified child care facility" means a qualified child care facility that an employer does not own, control, operate, or manage.
(c) "On-site qualified child care facility" means a qualified child care facility that an employer owns, controls, operates, or manages, for the benefit of the employer's employees.
(d)
(i) "Qualified child care expenditure" means an amount an employer pays or incurs for:
(A) the operating costs of an on-site qualified child care facility, whether the employer operates the on-site qualified child care facility or contracts with a third party provider to provide child care services at the on-site qualified child care facility;
(B) entering into a contract with an off-site qualified child care facility to provide child care services for the employer's employees; or
(C) entering into a contract with an intermediate entity that contracts with one or more off-site qualified child care facilities to provide child care services for the employer's employees.
(ii) For an employer that operates an on-site qualified child care facility, "qualified child care expenditure" includes costs related to training employees and providing increased compensation to employees with higher levels of child care training.
(e) "Qualified child care facility" means center based child care as that term is defined in Section 26B-2-401 that is located in the state.
(f) "Qualified construction expenditure" means an amount an employer pays or incurs to acquire, construct, rehabilitate, or expand property:
(i) for an on-site qualified child care facility; and
(ii) with respect to which the employer is allowed a deduction for depreciation, or amortization in lieu of depreciation.
(g) "Qualifying taxpayer" means a taxpayer that:
(i) is an employer;
(ii) qualifies for and claims the federal employer-provided child care tax credit described in Section 45F, Internal Revenue Code, for the current taxable year; and
(iii) does not obtain payment from an employee or deduct from an employee's salary or wages for child care services, with respect to any qualified child care facility for which the taxpayer claims a tax credit under this section.
(h) "Recapture event" means an employer fails to operate an on-site qualified child care facility for which the employer claims a tax credit under Subsection (2) as a child care facility for at least five consecutive taxable years after the taxable year on which the employer first claims a tax credit under Subsection (2).
(i) "Third party provider" means:
(i) a new child care provider; or
(ii) an existing child care provider that can perform the contract without reducing the provider's existing child care services.
(2)
(a) A qualifying taxpayer may claim a nonrefundable tax credit equal to 20% of the qualified construction expenditures the qualifying taxpayer incurred during the taxable year.
(b) A qualifying taxpayer may carry forward, to the next five taxable years, the amount of the qualifying taxpayer's tax credit described in this Subsection (2) that exceeds the qualifying taxpayer's income tax liability for the taxable year.
(3)
(a) A qualifying taxpayer may claim a nonrefundable tax credit equal to:
(i) 30% of the qualified child care expenditures the qualifying taxpayer incurred during the taxable year, for a qualifying taxpayer that qualifies as an eligible small business for the taxable year; or
(ii) 10% of the qualified child care expenditures the qualifying taxpayer incurred during the taxable year, for a qualifying taxpayer that does not qualify as an eligible small business for the taxable year.
(b) A qualifying taxpayer may not carry forward or carry back the tax credit described in this Subsection (3) that exceeds the qualifying taxpayer's income tax liability for the taxable year.
(4)
(a)
(i) If a recapture event happens within two taxable years after the first taxable year in which the qualifying taxpayer claims a tax credit under this section, a qualifying taxpayer shall repay 100% of the tax credit a qualifying taxpayer receives under this section for any taxable year.
(ii) If a recapture event happens more than two taxable years but fewer than three taxable years after the first taxable year in which the qualifying taxpayer claims a tax credit under this section, a qualifying taxpayer shall repay 75% of the tax credit a qualifying taxpayer receives under this section for any taxable year.
(iii) If a recapture event happens more than three taxable years but fewer than four taxable years after the first taxable year in which the qualifying taxpayer claims a tax credit under this section, a qualifying taxpayer shall repay 50% of the tax credit a qualifying taxpayer receives under this section for any taxable year.
(iv) If a recapture event happens more than four taxable years but fewer than five taxable years after the first taxable year in which the qualifying taxpayer claims a tax credit under this section, a qualifying taxpayer shall repay 25% of the tax credit a qualifying taxpayer receives under this section for any taxable year.
(b) A qualifying taxpayer shall make a payment for a recapture event for the taxable year in which the recapture event occurs.
(1) Except as provided in Section 59-7-102 and subject to the other provisions of this part, beginning on July 1, 1994, and ending on the last day of the taxable year that begins on or after January 1, 2012, but begins on or before December 31, 2012, an S corporation is subject to taxation in the same manner as that S corporation is taxed under Subchapter S - Tax Treatment of S Corporations and Their Shareholders, Sec. 1361 et seq., Internal Revenue Code.
(2) An S corporation is taxed at the tax rate provided in Section 59-7-104.
(3) The business income and nonbusiness income of an S corporation is subject to Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions.
(4) An S corporation having income derived from or connected with Utah sources shall make a return in accordance with Sections 59-10-507 and 59-10-514.
(5) An S corporation shall make payments of estimated tax as required by Section 59-7-504.
(6) An S corporation is subject to Chapter 10, Part 14, Pass-Through Entities and Pass-Through Entity Taxpayers Act.
(7) A pass-through entity taxpayer as defined in Section 59-10-1402 of an S corporation is subject to Chapter 10, Part 14, Pass-Through Entities and Pass-Through Entity Taxpayers Act.
(8) Provisions under this chapter governing the following apply to an S corporation:
(a) an assessment;
(b) a penalty;
(c) a refund; or
(d) a record required for an S corporation.
The minimum tax provided in Section 59-7-104 does not apply to an S corporation subject to taxation under Section 59-7-701.
Revenues collected or received by the commission under this part shall be deposited daily with the state treasurer and distributed and credited as provided in Section 59-10-544.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to implement this part.
For purposes of this part:
(1) "Unrelated business income" means unrelated business income as determined under Section 512, Internal Revenue Code.
(2) "Utah unrelated business income" means the unrelated business income allocated or apportioned to Utah in accordance with Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions.
(1) An organization which is exempt from taxation as provided in Subsection 59-7-102(1) or Section 59-10-126 shall be subject to the tax imposed by this part on its Utah unrelated business income.
(2) Utah unrelated business income shall be taxed at the rate provided in Section 59-7-104 except that the minimum tax does not apply to organizations subject to the tax under this part.
(1) An organization subject to the tax imposed by this part shall file a state return on or before the date which the exempt organization is required to file its federal exempt organization business income tax return, including extensions.
(2) If a valid federal extension is filed, the extension shall be considered valid for state purposes and payment of tax shall be made as provided in Section 59-7-507.
Net operating losses shall be recognized to the extent recognized for federal purposes even if incurred prior to the effective date of this part.
For purposes of this part, only the property, payroll, and sales included in the computation of unrelated business income or directly related to the unrelated business income of an exempt organization shall be included when apportioning income under Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions.
As used in this part:
(1) "Tax credit" means a nonrefundable tax credit listed on a tax return.
(2) "Tax return" means:
(a) a corporate return as defined in Section 59-7-101 filed in accordance with this chapter; or
(b) a tax return filed in accordance with Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act.
(1) Subject to Subsection (2) and except as provided in Subsection (3), the commission shall remove a tax credit from a tax return and a person filing a tax return may not claim the tax credit if:
(a) the total amount of tax credit claimed or carried forward by all persons who file a tax return is less than $10,000 per taxable year for three consecutive taxable years; and
(b) less than 10 persons per year for the three consecutive taxable years described in Subsection (1)(a) file a tax return claiming or carrying forward the tax credit.
(2) If the commission determines the requirements of Subsection (1) are met, the commission shall remove a tax credit from a tax return and a person filing a tax return may not claim the tax credit beginning two taxable years after the January 1 immediately following the date the commission determines the requirements of Subsection (1) are met.
(3) This section does not apply to a tax credit under Section 59-7-609.
(4) The commission shall, on or before the November interim meeting of the year after the taxable year in which the commission determines the requirements of Subsection (1) are met, report to the Revenue and Taxation Interim Committee by electronic means that, in accordance with this section:
(a) the commission is required to remove a tax credit from a return on which the tax credit appears; and
(b) a person filing a tax return may not claim the tax credit.
(5)
(a) Within a 30-day period after making the report required by Subsection (4), the commission shall publish a list in accordance with Subsection (5)(b) stating each tax credit that the commission will remove from a return on which the tax credit appears.
(b) The list shall:
(i) be published on:
(A) the commission's website; and
(B) the public legal notice website in accordance with Section 45-1-101;
(ii) include a statement that:
(A) the commission is required to remove the tax credit from each return on which the tax credit appears; and
(B) the tax credit may not be claimed on a return;
(iii) state the taxable year for which the removal described in Subsection (5)(a) takes effect; and
(iv) remain available for viewing and searching until the commission publishes a new list in accordance with this Subsection (5).
This chapter is known as the "Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act."
The purpose of this chapter is to provide for the imposition of an in lieu excise tax on the gross receipts of corporations, other than those described in Subsection 59-7-102(3), eleemosynary, religious, or charitable institutions, operating in this state who are not otherwise required to pay income or franchise taxes to the state or to declare dividends.
As used in this chapter:
(1) "Corporation" means:
(a) any domestic corporation organized under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act;
(b) any foreign corporation engaged in business in this state under Sections 16-6a-1501 through 16-6a-1518;
(c) any project entity defined in Section 11-13-103; or
(d) a public agency, as defined in Section 11-13-103, to the extent it owns an interest in facilities providing additional project capacity, as defined in Section 11-13-103.
(2) "Engaging in business" means carrying on or causing to be carried on any activity through which goods or services are made or rendered by the taxpayer, except as provided in Section 59-7-102.
(3) "Gross receipts" means the totality of the consideration that the taxpayer receives for any good or service produced or rendered in the state without any deduction or expense paid or accrued in respect to it.
(4) "Taxpayer" means any corporation, other than an eleemosynary, religious, or charitable institution, any insurance company, credit union, or Subchapter S organization, any nonprofit hospital, educational, welfare, or employee representation organization, or any mutual benefit association engaged in business in the state that is not otherwise required to pay income or franchise tax to the state under Title 59, Chapter 7, Corporate Franchise and Income Taxes.
(1) Beginning on or after July 1, 2006, and subject to Section 11-13-303, an in lieu excise tax is imposed on the gross receipts of a taxpayer engaging in business in the state of Utah in each taxable year as follows:
| | Gross Receipts Amount | Rate of Tax | | | | --- | --- | --- | --- | --- | | | | Not in excess of $10,000,000 | | None | | | | In excess of $10,000,000 but not in excess of $500,000,000 | | .6250% | | | | In excess of $500,000,000 but not in excess of $1,000,000,000 | | .9375% | | | | In excess of $1,000,000,000 | | 1.2500% |
(2) It is the intent of the Legislature that, as a result of the tax rate decrease provided in Section 59-8-104 of Chapter 221, Laws of Utah 2006, all or a portion of any cost decrease received by a taxpayer as a result of the tax rate decrease be used in whole or in part for expenditures, scholarships, or grants that will benefit the citizens of this state.
(1) Each taxpayer upon whom a gross receipts tax is imposed under this chapter shall file a return with and pay the tax reflected in the return to the commission semiannually on or before the last day of July and January.
(2) All other provisions applicable to the gross receipts tax imposed under this chapter shall be the appropriate provisions provided for in Title 59, Chapter 7, Corporate Franchise and Income Taxes, applied as if the taxpayer under this chapter is a bank or other corporation subject to Title 59, Chapter 7, Corporate Franchise and Income Taxes.
The commission is charged with the administration and enforcement of this chapter and may promulgate such rules under Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as may be required to effectuate the purposes of this chapter.
(1)
(a) Except as provided in Subsection (1)(b), (1)(d), or (5), an admitted insurer shall pay to the commission on or before March 31 in each year, a tax of 2.25% of the total premiums received by admitted insurer during the preceding calendar year from insurance covering property or risks located in this state.
(b) This Subsection (1) does not apply to:
(i) workers' compensation insurance, assessed under Subsection (2);
(ii) title insurance premiums taxed under Subsection (3);
(iii) annuity considerations;
(iv) insurance premiums paid by an institution within the state system of higher education as specified in Section 53H-1-102; and
(v) ocean marine insurance.
(c) The taxable premium under this Subsection (1) shall be reduced by:
(i) the premiums returned or credited to policyholders on direct business subject to tax in this state;
(ii) the premiums received for reinsurance of property or risks located in this state; and
(iii) the dividends, including premium reduction benefits maturing within the year:
(A) paid or credited to policyholders in this state; or
(B) applied in abatement or reduction of premiums due during the preceding calendar year.
(d)
(i) For purposes of this Subsection (1)(d):
(A) "Utah variable life insurance premium" means an insurance premium paid:
(I) by:
(Aa) a corporation; or
(Bb) a trust established or funded by a corporation; and
(II) for variable life insurance covering risks located within the state.
(B) "Variable life insurance" means an insurance policy that provides for life insurance, the amount or duration of which varies according to the investment experience of one or more separate accounts that are established and maintained by the insurer in accordance with Title 31A, Insurance Code.
(ii) Notwithstanding Subsection (1)(a), beginning on January 1, 2006, the tax on that portion of the total premiums subject to a tax under Subsection (1)(a) that is a Utah variable life insurance premium shall be calculated as follows:
(A) 2.25% of the first $100,000 of Utah variable life insurance premiums:
(I) paid for each variable life insurance policy; and
(II) received by the admitted insurer in the preceding calendar year; and
(B) .08% of the Utah variable life insurance premiums that exceed $100,000:
(I) paid for the policy described in Subsection (1)(d)(ii)(A); and
(II) received by the admitted insurer in the preceding calendar year.
(2)
(a) An admitted insurer writing workers' compensation insurance in this state shall pay to the tax commission, on or before March 31 in each year, a premium assessment on the basis of the total workers' compensation premium income received by the insurer from workers' compensation insurance in this state during the preceding calendar year as follows:
(i) on or before December 31, 2010, an amount of equal to or greater than 1%, but equal to or less than 5.75% of the total workers' compensation premium income described in this Subsection (2);
(ii) on and after January 1, 2011, but on or before December 31, 2022, an amount of equal to or greater than 1%, but equal to or less than 4.25% of the total workers' compensation premium income described in this Subsection (2); and
(iii) on and after January 1, 2023, an amount equal to 1.25% of the total workers' compensation premium income described in this Subsection (2).
(b) Total workers' compensation premium income means the net written premium as calculated before any premium reduction for any insured employer's deductible, retention, or reimbursement amounts and also those amounts equivalent to premiums as provided in Section 34A-2-202.
(c) The percentage of premium assessment applicable for a calendar year shall be determined by the Labor Commission under Subsection (2)(d). The total premium income shall be reduced in the same manner as provided in Subsections (1)(c)(i) and (1)(c)(ii), but not as provided in Subsection (1)(c)(iii). The commission shall promptly remit from the premium assessment collected under this Subsection (2):
(i) income to the state treasurer for credit to the Employers' Reinsurance Fund created under Subsection 34A-2-702(1) as follows:
(A) on or before December 31, 2009, an amount of up to 5% of the total workers' compensation premium income;
(B) on and after January 1, 2010, but on or before December 31, 2010, an amount of up to 4.5% of the total workers' compensation premium income;
(C) on and after January 1, 2011, but on or before December 31, 2022, an amount of up to 3% of the total workers' compensation premium income; and
(D) on and after January 1, 2023, 0% of the total workers' compensation premium income;
(ii) an amount equal to .25% of the total workers' compensation premium income to the state treasurer for credit to the Workplace Safety Account created by Section 34A-2-701;
(iii) an amount of up to .5% and any remaining assessed percentage of the total workers' compensation premium income to the state treasurer for credit to the Uninsured Employers' Fund created under Section 34A-2-704; and
(iv) beginning on January 1, 2010, .5% of the total workers' compensation premium income to the state treasurer for credit to the Industrial Accident Restricted Account created in Section 34A-2-705.
(d)
(i) The Labor Commission shall determine the amount of the premium assessment for each year on or before each October 15 of the preceding year. The Labor Commission shall make this determination following a public hearing. The determination shall be based upon the recommendations of a qualified actuary.
(ii) The actuary shall recommend a premium assessment rate sufficient to provide payments of benefits and expenses from the Employers' Reinsurance Fund and to project a funded condition with assets greater than liabilities by no later than June 30, 2025.
(iii) The actuary shall recommend a premium assessment rate sufficient to provide payments of benefits and expenses from the Uninsured Employers' Fund and to maintain it at a funded condition with assets equal to or greater than liabilities.
(iv) At the end of each fiscal year the minimum approximate assets in the Employers' Reinsurance Fund shall be $5,000,000 which amount shall be adjusted each year beginning in 1990 by multiplying by the ratio that the total workers' compensation premium income for the preceding calendar year bears to the total workers' compensation premium income for the calendar year 1988.
(v) The requirements of Subsection (2)(d)(iv) cease when the future annual disbursements from the Employers' Reinsurance Fund are projected to be less than the calculations of the corresponding future minimum required assets. The Labor Commission shall, after a public hearing, determine if the future annual disbursements are less than the corresponding future minimum required assets from projections provided by the actuary.
(vi) At the end of each fiscal year the minimum approximate assets in the Uninsured Employers' Fund shall be $2,000,000, which amount shall be adjusted each year beginning in 1990 by multiplying by the ratio that the total workers' compensation premium income for the preceding calendar year bears to the total workers' compensation premium income for the calendar year 1988.
(e) A premium assessment that is to be transferred into the General Fund may be collected on premiums received from Utah public agencies.
(3) An admitted insurer writing title insurance in this state shall pay to the commission, on or before March 31 in each year, a tax of .45% of the total premium received by either the insurer or by its agents during the preceding calendar year from title insurance concerning property located in this state. In calculating this tax, "premium" includes the charges made to an insured under or to an applicant for a policy or contract of title insurance for:
(a) the assumption by the title insurer of the risks assumed by the issuance of the policy or contract of title insurance; and
(b) abstracting title, title searching, examining title, or determining the insurability of title, and every other activity, exclusive of escrow, settlement, or closing charges, whether denominated premium or otherwise, made by a title insurer, an agent of a title insurer, a title insurance producer, or any of them.
(4) Beginning July 1, 1986, a former county mutual and a former mutual benefit association shall pay the premium tax or assessment due under this chapter. Premiums received after July 1, 1986, shall be considered in determining the tax or assessment.
(5) The following insurers are not subject to the premium tax on health care insurance that would otherwise be applicable under Subsection (1):
(a) an insurer licensed under Title 31A, Chapter 5, Domestic Stock and Mutual Insurance Corporations;
(b) an insurer licensed under Title 31A, Chapter 7, Nonprofit Health Service Insurance Corporations;
(c) an insurer licensed under Title 31A, Chapter 8, Health Maintenance Organizations and Limited Health Plans;
(d) an insurer licensed under Title 31A, Chapter 9, Insurance Fraternals;
(e) an insurer licensed under Title 31A, Chapter 11, Motor Clubs; and
(f) an insurer licensed under Title 31A, Chapter 14, Foreign Insurers.
(6)
(a) As used in this Subsection (6):
(i) "Cancellation fee waiver" means the same as that term is defined in Section 31A-23a-902.
(ii) "Primary certificate holder" means an individual who elects and purchases travel insurance under a group policy.
(iii) "Primary policyholder" means an individual who elects and purchases individual travel insurance.
(iv) "Travel assistance service" means the same as that term is defined in Section 31A-23a-902.
(v) "Travel insurance" means the same as that term is defined in Section 31A-23a-902.
(b) A travel insurer shall:
(i) pay a premium tax required under Subsection (1) on a travel insurance premium that:
(A) an individual primary policyholder pays, if the policyholder is a resident of this state;
(B) a primary certificate holder pays, if the certificate holder is a resident of this state and elects coverage under a group travel insurance policy; or
(C) subject to any apportionment rules that apply to the insurer across multiple taxing jurisdictions or permit the insurer to allocate the premium on an apportioned basis in a reasonable and equitable manner across multiple jurisdictions, a blanket travel insurance policyholder pays for eligible blanket group members, if the policyholder is a resident in this state, has the policyholder's principal place of business in this state, or has the principal place of business of an affiliate or subsidiary that has purchased blanket travel insurance in this state;
(ii) document the state of residence or principal place of business of each policyholder and certificate holder; and
(iii) report as a premium only the amount allocable to travel insurance and not an amount received for:
(A) a cancellation fee waiver; or
(B) a travel assistance service.
(7) A captive insurer, as provided in Section 31A-3-304, that pays a fee imposed under Section 31A-3-304 is not subject to the premium tax under this section.
(8) An insurer issuing multiple policies to an insured may not artificially allocate the premiums among the policies for purposes of reducing the aggregate premium tax or assessment applicable to the policies.
(9) The retaliatory provisions of Title 31A, Chapter 3, Department Funding, Fees, and Taxes, apply to the tax or assessment imposed under this chapter.
(10)
(a) As used in this Subsection (10):
(i) "Diverted revenue" means revenue collected from taxes levied under this section that is not paid into or does not remain in the General Fund because of a statutory provision requiring the revenue to be paid or distributed as provided in that statutory provision.
(ii) "Net revenue" means the total revenue collected from taxes levied under this section, excluding diverted revenue.
(b) For fiscal year 2027 and for fiscal year 2028, the Division of Finance shall transfer $3,700,000 of the revenue collected from taxes levied under this section to the Utah Valley University - Special Projects, Fire and Rescue Training, for the cancer screening program described in Section 34A-3-114.
(c) Beginning fiscal year 2027, the Division of Finance shall transfer $250,000 of the revenue collected from taxes levied under this section to the Utah Valley University - Special Projects, Fire and Rescue Training, for the record keeping system for the cancer screening program described in Section 53H-4-705.
(d) Beginning fiscal year 2027, the Division of Finance shall transfer on an annual basis the net revenue into the Firefighter Cancer Benefit Trust Fund created in Section 53-33-201.
(1) If any authorized insurer doing business in this state during the tax year pays a property tax in this state, the insurer may deduct from the tax provided under this chapter that portion of the property tax paid for general state purposes.
(2) Any domestic insurance company paying a fee for examination under Section 31A-2-205 may deduct from the tax provided under this chapter the amount of the examination fee paid, subject to the limitations of Subsection 31A-2-203(2)(e).
(3) There is offset against the taxes imposed under Section 59-9-101 the amount of any assessments paid by an insurance company under the guaranty associations established under Title 31A, Chapter 28, Guaranty Associations, in the manner provided by Sections 31A-28-113 and 31A-28-212.
(4) There is an offset provided in Section 59-9-102.5 against the premium assessment imposed under Subsection 59-9-101(2) against an admitted insurer writing workers' compensation insurance in this state.
(5) The state has no liability to insurers for any amount by which offsets allowed under this section exceed the insurer's premium tax liability.
(1) As used in this section:
(a) "Occupational health and safety center" means the Rocky Mountain Center for Occupational and Environmental Health created in Title 53H, Chapter 5, Part 2, Rocky Mountain Center for Occupational and Environmental Health.
(b) "Qualified donation" means a donation that is:
(i) cash;
(ii) given directly to an occupational health and safety center; and
(iii) given exclusively for the purpose of:
(A) supporting undergraduate or graduate level education and training in fields of:
(I) safety and ergonomics;
(II) industrial hygiene;
(III) occupational health nursing;
(IV) occupational injury prevention; and
(V) occupational medicine;
(B) providing continuing education programs for employers designed to promote workplace safety; and
(C) paying reasonable administrative, personnel, equipment, and overhead costs of the occupational health and safety center.
(c) "Workers' compensation insurer" means an admitted insurer writing workers' compensation insurance in this state that is required to pay the premium assessment imposed under Subsection 59-9-101(2).
(2)
(a) A workers' compensation insurer may offset against the premium assessment imposed under Subsection 59-9-101(2) an amount equal to the lesser of:
(i) the total of qualified donations made by the workers' compensation insurer in the calendar year for which the premium assessment is calculated; and
(ii) .20% of the workers' compensation insurer's total workers' compensation premium income as defined in Subsection 59-9-101(2)(b) in the calendar year for which the premium assessment is calculated.
(b) The offset provided under this Subsection (2) shall be allocated in proportion to the percentages provided in Subsection 59-9-101(2)(c).
(3) An occupational health and safety center shall:
(a) provide a workers' compensation insurer a receipt for any qualified donation made by the workers' compensation insurer to the occupational health and safety center; and
(b) expend money received by a qualified donation:
(i) for the purposes described in Subsection (1)(b)(iii); and
(ii) in a manner that can be audited to ensure that the money is expended for the purposes described in Subsection (1)(b)(iii).
(1) As used in this section:
(a) "Administrative and claims expense" includes all claims paid, agency expenses, third party administrator expenses, taxes, licenses, fees, loss adjustment expenses, legal expenses, reinsurance premiums, and all other expenses incurred directly in connection with the insurance of Utah risks by the insurer, less any recoveries or reimbursements collected or collectible because of reinsurance or any other source, but only with respect to Utah risks. The administrative and claims expense also includes the pro rata portion attributable to Utah risks of the salaries and fringe benefits, including taxes on salaries, of all personnel responsible for the administration of the insurer, the printing and stationery, and all other expenses attributable to the administration of the insurer. When personnel are engaged in the administration of the insurer as only part of their employment, for purposes of this section their salaries and fringe benefits shall be prorated based on the portion of their time devoted to the administration of the insurer. Appropriate overhead charges shall be included with all the expenses listed in this subsection.
(b) "Utah risks" means insurance coverage on the lives, health, or against the liability of persons residing in Utah, or on property located in Utah, other than property temporarily in transit through Utah.
(2) Except for workers' compensation coverage, which is provided in Subsection (3), and except as provided under Subsection (4), every insurer which provides insurance on Utah risks shall pay to the commission, on or before March 31 of each year, a tax of 2-1/4% of the total administrative and claims expense incurred during the prior calendar year by the insurer. This tax shall be deposited in the General Fund.
(3) Except as provided under Subsection (4), every insurer which provides workers' compensation coverage on persons employed in Utah shall pay to the commission on or before March 31 of each year a tax of 3-1/4% of the total administrative and claims expense incurred during the prior year by the insurer. This tax shall be distributed in the same manner as under Subsection 59-9-101(2).
(4) The taxes imposed under Subsections (2) and (3) do not apply to:
(a) admitted insurers;
(b) insurers taxed under Section 31A-3-301;
(c) self insurers;
(d) annuity considerations or ocean marine insurance; or
(e) a public agency insurance mutual as defined in Section 31A-1-103.
(1) A person whose total tax obligation under this chapter for the preceding taxable year was $10,000 or more shall pay the taxes levied under this chapter in quarterly installments. Each installment shall be based on the estimated insurance premiums received, or for the taxes imposed under Section 59-9-103, upon the estimated total administrative and claims expense incurred during the calendar quarter preceding the date on which that quarterly installment is due. The installments are due on or before April 30, July 31, October 31, and March 31. To the extent installment payments result in an overpayment of the tax obligation under this chapter, the overpayment shall be promptly refunded.
(2) If an installment is not paid or is underpaid, except as provided in Subsection (3), there shall be added a penalty at the rate and in the manner prescribed in Section 59-1-401. The amount of the underpayment is the excess of 80% of the installment shown to be due by an audit of the taxpayer's records over the amount, if any, of the installment paid on or before the last date prescribed for the payment. The taxpayer shall pay the cost of the audit, if any.
(3) No penalty, interest, or audit charge may be assessed under Subsection (2) if the taxpayer pays, for any installment required by this section, at least 27% of the annual tax reported on its annual statement for the preceding taxable year.
(4) There shall be no interest added to any estimated tax payments subject to a penalty under this section.
(1) An insurer that provides coverage for motor vehicle liability, uninsured motorist, and personal injury protection shall pay to the State Tax Commission on or before March 31 of each year, a tax of .01% on the total premiums received for these coverages during the preceding calendar year from policies covering motor vehicle risks in this state.
(2) The taxable premium under this section shall be reduced by the premiums returned or credited to policyholders on direct business subject to tax in this state.
(3) Money received by the state under this section shall be deposited into the Relative Value Study Restricted Account created in Subsection (4).
(4)
(a) There is created in the General Fund a restricted account known as the "Relative Value Study Restricted Account."
(b) The Relative Value Study Restricted Account shall consist of the money received by the insurance commissioner under:
(i) Section 31A-2-208; and
(ii) this section.
(c) The insurance commissioner shall administer the Relative Value Study Restricted Account. Subject to appropriations by the Legislature, the insurance commissioner shall use the money deposited into the Relative Value Study Restricted Account to pay for costs and expenses incurred by the insurance commissioner:
(i) in conducting, maintaining, and administering the relative value study referred to in Section 31A-22-307;
(ii) to prepare, publish, and distribute publications relating to insurance and consumers of insurance as provided in Section 31A-2-208; and
(iii) in providing the services of the insurance commissioner through the use of:
(A) electronic commerce; and
(B) other information technology.
(1) As used in this section, "qualified taxpayer" means:
(a) for a person claiming a tax credit under Section 59-7-607, the same as that term is defined in Section 59-7-607; or
(b) for a person claiming a tax credit under Section 59-10-1010, the same as that term is defined in Section 59-10-1010.
(2) A person may claim a nonrefundable tax credit against a tax liability under this section if:
(a) the person is a qualified taxpayer who has been issued an allocation certificate by the Utah Housing Corporation under Section 59-7-607 or 59-10-1010, and the qualified taxpayer does not claim the tax credit under Chapter 7, Corporate Franchise and Income Taxes, Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, or Chapter 10, Individual Income Tax Act; or
(b) the person has been allocated a low-income housing tax credit in accordance with Section 59-7-607 or 59-10-1010, and the person does not claim the tax credit under Chapter 7, Corporate Franchise and Income Taxes, Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, or Chapter 10, Individual Income Tax Act.
(3)
(a) If a tax credit is not claimed by a qualified taxpayer or by a person who has been allocated a low-income housing tax credit in the year in which the credit is earned because the tax credit is more than the tax liability owed, the tax credit may be carried back three years or may be carried forward five years as a credit against the tax liability.
(b) Carryover tax credits under Subsection (3)(a) shall be applied against tax liability:
(i) before the application of tax credits earned in the current year; and
(ii) on a first-earned, first-used basis.
(4) The commission may, in consultation with the Utah Housing Corporation, make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this section.
(1) As used in this chapter:
(a)
(i) "Adjusted gross income":
(A) for a resident or nonresident individual, means the same as that term is defined in Section 62, Internal Revenue Code; or
(B) for a resident or nonresident estate or trust, is as calculated in Section 67(e), Internal Revenue Code.
(ii) "Adjusted gross income" does not include:
(A) income received from a loan forgiven in accordance with 15 U.S.C. Sec. 636(a)(36), to the extent that a deduction for the expenditures paid with the loan is disallowed, or a similar paycheck protection loan that is authorized by the federal government, provided in response to COVID-19, forgiven if the borrower meets the expenditure requirements, and exempt from federal income tax, to the extent that a deduction for the expenditures paid with the loan is disallowed; or
(B) an amount that an individual receives in accordance with Section 6428, Internal Revenue Code, or an amount that an individual receives that is authorized by the federal government as a tax credit for the 2020 tax year, provided in response to COVID-19, paid in advance of the filing of the individual's 2020 federal income tax return, and exempt from federal income tax.
(b) "Corporation" includes:
(i) an association;
(ii) a joint stock company; and
(iii) an insurance company.
(c) "COVID-19" means:
(i) the severe acute respiratory syndrome coronavirus 2; or
(ii) the disease caused by severe acute respiratory syndrome coronavirus 2.
(d) "Distributable net income" means the same as that term is defined in Section 643, Internal Revenue Code.
(e) "Employee" means the same as that term is defined in Section 59-10-401.
(f) "Employer" means the same as that term is defined in Section 59-10-401.
(g) "Federal taxable income":
(i) for a resident or nonresident individual, means taxable income as defined by Section 63, Internal Revenue Code; or
(ii) for a resident or nonresident estate or trust, is as calculated in Section 641(a) and (b), Internal Revenue Code.
(h) "Fiduciary" means:
(i) a guardian;
(ii) a trustee;
(iii) an executor;
(iv) an administrator;
(v) a receiver;
(vi) a conservator; or
(vii) any person acting in any fiduciary capacity for any individual.
(i) "Guaranteed annuity interest" means the same as that term is defined in 26 C.F.R. Sec. 1.170A-6(c)(2).
(j) "Homesteaded land diminished from the Uintah and Ouray Reservation" means the homesteaded land that was held to have been diminished from the Uintah and Ouray Reservation in Hagen v. Utah, 510 U.S. 399 (1994).
(k) "Individual" means a natural person and includes aliens and minors.
(l) "Irrevocable trust" means a trust in which the settlor may not revoke or terminate all or part of the trust without the consent of a person who has a substantial beneficial interest in the trust and the interest would be adversely affected by the exercise of the settlor's power to revoke or terminate all or part of the trust.
(m) "Military service" means the same as that term is defined in Pub. L. No. 108-189, Sec. 101.
(n) "Nonresident individual" means an individual who is not a resident of this state.
(o) "Nonresident trust" or "nonresident estate" means a trust or estate which is not a resident estate or trust.
(p)
(i) "Partnership" includes a syndicate, group, pool, joint venture, or other unincorporated organization:
(A) through or by means of which any business, financial operation, or venture is carried on; and
(B) that is not, within the meaning of this chapter, a trust, an estate, or a corporation.
(ii) "Partnership" does not include any organization not included under the definition of "partnership" in Section 761, Internal Revenue Code.
(iii) "Partner" includes a member in a syndicate, group, pool, joint venture, or organization described in Subsection (1)(p)(i).
(q) "Pass-through entity" means the same as that term is defined in Section 59-10-1402.
(r) "Pass-through entity taxpayer" means the same as that term is defined in Section 59-10-1402.
(s) "Qualified nongrantor charitable lead trust" means a trust:
(i) that is irrevocable;
(ii) that has a trust term measured by:
(A) a fixed term of years; or
(B) the life of a person living on the day on which the trust is created;
(iii) under which:
(A) a portion of the value of the trust assets is distributed during the trust term:
(I) to an organization described in Section 170(c), Internal Revenue Code; and
(II) as a guaranteed annuity interest or a unitrust interest; and
(B) assets remaining in the trust at the termination of the trust term are distributed to a beneficiary:
(I) designated in the trust; and
(II) that is not an organization described in Section 170(c), Internal Revenue Code;
(iv) for which the trust is allowed a deduction under Section 642(c), Internal Revenue Code; and
(v) under which the grantor of the trust is not treated as the owner of any portion of the trust for federal income tax purposes.
(t) "Resident individual" means an individual who is domiciled in this state for any period of time during the taxable year, but only for the duration of the period during which the individual is domiciled in this state.
(u) "Resident estate" or "resident trust" means the same as that term is defined in Section 75B-2-103.
(v) " Service member" means the same as that term is defined in Pub. L. No. 108-189, Sec. 101.
(w) "State income tax percentage for a nonresident estate or trust" means a percentage equal to a nonresident estate's or trust's state taxable income for the taxable year divided by the nonresident estate's or trust's total adjusted gross income for that taxable year after making the adjustments required by:
(i) Section 59-10-202;
(ii) Section 59-10-207;
(iii) Section 59-10-209.1; or
(iv) Section 59-10-210.
(x) "State income tax percentage for a nonresident individual" means a percentage equal to a nonresident individual's state taxable income for the taxable year divided by the difference between:
(i) subject to Section 59-10-1405, the nonresident individual's total adjusted gross income for that taxable year, after making the:
(A) additions and subtractions required by Section 59-10-114; and
(B) adjustments required by Section 59-10-115; and
(ii) if the nonresident individual described in Subsection (1)(x)(i) is a service member, the compensation the service member receives for military service if the service member is serving in compliance with military orders.
(y) "State income tax percentage for a part-year resident individual" means, for a taxable year, a fraction:
(i) the numerator of which is the sum of:
(A) subject to Section 59-10-1404.5, for the time period during the taxable year that the part-year resident individual is a resident, the part-year resident individual's total adjusted gross income for that time period, after making the:
(I) additions and subtractions required by Section 59-10-114; and
(II) adjustments required by Section 59-10-115; and
(B) for the time period during the taxable year that the part-year resident individual is a nonresident, an amount calculated by:
(I) determining the part-year resident individual's adjusted gross income for that time period, after making the:
(Aa) additions and subtractions required by Section 59-10-114; and
(Bb) adjustments required by Section 59-10-115; and
(II) calculating the portion of the amount determined under Subsection (1)(y)(i)(B)(I) that is derived from Utah sources in accordance with Section 59-10-117; and
(ii) the denominator of which is the difference between:
(A) the part-year resident individual's total adjusted gross income for that taxable year, after making the:
(I) additions and subtractions required by Section 59-10-114; and
(II) adjustments required by Section 59-10-115; and
(B) if the part-year resident individual is a service member, any compensation the service member receives for military service during the portion of the taxable year that the service member is a nonresident if the service member is serving in compliance with military orders.
(z) "Taxable income" or "state taxable income":
(i) subject to Section 59-10-1404.5, for a resident individual, means the resident individual's adjusted gross income after making the:
(A) additions and subtractions required by Section 59-10-114; and
(B) adjustments required by Section 59-10-115;
(ii) for a nonresident individual, is an amount calculated by:
(A) determining the nonresident individual's adjusted gross income for the taxable year, after making the:
(I) additions and subtractions required by Section 59-10-114; and
(II) adjustments required by Section 59-10-115; and
(B) calculating the portion of the amount determined under Subsection (1)(z)(ii)(A) that is derived from Utah sources in accordance with Section 59-10-117;
(iii) for a resident estate or trust, is as calculated under Section 59-10-201.1; and
(iv) for a nonresident estate or trust, is as calculated under Section 59-10-204.
(aa) "Taxpayer" means any of the following that has income subject in whole or part to the tax imposed by this chapter:
(i) an individual;
(ii) an estate, a trust, or a beneficiary of an estate or a trust that is not a pass-through entity or a pass-through entity taxpayer;
(iii) a pass-through entity; or
(iv) a pass-through entity taxpayer.
(bb) "Trust term" means a time period:
(i) beginning on the day on which a qualified nongrantor charitable lead trust is created; and
(ii) ending on the day on which the qualified nongrantor charitable lead trust described in Subsection (1)(bb)(i) terminates.
(cc) "Uintah and Ouray Reservation" means the lands recognized as being included within the Uintah and Ouray Reservation in:
(i) Hagen v. Utah, 510 U.S. 399 (1994); and
(ii) Ute Indian Tribe v. Utah, 114 F.3d 1513 (10th Cir. 1997).
(dd) "Unadjusted income" means an amount equal to the difference between:
(i) the total income required to be reported by a resident or nonresident estate or trust on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year; and
(ii) the sum of the following:
(A) fees paid or incurred to the fiduciary of a resident or nonresident estate or trust:
(I) for administering the resident or nonresident estate or trust; and
(II) that the resident or nonresident estate or trust deducts as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year;
(B) the income distribution deduction that a resident or nonresident estate or trust deducts under Section 651 or 661, Internal Revenue Code, as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year;
(C) the amount that a resident or nonresident estate or trust deducts as a deduction for estate tax or generation skipping transfer tax under Section 691(c), Internal Revenue Code, as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year; and
(D) the amount that a resident or nonresident estate or trust deducts as a personal exemption under Section 642(b), Internal Revenue Code, as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year.
(ee) "Unitrust interest" means the same as that term is defined in 26 C.F.R. Sec. 1.170A-6(c)(2).
(ff) "Ute tribal member" means an individual who is enrolled as a member of the Ute Indian Tribe of the Uintah and Ouray Reservation.
(gg) "Ute tribe" means the Ute Indian Tribe of the Uintah and Ouray Reservation.
(hh) "Wages" means the same as that term is defined in Section 59-10-401.
(2)
(a) Any term used in this chapter has the same meaning as when used in comparable context in the laws of the United States relating to federal income taxes unless a different meaning is clearly required.
(b) Any reference to the Internal Revenue Code or to the laws of the United States shall mean the Internal Revenue Code or other provisions of the laws of the United States relating to federal income taxes that are in effect for the taxable year.
(c) Any reference to a specific section of the Internal Revenue Code or other provision of the laws of the United States relating to federal income taxes shall include any corresponding or comparable provisions of the Internal Revenue Code as amended, redesignated, or reenacted.
(1) The commission shall print the phrase "all state income tax dollars support education, children, and individuals with disabilities" on:
(a) the first page of an individual income tax return; and
(b) the cover page of an individual income tax forms and instructions booklet.
(2) The commission shall include on an individual income tax return a statement for a property owner to declare that the property owner no longer qualifies to receive a residential exemption authorized under Section 59-2-103 for that property owner's primary residence.
(3)
(a) The commission shall include in each instruction booklet information about the option to register as a donor, as that term is defined in Section 26B-8-301, and instructions for accessing a donor registry established under Section 26B-8-319.
(b) The commission shall include on the commission's website information about the option to register as a donor, as that term is defined in Section 26B-8-301, and a link to a website for a donor registry established under Section 26B-8-319.
(c) The requirements in Subsections (3)(a) and (b) do not apply if the commission provides information in each instruction booklet and on the commission's website in connection with a comprehensive plan described in Section 26B-1-437.
(1) A tax is imposed on the state taxable income of a resident individual as provided in this section.
(2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the product of:
(a) the resident individual's state taxable income for that taxable year; and
(b) 4.45%.
(3) This section does not apply to a resident individual exempt from taxation under Section 59-10-104.1.
(1) For purposes of this section:
(a) "Modified adjusted gross income" means the amount calculated by:
(i) adding the individual's adjusted gross income on the individual's federal individual income tax return for the taxable year and any additions required by Section 59-10-114 for the taxable year; and
(ii) subtracting from the amount calculated in accordance with Subsection (1)(a)(i), any subtractions required by Section 59-10-114 for the taxable year.
(b) "Personal exemptions" means the total exemption amount an individual is allowed to claim for the taxable year under Section 151, Internal Revenue Code, for:
(i) the individual;
(ii) the individual's spouse; and
(iii) the individual's dependents.
(c) "Standard deduction":
(i) means the standard deduction an individual is allowed to claim for the taxable year under Section 63, Internal Revenue Code; and
(ii) notwithstanding Subsection (1)(c)(i), does not include an additional amount allowed under Section 63(f), Internal Revenue Code, for an individual or an individual's spouse who is:
(A) blind; or
(B) 65 years of age or older.
(2) An individual is exempt from a tax imposed by Section 59-10-104 or 59-10-116 if the individual's modified adjusted gross income is less than or equal to the sum of the individual's:
(a) personal exemptions for that taxable year; and
(b) standard deduction for that taxable year.
A credit applied directly to the income tax calculated for federal income tax purposes in accordance with the Internal Revenue Code may not be applied in calculating the tax due under this chapter.
(1) There shall be added to adjusted gross income of a resident or nonresident individual:
(a) a lump sum distribution that the taxpayer does not include in adjusted gross income on the taxpayer's federal individual income tax return for the taxable year;
(b) the amount of a child's income calculated under Subsection (4) that:
(i) a parent elects to report on the parent's federal individual income tax return for the taxable year; and
(ii) the parent does not include in adjusted gross income on the parent's federal individual income tax return for the taxable year;
(c)
(i) a withdrawal from a medical care savings account and any penalty imposed for the taxable year if:
(A) the resident or nonresident individual does not deduct the amounts on the resident or nonresident individual's federal individual income tax return under Section 220, Internal Revenue Code;
(B) the withdrawal is subject to Subsections 31A-32a-105(1) and (2); and
(C) the withdrawal is subtracted on, or used as the basis for claiming a tax credit on, a return the resident or nonresident individual files under this chapter;
(ii) a disbursement required to be added to adjusted gross income in accordance with Subsection 31A-32a-105(3); or
(iii) an amount required to be added to adjusted gross income in accordance with Subsection 31A-32a-105(5)(c);
(d) the amount withdrawn under Title 53H, Chapter 10, Utah Education Savings, from the account of a resident or nonresident individual who is an account owner as defined in Section 53H-10-101, for the taxable year for which the amount is withdrawn, if that amount withdrawn from the account of the resident or nonresident individual who is the account owner:
(i) is not expended for:
(A) higher education costs as defined in Section 53H-10-201; or
(B) a payment or distribution that qualifies as an exception to the additional tax for distributions not used for educational expenses provided in Sections 529(c) and 530(d), Internal Revenue Code; and
(ii) is:
(A) subtracted by the resident or nonresident individual:
(I) who is the account owner; and
(II) on the resident or nonresident individual's return filed under this chapter for a taxable year beginning on or before December 31, 2007; or
(B) used as the basis for the resident or nonresident individual who is the account owner to claim a tax credit under Section 59-10-1017;
(e) except as provided in Subsection (5), for bonds, notes, and other evidences of indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and other evidences of indebtedness:
(i) issued by one or more of the following entities:
(A) a state other than this state;
(B) the District of Columbia;
(C) a political subdivision of a state other than this state; or
(D) an agency or instrumentality of an entity described in Subsections (1)(e)(i)(A) through (C); and
(ii) to the extent the interest is not included in adjusted gross income on the taxpayer's federal income tax return for the taxable year;
(f) subject to Subsection (2)(c), any distribution received by a resident beneficiary of a resident trust of income that was taxed at the trust level for federal tax purposes, but was subtracted from state taxable income of the trust pursuant to Subsection 59-10-202(2)(b);
(g) any distribution received by a resident beneficiary of a nonresident trust of undistributed distributable net income realized by the trust on or after January 1, 2004, if that undistributed distributable net income was taxed at the trust level for federal tax purposes, but was not taxed at the trust level by any state, with undistributed distributable net income considered to be distributed from the most recently accumulated undistributed distributable net income;
(h) any adoption expense:
(i) for which a resident or nonresident individual receives reimbursement from another person; and
(ii) to the extent to which the resident or nonresident individual subtracts that adoption expense:
(A) on a return filed under this chapter for a taxable year beginning on or before December 31, 2007; or
(B) from federal taxable income on a federal individual income tax return;
(i) the amount of tax paid on income attributed to the individual in accordance with Subsection 59-10-1403.2(2) that is not included in adjusted gross income; and
(j) the amount of tax paid:
(i) on income attributed to the individual and taxable in this state, that is not included in adjusted gross income;
(ii) to another state; and
(iii) that the commission determines is substantially similar to the tax imposed under Subsection 59-10-1403.2(2).
(2) There shall be subtracted from adjusted gross income of a resident or nonresident individual:
(a) the difference between:
(i) the interest or a dividend on an obligation or security of the United States or an authority, commission, instrumentality, or possession of the United States, to the extent that interest or dividend is:
(A) included in adjusted gross income for federal income tax purposes for the taxable year; and
(B) exempt from state income taxes under the laws of the United States; and
(ii) any interest on indebtedness incurred or continued to purchase or carry the obligation or security described in Subsection (2)(a)(i);
(b) if the conditions of Subsection (3)(a) are met, the amount of income derived by a Ute tribal member:
(i) during a time period that the Ute tribal member resides on homesteaded land diminished from the Uintah and Ouray Reservation; and
(ii) from a source within the Uintah and Ouray Reservation;
(c) an amount received by a resident or nonresident individual or distribution received by a resident or nonresident beneficiary of a resident trust:
(i) if that amount or distribution constitutes a refund of taxes imposed by:
(A) a state; or
(B) the District of Columbia; and
(ii) to the extent that amount or distribution is included in adjusted gross income for that taxable year on the federal individual income tax return of the resident or nonresident individual or resident or nonresident beneficiary of a resident trust;
(d) the amount of a railroad retirement benefit:
(i) paid:
(A) in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231 et seq.;
(B) to a resident or nonresident individual; and
(C) for the taxable year; and
(ii) to the extent that railroad retirement benefit is included in adjusted gross income on that resident or nonresident individual's federal individual income tax return for that taxable year;
(e) an amount:
(i) received by an enrolled member of an American Indian tribe; and
(ii) to the extent that the state is not authorized or permitted to impose a tax under this part on that amount in accordance with:
(A) federal law;
(B) a treaty; or
(C) a final decision issued by a court of competent jurisdiction;
(f) an amount received:
(i) for the interest on a bond, note, or other obligation issued by an entity for which state statute provides an exemption of interest on its bonds from state individual income tax;
(ii) by a resident or nonresident individual;
(iii) for the taxable year; and
(iv) to the extent the amount is included in adjusted gross income on the taxpayer's federal income tax return for the taxable year;
(g) the amount of all income, including income apportioned to another state, of a nonmilitary spouse of an active duty military member if:
(i) both the nonmilitary spouse and the active duty military member are nonresident individuals;
(ii) the active duty military member is stationed in Utah;
(iii) the nonmilitary spouse is subject to the residency provisions of 50 U.S.C. Sec. 4001(a)(2); and
(iv) the income is included in adjusted gross income for federal income tax purposes for the taxable year;
(h) the amount of any FDIC premium paid or incurred by the taxpayer that is disallowed as a deduction for federal income tax purposes under Section 162(r), Internal Revenue Code, for the taxable year;
(i) an amount of a distribution from a qualified retirement plan under Section 401(a), Internal Revenue Code, if:
(i) the amount of the distribution is included in adjusted gross income on the resident or nonresident individual's federal individual income tax return for the taxable year; and
(ii) for the taxable year when the amount of the distribution was contributed to the qualified retirement plan, the amount of the distribution:
(A) was not included in adjusted gross income on the resident or nonresident individual's federal individual income tax return for the taxable year; and
(B) was taxed by another state of the United States, the District of Columbia, or a possession of the United States; and
(j) the amount of any repayment in the current taxable year of social security income received in a previous taxable year if:
(i) the individual claimed a credit for the repayment on the individual's federal individual income tax return for the current taxable year; and
(ii) the individual did not claim a tax credit under Section 59-10-1042 for the taxable year in which the individual received the social security income.
(3)
(a) A subtraction for an amount described in Subsection (2)(b) is allowed only if:
(i) the taxpayer is a Ute tribal member; and
(ii) the governor and the Ute tribe execute and maintain an agreement meeting the requirements of this Subsection (3).
(b) The agreement described in Subsection (3)(a):
(i) may not:
(A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
(B) provide a subtraction under this section greater than or different from the subtraction described in Subsection (2)(b); or
(C) affect the power of the state to establish rates of taxation; and
(ii) shall:
(A) provide for the implementation of the subtraction described in Subsection (2)(b);
(B) be in writing;
(C) be signed by:
(I) the governor; and
(II) the chair of the Business Committee of the Ute tribe;
(D) be conditioned on obtaining any approval required by federal law; and
(E) state the effective date of the agreement.
(c)
(i) The governor shall report to the commission by no later than February 1 of each year regarding whether or not an agreement meeting the requirements of this Subsection (3) is in effect.
(ii) If an agreement meeting the requirements of this Subsection (3) is terminated, the subtraction permitted under Subsection (2)(b) is not allowed for taxable years beginning on or after the January 1 following the termination of the agreement.
(d) For purposes of Subsection (2)(b) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(i) for determining whether income is derived from a source within the Uintah and Ouray Reservation; and
(ii) that are substantially similar to how adjusted gross income derived from Utah sources is determined under Section 59-10-117.
(4)
(a) For purposes of this Subsection (4), "Form 8814" means:
(i) the federal individual income tax Form 8814, Parents' Election To Report Child's Interest and Dividends; or
(ii)
(A) a form designated by the commission in accordance with Subsection (4)(a)(ii)(B) as being substantially similar to 2000 Form 8814 if for purposes of federal individual income taxes the information contained on 2000 Form 8814 is reported on a form other than Form 8814; and
(B) for purposes of Subsection (4)(a)(ii)(A) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules designating a form as being substantially similar to 2000 Form 8814 if for purposes of federal individual income taxes the information contained on 2000 Form 8814 is reported on a form other than Form 8814.
(b) The amount of a child's income added to adjusted gross income under Subsection (1)(b) is equal to the difference between:
(i) the lesser of:
(A) the base amount specified on Form 8814; and
(B) the sum of the following reported on Form 8814:
(I) the child's taxable interest;
(II) the child's ordinary dividends; and
(III) the child's capital gain distributions; and
(ii) the amount not taxed that is specified on Form 8814.
(5) Notwithstanding Subsection (1)(e), interest from bonds, notes, and other evidences of indebtedness issued by an entity described in Subsections (1)(e)(i)(A) through (D) may not be added to adjusted gross income of a resident or nonresident individual if, as annually determined by the commission:
(a) for an entity described in Subsection (1)(e)(i)(A) or (B), the entity and all of the political subdivisions, agencies, or instrumentalities of the entity do not impose a tax based on income on any part of the bonds, notes, and other evidences of indebtedness of this state; or
(b) for an entity described in Subsection (1)(e)(i)(C) or (D), the following do not impose a tax based on income on any part of the bonds, notes, and other evidences of indebtedness of this state:
(i) the entity; or
(ii)
(A) the state in which the entity is located; or
(B) the District of Columbia, if the entity is located within the District of Columbia.
(1) As used in this section:
(a) "Net foreign source taxable income" means:
(i) the amount calculated on line 17 of Internal Revenue Code Form 1116, Foreign Tax Credit; or
(ii) if, for purposes of federal individual income taxes, the amount calculated on line 17 of Form 1116 is reported on a line other than line 17 of Form 1116, the amount on a line of a federal individual income tax form designated by the commission as being substantially similar to line 17 of the 2015 version of Form 1116.
(b) "Pass-through entity taxpayer" means the same as that term is defined in Section 59-10-1402.
(2) The commission shall allow an adjustment to adjusted gross income of a resident or nonresident individual if the resident or nonresident individual would otherwise:
(a) receive a double tax benefit under this part; or
(b) suffer a double tax detriment under this part.
(3)
(a) For a pass-through entity taxpayer generating taxable income primarily from establishments classified in Code Section 33242, Metal Tank (Heavy Gauge) Manufacturing, of the 2002 or 2007 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, an adjustment described in Subsection (2) includes net foreign source taxable income generated from Metal Tank (Heavy Gauge) Manufacturing establishments.
(b) The adjustment described in Subsection (3)(a) applies to a taxable year beginning on or after January 1, 2017.
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(a) making the designation described in Subsection (1)(a)(ii), if necessary; and
(b) allowing for the adjustment to adjusted gross income required by Subsection (2).
(1) Except as provided in Subsection (2), a tax is imposed on a nonresident individual in an amount equal to the product of the:
(a) nonresident individual's state taxable income; and
(b) percentage listed in Subsection 59-10-104(2).
(2) This section does not apply to a nonresident individual:
(a) exempt from taxation under Section 59-10-104.1; or
(b) whose only state source income is wages that are excluded in accordance with Section 59-10-117.5.
(1) As used in this section:
(a) "Declared state disaster or emergency" is as defined in Section 53-2a-1202.
(b) "Disaster period" is as defined in Section 53-2a-1202.
(c) "Out-of-state business" is as defined in Section 53-2a-1202.
(d) "Out-of-state employee" is as defined in Section 53-2a-1202.
(2) An out-of-state employee, including a pass-through entity taxpayer who is an out-of-state employee, is exempt from a tax under this chapter for income earned or passed through:
(a) from an out-of-state business;
(b) during a disaster period; and
(c) as a result of the out-of-state business responding to a declared state disaster or emergency.
(1) For purposes of Section 59-10-116, state taxable income derived from Utah sources includes state taxable income attributable to or resulting from:
(a) the ownership in this state of any interest in real or tangible personal property, including real property or property rights from which gross income from mining as described by Section 613(c), Internal Revenue Code, is derived;
(b) the carrying on of a business, trade, profession, or occupation in this state;
(c) an addition to adjusted gross income required by Subsection 59-10-114(1)(c), (d), or (h) to the extent that the addition was previously subtracted from state taxable income;
(d) a subtraction from adjusted gross income required by Subsection 59-10-114(2)(c) for a refund described in Subsection 59-10-114(2)(c) to the extent that the refund subtracted is related to a tax imposed by this state; or
(e) an adjustment to adjusted gross income required by Section 59-10-115 to the extent the adjustment is related to an item described in Subsections (1)(a) through (d).
(2) For purposes of Subsection (1):
(a) income from intangible personal property, including annuities, dividends, interest, and gains from the disposition of intangible personal property, shall constitute income derived from Utah sources only to the extent that the income is from property employed in a trade, business, profession, or occupation carried on in this state;
(b) a deduction with respect to a capital loss, net long-term capital gain, or net operating loss shall be:
(i) based solely on income, gain, loss, and deduction connected with Utah sources, under rules prescribed by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
(ii) otherwise determined in the same manner as the corresponding federal deductions;
(c) a salary, wage, commission, or compensation for personal services rendered:
(i) subject to Section 59-10-117.5, inside this state is considered to be income derived from Utah sources; and
(ii) outside this state may not be considered to be income derived from Utah sources;
(d) a share of income, gain, loss, deduction, or credit of a nonresident pass-through entity taxpayer, as defined in Section 59-10-1402, derived from or connected with Utah sources shall be determined in accordance with Section 59-10-118;
(e) a nonresident, other than a dealer holding property primarily for sale to customers in the ordinary course of the dealer's trade or business, may not be considered to carry on a trade, business, profession, or occupation in this state solely by reason of the purchase or sale of property for the nonresident's own account;
(f) if a trade, business, profession, or occupation is carried on partly within and partly without this state:
(i) an item of income, gain, loss, or a deduction derived from or connected with Utah sources shall be determined in accordance with Section 59-10-118; and
(ii) a salary, a wage, a commission, or compensation for personal services rendered is not considered to be an item of income from the carrying on of a business, trade, profession, or occupation;
(g) the share of a nonresident estate or trust or a nonresident beneficiary of any estate or trust in income, gain, loss, or deduction derived from or connected with Utah sources shall be determined under Section 59-10-207; and
(h) any dividend, interest, or distributive share of income, gain, or loss from a real estate investment trust, as defined in Section 59-7-101, distributed or allocated to a nonresident investor in the trust, including any shareholder, beneficiary, or owner of a beneficial interest in the trust, shall:
(i) be income from intangible personal property under Subsection (2)(a); and
(ii) constitute income derived from Utah sources only to the extent the nonresident investor is employing its beneficial interest in the trust in a trade, business, profession, or occupation carried on by the investor in this state.
(1) As used in this section:
(a) "Day" means any period of time during a calendar day that an individual is present in the state, unless the presence is solely for transportation through the state.
(b) "Wages" means income that:
(i) is received by an individual for employment duties performed inside this state; and
(ii) would be subject to withholding in accordance with Section 59-10-402 without regard to Subsection 59-10-402(5)(a).
(2) A nonresident individual's wages may not be considered income derived from Utah sources if:
(a) the nonresident individual has no other income from sources within this state for the taxable year in which the nonresident individual receives the wages;
(b) the nonresident individual is present in this state to perform employment duties for 20 or fewer days during the tax year; and
(c) the nonresident individual's state of residence:
(i) provides a substantially similar exclusion; or
(ii) does not impose a state individual income tax.
(3) This section does not apply to wages received by:
(a) an individual who is a professional athlete or a member of a professional athletic team;
(b) an individual who is a professional entertainer and who performs services in the professional performing arts;
(c) an individual of prominence who performs services for wages on a per-event basis;
(d) an individual who performs construction services to improve real property, predominantly on a construction site, as a laborer;
(e) an individual who is a key employee, without regard to ownership or the existence of a benefit plan, for the year immediately preceding the current tax year pursuant to Subsection 416(i), Internal Revenue Code; or
(f) an individual who is an employee of a non-corporate employer, and who would be a key employee without regard to ownership or the existence of a benefit plan, for the year immediately preceding the current tax year pursuant to Subsection 416(i), Internal Revenue Code, if:
(i) the term "employee" were substituted for the term "officer"; and
(ii) the individual is one of the non-corporate employer's 50 highest paid employees without regard to whether the individual is an officer.
(1) As used in this section:
(a)
(i) Except as provided in Subsection (1)(a)(ii), "business income" means income arising from transactions and activity in the regular course of a taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitutes integral parts of the taxpayer's regular trade or business operations.
(ii) "Business income" does not include a salary, a wage, a commission, or compensation for personal services rendered.
(b) "Commercial domicile" means the principal place from which the trade or business of a taxpayer is directed or managed.
(c) "Nonbusiness income" means all income other than business income.
(d) "Sales" means all gross receipts of a taxpayer not allocated under Subsections (3) through (7).
(e) "State" means any state of the United States, the District of Columbia, the commonwealth of Puerto Rico, or any possession of the United States.
(2) A taxpayer having business income that is taxable both within and without this state shall allocate and apportion the taxpayer's net income as provided in this section.
(3) Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that rents and royalties constitute nonbusiness income, shall be allocated as provided in Subsections (4) through (7).
(4)
(a) Net rents and royalties from real property located in this state are allocable to this state.
(b) Net rents and royalties from tangible personal property are allocable to this state:
(i) if and to the extent that the property is utilized in this state; or
(ii) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
(c)
(i) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year.
(ii) If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
(5)
(a) Capital gains and losses from sales of real property located in this state are allocable to this state.
(b) Capital gains and losses from sales of tangible personal property are allocable to this state if:
(i) the property has a situs in this state at the time of the sale; or
(ii) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
(c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.
(6) Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.
(7)
(a) Patent and copyright royalties are allocable to this state:
(i) if and to the extent that the patent or copyright is utilized by the payer in this state; or
(ii) if and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
(b)
(i) A patent is utilized in a state to the extent that the patent is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state.
(ii) If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
(8) All business income shall be apportioned to this state using the same methods, procedures, and requirements of Sections 59-7-311 through 59-7-320.
(1) If the adjusted gross income of a husband and wife who are both nonresidents of this state is reported or determined on separate federal individual income tax returns, the husband's and wife's state taxable incomes in this state shall be separately determined.
(2) If the adjusted gross income of a husband and wife who are both nonresidents of this state is reported or determined on a joint federal individual income tax return, the husband's and wife's tax shall be reported or determined in this state on a joint return.
(3)
(a) If one spouse is a nonresident of this state and the other spouse is a resident of this state, separate taxes shall be determined on each spouse's separate state taxable incomes on forms prescribed by the commission.
(b) Notwithstanding Subsection (3)(a), a husband and wife may elect to be considered to be residents of this state for purposes of determining state taxable income for a taxable year.
(c) If one spouse who is a nonresident of this state and the other spouse who is a resident of this state file a joint federal income tax return, but determine state taxable income separately, the spouses shall compute their taxable incomes in this state as if their adjusted gross incomes had been determined separately.
(1) If an individual changes the individual's status during the taxable year from resident to nonresident or from nonresident to resident, the commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, require the individual to file one return for the portion of the taxable year during which the individual is a resident and another return for the portion of the taxable year during which the individual is a nonresident.
(2) The taxable income of the individual described in Subsection (1) shall be determined as provided in this chapter for residents and for nonresidents as if the individual's taxable year for federal income tax purposes were limited to the period of the individual's resident and nonresident status respectively.
If an individual is required to file two returns for a taxable year under Section 59-10-120:
(1) personal exemptions and the standard deduction as used on the federal individual income tax return shall be prorated between the two returns, under rules prescribed by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to reflect the proportions of the taxable year during which the individual was a resident and a nonresident; and
(2) the total amount of the taxes due on the two returns may not be less than the total amount of the taxes that would be due if the total of the taxable incomes reported on the two returns had been included in one return.
(1) For purposes of a tax imposed by this chapter, the taxable year of a resident or nonresident individual or resident or nonresident estate or trust shall be the same as the taxable year of the resident or nonresident individual or resident or nonresident estate or trust for federal income tax purposes.
(2)
(a) If the taxable year of a resident or nonresident individual or resident or nonresident estate or trust is changed for federal income tax purposes, that taxable year for purposes of a tax imposed by this chapter shall be changed in the same manner as the change for federal income tax purposes.
(b) If a change in a taxable year results in a taxable period of less than 12 months for federal income tax purposes, that same taxable period shall be used in computing a tax imposed by this chapter.
(1) For purposes of a tax imposed by this chapter, a resident or nonresident individual's or resident or nonresident estate's or trust's method of accounting shall be the same as the method of accounting the resident or nonresident individual or resident or nonresident estate or trust uses for federal income tax purposes.
(2) If a resident or nonresident individual's or resident or nonresident estate's or trust's method of accounting is changed for federal income tax purposes, the resident or nonresident individual's or resident or nonresident estate's or trust's method of accounting shall be changed in the same manner:
(a) for purposes of a tax imposed by this chapter; and
(b) for any taxable year for which the change in the method of accounting is made for federal income tax purposes.
(1) In computing a resident or nonresident individual's or resident or nonresident estate's or trust's state taxable income for a taxable year under a method of accounting different from the method under which the resident or nonresident individual's or resident or nonresident estate's or trust's state taxable income was computed for the previous taxable year, state taxable income shall be increased or decreased:
(a) to prevent double inclusion or exclusion of an item of gross income as a result of the change in the method of accounting; or
(b) to prevent double allowance or disallowance of a subtraction from or addition to gross income as a result of the change in the method of accounting.
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for making an increase or decrease required by Subsection (1).
(1) If a taxpayer's method of accounting is changed, other than from an accrual to an installment method, any additional tax that results from adjustments determined to be necessary solely by reason of the change may not be greater than if those adjustments were ratably allocated and included for the taxable year of the change and the preceding taxable years, not in excess of two, during which the taxpayer used the method of accounting from which the change is made.
(2) If a taxpayer's method of accounting is changed from an accrual to an installment method, any additional tax for the taxable year of the change in the method of accounting and for any subsequent taxable year that is attributable to the receipt of installment payments properly accrued in a prior taxable year, shall be reduced by the portion of tax for any prior taxable year attributable to the accrual of such installment payments, under rules prescribed by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(1) A business entity that is taxable as a corporation for federal income tax purposes:
(a) may not be subject to the tax imposed by this chapter; and
(b) is subject to Chapter 7, Corporate Franchise and Income Taxes.
(2) A business entity that is exempt from federal income taxation is exempt from the tax imposed by this chapter.
(3) Notwithstanding Subsection (2), if a business entity that is exempt from federal income taxation has income that is subject to federal income taxation, that income is subject to taxation under Chapter 7, Corporate Franchise and Income Taxes.
(1)
(a) An individual is considered to have domicile in this state if:
(i) except as provided in Subsection (1)(b), a dependent with respect to whom the individual or the individual's spouse claims a personal exemption or a tax credit under Section 24, Internal Revenue Code, on the individual's or individual's spouse's federal individual income tax return is enrolled in a public kindergarten, public elementary school, or public secondary school in this state;
(ii) the individual or the individual's spouse is a resident student in accordance with Section 53H-11-202 who is enrolled in an institution of higher education listed in Section 53H-1-102 in this state; or
(iii) the individual or the individual's spouse, in that taxable year:
(A) votes in this state in a regular general election, municipal general election, primary election, or special election;
(B) has not registered to vote in another state; and
(C) has not voted in another state that does not require voter registration.
(b) The determination of whether an individual is considered to have domicile in this state may not be determined in accordance with Subsection (1)(a)(i) if the individual:
(i) is the noncustodial parent of a dependent:
(A) with respect to whom the individual claims a personal exemption or a tax credit under Section 24, Internal Revenue Code, on the individual's federal individual income tax return; and
(B) who is enrolled in a public kindergarten, public elementary school, or public secondary school in this state; and
(ii)
(A) is divorced from the custodial parent of the dependent described in Subsection (1)(b)(i); or
(B) was never married to the custodial parent of the dependent described in Subsection (1)(b)(i).
(2)
(a) Subject to Subsection (2)(b), if the requirements of Subsection (1) are not met for an individual to be considered to have domicile in this state, the individual is considered to have domicile in this state if:
(i) the individual or the individual's spouse has a permanent home in this state to which the individual or the individual's spouse intends to return after being absent; and
(ii) the individual or the individual's spouse has voluntarily fixed the individual's or the individual's spouse's habitation in this state, not for a special or temporary purpose, but with the intent of making a permanent home.
(b) The determination of whether an individual is considered to have domicile in this state under this Subsection (2) shall be based on the preponderance of the evidence, taking into consideration the totality of only the following facts and circumstances:
(i) whether the individual or the individual's spouse has a driver license in this state;
(ii) whether the individual or the individual's spouse receives a residential exemption in accordance with Chapter 2, Property Tax Act, for that individual's or individual's spouse's primary residence;
(iii) whether a dependent with respect to whom the individual or the individual's spouse claims a personal exemption or a tax credit under Section 24, Internal Revenue Code, on the individual's or individual's spouse's federal individual income tax return is a resident student in accordance with Section 53H-11-202 who is enrolled in an institution of higher education listed in Section 53H-1-102 in this state;
(iv) the nature and quality of the living accommodations that the individual or the individual's spouse has in this state as compared to another state;
(v) the presence in this state of a spouse or dependent with respect to whom the individual or the individual's spouse claims a personal exemption or a tax credit under Section 24, Internal Revenue Code, on the individual's or individual's spouse's federal individual income tax return;
(vi) the physical location in which earned income as defined in Section 32(c)(2), Internal Revenue Code, is earned by the individual or the individual's spouse;
(vii) the state of registration of a vehicle as defined in Section 59-12-102 owned or leased by the individual or the individual's spouse;
(viii) whether the individual or the individual's spouse is a member of a church, a club, or another similar organization in this state;
(ix) whether the individual or the individual's spouse lists an address in this state on mail, a telephone listing, a listing in an official government publication, other correspondence, or another similar item;
(x) whether the individual or the individual's spouse lists an address in this state on a state or federal tax return;
(xi) whether the individual or the individual's spouse asserts residency in this state for purposes of filing an individual income tax return under this chapter, including asserting that the individual or the individual's spouse is a part-year resident of this state for the portion of the taxable year for which the individual or the individual's spouse is a resident of this state;
(xii) whether the individual or the individual's spouse asserts residency in this state on a document, other than an individual income tax return filed under this chapter, filed with or provided to a court or other governmental entity;
(xiii) the failure of an individual or the individual's spouse to obtain a permit or license normally required of a resident of the state for which the individual or the individual's spouse asserts to have domicile;
(xiv) whether the individual is an individual described in Subsection (1)(b);
(xv) whether the individual:
(A) maintains a place of abode in this state; and
(B) spends in the aggregate 183 or more days of the taxable year in this state; or
(xvi) whether the individual or the individual's spouse:
(A) did not vote in this state in a regular general election, municipal general election, primary election, or special election during the taxable year, but voted in the state in a general election, municipal general election, primary election, or special election during any of the three taxable years prior to that taxable year; and
(B) has not registered to vote in another state during a taxable year described in Subsection (2)(b)(xvi)(A).
(3) Notwithstanding Subsection (2), for individuals who are spouses for purposes of this section and one of the spouses has domicile under this section, the other spouse is not considered to have domicile in this state under Subsection (2) if one of the spouses establishes by a preponderance of the evidence that, during the taxable year and for three taxable years prior to that taxable year, that other spouse:
(a) is not an owner of property in this state;
(b) has not spent in the aggregate more than 30 days of the taxable year in this state;
(c) has not received earned income as defined in Section 32(c)(2), Internal Revenue Code, in this state;
(d) has not voted in this state in a regular general election, municipal general election, primary election, or special election; and
(e) does not have a driver license in this state.
(4)
(a) For purposes of this section, an individual is not considered to have a spouse if:
(i) the individual is legally separated or divorced from the spouse; or
(ii) the individual and the individual's spouse claim married filing separately filing status for purposes of filing a federal individual income tax return for the taxable year.
(b) Except as provided in Subsection (4)(a)(ii), for purposes of this section, an individual's filing status on a federal individual income tax return or a return filed under this chapter may not be considered in determining whether the individual has a spouse.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and for purposes of Subsections (2)(b)(xv) and (3)(b), the commission may by rule define what constitutes spending a day of the taxable year in this state.
(1) As used in this section, "committee" means the Revenue and Taxation Interim Committee.
(2)
(a) Except as provided in Subsection (3), the committee shall review each tax credit described in this chapter once every five years to determine whether to continue, modify, or repeal the tax credit.
(b) In conducting the review required under Subsection (2)(a), the committee shall:
(i) schedule time on a committee agenda to conduct the review as needed;
(ii) invite state agencies, individuals, and organizations concerned with a tax credit under review to provide oral or written testimony;
(iii)
(A) invite the Governor's Office of Economic Development to present a summary and analysis of the information for each tax credit regarding which the Governor's Office of Economic Development is required to make a report under this chapter; and
(B) invite the Office of the Legislative Fiscal Analyst to present a summary and analysis of the information for each tax credit regarding which the Office of the Legislative Fiscal Analyst is required to make a report under this chapter;
(iv) evaluate:
(A) the cost of the tax credit to the state;
(B) the purpose and effectiveness of the tax credit; and
(C) the extent to which the state benefits from the tax credit; and
(v) undertake other review efforts as determined by the committee chairs or as otherwise required by law.
(3) The review requirements of this section do not apply to the tax credit described in Section 59-10-1003.
(1) Except as provided in Subsection (2), a tax determined in accordance with the rate prescribed by Subsection 59-10-104(2)(b) is imposed for each taxable year on the state taxable income of each resident estate or trust.
(2) The following are not subject to a tax imposed by this part:
(a) a resident estate or trust that is not required to file a federal income tax return for estates and trusts for the taxable year; or
(b) a resident trust taxed as a corporation.
(3) A resident estate or trust shall be allowed the credit provided in Section 59-10-1003, relating to an income tax imposed by another state, except that the limitation shall be computed by reference to the taxable income of the estate or trust.
(4) The property of the Utah Educational Savings Plan established in Title 53H, Chapter 10 Utah Education Savings, and the Utah Educational Savings Plan's income from operations and investments are exempt from all taxation by the state under this chapter.
For a taxable year, the state taxable income of a resident estate or trust means the unadjusted income of the resident estate or trust for that taxable year, as adjusted by Sections 59-10-202, 59-10-209.1, and 59-10-210.
(1) There shall be added to unadjusted income of a resident or nonresident estate or trust:
(a) a lump sum distribution allowable as a deduction under Section 402(d)(3), Internal Revenue Code, to the extent deductible under Section 62(a)(8), Internal Revenue Code, in determining adjusted gross income;
(b) except as provided in Subsection (3), for bonds, notes, and other evidences of indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and other evidences of indebtedness:
(i) issued by one or more of the following entities:
(A) a state other than this state;
(B) the District of Columbia;
(C) a political subdivision of a state other than this state; or
(D) an agency or instrumentality of an entity described in Subsections (1)(b)(i)(A) through (C); and
(ii) to the extent the interest is not included in federal taxable income on the taxpayer's federal income tax return for the taxable year;
(c) any portion of federal taxable income for a taxable year if that federal taxable income is derived from stock:
(i) in an S corporation; and
(ii) that is held by an electing small business trust;
(d) the amount withdrawn under Title 53H, Chapter 10, Utah Education Savings, from the account of a resident or nonresident estate or trust that is an account owner as defined in Section 53H-10-101, for the taxable year for which the amount is withdrawn, if that amount withdrawn from the account of the resident or nonresident estate or trust that is the account owner:
(i) is not expended for:
(A) higher education costs as defined in Section 53H-10-201; or
(B) a payment or distribution that qualifies as an exception to the additional tax for distributions not used for educational expenses provided in Sections 529(c) and 530(d), Internal Revenue Code; and
(ii) is:
(A) subtracted by the resident or nonresident estate or trust:
(I) that is the account owner; and
(II) on the resident or nonresident estate's or trust's return filed under this chapter for a taxable year beginning on or before December 31, 2007; or
(B) used as the basis for the resident or nonresident estate or trust that is the account owner to claim a tax credit under Section 59-10-1017; and
(e) any fiduciary adjustments required by Section 59-10-210.
(2) There shall be subtracted from unadjusted income of a resident or nonresident estate or trust:
(a) the interest or a dividend on obligations or securities of the United States and its possessions or of any authority, commission, or instrumentality of the United States, to the extent that interest or dividend is included in gross income for federal income tax purposes for the taxable year but exempt from state income taxes under the laws of the United States, but the amount subtracted under this Subsection (2) shall be reduced by any interest on indebtedness incurred or continued to purchase or carry the obligations or securities described in this Subsection (2), and by any expenses incurred in the production of interest or dividend income described in this Subsection (2) to the extent that such expenses, including amortizable bond premiums, are deductible in determining federal taxable income;
(b) income of an irrevocable resident trust if:
(i) the income would not be treated as state taxable income derived from Utah sources under Section 59-10-204 if received by a nonresident trust;
(ii) the trust first became a resident trust on or after January 1, 2004;
(iii) no assets of the trust were held, at any time after January 1, 2003, in another resident irrevocable trust created by the same settlor or the spouse of the same settlor;
(iv) the trustee of the trust is a trust company as that term is defined in Section 7-5-101;
(v) the amount subtracted under this Subsection (2)(b) is reduced to the extent the settlor or any other person is treated as an owner of any portion of the trust under Subtitle A, Subchapter J, Subpart E of the Internal Revenue Code; and
(vi) the amount subtracted under this Subsection (2)(b) is reduced by any interest on indebtedness incurred or continued to purchase or carry the assets generating the income described in this Subsection (2)(b), and by any expenses incurred in the production of income described in this Subsection (2)(b), to the extent that those expenses, including amortizable bond premiums, are deductible in determining federal taxable income;
(c) if the conditions of Subsection (4)(a) are met, the amount of income of a resident or nonresident estate or trust derived from a deceased Ute tribal member:
(i) during a time period that the Ute tribal member resided on homesteaded land diminished from the Uintah and Ouray Reservation; and
(ii) from a source within the Uintah and Ouray Reservation;
(d) any amount:
(i) received by a resident or nonresident estate or trust;
(ii) that constitutes a refund of taxes imposed by:
(A) a state; or
(B) the District of Columbia; and
(iii) to the extent that amount is included in total income on that resident or nonresident estate's or trust's federal tax return for estates and trusts for that taxable year;
(e) the amount of a railroad retirement benefit:
(i) paid:
(A) in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231 et seq.;
(B) to a resident or nonresident estate or trust derived from a deceased resident or nonresident individual; and
(C) for the taxable year; and
(ii) to the extent that railroad retirement benefit is included in total income on that resident or nonresident estate's or trust's federal tax return for estates and trusts;
(f) an amount:
(i) received by a resident or nonresident estate or trust if that amount is derived from a deceased enrolled member of an American Indian tribe; and
(ii) to the extent that the state is not authorized or permitted to impose a tax under this part on that amount in accordance with:
(A) federal law;
(B) a treaty; or
(C) a final decision issued by a court of competent jurisdiction;
(g) the amount that a qualified nongrantor charitable lead trust deducts under Section 642(c), Internal Revenue Code, as a charitable contribution deduction, as allowed on the qualified nongrantor charitable lead trust's federal income tax return for estates and trusts for the taxable year;
(h) any fiduciary adjustments required by Section 59-10-210;
(i) an amount received:
(i) for the interest on a bond, note, or other obligation issued by an entity for which state statute provides an exemption of interest on its bonds from state individual income tax;
(ii) by a resident or nonresident estate or trust;
(iii) for the taxable year; and
(iv) to the extent the amount is included in federal taxable income on the taxpayer's federal income tax return for the taxable year;
(j) for a taxable year beginning on or after January 1, 2019, but beginning on or before December 31, 2019, only:
(i) the amount of any FDIC premium paid or incurred by the resident or nonresident estate or trust that is disallowed as a deduction for federal income tax purposes under Section 162(r), Internal Revenue Code, on the resident's or nonresident estate's or trust's 2018 federal income tax return; plus
(ii) the amount of any FDIC premium paid or incurred by the resident or nonresident estate or trust that is disallowed as a deduction for federal income tax purposes under Section 162(r), Internal Revenue Code, for the taxable year; and
(k) for a taxable year beginning on or after January 1, 2020, the amount of any FDIC premium paid or incurred by the resident or nonresident estate or trust that is disallowed as a deduction for federal income tax purposes under Section 162(r), Internal Revenue Code, for the taxable year.
(3) Notwithstanding Subsection (1)(b), interest from bonds, notes, and other evidences of indebtedness issued by an entity described in Subsections (1)(b)(i)(A) through (D) may not be added to unadjusted income of a resident or nonresident estate or trust if, as annually determined by the commission:
(a) for an entity described in Subsection (1)(b)(i)(A) or (B), the entity and all of the political subdivisions, agencies, or instrumentalities of the entity do not impose a tax based on income on any part of the bonds, notes, and other evidences of indebtedness of this state; or
(b) for an entity described in Subsection (1)(b)(i)(C) or (D), the following do not impose a tax based on income on any part of the bonds, notes, and other evidences of indebtedness of this state:
(i) the entity; or
(ii)
(A) the state in which the entity is located; or
(B) the District of Columbia, if the entity is located within the District of Columbia.
(4)
(a) A subtraction for an amount described in Subsection (2)(c) is allowed only if:
(i) the income is derived from a deceased Ute tribal member; and
(ii) the governor and the Ute tribe execute and maintain an agreement meeting the requirements of this Subsection (4).
(b) The agreement described in Subsection (4)(a):
(i) may not:
(A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
(B) provide a subtraction under this section greater than or different from the subtraction described in Subsection (2)(c); or
(C) affect the power of the state to establish rates of taxation; and
(ii) shall:
(A) provide for the implementation of the subtraction described in Subsection (2)(c);
(B) be in writing;
(C) be signed by:
(I) the governor; and
(II) the chair of the Business Committee of the Ute tribe;
(D) be conditioned on obtaining any approval required by federal law; and
(E) state the effective date of the agreement.
(c)
(i) The governor shall report to the commission by no later than February 1 of each year regarding whether or not an agreement meeting the requirements of this Subsection (4) is in effect.
(ii) If an agreement meeting the requirements of this Subsection (4) is terminated, the subtraction permitted under Subsection (2)(c) is not allowed for taxable years beginning on or after the January 1 following the termination of the agreement.
(d) For purposes of Subsection (2)(c) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(i) for determining whether income is derived from a source within the Uintah and Ouray Reservation; and
(ii) that are substantially similar to how adjusted gross income derived from Utah sources is determined under Section 59-10-117.
For a taxable year, the state taxable income of a nonresident estate or trust is an amount calculated by:
(1) determining the unadjusted income of the nonresident estate or trust for that taxable year after making the adjustments required by:
(a) Section 59-10-202;
(b) Section 59-10-207;
(c) Section 59-10-209.1; or
(d) Section 59-10-210; and
(2) calculating the portion of the amount determined under Subsection (1) that is derived from Utah sources determined in accordance with the principles of Section 59-10-117.
(1) Except as provided in Subsection (2), a tax is imposed on a nonresident estate or trust in an amount equal to the product of:
(a) the nonresident estate's or trust's state taxable income as determined under Section 59-10-204; and
(b) the percentage listed in Subsection 59-10-104(2).
(2) The following are not subject to a tax imposed by this part:
(a) a nonresident estate or trust that is not required to file a federal income tax return for estates and trusts for the taxable year; or
(b) a nonresident trust taxed as a corporation.
(1) The following shall be determined as provided in this section:
(a) the share of a nonresident estate or trust or a nonresident beneficiary of a nonresident estate or trust in an item of income, gain, loss, or deduction that constitutes distributable net income; and
(b) for purposes of Section 59-10-116, the share of a nonresident beneficiary of any estate or trust in estate or trust income, gain, loss, or deduction.
(2)
(a) The modifications described in Sections 59-10-202 and 59-10-210 shall be added to or subtracted from the amount of an item of income, gain, loss, or deduction that constitutes distributable net income to the extent the item relates to an item of income, gain, loss, or deduction that also constitutes distributable net income.
(b) A modification may not be made under this section if the modification duplicates an item already reflected in distributable net income.
(3)
(a) The amount determined under Subsection (2)(a) shall be allocated among the estate or trust and the beneficiaries of the estate or trust, including a resident beneficiary, in proportion to the estate's, trust's, or beneficiary's share of distributable net income.
(b) An amount allocated in accordance with Subsection (3)(a) has the same character as for federal income tax purposes.
(4)
(a) If an estate or trust does not have distributable net income for the taxable year, the share of each beneficiary in the amount determined under Subsection (2)(a) shall be in proportion to the beneficiary's share of the estate or trust income for that taxable year, under state law or the terms of the governing instrument, that is required to be distributed currently and any other amounts of that income distributed in that taxable year.
(b) For purposes of this Subsection (4), any balance of net income shall be allocated to the estate or trust.
(5)
(a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule establish one or more other methods of determining the shares of a beneficiary and of an estate or trust in:
(i) income derived from sources in this state; and
(ii) modifications related to income, gain, loss, or deduction.
(b) A fiduciary may elect to use a method allowed by this Subsection (5) only if the allocation of a share under Subsection (3) or (4):
(i) results in an inequity in the allocation; and
(ii) the inequity described in Subsection (5)(b)(i) is substantial:
(A) in amount; and
(B) in relation to the total amount of the modifications described in Subsection (2)(a).
(1) The commission shall allow an adjustment to unadjusted income of a resident or nonresident estate or trust if the resident or nonresident estate or trust would otherwise:
(a) receive a double tax benefit under this chapter; or
(b) suffer a double tax detriment under this chapter.
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to allow for the adjustment to unadjusted income required by Subsection (1).
(1) A share of the fiduciary adjustments described in Subsection (2) shall be added to or subtracted from unadjusted income:
(a) of:
(i) a resident or nonresident estate or trust; or
(ii) a resident or nonresident beneficiary of a resident or nonresident estate or trust; and
(b) as provided in this section.
(2) For purposes of Subsection (1), the fiduciary adjustments are the following amounts:
(a) the additions to and subtractions from unadjusted income of a resident or nonresident estate or trust required by Section 59-10-202; and
(b) a tax credit claimed by a resident or nonresident estate or trust as allowed by:
(i) Section 59-6-102;
(ii) Part 10, Nonrefundable Tax Credit Act;
(iii) Part 11, Refundable Tax Credit Act;
(iv) Section 59-13-202; or
(v) Section 63N-2-213.
(3)
(a) The respective shares of an estate or trust and its beneficiaries, including for the purpose of this allocation a nonresident beneficiary, in the state fiduciary adjustments, shall be allocated in proportion to their respective shares of federal distributable net income of the estate or trust.
(b) If the estate or trust described in Subsection (3)(a) has no federal distributable net income for the taxable year, the share of each beneficiary in the fiduciary adjustments shall be allocated in proportion to that beneficiary's share of the estate or trust income for the taxable year that is, under state law or the governing instrument, required to be distributed currently plus any other amounts of that income distributed in that taxable year.
(c) After making the allocations required by Subsections (3)(a) and (b), any balance of the fiduciary adjustments shall be allocated to the estate or trust.
(4)
(a) The commission shall allow a fiduciary to use a method for determining the allocation of the fiduciary adjustments described in Subsection (2) other than the method described in Subsection (3) if using the method described in Subsection (3) results in an inequity:
(i) in allocating the fiduciary adjustments described in Subsection (2); and
(ii) if the inequity is substantial:
(A) in amount; and
(B) in relation to the total amount of the fiduciary adjustments described in Subsection (2).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules authorizing a fiduciary to use a method for determining the allocation of the fiduciary adjustments described in Subsection (2) other than the method described in Subsection (3) if using the method described in Subsection (3) results in an inequity:
(i) in allocating the fiduciary adjustments described in Subsection (2); and
(ii) if the inequity is substantial:
(A) in amount; and
(B) in relation to the total amount of the fiduciary adjustments described in Subsection (2).
For purposes of this part:
(1) "Employee" means and includes every individual performing services for an employer, either within or without, or both within or without the state of Utah, or any individual performing services within the state of Utah, the performance of which services constitutes, establishes, and determines the relationship between the parties as that of employer and employee, and includes offices of corporations, individuals, including elected officials, performing services for the United States Government or any agency or instrumentality thereof, or the state of Utah or any county, city, municipality, or political subdivision thereof.
(2) "Employer" means a person or organization transacting business in or deriving any income from sources within the state of Utah for whom an individual performs or performed any services, of whatever nature, and who has control of the payment of wages for such services, or is the officer, agent, or employee of the person or organization having control of the payment of wages. It includes any officer or department of state or federal government, or any political subdivision or agency of the federal or state government, or any city organized under a charter, or any political body not a subdivision or agency of the state.
(3) "Wages" means wages as defined in Section 3401 of the Internal Revenue Code.
(1) As used in this section:
(a) "Day" means any period of time during a calendar day that an individual is present in the state, unless the presence is solely for transportation through the state.
(b) "Related entity" means:
(i) a stockholder who is an individual, or a member of the stockholder's family as described in Section 318, Internal Revenue Code, if the stockholder and the members of the stockholder's family own, in the aggregate, at least 50% of the value of the nonresident individual's outstanding stock;
(ii) a stockholder, or a stockholder's partnership, limited liability company, estate, trust, or corporation, if the stockholder and the stockholder's partnerships, limited liability companies, estates, trusts, or corporations own, in the aggregate, at least 50% of the value of the nonresident individual's outstanding stock; or
(iii) a corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of the Internal Revenue Code if the taxpayer owns, directly, indirectly, beneficially, or constructively, at least 50% of the value of the corporation's outstanding stock.
(c) "Related person" means a person that, with respect to the nonresident individual during all or any portion of the taxable year, is:
(i) a related entity;
(ii) a component member as defined in Subsection 1563(b), Internal Revenue Code;
(iii) a person to or from whom there is attribution of stock ownership in accordance with Subsection 1563(e), Internal Revenue Code; or
(iv) a person that, notwithstanding the form of organization, bears the same relationship to the nonresident individual as a person described in Subsection (1)(c)(i), (ii), or (iii).
(2) For purposes of determining whether the ownership requirements of a related entity are satisfied, a person shall:
(a) use the attribution rules of the Internal Revenue Code; and
(b) include direct, indirect, beneficial, or constructive ownership.
(3) Each employer making payment of wages shall deduct and withhold from wages an amount to be determined by a commission rule that will, as closely as possible, pay the income tax imposed by this chapter.
(4)
(a) Any employer described in Subsection (3) that is to do business within the state for a period not to exceed 60 days in the aggregate during any calendar year may be relieved from the requirement provided for under this part for such period by furnishing to the commission in advance a certificate so certifying.
(b) If an employer described in Subsection (4)(a) thereafter does business within the state for a period in excess of 60 days, that employer shall be liable for all the tax that the employer would have been required to deduct and withhold.
(c) Upon a showing of good cause by the employer, the commission may extend for a period of not to exceed 30 days the time during which the employer is not required to deduct and withhold the tax.
(5)
(a)
(i) An employer described in Subsection (3) may not deduct or withhold any amount from wages paid to a nonresident individual if the nonresident individual's wages are excluded from state source income in accordance with Section 59-10-117.5 without regard to Subsection 59-10-117.5(2)(a).
(ii) For purposes of Subsection (5)(a)(i), an employer shall calculate the number of days described in Subsection 59-10-117.5(2)(b) by including the days the nonresident employee is present in the state to perform employment duties on behalf of the employer or any related person.
(b) If a nonresident individual is present in this state to perform employment duties for the employer, a related person, or a combination of the employer and a related person for more than 20 days during a calendar year, the employer shall be liable for all the tax that the employer would have been required to deduct and withhold.
(6) The exceptions described in Subsections (4)(a) and (5)(a) are from the withholding requirement described in Subsection (3), not from an individual's obligation to pay income taxes as provided in Part 1, Determination and Reporting of Tax Liability and Information.
(7)
(a) The amount withheld under this section shall be allowed to the recipient of the income as a credit against the tax imposed by this chapter.
(b) Except as provided in Subsection (7)(c), the amount withheld during any calendar year shall be allowed as a credit for the taxable year that begins in the calendar year in which the amount is withheld.
(c) If more than one taxable year begins in a calendar year, the withheld amount shall be allowed as a credit for the last taxable year that begins in the calendar year in which the amount is withheld.
(1) Notwithstanding any other provision of this chapter, an employer is not required to deduct and withhold any tax under this chapter upon a payment of wages to an employee:
(a) if there is in effect with respect to the payment a withholding exemption certificate furnished to the employer by the employee, certifying that the employee:
(i) incurred no liability for a tax imposed under this chapter for the employee's immediately preceding taxable year; and
(ii) expects that the employee will not incur liability for a tax imposed under this chapter for the employee's current taxable year; or
(b) if the employer:
(i) is an out-of-state business as defined in Section 53-2a-1202; and
(ii) pays the wages as compensation for services performed in response to a declared state disaster or emergency as defined in Section 53-2a-1202.
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall provide for the coordination of this section with Section 59-10-402.
(1) For purposes of this part, any supplemental unemployment compensation benefit paid to an individual, and any payment of an annuity to an individual, if at the time the payment is made a request that such annuity be subject to withholding under this part is in effect, shall be treated as if it were a payment of wages by an employer to an employee for a payroll period.
(2) For purposes of Subsection (1), "supplemental unemployment compensation benefits" means amounts that are paid to an employee pursuant to a plan to which the employer is a party, because of an employee's involuntary separation from employment, whether or not such separation is temporary, resulting directly from a reduction in force, the discontinuance of a plant or operation, or other similar conditions, but only to the extent such benefits are includable in the employee's gross income.
(3) For purposes of this part, any unemployment compensation benefit paid to an individual pursuant to Title 35A, Chapter 4, Employment Security Act, may be subject to withholding as provided in Section 35A-4-407.
(4) For purposes of this section, "annuity" means any amount paid to an individual as a pension or annuity, but only to the extent that the amount is includable in the gross income of such individual.
(5) A request that an annuity be subject to withholding under this part shall be made by the payee in writing to the person making the annuity payments. The request may be terminated by furnishing to the person making the payments a written statement of termination which shall be treated as a withholding exemption certificate for purposes of Section 59-10-403.
(1) The commission may by rule provide for withholding:
(a) from remuneration for services performed by an employee for the employee's employer that, without regard to this section, does not constitute wages; or
(b) from any other type of payment with respect to which the commission finds that withholding would be appropriate under this part if the employer and the employee, or in the case of any other type of payment the person making and the person receiving the payment, agree to the withholding.
(2) The agreement provided for in Subsection (1)(b) shall be made in a form and manner as the commission may by rule prescribe.
(3) For purposes of this part, remuneration or other payments with respect to which an agreement provided for in Subsection (1), other than election made pursuant to Section 35A-4-407, is made shall be treated as if they were wages paid by an employer to an employee to the extent that such remuneration is paid or other payments are made during the period for which the agreement is in effect.
(1) As used in this section:
(a) "Applicant" means a person that:
(i) is required by this section to obtain a license; and
(ii) submits an application:
(A) to the commission; and
(B) for a license under this section.
(b) "Application" means an application for a license under this section.
(c) "Fiduciary of the applicant" means a person that:
(i) is required to collect, truthfully account for, and pay over an amount under this part for an applicant; and
(ii)
(A) is a corporate officer of the applicant described in Subsection (1)(c)(i);
(B) is a director of the applicant described in Subsection (1)(c)(i);
(C) is an employee of the applicant described in Subsection (1)(c)(i);
(D) is a partner of the applicant described in Subsection (1)(c)(i);
(E) is a trustee of the applicant described in Subsection (1)(c)(i); or
(F) has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(d) "Fiduciary of the licensee" means a person that:
(i) is required to collect, truthfully account for, and pay over an amount under this part for a licensee; and
(ii)
(A) is a corporate officer of the licensee described in Subsection (1)(d)(i);
(B) is a director of the licensee described in Subsection (1)(d)(i);
(C) is an employee of the licensee described in Subsection (1)(d)(i);
(D) is a partner of the licensee described in Subsection (1)(d)(i);
(E) is a trustee of the licensee described in Subsection (1)(d)(i); or
(F) has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(e) "License" means a license under this section.
(f) "Licensee" means a person that is licensed under this section by the commission.
(2) The following persons are guilty of a criminal violation as provided in Section 59-1-401:
(a) a person that:
(i) is required to withhold, report, or remit any amounts under this part; and
(ii) engages in business within the state before obtaining a license under this section; or
(b) a person that:
(i) pays wages under this part; and
(ii) engages in business within the state before obtaining a license under this section.
(3) The license described in Subsection (2):
(a) shall be granted and issued:
(i) by the commission in accordance with this section;
(ii) without a license fee; and
(iii) if:
(A) an applicant:
(I) states the applicant's name and address in the application; and
(II) provides other information in the application that the commission may require; and
(B) the person meets the requirements of this section to be granted a license as determined by the commission;
(b) may not be assigned to another person; and
(c) is valid:
(i) only for the person named on the license; and
(ii) until:
(A) the person described in Subsection (3)(c)(i):
(I) ceases to do business; or
(II) changes that person's business address; or
(B) the commission revokes the license.
(4) The commission shall review an application and determine whether:
(a) the applicant meets the requirements of this section to be issued a license; and
(b) a bond is required to be posted with the commission in accordance with Subsections (5) and (6) before the applicant may be issued a license.
(5)
(a) Except as provided in Subsection (5)(c), an applicant shall post a bond with the commission before the commission may issue the applicant a license if:
(i) a license under this section was revoked for a delinquency under this part for:
(A) the applicant;
(B) a fiduciary of the applicant; or
(C) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over an amount under this part; or
(ii) there is a delinquency in withholding, reporting, or remitting any amount under this part for:
(A) an applicant;
(B) a fiduciary of the applicant; or
(C) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over an amount under this part.
(b) If the commission determines it is necessary to ensure compliance with this part, the commission may require a licensee to:
(i) for a licensee that has not posted a bond under this section with the commission, post a bond with the commission in accordance with Subsection (6); or
(ii) for a licensee that has posted a bond under this section with the commission, increase the amount of the bond posted with the commission.
(c) The commission may waive the bond requirement described in Subsection (5)(a), if the applicant is in compliance with a payment agreement that:
(i) relates to the delinquency; and
(ii) is approved by the commission.
(6)
(a) A bond required by Subsection (5) shall be:
(i) executed by:
(A) for an applicant, the applicant as principal, with a corporate surety; or
(B) for a licensee, the licensee as principal, with a corporate surety; and
(ii) payable to the commission conditioned upon the faithful performance of all of the requirements of this part including:
(A) the withholding or remitting of any amount under this part;
(B) the payment of any:
(I) penalty as provided in Section 59-1-401; or
(II) interest as provided in Section 59-1-402; or
(C) any other obligation of the applicant or the licensee under this part.
(b) Except as provided in Subsection (6)(d), the commission shall calculate the amount of a bond required by Subsection (5) on the basis of:
(i) commission estimates of:
(A) for an applicant, any amounts the applicant withholds, reports, or remits under this part; or
(B) for a licensee, any amounts the licensee withholds, reports, or remits under this part; and
(ii) any amount of a delinquency described in Subsection (6)(c).
(c) Except as provided in Subsection (6)(d), for purposes of Subsection (6)(b)(ii):
(i) for an applicant, the amount of the delinquency is the sum of:
(A) the amount of any delinquency that served as a basis for revoking the license under this section of:
(I) the applicant;
(II) a fiduciary of the applicant; or
(III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over an amount under this part; or
(B) the amount that any of the following owe under this part:
(I) the applicant;
(II) a fiduciary of the applicant; and
(III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over an amount under this part; or
(ii) for a licensee, the amount of the delinquency is the sum of:
(A) the amount of any delinquency that served as a basis for revoking the license under this section of:
(I) the licensee;
(II) a fiduciary of the licensee; or
(III) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over an amount under this part; or
(B) the amount that any of the following owe under this part:
(I) the licensee;
(II) a fiduciary of the licensee; and
(III) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over an amount under this part.
(d) Notwithstanding Subsection (6)(b) or (c), a bond required by Subsection (5) may not:
(i) be less than $25,000; or
(ii) exceed $500,000.
(7)
(a) The commission shall revoke a license under this section if:
(i) a licensee violates any provision of this part; and
(ii) before the commission revokes the license the commission provides the licensee:
(A) reasonable notice; and
(B) a hearing.
(b) If the commission revokes a licensee's license in accordance with Subsection (7)(a), the commission may not issue another license to that licensee until that licensee complies with the requirements of this part, including:
(i) paying any:
(A) amounts due under this part;
(B) penalty as provided in Section 59-1-401; or
(C) interest as provided in Section 59-1-402; and
(ii) posting a bond in accordance with Subsections (5) and (6).
(8) An employer that has erroneously applied the exception described in Subsection 59-10-402(5)(a) solely as a result of miscalculating the number of days a nonresident individual is present in this state to perform employment duties may not be assessed a penalty under this section if:
(a) the employer relied on a regularly maintained time and attendance system that:
(i) requires the employee to record, on a contemporaneous basis, the work location each day the employee is present in a state other than:
(A) the employee's state of residence; or
(B) the place where services are considered performed for purposes of Section 35A-4-204; and
(ii) is used by the employer to allocate the employee's wages between all taxing jurisdictions in which the employee performs employment duties;
(b) the employer does not maintain a time and attendance system described in Subsection (8)(a) and relied on employee travel records that the employer requires the employee to maintain and record on a regular and contemporaneous basis; or
(c) the employer does not maintain a time and attendance system described in Subsection (8)(a) or require the maintenance of employee records described in Subsection (8)(b) and relied on travel expense reimbursement records that the employer requires the employee to submit on a regular and contemporaneous basis.
(1)
(a) Each employer shall, on or before the last day of April, July, October, and January, pay to the commission the amount required to be deducted and withheld from wages paid to any employee during the preceding calendar quarter under this part.
(b) The commission may change the time or period for making reports and payments if:
(i) in its opinion, the tax is in jeopardy; or
(ii) a different time or period will facilitate the collection and payment of the tax by the employer.
(2)
(a) Each employer shall file a return, in a form the commission prescribes, with each payment of the amount deducted and withheld under this part showing:
(i) the total amount of wages paid to his employees;
(ii) the amount of federal income tax deducted and withheld;
(iii) the amount of tax under this part deducted and withheld; and
(iv) any other information the commission may require.
(b) The employer shall file the return described in Subsection (2)(a) in an electronic format approved by the commission.
(3)
(a) Each employer shall file an annual return, in a form the commission prescribes, summarizing:
(i) the total compensation paid;
(ii) the federal income tax deducted and withheld; and
(iii) the state tax deducted and withheld for each employee during the calendar year.
(b) The return required by Subsection (3)(a) shall be filed with the commission:
(i) in an electronic format approved by the commission; and
(ii) on or before January 31 of the year following that for which the report is made.
(4)
(a) Each employer shall also, in accordance with rules prescribed by the commission, provide each employee from whom state income tax has been withheld with a statement of the amounts of total compensation paid and the amounts deducted and withheld for that employee during the preceding calendar year in accordance with this part.
(b) The statement shall be made available to each employee described in Subsection (4)(a) on or before January 31 of the year following that for which the report is made.
(5)
(a) The employer is liable to the commission for the payment of the tax required to be deducted and withheld under this part.
(b) If an employer pays the tax required to be deducted and withheld under this part:
(i) an employee of the employer is not liable for the amount of any payment described in Subsection (5)(a); and
(ii) the employer is not liable to any person or to any employee for the amount of any such payment described in Subsection (5)(a).
(c) For the purpose of making penal provisions of this title applicable, any amount deducted or required to be deducted and remitted to the commission under this part is considered to be the tax of the employer and with respect to such amounts the employer is considered to be the taxpayer.
(6)
(a) Each employer that deducts and withholds any amount under this part shall hold the amount in trust for the state for the payment of the amount to the commission in the manner and at the time provided for in this part.
(b) So long as any delinquency continues, the state shall have a lien to secure the payment of any amounts withheld, and not remitted as provided under this section, upon all of the assets of the employer and all property owned or used by the employer in the conduct of the employer's business, including stock-in-trade, business fixtures, and equipment.
(c) The lien described in Subsection (6)(b) shall be prior to any lien of any kind, including existing liens for taxes.
(7) To the extent consistent with this section, the commission may use all the provisions of this chapter relating to records, penalties, interest, deficiencies, redetermination of deficiencies, overpayments, refunds, assessments, and venue to enforce this section.
(8)
(a) Subject to Subsections (8)(b) and (c), the commission shall require an employer that issues the following forms for a taxable year to file the forms with the commission in an electronic format approved by the commission:
(i) a federal Form W-2;
(ii) a federal Form 1099 filed for purposes of withholding under Section 59-10-404; or
(iii) a federal form substantially similar to a form described in Subsection (8)(a)(i) or (ii) if designated by the commission in accordance with Subsection (8)(d).
(b) An employer that is required to file a form with the commission in accordance with Subsection (8)(a) shall file the form on or before January 31.
(c) An employer that is required to file a form with the commission in accordance with Subsection (8)(a) shall provide:
(i) accurate information on the form; and
(ii) all of the information required by the Internal Revenue Service to be contained on the form.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for purposes of Subsection (8)(a), the commission may designate a federal form as being substantially similar to a form described in Subsection (8)(a)(i) or (ii) if:
(i) for purposes of federal individual income taxes a different federal form contains substantially similar information to a form described in Subsection (8)(a)(i) or (ii); or
(ii) the Internal Revenue Service replaces a form described in Subsection (8)(a)(i) or (ii) with a different federal form.
(9)
(a) Subject to Subsection (9)(b), a pass-through entity shall file with the commission in an electronic format approved by the commission a form designated by the commission, providing information for each final pass-through entity taxpayer of a pass-through entity that elected to pay a tax in accordance with Subsection 59-10-1403.2(2).
(b) The pass-through entity shall file the form described in Subsection (9)(a) on or before the last day of the pass-through entity's taxable year.
(1) This section does not apply to an employer filing a withholding tax return for a period under this part other than a quarterly period.
(2)
(a) Any employer whose withholding tax liability under Section 59-10-402 is estimated to average an amount designated by the commission by rule shall make a monthly prepayment of the amount required to be paid by Section 59-10-406 for each monthly period of each quarterly period.
(b) An employer that makes a monthly prepayment described in this Subsection (2) shall make the monthly prepayment as provided in this section until the commission notifies the employer in writing.
(c)
(i) An employer shall file a form with a monthly prepayment.
(ii) The commission shall prescribe and furnish the form described in Subsection (2)(c)(i).
(iii) An employer shall make a monthly prepayment and file the form described in Subsection (2)(c)(i) on or before the last day of the month after the end of each monthly period of each quarterly period.
(3) In determining whether an employer's estimated withholding tax liability will average an amount that requires a monthly prepayment, the commission may consider:
(a) a return filed pursuant to Section 59-10-406; or
(b) information in the commission's possession or that may come into the commission's possession.
(4) The penalties and interest for failure to make a monthly prepayment and file the form described in Subsection (2)(c)(i) by the due date described in Subsection (2)(c)(iii) are the same as the penalties and interest under Sections 59-1-401 and 59-1-402 relating to payment of a tax, fee, or charge or filing a return.
The commission may prescribe and enforce reasonable rules necessary to carry out the provisions of Sections 59-10-401 through 59-10-407, and to make such agreements with the United States Government as it deems necessary or advisable to provide for deduction and withholding of tax from wages of federal employees in the state of Utah.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to allow a taxpayer to submit specified excerpts from the taxpayer's federal income tax return rather than submitting a copy of the taxpayer's entire federal income tax return.
An income tax return with respect to the tax imposed by this chapter shall be filed by:
(1) every resident individual, estate, or trust required to file a federal income tax return for the taxable year; and
(2) every nonresident individual, estate, or trust having federal gross income derived from sources within the state for the taxable year and required to file a federal income tax return for such taxable year.
(1) A husband and wife may make a single return jointly with respect to the tax imposed by this chapter even though one of the spouses has neither gross income nor deductions, except as follows:
(a) No joint return shall be made if the husband and wife are not permitted to file a joint return for federal income tax purposes.
(b) If the federal income tax liability of husband or wife is determined on a separate return for federal income tax purposes, the income tax liability of each spouse shall be determined on a separate return under this chapter.
(c) If the federal income tax liabilities of husband and wife, other than a husband and wife described in Subsection (1)(b), are determined on a joint federal return, they shall file a joint return under this chapter and their tax liability shall be joint and several.
(d) If neither spouse is required to file a federal income tax return and either or both are required to file an income tax return under this chapter, they may elect to file separate or joint returns and their tax liability shall be several or joint and several, in accordance with the election made.
(2) If either husband or wife is a resident and the other is a nonresident, they shall file separate income tax returns in this state on such forms as may be required by the commission, in which event their tax liability shall be several. They may elect to determine their joint taxable income as if both were residents, in which event their tax liability shall be joint and several.
Any fiduciary or receiver required to make a return for federal income tax purposes under the provisions of Section 6012(b) of the Internal Revenue Code shall make and file the corresponding state return for state income tax purposes.
(1) As used in this section, "parent" includes an individual who is entitled to the services of an individual who is a minor by reason of having parental rights and duties with respect to the individual who is a minor.
(2) If an individual who is a minor is required to make a return under this chapter, the return shall include:
(a) all income attributable to the individual's personal services; and
(b) all other items of the individual's income.
(3) The income of an individual who is a minor may not be included on the return of the individual's parent.
(4) An expenditure attributable to the income of an individual who is a minor that is made by the individual or the individual's parent is considered to have been paid or incurred by the individual who is a minor.
(5) A tax assessed against an individual who is a minor, to the extent attributable to income from personal services, if not paid by the individual, for all purposes is considered as being properly assessable against the individual's parent.
(1) As used in this section, "taxable year" means a year or other time period that would be a taxable year of a pass-through entity if the pass-through entity were subject to taxation under this chapter.
(2) A pass-through entity having any income derived from or connected with Utah sources shall make a return for the taxable year in accordance with Section 59-10-514.
Every bank or trust company maintaining a common trust fund shall make a return to the commission for each tax year in substantially the same form as it is required to make to the federal government.
Every receiver, trustee in bankruptcy, assignee for benefit of creditors, or other like fiduciary shall give the commission such notice of qualification in such capacity as the commission may by rule require.
An electing small business corporation, as defined in Section 1362, Internal Revenue Code, shall make a return for each taxable year, stating specifically:
(1) the items of the electing small business corporation's gross income and the deductions allowable by Subtitle A, Internal Revenue Code;
(2) the names and addresses of all persons owning stock in the electing small business corporation at any time during the taxable year;
(3) the number of shares of stock owned by each shareholder at all times during the taxable year to each shareholder;
(4) the date of each distribution to a shareholder; and
(5) other information as the commission may prescribe by:
(a) form; or
(b) administrative rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
For requirement that an employer furnish an employee a statement of tax withheld, see Section 59-10-406.
(1) Except as otherwise provided by Subsection (2), any return, statement, or other document required to be made under any provision of this chapter shall be signed in accordance with forms or rules prescribed by the commission.
(2) The return of a partnership made under Section 59-10-507 shall be signed by any one of the partners. The fact that a partner's name is signed on the return shall be prima facie evidence that such partner is authorized to sign the return on behalf of the partnership.
(3) The fact that an individual's name is signed on a return, statement, or other document shall be prima facie evidence for all purposes that the return, statement, or other document was actually signed by the individual.
Except as the commission shall otherwise provide by rule, any return, declaration, statement, or other document required to be made under any provision of this chapter, or under rules promulgated hereunder, shall contain or be verified by a written declaration that it is made under the penalties of perjury.
(1)
(a) Subject to Subsection (3) and Section 59-10-518:
(i) an individual income tax return filed for a tax imposed in accordance with Part 1, Determination and Reporting of Tax Liability and Information, shall be filed with the commission on or before the day on which a federal individual income tax return is due;
(ii) a fiduciary income tax return filed for a tax imposed in accordance with Part 2, Trusts and Estates, shall be filed with the commission on or before the day on which a federal return for estates and trusts is due; or
(iii) a return filed in accordance with Section 59-10-507 shall be filed with the commission on or before the later of:
(A) the 15th day of the fourth month following the last day of the taxpayer's taxable year; or
(B) the day on which the taxpayer is required to file a federal income tax return.
(b) Interest accrues from the day on which a return is due under this Subsection (1).
(2) A person required to make and file a return under this chapter shall, without assessment, notice, or demand, pay any tax due:
(a) to the commission; and
(b) before the due date for filing the return, without regard to any extension of time for filing the return.
(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules prescribing what constitutes filing a return with the commission.
(1) As used in this section:
(a) "Electronic" is as defined in Section 59-12-102.
(b)
(i) Except as provided in Subsection (1)(b)(ii), "income tax return preparer" means an individual that prepares for compensation a return required to be filed by this chapter.
(ii) "Income tax return preparer" does not include an individual who:
(A) performs only one or more of the following relating to a return required to be filed by this chapter:
(I) types the return;
(II) reproduces the return; or
(III) performs an action similar to Subsection (1)(b)(ii)(A)(I) or (II) as determined by the commission by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
(B) prepares a return required to be filed by this chapter:
(I) of the individual's employer or an officer or employee of the employer if the individual is regularly and continuously employed by that employer;
(II) of any person if that individual is a fiduciary for that person; or
(III) for a taxpayer in response to a tax order issued to that taxpayer.
(c) "Prepare" means to prepare a substantial portion or more of a return required to be filed by this chapter.
(d)
(i) Except as provided in Subsection (1)(d)(ii), "qualifying return" means a return required to be filed by this chapter for any taxable year that begins on or after the January 1 described in Subsection (2)(c)(i).
(ii) "Qualifying return" does not include:
(A) an amended return; or
(B)
(I) a return filed for any taxable year that begins before the first day of the current taxable year; and
(II) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining "current taxable year".
(2)
(a) Subject to Subsections (2)(b) and (c) and except as provided in Subsection (3), an income tax return preparer shall file all qualifying returns by electronic means if the income tax return preparer prepares in any calendar year beginning on or after January 1, 2005, a total of 101 or more returns required to be filed by this chapter.
(b)
(i) For purposes of Subsection (2)(a), if two or more income tax return preparers are affiliated with the same establishment, the total number of returns required to be filed by this chapter that are prepared in a calendar year beginning on or after January 1, 2005, by all of the income tax return preparers that are affiliated with that establishment shall be included in determining whether an income tax return preparer prepares in a calendar year beginning on or after January 1, 2005, a total of 101 or more returns required to be filed by this chapter.
(ii) For purposes of Subsection (2)(b)(i), in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule determine the circumstances under which two or more income tax return preparers are affiliated with the same establishment.
(c) If an income tax return preparer is required by this Subsection (2) to file all qualifying returns by electronic means, the income tax return preparer shall file those qualifying returns by electronic means:
(i) beginning on January 1 of the first calendar year immediately following the day on which the income tax return preparer meets the requirements of this Subsection (2); and
(ii) for all calendar years after the calendar year described in Subsection (2)(c)(i).
(3) An income tax return preparer is not required to file a qualifying return by electronic means if:
(a) a schedule required to be attached to the qualifying return cannot be filed by electronic means;
(b) the taxpayer for which the qualifying return is prepared requests in writing that the income tax return preparer not file the qualifying return by electronic means; or
(c) subject to Subsection (4), the commission waives for one or more qualifying returns filed by the income tax return preparer the requirement imposed by this section to file the qualifying returns by electronic means.
(4)
(a) For purposes of Subsection (3)(c), the commission may waive for one or more qualifying returns filed by an income tax return preparer the requirement imposed by this section to file the qualifying returns by electronic means if the income tax return preparer demonstrates to the commission that it would be an undue hardship to file the qualifying returns by electronic means.
(b) For purposes of Subsection (4)(a) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall by rule define the circumstances that constitute an undue hardship to file a qualifying return by electronic means.
The commission by rule shall fix the place and time for filing other documents.
(1)
(a) The commission shall allow a taxpayer an extension of time for filing a return.
(b) Except as provided in Subsection (1)(c):
(i) for a return filed by a taxpayer except for a partnership, the extension described in Subsection (1)(a) may be up to six months; and
(ii) for a return filed by a partnership, the extension described in Subsection (1)(a) may be up to five months.
(c) For a taxable year beginning on or after January 1, 2019, but beginning on or before December 31, 2019, a taxpayer may receive an extension described in Subsection (1)(a) for the time period that ends on the last day of the extension to file the taxpayer's federal income tax return.
(2) The commission may not impose a penalty under Section 59-1-401 during the extension period described in Subsection (1) on:
(a) a pass-through entity, if the pass-through entity, on or before the return due date described in Section 59-10-514, pays or withholds the tax on behalf of a pass-through entity taxpayer; or
(b) a taxpayer other than a taxpayer described in Subsection (2)(a), if the taxpayer pays, on or before the return due date described in Section 59-10-514, an amount equal to the lesser of:
(i) 90% of the total tax reported on the return for the current taxable year; or
(ii) 100% of the total tax liability for the taxable year immediately preceding the current taxable year.
(3) If a taxpayer fails to meet the requirements of Subsection (2), the commission may apply to the total balance due a penalty as provided in Section 59-1-401.
(4) If a federal income tax return filing is lawfully delayed pending a determination of qualification for a federal tax exemption due to residency outside of the United States, a taxpayer shall file a return within 30 days after that determination is made.
(1)
(a) If any return, claim, statement, or other document required to be filed, or any payment required to be made, within a prescribed period or on or before a prescribed date under authority of any provision of this chapter is, after such period or such date, delivered by United States mail to the agency, officer, or office with which such return, claim, statement, or other document is required to be filed, or to which such payment is required to be made, the date of the United States postmark stamped on the cover in which such return, claim, statement, or other document, or payment, is mailed shall be deemed to be the date of delivery or the date of payment, as the case may be.
(b) Subsection (1)(a) shall apply only if:
(i) the postmark date falls within the prescribed period or on or before the prescribed date:
(A) for the filing (including any extension granted for such filing) of the return, claim, statement, or other document; or
(B) for making the payment (including any extension granted for making such payment); and
(ii) the return, claim, statement, or other document, or payment, was, within the time prescribed in Subsection (1)(b)(i), deposited in the mail in the United States in an envelope or other appropriate wrapper, postage prepaid, properly addressed to the agency, officer, or office with which the return, claim, statement, or other document is required to be filed, or to which such payment is required to be made.
(2) This section shall apply in the case of postmarks not made by the United States post office only if and to the extent provided by rules prescribed by the commission.
(3)
(a) For purposes of this section, if any such return, claim, statement, or other document, or payment, is sent by United States registered mail:
(i) such registration shall be prima facie evidence that the return, claim, statement, or other document was delivered to the agency, officer, or office to which addressed; and
(ii) the date of registration shall be deemed the postmark date.
(b) The commission may provide by rule the extent to which the provisions of Subsection (3)(a) with respect to prima facie evidence of delivery and the postmark date shall apply to certified mail.
(4) This section does not apply with respect to currency or other medium of payment unless actually received and accounted for.
(5)
(a) If any deposit required to be made on or before a prescribed date is, after such date, delivered by the United States mail to the commission, such deposit shall be deemed received by the commission on the date the deposit was mailed.
(b) Subsection (5)(a) applies only if the person required to make the deposit establishes that:
(i) the date of mailing falls on or before the second day before the prescribed date for making the deposit (including any extension of time granted for making the deposit); and
(ii) the deposit was, on or before such second day, mailed in the United States in an envelope or other appropriate wrapper, postage prepaid, properly addressed to the commission.
(1) As used in this section, "legal holiday" means a legal holiday in this state.
(2) If the last day prescribed under authority of this chapter for performing any act falls on Saturday, Sunday, or a legal holiday, the performance of the act shall be considered to be timely if it is performed on the next succeeding day which is not a Saturday, Sunday, or a legal holiday.
(3) For purposes of this section, the last day for the performance of any act shall be determined by including any authorized extension of time.
When not otherwise provided for by this chapter, the commission shall by rule prescribe the place for the filing of any return, statement, or other documents, or copies thereof, required by this chapter or rules.
(1) When a return of tax is required under this chapter or rules, the person required to make such return shall, without assessment or notice and demand from the commission, pay such tax to the commission office with which the return is filed, and shall pay such tax at the time and place fixed for filing the return (determined without regard to any extension of time).
(2) In any case where a tax is required to be paid on or before a certain date, or within a certain period, any reference in this chapter to the date fixed for payment of such tax shall be deemed a reference to the last day fixed for such payment (determined without regard to any extension of time for paying the tax).
(1)
(a) For a taxable year beginning on or after January 1, 2019, but beginning on or before December 31, 2019, a taxpayer shall receive an extension of time for the payment of the amount determined as the tax of the taxpayer, or any part of that amount, for the time period that ends on the last day of the extension to pay the taxpayer's federal income tax.
(b)
(i) For a taxable year beginning on or after January 1, 2020, the commission, except as otherwise provided by this chapter, may extend the time for payment of the amount shown, or required to be shown, on any return required under authority of this chapter (or any installment thereof), for a reasonable period not to exceed six months from the date fixed for payment thereof.
(ii) The extension may exceed six months in the cases of taxpayers who are outside the states of the union and the District of Columbia.
(2)
(a) Under rules prescribed by the commission, the time for payment of the amount determined as a deficiency may be extended for a period not to exceed 18 months from the date fixed for payment of the deficiency, and, in exceptional cases, for a further period not to exceed 12 months.
(b) An extension under this subsection may be granted only where it is shown to the satisfaction of the commission that the payment of a deficiency upon the date fixed for the payment thereof will result in undue hardship to the taxpayer.
(c) No extension may be granted if the deficiency is due to negligence, to intentional disregard of rules, or to fraud with intent to evade tax.
(3) An extension of time for payment of any portion of a claim for an unpaid tax under this chapter, allowed in bankruptcy or receivership proceedings, may be had in the same manner and subject to the same provisions and limitations as provided in Subsection (2).
(1) The commission shall make the inquiries, determinations, and assessments of all taxes (including interest, additional amounts, additions to the tax, and assessable penalties) imposed by this chapter or former chapters imposing income taxes.
(2) The assessment shall be made by recording the liability of the taxpayer in the office of the commission in accordance with rules prescribed by the commission. The commission may, at any time within the period prescribed for assessment, make a supplemental assessment if it is ascertained that any assessment is imperfect or incomplete in any material respect.
(1) If there has been an overpayment of any tax imposed by this chapter, the amount of overpayment is credited as follows:
(a) against an income tax due from a taxpayer;
(b) against:
(i) the amount of a judgment against a taxpayer, including a final judgment or order requiring payment of a fine or of restitution to a victim under Title 77, Chapter 38b, Crime Victims Restitution Act, obtained through due process of law by an entity of state or local government; or
(ii) subject to Subsection (4)(a)(i), a child support obligation that is due or past due, as determined by the Office of Recovery Services in the Department of Health and Human Services and after notice and an opportunity for an adjudicative proceeding, as provided in Subsection (4)(a)(iii); or
(c) subject to Subsections (3), (5), (6), and (7), as bail to ensure the appearance of a taxpayer before the appropriate authority to resolve an outstanding warrant against the taxpayer for which bail is due, if a court of competent jurisdiction has not approved an alternative form of payment.
(2) If a balance remains after an overpayment is credited in accordance with Subsection (1), the balance shall be refunded to the taxpayer.
(3) Bail described in Subsection (1)(c) may be applied to any fine or forfeiture:
(a) that is due and related to a warrant that is outstanding on or after February 16, 1984; and
(b) in accordance with Subsections (5) and (6).
(4)
(a) The amount of an overpayment may be credited against an obligation described in Subsection (1)(b)(ii) if the Office of Recovery Services has sent written notice to the taxpayer's last-known address or the address on file under Section 26B-9-207, stating:
(i) the amount of child support that is due or past due as of the date of the notice or other specified date;
(ii) that any overpayment shall be applied to reduce the amount of due or past-due child support specified in the notice; and
(iii) that the taxpayer may contest the amount of past-due child support specified in the notice by filing a written request for an adjudicative proceeding with the office within 15 days of the notice being sent.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the Office of Recovery Services shall establish rules to implement this Subsection (4), including procedures, in accordance with the other provisions of this section, to ensure:
(i) prompt reimbursement to a taxpayer of any amount of an overpayment that was credited against a child support obligation in error; and
(ii) prompt distribution of properly credited funds to the obligee parent.
(5) The amount of an overpayment may be credited against bail described in Subsection (1)(c) if:
(a) a court has issued a warrant for the arrest of the taxpayer for failure to post bail, appear, or otherwise satisfy the terms of a citation, summons, or court order; and
(b) a notice of intent to apply the overpayment as bail on the issued warrant has been sent to the taxpayer's current address on file with the commission.
(6)
(a)
(i) The commission shall deliver an overpayment applied as bail to the court that issued the warrant of arrest.
(ii) The clerk of the court is authorized to endorse the check or commission warrant of payment on behalf of the payees and deposit the money in the court treasury.
(b)
(i) The court receiving an overpayment applied as bail shall order withdrawal of the warrant for arrest of the taxpayer if:
(A) the case is a case for which a personal appearance of the taxpayer is not required; and
(B) the dollar amount of the overpayment represents the full dollar amount of bail.
(ii) In a case except for a case described in Subsection (6)(b)(i):
(A) the court receiving the overpayment applied as bail is not required to order the withdrawal of the warrant of arrest of the taxpayer during the 40-day period; and
(B) the taxpayer may be arrested on the warrant.
(c)
(i) If a taxpayer fails to respond to the notice required by Subsection (5)(b), or to resolve the warrant within 40 days after the notice is sent under Subsection (5)(b), the overpayment applied as bail is forfeited.
(ii) A court may issue another warrant or allow the original warrant to remain in force if:
(A) the taxpayer has not complied with an order of the court;
(B) the taxpayer has failed to appear and respond to a criminal charge for which a personal appearance is required; or
(C) the taxpayer has paid partial but not full bail in a case for which a personal appearance is not required.
(d) If the alleged violations named in a warrant are later resolved in favor of the taxpayer, the bail amount shall be remitted to the taxpayer.
(7) The fine and bail forfeiture provisions of this section apply to all warrants, fines, fees, and surcharges issued in cases charging a taxpayer with a felony, a misdemeanor, or an infraction described in this section, which are outstanding on or after February 16, 1984.
(8) If the amount allowed as a credit for tax withheld from a taxpayer exceeds the tax to which the credit relates, the excess is considered an overpayment.
(9)
(a) Subject to Subsection (9)(b), a taxpayer shall claim a credit or refund of an overpayment that is attributable to a net operating loss carry back or carry forward within three years after the day on which the return for the taxable year of the net operating loss is due.
(b) The three-year period described in Subsection (9)(a) shall be extended by any extension of time provided in statute for filing the return described in Subsection (9)(a).
(10) If there is no tax liability for a period in which an amount is paid under this chapter, the amount is an overpayment.
(11) If a tax under this chapter is assessed or collected after the expiration of the applicable period of limitation, that amount is an overpayment.
(12)
(a) A taxpayer may file a claim for a credit or refund of an overpayment within two years after the day on which a notice of change, notice of correction, or amended return is required to be filed with the commission if the taxpayer is required to:
(i) report a change or correction in income reported on the taxpayer's federal income tax return;
(ii) report a change or correction that is treated in the same manner as if the change or correction were an overpayment for federal income tax purposes; or
(iii) file an amended return with the commission.
(b) If a report or amended return is not filed within 90 days after the day on which the report or amended return is due, interest on any resulting refund or credit ceases to accrue after the 90-day period.
(c) The amount of the credit or refund may not exceed the amount of the reduction in tax attributable to the federal change, correction, or items amended on the taxpayer's amended federal income tax return.
(d) Except as provided in Subsection (12)(a), this Subsection (12) does not affect the amount or the time within which a claim for credit or refund may be filed.
(13) A credit or refund may not be allowed or made if an overpayment is less than $1.
(14) In the case of an overpayment of tax by an employer under Part 4, Withholding of Tax, an employer shall receive a refund or credit only to the extent that the amount of the overpayment is not deducted and withheld from wages under this chapter.
(15)
(a) If a taxpayer that is allowed a refund under this chapter dies, the commission may make payment to the personal representative of the taxpayer's estate.
(b) If there is no personal representative of the taxpayer's estate, the commission may make payment to those persons that establish entitlement to inherit the property of the decedent in the proportions established in Title 75, Utah Uniform Probate Code.
(16) If an overpayment relates to a change in net income described in Subsection 59-10-536(2)(a), a credit may be allowed or a refund paid any time before the expiration of the period within which a deficiency may be assessed.
(17) An overpayment of a tax imposed by this chapter shall accrue interest at the rate and in the manner prescribed in Section 59-1-402.
(18) A pass-through entity may claim a refund of qualifying excess withholding in accordance with Section 59-10-1403.3 in lieu of a pass-though entity taxpayer claiming a tax credit under Section 59-7-614.4 or Section 59-10-1103.
(1) Except as provided in Subsection (2), the commission may not issue a refund before March 1.
(2) The commission may issue a refund before March 1 if, before March 1, the commission determines that:
(a) an employer has filed the one or more forms in accordance with Subsection 59-10-406(8) the employer is required to file with respect to an individual; and
(b) the individual has filed a return in accordance with this chapter.
A taxpayer that claims to be allowed a refund or credit under Section 59-10-529 may file a claim for the refund or credit with the commission within the time provided in Section 59-10-529.
(1)
(a) If, before the expiration of the time prescribed in this section for the assessment of a tax, the commission and the taxpayer agree in writing to the assessment of the tax in a time period after the time period prescribed in this section for the assessment of a tax, the tax may be assessed at any time before the expiration of the period to which the commission and the taxpayer agree.
(b) A time period that the commission and a taxpayer agree upon under Subsection (1)(a) may be extended by written agreement:
(i) between the commission and the taxpayer; and
(ii) made before the expiration of the time period that the commission and the taxpayer previously agreed upon.
(2)
(a)
(i) Except as provided in Subsection (2)(a)(iii), if a change is made in a taxpayer's net income on the taxpayer's federal income tax return because of an action by the federal government, the taxpayer shall file with the commission within 90 days after the date there is a final determination of the action:
(A) a copy of the taxpayer's amended federal income tax return; and
(B) an amended state income tax return that conforms with the changes made in the taxpayer's amended federal income tax return.
(ii) Except as provided in Subsection (2)(a)(iii), if a change is made in a taxpayer's net income on the taxpayer's federal income tax return because the taxpayer files an amended federal income tax return, the taxpayer shall file with the commission within 90 days after the date the taxpayer files the amended federal income tax return:
(A) a copy of the taxpayer's amended federal income tax return; and
(B) an amended state income tax return that conforms with the changes made in the taxpayer's amended federal income tax return.
(iii) A taxpayer is not required to file a return described in Subsection (2)(a)(i) or (ii) if a change in the taxpayer's federal income tax return does not increase state tax liability.
(b)
(i) Subject to Subsection (2)(b)(iii), the commission may assess a deficiency in state income taxes within three years after a notification or amended federal income tax return described in Subsection (2)(a) is filed.
(ii) The amount of an assessment of tax under this Subsection (2)(b) may not exceed the amount of the increase in Utah tax attributable to the change described in Subsection (2)(a).
(iii) If a taxpayer fails to report to the commission a change specified in this Subsection (2)(b), the assessment may be made at any time within six years after the date of the change.
(3) If a deficiency in federal income tax required to be reported is attributable to a net operating loss carry back or carry forward, a deficiency in the tax imposed by this chapter may be assessed within three years from the due date of the return for the taxable year of the net operating loss.
(4) Except as provided in Subsections (1) through (3), this section does not affect the time within which or the amount for which an assessment may otherwise be made.
(5)
(a) An erroneous refund shall be considered an underpayment of tax on the date the commission makes the erroneous refund.
(b) An assessment of a deficiency arising out of an erroneous refund may be made at any time within three years from the date the refund is made, except that an assessment may be made within five years from the time the refund is made if any part of the refund is induced by fraud or misrepresentation of a material fact.
(6)
(a) Subject to Subsection (6)(b), if a return is required for a decedent or for the decedent's estate during the period of administration, the tax shall be assessed within 18 months after written request for the assessment:
(i) made after the return is filed; and
(ii) by:
(A) the personal representative; or
(B) another person representing the estate of the decedent.
(b) Except as otherwise provided in this section, the assessment described in Subsection (6)(a) may not be made more than three years after the time the return is filed.
(7)
(a) The amount of a tax imposed by this chapter may be assessed at any time within six years after the time the return is filed if:
(i) a resident individual, resident estate, or resident trust omits from gross income as reported for federal income tax purposes an amount properly includable in adjusted gross income, which is in excess of 25% of the amount of gross income stated in the return; or
(ii) a nonresident individual, nonresident estate, or nonresident trust omits from gross income as reported for federal income tax purposes an amount of adjusted gross income derived from Utah sources determined in accordance with Section 59-10-117, properly includable in adjusted gross income, that is in excess of 25% of the amount of adjusted gross income derived from Utah sources which is reflected in the return.
(b) For purposes of Subsection (7)(a)(ii), there may not be taken into account any amount that is omitted in the return if the amount is disclosed:
(i)
(A) in the return; or
(B) in a statement attached to the return; and
(ii) in a manner adequate to apprise the commission of the nature and amount of the item.
(1)
(a) Subject to the other provisions of this section, if any amount of income tax is not paid on or before the last date prescribed in this chapter for payment, interest on the amount at the rate and in the manner prescribed in Section 59-1-402 shall be paid.
(b) Interest under this Subsection (1) may not be paid if the amount of the interest is less than $1.
(c) If the time for filing of a return of tax withheld by an employer is extended, the employer shall pay interest for the period for which the extension is granted and may not charge such interest to the employee.
(2) If a deficiency or any interest or additional amount assessed in connection with an amount under Subsection (1), or a penalty in case of a delinquency provided for in Section 59-10-539 is not paid in full within 10 days from the date of notice and demand from the commission, there shall be collected as part of the tax, interest at the rate and in the manner prescribed in Section 59-1-402 from the date of the notice and demand until the entire amount of the deficiency, interest, and additional amount is paid.
(3) If the time for payment of the amount determined as the tax by the taxpayer is extended under the authority of Section 59-10-522, interest shall be collected as a part of the amount at the rate and in the manner prescribed in Section 59-1-402.
(1) Interest shall be allowed and paid upon any overpayment in respect of any tax imposed by this chapter, at the rate and in the manner prescribed in Section 59-1-402.
(2) For purposes of this section, if any overpayment of tax imposed by this chapter results from a carryback of a net operating loss, such overpayment shall be deemed not to have been made prior to the close of the taxable year of the net operating loss which results in such carryback.
(1)
(a) In case of failure to file an income tax return and pay the tax required under this chapter on or before the date prescribed for paying the tax, including extensions, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on the return a penalty as provided in Section 59-1-401.
(b) For purposes of Subsection (1)(a), the amount of tax required to be shown on a return shall be reduced by:
(i) the amount of any part of the tax that is paid on or before the date prescribed for payment of the tax; and
(ii) the amount of any credit against the tax that may be claimed upon the return.
(2) If any part of any deficiency in a tax imposed by this chapter is due to negligence or intentional disregard of rules, but without intent to defraud, a penalty shall be assessed, collected, and paid as provided in Section 59-1-401 in the same manner as if the deficiency were an underpayment.
(3)
(a) If any part of a deficiency in a tax imposed by this chapter is due to fraud, there shall be added to the tax a penalty as provided in Section 59-1-401.
(b) The amount described in Subsection (3)(a) shall be in lieu of any other penalty imposed by Subsection (1) or (2).
(4)
(a) If any employer, without intent to evade or defeat any tax imposed by this chapter or the payment of any tax imposed by this chapter, fails to make a return and pay a tax withheld by the employer at the time required under Section 59-10-402, the employer shall be liable for the tax and shall pay the tax together with interest at the rate and in the manner prescribed in Section 59-1-402.
(b) The penalty provided in Subsection (1) and interest may not be charged to or collected from the employee by the employer.
(c) The commission has the same rights and powers for the collection of a tax, interest, and penalty against an employer described in this section as are prescribed by this chapter for the collection of tax against an individual taxpayer.
(5)
(a) Any person required to collect, truthfully account for, and pay over the tax imposed by this chapter who willfully fails to collect the tax or truthfully account for and pay over the tax or willfully attempts in any manner to evade or default the tax or the payment of the tax, shall, in addition to other penalties provided by law, be liable for a penalty as provided in Section 59-1-401.
(b) A penalty described in Subsection (1) or (2) may not be imposed for any offense to which Subsection (5)(a) applies.
(6) In case of each failure to file a statement of a payment to another person, required under authority of Section 59-10-406, relating to information at source, including the duplicate statement of tax withheld on wages, on the date prescribed for filing the statement, including extensions, unless it is shown that the failure is due to reasonable cause and not to willful neglect, there shall, upon notice and demand by the commission and in the same manner as tax, be paid by the person that fails to file the statement, a penalty as provided in Section 59-1-401.
(7)
(a) Except as provided in Subsection (7)(b) or (c), a person is subject to a penalty as provided in Section 59-1-401 if the person fails to do one or more of the following as required by rules prescribed by the commission under this chapter:
(i) to include the person's identifying number in any return, statement, or other document;
(ii) to furnish the person's identifying number to another person; or
(iii) to include on any return, statement, or other document made with respect to another person the identifying number of the other person.
(b) A person is not subject to a penalty under Subsection (7)(a) if it is shown that the person's failure to do an act described in Subsection (7)(a) is due to reasonable cause.
(c) If a person fails to include the person's own identification number in any return, statement, or other document, a penalty under Subsection (7)(a) may not be imposed unless the person fails to supply the person's identification number to the commission within 30 days after the commission requests the identification number.
(8) In addition to the penalties required by this section, there shall be added to a tax due interest payable at the rate and in the manner prescribed in Section 59-1-402 for underpayments.
(9) The penalties and interest required by this section shall be:
(a) paid upon notice and demand by the commission in accordance with Section 59-1-1411; and
(b) assessed, collected, and paid in accordance with Chapter 1, Part 14, Assessment, Collections, and Refunds Act.
(10) A reference in this chapter to income tax or tax imposed by this chapter is considered to include the penalties and interest provided by this section.
(11) For purposes of Subsections (2) and (3), the amount shown as the tax by the taxpayer upon the taxpayer's return shall be taken into account in determining the amount of the deficiency only if the return is filed on or before the last day prescribed for filing of the return, including extensions.
(1) Every person who, without fraudulent intent, fails to make, render, sign, or verify any return, or to supply any information within the time required by or under the provisions of this chapter, is liable for a penalty as provided in Section 59-1-401.
(2) It is unlawful for any person, with intent to evade any tax, to fail to timely remit the full amount of tax required by this chapter. A violation of this section is punishable as provided in Section 59-1-401.
(3) Any person who knowingly or intentionally makes, renders, signs, or verifies any false or fraudulent return or statement or supplies any false or fraudulent information is guilty of a criminal violation as provided in Section 59-1-401.
(4) Any person who, with intent to evade any tax or any requirement of this chapter, or any lawful requirement of the commission, fails to pay the tax, or to make, render, sign, or verify any return, or to supply any information, within the time required by or under this chapter, or who, with like intent, makes, renders, signs, or verifies any false or fraudulent return or statement, or supplies any false or fraudulent information, is liable for a civil penalty as provided in Section 59-1-401, and is also guilty of a criminal violation as provided in Section 59-1-401.
(1)
(a) The commission shall administer and enforce a tax imposed under this chapter for which purpose it may divide the state into districts in each of which a branch office of the commission may be maintained.
(b) A county may not be divided in forming a district.
(2)
(a) The commission shall deposit at least quarterly all revenue collected or received by the commission under this chapter with the state treasurer.
(b) Subject to Sections 59-10-529 and 59-10-531, the commission shall distribute and credit, at least quarterly and based on a pro rata share of Income Tax Fund and Uniform School Fund appropriations for the current fiscal year, the revenue described in Subsection (2)(a) to:
(i) the Income Tax Fund; and
(ii) the Uniform School Fund in accordance with Section 53F-9-201.1.
(c) The commission may credit to or draw from the Income Tax Fund and the Uniform School Fund:
(i) annually to adjust for differences between estimates and actual amounts; or
(ii) in the proportion described in Subsection (2)(b) to issue a refund.
(d) If a refund the commission makes is not claimed within two years from the date the commission issues the refund:
(i) the refund reverts to the state to be credited to the Income Tax Fund; and
(ii) no further claim may be made on the commission for the amount of the refund.
Nothing in this chapter applies to or affects any tax, interest, or additions to tax or penalties, imposed by or due under former Title 59, Chapter 14, Cigarette and Tobacco Tax and Licensing Act, in respect of taxable years commencing before January 1, 1973.
(1) Except as provided in Subsection (2), when a nonrefundable individual income tax credit, under Part 10, Nonrefundable Tax Credit Act, expires or is repealed, the commission shall allow a claimant, estate, or trust to carry forward any amount of the tax credit that remains for the period of time described in the tax credit for the taxable year in which the claimant, estate, or trust first claimed the tax credit.
(2) Subsection (1) does not apply to a tax credit described in Subsection 59-10-1010(2)(c)(iv).
As used in this part:
(1)
(a) Except as provided in Subsection (1)(b) or Subsection 59-10-1003(2), "claimant" means a resident or nonresident person that has state taxable income.
(b) "Claimant" does not include an estate or trust.
(2) Except as provided in Subsection 59-10-1003(2), "estate" means a nonresident estate or a resident estate that has state taxable income.
(3) "Nonrefundable tax credit" or "tax credit" means a tax credit that a claimant, estate, or trust may:
(a) claim:
(i) as provided by statute; and
(ii) in an amount that does not exceed the claimant's, estate's, or trust's tax liability under this chapter for a taxable year; and
(b) carry forward or carry back:
(i) if allowed by statute; and
(ii) unless otherwise provided in statute, to the extent that the amount of the tax credit exceeds the claimant's, estate's, or trust's tax liability under this chapter for a taxable year.
(4) Except as provided in Subsection 59-10-1003(2), "trust" means a nonresident trust or a resident trust that has state taxable income.
(1) As used in this section, "tax return" means a tax return filed in accordance with this chapter.
(2) Except as provided in Subsection (4), beginning two taxable years after the requirements of Subsection (3) are met:
(a) the commission shall remove a tax credit allowed under this part from each tax return on which the tax credit appears; and
(b) a claimant, estate, or trust filing a tax return may not claim the tax credit.
(3) Except as provided in Subsection (4), the commission shall remove a tax credit allowed under this part from a tax return and a claimant, estate, or trust filing a tax return may not claim the tax credit as provided in Subsection (2) if:
(a) the total amount of the tax credit claimed or carried forward by all claimants, estates, or trusts filing tax returns is less than $10,000 per year for three consecutive taxable years beginning on or after January 1, 2002; and
(b) less than 10 claimants, estates, and trusts per year for the three consecutive taxable years described in Subsection (3)(a), file a tax return claiming or carrying forward the tax credit.
(4) This section does not apply to a tax credit under Section 59-10-1006 or 59-10-1027.
(5) The commission shall, on or before the November interim meeting of the year after the taxable year in which the requirements of Subsection (3) are met, report to the Revenue and Taxation Interim Committee by electronic means that in accordance with this section:
(a) the commission is required to remove a tax credit from each tax return on which the tax credit appears; and
(b) a claimant, estate, or trust filing a tax return may not claim the tax credit.
(6)
(a) Within a 30-day period after making the report required by Subsection (5), the commission shall publish a list in accordance with Subsection (6)(b) stating each tax credit that the commission will remove from a return on which the tax credit appears.
(b) The list shall:
(i) be published on:
(A) the commission's website; and
(B) the public legal notice website in accordance with Section 45-1-101;
(ii) include a statement that:
(A) the commission is required to remove the tax credit from each return on which the tax credit appears; and
(B) the tax credit may not be claimed on a return;
(iii) state the taxable year for which the removal described in Subsection (6)(a) takes effect; and
(iv) remain available for viewing and searching until the commission publishes a new list in accordance with this Subsection (6).
(1) A nonresident individual or a part-year resident individual that claims a tax credit in accordance with Section 59-10-1017, 59-10-1018, 59-10-1019, 59-10-1022, 59-10-1023, 59-10-1024, 59-10-1028, 59-10-1042, 59-10-1043, 59-10-1044, 59-10-1046, 59-10-1047, or 59-10-1048 may only claim an apportioned amount of the tax credit equal to:
(a) for a nonresident individual, the product of:
(i) the state income tax percentage for the nonresident individual; and
(ii) the amount of the tax credit that the nonresident individual would have been allowed to claim but for the apportionment requirements of this section; or
(b) for a part-year resident individual, the product of:
(i) the state income tax percentage for the part-year resident individual; and
(ii) the amount of the tax credit that the part-year resident individual would have been allowed to claim but for the apportionment requirements of this section.
(2) A nonresident estate or trust that claims a tax credit in accordance with Section 59-10-1017, 59-10-1020, 59-10-1022, 59-10-1024, 59-10-1028, or 59-10-1048 may only claim an apportioned amount of the tax credit equal to the product of:
(a) the state income tax percentage for the nonresident estate or trust; and
(b) the amount of the tax credit that the nonresident estate or trust would have been allowed to claim but for the apportionment requirements of this section.
(1) Except as provided in Subsection (2), a claimant, estate, or trust may claim a nonrefundable tax credit against the tax otherwise due under this chapter equal to the amount of the tax imposed:
(a) on that claimant, estate, or trust for the taxable year;
(b) by another state of the United States, the District of Columbia, or a possession of the United States; and
(c) on income:
(i) derived from sources within that other state of the United States, District of Columbia, or possession of the United States; and
(ii) if that income is also subject to tax under this chapter.
(2) A tax credit under this section may only be claimed by a:
(a) resident claimant;
(b) resident estate; or
(c) resident trust.
(3) The application of the tax credit provided under this section may not operate to reduce the tax payable under this chapter to an amount less than would have been payable were the income from the other state disregarded.
(4) The tax credit provided by this section shall be computed and claimed in accordance with rules prescribed by the commission.
(1) For tax years beginning January 1, 1983, and thereafter, in computing the tax due the state under Section 59-10-104 there shall be a nonrefundable tax credit allowed for cash contributions made by a claimant, estate, or trust within the taxable year to nonprofit rehabilitation sheltered workshop facilities for persons with a disability operating in Utah that are certified by the Department of Health and Human Services as a qualifying facility.
(2) The allowable tax credit is an amount equal to 50% of the aggregate amount of the cash contributions to the qualifying rehabilitation facilities, but the allowed tax credit may not exceed $200.
(3) The amount of contribution claimed as a tax credit under this section may not also be claimed as a charitable deduction in determining net taxable income.
(1) As used in this section:
(a) "At-home parent" means a parent:
(i) who provides full-time care at the parent's residence for one or more of the parent's own qualifying children;
(ii) who claims the qualifying child as a dependent on the parent's individual income tax return for the taxable year for which the parent claims the credit; and
(iii) if the sum of the following amounts are $3,000 or less for the taxable year for which the parent claims the credit:
(A) the total wages, tips, and other compensation listed on all of the parent's federal Forms W-2; and
(B) the gross income listed on the parent's federal Form 1040 Schedule C, Profit or Loss From Business.
(b) "Parent" means an individual who:
(i) has a parent-child relationship, as defined in Section 81-5-102, with a qualifying child;
(ii) is the stepfather or stepmother of a qualifying child;
(iii) has a qualifying child placed in the individual's home:
(A) by a child-placing agency, as defined in Section 26B-2-101; and
(B) for the purpose of legally adopting the child;
(iv) is a foster parent of a qualifying child; or
(v) is a legal guardian of a qualifying child.
(c) "Qualifying child" means a child who is no more than 12 months of age on the last day of the taxable year for which the tax credit is claimed.
(2) For a taxable year beginning on or after January 1, 2000, a claimant may claim on the claimant's individual income tax return a nonrefundable tax credit of $100 for each qualifying child if:
(a) the claimant or another claimant filing a joint individual income tax return with the claimant is an at-home parent; and
(b) the adjusted gross income of all of the claimants filing the individual income tax return is less than or equal to $50,000.
(3) A claimant may not carry forward or carry back a tax credit authorized by this section.
(4)
(a) In accordance with any rules prescribed by the commission under Subsection (4)(b), the Division of Finance shall transfer at least annually from the General Fund into the Income Tax Fund the aggregate amount of all tax credits claimed under this section.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for making a transfer from the General Fund into the Income Tax Fund as required by Subsection (4)(a).
(1)
(a) For tax years beginning January 1, 1993, and thereafter, there is allowed to a claimant, estate, or trust, as a nonrefundable tax credit against the income tax due, an amount equal to 20% of qualified rehabilitation expenditures, costing more than $10,000, incurred in connection with any residential certified historic building. When qualifying expenditures of more than $10,000 are incurred, the tax credit allowed by this section shall apply to the full amount of expenditures.
(b) All rehabilitation work to which the tax credit may be applied shall be approved by the State Historic Preservation Office prior to completion of the rehabilitation project as meeting the Secretary of the Interior's Standards for Rehabilitation so that the office can provide corrective comments to the claimant, estate, or trust in order to preserve the historical qualities of the building.
(c) Any amount of tax credit remaining may be carried forward to each of the five taxable years following the qualified expenditures.
(d) The commission, in consultation with the State Historic Preservation Office, shall promulgate rules to implement this section.
(2) As used in this section:
(a) "Certified historic building" means a building that is listed on the National Register of Historic Places within three years of taking the credit under this section or that is located in a National Register Historic District and the building has been designated by the State Historic Preservation Office as being of significance to the district.
(b)
(i) "Qualified rehabilitation expenditures" means any amount properly chargeable to the rehabilitation and restoration of the physical elements of the building, including the historic decorative elements, and the upgrading of the structural, mechanical, electrical, and plumbing systems to applicable codes.
(ii) "Qualified rehabilitation expenditures" does not include expenditures related to:
(A) a claimant's, estate's, or trust's personal labor;
(B) cost of acquisition of the property;
(C) any expenditure attributable to the enlargement of an existing building;
(D) rehabilitation of a certified historic building without the approval required in Subsection (1)(b); or
(E) any expenditure attributable to landscaping and other site features, outbuildings, garages, and related features.
(c) "Residential" means a building used for residential use, either owner occupied or income producing.
(1) Subject to other provisions of this section, a claimant, estate, or trust in a recycling market development zone as defined in Section 19-13-102 may claim the following nonrefundable tax credits:
(a) a tax credit equal to the product of the percentage listed in Subsection 59-10-104(2) and the purchase price paid for machinery and equipment used directly in:
(i) commercial composting; or
(ii) manufacturing facilities or plant units that:
(A) manufacture, process, compound, or produce recycled items of tangible personal property for sale; or
(B) reduce or reuse postconsumer waste material; and
(b) a tax credit equal to the lesser of:
(i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test inventory, and utilities made by the claimant, estate, or trust for establishing and operating recycling or composting technology in the state; and
(ii) $2,000.
(2)
(a) To claim a tax credit described in Subsection (1), the claimant, estate, or trust shall receive from the Department of Environmental Quality a written certification, on a form approved by the commission, that includes:
(i) a statement that the claimant, estate, or trust is operating within the boundaries of a recycling market development zone;
(ii) for a claim of the tax credit described in Subsection (1)(a):
(A) the type of the machinery and equipment that the claimant, estate, or trust purchased;
(B) the date that the claimant, estate, or trust purchased the machinery and equipment;
(C) the purchase price for the machinery and equipment;
(D) the total purchase price for all machinery and equipment for which the claimant, estate, or trust is claiming a tax credit;
(E) the amount of the claimant's, estate's, or trust's tax credit; and
(F) a statement that the machinery and equipment are integral to the composting or recycling process; and
(iii) for a claim of the tax credit described in Subsection (1)(b):
(A) the type of net expenditure that the claimant, estate, or trust made to a third party;
(B) the date that the claimant, estate, or trust made the payment to a third party;
(C) the amount that the claimant, estate, or trust paid to each third party;
(D) the total amount that the claimant, estate, or trust paid to all third parties;
(E) a statement that the net expenditures support the establishment and operation of recycling or composting technology in the state; and
(F) the amount of the claimant's, estate's, or trust's tax credit.
(b)
(i) The Department of Environmental Quality shall provide a claimant, estate, or trust seeking to claim a tax credit under Subsection (1) with a copy of the written certification.
(ii) The claimant, estate, or trust shall retain a copy of the written certification for the same period of time that a person is required to keep books and records under Section 59-1-1406.
(c) The Department of Environmental Quality shall submit to the commission an electronic list that includes:
(i) the name and identifying information of each claimant, estate, or trust to which the Department of Environmental Quality issues a written certification; and
(ii) for each claimant, estate, or trust, the amount of each tax credit listed on the written certification.
(3) A claimant, estate, or trust may not claim a tax credit under Subsection (1)(a), Subsection (1)(b), or both that exceeds 40% of the claimant's, estate's, or trust's state income tax liability as the tax liability is calculated:
(a) for the taxable year in which the claimant, estate, or trust made the purchases or payments;
(b) before any other tax credits the claimant, estate, or trust may claim for the taxable year; and
(c) before the claimant, estate, or trust claims a tax credit authorized by this section.
(4) The commission shall make rules governing what information a claimant, estate, or trust shall file with the commission to verify the entitlement to and amount of a tax credit.
(5) Except as provided in Subsections (6) through (8), a claimant, estate, or trust may carry forward, to the next three taxable years, the amount of a tax credit described in Subsection (1)(a) that the claimant, estate, or trust does not use for the taxable year.
(6) A claimant, estate, or trust may not claim or carry forward a tax credit described in Subsection (1)(a) in a taxable year during which the claimant, estate, or trust claims or carries forward a tax credit under Section 63N-2-213.
(7) A claimant, estate, or trust may not claim a tax credit described in Subsection (1)(b) in a taxable year during which the claimant, estate, or trust claims or carries forward a tax credit under Section 63N-2-213.
(1) As used in this section:
(a) "Allocation certificate" means a certificate in a form prescribed by the commission and issued by the corporation to a housing sponsor that specifies the aggregate amount of the tax credit awarded under this section to a qualified development and includes:
(i) the aggregate annual amount of the tax credit awarded that may be claimed by one or more qualified taxpayers; and
(ii) the credit period over which the tax credit may be claimed by one or more qualified taxpayers.
(b) "Building" means a qualified low-income building as defined in Section 42(c), Internal Revenue Code.
(c) "Corporation" means the Utah Housing Corporation created in Section 63H-8-201.
(d) Except as provided in Subsection (5)(c), "credit period" means the same as that term is defined in Section 42(f)(1), Internal Revenue Code.
(e) "Designated reporter" means, as selected by a housing sponsor, the housing sponsor or one of the housing sponsor's direct or indirect partners, members, or shareholders that will provide information to the commission regarding the allocation of tax credits under this section.
(f) "Federal low-income housing credit" means the federal low-income housing credit described in Section 42, Internal Revenue Code.
(g) "Housing sponsor" means an entity that owns a qualified development.
(h) "Pass-through entity" means the same as that term is defined in Section 59-10-1402.
(i)
(i) Subject to Subsection (1)(i)(ii), "pass-through entity taxpayer" means the same as that term is defined in Section 59-10-1402.
(ii) The determination of whether a pass-through entity taxpayer is considered a partner, member, or shareholder of a pass-through entity shall be made in accordance with applicable state law governing the pass-through entity.
(j) "Qualified allocation plan" means a qualified allocation plan adopted by the corporation in accordance with Section 42(m), Internal Revenue Code.
(k) "Qualified development" means a "qualified low-income housing project":
(i) as defined in Section 42(g)(1), Internal Revenue Code; and
(ii) that is located in the state.
(l)
(i) "Qualified taxpayer" means a claimant, estate, or trust that:
(A) owns a direct or indirect interest, through one or more pass-through entities, in a qualified development; and
(B) meets the requirements to claim a tax credit under this section.
(ii) "Qualified taxpayer" includes a pass-through entity taxpayer to which a tax credit under this section is passed through by a pass-through entity.
(2)
(a) A qualified taxpayer may claim a nonrefundable tax credit under this section against taxes otherwise due under this chapter.
(b) The tax credit shall be in an amount equal to the tax credit amount specified on the allocation certificate that the corporation issues to a housing sponsor under this section.
(c)
(i) For a calendar year beginning on or before December 31, 2016, the aggregate annual tax credit that the corporation may allocate for each year of the credit period in accordance with this section and Section 59-7-607 is an amount equal to the product of:
(A) 12.5 cents; and
(B) the population of Utah.
(ii) For a calendar year beginning on or after January 1, 2017, but beginning on or before December 31, 2022, the aggregate annual tax credit that the corporation may allocate for each year of the credit period in accordance with this section and Section 59-7-607 is an amount equal to the product of:
(A) 34.5 cents; and
(B) the population of Utah.
(iii) For a calendar year beginning on or after January 1, 2023, but beginning on or before December 31, 2028, the aggregate annual tax credit that the corporation may allocate for each year of the credit period in accordance with this section and Section 59-7-607 is $10,000,000.
(iv) For a calendar year beginning on or after January 1, 2024, in addition to the amount of annual tax credits available for allocation as described in Subsections (2)(c)(i) through (2)(c)(iii), the corporation shall have the following tax credit amounts available for allocation:
(A) any tax credits allocated in a calendar year that are subsequently returned to the corporation or recaptured by the corporation may be allocated in the following calendar year, except no tax credits under this Subsection (2)(c)(iv) shall be allocated after December 31, 2028; and
(B) if the actual amount of tax credits allocated in a calendar year to qualified developments is less than the total amount of credits available to be allocated to qualified developments, the balance of the credits but no more than 15% of the total amount of credits available for allocation to qualified developments may be allocated by the corporation to qualified developments in the following calendar year, except no tax credits under this Subsection (2)(c)(iv) shall be allocated after December 31, 2028.
(v) For a calendar year beginning on or after January 1, 2029, the aggregate annual tax credit that the corporation may allocate for each year of the credit period pursuant to this section and Section 59-7-607 is the amount described in Subsection (2)(c)(ii).
(vi) For purposes of this Subsection (2)(c), the population of Utah shall be determined in accordance with Section 146(j), Internal Revenue Code.
(d)
(i) Subject to Subsection (2)(d)(ii), a qualified taxpayer that is a pass-through entity may allocate a tax credit under this section to one or more of the pass-through entity's pass-through entity taxpayers in any manner agreed upon, regardless of whether:
(A) the pass-through entity taxpayer is eligible to claim any portion of a federal low-income housing tax credit for the qualified development;
(B) the allocation of the tax credit has substantial economic effect within the meaning of Section 704(b), Internal Revenue Code; or
(C) the pass-through entity taxpayer is considered a partner for federal income tax purposes.
(ii) With respect to a tax year, a qualified taxpayer that is a pass-through entity taxpayer may claim a tax credit allocated to the qualified taxpayer by a pass-through entity under Subsection (2)(d)(i) so long as the qualified taxpayer's ownership interest in the pass-through entity is:
(A) acquired on or before December 31 of the tax year to which the tax credit relates; and
(B) reflected in the report required in Subsection (6)(b) for the tax year to which the tax credit relates.
(e) If a qualified taxpayer that is a pass-through entity taxpayer assigns to another taxpayer the pass-through entity taxpayer's ownership interest in a pass-through entity, including the pass-through entity taxpayer's interest in the tax credit associated with the ownership interest, the assignee shall be considered a qualified taxpayer and may claim the tax credit so long as the assignee's ownership interest in the pass-through entity is:
(i) acquired on or before December 31 of the tax year to which the tax credit relates; and
(ii) reflected in the report required in Subsection (6)(b) for the tax year to which the tax credit relates.
(3)
(a) The corporation shall determine criteria and procedures for allocating the tax credit under this section and Section 59-7-607 and incorporate the criteria and procedures into the corporation's qualified allocation plan.
(b) The corporation shall create the criteria under Subsection (3)(a) based on:
(i) the number of affordable housing units to be created in Utah for low and moderate income persons in a qualified development;
(ii) the level of area median income being served by a qualified development;
(iii) the need for the tax credit for the economic feasibility of a qualified development; and
(iv) the extended period for which a qualified development commits to remain as affordable housing.
(4) Any housing sponsor may apply to the corporation for a tax credit allocation under this section.
(5)
(a)
(i) The corporation shall determine the amount of the tax credit to allocate to a qualified development in accordance with the qualified allocation plan.
(ii)
(A) Before the allocation certificate is issued to the housing sponsor, the corporation shall send to the housing sponsor written notice of the corporation's preliminary determination of the tax credit amount to be allocated to the qualified development.
(B) The notice described in Subsection (5)(a)(ii)(A) shall specify the corporation's preliminary determination of the tax credit amount to be allocated to the qualified development for each year of the credit period and state that allocation of the tax credit is contingent upon the issuance of an allocation certificate.
(iii) Upon approving a final cost certification in accordance with the qualified allocation plan, the corporation shall issue an allocation certificate to the housing sponsor as evidence of the allocation.
(iv) The amount of the tax credit specified in an allocation certificate may not exceed 100% of the federal low-income housing credit awarded to a qualified development.
(b)
(i) Notwithstanding Subsection (5)(a), if a housing sponsor applies to the corporation for a tax credit under this section and an allocation certificate is not yet issued, a qualified taxpayer may claim a tax credit based upon the corporation's preliminary determination of the tax credit amount as stated in the notice under Subsection (5)(a)(ii).
(ii) Upon issuance of the allocation certificate to the housing sponsor, a qualified taxpayer that claims a tax credit under this Subsection (5)(b) shall file an amended tax return to adjust the tax credit amount if the amount previously claimed by the qualified taxpayer is different than the amount specified in the allocation certificate.
(c) The amount of tax credit that may be claimed in the first year of the credit period may not be reduced as a result of the calculation in Section 42(f)(2), Internal Revenue Code.
(d) On or before January 31 of each year, the corporation shall provide to the commission in a form approved by the commission a report that describes each allocation certificate that the corporation issued during the previous calendar year.
(6)
(a) A housing sponsor shall provide to the commission identification of the housing sponsor's designated reporter.
(b) For each tax year in which a qualified taxpayer claims a tax credit under this section, the designated reporter shall provide to the commission in a form approved by the commission:
(i) a list of each qualified taxpayer that has been allocated a portion of the tax credit awarded in the allocation certificate for that tax year;
(ii) the amount of tax credit that has been allocated to each qualified taxpayer described in Subsection (6)(b)(i) for that tax year; and
(iii) any other information the commission requires to demonstrate that the aggregate annual amount of tax credits allocated to all qualified taxpayers for that tax year does not exceed the aggregate annual tax credit amount specified in the allocation certificate.
(7)
(a) All elections made by a housing sponsor in accordance with Section 42, Internal Revenue Code, shall apply to this section.
(b)
(i) If a qualified taxpayer is required to recapture a portion of any federal low-income housing credit, the qualified taxpayer that has been allocated a portion of a tax credit under this section shall also be required to recapture a portion of the tax credit under this section.
(ii) The state recapture amount is equal to the percentage of the state tax credit that equals the proportion the federal recapture amount bears to the original federal low-income housing credit amount subject to recapture.
(iii) The designated reporter shall identify each qualified taxpayer that is required to recapture a portion of any state tax credits as described in this Subsection (7)(b).
(8)
(a) The corporation may reallocate any tax credits returned to the corporation in any year within the same time period as provided in Section 42, Internal Revenue Code.
(b) Tax credits that are unallocated by the corporation in any year may be carried over for allocation in subsequent years.
(9)
(a) If a tax credit is not claimed by a qualified taxpayer in the year in which it is earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax credit may be carried back three years or may be carried forward five years as a credit against the tax.
(b) Carryover tax credits under Subsection (9)(a) shall be applied against the tax:
(i) before the application of the tax credits earned in the current year; and
(ii) on a first-earned first-used basis.
(10) Any tax credit taken in this section may be subject to an annual audit by the commission.
(11) The corporation shall provide annually an electronic report to the Revenue and Taxation Interim Committee that includes:
(a) the purpose and effectiveness of the tax credits;
(b) any recommendations for legislative changes to the aggregate tax credit amount that the corporation is authorized to allocate each year under Subsection (2)(c); and
(c) the benefits of the tax credits to the state.
(12) The commission may, in consultation with the corporation, promulgate rules to implement this section.
(13) As part of the Revenue and Taxation Interim Committee's review of the tax credit required by Section 59-10-137, the Revenue and Taxation Interim Committee shall:
(a) conduct a review of the aggregate tax credit amount that the corporation is authorized to allocate and has allocated each year under Subsection (2)(c); and
(b) consider any recommendations provided by the corporation under Subsection (11)(b).
(1)
(a) A claimant, estate, or trust meeting the requirements of this section may claim the following nonrefundable tax credits:
(i) a research tax credit of 5% of the claimant's, estate's, or trust's qualified research expenses for the current taxable year that exceed the base amount provided for under Subsection (3);
(ii) a tax credit for a payment to a qualified organization for basic research as provided in Section 41(e), Internal Revenue Code of 5% for the current taxable year that exceed the base amount provided for under Subsection (3); and
(iii) a tax credit equal to 7.5% of the claimant's, estate's, or trust's qualified research expenses for the current taxable year.
(b) Subject to Subsection (4), a claimant, estate, or trust may claim a tax credit under:
(i) Subsection (1)(a)(i) or (1)(a)(iii), for the taxable year for which the claimant, estate, or trust incurs the qualified research expenses; or
(ii) Subsection (1)(a)(ii), for the taxable year for which the claimant, estate, or trust makes the payment to the qualified organization.
(c) The tax credits provided for in this section do not include the alternative incremental credit provided for in Section 41(c)(4), Internal Revenue Code.
(2) Except as specifically provided for in this section:
(a) the tax credits authorized under Subsection (1) shall be calculated as provided in Section 41, Internal Revenue Code; and
(b) the definitions provided in Section 41, Internal Revenue Code, apply in calculating the tax credits authorized under Subsection (1).
(3) For purposes of this section:
(a) the base amount shall be calculated as provided in Sections 41(c) and 41(h), Internal Revenue Code, except that:
(i) the base amount does not include the calculation of the alternative incremental credit provided for in Section 41(c)(4), Internal Revenue Code;
(ii) a claimant's, estate's, or trust's gross receipts include only those gross receipts attributable to sources within this state as provided in Section 59-10-118; and
(iii) notwithstanding Section 41(c), Internal Revenue Code, for purposes of calculating the base amount, a claimant, estate, or trust:
(A) may elect to be treated as a start-up company as provided in Section 41(c)(3)(B), Internal Revenue Code, regardless of whether the claimant, estate, or trust meets the requirements of Section 41(c)(3)(B)(i)(I) or (II), Internal Revenue Code; and
(B) may not revoke an election to be treated as a start-up company under Subsection (3)(a)(iii)(A);
(b) "basic research" is as defined in Section 41(e)(7), Internal Revenue Code, except that the term includes only basic research conducted in this state;
(c) "qualified research" is as defined in Section 41(d), Internal Revenue Code, except that the term includes only qualified research conducted in this state;
(d) "qualified research expenses" is as defined and calculated in Section 41(b), Internal Revenue Code, except that the term includes only:
(i) in-house research expenses incurred in this state; and
(ii) contract research expenses incurred in this state; and
(e) a tax credit provided for in this section is not terminated if a credit terminates under Section 41, Internal Revenue Code.
(4)
(a) If the amount of a tax credit claimed by a claimant, estate, or trust under Subsection (1)(a)(i) or (ii) exceeds the claimant's, estate's, or trust's tax liability under this chapter for a taxable year, the amount of the tax credit exceeding the tax liability:
(i) may be carried forward for a period that does not exceed the next 14 taxable years; and
(ii) may not be carried back to a taxable year preceding the current taxable year.
(b) A claimant, estate, or trust may not carry forward the tax credit allowed by Subsection (1)(a)(iii).
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for purposes of this section prescribing a certification process for qualified organizations to ensure that amounts paid to the qualified organizations are for basic research conducted in this state.
(6) If a provision of Section 41, Internal Revenue Code, is modified or repealed, the commission shall report the modification or repeal by electronic means to the Revenue and Taxation Interim Committee within 60 days after the day on which the modification or repeal becomes effective.
(7)
(a) The Revenue and Taxation Interim Committee shall review the tax credits provided for in this section on or before October 1 of the year after the year in which the commission reports under Subsection (6) a modification or repeal of a provision of Section 41, Internal Revenue Code.
(b) The review described in Subsection (7)(a) is in addition to the review required by Section 59-10-137.
(c) Notwithstanding Subsection (7)(a), the Revenue and Taxation Interim Committee is not required to review the tax credits provided for in this section if the only modification to a provision of Section 41, Internal Revenue Code, is the extension of the termination date provided for in Section 41(h), Internal Revenue Code.
(d) The Revenue and Taxation Interim Committee shall address in a review under this section:
(i) the cost of the tax credits provided for in this section;
(ii) the purpose and effectiveness of the tax credits provided for in this section;
(iii) whether the tax credits provided for in this section benefit the state; and
(iv) whether the tax credits provided for in this section should be:
(A) continued;
(B) modified; or
(C) repealed.
(e) If the Revenue and Taxation Interim Committee reviews the tax credits provided for in this section, the committee shall issue a report of the Revenue and Taxation Interim Committee's findings.
(1) As used in this section:
(a)
(i) "Active solar system" means a system of equipment that is capable of:
(A) collecting and converting incident solar radiation into thermal, mechanical, or electrical energy; and
(B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a separate apparatus to storage or to the point of use.
(ii) "Active solar system" includes water heating, space heating or cooling, and electrical or mechanical energy generation.
(b) "Biomass system" means a system of apparatus and equipment for use in:
(i) converting material into biomass energy, as defined in Section 59-12-102; and
(ii) transporting the biomass energy by separate apparatus to the point of use or storage.
(c) "Direct use geothermal system" means a system of apparatus and equipment that enables the direct use of geothermal energy to meet energy needs, including heating a building, an industrial process, and aquaculture.
(d) "Geothermal electricity" means energy that is:
(i) contained in heat that continuously flows outward from the earth; and
(ii) used as a sole source of energy to produce electricity.
(e) "Geothermal energy" means energy generated by heat that is contained in the earth.
(f) "Geothermal heat pump system" means a system of apparatus and equipment that:
(i) enables the use of thermal properties contained in the earth at temperatures well below 100 degrees Fahrenheit; and
(ii) helps meet heating and cooling needs of a structure.
(g) "Hydroenergy system" means a system of apparatus and equipment that is capable of:
(i) intercepting and converting kinetic water energy into electrical or mechanical energy; and
(ii) transferring this form of energy by separate apparatus to the point of use or storage.
(h) "Office" means the Office of Energy Development created in Section 79-6-401.
(i)
(i) "Passive solar system" means a direct thermal system that utilizes the structure of a building and its operable components to provide for collection, storage, and distribution of heating or cooling during the appropriate times of the year by utilizing the climate resources available at the site.
(ii) "Passive solar system" includes those portions and components of a building that are expressly designed and required for the collection, storage, and distribution of solar energy.
(j) "Photovoltaic system" means an active solar system that generates electricity from sunlight.
(k)
(i) "Principal recovery portion" means the portion of a lease payment that constitutes the cost a person incurs in acquiring a residential energy system.
(ii) "Principal recovery portion" does not include:
(A) an interest charge; or
(B) a maintenance expense.
(l) "Residential energy system" means the following used to supply energy to or for a residential unit:
(i) an active solar system;
(ii) a biomass system;
(iii) a direct use geothermal system;
(iv) a geothermal heat pump system;
(v) a hydroenergy system;
(vi) a passive solar system; or
(vii) a wind system.
(m)
(i) "Residential unit" means a house, condominium, apartment, or similar dwelling unit that:
(A) is located in the state; and
(B) serves as a dwelling for a person, group of persons, or a family.
(ii) "Residential unit" does not include property subject to a fee under:
(A) Section 59-2-405;
(B) Section 59-2-405.1;
(C) Section 59-2-405.2;
(D) Section 59-2-405.3; or
(E) Section 72-10-110.5.
(n) "Wind system" means a system of apparatus and equipment that is capable of:
(i) intercepting and converting wind energy into mechanical or electrical energy; and
(ii) transferring these forms of energy by a separate apparatus to the point of use or storage.
(2) A claimant, estate, or trust may claim an energy system tax credit as provided in this section against a tax due under this chapter for an energy system that is completed and placed in service before January 1, 2028.
(3) For a taxable year beginning on or after January 1, 2007, a claimant, estate, or trust may claim a nonrefundable tax credit under this section with respect to a residential unit the claimant, estate, or trust owns or uses if:
(a) the claimant, estate, or trust:
(i) purchases and completes a residential energy system to supply all or part of the energy required for the residential unit; or
(ii) participates in the financing of a residential energy system to supply all or part of the energy required for the residential unit;
(b) the residential energy system is installed on or after January 1, 2007; and
(c) the claimant, estate, or trust obtains a written certification from the office in accordance with Subsection (5).
(4)
(a) For a residential energy system, other than a photovoltaic system, the tax credit described in this section is equal to the lesser of:
(i) 25% of the reasonable costs, including installation costs, of each residential energy system installed with respect to each residential unit the claimant, estate, or trust owns or uses; and
(ii) $2,000.
(b) Subject to Subsection (5)(d), for a residential energy system that is a photovoltaic system, the tax credit described in this section is equal to the lesser of:
(i) 25% of the reasonable costs, including installation costs, of each system installed with respect to each residential unit the claimant, estate, or trust owns or uses; or
(ii)
(A) for a system installed on or after January 1, 2007, but on or before December 31, 2017, $2,000;
(B) for a system installed on or after January 1, 2018, but on or before December 31, 2020, $1,600;
(C) for a system installed on or after January 1, 2021, but on or before December 31, 2021, $1,200;
(D) for a system installed on or after January 1, 2022, but on or before December 31, 2022, $800;
(E) for a system installed on or after January 1, 2023, but on or before December 31, 2023, $400; and
(F) for a system installed on or after January 1, 2024, $0.
(c)
(i) The office shall determine the amount of the tax credit that a claimant, estate, or trust may claim and list that amount on the written certification that the office issues under Subsection (5).
(ii) The claimant, estate, or trust may claim the tax credit in the amount listed on the written certification that the office issues under Subsection (5).
(d) A claimant, estate, or trust may claim a tax credit under Subsection (3) for the taxable year in which the residential energy system is installed.
(e) If the amount of a tax credit listed on the written certification exceeds a claimant's, estate's, or trust's tax liability under this chapter for a taxable year, the claimant, estate, or trust may carry forward the amount of the tax credit exceeding the liability for a period that does not exceed the next four taxable years.
(f) A claimant, estate, or trust may claim a tax credit with respect to additional residential energy systems or parts of residential energy systems for a subsequent taxable year if the total amount of tax credit the claimant, estate, or trust claims does not exceed $2,000 per residential unit.
(g)
(i) Subject to Subsections (4)(g)(ii) and (iii), a claimant, estate, or trust that leases a residential energy system installed on a residential unit may claim a tax credit under Subsection (3) if the claimant, estate, or trust confirms that the lessor irrevocably elects not to claim the tax credit.
(ii) A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a residential energy system may claim as a tax credit under Subsection (3) only the principal recovery portion of the lease payments.
(iii) A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a residential energy system may claim a tax credit under Subsection (3) for a period that does not exceed seven taxable years after the date the lease begins, as stated in the lease agreement.
(h) If a claimant, estate, or trust sells a residential unit to another person before the claimant, estate, or trust claims the tax credit under Subsection (3):
(i) the claimant, estate, or trust may assign the tax credit to the other person; and
(ii)
(A) if the other person files a return under Chapter 7, Corporate Franchise and Income Taxes, the other person may claim the tax credit as if the other person had met the requirements of Section 59-7-614 to claim the tax credit; or
(B) if the other person files a return under this chapter, the other person may claim the tax credit under this section as if the other person had met the requirements of this section to claim the tax credit.
(5)
(a) Before a claimant, estate, or trust may claim a tax credit under this section, the claimant, estate, or trust shall obtain a written certification from the office.
(b) The office shall issue a claimant, estate, or trust a written certification if the office determines that:
(i) the claimant, estate, or trust meets the requirements of this section to receive a tax credit; and
(ii) the office determines that the residential energy system with respect to which the claimant, estate, or trust seeks to claim a tax credit:
(A) has been completely installed;
(B) is a viable system for saving or producing energy from clean resources; and
(C) is safe, reliable, efficient, and technically feasible to ensure that the residential energy system uses the state's renewable and nonrenewable energy resources in an appropriate and economic manner.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office may make rules:
(i) for determining whether a residential energy system meets the requirements of Subsection (5)(b)(ii); and
(ii) for purposes of determining the amount of a tax credit that a claimant, estate, or trust may receive under Subsection (4), establishing the reasonable costs of a residential energy system, as an amount per unit of energy production.
(d) A claimant, estate, or trust that obtains a written certification from the office shall retain the certification for the same time period a person is required to keep books and records under Section 59-1-1406.
(e) The office shall submit to the commission an electronic list that includes:
(i) the name and identifying information of each claimant, estate, or trust to which the office issues a written certification; and
(ii) for each claimant, estate, or trust:
(A) the amount of the tax credit listed on the written certification; and
(B) the date the clean energy system was installed.
(6) A tax credit under this section is in addition to any tax credits provided under the laws or rules and regulations of the United States.
(7) A purchaser of one or more solar units that claims a tax credit under Section 59-10-1024 for the purchase of the one or more solar units may not claim a tax credit under this section for that purchase.
(1) As used in this section:
(a) "human organ" means:
(i) human bone marrow; or
(ii) any part of a human:
(A) intestine;
(B) kidney;
(C) liver;
(D) lung; or
(E) pancreas;
(b) "live organ donation" means that an individual who is living donates one or more of that individual's human organs:
(i) to another human; and
(ii) to be transplanted:
(A) using a medical procedure; and
(B) to the body of the other human; and
(c)
(i) "live organ donation expenses" means the total amount of expenses:
(A) incurred by a claimant; and
(B) that:
(I) are not reimbursed to that claimant by any person;
(II) are directly related to a live organ donation by:
(Aa) the claimant; or
(Bb) another individual that the claimant is allowed to claim as a dependent in accordance with Section 151, Internal Revenue Code; and
(III) are for:
(Aa) travel;
(Bb) lodging; or
(Cc) a lost wage; and
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define "lost wage."
(2) For taxable years beginning on or after January 1, 2005, a claimant may claim a nonrefundable tax credit:
(a) as provided in this section;
(b) against taxes otherwise due under this chapter;
(c) for live organ donation expenses incurred during the taxable year for which the live organ donation occurs; and
(d) in an amount equal to the lesser of:
(i) the actual amount of the live organ donation expenses; or
(ii) $10,000.
(3) If the amount of a tax credit under this section exceeds a claimant's tax liability under this chapter for a taxable year, the amount of the tax credit that exceeds the claimant's tax liability may be carried forward for a period that does not exceed the next five taxable years.
(1) As used in this section:
(a) "Account owner" means the same as that term is defined in Section 53H-10-101.
(b) "Grantor trust" means the same as that term is defined in Section 53H-10-201.
(c) "Higher education costs" means the same as that term is defined in Section 53H-10-201.
(d) "Maximum amount of a qualified investment for the taxable year" means, for a taxable year, the product of the percentage listed in Subsection 59-10-104(2) and:
(i) subject to Subsection (1)(d)(iii), for a claimant, estate, or trust that is an account owner, if that claimant, estate, or trust is other than husband and wife account owners who file a single return jointly, the maximum amount of a qualified investment:
(A) listed in Subsection 53H-10-205(1)(e)(ii); and
(B) increased or kept for that taxable year in accordance with Subsections 53H-10-205(1)(f) and (g);
(ii) subject to Subsection (1)(d)(iii), for claimants who are husband and wife account owners who file a single return jointly, the maximum amount of a qualified investment:
(A) listed in Subsection 53H-10-205(1)(e)(iii); and
(B) increased or kept for that taxable year in accordance with Subsections 53H-10-205(1)(f) and (g); or
(iii) for a grantor trust:
(A) if the owner of the grantor trust has a single filing status or head of household filing status as defined in Section 59-10-1018, the amount described in Subsection (1)(d)(i); or
(B) if the owner of the grantor trust has a joint filing status as defined in Section 59-10-1018, the amount described in Subsection (1)(d)(ii).
(e) "Owner of the grantor trust" means the same as that term is defined in Section 53H-10-201.
(f) "Qualified investment" means the same as that term is defined in Section 53H-10-201.
(2) Except as provided in Section 59-10-1002.2 and subject to the other provisions of this section, a claimant, estate, or trust that is an account owner may claim a nonrefundable tax credit equal to the product of:
(a) the amount of a qualified investment made:
(i) during the taxable year; and
(ii) into an account owned by the claimant, estate, or trust; and
(b) the percentage listed in Subsection 59-10-104(2).
(3) A claimant, estate, or trust, or a person other than the claimant, estate, or trust, may make a qualified investment described in Subsection (2).
(4) A claimant, estate, or trust that is an account owner may not claim a tax credit under this section with respect to any portion of a qualified investment described in Subsection (2) that a claimant, estate, trust, or person described in Subsection (3) deducts on a federal income tax return.
(5) A tax credit under this section may not exceed the maximum amount of a qualified investment for the taxable year.
(6) A claimant, estate, or trust that is an account owner may not carry forward or carry back the tax credit under this section.
(1) As used in this section:
(a) "Head of household filing status" means a head of household, as defined in Section 2(b), Internal Revenue Code, who files a single federal individual income tax return for the taxable year.
(b) "Joint filing status" means:
(i) spouses who file a single return jointly under this chapter for a taxable year; or
(ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a single federal individual income tax return for the taxable year.
(c) "Qualifying dependent" means an individual with respect to whom the claimant is allowed to claim a tax credit under Section 24, Internal Revenue Code, on the claimant's federal individual income tax return for the taxable year.
(d) "Single filing status" means:
(i) a single individual who files a single federal individual income tax return for the taxable year; or
(ii) a married individual who:
(A) does not file a single federal individual income tax return jointly with that married individual's spouse for the taxable year; and
(B) files a single federal individual income tax return for the taxable year.
(e) "State or local income tax" means the lesser of:
(i) the amount of state or local income tax that the claimant:
(A) pays for the taxable year; and
(B) reports on the claimant's federal individual income tax return for the taxable year; and
(ii) the amount of state or local income tax that is included and allowed as an itemized deduction on the claimant's federal individual income tax return for the taxable year.
(f)
(i) "Utah itemized deduction" means the amount the claimant deducts as allowed as an itemized deduction on the claimant's federal individual income tax return for that taxable year minus any amount of state or local income tax for the taxable year.
(ii) "Utah itemized deduction" does not include any amount of qualified business income that the claimant subtracts as allowed by Section 199A, Internal Revenue Code, on the claimant's federal income tax return for that taxable year.
(g) "Utah personal exemption" means, subject to Subsection (6), $1,750 multiplied by the number of the claimant's qualifying dependents plus an additional qualifying dependent in the year of a qualifying dependent's birth.
(2) Except as provided in Section 59-10-1002.2, and subject to Subsections (3) through (5), a claimant may claim a nonrefundable tax credit against taxes otherwise due under this part equal to the sum of:
(a)
(i) for a claimant that deducts the standard deduction on the claimant's federal individual income tax return for the taxable year, 6% of the amount the claimant deducts as allowed as the standard deduction on the claimant's federal individual income tax return for that taxable year; or
(ii) for a claimant that itemizes deductions on the claimant's federal individual income tax return for the taxable year, 6% of the amount of the claimant's Utah itemized deduction; and
(b) 6% of the claimant's Utah personal exemption.
(3) A claimant may not carry forward or carry back a tax credit under this section.
(4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar by which a claimant's state taxable income exceeds:
(a) for a claimant who has a single filing status, $15,095;
(b) for a claimant who has a head of household filing status, $22,643; or
(c) for a claimant who has a joint filing status, $30,190.
(5)
(a) For a taxable year beginning on or after January 1, 2022, the commission shall increase or decrease annually the following dollar amounts by a percentage equal to the percentage difference between the consumer price index for the preceding calendar year and the consumer price index for calendar year 2020:
(i) the dollar amount listed in Subsection (4)(a); and
(ii) the dollar amount listed in Subsection (4)(b).
(b) After the commission increases or decreases the dollar amounts listed in Subsection (5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the nearest whole dollar.
(c) After the commission rounds the dollar amounts as required by Subsection (5)(b), the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that the dollar amount listed in Subsection (4)(c) is equal to the product of:
(i) the dollar amount listed in Subsection (4)(a); and
(ii) two.
(d) For purposes of Subsection (5)(a), the commission shall calculate the consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(6)
(a) For a taxable year beginning on or after January 1, 2022, the commission shall increase annually the Utah personal exemption amount listed in Subsection (1)(g) by a percentage equal to the percentage by which the consumer price index for the preceding calendar year exceeds the consumer price index for calendar year 2020.
(b) After the commission increases the Utah personal exemption amount as described in Subsection (6)(a), the commission shall round the Utah personal exemption amount to the nearest whole dollar.
(c) For purposes of Subsection (6)(a), the commission shall calculate the consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(1) As used in this section:
(a) "Eligible claimant" means a claimant, regardless of whether that claimant is retired, who was born on or before December 31, 1952.
(b) "Head of household filing status" means the same as that term is defined in Section 59-10-1018.
(c) "Joint filing status" means the same as that term is defined in Section 59-10-1018.
(d) "Married filing separately status" means a married individual who:
(i) does not file a single federal individual income tax return jointly with that married individual's spouse for the taxable year; and
(ii) files a single federal individual income tax return for the taxable year.
(e) "Modified adjusted gross income" means the sum of the following for an eligible claimant or, if the eligible claimant's return under this chapter is allowed a joint filing status, the eligible claimant and the eligible claimant's spouse:
(i) adjusted gross income for the taxable year for which a tax credit is claimed under this section;
(ii) any interest income that is not included in adjusted gross income for the taxable year described in Subsection (1)(e)(i); and
(iii) any addition to adjusted gross income required by Section 59-10-114 for the taxable year described in Subsection (1)(e)(i).
(f) "Single filing status" means a single individual who files a single federal individual income tax return for the taxable year.
(2) Except as provided in Section 59-10-1002.2 and Subsections (3) and (4), each eligible claimant may claim a nonrefundable tax credit of $450 against taxes otherwise due under this part.
(3) An eligible claimant may not:
(a) carry forward or carry back the amount of a tax credit under this section that exceeds the eligible claimant's tax liability for the taxable year; or
(b) claim a tax credit under this section for a taxable year if a tax credit under Section 59-10-1042 or 59-10-1043 is claimed on the claimant's return for the same taxable year.
(4) The tax credit allowed by Subsection (2) claimed on a return filed under this part shall be reduced by $.025 for each dollar by which modified adjusted gross income for purposes of the return exceeds:
(a) for a federal individual income tax return that is allowed a married filing separately status, $16,000;
(b) for a federal individual income tax return that is allowed a single filing status, $25,000;
(c) for a federal individual income tax return that is allowed a head of household filing status, $32,000; or
(d) for a return under this chapter that is allowed a joint filing status, $32,000.
(1) For taxable years beginning on or after January 1, 2008, an estate or trust may claim a nonrefundable tax credit against taxes otherwise due under Part 2, Trusts and Estates, equal to the product of:
(a) the sum of:
(i) the amount that a resident or nonresident estate or trust deducts under Section 163, Internal Revenue Code, for interest paid or accrued, as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year;
(ii) the amount that a resident or nonresident estate or trust deducts under Section 164, Internal Revenue Code, for taxes paid or accrued other than for any amount paid or accrued for state or local income taxes for the taxable year, as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year;
(iii) the amount that a resident or nonresident estate or trust other than a qualified nongrantor charitable lead trust deducts under Section 642(c), Internal Revenue Code, as a charitable contribution deduction, as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year;
(iv) subject to Subsection (3), the amount that a resident or nonresident estate or trust deducts as an attorney, accountant, or return preparer fee, as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year; and
(v) subject to Subsection (3), the amount that a resident or nonresident estate or trust deducts as an other deduction or miscellaneous itemized deduction, as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year; and
(b) 6%.
(2) An estate or trust may not carry forward or carry back a tax credit under this section.
(3) The tax credit allowed by Subsection (1) shall be reduced by $.013 for each dollar by which an estate's or trust's taxable income exceeds $12,000.
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(a) for purposes of Subsection (1)(a)(iv), the commission may make rules for determining what constitutes an attorney, accountant, or return preparer fee if that attorney, accountant, or return preparer fee is consistent with an attorney, accountant, or return preparer fee that may be deducted on a federal income tax return for estates and trusts; or
(b) for purposes of Subsection (1)(a)(v), the commission may make rules for determining what constitutes an other deduction or miscellaneous itemized deduction if that other deduction or miscellaneous itemized deduction is consistent with an other deduction or miscellaneous itemized deduction that may be deducted on a federal income tax return for estates and trusts.
(1) As used in this section:
(a)
(i) "Capital gain transaction" means a transaction that results in a:
(A) short-term capital gain; or
(B) long-term capital gain.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "transaction."
(b) "Commercial domicile" means the principal place from which the trade or business of a Utah small business corporation is directed or managed.
(c) "Long-term capital gain" is as defined in Section 1222, Internal Revenue Code.
(d) "Qualifying stock" means stock that is:
(i)
(A) common; or
(B) preferred;
(ii) as defined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, originally issued to:
(A) a claimant, estate, or trust; or
(B) a partnership if the claimant, estate, or trust that claims a tax credit under this section:
(I) was a partner on the day on which the stock was issued; and
(II) remains a partner until the last day of the taxable year for which the claimant, estate, or trust claims a tax credit under this section; and
(iii) issued:
(A) by a Utah small business corporation;
(B) on or after January 1, 2008; and
(C) for:
(I) money; or
(II) other property, except for stock or securities.
(e) "Short-term capital gain" is as defined in Section 1222, Internal Revenue Code.
(f)
(i) "Utah small business corporation" means a corporation that:
(A) except as provided in Subsection (1)(f)(ii), is a small business corporation as defined in Section 1244(c)(3), Internal Revenue Code;
(B) except as provided in Subsection (1)(f)(iii), meets the requirements of Section 1244(c)(1)(C), Internal Revenue Code; and
(C) has its commercial domicile in this state.
(ii) The dollar amount listed in Section 1244(c)(3)(A) is considered to be $2,500,000.
(iii) The phrase "the date the loss on such stock was sustained" in Sections 1244(c)(1)(C) and 1244(c)(2), Internal Revenue Code, is considered to be "the last day of the taxable year for which the claimant, estate, or trust claims a tax credit under this section."
(2) For taxable years beginning on or after January 1, 2008, a claimant, estate, or trust that meets the requirements of Subsection (3) may claim a nonrefundable tax credit equal to the product of:
(a) the total amount of the claimant's, estate's, or trust's short-term capital gain or long-term capital gain on a capital gain transaction that occurs on or after January 1, 2008; and
(b) the percentage listed in Subsection 59-10-104(2).
(3) For purposes of Subsection (2), a claimant, estate, or trust may claim the nonrefundable tax credit allowed by Subsection (2) if:
(a) 70% or more of the gross proceeds of the capital gain transaction are expended:
(i) to purchase qualifying stock in a Utah small business corporation; and
(ii) within a 12-month period after the day on which the capital gain transaction occurs; and
(b) prior to the purchase of the qualifying stock described in Subsection (3)(a)(i), the claimant, estate, or trust did not have an ownership interest in the Utah small business corporation that issued the qualifying stock.
(4) A claimant, estate, or trust may not carry forward or carry back a tax credit under this section.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(a) defining the term "gross proceeds"; and
(b) prescribing the circumstances under which a claimant, estate, or trust has an ownership interest in a Utah small business corporation.
(1) As used in this section:
(a) "Claimant with dependents" means a claimant:
(i) regardless of the claimant's filing status for purposes of filing a federal individual income tax return for the taxable year; and
(ii) who claims one or more dependents under Section 151, Internal Revenue Code, as allowed on the claimant's federal individual income tax return for the taxable year.
(b) "Eligible insured individual" means:
(i) the claimant who is insured under a health benefit plan;
(ii) the spouse of the claimant described in Subsection (1)(b)(i) if:
(A) the claimant files a single return jointly under this chapter with the claimant's spouse for the taxable year; and
(B) the spouse is insured under the health benefit plan described in Subsection (1)(b)(i); or
(iii) a dependent of the claimant described in Subsection (1)(b)(i) if:
(A) the claimant claims the dependent under Section 151, Internal Revenue Code, as allowed on the claimant's federal individual income tax return for the taxable year; and
(B) the dependent is insured under the health benefit plan described in Subsection (1)(b)(i).
(c) "Excluded expenses" means an amount a claimant pays for insurance offered under a health benefit plan for a taxable year if:
(i) the claimant claims a tax credit for that amount under Section 35, Internal Revenue Code:
(A) on the claimant's federal individual income tax return for the taxable year; and
(B) with respect to an eligible insured individual;
(ii) the claimant deducts that amount under Section 162 or 213, Internal Revenue Code:
(A) on the claimant's federal individual income tax return for the taxable year; and
(B) with respect to an eligible insured individual; or
(iii) the claimant excludes that amount from gross income under Section 106 or 125, Internal Revenue Code, with respect to an eligible insured individual.
(d)
(i) "Health benefit plan" is as defined in Section 31A-1-301.
(ii) "Health benefit plan" does not include equivalent self-insurance as defined by the Insurance Department by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(e) "Joint claimant with no dependents" means a husband and wife who:
(i) file a single return jointly under this chapter for the taxable year; and
(ii) do not claim a dependent under Section 151, Internal Revenue Code, on the husband's and wife's federal individual income tax return for the taxable year.
(f) "Single claimant with no dependents" means:
(i) a single individual who:
(A) files a single federal individual income tax return for the taxable year; and
(B) does not claim a dependent under Section 151, Internal Revenue Code, on the single individual's federal individual income tax return for the taxable year;
(ii) a head of household:
(A) as defined in Section 2(b), Internal Revenue Code, who files a single federal individual income tax return for the taxable year; and
(B) who does not claim a dependent under Section 151, Internal Revenue Code, on the head of household's federal individual income tax return for the taxable year; or
(iii) a married individual who:
(A) does not file a single federal individual income tax return jointly with that married individual's spouse for the taxable year; and
(B) does not claim a dependent under Section 151, Internal Revenue Code, on that married individual's federal individual income tax return for the taxable year.
(2) Subject to Subsection (3), and except as provided in Subsection (4), for taxable years beginning on or after January 1, 2009, a claimant may claim a nonrefundable tax credit equal to the product of:
(a) the difference between:
(i) the total amount the claimant pays during the taxable year for:
(A) insurance offered under a health benefit plan; and
(B) an eligible insured individual; and
(ii) excluded expenses; and
(b) the percentage listed in Subsection 59-10-104(2).
(3) The maximum amount of a tax credit described in Subsection (2) a claimant may claim on a return for a taxable year is:
(a) for a single claimant with no dependents, $300;
(b) for a joint claimant with no dependents, $600; or
(c) for a claimant with dependents, $900.
(4) A claimant may not claim a tax credit under this section if the claimant is eligible to participate in insurance offered under a health benefit plan maintained and funded in whole or in part by:
(a) the claimant's employer; or
(b) another person's employer.
(5) A claimant may not carry forward or carry back a tax credit under this section.
(1) As used in this section:
(a) "Commercial domicile" means the principal place from which the trade or business of a Utah small business corporation is directed or managed.
(b) "Eligible claimant, estate, or trust" means the same as that term is defined in Section 63N-2-802.
(c) "Life science establishment" means an establishment primarily engaged in the development or manufacture of products in one or more of the following categories:
(i) biotechnologies;
(ii) medical devices;
(iii) medical diagnostics; and
(iv) pharmaceuticals.
(d) "Office" means the Governor's Office of Economic Development.
(e) "Pass-through entity" means the same as that term is defined in Section 59-10-1402.
(f) "Pass-through entity taxpayer" means the same as that term is defined in Section 59-10-1402.
(g) "Qualifying ownership interest" means an ownership interest that is:
(i)
(A) common stock;
(B) preferred stock; or
(C) an ownership interest in a pass-through entity;
(ii) originally issued to:
(A) an eligible claimant, estate, or trust; or
(B) a pass-through entity if the eligible claimant, estate, or trust that claims a tax credit under this section was a pass-through entity taxpayer of the pass-through entity on the day on which the qualifying ownership interest was issued and remains a pass-through entity taxpayer of the pass-through entity until the last day of the taxable year for which the eligible claimant, estate, or trust claims a tax credit under this section; and
(iii) issued:
(A) by a Utah small business corporation;
(B) on or after January 1, 2011; and
(C) for money or other property, except for stock or securities.
(h)
(i) Except as provided in Subsection (1)(h)(ii), "Utah small business corporation" means the same as that term is defined in Section 59-10-1022.
(ii) For purposes of this section, a corporation under Section 1244(c)(3)(A), Internal Revenue Code, is considered to include a pass-through entity.
(2) Subject to the other provisions of this section, an eligible claimant, estate, or trust that holds a tax credit certificate issued to the eligible claimant, estate, or trust in accordance with Section 63N-2-808 for that taxable year may claim a nonrefundable tax credit in an amount up to 35% of the purchase price of a qualifying ownership interest in a Utah small business corporation by the claimant, estate, or trust if:
(a) the qualifying ownership interest is issued by a Utah small business corporation that is a life science establishment;
(b) the qualifying ownership interest in the Utah small business corporation is purchased for at least $25,000;
(c) the eligible claimant, estate, or trust owned less than 30% of the qualifying ownership interest of the Utah small business corporation at the time of the purchase of the qualifying ownership interest; and
(d) on each day of the taxable year in which the purchase of the qualifying ownership interest was made, the Utah small business corporation described in Subsection (2)(a) has at least 50% of the Utah small business corporation's employees in the state.
(3) Subject to Subsection (4), the tax credit under Subsection (2):
(a) may only be claimed by an eligible claimant, estate, or trust:
(i) for a taxable year for which the eligible claimant, estate, or trust holds a tax credit certificate issued in accordance with Section 63N-2-808; and
(ii) subject to obtaining a tax credit certificate for each taxable year as required by Subsection (3)(a)(i), for a period of three taxable years as follows:
(A) the tax credit in the taxable year in which the purchase of the qualifying ownership interest was made may not exceed 10% of the purchase price of the qualifying ownership interest;
(B) the tax credit in the taxable year after the taxable year described in Subsection (3)(a)(ii)(A) may not exceed 10% of the purchase price of the qualifying ownership interest; and
(C) the tax credit in the taxable year two years after the taxable year described in Subsection (3)(a)(ii)(A) may not exceed 15% of the purchase price of the qualifying ownership interest; and
(b) may not exceed the lesser of:
(i) the amount listed on the tax credit certificate issued in accordance with Section 63N-2-808; or
(ii) $350,000 in a taxable year.
(4) An eligible claimant, estate, or trust may not claim a tax credit under this section for a taxable year if the eligible claimant, estate, or trust:
(a) has sold any of the qualifying ownership interest during the taxable year; or
(b) does not hold a tax credit certificate for that taxable year that is issued to the eligible claimant, estate, or trust by the office in accordance with Section 63N-2-808.
(5) If a Utah small business corporation in which an eligible claimant, estate, or trust purchases a qualifying ownership interest fails, dissolves, or otherwise goes out of business, the eligible claimant, estate, or trust may not claim both the tax credit provided in this section and a capital loss on the qualifying ownership interest.
(6) If an eligible claimant is a pass-through entity taxpayer that files a return under Chapter 7, Corporate Franchise and Income Taxes, the eligible claimant may claim the tax credit under this section on the return filed under Chapter 7, Corporate Franchise and Income Taxes.
(7) A claimant, estate, or trust may not carry forward or carry back a tax credit under this section.
(8)
(a)
(i) To assist the Revenue and Taxation Interim Committee with the review required by Section 59-10-137, the office shall provide the following information, if available to the office, to the Office of the Legislative Fiscal Analyst by electronic means:
(A) the amount of tax credit that the office grants to each eligible business entity for each taxable year;
(B) the amount of eligible new state tax revenues generated by each eligible product or project;
(C) estimates for each of the next three calendar years of the following:
(I) the amount of tax credit that the office will grant;
(II) the amount of eligible new state tax revenues that will be generated; and
(III) the number of new incremental jobs within the state that will be generated; and
(D) any other information that the Office of the Legislative Fiscal Analyst requests.
(ii) In providing the information described in Subsection (8)(a)(i), the office shall redact information that identifies a recipient of a tax credit under this section.
(iii) If, notwithstanding the redactions made under Subsection (8)(a)(ii), reporting the information described in Subsection (8)(a)(i) might disclose the identity of a recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to provide the information described in Subsection (8)(a)(i) in the aggregate for all entities that receive the tax credit under this section.
(b) The Office of the Legislative Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a summary and analysis of the information provided to the Office of the Legislative Fiscal Analyst by the office under Subsection (8)(a).
(1) As used in this section:
(a) "Active component of the United States Armed Forces" means active duty service in the United States Army, United States Navy, United States Air Force, United States Marine Corps, United States Space Force, or United States Coast Guard.
(b) "Combat related death" means an individual who dies:
(i) on or after January 1, 2010; and
(ii)
(A) while in military service in a combat zone; or
(B) as a result of a wound, disease, or injury the individual incurs while in military service in a combat zone.
(c) "Combat zone" means an area that the President of the United States designates by Executive Order as an area in which an active component of the United States Armed Forces or a reserve component of the United States Armed Forces are or have engaged in combat.
(d) "Military service in a combat zone" means service:
(i) in an active component of the United States Armed Forces or reserve component of the United States Armed Forces; and
(ii) performed:
(A) on or after the date the President of the United States designates by Executive Order as the date combatant activities begin in a combat zone; and
(B) on or before the date the President of the United States designates by Executive Order as the date combatant activities terminate in a combat zone.
(e) "Reserve component of the United States Armed Forces" means service in a reserve component of the armed forces listed in 10 U.S.C. Sec. 101(c) or 10 U.S.C. Sec. 10101.
(2) A claimant, estate, or trust that files a return on behalf of an individual who dies a combat related death may claim a nonrefundable tax credit against that individual's tax liability under this chapter as provided in this section.
(3) For purposes of Subsection (2), the tax credit is equal to the tax liability of the individual who dies a combat related death for the taxable year during which the individual dies.
(1) As used in this section:
(a) "Capital gain transaction" means a transaction that results in a:
(i) short-term capital gain; or
(ii) long-term capital gain.
(b) "Long-term capital gain" means the same as that term is defined in Section 1222, Internal Revenue Code.
(c) "Long-term capital loss" means the same as that term is defined in Section 1222, Internal Revenue Code.
(d) "Net capital gain" means the amount by which the sum of long-term capital gains and short-term capital gains on a claimant's, estate's, or trust's transactions from exchanges made for a taxable year of one form of legal tender for another form of legal tender exceeds the sum of long-term capital losses and short-term capital losses on those transactions for that taxable year.
(e) "Short-term capital gain" means the same as that term is defined in Section 1222, Internal Revenue Code.
(f) "Short-term capital loss" means the same as that term is defined in Section 1222, Internal Revenue Code.
(2) Except as provided in Section 59-10-1002.2, for taxable years beginning on or after January 1, 2012, a claimant, estate, or trust may claim a nonrefundable tax credit equal to the product of:
(a) to the extent a net capital gain is included in taxable income, the amount of the claimant's, estate's, or trust's net capital gain on capital gain transactions from exchanges made on or after January 1, 2012, for a taxable year, of one form of legal tender for another form of legal tender; and
(b) the percentage listed in Subsection 59-10-104(2).
(3) A claimant, estate, or trust may not carry forward or carry back a tax credit under this section.
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to implement this section.
(1) As used in this section, "recently deployed veteran" means an individual who:
(a) was mobilized to active federal military service in:
(i) an active component of the United States Armed Forces as defined in Section 59-10-1027; or
(ii) a reserve component of the United States Armed Forces as defined in Section 59-10-1027; and
(b) received an honorable or general discharge from active federal military service under Subsection (1)(a) within the two-year period before the date the employment begins.
(2) A claimant, estate, or trust may claim a nonrefundable tax credit as provided in this section against a tax under this chapter if the claimant, estate, or trust employs a recently deployed veteran, on or after January 1, 2012, who:
(a)
(i) is collecting or is eligible to collect unemployment benefits under Title 35A, Chapter 4, Part 4, Benefits and Eligibility; or
(ii) within the last two years, has exhausted the unemployment benefits under Subsection (2)(a)(i); and
(b) works for the claimant, estate, or trust at least 35 hours per week for not less than 45 of the 52 weeks following the recently deployed veteran's start date for the employment.
(3) A tax credit:
(a) earned under this section shall be claimed beginning in the year the requirements of Subsection (2) are met;
(b) for the first taxable year, is equal to $200 for each month of employment not to exceed $2,400 for the taxable year for each recently deployed veteran; and
(c) for the second taxable year, is equal to $400 for each month of employment not to exceed $4,800 for the taxable year for each recently deployed veteran.
(4) A claimant, estate, or trust that claims a tax credit under this section shall retain the following for each recently deployed veteran for which a tax credit is claimed under this section:
(a) the recently deployed veteran's:
(i) name;
(ii) taxpayer identification number;
(iii) last known address;
(iv) start date of the employment; and
(v) documentation establishing that the recently deployed veteran was employed as required under Subsection (2)(b);
(b) documentation provided by the recently deployed veteran's military service unit establishing that the recently deployed veteran is a recently deployed veteran; and
(c) a signed statement from the Department of Workforce Services that the recently deployed veteran meets the requirements of Subsection (2)(a) regarding unemployment benefits.
(5) At the request of the commission, a claimant, estate, or trust shall provide the information described in Subsection (4) to the commission.
(6) A claimant, estate, or trust may carry forward a tax credit under this section for a period that does not exceed the next five taxable years if:
(a) the claimant, estate, or trust is allowed to claim a tax credit under this section for a taxable year; and
(b) the amount of the tax credit exceeds the claimant, estate, or trust's tax liability under this chapter for that taxable year.
(1) As used in this section:
(a) "Eligible employer" means a person who receives a tax credit certificate from the Department of Workforce Services in accordance with Title 35A, Chapter 5, Part 3, Tax Credit for Employment of Persons Who Are Homeless Act.
(b) "Person who is homeless" is as defined in Section 35A-5-302.
(2) Subject to the other provisions of this section, an eligible employer that is a claimant, estate, or trust may claim a nonrefundable tax credit as provided in this section against a tax under this chapter.
(3) The tax credit under this section is the amount of tax credit listed on a tax credit certificate that the Department of Workforce Services issues to an employer for a taxable year under Title 35A, Chapter 5, Part 3, Tax Credit for Employment of Persons Who Are Homeless Act.
(4) An eligible employer may carry forward a tax credit under this section for a period that does not exceed the next five taxable years if:
(a) the eligible employer is allowed to claim a tax credit under this section; and
(b) the amount of the tax credit exceeds the eligible employer's tax liability under this chapter for that taxable year.
(5) An eligible employer shall retain a tax credit certificate the eligible employer receives from the Department of Workforce Services for the same time period a person is required to keep books and records under Section 59-1-1406.
(1) As used in this section:
(a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air Conservation Act.
(b) "Director" means the director of the Division of Air Quality appointed under Section 19-2-107.
(c) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to vehicle classifications established by the Federal Highway Administration.
(d) "Natural gas" includes compressed natural gas and liquified natural gas.
(e) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
(i) has never been titled or registered and has been driven less than 7,500 miles; and
(ii) is fueled by natural gas, has a 100% electric drivetrain, or has a hydrogen-electric drivetrain.
(f) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
(g) "Qualified taxpayer" means a claimant, estate, or trust that:
(i) purchases a qualified heavy duty vehicle; and
(ii) receives a tax credit certificate from the director.
(h) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and owned by a single claimant, estate, or trust.
(i) "Tax credit certificate" means a certificate issued by the director certifying that a claimant, estate, or trust is entitled to a tax credit as provided in this section and stating the amount of the tax credit.
(2) A qualified taxpayer may claim a nonrefundable tax credit against tax otherwise due under this chapter:
(a) in an amount equal to:
(i) $15,000, if the qualified purchase occurs during calendar year 2021;
(ii) $13,500, if the qualified purchase occurs during calendar year 2022;
(iii) $12,000, if the qualified purchase occurs during calendar year 2023;
(iv) $10,500, if the qualified purchase occurs during calendar year 2024;
(v) $9,000, if the qualified purchase occurs during calendar year 2025;
(vi) $7,500, if the qualified purchase occurs during calendar year 2026;
(vii) $6,000, if the qualified purchase occurs during calendar year 2027;
(viii) $4,500, if the qualified purchase occurs during calendar year 2028;
(ix) $3,000, if the qualified purchase occurs during calendar year 2029; and
(x) $1,500, if the qualified purchase occurs during calendar year 2030; and
(b) if the qualified taxpayer certifies under oath that over 50% of the miles that the heavy duty vehicle that is the subject of the qualified purchase will travel annually will be within the state.
(3)
(a) Except as provided in Subsection (3)(b), a claimant, estate, or trust may not submit an application for, and the director may not issue to the claimant, estate, or trust, a tax credit certificate under this section in any taxable year for a qualified purchase if the director has already issued tax credit certificates to the claimant, estate, or trust for 10 qualified purchases in the same taxable year.
(b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of tax credits under Subsection (5) has not been claimed, a claimant, estate, or trust may submit an application for, and the director may issue to the claimant, estate, or trust, one or more tax credit certificates for up to eight additional qualified purchases, even if the director has already issued to that claimant, estate, or trust tax credit certificates for the maximum number of qualified purchases allowed under Subsection (3)(a).
(4)
(a) Subject to Subsection (4)(b), the director shall reserve 25% of all tax credits available under this section for qualified taxpayers with a small fleet.
(b) Subsection (4)(a) does not prevent a claimant, estate, or trust from submitting an application for, or the director from issuing, a tax credit certificate if, before October 1, qualified taxpayers with a small fleet have not reserved under Subsection (5)(b) tax credits for the full amount reserved under Subsection (4)(a).
(5)
(a) The aggregate annual total amount of tax credits represented by tax credit certificates that the director issues under this section and Section 59-7-618.1 may not exceed $500,000.
(b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to establish a process under which a claimant, estate, or trust may reserve a potential tax credit under this section for a limited time to allow the claimant, estate, or trust to make a qualified purchase with the assurance that the aggregate limit under Subsection (5)(a) will not be met before the claimant, estate, or trust is able to submit an application for a tax credit certificate.
(6)
(a)
(i) A claimant, estate, or trust wishing to claim a tax credit under this section shall, using forms the board requires by rule:
(A) submit to the director an application for a tax credit;
(B) provide the director proof of a qualified purchase; and
(C) submit to the director the certification under oath required under Subsection (2)(b).
(ii) Upon receiving the application, proof, and certification required under Subsection (6)(a)(i), the director shall provide the claimant, estate, or trust a written statement from the director acknowledging receipt of the proof.
(b) If the director determines that a claimant, estate, or trust qualifies for a tax credit under this section, the director shall:
(i) determine the amount of tax credit the claimant, estate, or trust is allowed under this section; and
(ii) provide the claimant, estate, or trust with a written tax credit certificate:
(A) stating that the claimant, estate, or trust has qualified for a tax credit; and
(B) showing the amount of tax credit for which the claimant, estate, or trust has qualified under this section.
(c) A qualified taxpayer shall retain the tax credit certificate.
(d) The director shall at least annually submit to the commission a list of all qualified taxpayers to which the director has issued a tax credit certificate and the amount of each tax credit represented by the tax credit certificates.
(7) The tax credit under this section is allowed only:
(a) against a tax owed under this chapter in the taxable year by the qualified taxpayer;
(b) for the taxable year in which the qualified purchase occurs; and
(c) once per vehicle.
(8) A qualified taxpayer may not assign a tax credit or a tax credit certificate under this section to another person.
(9) If the qualified taxpayer receives a tax credit certificate under this section that allows a tax credit in an amount that exceeds the qualified taxpayer's tax liability under this chapter for a taxable year, the qualified taxpayer may carry forward the amount of the tax credit that exceeds the tax liability for a period that does not exceed the next five taxable years.
(1) As used in this section:
(a) "High cost infrastructure project" means the same as that term is defined in Section 79-6-602.
(b) "Infrastructure cost-burdened entity" means the same as that term is defined in Section 79-6-602.
(c) "Infrastructure-related revenue" means the same as that term is defined in Section 79-6-602.
(d) "Office" means the Office of Energy Development created in Section 79-6-401.
(2)
(a) Subject to the other provisions of this section, a claimant, estate, or trust that is an infrastructure cost-burdened entity may claim a nonrefundable tax credit for development of a high cost infrastructure project as provided in this section.
(b) A claimant, estate, or trust that is an infrastructure cost-burdened entity may not claim a tax credit under this section and under Section 59-5-305 using the same tax credit certificate.
(3) The tax credit under this section is the amount listed as the tax credit amount on a tax credit certificate that the office issues under Title 79, Chapter 6, Part 6, High Cost Infrastructure Development Tax Credit Act, to the infrastructure cost-burdened entity for the taxable year.
(4) An infrastructure cost-burdened entity may carry forward a tax credit under this section for a period that does not exceed the next seven taxable years if:
(a) the infrastructure cost-burdened entity is allowed to claim a tax credit under this section for a taxable year; and
(b) the amount of the tax credit exceeds the infrastructure cost-burdened entity's tax liability under this chapter for that taxable year.
(5)
(a)
(i) To assist the Revenue and Taxation Interim Committee with the review required by Section 59-10-137, the office shall provide the following information, if available to the office, to the Office of the Legislative Fiscal Analyst:
(A) the amount of tax credit that the office grants to each infrastructure cost-burdened entity for each taxable year;
(B) the infrastructure-related revenue generated by each high cost infrastructure project;
(C) the information contained in the office's latest report under Section 79-6-605; and
(D) any other information that the Office of the Legislative Fiscal Analyst requests.
(ii) In providing the information described in Subsection (5)(a)(i), the office shall redact information that identifies a recipient of a tax credit under this section.
(iii) If, notwithstanding the redactions made under Subsection (5)(a)(ii), reporting the information described in Subsection (5)(a)(i) might disclose the identity of a recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to provide the information described in Subsection (5)(a)(i) in the aggregate for all infrastructure cost-burdened entities that receive the tax credit under this section.
(b) The Office of the Legislative Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a summary and analysis of the information provided to the Office of the Legislative Fiscal Analyst by the office under Subsection (5)(a).
(1) As used in this section:
(a) "Account" means an account in a qualified ABLE program where the designated beneficiary of the account is a resident of this state.
(b) "Contributor" means a claimant, estate, or trust that:
(i) makes a contribution to an account; and
(ii) receives a statement from the qualified ABLE program itemizing the contribution.
(c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec. 529A.
(d) "Qualified ABLE program" means the same as that term is defined in Section 35A-12-102.
(2) A contributor to an account may claim a nonrefundable tax credit as provided in this section.
(3) Subject to the other provisions of this section, the tax credit is equal to the product of:
(a) the percentage listed in Subsection 59-10-104(2); and
(b) the total amount of contributions:
(i) the contributor makes for the taxable year; and
(ii) for which the contributor receives a statement from the qualified ABLE program itemizing the contributions.
(4) A contributor may not claim a tax credit under this section:
(a) for an amount of excess contribution to an account that is returned to the contributor; or
(b) with respect to an amount the contributor deducts on a federal income tax return.
(5) A tax credit under this section may not be carried forward or carried back.
(1) As used in this section:
(a) "Dependent child" means the same as that term is defined in 10 U.S.C. Sec. 1447.
(b) "Reserve components" means the same as that term is described in 10 U.S.C. Sec. 10101.
(c) "Surviving spouse" means the same as that term is defined in 10 U.S.C. Sec. 1447.
(d) "Survivor benefits" means the amount paid by the federal government in accordance with 10 U.S.C. Secs. 1447 through 1455.
(2) A surviving spouse or dependent child may claim a nonrefundable tax credit for survivor benefits if the benefits are paid due to:
(a) the death of a member of the armed forces or reserve components while on active duty; or
(b) the death of a member of the reserve components that results from a service-connected cause while performing inactive duty training.
(3) The tax credit described in Subsection (2) is equal to the product of:
(a) the amount of survivor benefits that the surviving spouse or dependent child received during the taxable year; and
(b) the percentage listed in Subsection 59-10-104(2).
(4) The tax credit described in Subsection (2):
(a) may not be carried forward or carried back; and
(b) applies to a taxable year beginning on or after January 1, 2017.
(1) As used in this section:
(a) "Business entity" means a claimant, estate, or trust that meets the definition of "business entity" as that term is defined in Section 63N-2-202.
(b) "Office" means the Governor's Office of Economic Development created in Section 63N-1a-301.
(2) Subject to the provisions of this section, for a taxable year beginning before January 1, 2025, a business entity may claim a nonrefundable enterprise zone tax credit as described in Section 63N-2-213.
(3) The enterprise zone tax credit under this section is the amount listed as the tax credit amount on the tax credit certificate that the office issues to the business entity for the taxable year.
(4) A business entity may carry forward a tax credit under this section for a period that does not exceed the next three taxable years, if the amount of the tax credit exceeds the business entity's tax liability under this chapter for that taxable year.
(5)
(a)
(i) To assist the Revenue and Taxation Interim Committee with the review required by Section 59-10-137, the office shall provide by electronic means the following information, if available to the office, for each calendar year to the Office of the Legislative Fiscal Analyst:
(A) the amount of tax credits provided in each development zone;
(B) the number of new full-time employee positions reported to obtain tax credits in each development zone;
(C) the amount of tax credits awarded for rehabilitating a building in each development zone;
(D) the amount of tax credits awarded for investing in a plant, equipment, or other depreciable property in each development zone;
(E) the information related to the tax credit contained in the office's latest report under Section 63N-1a-306; and
(F) other information that the Office of the Legislative Fiscal Analyst requests.
(ii) In providing the information described in Subsection (5)(a)(i), the office shall redact information that identifies a recipient of a tax credit under this section.
(iii) If, notwithstanding the redactions made under Subsection (5)(a)(ii), reporting the information described in Subsection (5)(a)(i) might disclose the identity of a recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to provide the information described in Subsection (5)(a)(i) in the aggregate for all development zones that receive the tax credit under this section.
(b) The Office of the Legislative Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a summary and analysis of the information provided to the Office of the Legislative Fiscal Analyst by the office under Subsection (5)(a).
(1) As used in this section, "office" means the Governor's Office of Economic Development created in Section 63N-1a-301.
(2) Subject to the other provisions of this section, a taxpayer may claim a nonrefundable tax credit for rural job creation as provided in this section.
(3) The tax credit under this section is the amount listed as the tax credit amount on a tax credit certificate that the office issues under Title 63N, Chapter 4, Part 3, Utah Rural Jobs Act, to the taxpayer for the taxable year.
(4) If the amount of a tax credit under this section exceeds the taxpayer's tax liability under this chapter for the taxable year in which the taxpayer claims the tax credit, the taxpayer may carry forward the tax credit for:
(a) the next seven taxable years, if the credit-eligible contribution as defined in Section 63N-4-302 is made before November 1, 2022; or
(b) the next four taxable years, if the credit-eligible contribution as defined in Section 63N-4-302 is made on or after November 1, 2022.
(1) Except as provided in Subsection (3), a claimant, estate, or trust that makes a donation to the Carson Smith Opportunity Scholarship Program established in Section 53E-7-402 may claim a nonrefundable tax credit equal to 100% of the amount stated on a tax credit certificate issued in accordance with Section 53E-7-407.
(2) The tax credit described in Subsection (1) may be claimed for the taxable year indicated on the tax credit certificate issued in accordance with Section 53E-7-407.
(3) A claimant, estate, or trust may not claim the tax credit described in Subsection (1) for a donation to the extent the claimant, estate, or trust claims the donation as a deduction or credit against the claimant's, estate's, or trust's federal income taxes for any taxable year.
(1) As used in this section:
(a) "Head of household filing status" means the same as that term is defined in Section 59-10-1018.
(b) "Joint filing status" means the same as that term is defined in Section 59-10-1018.
(c) "Married filing separately status" means a married individual who:
(i) does not file a single federal individual income tax return jointly with that married individual's spouse for the taxable year; and
(ii) files a single federal individual income tax return for the taxable year.
(d) "Modified adjusted gross income" means the sum of the following for a claimant or, if the claimant's return under this chapter is allowed a joint filing status, the claimant and the claimant's spouse:
(i) adjusted gross income for the taxable year for which a tax credit is claimed under this section;
(ii) any interest income that is not included in adjusted gross income for the taxable year described in Subsection (1)(d)(i); and
(iii) any addition to adjusted gross income required by Section 59-10-114 for the taxable year described in Subsection (1)(d)(i).
(e) "Single filing status" means a single individual who files a single federal individual income tax return for the taxable year.
(f) "Social security benefit" means an amount received by a claimant as a monthly benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.
(2) Except as provided in Section 59-10-1002.2 and Subsections (3) and (4), each claimant on a return that receives a social security benefit may claim a nonrefundable tax credit against taxes otherwise due under this part equal to the product of:
(a) the percentage listed in Subsection 59-10-104(2); and
(b) the claimant's social security benefit that is included in the claimant's state taxable income for the taxable year.
(3) A claimant may not:
(a) carry forward or carry back the amount of a tax credit under this section that exceeds the claimant's tax liability for the taxable year; or
(b) claim a tax credit under this section for a taxable year if a tax credit under Section 59-10-1019 is claimed on the claimant's return for the same taxable year.
(4) The tax credit allowed by Subsection (2) claimed on a return filed under this part shall be reduced by $.025 for each dollar by which modified adjusted gross income for purposes of the return exceeds:
(a) for a return filed under this chapter that is allowed a married filing separately status, $45,000;
(b) for a return filed under this chapter that is allowed a single filing status, $54,000;
(c) for a return filed under this chapter that is allowed a head of household filing status, $90,000; or
(d) for a return filed under this chapter that is allowed a joint filing status, $90,000.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules governing the calculation and method for claiming the tax credit described in this section.
(1) As used in this section:
(a)
(i) "Military retirement pay" means retirement pay, including survivor benefits, that relates to service in the armed forces or the reserve components, as described in 10 U.S.C. Sec. 10101.
(ii) "Military retirement pay" does not include:
(A) Social Security income;
(B) 401(k) or IRA distributions; or
(C) income from other sources.
(b) "Survivor benefits" means the retired pay portion of the benefits described in 10 U.S.C. Secs. 1447 through 1455.
(2) Except as provided in Section 59-10-1002.2, a claimant who receives military retirement pay may claim a nonrefundable tax credit against taxes equal to the product of:
(a) the percentage listed in Subsection 59-10-104(2); and
(b) the amount of military retirement pay that is included in adjusted gross income on the claimant's federal income tax return for the taxable year.
(3) A claimant may not:
(a) carry forward or carry back the amount of a tax credit that exceeds the claimant's tax liability for the taxable year; or
(b) claim a tax credit under this section for a taxable year if a tax credit under Section 59-10-1019 is claimed on the claimant's return for the same taxable year.
(1) As used in this section:
(a) "Federal earned income tax credit" means the federal earned income tax credit described in Section 32, Internal Revenue Code.
(b) "Qualifying claimant" means a resident or nonresident individual who:
(i) qualifies for and claims the federal earned income tax credit for the current taxable year; and
(ii) earns income in Utah that is reported on a W-2 form.
(2) Subject to Section 59-10-1002.2, a qualifying claimant may claim a nonrefundable earned income tax credit equal to the lesser of:
(a) 20% of the amount of the federal earned income tax credit that the qualifying claimant was entitled to claim on a federal income tax return for the current taxable year; and
(b) the total Utah wages reported on the qualifying claimant's W-2 form for the current taxable year.
(3) A qualifying claimant may not carry forward or carry back the amount of the earned income tax credit that exceeds the qualifying claimant's tax liability.
(1) As used in this section, "taxed pass-through entity taxpayer" means a resident or nonresident individual who:
(a) has income attributed to the individual by a pass-through entity;
(b) receives the income described in Subsection (1)(a) after the pass-through entity pays the tax described in Subsection 59-10-1403.2(2); and
(c) adds the amount of tax paid on the income described in Subsection (1)(a) to adjusted gross income in accordance with Subsection 59-10-114(1)(i).
(2)
(a) A taxed pass-through entity taxpayer may claim a nonrefundable tax credit for the taxes imposed under Subsection 59-10-1403.2(2).
(b) The tax credit is equal to the amount of the tax paid under Subsection 59-10-1403.2(2) by the pass-through entity on the income attributed to the taxed pass-through entity taxpayer.
(3)
(a) A taxed pass-through entity taxpayer may carry forward the amount of the tax credit that exceeds the taxed pass-through entity taxpayer's tax liability for a period that does not exceed the next ten taxable years.
(b) A taxed pass-through entity taxpayer may not carry back the amount of the tax credit that exceeds the taxed pass-through entity taxpayer's tax liability for the taxable year.
(1) As used in this section:
(a) "Adoption expense" means a reasonable and necessary adoption fee, court cost, attorney fee, or other expense that is:
(i) directly related to, and for the primary purpose of, adoption of a qualifying child through a domestic adoption;
(ii) not incurred in violation of federal or state law or in carrying out any surrogate parenting arrangement; and
(iii) not paid or reimbursed by any employer or state assistance program.
(b) "Domestic adoption" means an adoption of a child who is a United States citizen or a resident of the United States or its possessions before the adoption effort begins.
(c)
(i) "Qualifying child" means an individual who is under 18 years old.
(ii) "Qualifying child" does not include an individual who is a child of the claimant's spouse.
(d) "Qualifying claimant" means a claimant:
(i) whose adjusted gross income on a federal tax return is:
(A) for a claimant who files the federal tax return jointly with the claimant's spouse, $55,000 or more but less than $110,000; or
(B) for a claimant who files the federal tax return other than jointly, $27,500 or more but less than $55,000;
(ii) who did not, and if the claimant is married, whose spouse did not, receive state or federal assistance during the taxable year in which the adoption is finalized; and
(iii) who applies for and receives a certification described in Section 35A-1-111 from the Department of Workforce Services.
(e)
(i) "State or federal assistance" means public funds that are:
(A) expended for the benefit of an individual in need of financial, medical, food, housing, or related assistance;
(B) means tested; and
(C) provided by a state or the federal government.
(ii) "State or federal assistance" includes:
(A) the Medicaid program, as defined in Section 26B-3-101;
(B) the Employment Support Act described in Title 35A, Chapter 3, Employment Support Act;
(C) the Children's Health Insurance Program created in Title 26B, Chapter 3, Part 9, Utah Children's Health Insurance Program;
(D) the Supplemental Nutrition Assistance Program established in 7 U.S.C. Chapter 51, Supplemental Nutrition Assistance Program;
(E) the Women, Infants, and Children Program established in 42 U.S.C. Sec. 1786;
(F) the federal Social Security Act; and
(G) housing assistance.
(iii) "State or federal assistance" does not include an income tax credit, subtraction, or deduction.
(2) Subject to Section 59-10-1002.2, a qualifying claimant may claim, in the taxable year in which the adoption is finalized, a nonrefundable tax credit equal to the lesser of:
(a) $3,500; or
(b) the amount of the qualifying claimant's adoption expenses.
(3) A qualifying claimant may carry forward, to the next three taxable years, the amount of any tax credit that exceeds the qualifying claimant's tax liability for the taxable year.
(4) A qualifying claimant may not claim a credit under this section to the extent that the qualifying claimant claims a federal tax credit under 26 U.S.C. Sec. 23 for the same adoption expense.
(5) A qualifying claimant who is married may claim a tax credit under this section only if the qualifying claimant and the qualifying claimant's spouse file a joint federal income tax return.
(1) As used in this section:
(a) "Joint filing status" means the same as that term is defined in Section 59-10-1018.
(b) "Head of household filing status" means the same as that term is defined in Section 59-10-1018.
(c) "Married filing separately status" means a married individual who:
(i) does not file a single federal individual income tax return jointly with that married individual's spouse for the taxable year; and
(ii) files a single federal individual income tax return for the taxable year.
(d) "Modified adjusted gross income" means the sum of the following for a claimant or, if the claimant's federal individual income tax return is allowed a joint filing status, the claimant and the claimant's spouse:
(i) adjusted gross income for the taxable year for which a tax credit is claimed under this section;
(ii) any interest income that is not included in adjusted gross income for the taxable year described in Subsection (1)(d)(i); and
(iii) any addition to adjusted gross income required by Section 59-10-114 for the taxable year described in Subsection (1)(d)(i).
(e) "Qualifying child" means an individual:
(i) with respect to whom the claimant is allowed to claim a tax credit under Section 24, Internal Revenue Code, on the claimant's federal individual income tax return for the taxable year; and
(ii) who is under six years old on the last day of the claimant's taxable year.
(f) "Single filing status" means a single individual who files a single federal individual income tax return for the taxable year.
(2) Subject to Section 59-10-1002.2, a claimant may claim a nonrefundable tax credit of $1,000 for each qualifying child.
(3) A claimant may not carry forward or carry back the amount of the tax credit that exceeds the claimant's tax liability.
(4) The tax credit allowed by Subsection (2) claimed on a return filed under this chapter shall be reduced by $.10 for each dollar by which modified adjusted gross income for purposes of the return exceeds:
(a) for a federal individual income tax return that is allowed a married filing separately status, $30,500;
(b) for a federal individual income tax return that is allowed a single filing status or head of household filing status, $49,000; and
(c) for a federal individual income tax return that is allowed a joint filing status, $61,000.
(1) As used in this section:
(a) "Eligible small business" means the same as that term is defined in Section 45F, Internal Revenue Code.
(b) "Qualified child care expenditure" means the same as that term is defined in Section 59-7-627.
(c) "Qualified child care facility" means the same as that term is defined in Section 59-7-627.
(d) "Qualified construction expenditure" means the same as that term is defined in Section 59-7-627.
(e) "Qualifying claimant" means a claimant, estate, or trust that:
(i) is an employer;
(ii) qualifies for and claims the federal employer-provided child care tax credit described in Section 45F, Internal Revenue Code, for the current taxable year; and
(iii) does not obtain payment from an employee or deduct from an employee's salary or wages for child care services, with respect to any qualified child care facility for which the claimant, estate, or trust claims a tax credit under this section.
(f) "Recapture event" means the same as that term is defined in Section 59-7-627.
(g) "Third party provider" means the same as that term is defined in Section 59-7-627.
(2)
(a) A qualifying claimant may claim a nonrefundable tax credit equal to 20% of the qualified construction expenditures the qualifying claimant incurred during the taxable year.
(b) A qualifying claimant may carry forward, to the next five taxable years, the amount of the qualifying claimant's tax credit described in this Subsection (2) that exceeds the qualifying claimant's income tax liability for the taxable year.
(3)
(a) A qualifying claimant may claim a nonrefundable tax credit equal to:
(i) 30% of the qualified child care expenditures the qualifying claimant incurred during the taxable year, for a qualifying claimant that qualifies as an eligible small business for the taxable year; or
(ii) 10% of the qualified child care expenditures the qualifying claimant incurred during the taxable year, for a qualifying claimant that does not qualify as an eligible small business for the taxable year.
(b) A qualifying claimant may not carry forward or carry back the tax credit described in this Subsection (3) that exceeds the qualifying claimant's income tax liability for the taxable year.
(4)
(a)
(i) If a recapture event happens within two taxable years after the first taxable year in which the qualifying claimant claims a tax credit under this section, a qualifying claimant shall repay 100% of the tax credit a qualifying claimant receives under this section for any taxable year.
(ii) If a recapture event happens more than two taxable years but fewer than three taxable years after the first taxable year in which the qualifying claimant claims a tax credit under this section, a qualifying claimant shall repay 75% of the tax credit a qualifying claimant receives under this section for any taxable year.
(iii) If a recapture event happens more than three taxable years but fewer than four taxable years after the first taxable year in which the qualifying claimant claims a tax credit under this section, a qualifying claimant shall repay 50% of the tax credit a qualifying claimant receives under this section for any taxable year.
(iv) If a recapture event happens more than four taxable years but fewer than five taxable years after the first taxable year in which the qualifying claimant claims a tax credit under this section, a qualifying claimant shall repay 25% of the tax credit a qualifying claimant receives under this section for any taxable year.
(b) A qualifying claimant shall make a payment for a recapture event for the taxable year in which the recapture event occurs.
As used in this part:
(1)
(a) Except as provided in Subsection (1)(b) or Subsection 59-10-1103(1)(a), "claimant" means a resident or nonresident person.
(b) "Claimant" does not include an estate or trust.
(2) Except as provided in Subsection 59-10-1103(1)(a), "estate" means a nonresident estate or a resident estate.
(3) "Refundable tax credit" or "tax credit" means a tax credit that a claimant, estate, or trust may claim:
(a) as provided by statute; and
(b) regardless of whether the claimant, estate, or trust has a tax liability under this chapter for a taxable year.
(4) Except as provided in Subsection 59-10-1103(1)(a), "trust" means a nonresident trust or a resident trust.
A nonresident individual or a part-year resident individual who claims a tax credit in accordance with Section 59-10-1114 may claim only an apportioned amount of the tax credit equal to the product of:
(1) the state income tax percentage for the nonresident individual or the state income tax percentage for the part-year resident individual; and
(2) the amount of the tax credit that the nonresident individual or the part-year resident individual would have been allowed to claim but for the apportionment requirement of this section.
(1) As used in this section, "tax return" means a tax return filed in accordance with this chapter.
(2) Beginning two taxable years after the requirements of Subsection (3) are met:
(a) the commission shall remove a tax credit allowed under this part from each tax return on which the tax credit appears; and
(b) a claimant, estate, or trust filing a tax return may not claim the tax credit.
(3) The commission shall remove a tax credit allowed under this part from a tax return and a claimant, estate, or trust filing a tax return may not claim the tax credit as provided in Subsection (2) if:
(a) the total amount of the tax credit claimed by all claimants, estates, or trusts filing tax returns is less than $10,000 per year for three consecutive taxable years beginning on or after January 1, 2025; and
(b) fewer than 10 claimants, estates, and trusts per year for the three consecutive taxable years described in Subsection (3)(a), file a tax return claiming the tax credit.
(4) On or before the November interim meeting of the year after the taxable year in which the requirements of Subsection (3) are met, the commission shall report to the Revenue and Taxation Interim Committee by electronic means that in accordance with this section:
(a) the commission is required to remove a tax credit from each tax return on which the tax credit appears; and
(b) a claimant, estate, or trust filing a tax return may not claim the tax credit.
(5)
(a) Within a 30-day period after the day on which the commission makes the report required by Subsection (4), the commission shall publish a list in accordance with Subsection (5)(b) stating each tax credit that the commission will remove from a return on which the tax credit appears.
(b) The list shall:
(i) be published on:
(A) the commission's website; and
(B) the public legal notice website in accordance with Section 45-1-101;
(ii) include a statement that:
(A) the commission is required to remove the tax credit from each return on which the tax credit appears; and
(B) the tax credit may not be claimed on a return;
(iii) state the taxable year for which the removal described in Subsection (5)(a) takes effect; and
(iv) remain available for viewing and searching until the commission publishes a new list in accordance with this Subsection (5).
(1) As used in this section:
(a) "Pass-through entity" means the same as that term is defined in Section 59-10-1402.
(b) "Pass-through entity taxpayer" means the same as that term is defined in Section 59-10-1402.
(2) A pass-through entity taxpayer may claim a refundable tax credit against the tax otherwise due under this chapter if that pass-through entity taxpayer is a:
(a) claimant;
(b) estate; or
(c) trust.
(3) The tax credit described in Subsection (2) is equal to the amount paid or withheld by the pass-through entity on behalf of the pass-through entity taxpayer described in Subsection (2) in accordance with Section 59-10-1403.2, other than a tax described in Subsection 59-10-1403.2(2).
(4) A pass-through entity taxpayer may not claim a tax credit under this section for an amount for which the pass-through entity taxpayer claims a tax credit under Section 59-7-614.4.
(1) For a taxable year beginning on or after January 1, 2004, a claimant, estate, or trust may claim a refundable tax credit:
(a) as provided in this section;
(b) against taxes otherwise due under this chapter; and
(c) in an amount equal to the amount of tax the claimant, estate, or trust pays:
(i) on a purchase of a hand tool:
(A) if the purchase is made on or after July 1, 2004;
(B) if the hand tool is used or consumed primarily and directly in a farming operation in the state; and
(C) if the unit purchase price of the hand tool is more than $250; and
(ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection (1)(c)(i).
(2) A claimant, estate, or trust:
(a) shall retain the following to establish the amount of tax the claimant, estate, or trust paid under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection (1)(c)(i):
(i) a receipt;
(ii) an invoice; or
(iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
(b) may not carry forward or carry back a tax credit under this section.
(3)
(a) In accordance with any rules prescribed by the commission under Subsection (3)(b):
(i) the commission shall make a refund to a claimant, estate, or trust that claims a tax credit under this section if the amount of the tax credit exceeds the claimant's, estate's, or trust's tax liability under this chapter; and
(ii) the Division of Finance shall transfer at least annually from the General Fund into the Income Tax Fund an amount equal to the aggregate amount of all tax credits claimed under this section.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing procedures for making:
(i) a refund to a claimant, estate, or trust as required by Subsection (3)(a)(i); or
(ii) transfers from the General Fund into the Income Tax Fund as required by Subsection (3)(a)(ii).
(1) As used in this section:
(a) "Active solar system" means the same as that term is defined in Section 59-10-1014.
(b) "Adequate energy storage" means the same as that term is defined in Section 59-7-614.
(c) "Biomass system" means the same as that term is defined in Section 59-10-1014.
(d) "Commercial energy system" means the same as that term is defined in Section 59-7-614.
(e) "Commercial enterprise" means the same as that term is defined in Section 59-7-614.
(f) "Commercial unit" means the same as that term is defined in Section 59-7-614.
(g) "Direct use geothermal system" means the same as that term is defined in Section 59-10-1014.
(h) "Dispatchable" means the same as that term is defined in Section 79-6-102.
(i) "Geothermal electricity" means the same as that term is defined in Section 59-10-1014.
(j) "Geothermal energy" means the same as that term is defined in Section 59-10-1014.
(k) "Geothermal heat pump system" means the same as that term is defined in Section 59-10-1014.
(l) "Hydroenergy system" means the same as that term is defined in Section 59-10-1014.
(m) "Hydrogen production system" means the same as that term is defined in Section 59-7-614.
(n) "Interconnection queue" means the same as that term is defined in Section 59-7-614.
(o) "Office" means the Office of Energy Development created in Section 79-6-401.
(p) "Passive solar system" means the same as that term is defined in Section 59-10-1014.
(q) "Peak daily generation" means the same as that term is defined in Section 59-7-614.
(r) "Principal recovery portion" means the same as that term is defined in Section 59-10-1014.
(s) "Reliable" means the same as that term is defined in Section 79-6-102.
(t) "Wind system" means the same as that term is defined in Section 59-10-1014.
(2) A claimant, estate, or trust may claim an energy system tax credit as provided in this section against a tax due under this chapter for an energy system that is completed and placed in service before January 1, 2028.
(3)
(a) Subject to the other provisions of this Subsection (3), a claimant, estate, or trust may claim a refundable tax credit under this Subsection (3) with respect to a commercial energy system if:
(i) the commercial energy system does not use:
(A) wind, geothermal electricity, solar, or biomass equipment capable of producing a total of 660 or more kilowatts of electricity; or
(B) solar equipment capable of producing 2,000 or more kilowatts of electricity;
(ii) the claimant, estate, or trust purchases or participates in the financing of the commercial energy system;
(iii)
(A) the commercial energy system supplies all or part of the energy required by commercial units owned or used by the claimant, estate, or trust; or
(B) the claimant, estate, or trust sells all or part of the energy produced by the commercial energy system as a commercial enterprise;
(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under Subsection (6) for hydrogen production using electricity for which the claimant, estate, or trust claims a tax credit under this Subsection (3); and
(v) the claimant, estate, or trust obtains a written certification from the office in accordance with Subsection (7).
(b)
(i) Subject to Subsections (3)(b)(ii) through (iv), the tax credit is equal to 10% of the reasonable costs of the commercial energy system.
(ii) A tax credit under this Subsection (3) may include installation costs.
(iii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection (3) for the taxable year in which the commercial energy system is completed and placed in service.
(iv) The total amount of tax credit a claimant, estate, or trust may claim under this Subsection (3) may not exceed $50,000 per commercial unit.
(c)
(i) Subject to Subsections (3)(c)(ii) and (iii), a claimant, estate, or trust that is a lessee of a commercial energy system installed on a commercial unit may claim a tax credit under this Subsection (3) if the claimant, estate, or trust confirms that the lessor irrevocably elects not to claim the tax credit.
(ii) A claimant, estate, or trust described in Subsection (3)(c)(i) may claim as a tax credit under this Subsection (3) only the principal recovery portion of the lease payments.
(iii) A claimant, estate, or trust described in Subsection (3)(c)(i) may claim a tax credit under this Subsection (3) for a period that does not exceed seven taxable years after the day on which the lease begins, as stated in the lease agreement.
(4)
(a) Subject to the other provisions of this Subsection (4), a claimant, estate, or trust may claim a refundable tax credit under this Subsection (4) with respect to a commercial energy system if:
(i) the commercial energy system uses wind, geothermal electricity, or biomass equipment capable of producing a total of 660 or more kilowatts of electricity;
(ii)
(A) the commercial energy system supplies all or part of the energy required by commercial units owned or used by the claimant, estate, or trust; or
(B) the claimant, estate, or trust sells all or part of the energy produced by the commercial energy system as a commercial enterprise;
(iii) for a commercial energy system using wind, the system includes adequate energy storage;
(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under Subsection (6) for hydrogen production using electricity for which the claimant, estate, or trust claims a tax credit under this Subsection (4); and
(v) the claimant, estate, or trust obtains a written certification from the office in accordance with Subsection (7).
(b)
(i) Subject to Subsection (4)(b)(ii), a tax credit under this Subsection (4) is equal to the product of:
(A) 0.35 cents; and
(B) the kilowatt hours of electricity produced and used or sold during the taxable year.
(ii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection (4) for production occurring during a period of 48 months beginning with the month in which the commercial energy system is placed in commercial service.
(c) For purposes of calculating the tax credit under this Subsection (4), electricity that is stored and later sold may only be counted at the time the electricity is sold from storage.
(d) A claimant, estate, or trust that is a lessee of a commercial energy system installed on a commercial unit may claim a tax credit under this Subsection (4) if the claimant, estate, or trust confirms that the lessor irrevocably elects not to claim the tax credit.
(e) Notwithstanding Subsection (4)(a)(iii), a commercial energy system is exempt from the energy storage requirement if the system had a position in an interconnection queue or a signed agreement with a transmission provider before January 1, 2025.
(5)
(a) Subject to the other provisions of this Subsection (5), a claimant, estate, or trust may claim a refundable tax credit as provided in this Subsection (5) if:
(i) the claimant, estate, or trust owns a commercial energy system that:
(A) uses solar equipment capable of producing a total of 660 or more kilowatts of electricity; and
(B) includes adequate energy storage;
(ii)
(A) the commercial energy system supplies all or part of the energy required by commercial units owned or used by the claimant, estate, or trust; or
(B) the claimant, estate, or trust sells all or part of the energy produced by the commercial energy system as a commercial enterprise;
(iii) the claimant, estate, or trust does not claim a tax credit under Subsection (3);
(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under Subsection (6) for hydrogen production using electricity for which a taxpayer claims a tax credit under this Subsection (5); and
(v) the claimant, estate, or trust obtains a written certification from the office in accordance with Subsection (7).
(b)
(i) Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal to the product of:
(A) 0.35 cents; and
(B) the kilowatt hours of electricity produced and used or sold during the taxable year.
(ii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection (5) for production occurring during a period of 48 months beginning with the month in which the commercial energy system is placed in commercial service.
(c) For purposes of calculating the tax credit under this Subsection (5), electricity that is stored and later sold may only be counted at the time the electricity is sold from storage.
(d) A claimant, estate, or trust that is a lessee of a commercial energy system installed on a commercial unit may claim a tax credit under this Subsection (5) if the claimant, estate, or trust confirms that the lessor irrevocably elects not to claim the tax credit.
(e) Notwithstanding Subsection (5)(a)(i)(B), a commercial energy system is exempt from the energy storage requirement if the system had a position in an interconnection queue or a signed agreement with a transmission provider before January 1, 2025.
(6)
(a) A claimant, estate, or trust may claim a refundable tax credit as provided in this Subsection (6) if:
(i) the claimant, estate, or trust owns a hydrogen production system;
(ii) the hydrogen production system is completed and placed in service on or after January 1, 2022;
(iii) the claimant, estate, or trust sells as a commercial enterprise, or supplies for the claimant's, estate's, or trust's own use in commercial units, the hydrogen produced from the hydrogen production system;
(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under Subsection (3), (4), or (5) for electricity used to meet the requirements of this Subsection (6); and
(v) the claimant, estate, or trust obtains a written certification from the office in accordance with Subsection (7).
(b)
(i) Subject to Subsections (6)(b)(ii) and (iii), a tax credit under this Subsection (6) is equal to the product of:
(A) $0.12; and
(B) the number of kilograms of hydrogen produced during the taxable year.
(ii) A claimant, estate, or trust may not receive a tax credit under this Subsection (6) for more than 5,600 metric tons of hydrogen per taxable year.
(iii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection (6) for production occurring during a period of 48 months beginning with the month in which the hydrogen production system is placed in commercial service.
(7)
(a) Before a claimant, estate, or trust may claim a tax credit under this section, the claimant, estate, or trust shall obtain a written certification from the office.
(b) The office shall issue a claimant, estate, or trust a written certification if the office determines that:
(i) the claimant, estate, or trust meets the requirements of this section to receive a tax credit; and
(ii) the commercial energy system or the hydrogen production system with respect to which the claimant, estate, or trust seeks to claim a tax credit:
(A) has been completely installed;
(B) is a viable system for saving or producing energy from clean resources; and
(C) is safe, reliable, efficient, and technically feasible to ensure that the commercial energy system or the hydrogen production system uses the state's clean and nonrenewable resources in an appropriate and economic manner.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office may make rules:
(i) for determining whether a commercial energy system or a hydrogen production system meets the requirements of Subsection (7)(b)(ii); and
(ii) for purposes of a tax credit under Subsection (3), establishing the reasonable costs of a commercial energy system, as an amount per unit of energy production.
(d) A claimant, estate, or trust that obtains a written certification from the office shall retain the certification for the same time period a person is required to keep books and records under Section 59-1-1406.
(e) The office shall submit to the commission an electronic list that includes:
(i) the name and identifying information of each claimant, estate, or trust to which the office issues a written certification; and
(ii) for each claimant, estate, or trust:
(A) the amount of the tax credit listed on the written certification; and
(B) the date the commercial energy system or the hydrogen production system was installed.
(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to address the certification of a tax credit under this section.
(9) A tax credit under this section is in addition to any tax credits provided under the laws or rules and regulations of the United States.
(10) A purchaser of one or more solar units that claims a tax credit under Section 59-10-1024 for the purchase of the one or more solar units may not claim a tax credit under this section for that purchase.
(1) As used in this section:
(a) "Business entity" means a claimant, estate, or trust that meets the definition of "business entity" as defined in Section 63N-2-103.
(b) "Incremental job" means the same as that term is defined in Section 63N-1a-102.
(c) "New state revenue" means the same as that term is defined in Section 63N-1a-102.
(d) "Office" means the Governor's Office of Economic Development created in Section 63N-1a-301.
(2) Subject to the other provisions of this section, a business entity may claim a refundable tax credit for economic development.
(3) The tax credit under this section is the amount listed as the tax credit amount on the tax credit certificate that the office issues to the business entity for the taxable year.
(4)
(a) In accordance with any rules prescribed by the commission under Subsection (4)(b), the commission shall make a refund to a business entity that claims a tax credit under this section if the amount of the tax credit exceeds the business entity's tax liability for a taxable year.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing procedures for making a refund to a business entity as required by Subsection (4)(a).
(5)
(a) To assist the Revenue and Taxation Interim Committee with the review required by Section 59-10-137, the office shall provide the following information, if available to the office, to the Revenue and Taxation Interim Committee by electronic means:
(i) the amount of tax credit the office grants to each taxpayer for each calendar year;
(ii) the criteria the office uses in granting a tax credit;
(iii) the new state revenue generated by each taxpayer for each calendar year;
(iv) estimates for each of the next three calendar years of the following:
(A) the amount of tax credits that the office will grant;
(B) the amount of new state revenue that will be generated; and
(C) the number of new incremental jobs within the state that will be generated;
(v) the information contained in the office's latest report under Section 63N-2-106; and
(vi) any other information that the Revenue and Taxation Interim Committee requests.
(b) In providing the information described in Subsection (5)(a), the office shall redact information that identifies a recipient of a tax credit under this section.
(c) If, notwithstanding the redactions made under Subsection (5)(b), reporting the information described in Subsection (5)(a) might disclose the identity of a recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to provide the information described in Subsection (5)(a) in the aggregate for all taxpayers that receive the tax credit under this section.
(1) As used in this section:
(a) "Motion picture company" means a claimant, estate, or trust that meets the definition of a motion picture company under Section 63N-8-102.
(b) "Office" means the Governor's Office of Economic Development created in Section 63N-1a-301.
(c) "State-approved production" means the same as that term is defined in Section 63N-8-102.
(2) A motion picture company may claim a refundable tax credit for a state-approved production.
(3) The tax credit under this section is the amount listed as the tax credit amount on the tax credit certificate that the office issues to a motion picture company under Section 63N-8-103 for the taxable year.
(4)
(a) In accordance with any rules prescribed by the commission under Subsection (4)(b), the commission shall make a refund to a motion picture company that claims a tax credit under this section if the amount of the tax credit exceeds the motion picture company's tax liability for the taxable year.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing procedures for making a refund to a motion picture company as required by Subsection (4)(a).
(5)
(a)
(i) To assist the Revenue and Taxation Interim Committee with the review required by Section 59-10-137, the office shall provide the following information, if available to the office, to the Office of the Legislative Fiscal Analyst by electronic means:
(A) the amount of tax credit the office grants to each taxpayer for each calendar year;
(B) estimates of the amount of tax credit that the office will grant for each of the next three calendar years;
(C) the criteria the office uses in granting a tax credit;
(D) the dollars left in the state, as defined in Section 63N-8-102, by each motion picture company for each calendar year;
(E) the information contained in the office's latest report under Section 63N-8-105; and
(F) any other information that the Office of the Legislative Fiscal Analyst requests.
(ii) In providing the information described in Subsection (5)(a)(i), the office shall redact information that identifies a recipient of a tax credit under this section.
(iii) If, notwithstanding the redactions made under Subsection (5)(a)(ii), reporting the information described in Subsection (5)(a)(i) might disclose the identity of a recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to provide the information described in Subsection (5)(a)(i) in the aggregate for all taxpayers that receive the tax credit under this section.
(b) The Office of the Legislative Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a summary and analysis of the information provided to the Office of the Legislative Fiscal Analyst by the office under Subsection (5)(a).
(1) As used in this section:
(a) "Psychiatric mental health nurse practitioner" means the same as that term is defined in Section 58-1-111.
(b) "Psychiatrist" means the same as that term is defined in Section 58-1-111.
(c) "Tax credit certificate" means a certificate issued by the Division of Professional Licensing under Section 58-1-111 certifying that the claimant is entitled to a tax credit under this section.
(d) "Volunteer retired psychiatrist" means the same as that term is defined in Section 58-1-111.
(2) A claimant who is a psychiatrist or a psychiatric mental health nurse practitioner and who submits a tax credit certificate issued by the Division of Professional Licensing under Subsection 58-1-111(3), may claim a refundable tax credit:
(a) as provided in this section; and
(b) in the amount of $10,000.
(3) A claimant who is a psychiatrist or a psychiatric mental health nurse practitioner and who submits a tax credit certificate under Subsection 58-1-111(4) may claim a refundable tax credit:
(a) as provided in this section; and
(b) in the amount of $10,000.
(4) A claimant who is a volunteer retired psychiatrist and who submits a tax credit certificate under Subsection 58-1-111(5) may claim a refundable tax credit:
(a) as provided in this section; and
(b) in the amount of $10,000.
(5) A claimant may claim a tax credit under Subsections (2) through (4) for no more than 10 taxable years for each tax credit.
(6)
(a) In accordance with any rules prescribed by the commission under Subsection (6)(b), the commission shall make a refund to a claimant who claims a tax credit under this section if the amount of the tax credit exceeds the claimant's tax liability for the taxable year.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing procedures for making a refund to a claimant as required by Subsection (6)(a).
(1) As used in this section:
(a) "Commercial enterprise" means the same as that term is defined in Section 59-7-626.
(b) "Commercial unit" means the same as that term is defined in Section 59-7-626.
(c) "Hydrogen production system" means the same as that term is defined in Section 59-7-626.
(d) "Office" means the Office of Energy Development created in Section 79-6-401.
(2)
(a) A claimant, estate, or trust may claim a refundable credit under this section if:
(i) the claimant, estate, or trust owns a hydrogen production system;
(ii) the hydrogen production system is completed and placed in service on or after January 1, 2022;
(iii) the claimant, estate, or trust sells as a commercial enterprise, or supplies for the claimant's, estate's, or trust's own use in commercial units, the hydrogen produced from the hydrogen production system;
(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under Section 59-10-1106 for electricity used to meet the requirements of this section; and
(v) the taxpayer obtains a written certification from the office in accordance with Subsection (3).
(b)
(i) Subject to Subsections (2)(b)(ii) and (iii), a tax credit under this section is equal to the product of:
(A) $0.12; and
(B) the number of kilograms of hydrogen produced during the taxable year.
(ii) A claimant, estate, or trust may not receive a tax credit under this section for more than 5,600 metric tons of hydrogen per taxable year.
(iii) A claimant, estate, or trust is eligible to claim a tax credit under this section for production occurring during a period of 48 months beginning with the month in which the hydrogen production system is placed in commercial service.
(3)
(a) Before a claimant, estate, or trust may claim a tax credit under this section, the claimant, estate, or trust shall obtain a written certification from the office.
(b) The office shall issue a claimant, estate, or trust a written certification if the office determines that:
(i) the claimant, estate, or trust meets the requirements of this section to receive a tax credit; and
(ii) the hydrogen production system with respect to which the claimant, estate, or trust seeks to claim a tax credit:
(A) has been completely installed; and
(B) is safe, reliable, efficient, and technically feasible to ensure that the hydrogen production system uses the state's nonrenewable energy resources in an appropriate and economic manner.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office may make rules for determining whether a hydrogen production system meets the requirements of Subsection (3)(b)(ii).
(d) A claimant, estate, or trust that obtains a written certification from the office shall retain the certification for the same time period a person is required to keep books and records under Section 59-1-1406.
(e) The office shall submit to the commission an electronic list that includes:
(i) the name and identifying information of each claimant, estate, or trust to which the office issues a written certification; and
(ii) for each claimant, estate, or trust:
(A) the amount of the tax credit listed on the written certification; and
(B) the date the hydrogen production system was installed.
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to address the certification of a tax credit under this section.
(5) A tax credit under this section is in addition to any tax credits provided under the laws or rules and regulations of the United States.
(1) As used in this section:
(a) "Adoption expense" means the same as that term is defined in Section 59-10-1046.
(b) "Domestic adoption" means the same as that term is defined in Section 59-10-1046.
(c) "Qualifying child" means the same as that term is defined in Section 59-10-1046.
(d) "Qualifying claimant" means a claimant:
(i) whose adjusted gross income is:
(A) for a claimant who files a federal income tax return jointly with the claimant's spouse, less than $55,000; and
(B) for a claimant who files a federal income tax return other than jointly, less than $27,500;
(ii) who did not, and if the claimant is married, whose spouse did not, receive state or federal assistance during the taxable year in which the adoption is finalized; and
(iii) who applies for and receives a certification described in Section 35A-1-111 from the Department of Workforce Services.
(e) "State or federal assistance" means the same as that term is defined in Section 59-10-1046.
(2)
(a) Subject to Section 59-10-1102.1 and other provisions of this Subsection (2), a qualifying claimant is eligible to claim a refundable tax credit equal to the lesser of:
(i) $3,500; or
(ii) the amount of the qualifying claimant's adoption expenses.
(b) A qualifying claimant who claims the tax credit described in Subsection (2)(a) shall claim the tax credit for the taxable year in which the adoption is finalized.
(3) A qualifying claimant may not claim a credit under this section to the extent that the qualifying claimant claims a federal tax credit under 26 U.S.C. Sec. 23 for the same adoption expense.
(4) A qualifying claimant who is married may claim a tax credit under this section only if the qualifying claimant and the qualifying claimant's spouse file a joint federal income tax return.
As used in this part, "contribution" means a contribution a resident or nonresident individual makes on an individual income tax return as allowed by this part.
(1) A resident or nonresident individual that makes a contribution under this part, other than Section 59-10-1311 or Section 59-10-1313, may designate as the contribution any whole dollar amount of $1 or more.
(2) If a resident or nonresident individual designating a contribution under this part other than Section 59-10-1311:
(a) is owed an individual income tax refund for the taxable year, the amount of the contribution under this part shall be deducted from the resident or nonresident individual's individual income tax refund; or
(b) is not owed an individual income tax refund for the taxable year, the resident or nonresident individual may remit a contribution under this part with the resident or nonresident individual's individual income tax return, except as provided in Section 59-10-1313.
(3) If a husband and wife file a single individual income tax return jointly, a contribution under this part, other than Section 59-10-1311, shall be a joint contribution.
(4) Except as provided in Subsection 59-10-1313(3)(c), a contribution under this part is irrevocable for the taxable year for which the resident or nonresident individual makes the contribution.
(1)
(a) If a contribution or combination of contributions described in Subsection (1)(b) generate less than $30,000 per year for three consecutive years, the commission shall remove the designation for the contribution from the individual income tax return and may not collect the contribution from a resident or nonresident individual beginning two taxable years after the three-year period for which the contribution generates less than $30,000 per year.
(b) The following contributions apply to Subsection (1)(a):
(i) the contribution provided for in Section 59-10-1306;
(ii) the sum of the contributions provided for in Subsection 59-10-1307(1);
(iii) the contribution provided for in Section 59-10-1308;
(iv) the contribution provided for in Section 59-10-1319;
(v) the contribution provided for in Section 59-10-1320;
(vi) the contribution provided for in Section 59-10-1321;
(vii) the contribution provided for in Section 59-10-1322;
(viii) the contribution provided for in Section 59-10-1323;
(ix) the contribution provided for in Section 59-10-1324; or
(x) the contribution provided for in Section 59-10-1325.
(2) If the commission removes the designation for a contribution under Subsection (1), the commission shall report to the Revenue and Taxation Interim Committee by electronic means that the commission removed the designation on or before the November interim meeting of the year in which the commission determines to remove the designation.
(3)
(a) Within a 30-day period after the day on which the commission makes the report required by Subsection (2), the commission shall publish a list in accordance with Subsection (3)(b) stating each contribution that the commission will remove from the individual income tax return.
(b) The list shall:
(i) be published on:
(A) the commission's website; and
(B) the public legal notice website in accordance with Section 45-1-101;
(ii) include a statement that the commission:
(A) is required to remove the contribution from the individual income tax return; and
(B) may not collect the contribution;
(iii) state the taxable year for which the removal described in Subsection (3)(a) takes effect; and
(iv) remain available for viewing and searching until the commission publishes a new list in accordance with this Subsection (3).
(1) Except as provided in Section 59-10-1304, a resident or nonresident individual that files an individual income tax return under this chapter may designate on the resident or nonresident individual's individual income tax return a contribution to the Pamela Atkinson Homeless Account as provided in this part.
(2) The commission shall:
(a) determine annually the total amount of contributions designated in accordance with this section; and
(b) credit the amount described in Subsection (2)(a) to the Pamela Atkinson Homeless Account created by Section 35A-16-301.
(1) Except as provided in Section 59-10-1304, a resident or nonresident individual that files an individual income tax return under this chapter may designate on the resident or nonresident individual's individual income tax return a contribution as provided in this part to:
(a) the foundation of any school district if that foundation is exempt from federal income taxation under Section 501(c)(3), Internal Revenue Code; or
(b) a school district described in Title 53G, Chapter 3, School District Creation and Change, if the school district has not established a foundation.
(2) If a resident or nonresident individual designates an amount as a contribution under:
(a) Subsection (1)(a), but does not designate a particular school district foundation to receive the contribution, the contribution shall be made to the State Board of Education to be distributed to one or more associations of foundations:
(i) if those foundations that are members of the association are established in accordance with Section 53E-3-403; and
(ii) as determined by the State Board of Education; or
(b) Subsection (1)(b), but does not designate a particular school district to receive the contribution, the contribution shall be made to the State Board of Education.
(3) The commission shall:
(a) determine annually the total amount of contributions designated to each entity described in Subsection (1) in accordance with this section; and
(b) subject to Subsection (2), credit the amounts described in Subsection (1) to the entities.
(1) Except as provided in Section 59-10-1304, a resident or nonresident individual that files an individual income tax return under this chapter may designate on the resident or nonresident individual's individual income tax return a contribution to the Kurt Oscarson Children's Organ Transplant Account created by Section 26B-1-311.
(2) The commission shall:
(a) determine annually the total amount of contributions designated in accordance with this section; and
(b) credit the amount described in Subsection (2)(a) to the Kurt Oscarson Children's Organ Transplant Account created by Section 26B-1-311.
(1)
(a) A resident or nonresident individual, other than a nonresident alien, may designate on the resident or nonresident individual's individual income tax return a contribution of $2 to the Election Campaign Fund created by Section 59-10-1312, if the resident or nonresident individual:
(i) has a liability under this chapter for a taxable year of $2 or more; and
(ii) files a return under this chapter.
(b) The commission shall transfer $2 from the General Fund to the Election Campaign Fund for each contribution made on an individual income tax return under this Subsection (1).
(c) The transfer described in Subsection (1)(b) shall be made from revenue generated from state sales and use tax revenues collected in accordance with Chapter 12, Sales and Use Tax Act.
(2)
(a) A contribution under Subsection (1) may be made with respect to any taxable year at the time a resident or nonresident individual files a return for that taxable year.
(b) The commission shall include the contribution allowed by this section:
(i) on a return under this chapter; and
(ii) for any political party as defined by Section 20A-1-102 that has qualified as a political party in the first six months of the calendar year for which the return is prepared.
(c) The commission shall place a political party described in Subsection (2)(b) on a return described in Subsection (2)(b) in alphabetical order.
(d) The commission shall include on a return described in Subsection (2)(b):
(i) the option for a resident or nonresident individual to indicate that no contribution is to be made to any political party; and
(ii) a statement that a contribution a resident or nonresident individual, other than a nonresident alien, makes under this section may not:
(A) increase the resident or nonresident individual's tax liability under this chapter; or
(B) reduce the resident or nonresident individual's refund under this chapter.
(1)
(a) As used in this section, "fund" means the Election Campaign Fund created by this section.
(b) There is created a custodial fund known as the "Election Campaign Fund."
(c) The fund shall consist of all amounts deposited to the fund in accordance with Section 59-10-1311.
(2) On or before four months after the due date for filing a return required by this chapter in which a contribution is made in accordance with Section 59-10-1311, the state treasurer shall:
(a) disburse that portion of the amounts deposited in the fund since the last disbursement:
(i) that are designated for a political party; and
(ii) to the political party to which the amounts are designated; and
(b) provide to the political party described in Subsection (2)(a)(ii) a list disclosing, for each county, the total amount designated by resident or nonresident individuals, other than nonresident aliens, in that county.
(1)
(a) If a resident or nonresident individual is owed an individual income tax refund for the taxable year, the individual may designate on the resident or nonresident individual's income tax return a contribution to a Utah Educational Savings Plan account established under Title 53H, Chapter 10, Utah Education Savings, as provided in this part.
(b) If a resident or nonresident individual is not owed an individual income tax refund for the taxable year, the individual may not designate on the resident or nonresident's individual income tax return a contribution to a Utah Educational Savings Plan account.
(2)
(a) The commission shall send the contribution to the Utah Educational Savings Plan along with the following information:
(i) the amount of the individual income tax refund; and
(ii) the taxpayer's:
(A) name;
(B) social security number or taxpayer identification number; and
(C) address.
(b) The commission shall provide the taxpayer's telephone number and number of dependents claimed, as requested, to the Utah Educational Savings Plan.
(c) If a contribution to a Utah Educational Savings Plan account is designated in a single individual income tax return filed jointly by a husband and wife, the commission shall send the information described under Subsection (2)(a) or (b) for both the husband and wife to the Utah Educational Savings Plan.
(3)
(a) If the taxpayer owns a Utah Educational Savings Plan account, the Utah Educational Savings Plan shall deposit the contribution into the account.
(b) If the taxpayer owns more than one Utah Educational Savings Plan account, the Utah Educational Savings Plan shall allocate the contribution among the accounts in equal amounts.
(c)
(i) If the taxpayer does not own a Utah Educational Savings Plan account, the Utah Educational Savings Plan shall send the taxpayer an account agreement.
(ii) If the taxpayer does not sign and return the account agreement by the date specified by the Utah Educational Savings Plan, the Utah Educational Savings Plan shall return the contribution to the taxpayer without any interest or earnings.
(4) For the purpose of determining interest on an overpayment or refund under Section 59-1-402, no interest accrues after the commission sends the contribution to the Utah Educational Savings Plan.
(1)
(a) There is created an expendable special revenue fund known as the "Clean Air Fund."
(b) The fund shall consist of all amounts deposited into the fund in accordance with Subsection (2).
(2)
(a) Except as provided in Section 59-10-1304, for a taxable year beginning on or after January 1, 2017, a resident or nonresident individual who files an individual income tax return under this chapter may designate on the resident or nonresident individual's individual income tax return a contribution as provided in this section to be:
(i) deposited into the Clean Air Fund; and
(ii) expended as provided in Subsection (3).
(b) The fund shall also consist of amounts deposited into the fund through:
(i) private contributions; and
(ii) donations or grants from public or private entities.
(3)
(a) At least once each year, the commission shall disburse from the Clean Air Fund all money deposited into the fund since the last disbursement.
(b) The commission shall disburse money under Subsection (3)(a) to the Division of Air Quality for the purpose of:
(i) providing money for grants to individuals or organizations in the state to fund activities intended to improve air quality in the state;
(ii) enhancing programs designed to educate the public about the importance of air quality to the health, well-being, and livelihood of individuals in the state; and
(iii) pay the costs of issuing or reordering Clean Air Support special group license plate decals.
(1) Except as provided in Section 59-10-1304, a resident or nonresident individual that files an individual income tax return under this chapter may designate on the resident or nonresident individual's individual income tax return a contribution to the Governor's Suicide Prevention Fund as provided in this part.
(2) The commission shall:
(a) determine annually the total amount of contributions designated in accordance with this section; and
(b) credit the amount described in Subsection (2)(a) to the Governor's Suicide Prevention Fund created by Section 26B-1-325.
(1)
(a) There is created an expendable special revenue fund known as the "Nonprofit Capacity Fund."
(b) The fund shall consist of all amounts deposited into the fund in accordance with Subsection (2).
(2) Except as provided in Section 59-10-1304, a resident or nonresident individual who files an income tax return under this chapter may designate on the resident or nonresident individual's income tax return a contribution to be:
(a) deposited into the Nonprofit Capacity Fund; and
(b) expended as provided in Subsection (3).
(3) The Department of Cultural and Community Engagement may use the money in the Nonprofit Capacity Fund to provide grants to nonprofit organizations in the state.
(1) As used in this section, "fund" means the Diapering Supplies Fund created in Subsection (2).
(2) There is created an expendable special revenue fund known as the "Diapering Supplies Fund."
(3) The fund consists of amounts deposited into the fund in accordance with Subsection (4).
(4) Except as provided in Section 59-10-1304, a resident or nonresident individual who files an income tax return under this chapter may designate on the resident or nonresident individual's income tax return a contribution to be:
(a) deposited into the Diapering Supplies Fund; and
(b) expended as provided in Subsection (5).
(5)
(a) Each year, the commission shall:
(i) disburse from the Diapering Supplies Fund all money deposited into the fund since the last disbursement; and
(ii) transfer the money to the Department of Health and Human Services for distribution in accordance with Section 26B-7-125.
(b) The commission shall complete the transfer of funds to the Department of Health and Human Services by August 15 of each year.
(1)
(a) There is created an expendable special revenue fund known as the "Statewide Hunger Relief Fund."
(b) The fund shall consist of all amounts deposited into the fund in accordance with Subsection (2).
(2) Except as provided in Section 59-10-1304, for a taxable year beginning on or after January 1, 2025, a resident or nonresident individual that files an individual income tax return under this chapter may designate on the resident or nonresident individual's individual income tax return a contribution to be:
(a) deposited into the Statewide Hunger Relief Fund; and
(b) disbursed to the Utah Food Bank for the purpose of fighting hunger statewide.
(3) At least once each year, the commission shall disburse from the Statewide Hunger Relief Fund all money deposited into the fund since the last disbursement to the Utah Food Bank.
(1)
(a) There is created an expendable special revenue fund known as the "School Meals Debt Relief Fund."
(b) The fund shall consist of all amounts deposited into the fund in accordance with Subsection (2).
(2) Except as provided in Section 59-10-1304, a resident or nonresident individual who files an income tax return under this chapter may designate on the resident or nonresident individual's income tax return a contribution to be:
(a) deposited into the School Meals Debt Relief Fund; and
(b) expended as provided in Subsection (3).
(3)
(a) Each year, the commission shall:
(i) disburse from the School Meals Debt Relief Fund all money deposited into the fund since the last disbursement; and
(ii) transfer the money to the State Board of Education for distribution to local education agencies in accordance with Section 53G-9-205.2.
(b) The commission shall complete the transfer of funds to the State Board of Education by August 15 of each year.
(1)
(a) There is created an expendable special revenue fund known as the "Citizenship Scholarship Fund."
(b) The fund shall consist of all amounts deposited into the fund in accordance with Subsection 59-10-1325(2).
(2) Except as provided in Section 59-10-1304, a resident or nonresident individual who files an income tax return under this chapter may designate on the resident or nonresident individual's income tax return a contribution to be:
(a) deposited into the Citizenship Scholarship Fund; and
(b) expended as provided in Subsection 59-10-1325(3).
(3)
(a) Each year, the commission shall:
(i) disburse from the Citizenship Scholarship Fund all money deposited into the fund since the last disbursement; and
(ii) transfer the money to the Utah Board of Higher Education for distribution to students in accordance with Section 53H-11-416.
(b) The commission shall complete the transfer of funds to the Utah Board of Higher Education by August 15 of each year.
As used in this part:
(1) "Addition, subtraction, or adjustment" means:
(a) for a pass-through entity taxpayer that is classified as a C corporation for federal income tax purposes, under Chapter 7, Corporate Franchise and Income Taxes:
(i) an addition to unadjusted income described in Section 59-7-105; or
(ii) a subtraction from unadjusted income described in Section 59-7-106;
(b) for a pass-through entity taxpayer that is classified as an individual, partnership, or S corporation for federal income tax purposes:
(i) an addition to or subtraction from adjusted gross income described in Section 59-10-114; or
(ii) an adjustment to adjusted gross income described in Section 59-10-115; or
(c) for a pass-through entity taxpayer that is classified as an estate or a trust for federal income tax purposes:
(i) an addition to or subtraction from unadjusted income described in Section 59-10-202; or
(ii) an adjustment to unadjusted income described in Section 59-10-209.1.
(2) "Business income" means income arising from transactions and activity in the regular course of a pass-through entity's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitutes integral parts of the pass-through entity's regular trade or business operations.
(3) "C corporation" means the same as that term is defined in Section 1361, Internal Revenue Code.
(4) "Commercial domicile" means the principal place from which the trade or business of a business entity is directed or managed.
(5) "Dependent beneficiary" means an individual who:
(a) is claimed as a dependent under Section 151, Internal Revenue Code, on another person's federal income tax return; and
(b) is a beneficiary of a trust that is a pass-through entity.
(6) "Derived from or connected with Utah sources" means:
(a) if a pass-through entity taxpayer is classified as a C corporation for federal income tax purposes, derived from or connected with Utah sources in accordance with Chapter 7, Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions; or
(b) if a pass-through entity or pass-through entity taxpayer is classified as an estate, individual, partnership, S corporation, or a trust for federal income tax purposes, derived from or connected with Utah sources in accordance with Sections 59-10-117 and 59-10-118.
(7)
(a) "Final pass-through entity taxpayer" means a pass-through entity taxpayer who is a resident or nonresident individual.
(b) "Final pass-through entity taxpayer" does not include:
(i) a resident or nonresident business entity; or
(ii) a resident or nonresident estate or trust.
(8) "Nonbusiness income" means all income of a pass-through entity other than business income.
(9) "Nonresident business entity" means a business entity that does not have its commercial domicile in this state.
(10) "Nonresident pass-through entity taxpayer" means a pass-through entity taxpayer that is a:
(a) nonresident individual; or
(b) nonresident business entity.
(11) "Pass-through entity" means a business entity that is:
(a) the following if classified as a partnership for federal income tax purposes:
(i) a general partnership;
(ii) a limited liability company;
(iii) a limited liability partnership; or
(iv) a limited partnership;
(b) an S corporation;
(c) an estate or trust with respect to which the estate's or trust's income, gain, loss, deduction, or credit is divided among and passed through to one or more pass-through entity taxpayers; or
(d) a business entity similar to Subsections (11)(a) through (c):
(i) with respect to which the business entity's income, gain, loss, deduction, or credit is divided among and passed through to one or more pass-through entity taxpayers; and
(ii) as defined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(12) "Pass-through entity taxpayer" means a resident or nonresident individual, a resident or nonresident business entity, or a resident or nonresident estate or trust:
(a) that is:
(i) for a general partnership, a partner;
(ii) for a limited liability company, a member;
(iii) for a limited liability partnership, a partner;
(iv) for a limited partnership, a partner;
(v) for an S corporation, a shareholder;
(vi) for an estate or trust described in Subsection(11)(c), a beneficiary; or
(vii) for a business entity described in Subsection(11)(d), a member, partner, shareholder, or other title designated by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
(b) to which the income, gain, loss, deduction, or credit of a pass-through entity is passed through.
(13) "Resident business entity" means a business entity that is not a nonresident business entity.
(14) "Resident pass-through entity taxpayer" means a pass-through entity taxpayer that is a:
(a) resident individual; or
(b) resident business entity.
(15) "Return" means a return that a pass-through entity taxpayer files:
(a) for a pass-through entity taxpayer that is classified as a C corporation for federal income tax purposes, under Chapter 7, Corporate Franchise and Income Taxes; or
(b) for a pass-through entity taxpayer that is classified as an estate, individual, partnership, S corporation, or a trust for federal income tax purposes, under this chapter.
(16) "S corporation" means the same as that term is defined in Section 1361, Internal Revenue Code.
(17) "Share of income, gain, loss, deduction, or credit of a pass-through entity" means:
(a) for a pass-through entity except for a pass-through entity that is an S corporation:
(i) for a resident pass-through entity taxpayer, the resident pass-through entity taxpayer's distributive share of income, gain, loss, deduction, or credit of the pass-through entity as determined under Section 704 et seq., Internal Revenue Code; and
(ii) for a nonresident pass-through entity taxpayer, the nonresident pass-through entity taxpayer's distributive share of income, gain, loss, deduction, or credit of the pass-through entity:
(A) as determined under Section 704 et seq., Internal Revenue Code; and
(B) derived from or connected with Utah sources; or
(b) for an S corporation:
(i) for a resident pass-through entity taxpayer, the resident pass-through entity taxpayer's pro rata share of income, gain, loss, deduction, or credit of the S corporation, as determined under Sec. 1366 et seq., Internal Revenue Code; or
(ii) for a nonresident pass-through entity taxpayer, the nonresident pass-through entity taxpayer's pro rata share of income, gain, loss, deduction, or credit of the S corporation:
(A) as determined under Section 1366 et seq., Internal Revenue Code; and
(B) derived from or connected with Utah sources.
(18) "Statement of dependent beneficiary income" means a statement:
(a) signed by the person who claims a dependent beneficiary as a dependent under Section 151, Internal Revenue Code, on the person's federal income tax return for the taxable year;
(b) attesting that the dependent is a dependent beneficiary; and
(c) indicating that the person expects that the dependent beneficiary's adjusted gross income for the taxable year will not exceed the basic standard deduction for the dependent beneficiary, as calculated under Section 63, Internal Revenue Code, for that taxable year.
(19) "Voluntary taxable income" means the sum of a pass-through entity's income that is:
(a) attributed to a final pass-through entity taxpayer who is a resident individual unless the income is taxed by another state of the United States, the District of Columbia, or possession of the United States; and
(b)
(i) business income and nonbusiness income that is derived from or connected with Utah sources; and
(ii) attributed to a final pass-through entity taxpayer who is a nonresident individual.
(1) Subject to Subsection (3) and except as provided in Subsection 59-10-1403.2(2), a pass-through entity is not subject to a tax imposed by this chapter.
(2) Except as provided in Section 59-10-1403.3, the income, gain, loss, deduction, or credit of a pass-through entity shall be passed through to one or more pass-through entity taxpayers as provided in this part.
(3) A pass-through entity is subject to the return filing requirements of Sections 59-10-507, 59-10-514, and 59-10-516.
(4) For purposes of taxation under this title, a pass-through entity that transacts business in the state shall be classified in the same manner as the pass-through entity is classified for federal income tax purposes.
(5)
(a) If a change is made in a pass-through entity's net income or loss on the pass-through entity's federal income tax return because of an action of the federal government, the pass-through entity shall file with the commission within 90 days after the date of a final determination of the action:
(i) a copy of the pass-through entity's amended federal income tax return or federal adjustment; and
(ii) an amended state income tax return that conforms with the changes made in the pass-through entity's amended federal income tax return.
(b) If a change is made in a pass-through entity's net income on the pass-through entity's federal income tax return because the pass-through entity files an amended federal income tax return, the pass-through entity shall file with the commission, within 90 days after the date the taxpayer files the amended federal income tax return:
(i) a copy of the pass-through entity's amended federal income tax return; and
(ii) an amended state income tax return that conforms with the changes made in the pass-through entity's amended federal income tax return.
(6)
(a) A pass-through entity subject to the return filing requirements under Subsection (3), shall report on the pass-through entity's return:
(i) whether the entity has filed a current annual report with the Division of Corporations; and
(ii) the entity's commerce entity number.
(b) Subsection (6)(a) does not apply to an individual, estate, or trust.
(1) Subject to the other provisions of this part, a pass-through entity taxpayer is subject to taxation:
(a) for a pass-through entity taxpayer that is classified as a C corporation for federal income tax purposes:
(i) if that pass-through entity taxpayer is a resident pass-through entity taxpayer, as a domestic corporation is taxed under Chapter 7, Corporate Franchise and Income Taxes; or
(ii) if that pass-through entity taxpayer is a nonresident pass-through entity taxpayer, as a foreign corporation is taxed under Chapter 7, Corporate Franchise and Income Taxes; or
(b) for a pass-through entity taxpayer that is classified as an estate, individual, partnership, S corporation, or a trust for federal income tax purposes:
(i) if that pass-through entity taxpayer is a resident pass-through entity taxpayer, as a resident estate, resident individual, resident partnership, resident S corporation, or resident trust is taxed under this chapter; or
(ii) if that pass-through entity taxpayer is a nonresident pass-through entity taxpayer, as a nonresident estate, nonresident individual, nonresident partnership, nonresident S corporation, or nonresident trust is taxed under this chapter.
(2) A pass-through entity taxpayer is subject to taxation on the pass-through entity taxpayer's share of income, gain, loss, deduction, or credit of the pass-through entity.
(3)
(a) Subject to Subsection (3)(b)(iii), a resident pass-through entity taxpayer shall file a return:
(i) if the resident pass-through entity taxpayer is classified as a C corporation for federal income tax purposes, as a domestic corporation under Chapter 7, Corporate Franchise and Income Taxes; or
(ii) if the resident pass-through entity taxpayer is classified as an estate, individual, partnership, S corporation, or a trust for federal income tax purposes, as a resident estate, resident individual, resident partnership, resident S corporation, or resident trust under this chapter.
(b)
(i) Except as provided in Subsection (3)(b)(ii) and subject to Subsection (3)(b)(iii) or (iv), a nonresident pass-through entity taxpayer shall file a return:
(A) if the nonresident pass-through entity taxpayer is classified as a C corporation for federal income tax purposes, as a foreign corporation under Chapter 7, Corporate Franchise and Income Taxes; or
(B) if the nonresident pass-through entity taxpayer is classified as an estate, individual, partnership, S corporation, or a trust for federal income tax purposes, as a nonresident estate, nonresident individual, nonresident partnership, nonresident S corporation, or nonresident trust under this chapter.
(ii) A nonresident pass-through entity taxpayer is not required to file a return if:
(A) the nonresident pass-through entity taxpayer does not have:
(I) for a nonresident pass-through entity taxpayer that is classified as a C corporation for federal income tax purposes, unadjusted income as defined in Section 59-7-101 derived from or connected with Utah sources, except for the nonresident pass-through entity taxpayer's share of income, gain, loss, deduction, or credit of the pass-through entity;
(II) for a nonresident pass-through entity taxpayer that is classified as an individual, partnership, or S corporation for federal income tax purposes, adjusted gross income derived from or connected with Utah sources, except for the nonresident pass-through entity taxpayer's share of income, gain, loss, deduction, or credit of the pass-through entity; or
(III) for a nonresident pass-through entity taxpayer that is classified as an estate or a trust for federal income tax purposes, unadjusted income as defined in Section 59-10-103 derived from or connected with Utah sources, except for the nonresident pass-through entity taxpayer's share of income, gain, loss, deduction, or credit of the pass-through entity;
(B) the nonresident pass-through entity taxpayer does not seek to claim a tax credit allowed against a tax imposed under:
(I) Chapter 7, Corporate Franchise and Income Taxes; or
(II) this chapter;
(C) the pass-through entity pays or withholds a tax on behalf of the nonresident pass-through entity taxpayer and remits that tax to the commission:
(I) in accordance with Section 59-10-1403.2; and
(II) if a nonresident pass-through entity taxpayer is classified as a C corporation for federal income tax purposes, in an amount that is equal to or greater than the minimum tax under Section 59-7-104; and
(D) the nonresident pass-through entity taxpayer is not a member of a unitary group as defined in Section 59-7-101 that is required to file a return in this state.
(iii) A nonresident pass-through entity taxpayer that is not otherwise required to file a return under this Subsection (3) may file a return under:
(A) Chapter 7, Corporate Franchise and Income Taxes; or
(B) this chapter.
(iv) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for a pass-through entity taxpayer, except for a pass-through entity taxpayer who is a resident individual, to file a return under this section if two or more pass-through entities pay or withhold a tax in accordance with Section 59-10-1403.2 on behalf of the pass-through entity taxpayer.
(1)
(a) Except as provided in Subsections (1)(b) and (2), for a taxable year, a pass-through entity shall pay or withhold a tax:
(i) on:
(A) the business income of the pass-through entity; and
(B) the nonbusiness income of the pass-through entity derived from or connected with Utah sources; and
(ii) on behalf of a pass-through entity taxpayer.
(b) A pass-through entity is not required to pay or withhold a tax under Subsection (1)(a):
(i) on behalf of a final pass-through entity taxpayer who is a resident individual;
(ii) if the pass-through entity is an organization exempt from taxation under Subsection 59-7-102(1)(a);
(iii) if the pass-through entity:
(A) is a plan under Section 401, 408, or 457, Internal Revenue Code; and
(B) is not required to file a return under Chapter 7, Corporate Franchise and Income Taxes, or this chapter;
(iv) if the pass-through entity is a publicly traded partnership:
(A) as defined in Section 7704(b), Internal Revenue Code;
(B) that is classified as a partnership for federal income tax purposes; and
(C) that files an annual information return reporting the following with respect to each partner of the publicly traded partnership with income derived from or connected with Utah sources that exceeds $500 in a taxable year:
(I) the partner's name;
(II) the partner's address;
(III) the partner's taxpayer identification number; and
(IV) other information required by the commission; or
(v) on behalf of a final pass-through entity taxpayer that is a nonresident individual if the pass-through entity pays the tax described in Subsection (2).
(2)
(a) A pass-through entity that is not a disregarded pass-through entity may elect to pay a tax in an amount equal to the product of:
(i) the percentage listed in Subsection 59-10-104(2); and
(ii) voluntary taxable income.
(b) A pass-through entity that elects to pay the tax in accordance with Subsection (2)(a) shall notify any final pass-through entity taxpayer of that election.
(c) A pass-through entity that pays a tax described in Subsection (2)(a) shall provide to each final pass-through entity taxpayer a statement that states:
(i) the amount of tax paid under Subsection (2)(a) on the income attributed to the final pass-through entity taxpayer; and
(ii) the amount of tax paid to another state by the pass-through entity on income:
(A) attributed to the final pass-through entity taxpayer; and
(B) that the commission determines is substantially similar to the tax under Subsection (2)(a).
(d) A payment of the tax described in Subsection (2)(a) on or before the last day of the taxable year:
(i) is an irrevocable election to be subject to the tax for the taxable year; and
(ii) may not be refunded.
(3)
(a) Subject to Subsection (3)(b), the tax a pass-through entity shall pay or withhold on behalf of a pass-through entity taxpayer for a taxable year is an amount:
(i) determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
(ii) that the commission estimates will be sufficient to pay the tax liability of the pass-through entity taxpayer under this chapter with respect to the income described in Subsection (1)(a)(i) or (2)(a)(ii) of that pass-through entity for the taxable year.
(b) The rules the commission makes in accordance with Subsection (3)(a):
(i) except as provided in Subsection (3)(c):
(A) shall:
(I) for a pass-through entity except for a pass-through entity that is an S corporation, take into account items of income, gain, loss, deduction, and credit as analyzed on the schedule for reporting partners' distributive share items as part of the federal income tax return for the pass-through entity; or
(II) for a pass-through entity that is an S corporation, take into account items of income, gain, loss, deduction, and credit as reconciled on the schedule for reporting shareholders' pro rata share items as part of the federal income tax return for the pass-through entity; and
(B) notwithstanding Subsection (3)(b)(ii)(D), take into account the refundable tax credit provided in Section 59-6-102; and
(ii) may not take into account the following items if taking those items into account does not result in an accurate estimate of a pass-through entity taxpayer's tax liability under this chapter for the taxable year:
(A) a capital loss;
(B) a passive loss;
(C) another item of deduction or loss if that item of deduction or loss is generally subject to significant reduction or limitation in calculating:
(I) for a pass-through entity taxpayer that is classified as a C corporation for federal income tax purposes, unadjusted income as defined in Section 59-7-101;
(II) for a pass-through entity that is classified as an individual, partnership, or S corporation for federal income tax purposes, adjusted gross income; or
(III) for a pass-through entity that is classified as an estate or a trust for federal income tax purposes, unadjusted income as defined in Section 59-10-103; or
(D) a tax credit allowed against a tax imposed under:
(I) Chapter 7, Corporate Franchise and Income Taxes; or
(II) this chapter.
(c) The rules the commission makes in accordance with Subsection (3)(a) may establish a method for taking into account items of income, gain, loss, deduction, or credit of a pass-through entity if:
(i) for a pass-through entity except for a pass-through entity that is an S corporation, the pass-through entity does not analyze the items of income, gain, loss, deduction, or credit on the schedule for reporting partners' distributive share items as part of the federal income tax return for the pass-through entity; or
(ii) for a pass-through entity that is an S corporation, the pass-through entity does not reconcile the items of income, gain, loss, deduction, or credit on the schedule for reporting shareholders' pro rata share items as part of the federal income tax return for the pass-through entity.
(4)
(a) Except as provided in Subsection (4)(b), a pass-through entity shall remit to the commission the tax the pass-through entity pays or withholds on behalf of a pass-through entity taxpayer under this section:
(i) on or before the due date of the pass-through entity's return, not including extensions; and
(ii) on a form provided by the commission.
(b) A pass-through entity shall remit the tax described in Subsection (2) on or before the last day of the pass-through entity's taxable year.
(c) The commission shall consider only the amount of tax remitted as provided in Subsection (4)(b), on or before the last day of the pass-through entity's taxable year as a payment described in Subsection (2).
(d) Except as provided in Subsection (1)(b), a pass-through entity that files an amended return under this part shall pay or withhold tax on any increase in the income described in Subsection (1)(a)(i) on behalf of the pass-through entity taxpayer and remit that tax to the commission.
(5) A pass-through entity shall provide a statement to a pass-through entity taxpayer on behalf of whom the pass-through entity pays or withholds a tax under this section showing the amount of tax the pass-through entity pays or withholds under this section for the taxable year on behalf of the pass-through entity taxpayer.
(6) Notwithstanding Section 59-1-401 or 59-1-402, the commission may not collect an amount under this section for a taxable year from a pass-through entity and shall waive any penalty and interest on that amount if:
(a) the pass-through entity fails to pay or withhold the tax on the amount as required by this section on behalf of the pass-through entity taxpayer;
(b) the pass-through entity taxpayer:
(i) files a return on or before the due date for filing the pass-through entity's return, including extensions; and
(ii) on or before the due date including extensions described in Subsection (6)(b)(i), pays the tax on the amount for the taxable year:
(A) if the pass-through entity taxpayer is classified as a C corporation for federal income tax purposes, under Chapter 7, Corporate Franchise and Income Taxes; or
(B) if the pass-through entity taxpayer is classified as an estate, individual, partnership, S corporation, or a trust for federal income tax purposes, under this chapter; and
(c) the pass-through entity applies to the commission.
(7) Notwithstanding Section 59-1-401 or 59-1-402, the commission may not collect an amount under this section for a taxable year from a pass-through entity that is a trust and shall waive any penalty and interest on that amount if:
(a) the pass-through entity fails to pay or withhold the tax on the amount as required by this section on behalf of a dependent beneficiary;
(b) the pass-through entity applies to the commission; and
(c)
(i) the dependent beneficiary complies with the requirements of Subsection (6)(b); or
(ii)
(A) the dependent beneficiary's adjusted gross income for the taxable year does not exceed the basic standard deduction for the dependent beneficiary, as calculated under Section 63, Internal Revenue Code, for that taxable year; and
(B) the trustee of the trust retains a statement of dependent beneficiary income on behalf of the dependent beneficiary.
(8) If a pass-through entity would have otherwise qualified for a waiver of a penalty and interest under Subsection (7), except that the trustee of a trust has not applied to the commission as required by Subsection (7)(b) or retained the statement of dependent beneficiary income required by Subsection (7)(c)(ii)(B), it is a rebuttable presumption in an audit that the pass-through entity would have otherwise qualified for the waiver of the penalty and interest under Subsection (7).
(1) As used in this section,"qualifying excess withholding" means an amount that:
(a) is paid or withheld:
(i) by a pass-through entity that has a different taxable year than the pass-through entity that requests a refund under this section; and
(ii) on behalf of the pass-through entity that requests the refund, if the pass-through entity that requests the refund also is a pass-through entity taxpayer; and
(b) is equal to the difference between:
(i) the amount paid or withheld for the taxable year on behalf of the pass-through entity that requests the refund; and
(ii) the product of the percentage listed in Subsection 59-10-104(2) and the income, described in Subsection 59-10-1403.2(1)(a)(i), of the pass-through entity that requests the refund.
(2) A pass-through entity may claim a refund of qualifying excess withholding, if the amount of the qualifying excess withholding is equal to or greater than $250,000.
(3) A pass-through entity that requests a refund of qualifying excess withholding under this section shall:
(a) apply to the commission for a refund on or, subject to Subsection (4), after the day on which the pass-through entity files the pass-through entity's income tax return; and
(b) provide any information that the commission may require to determine that the pass-through entity is eligible to receive the refund.
(4) A pass-through entity shall claim a refund of qualifying excess withholding under this section within 30 days after the earlier of the day on which:
(a) the pass-through entity files an income tax return; or
(b) the pass-through entity's income tax return is due, including any extension of due date authorized in statute.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules establishing the information that a pass-through entity shall provide to the commission to obtain a refund of qualifying excess withholding under this section.
Regardless of whether or how an item of income, gain, loss, deduction, or credit is characterized for federal income tax purposes, that item of income, gain, loss, deduction, or credit is from the same source and incurred in the same manner for a pass-through entity taxpayer as if the item of income, gain, loss, deduction, or credit is:
(1) realized directly from the source from which the item of income, gain, loss, deduction, or credit is realized by the pass-through entity; or
(2) incurred in the same manner as incurred by the pass-through entity.
(1) In determining the taxable income of a resident pass-through entity taxpayer, an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit of a pass-through entity shall be made in accordance with this section.
(2) For a resident pass-through entity taxpayer of a pass-through entity except for a pass-through entity that is an S corporation, the resident pass-through entity taxpayer's share of an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit is:
(a) if the item of income, gain, loss, deduction, or credit is required to be taken into account separately for federal income tax purposes, the resident pass-through entity taxpayer's distributive share of the item of income, gain, loss, deduction, or credit:
(i) for federal income tax purposes; and
(ii) determined under Section 704 et seq., Internal Revenue Code; or
(b) if the item of income, gain, loss, deduction, or credit is not required to be taken into account separately for federal income tax purposes, determined in accordance with the resident pass-through entity taxpayer's distributive share of income, gain, loss, deduction, or credit:
(i) relating to the pass-through entity generally;
(ii) for federal income tax purposes; and
(iii) under Section 704 et seq., Internal Revenue Code.
(3) For a resident pass-through entity taxpayer of a pass-through entity that is an S corporation, the resident pass-through entity taxpayer's share of an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit is:
(a) if the item of income, gain, loss, deduction, or credit is required to be taken into account separately for federal income tax purposes, the resident pass-through entity taxpayer's pro rata share of the item of income, gain, loss, deduction, or credit:
(i) for federal income tax purposes; and
(ii) determined under Section 1366 et seq., Internal Revenue Code; or
(b) if the item of income, gain, loss, deduction, or credit is not required to be taken into account separately for federal income tax purposes, determined in accordance with the resident pass-through entity taxpayer's pro rata share of the item of income, gain, loss, deduction, or credit:
(i) relating to the pass-through entity generally;
(ii) for federal income tax purposes; and
(iii) under Section 1366 et seq., Internal Revenue Code.
(1)
(a) Except as provided in Subsection (3), in determining the taxable income of a nonresident pass-through entity taxpayer, an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit of a pass-through entity shall be made in accordance with this Subsection (1).
(b) For a nonresident pass-through entity taxpayer of a pass-through entity except for a pass-through entity that is an S corporation, the nonresident pass-through entity taxpayer's share of an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit is:
(i) if the item of income, gain, loss, deduction, or credit is required to be taken into account separately for federal income tax purposes, the nonresident pass-through entity taxpayer's distributive share of the item of income, gain, loss, deduction, or credit:
(A) for federal income tax purposes;
(B) determined under Section 704 et seq., Internal Revenue Code; and
(C) derived from or connected with Utah sources; or
(ii) if the item of income, gain, loss, deduction, or credit is not required to be taken into account separately for federal income tax purposes, determined in accordance with the nonresident pass-through entity taxpayer's distributive share of income, gain, loss, deduction, or credit:
(A) relating to the pass-through entity generally;
(B) for federal income tax purposes;
(C) under Section 704 et seq., Internal Revenue Code; and
(D) derived from or connected with Utah sources.
(c) For a nonresident pass-through entity taxpayer of a pass-through entity that is an S corporation, the nonresident pass-through entity taxpayer's share of an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit is:
(i) if the item of income, gain, loss, deduction, or credit is required to be taken into account separately for federal income tax purposes, the nonresident pass-through entity taxpayer's pro rata share of the item of income, gain, loss, deduction, or credit:
(A) for federal income tax purposes;
(B) determined under Section 1366 et seq., Internal Revenue Code; and
(C) derived from or connected with Utah sources; or
(ii) if the item of income, gain, loss, deduction, or credit is not required to be taken into account separately for federal income tax purposes, determined in accordance with the nonresident pass-through entity taxpayer's pro rata share of the item of income, gain, loss, deduction, or credit:
(A) relating to the pass-through entity generally;
(B) for federal income tax purposes;
(C) under Section 1366 et seq., Internal Revenue Code; and
(D) derived from or connected with Utah sources.
(2) In determining the source of a nonresident pass-through entity taxpayer's income, the following provisions in a pass-through entity agreement may not be considered:
(a) a provision that allocates to the nonresident pass-through entity taxpayer, as income, gain, or credit from a source outside this state, a greater proportion of the nonresident pass-through entity taxpayer's share of income, gain, or credit of the pass-through entity than the ratio of income, gain, or credit of the pass-through entity from sources outside this state to income, gain, or credit of the pass-through entity from all sources; or
(b) a provision that allocates to the nonresident pass-through entity taxpayer a greater proportion of an item of loss or deduction of the pass-through entity derived from or connected with Utah sources than the taxpayer's share of loss or deduction generally:
(i) relating to the pass-through entity; and
(ii) for federal income tax purposes.
(3) The commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, authorize the use of a calculation other than the calculation provided in Subsection (1), for determining a nonresident pass-through entity taxpayer's share of an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit of a pass-through entity derived from or connected with Utah sources if:
(a) the nonresident pass-through entity taxpayer applies to the commission; and
(b) the commission finds that the use of the calculation is appropriate and equitable.
As used in this chapter:
(1) "800 service" means a telecommunications service that:
(a) allows a caller to dial a toll-free number without incurring a charge for the call; and
(b) is typically marketed:
(i) under the name 800 toll-free calling;
(ii) under the name 855 toll-free calling;
(iii) under the name 866 toll-free calling;
(iv) under the name 877 toll-free calling;
(v) under the name 888 toll-free calling; or
(vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the Federal Communications Commission.
(2)
(a) "900 service" means an inbound toll telecommunications service that:
(i) a subscriber purchases;
(ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to the subscriber's:
(A) prerecorded announcement; or
(B) live service; and
(iii) is typically marketed:
(A) under the name 900 service; or
(B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal Communications Commission.
(b) "900 service" does not include a charge for:
(i) a collection service a seller of a telecommunications service provides to a subscriber; or
(ii) the following a subscriber sells to the subscriber's customer:
(A) a product; or
(B) a service.
(3)
(a) "Adaptive driving equipment" means mobility enhancing equipment:
(i) to be installed in a motor vehicle; and
(ii) regardless of who provides the equipment or parts.
(b) "Adaptive driving equipment" includes:
(i) a wheelchair or scooter lift;
(ii) equipment to secure a wheelchair;
(iii) a swivel seat;
(iv) a hand or foot control; and
(v) a steering aid.
(4)
(a) "Admission or user fees" includes season passes.
(b) "Admission or user fees" does not include:
(i) annual membership dues to private organizations; or
(ii) a lesson, including a lesson that involves as part of the lesson equipment or a facility listed in Subsection 59-12-103(1)(f).
(5) "Affiliate" or "affiliated person" means a person that, with respect to another person:
(a) has an ownership interest of more than 5%, whether direct or indirect, in that other person; or
(b) is related to the other person because a third person, or a group of third persons who are affiliated persons with respect to each other, holds an ownership interest of more than 5%, whether direct or indirect, in the related persons.
(6) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on November 12, 2002, including amendments made to the Streamlined Sales and Use Tax Agreement after November 12, 2002.
(7) "Agreement combined tax rate" means the sum of the tax rates:
(a) listed under Subsection (8); and
(b) that are imposed within a local taxing jurisdiction.
(8) "Agreement sales and use tax" means a tax imposed under:
(a) Subsection 59-12-103(2)(a)(i)(A);
(b) Subsection 59-12-103(2)(a)(i)(B);
(c) Subsection 59-12-103(2)(b)(i);
(d) Subsection 59-12-103(2)(c)(i);
(e) Subsection 59-12-103(2)(d);
(f) Subsection 59-12-103(2)(e)(i)(A);
(g) Section 59-12-204;
(h) Section 59-12-401;
(i) Section 59-12-402;
(j) Section 59-12-402.1;
(k) Section 59-12-703;
(l) Section 59-12-802;
(m) Section 59-12-804;
(n) Section 59-12-1102;
(o) Section 59-12-1302;
(p) Section 59-12-1402;
(q) Section 59-12-1802;
(r) Section 59-12-2003;
(s) Section 59-12-2103;
(t) Section 59-12-2213;
(u) Section 59-12-2214;
(v) Section 59-12-2215;
(w) Section 59-12-2216;
(x) Section 59-12-2217;
(y) Section 59-12-2218;
(z) Section 59-12-2219;
(aa) Section 59-12-2220; or
(bb) Section 59-12-2402.
(9) "Aircraft" means the same as that term is defined in Section 72-10-102.
(10) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
(a) except for:
(i) an airline as defined in Section 59-2-102; or
(ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group" includes a corporation that is qualified to do business but is not otherwise doing business in the state, of an airline; and
(b) that has the workers, expertise, and facilities to perform the following, regardless of whether the business entity performs the following in this state:
(i) check, diagnose, overhaul, and repair:
(A) an onboard system of a fixed wing turbine powered aircraft; and
(B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
(ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft engine;
(iii) perform at least the following maintenance on a fixed wing turbine powered aircraft:
(A) an inspection;
(B) a repair, including a structural repair or modification;
(C) changing landing gear; and
(D) addressing issues related to an aging fixed wing turbine powered aircraft;
(iv) completely remove the existing paint of a fixed wing turbine powered aircraft and completely apply new paint to the fixed wing turbine powered aircraft; and
(v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that results in a change in the fixed wing turbine powered aircraft's certification requirements by the authority that certifies the fixed wing turbine powered aircraft.
(11) "Alcoholic beverage" means a beverage that:
(a) is suitable for human consumption; and
(b) contains .5% or more alcohol by volume.
(12) "Alternative energy" means:
(a) biomass energy;
(b) geothermal energy;
(c) hydroelectric energy;
(d) solar energy;
(e) wind energy; or
(f) energy that is derived from:
(i) coal-to-liquids;
(ii) nuclear fuel;
(iii) oil-impregnated diatomaceous earth;
(iv) oil sands;
(v) oil shale;
(vi) petroleum coke; or
(vii) waste heat from:
(A) an industrial facility; or
(B) a power station in which an electric generator is driven through a process in which water is heated, turns into steam, and spins a steam turbine.
(13)
(a) Subject to Subsection (13)(b), "alternative energy electricity production facility" means a facility that:
(i) uses alternative energy to produce electricity; and
(ii) has a production capacity of two megawatts or greater.
(b) A facility is an alternative energy electricity production facility regardless of whether the facility is:
(i) connected to an electric grid; or
(ii) located on the premises of an electricity consumer.
(14)
(a) "Ancillary service" means a service associated with, or incidental to, the provision of telecommunications service.
(b) "Ancillary service" includes:
(i) a conference bridging service;
(ii) a detailed communications billing service;
(iii) directory assistance;
(iv) a vertical service; or
(v) a voice mail service.
(15) "Area agency on aging" means the same as that term is defined in Section 26B-6-101.
(16) "Assisted amusement device" means an amusement device, skill device, or ride device that is started and stopped by an individual:
(a) who is not the purchaser or renter of the right to use or operate the amusement device, skill device, or ride device; and
(b) at the direction of the seller of the right to use the amusement device, skill device, or ride device.
(17) "Assisted cleaning or washing of tangible personal property" means cleaning or washing of tangible personal property if the cleaning or washing labor is primarily performed by an individual:
(a) who is not the purchaser of the cleaning or washing of the tangible personal property; and
(b) at the direction of the seller of the cleaning or washing of the tangible personal property.
(18) "Authorized carrier" means:
(a) in the case of vehicles operated over public highways, the holder of credentials indicating that the vehicle is or will be operated in accordance with both the International Registration Plan and the International Fuel Tax Agreement;
(b) in the case of aircraft, the holder of a Federal Aviation Administration operating certificate or air carrier's operating certificate; or
(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling stock in more than one state.
(19)
(a) "Biomass energy" means any of the following that is used as the primary source of energy to produce fuel or electricity:
(i) material from a plant or tree; or
(ii) other organic matter that is available on a renewable basis, including:
(A) slash and brush from forests and woodlands;
(B) animal waste;
(C) waste vegetable oil;
(D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of wastewater residuals, or through the conversion of a waste material through a nonincineration, thermal conversion process;
(E) aquatic plants; and
(F) agricultural products.
(b) "Biomass energy" does not include:
(i) black liquor; or
(ii) treated woods.
(20)
(a) "Bundled transaction" means the sale of two or more items of tangible personal property, products, or services if the tangible personal property, products, or services are:
(i) distinct and identifiable; and
(ii) sold for one nonitemized price.
(b) "Bundled transaction" does not include:
(i) the sale of tangible personal property if the sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of tangible personal property included in the transaction;
(ii) the sale of real property;
(iii) the sale of services to real property;
(iv) the retail sale of tangible personal property and a service if:
(A) the tangible personal property:
(I) is essential to the use of the service; and
(II) is provided exclusively in connection with the service; and
(B) the service is the true object of the transaction;
(v) the retail sale of two services if:
(A) one service is provided that is essential to the use or receipt of a second service;
(B) the first service is provided exclusively in connection with the second service; and
(C) the second service is the true object of the transaction;
(vi) a transaction that includes tangible personal property or a product subject to taxation under this chapter and tangible personal property or a product that is not subject to taxation under this chapter if the:
(A) seller's purchase price of the tangible personal property or product subject to taxation under this chapter is de minimis; or
(B) seller's sales price of the tangible personal property or product subject to taxation under this chapter is de minimis; and
(vii) the retail sale of tangible personal property that is not subject to taxation under this chapter and tangible personal property that is subject to taxation under this chapter if:
(A) that retail sale includes:
(I) food and food ingredients;
(II) a drug;
(III) durable medical equipment;
(IV) mobility enhancing equipment;
(V) an over-the-counter drug;
(VI) a prosthetic device; or
(VII) a medical supply; and
(B) subject to Subsection (20)(f):
(I) the seller's purchase price of the tangible personal property subject to taxation under this chapter is 50% or less of the seller's total purchase price of that retail sale; or
(II) the seller's sales price of the tangible personal property subject to taxation under this chapter is 50% or less of the seller's total sales price of that retail sale.
(c)
(i) For purposes of Subsection (20)(a)(i), tangible personal property, a product, or a service that is distinct and identifiable does not include:
(A) packaging that:
(I) accompanies the sale of the tangible personal property, product, or service; and
(II) is incidental or immaterial to the sale of the tangible personal property, product, or service;
(B) tangible personal property, a product, or a service provided free of charge with the purchase of another item of tangible personal property, a product, or a service; or
(C) an item of tangible personal property, a product, or a service included in the definition of "purchase price."
(ii) For purposes of Subsection (20)(c)(i)(B), an item of tangible personal property, a product, or a service is provided free of charge with the purchase of another item of tangible personal property, a product, or a service if the sales price of the purchased item of tangible personal property, product, or service does not vary depending on the inclusion of the tangible personal property, product, or service provided free of charge.
(d)
(i) For purposes of Subsection (20)(a)(ii), property sold for one nonitemized price does not include a price that is separately identified by tangible personal property, product, or service on the following, regardless of whether the following is in paper format or electronic format:
(A) a binding sales document; or
(B) another supporting sales-related document that is available to a purchaser.
(ii) For purposes of Subsection (20)(d)(i), a binding sales document or another supporting sales-related document that is available to a purchaser includes:
(A) a bill of sale;
(B) a contract;
(C) an invoice;
(D) a lease agreement;
(E) a periodic notice of rates and services;
(F) a price list;
(G) a rate card;
(H) a receipt; or
(I) a service agreement.
(e)
(i) For purposes of Subsection (20)(b)(vi), the sales price of tangible personal property or a product subject to taxation under this chapter is de minimis if:
(A) the seller's purchase price of the tangible personal property or product is 10% or less of the seller's total purchase price of the bundled transaction; or
(B) the seller's sales price of the tangible personal property or product is 10% or less of the seller's total sales price of the bundled transaction.
(ii) For purposes of Subsection (20)(b)(vi), a seller:
(A) shall use the seller's purchase price or the seller's sales price to determine if the purchase price or sales price of the tangible personal property or product subject to taxation under this chapter is de minimis; and
(B) may not use a combination of the seller's purchase price and the seller's sales price to determine if the purchase price or sales price of the tangible personal property or product subject to taxation under this chapter is de minimis.
(iii) For purposes of Subsection (20)(b)(vi), a seller shall use the full term of a service contract to determine if the sales price of tangible personal property or a product is de minimis.
(f) For purposes of Subsection (20)(b)(vii)(B), a seller may not use a combination of the seller's purchase price and the seller's sales price to determine if tangible personal property subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales price of that retail sale.
(21) "Car sharing" means the same as that term is defined in Section 13-48a-101.
(22) "Car-sharing program" means the same as that term is defined in Section 13-48a-101.
(23) "Certified automated system" means software certified by the governing board of the agreement that:
(a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
(i) on a transaction; and
(ii) in the states that are members of the agreement;
(b) determines the amount of agreement sales and use tax to remit to a state that is a member of the agreement; and
(c) maintains a record of the transaction described in Subsection (23)(a)(i).
(24) "Certified service provider" means an agent certified:
(a) by the governing board of the agreement; and
(b) to perform a seller's sales and use tax functions for an agreement sales and use tax, as outlined in the contract between the governing board of the agreement and the certified service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's own purchases.
(25)
(a) Subject to Subsection (25)(b), "clothing" means all human wearing apparel suitable for general use.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules:
(i) listing the items that constitute "clothing"; and
(ii) that are consistent with the list of items that constitute "clothing" under the agreement.
(26) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
(27) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels that does not constitute industrial use under Subsection (62) or residential use under Subsection (118).
(28)
(a) "Common carrier" means a person engaged in or transacting the business of transporting passengers, freight, merchandise, or other property for hire within this state.
(b)
(i) "Common carrier" does not include a person that, at the time the person is traveling to or from that person's place of employment, transports a passenger to or from the passenger's place of employment.
(ii) For purposes of Subsection (28)(b)(i), in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining what constitutes a person's place of employment.
(c) "Common carrier" does not include a person that provides transportation network services, as defined in Section 13-51-102.
(29) "Component part" includes:
(a) poultry, dairy, and other livestock feed, and their components;
(b) baling ties and twine used in the baling of hay and straw;
(c) fuel used for providing temperature control of orchards and commercial greenhouses doing a majority of their business in wholesale sales, and for providing power for off-highway type farm machinery; and
(d) feed, seeds, and seedlings.
(30) "Computer" means an electronic device that accepts information:
(a)
(i) in digital form; or
(ii) in a form similar to digital form; and
(b) manipulates that information for a result based on a sequence of instructions.
(31) "Computer software" means a set of coded instructions designed to cause:
(a) a computer to perform a task; or
(b) automatic data processing equipment to perform a task.
(32) "Computer software maintenance contract" means a contract that obligates a seller of computer software to provide a customer with:
(a) future updates or upgrades to computer software;
(b) support services with respect to computer software; or
(c) a combination of Subsections (32)(a) and (b).
(33)
(a) "Conference bridging service" means an ancillary service that links two or more participants of an audio conference call or video conference call.
(b) "Conference bridging service" may include providing a telephone number as part of the ancillary service described in Subsection (33)(a).
(c) "Conference bridging service" does not include a telecommunications service used to reach the ancillary service described in Subsection (33)(a).
(34) "Construction materials" means any tangible personal property that will be converted into real property.
(35) "Delivered electronically" means delivered to a purchaser by means other than tangible storage media.
(36)
(a) "Delivery charge" means a charge:
(i) by a seller of:
(A) tangible personal property;
(B) a product transferred electronically; or
(C) a service; and
(ii) for preparation and delivery of the tangible personal property, product transferred electronically, or services described in Subsection (36)(a)(i) to a location designated by the purchaser.
(b) "Delivery charge" includes a charge for the following:
(i) transportation;
(ii) shipping;
(iii) postage;
(iv) handling;
(v) crating; or
(vi) packing.
(37) "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement.
(38) "Dietary supplement" means a product, other than tobacco, that:
(a) is intended to supplement the diet;
(b) contains one or more of the following dietary ingredients:
(i) a vitamin;
(ii) a mineral;
(iii) an herb or other botanical;
(iv) an amino acid;
(v) a dietary substance for use by humans to supplement the diet by increasing the total dietary intake; or
(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient described in Subsections (38)(b)(i) through (v);
(c)
(i) except as provided in Subsection (38)(c)(ii), is intended for ingestion in:
(A) tablet form;
(B) capsule form;
(C) powder form;
(D) softgel form;
(E) gelcap form; or
(F) liquid form; or
(ii) if the product is not intended for ingestion in a form described in Subsections (38)(c)(i)(A) through (F), is not represented:
(A) as conventional food; and
(B) for use as a sole item of:
(I) a meal; or
(II) the diet; and
(d) is required to be labeled as a dietary supplement:
(i) identifiable by the "Supplemental Facts" box found on the label; and
(ii) as required by 21 C.F.R. Sec. 101.36.
(39)
(a) "Digital audio work" means a work that results from the fixation of a series of musical, spoken, or other sounds.
(b) "Digital audio work" includes a ringtone.
(40) "Digital audio-visual work" means a series of related images which, when shown in succession, imparts an impression of motion, together with accompanying sounds, if any.
(41) "Digital book" means a work that is generally recognized in the ordinary and usual sense as a book.
(42)
(a) "Direct mail" means printed material delivered or distributed by United States mail or other delivery service:
(i) to:
(A) a mass audience; or
(B) addressees on a mailing list provided:
(I) by a purchaser of the mailing list; or
(II) at the discretion of the purchaser of the mailing list; and
(ii) if the cost of the printed material is not billed directly to the recipients.
(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a purchaser to a seller of direct mail for inclusion in a package containing the printed material.
(c) "Direct mail" does not include multiple items of printed material delivered to a single address.
(43) "Directory assistance" means an ancillary service of providing:
(a) address information; or
(b) telephone number information.
(44)
(a) "Disposable home medical equipment or supplies" means medical equipment or supplies that:
(i) cannot withstand repeated use; and
(ii) are purchased by, for, or on behalf of a person other than:
(A) a health care facility as defined in Section 26B-2-201;
(B) a health care provider as defined in Section 78B-3-403;
(C) an office of a health care provider described in Subsection (44)(a)(ii)(B); or
(D) a person similar to a person described in Subsections (44)(a)(ii)(A) through (C).
(b) "Disposable home medical equipment or supplies" does not include:
(i) a drug;
(ii) durable medical equipment;
(iii) a hearing aid;
(iv) a hearing aid accessory;
(v) mobility enhancing equipment; or
(vi) tangible personal property used to correct impaired vision, including:
(A) eyeglasses; or
(B) contact lenses.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define what constitutes medical equipment or supplies.
(45) "Drilling equipment manufacturer" means a facility:
(a) located in the state;
(b) with respect to which 51% or more of the manufacturing activities of the facility consist of manufacturing component parts of drilling equipment;
(c) that uses pressure of 800,000 or more pounds per square inch as part of the manufacturing process; and
(d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the manufacturing process.
(46)
(a) "Drug" means a compound, substance, or preparation, or a component of a compound, substance, or preparation that is:
(i) recognized in:
(A) the official United States Pharmacopoeia;
(B) the official Homeopathic Pharmacopoeia of the United States;
(C) the official National Formulary; or
(D) a supplement to a publication listed in Subsections (46)(a)(i)(A) through (C);
(ii) intended for use in the:
(A) diagnosis of disease;
(B) cure of disease;
(C) mitigation of disease;
(D) treatment of disease; or
(E) prevention of disease; or
(iii) intended to affect:
(A) the structure of the body; or
(B) any function of the body.
(b) "Drug" does not include:
(i) food and food ingredients;
(ii) a dietary supplement;
(iii) an alcoholic beverage; or
(iv) a prosthetic device.
(47)
(a) "Durable medical equipment" means equipment that:
(i) can withstand repeated use;
(ii) is primarily and customarily used to serve a medical purpose;
(iii) generally is not useful to a person in the absence of illness or injury; and
(iv) is not worn in or on the body.
(b) "Durable medical equipment" includes parts used in the repair or replacement of the equipment described in Subsection (47)(a).
(c) "Durable medical equipment" does not include mobility enhancing equipment.
(48) "Electronic" means:
(a) relating to technology; and
(b) having:
(i) electrical capabilities;
(ii) digital capabilities;
(iii) magnetic capabilities;
(iv) wireless capabilities;
(v) optical capabilities;
(vi) electromagnetic capabilities; or
(vii) capabilities similar to Subsections (48)(b)(i) through (vi).
(49) "Electronic financial payment service" means an establishment:
(a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and Clearinghouse Activities, of the 2012 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget; and
(b) that performs electronic financial payment services.
(50) "Employee" means the same as that term is defined in Section 59-10-401.
(51) "Fixed guideway" means a public transit facility that uses and occupies:
(a) rail for the use of public transit; or
(b) a separate right-of-way for the use of public transit.
(52) "Fixed wing turbine powered aircraft" means an aircraft that:
(a) is powered by turbine engines;
(b) operates on jet fuel; and
(c) has wings that are permanently attached to the fuselage of the aircraft.
(53) "Fixed wireless service" means a telecommunications service that provides radio communication between fixed points.
(54)
(a) "Food and food ingredients" means substances:
(i) regardless of whether the substances are in:
(A) liquid form;
(B) concentrated form;
(C) solid form;
(D) frozen form;
(E) dried form; or
(F) dehydrated form; and
(ii) that are:
(A) sold for:
(I) ingestion by humans; or
(II) chewing by humans; and
(B) consumed for the substance's:
(I) taste; or
(II) nutritional value.
(b) "Food and food ingredients" includes an item described in Subsection (101)(b)(iii).
(c) "Food and food ingredients" does not include:
(i) an alcoholic beverage;
(ii) tobacco; or
(iii) prepared food.
(55)
(a) "Fundraising sales" means sales:
(i)
(A) made by a school; or
(B) made by a school student;
(ii) that are for the purpose of raising funds for the school to purchase equipment, materials, or provide transportation; and
(iii) that are part of an officially sanctioned school activity.
(b) For purposes of Subsection (55)(a)(iii), "officially sanctioned school activity" means a school activity:
(i) that is conducted in accordance with a formal policy adopted by the school or school district governing the authorization and supervision of fundraising activities;
(ii) that does not directly or indirectly compensate an individual teacher or other educational personnel by direct payment, commissions, or payment in kind; and
(iii) the net or gross revenue from which is deposited in a dedicated account controlled by the school or school district.
(56) "Geothermal energy" means energy contained in heat that continuously flows outward from the earth that is used as the sole source of energy to produce electricity.
(57) "Governing board of the agreement" means the governing board of the agreement that is:
(a) authorized to administer the agreement; and
(b) established in accordance with the agreement.
(58)
(a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
(i) the executive branch of the state, including all departments, institutions, boards, divisions, bureaus, offices, commissions, and committees;
(ii) the judicial branch of the state, including the courts, the Judicial Council, the Administrative Office of the Courts, and similar administrative units in the judicial branch;
(iii) the legislative branch of the state, including the House of Representatives, the Senate, the Office of Legislative Services, the Office of Legislative Research and General Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal Analyst;
(iv) the National Guard;
(v) an independent entity as defined in Section 63E-1-102; or
(vi) a political subdivision as defined in Section 17B-1-102.
(b) "Governmental entity" does not include the state systems of public and higher education, including:
(i) a school;
(ii) the State Board of Education;
(iii) the Utah Board of Higher Education; or
(iv) an institution of higher education listed in Section 53H-1-102.
(59) "Home cook" means an individual who prepares food and food ingredients or prepared food exclusively in a private, noncommercial home kitchen.
(60) "Hydroelectric energy" means water used as the sole source of energy to produce electricity.
(61) "Individual-owned shared vehicle" means the same as that term is defined in Section 13-48a-101.
(62) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other fuels:
(a) in mining or extraction of minerals;
(b) in agricultural operations to produce an agricultural product up to the time of harvest or placing the agricultural product into a storage facility, including:
(i) commercial greenhouses;
(ii) irrigation pumps;
(iii) farm machinery;
(iv) implements of husbandry as defined in Section 41-1a-102 that are not registered under Title 41, Chapter 1a, Part 2, Registration; and
(v) other farming activities;
(c) in manufacturing tangible personal property at an establishment described in:
(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of the President, Office of Management and Budget; or
(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(d) by a scrap recycler if:
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one or more of the following items into prepared grades of processed materials for use in new products:
(A) iron;
(B) steel;
(C) nonferrous metal;
(D) paper;
(E) glass;
(F) plastic;
(G) textile; or
(H) rubber; and
(ii) the new products under Subsection (62)(d)(i) would otherwise be made with nonrecycled materials; or
(e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a cogeneration facility as defined in Section 54-2-1.
(63)
(a) "Installation charge" means a charge for installing:
(i) tangible personal property; or
(ii) a product transferred electronically.
(b) "Installation charge" does not include a charge for:
(i) repairs or renovations of:
(A) tangible personal property; or
(B) a product transferred electronically; or
(ii) attaching tangible personal property or a product transferred electronically:
(A) to other tangible personal property; and
(B) as part of a manufacturing or fabrication process.
(64) "Institution of higher education" means an institution of higher education listed in Section 53H-1-102.
(65)
(a) "Lease" or "rental" means a transfer of possession or control of tangible personal property or a product transferred electronically for:
(i)
(A) a fixed term; or
(B) an indeterminate term; and
(ii) consideration.
(b) "Lease" or "rental" includes:
(i) an agreement covering a motor vehicle and trailer if the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue Code; and
(ii) car sharing.
(c) "Lease" or "rental" does not include:
(i) a transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;
(ii) a transfer of possession or control of property under an agreement that requires the transfer of title:
(A) upon completion of required payments; and
(B) if the payment of an option price does not exceed the greater of:
(I) $100; or
(II) 1% of the total required payments; or
(iii) providing tangible personal property along with an operator for a fixed period of time or an indeterminate period of time if the operator is necessary for equipment to perform as designed.
(d) For purposes of Subsection (65)(c)(iii), an operator is necessary for equipment to perform as designed if the operator's duties exceed the:
(i) set-up of tangible personal property;
(ii) maintenance of tangible personal property; or
(iii) inspection of tangible personal property.
(66) "Lesson" means a fixed period of time for the duration of which a trained instructor:
(a) is present with a student in person or by video; and
(b) actively instructs the student, including by providing observation or feedback.
(67) "Life science establishment" means an establishment in this state that is classified under the following NAICS codes of the 2007 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget:
(a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
(b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus Manufacturing; or
(c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
(68) "Life science research and development facility" means a facility owned, leased, or rented by a life science establishment if research and development is performed in 51% or more of the total area of the facility.
(69) "Load and leave" means delivery to a purchaser by use of a tangible storage media if the tangible storage media is not physically transferred to the purchaser.
(70) "Local taxing jurisdiction" means a:
(a) county that is authorized to impose an agreement sales and use tax;
(b) city that is authorized to impose an agreement sales and use tax; or
(c) town that is authorized to impose an agreement sales and use tax.
(71) "Manufactured home" means the same as that term is defined in Section 15A-1-302.
(72) "Manufacturing facility" means:
(a) an establishment described in:
(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of the President, Office of Management and Budget; or
(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(b) a scrap recycler if:
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one or more of the following items into prepared grades of processed materials for use in new products:
(A) iron;
(B) steel;
(C) nonferrous metal;
(D) paper;
(E) glass;
(F) plastic;
(G) textile; or
(H) rubber; and
(ii) the new products under Subsection (72)(b)(i) would otherwise be made with nonrecycled materials; or
(c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is placed in service on or after May 1, 2006.
(73)
(a) "Marketplace" means a physical or electronic place, platform, or forum where tangible personal property, a product transferred electronically, or a service is offered for sale.
(b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a dedicated sales software application.
(74)
(a) "Marketplace facilitator" means a person, including an affiliate of the person, that enters into a contract, an agreement, or otherwise with sellers, for consideration, to facilitate the sale of a seller's product through a marketplace that the person owns, operates, or controls and that directly or indirectly:
(i) does any of the following:
(A) lists, makes available, or advertises tangible personal property, a product transferred electronically, or a service for sale by a marketplace seller on a marketplace that the person owns, operates, or controls;
(B) facilitates the sale of a marketplace seller's tangible personal property, product transferred electronically, or service by transmitting or otherwise communicating an offer or acceptance of a retail sale between the marketplace seller and a purchaser using the marketplace;
(C) owns, rents, licenses, makes available, or operates any electronic or physical infrastructure or any property, process, method, copyright, trademark, or patent that connects a marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal property, a product transferred electronically, or a service;
(D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible personal property, a product transferred electronically, or a service, regardless of ownership or control of the tangible personal property, the product transferred electronically, or the service that is the subject of the retail sale;
(E) provides software development or research and development activities related to any activity described in this Subsection (74)(a)(i), if the software development or research and development activity is directly related to the person's marketplace;
(F) provides or offers fulfillment or storage services for a marketplace seller;
(G) sets prices for the sale of tangible personal property, a product transferred electronically, or a service by a marketplace seller;
(H) provides or offers customer service to a marketplace seller or a marketplace seller's purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal property, a product transferred electronically, or a service sold by a marketplace seller on the person's marketplace; or
(I) brands or otherwise identifies sales as those of the person; and
(ii) does any of the following:
(A) collects the sales price or purchase price of a retail sale of tangible personal property, a product transferred electronically, or a service;
(B) provides payment processing services for a retail sale of tangible personal property, a product transferred electronically, or a service;
(C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing fee, a fee for inserting or making available tangible personal property, a product transferred electronically, or a service on the person's marketplace, or other consideration for the facilitation of a retail sale of tangible personal property, a product transferred electronically, or a service, regardless of ownership or control of the tangible personal property, the product transferred electronically, or the service that is the subject of the retail sale;
(D) through terms and conditions, an agreement, or another arrangement with a third person, collects payment from a purchase for a retail sale of tangible personal property, a product transferred electronically, or a service and transmits that payment to the marketplace seller, regardless of whether the third person receives compensation or other consideration in exchange for the service; or
(E) provides a virtual currency for a purchaser to use to purchase tangible personal property, a product transferred electronically, or service offered for sale.
(b) "Marketplace facilitator" does not include:
(i) a person that only provides payment processing services; or
(ii) a person described in Subsection (74)(a) to the extent the person is facilitating a sale for a seller that is a restaurant as defined in Section 59-12-602.
(75) "Marketplace seller" means a seller that makes one or more retail sales through a marketplace that a marketplace facilitator owns, operates, or controls, regardless of whether the seller is required to be registered to collect and remit the tax under this part.
(76) "Member of the immediate family of the producer" means a person who is related to a producer described in Subsection 59-12-104(20)(a) as a:
(a) child or stepchild, regardless of whether the child or stepchild is:
(i) an adopted child or adopted stepchild; or
(ii) a foster child or foster stepchild;
(b) grandchild or stepgrandchild;
(c) grandparent or stepgrandparent;
(d) nephew or stepnephew;
(e) niece or stepniece;
(f) parent or stepparent;
(g) sibling or stepsibling;
(h) spouse;
(i) person who is the spouse of a person described in Subsections (76)(a) through (g); or
(j) person similar to a person described in Subsections (76)(a) through (i) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(77) "Mobile home" means the same as that term is defined in Section 15A-1-302.
(78) "Mobile telecommunications service" means the same as that term is defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(79)
(a) "Mobile wireless service" means a telecommunications service, regardless of the technology used, if:
(i) the origination point of the conveyance, routing, or transmission is not fixed;
(ii) the termination point of the conveyance, routing, or transmission is not fixed; or
(iii) the origination point described in Subsection (79)(a)(i) and the termination point described in Subsection (79)(a)(ii) are not fixed.
(b) "Mobile wireless service" includes a telecommunications service that is provided by a commercial mobile radio service provider.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define "commercial mobile radio service provider."
(80)
(a) "Mobility enhancing equipment" means equipment that is:
(i) primarily and customarily used to provide or increase the ability to move from one place to another;
(ii) appropriate for use in a:
(A) home; or
(B) motor vehicle; and
(iii) not generally used by persons with normal mobility.
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of the equipment described in Subsection (80)(a).
(c) "Mobility enhancing equipment" does not include:
(i) a motor vehicle;
(ii) equipment on a motor vehicle if that equipment is normally provided by the motor vehicle manufacturer;
(iii) durable medical equipment; or
(iv) a prosthetic device.
(81) "Model 1 seller" means a seller registered under the agreement that has selected a certified service provider as the seller's agent to perform the seller's sales and use tax functions for agreement sales and use taxes, as outlined in the contract between the governing board of the agreement and the certified service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's own purchases.
(82) "Model 2 seller" means a seller registered under the agreement that:
(a) except as provided in Subsection (82)(b), has selected a certified automated system to perform the seller's sales tax functions for agreement sales and use taxes; and
(b) retains responsibility for remitting all of the sales tax:
(i) collected by the seller; and
(ii) to the appropriate local taxing jurisdiction.
(83)
(a) Subject to Subsection (83)(b), "model 3 seller" means a seller registered under the agreement that has:
(i) sales in at least five states that are members of the agreement;
(ii) total annual sales revenue of at least $500,000,000;
(iii) a proprietary system that calculates the amount of tax:
(A) for an agreement sales and use tax; and
(B) due to each local taxing jurisdiction; and
(iv) entered into a performance agreement with the governing board of the agreement.
(b) For purposes of Subsection (83)(a), "model 3 seller" includes an affiliated group of sellers using the same proprietary system.
(84) "Model 4 seller" means a seller that is registered under the agreement and is not a model 1 seller, model 2 seller, or model 3 seller.
(85) "Modular home" means a modular unit as defined in Section 15A-1-302.
(86) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
(87) "Oil sands" means impregnated bituminous sands that:
(a) contain a heavy, thick form of petroleum that is released when heated, mixed with other hydrocarbons, or otherwise treated;
(b) yield mixtures of liquid hydrocarbon; and
(c) require further processing other than mechanical blending before becoming finished petroleum products.
(88) "Oil shale" means a group of fine black to dark brown shales containing kerogen material that yields petroleum upon heating and distillation.
(89) "Optional computer software maintenance contract" means a computer software maintenance contract that a customer is not obligated to purchase as a condition to the retail sale of computer software.
(90)
(a) "Other fuels" means products that burn independently to produce heat or energy.
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible personal property.
(91)
(a) "Paging service" means a telecommunications service that provides transmission of a coded radio signal for the purpose of activating a specific pager.
(b) For purposes of Subsection (91)(a), the transmission of a coded radio signal includes a transmission by message or sound.
(92) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
(93) "Pawnbroker" means the same as that term is defined in Section 13-32a-102.
(94)
(a) "Permanently attached to real property" means that for tangible personal property attached to real property:
(i) the attachment of the tangible personal property to the real property:
(A) is essential to the use of the tangible personal property; and
(B) suggests that the tangible personal property will remain attached to the real property in the same place over the useful life of the tangible personal property; or
(ii) if the tangible personal property is detached from the real property, the detachment would:
(A) cause substantial damage to the tangible personal property; or
(B) require substantial alteration or repair of the real property to which the tangible personal property is attached.
(b) "Permanently attached to real property" includes:
(i) the attachment of an accessory to the tangible personal property if the accessory is:
(A) essential to the operation of the tangible personal property; and
(B) attached only to facilitate the operation of the tangible personal property;
(ii) a temporary detachment of tangible personal property from real property for a repair or renovation if the repair or renovation is performed where the tangible personal property and real property are located; or
(iii) property attached to oil, gas, or water pipelines, except for the property listed in Subsection (94)(c)(iii) or (iv).
(c) "Permanently attached to real property" does not include:
(i) the attachment of portable or movable tangible personal property to real property if that portable or movable tangible personal property is attached to real property only for:
(A) convenience;
(B) stability; or
(C) for an obvious temporary purpose;
(ii) the detachment of tangible personal property from real property except for the detachment described in Subsection (94)(b)(ii);
(iii) an attachment of the following tangible personal property to real property if the attachment to real property is only through a line that supplies water, electricity, gas, telecommunications, cable, or supplies a similar item as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(A) a computer;
(B) a telephone;
(C) a television; or
(D) tangible personal property similar to Subsections (94)(c)(iii)(A) through (C) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
(iv) an item listed in Subsection (141)(c).
(95) "Person" includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city, municipality, district, or other local governmental entity of the state, or any group or combination acting as a unit.
(96) "Place of primary use":
(a) for telecommunications service other than mobile telecommunications service, means the street address representative of where the customer's use of the telecommunications service primarily occurs, which shall be:
(i) the residential street address of the customer; or
(ii) the primary business street address of the customer; or
(b) for mobile telecommunications service, means the same as that term is defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(97)
(a) "Postpaid calling service" means a telecommunications service a person obtains by making a payment on a call-by-call basis:
(i) through the use of a:
(A) bank card;
(B) credit card;
(C) debit card; or
(D) travel card; or
(ii) by a charge made to a telephone number that is not associated with the origination or termination of the telecommunications service.
(b) "Postpaid calling service" includes a service, except for a prepaid wireless calling service, that would be a prepaid wireless calling service if the service were exclusively a telecommunications service.
(98) "Postproduction" means an activity related to the finishing or duplication of a medium described in Subsection 59-12-104(54)(a).
(99) "Prepaid calling service" means a telecommunications service:
(a) that allows a purchaser access to telecommunications service that is exclusively telecommunications service;
(b) that:
(i) is paid for in advance; and
(ii) enables the origination of a call using an:
(A) access number; or
(B) authorization code;
(c) that is dialed:
(i) manually; or
(ii) electronically; and
(d) sold in predetermined units or dollars that decline:
(i) by a known amount; and
(ii) with use.
(100) "Prepaid wireless calling service" means a telecommunications service:
(a) that provides the right to utilize:
(i) mobile wireless service; and
(ii) other service that is not a telecommunications service, including:
(A) the download of a product transferred electronically;
(B) a content service; or
(C) an ancillary service;
(b) that:
(i) is paid for in advance; and
(ii) enables the origination of a call using an:
(A) access number; or
(B) authorization code;
(c) that is dialed:
(i) manually; or
(ii) electronically; and
(d) sold in predetermined units or dollars that decline:
(i) by a known amount; and
(ii) with use.
(101)
(a) "Prepared food" means:
(i) food:
(A) sold in a heated state; or
(B) heated by a seller;
(ii) two or more food ingredients mixed or combined by the seller for sale as a single item; or
(iii) except as provided in Subsection (101)(c), food sold with an eating utensil provided by the seller, including a:
(A) plate;
(B) knife;
(C) fork;
(D) spoon;
(E) glass;
(F) cup;
(G) napkin; or
(H) straw.
(b) "Prepared food" does not include:
(i) food that a seller only:
(A) cuts;
(B) repackages; or
(C) pasteurizes;
(ii)
(A) the following:
(I) raw egg;
(II) raw fish;
(III) raw meat;
(IV) raw poultry; or
(V) a food containing an item described in Subsections (101)(b)(ii)(A)(I) through (IV); and
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the Food and Drug Administration's Food Code that a consumer cook the items described in Subsection (101)(b)(ii)(A) to prevent food borne illness; or
(iii) the following if sold without eating utensils provided by the seller:
(A) food and food ingredients sold by a seller if the seller's proper primary classification under the 2002 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, is manufacturing in Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla Manufacturing;
(B) food and food ingredients sold in an unheated state:
(I) by weight or volume; and
(II) as a single item; or
(C) a bakery item, including:
(I) a bagel;
(II) a bar;
(III) a biscuit;
(IV) bread;
(V) a bun;
(VI) a cake;
(VII) a cookie;
(VIII) a croissant;
(IX) a danish;
(X) a donut;
(XI) a muffin;
(XII) a pastry;
(XIII) a pie;
(XIV) a roll;
(XV) a tart;
(XVI) a torte; or
(XVII) a tortilla.
(c) An eating utensil provided by the seller does not include the following used to transport the food:
(i) a container; or
(ii) packaging.
(102) "Prescription" means an order, formula, or recipe that is issued:
(a)
(i) orally;
(ii) in writing;
(iii) electronically; or
(iv) by any other manner of transmission; and
(b) by a licensed practitioner authorized by the laws of a state.
(103)
(a) "Prewritten computer software" means computer software that is not designed and developed:
(i) by the author or other creator of the computer software; and
(ii) to the specifications of a specific purchaser.
(b) "Prewritten computer software" includes:
(i) a prewritten upgrade to computer software if the prewritten upgrade to the computer software is not designed and developed:
(A) by the author or other creator of the computer software; and
(B) to the specifications of a specific purchaser;
(ii) computer software designed and developed by the author or other creator of the computer software to the specifications of a specific purchaser if the computer software is sold to a person other than the purchaser; or
(iii) except as provided in Subsection (103)(c), prewritten computer software or a prewritten portion of prewritten computer software:
(A) that is modified or enhanced to any degree; and
(B) if the modification or enhancement described in Subsection (103)(b)(iii)(A) is designed and developed to the specifications of a specific purchaser.
(c) "Prewritten computer software" does not include a modification or enhancement described in Subsection (103)(b)(iii) if the charges for the modification or enhancement are:
(i) reasonable; and
(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the invoice or other statement of price provided to the purchaser at the time of sale or later, as demonstrated by:
(A) the books and records the seller keeps at the time of the transaction in the regular course of business, including books and records the seller keeps at the time of the transaction in the regular course of business for nontax purposes;
(B) a preponderance of the facts and circumstances at the time of the transaction; and
(C) the understanding of all of the parties to the transaction.
(104)
(a) "Private communications service" means a telecommunications service:
(i) that entitles a customer to exclusive or priority use of one or more communications channels between or among termination points; and
(ii) regardless of the manner in which the one or more communications channels are connected.
(b) "Private communications service" includes the following provided in connection with the use of one or more communications channels:
(i) an extension line;
(ii) a station;
(iii) switching capacity; or
(iv) another associated service that is provided in connection with the use of one or more communications channels as defined in Section 59-12-215.
(105)
(a) "Product transferred electronically" means a product transferred electronically that would be subject to a tax under this chapter if that product was transferred in a manner other than electronically.
(b) "Product transferred electronically" does not include:
(i) an ancillary service;
(ii) computer software; or
(iii) a telecommunications service.
(106)
(a) "Prosthetic device" means a device that is worn on or in the body to:
(i) artificially replace a missing portion of the body;
(ii) prevent or correct a physical deformity or physical malfunction; or
(iii) support a weak or deformed portion of the body.
(b) "Prosthetic device" includes:
(i) parts used in the repairs or renovation of a prosthetic device;
(ii) replacement parts for a prosthetic device;
(iii) a dental prosthesis; or
(iv) a hearing aid.
(c) "Prosthetic device" does not include:
(i) corrective eyeglasses; or
(ii) contact lenses.
(107)
(a) "Protective equipment" means an item:
(i) for human wear; and
(ii) that is:
(A) designed as protection:
(I) to the wearer against injury or disease; or
(II) against damage or injury of other persons or property; and
(B) not suitable for general use.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules:
(i) listing the items that constitute "protective equipment"; and
(ii) that are consistent with the list of items that constitute "protective equipment" under the agreement.
(108)
(a) For purposes of Subsection 59-12-104(41), "publication" means any written or printed matter, other than a photocopy:
(i) regardless of:
(A) characteristics;
(B) copyright;
(C) form;
(D) format;
(E) method of reproduction; or
(F) source; and
(ii) made available in printed or electronic format.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "photocopy."
(109)
(a) "Purchase price" and "sales price" mean the total amount of consideration:
(i) valued in money; and
(ii) for which tangible personal property, a product transferred electronically, or services are:
(A) sold;
(B) leased; or
(C) rented.
(b) "Purchase price" and "sales price" include:
(i) the seller's cost of the tangible personal property, a product transferred electronically, or services sold;
(ii) expenses of the seller, including:
(A) the cost of materials used;
(B) a labor cost;
(C) a service cost;
(D) interest;
(E) a loss;
(F) the cost of transportation to the seller; or
(G) a tax imposed on the seller;
(iii) a charge by the seller for any service necessary to complete the sale; or
(iv) consideration a seller receives from a person other than the purchaser if:
(A)
(I) the seller actually receives consideration from a person other than the purchaser; and
(II) the consideration described in Subsection (109)(b)(iv)(A)(I) is directly related to a price reduction or discount on the sale;
(B) the seller has an obligation to pass the price reduction or discount through to the purchaser;
(C) the amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale to the purchaser; and
(D)
(I)
(Aa) the purchaser presents a certificate, coupon, or other documentation to the seller to claim a price reduction or discount; and
(Bb) a person other than the seller authorizes, distributes, or grants the certificate, coupon, or other documentation with the understanding that the person other than the seller will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
(II) the purchaser identifies that purchaser to the seller as a member of a group or organization allowed a price reduction or discount, except that a preferred customer card that is available to any patron of a seller does not constitute membership in a group or organization allowed a price reduction or discount; or
(III) the price reduction or discount is identified as a third party price reduction or discount on the:
(Aa) invoice the purchaser receives; or
(Bb) certificate, coupon, or other documentation the purchaser presents.
(c) "Purchase price" and "sales price" do not include:
(i) a discount:
(A) in a form including:
(I) cash;
(II) term; or
(III) coupon;
(B) that is allowed by a seller;
(C) taken by a purchaser on a sale; and
(D) that is not reimbursed by a third party; or
(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if separately stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of sale or later, as demonstrated by the books and records the seller keeps at the time of the transaction in the regular course of business, including books and records the seller keeps at the time of the transaction in the regular course of business for nontax purposes, by a preponderance of the facts and circumstances at the time of the transaction, and by the understanding of all of the parties to the transaction:
(A) the following from credit extended on the sale of tangible personal property or services:
(I) a carrying charge;
(II) a financing charge; or
(III) an interest charge;
(B) a delivery charge;
(C) an installation charge;
(D) a manufacturer rebate on a motor vehicle; or
(E) a tax or fee legally imposed directly on the consumer.
(110) "Purchaser" means a person to whom:
(a) a sale of tangible personal property is made;
(b) a product is transferred electronically; or
(c) a service is furnished.
(111) "Qualifying data center" means a data center facility that:
(a) houses a group of networked server computers in one physical location in order to disseminate, manage, and store data and information;
(b) is located in the state;
(c) is a new operation constructed on or after July 1, 2016;
(d) consists of one or more buildings that total 150,000 or more square feet;
(e) is owned or leased by:
(i) the operator of the data center facility; or
(ii) a person under common ownership, as defined in Section 59-7-101, of the operator of the data center facility; and
(f) is located on one or more parcels of land that are owned or leased by:
(i) the operator of the data center facility; or
(ii) a person under common ownership, as defined in Section 59-7-101, of the operator of the data center facility.
(112) "Qualifying energy storage manufacturing facility" means a facility that manufactures, in the state, equipment or devices that store and discharge energy for the purpose of providing electrical power.
(113) "Regularly rented" means:
(a) rented to a guest for value three or more times during a calendar year; or
(b) advertised or held out to the public as a place that is regularly rented to guests for value.
(114) "Rental" means the same as that term is defined in Subsection (65).
(115)
(a) "Repairs or renovations of tangible personal property" means:
(i) a repair or renovation of tangible personal property that is not permanently attached to real property; or
(ii) attaching tangible personal property or a product transferred electronically to other tangible personal property or detaching tangible personal property or a product transferred electronically from other tangible personal property if:
(A) the other tangible personal property to which the tangible personal property or product transferred electronically is attached or from which the tangible personal property or product transferred electronically is detached is not permanently attached to real property; and
(B) the attachment of tangible personal property or a product transferred electronically to other tangible personal property or detachment of tangible personal property or a product transferred electronically from other tangible personal property is made in conjunction with a repair or replacement of tangible personal property or a product transferred electronically.
(b) "Repairs or renovations of tangible personal property" does not include:
(i) attaching prewritten computer software to other tangible personal property if the other tangible personal property to which the prewritten computer software is attached is not permanently attached to real property; or
(ii) detaching prewritten computer software from other tangible personal property if the other tangible personal property from which the prewritten computer software is detached is not permanently attached to real property.
(116) "Research and development" means the process of inquiry or experimentation aimed at the discovery of facts, devices, technologies, or applications and the process of preparing those devices, technologies, or applications for marketing.
(117)
(a) "Residential telecommunications services" means a telecommunications service or an ancillary service that is provided to an individual for personal use:
(i) at a residential address; or
(ii) at an institution, including a nursing home or a school, if the telecommunications service or ancillary service is provided to and paid for by the individual residing at the institution rather than the institution.
(b) For purposes of Subsection (117)(a)(i), a residential address includes an:
(i) apartment; or
(ii) other individual dwelling unit.
(118) "Residential use" means the use in or around a home, apartment building, sleeping quarters, and similar facilities or accommodations.
(119) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
(a) resale;
(b) sublease; or
(c) subrent.
(120)
(a) "Retailer" means any person, unless prohibited by the Constitution of the United States or federal law, that is engaged in a regularly organized business in tangible personal property or any other taxable transaction under Subsection 59-12-103(1), and who is selling to the user or consumer and not for resale.
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly engaged in the business of selling to users or consumers within the state.
(121)
(a) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise, in any manner, of tangible personal property or any other taxable transaction under Subsection 59-12-103(1), for consideration.
(b) "Sale" includes:
(i) installment and credit sales;
(ii) any closed transaction constituting a sale;
(iii) any sale of electrical energy, gas, services, or entertainment taxable under this chapter;
(iv) any transaction if the possession of property is transferred but the seller retains the title as security for the payment of the price; and
(v) any transaction under which right to possession, operation, or use of any article of tangible personal property is granted under a lease or contract and the transfer of possession would be taxable if an outright sale were made.
(122) "Sale at retail" means the same as that term is defined in Subsection (119).
(123) "Sale-leaseback transaction" means a transaction by which title to tangible personal property or a product transferred electronically that is subject to a tax under this chapter is transferred:
(a) by a purchaser-lessee;
(b) to a lessor;
(c) for consideration; and
(d) if:
(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase of the tangible personal property or product transferred electronically;
(ii) the sale of the tangible personal property or product transferred electronically to the lessor is intended as a form of financing:
(A) for the tangible personal property or product transferred electronically; and
(B) to the purchaser-lessee; and
(iii) in accordance with generally accepted accounting principles, the purchaser-lessee is required to:
(A) capitalize the tangible personal property or product transferred electronically for financial reporting purposes; and
(B) account for the lease payments as payments made under a financing arrangement.
(124) "Sales price" means the same as that term is defined in Subsection (109).
(125)
(a) "Sales relating to schools" means the following sales by, amounts paid to, or amounts charged by a school:
(i) sales that are directly related to the school's educational functions or activities including:
(A) the sale of:
(I) textbooks;
(II) textbook fees;
(III) laboratory fees;
(IV) laboratory supplies; or
(V) safety equipment;
(B) the sale of a uniform, protective equipment, or sports or recreational equipment that:
(I) a student is specifically required to wear as a condition of participation in a school-related event or school-related activity; and
(II) is not readily adaptable to general or continued usage to the extent that it takes the place of ordinary clothing;
(C) sales of the following if the net or gross revenue generated by the sales is deposited into a school district fund or school fund dedicated to school meals:
(I) food and food ingredients; or
(II) prepared food; or
(D) transportation charges for official school activities; or
(ii) amounts paid to or amounts charged by a school for admission to a school-related event or school-related activity.
(b) "Sales relating to schools" does not include:
(i) bookstore sales of items that are not educational materials or supplies;
(ii) except as provided in Subsection (125)(a)(i)(B):
(A) clothing;
(B) clothing accessories or equipment;
(C) protective equipment; or
(D) sports or recreational equipment; or
(iii) amounts paid to or amounts charged by a school for admission to a school-related event or school-related activity if the amounts paid or charged are passed through to a person:
(A) other than a:
(I) school;
(II) nonprofit organization authorized by a school board or a governing body of a private school to organize and direct a competitive secondary school activity; or
(III) nonprofit association authorized by a school board or a governing body of a private school to organize and direct a competitive secondary school activity; and
(B) that is required to collect sales and use taxes under this chapter.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining the term "passed through."
(126) For purposes of this section and Section 59-12-104, "school" means:
(a) an elementary school or a secondary school that:
(i) is a:
(A) public school; or
(B) private school; and
(ii) provides instruction for one or more grades kindergarten through 12; or
(b) a public school district.
(127)
(a) "Seller" means a person that makes a sale, lease, or rental of:
(i) tangible personal property;
(ii) a product transferred electronically; or
(iii) a service.
(b) "Seller" includes a marketplace facilitator.
(128) "Seller-hosted prewritten computer software" means prewritten computer software that is accessed through the internet or a seller-hosted server, regardless of whether:
(a) the access is permanent; or
(b) any downloading occurs.
(129)
(a) "Semiconductor fabricating, processing, research, or development materials" means tangible personal property or a product transferred electronically if the tangible personal property or product transferred electronically is:
(i) used primarily in the process of:
(A)
(I) manufacturing a semiconductor;
(II) fabricating a semiconductor; or
(III) research or development of a:
(Aa) semiconductor; or
(Bb) semiconductor manufacturing process; or
(B) maintaining an environment suitable for a semiconductor; or
(ii) consumed primarily in the process of:
(A)
(I) manufacturing a semiconductor;
(II) fabricating a semiconductor; or
(III) research or development of a:
(Aa) semiconductor; or
(Bb) semiconductor manufacturing process; or
(B) maintaining an environment suitable for a semiconductor.
(b) "Semiconductor fabricating, processing, research, or development materials" includes:
(i) parts used in the repairs or renovations of tangible personal property or a product transferred electronically described in Subsection (129)(a); or
(ii) a chemical, catalyst, or other material used to:
(A) produce or induce in a semiconductor a:
(I) chemical change; or
(II) physical change;
(B) remove impurities from a semiconductor; or
(C) improve the marketable condition of a semiconductor.
(130) "Senior citizen center" means a facility having the primary purpose of providing services to the aged as defined in Section 26B-6-101.
(131) "Shared vehicle" means the same as that term is defined in Section 13-48a-101.
(132) "Shared vehicle driver" means the same as that term is defined in Section 13-48a-101.
(133) "Shared vehicle owner" means the same as that term is defined in Section 13-48a-101.
(134)
(a) Subject to Subsections (134)(b) and (c), "short-term lodging consumable" means tangible personal property that:
(i) a business that provides accommodations and services described in Subsection 59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services to a purchaser;
(ii) is intended to be consumed by the purchaser; and
(iii) is:
(A) included in the purchase price of the accommodations and services; and
(B) not separately stated on an invoice, bill of sale, or other similar document provided to the purchaser.
(b) "Short-term lodging consumable" includes:
(i) a beverage;
(ii) a brush or comb;
(iii) a cosmetic;
(iv) a hair care product;
(v) lotion;
(vi) a magazine;
(vii) makeup;
(viii) a meal;
(ix) mouthwash;
(x) nail polish remover;
(xi) a newspaper;
(xii) a notepad;
(xiii) a pen;
(xiv) a pencil;
(xv) a razor;
(xvi) saline solution;
(xvii) a sewing kit;
(xviii) shaving cream;
(xix) a shoe shine kit;
(xx) a shower cap;
(xxi) a snack item;
(xxii) soap;
(xxiii) toilet paper;
(xxiv) a toothbrush;
(xxv) toothpaste; or
(xxvi) an item similar to Subsections (134)(b)(i) through (xxv) as the commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(c) "Short-term lodging consumable" does not include:
(i) tangible personal property that is cleaned or washed to allow the tangible personal property to be reused; or
(ii) a product transferred electronically.
(135)
(a) "Short-term rental" means a transfer of possession or control of real property, tangible personal property, or a product transferred electronically for:
(i) consideration; and
(ii) less than 30 consecutive days.
(b) "Short-term rental" does not include car sharing.
(136) "Simplified electronic return" means the electronic return:
(a) described in Section 318(C) of the agreement; and
(b) approved by the governing board of the agreement.
(137) "Solar energy" means the sun used as the sole source of energy for producing electricity.
(138)
(a) "Sports or recreational equipment" means an item:
(i) designed for human use; and
(ii) that is:
(A) worn in conjunction with:
(I) an athletic activity; or
(II) a recreational activity; and
(B) not suitable for general use.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules:
(i) listing the items that constitute "sports or recreational equipment"; and
(ii) that are consistent with the list of items that constitute "sports or recreational equipment" under the agreement.
(139) "State" means the state of Utah, its departments, and agencies.
(140) "Storage" means any keeping or retention of tangible personal property or any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose except sale in the regular course of business.
(141)
(a) "Tangible personal property" means personal property that:
(i) may be:
(A) seen;
(B) weighed;
(C) measured;
(D) felt; or
(E) touched; or
(ii) is in any manner perceptible to the senses.
(b) "Tangible personal property" includes:
(i) electricity;
(ii) water;
(iii) gas;
(iv) steam; or
(v) prewritten computer software, regardless of the manner in which the prewritten computer software is transferred.
(c) "Tangible personal property" includes the following regardless of whether the item is attached to real property:
(i) a dishwasher;
(ii) a dryer;
(iii) a freezer;
(iv) a microwave;
(v) a refrigerator;
(vi) a stove;
(vii) a washer; or
(viii) an item similar to Subsections (141)(c)(i) through (vii) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(d) "Tangible personal property" does not include a product that is transferred electronically.
(e) "Tangible personal property" does not include the following if attached to real property, regardless of whether the attachment to real property is only through a line that supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(i) a hot water heater;
(ii) a water filtration system; or
(iii) a water softener system.
(142)
(a) "Telecommunications enabling or facilitating equipment, machinery, or software" means an item listed in Subsection (142)(b) if that item is purchased or leased primarily to enable or facilitate one or more of the following to function:
(i) telecommunications switching or routing equipment, machinery, or software; or
(ii) telecommunications transmission equipment, machinery, or software.
(b) The following apply to Subsection (142)(a):
(i) a pole;
(ii) software;
(iii) a supplementary power supply;
(iv) temperature or environmental equipment or machinery;
(v) test equipment;
(vi) a tower; or
(vii) equipment, machinery, or software that functions similarly to an item listed in Subsections (142)(b)(i) through (vi) as determined by the commission by rule made in accordance with Subsection (142)(c).
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define what constitutes equipment, machinery, or software that functions similarly to an item listed in Subsections (142)(b)(i) through (vi).
(143) "Telecommunications equipment, machinery, or software required for 911 service" means equipment, machinery, or software that is required to comply with 47 C.F.R. Sec. 20.18.
(144) "Telecommunications maintenance or repair equipment, machinery, or software" means equipment, machinery, or software purchased or leased primarily to maintain or repair one or more of the following, regardless of whether the equipment, machinery, or software is purchased or leased as a spare part or as an upgrade or modification to one or more of the following:
(a) telecommunications enabling or facilitating equipment, machinery, or software;
(b) telecommunications switching or routing equipment, machinery, or software; or
(c) telecommunications transmission equipment, machinery, or software.
(145)
(a) "Telecommunications service" means the electronic conveyance, routing, or transmission of audio, data, video, voice, or any other information or signal to a point, or among or between points.
(b) "Telecommunications service" includes:
(i) an electronic conveyance, routing, or transmission with respect to which a computer processing application is used to act:
(A) on the code, form, or protocol of the content;
(B) for the purpose of electronic conveyance, routing, or transmission; and
(C) regardless of whether the service:
(I) is referred to as voice over internet protocol service; or
(II) is classified by the Federal Communications Commission as enhanced or value added;
(ii) an 800 service;
(iii) a 900 service;
(iv) a fixed wireless service;
(v) a mobile wireless service;
(vi) a postpaid calling service;
(vii) a prepaid calling service;
(viii) a prepaid wireless calling service; or
(ix) a private communications service.
(c) "Telecommunications service" does not include:
(i) advertising, including directory advertising;
(ii) an ancillary service;
(iii) a billing and collection service provided to a third party;
(iv) a data processing and information service if:
(A) the data processing and information service allows data to be:
(I)
(Aa) acquired;
(Bb) generated;
(Cc) processed;
(Dd) retrieved; or
(Ee) stored; and
(II) delivered by an electronic transmission to a purchaser; and
(B) the purchaser's primary purpose for the underlying transaction is the processed data or information;
(v) installation or maintenance of the following on a customer's premises:
(A) equipment; or
(B) wiring;
(vi) internet access service;
(vii) a paging service;
(viii) a product transferred electronically, including:
(A) music;
(B) reading material;
(C) a ring tone;
(D) software; or
(E) video;
(ix) a radio and television audio and video programming service:
(A) regardless of the medium; and
(B) including:
(I) furnishing conveyance, routing, or transmission of a television audio and video programming service by a programming service provider;
(II) cable service as defined in 47 U.S.C. Sec. 522(6); or
(III) audio and video programming services delivered by a commercial mobile radio service provider as defined in 47 C.F.R. Sec. 20.3;
(x) a value-added nonvoice data service; or
(xi) tangible personal property.
(146)
(a) "Telecommunications service provider" means a person that:
(i) owns, controls, operates, or manages a telecommunications service; and
(ii) engages in an activity described in Subsection (146)(a)(i) for the shared use with or resale to any person of the telecommunications service.
(b) A person described in Subsection (146)(a) is a telecommunications service provider whether the Public Service Commission of Utah regulates:
(i) that person; or
(ii) the telecommunications service that the person owns, controls, operates, or manages.
(147)
(a) "Telecommunications switching or routing equipment, machinery, or software" means an item listed in Subsection (147)(b) if that item is purchased or leased primarily for switching or routing:
(i) an ancillary service;
(ii) data communications;
(iii) voice communications; or
(iv) telecommunications service.
(b) The following apply to Subsection (147)(a):
(i) a bridge;
(ii) a computer;
(iii) a cross connect;
(iv) a modem;
(v) a multiplexer;
(vi) plug in circuitry;
(vii) a router;
(viii) software;
(ix) a switch; or
(x) equipment, machinery, or software that functions similarly to an item listed in Subsections (147)(b)(i) through (ix) as determined by the commission by rule made in accordance with Subsection (147)(c).
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define what constitutes equipment, machinery, or software that functions similarly to an item listed in Subsections (147)(b)(i) through (ix).
(148)
(a) "Telecommunications transmission equipment, machinery, or software" means an item listed in Subsection (148)(b) if that item is purchased or leased primarily for sending, receiving, or transporting:
(i) an ancillary service;
(ii) data communications;
(iii) voice communications; or
(iv) telecommunications service.
(b) The following apply to Subsection (148)(a):
(i) an amplifier;
(ii) a cable;
(iii) a closure;
(iv) a conduit;
(v) a controller;
(vi) a duplexer;
(vii) a filter;
(viii) an input device;
(ix) an input/output device;
(x) an insulator;
(xi) microwave machinery or equipment;
(xii) an oscillator;
(xiii) an output device;
(xiv) a pedestal;
(xv) a power converter;
(xvi) a power supply;
(xvii) a radio channel;
(xviii) a radio receiver;
(xix) a radio transmitter;
(xx) a repeater;
(xxi) software;
(xxii) a terminal;
(xxiii) a timing unit;
(xxiv) a transformer;
(xxv) a wire; or
(xxvi) equipment, machinery, or software that functions similarly to an item listed in Subsections (148)(b)(i) through (xxv) as the commission determines by rule made in accordance with Subsection (148)(c).
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define what constitutes equipment, machinery, or software that functions similarly to an item listed in Subsections (148)(b)(i) through (xxv).
(149)
(a) "Textbook for a higher education course" means a textbook or other printed material that is required for a course:
(i) offered by an institution of higher education; and
(ii) that the purchaser of the textbook or other printed material attends or will attend.
(b) "Textbook for a higher education course" includes a textbook in electronic format.
(150) "Tobacco" means:
(a) a cigarette;
(b) a cigar;
(c) chewing tobacco;
(d) pipe tobacco; or
(e) any other item that contains tobacco.
(151) "Unassisted amusement device" means an amusement device, skill device, or ride device that is started and stopped by the purchaser or renter of the right to use or operate the amusement device, skill device, or ride device.
(152)
(a) "Use" means the exercise of any right or power over tangible personal property, a product transferred electronically, or a service under Subsection 59-12-103(1), incident to the ownership or the leasing of that tangible personal property, product transferred electronically, or service.
(b) "Use" does not include the sale, display, demonstration, or trial of tangible personal property, a product transferred electronically, or a service in the regular course of business and held for resale.
(153) "Value-added nonvoice data service" means a service:
(a) that otherwise meets the definition of a telecommunications service except that a computer processing application is used to act primarily for a purpose other than conveyance, routing, or transmission; and
(b) with respect to which a computer processing application is used to act on data or information:
(i) code;
(ii) content;
(iii) form; or
(iv) protocol.
(154)
(a) Subject to Subsection (154)(b), "vehicle" means the following that are required to be titled, registered, or titled and registered:
(i) an aircraft as defined in Section 72-10-102;
(ii) a vehicle as defined in Section 41-1a-102;
(iii) an off-highway vehicle as defined in Section 41-22-2; or
(iv) a vessel as defined in Section 41-1a-102.
(b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
(i) a vehicle described in Subsection (154)(a); or
(ii)
(A) a locomotive;
(B) a freight car;
(C) railroad work equipment; or
(D) other railroad rolling stock.
(155) "Vehicle dealer" means a person engaged in the business of buying, selling, or exchanging a vehicle as defined in Subsection (154).
(156)
(a) "Vertical service" means an ancillary service that:
(i) is offered in connection with one or more telecommunications services; and
(ii) offers an advanced calling feature that allows a customer to:
(A) identify a caller; and
(B) manage multiple calls and call connections.
(b) "Vertical service" includes an ancillary service that allows a customer to manage a conference bridging service.
(157)
(a) "Voice mail service" means an ancillary service that enables a customer to receive, send, or store a recorded message.
(b) "Voice mail service" does not include a vertical service that a customer is required to have in order to utilize a voice mail service.
(158)
(a) "Waste energy facility" means a facility that generates electricity:
(i) using as the primary source of energy waste materials that would be placed in a landfill or refuse pit if it were not used to generate electricity, including:
(A) tires;
(B) waste coal;
(C) oil shale; or
(D) municipal solid waste; and
(ii) in amounts greater than actually required for the operation of the facility.
(b) "Waste energy facility" does not include a facility that incinerates:
(i) hospital waste as defined in 40 C.F.R. 60.51c; or
(ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
(159) "Watercraft" means a vessel as defined in Section 73-18-2.
(160) "Wind energy" means wind used as the sole source of energy to produce electricity.
(161) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic location by the United States Postal Service.
(1) The commission may apply to the governing board for the state to become a party to the agreement.
(2) If the state becomes a party to the agreement, the commission may:
(a) establish standards for certification of a:
(i) certified automated system; and
(ii) certified service provider;
(b) act jointly with other states that are parties to the agreement to establish performance standards for multistate sellers; and
(c) take other actions reasonably required to implement provisions of the agreement:
(i) if those actions are not in conflict with statute; and
(ii) subject to Subsection (2)(c)(i), including:
(A) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, adopting administrative rules; and
(B) in furtherance of the agreement, jointly procuring goods or services with other states that are parties to the agreement.
(3) Subject to Subsection (4), delegates shall be appointed to the governing board of the agreement to:
(a) assist in implementing the provisions of the agreement; and
(b) address other matters as determined by the governing board.
(4) Delegates shall be appointed as follows:
(a) two delegates shall be legislators appointed by mutual consent of the speaker of the House of Representatives and the president of the Senate; and
(b) two delegates shall be appointed by the governor, at least one of whom shall be from the commission.
(1) A tax is imposed on the purchaser as provided in this part on the purchase price or sales price for amounts paid or charged for the following transactions:
(a) retail sales of tangible personal property made within the state;
(b) amounts paid for:
(i) telecommunications service, other than mobile telecommunications service, that originates and terminates within the boundaries of this state;
(ii) mobile telecommunications service that originates and terminates within the boundaries of one state only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
(iii) an ancillary service associated with a:
(A) telecommunications service described in Subsection (1)(b)(i); or
(B) mobile telecommunications service described in Subsection (1)(b)(ii);
(c) sales of the following for commercial use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(d) sales of the following for residential use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(e) sales of prepared food;
(f) except as provided in Section 59-12-104, amounts paid or charged as admission or user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition, cultural, or athletic activity;
(g) amounts paid or charged for services for repairs or renovations of tangible personal property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
(i) the tangible personal property; and
(ii) parts used in the repairs or renovations of the tangible personal property described in Subsection (1)(g)(i), regardless of whether:
(A) any parts are actually used in the repairs or renovations of that tangible personal property; or
(B) the particular parts used in the repairs or renovations of that tangible personal property are exempt from a tax under this chapter;
(h) except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted cleaning or washing of tangible personal property;
(i) amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer court accommodations and services;
(j) amounts paid or charged for laundry or dry cleaning services;
(k) amounts paid or charged for leases or rentals of tangible personal property if within this state the tangible personal property is:
(i) stored;
(ii) used; or
(iii) otherwise consumed;
(l) amounts paid or charged for tangible personal property if within this state the tangible personal property is:
(i) stored;
(ii) used; or
(iii) consumed;
(m) amounts paid or charged for a sale:
(i)
(A) of a product transferred electronically; or
(B) of a repair or renovation of a product transferred electronically; and
(ii) regardless of whether the sale provides:
(A) a right of permanent use of the product; or
(B) a right to use the product that is less than a permanent use, including a right:
(I) for a definite or specified length of time; and
(II) that terminates upon the occurrence of a condition;
(n) sales of leased tangible personal property from the lessor to the lessee made in the state;
(o) amounts paid or charged for access to digital audio-visual works, digital audio works, digital books, or gaming services, including the streaming of or subscription for access to digital audio-visual works, digital audio works, digital books, or gaming services regardless of:
(i) the delivery method; or
(ii) whether the amount paid or charged for access provides a right to:
(A) single-use access to the digital audio-visual works, digital audio works, digital books, or gaming services; or
(B) access to the digital audio-visual works, digital audio works, digital books, or gaming services through a subscription, including a right that terminates upon the occurrence of a condition; and
(p) amounts paid or charged for the storage, use, or other consumption of:
(i) prewritten computer software delivered electronically or by load and leave; or
(ii) seller-hosted prewritten computer software.
(2)
(a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are imposed on a transaction described in Subsection (1) equal to the sum of:
(i) a state tax imposed on the transaction at a tax rate equal to the sum of:
(A) 4.70%;
(B) the rate specified in Subsection (6)(a); and
(C) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the transaction under this chapter other than this part.
(b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to the sum of:
(i) a state tax imposed on the transaction at a tax rate of 2%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the transaction under this chapter other than this part.
(c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are imposed on amounts paid or charged for food and food ingredients equal to the sum of:
(i) a state tax imposed on the amounts paid or charged for food and food ingredients at a tax rate of 1.75%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the amounts paid or charged for food and food ingredients under this chapter other than this part.
(d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at a rate equal to the sum of the rates described in Subsections (2)(a)(i)(A) and (2)(a)(i)(B).
(e)
(i)
(A) The rates described in Subsections (2)(a)(i)(A) and (2)(a)(i)(B) do not apply to car sharing, a car sharing program, a shared vehicle driver, or a shared vehicle owner, for a car sharing or shared vehicle transaction if a shared vehicle owner certifies to the commission, on a form prescribed by the commission, that the shared vehicle is an individual-owned shared vehicle.
(B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is required once during the time that the shared vehicle owner owns the shared vehicle.
(C) The commission shall verify that a shared vehicle is an individual-owned shared vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the purchase of the shared vehicle.
(D) The exception under Subsection (2)(e)(i)(A) applies to a certified individual-owned shared vehicle shared through a car-sharing program even if non-certified shared vehicles are also available to be shared through the same car-sharing program.
(ii) A tax imposed under Subsection (2)(a)(i)(C) or (2)(a)(ii) applies to car sharing.
(iii)
(A) A car-sharing program may rely in good faith on a shared vehicle owner's representation that the shared vehicle is an individual-owned shared vehicle certified with the commission as described in Subsection (2)(e)(i).
(B) If a car-sharing program relies in good faith on a shared vehicle owner's representation that the shared vehicle is an individual-owned shared vehicle certified with the commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any tax, penalty, fee, or other sanction imposed on the shared vehicle owner.
(iv) If all shared vehicles shared through a car-sharing program are certified as described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation to collect and remit the tax under Subsections (2)(a)(i)(A) and (2)(a)(i)(B) for that tax period.
(v) A car-sharing program is not required to list or otherwise identify an individual-owned shared vehicle on a return or an attachment to a return.
(vi) A car-sharing program shall:
(A) retain tax information for each car-sharing program transaction; and
(B) provide the information described in Subsection (2)(e)(vi)(A) to the commission at the commission's request.
(f)
(i) For a bundled transaction that is attributable to food and food ingredients and tangible personal property other than food and food ingredients, a state tax and a local tax is imposed on the entire bundled transaction equal to the sum of:
(A) the tax rates described in Subsection (2)(a)(i); and
(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates described in Subsection (2)(a)(ii).
(ii) If an optional computer software maintenance contract is a bundled transaction that consists of taxable and nontaxable products that are not separately itemized on an invoice or similar billing document, the purchase of the optional computer software maintenance contract is 40% taxable under this chapter and 60% nontaxable under this chapter.
(iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled transaction described in Subsection (2)(f)(i) or (ii):
(A) if the sales price of the bundled transaction is attributable to tangible personal property, a product, or a service that is subject to taxation under this chapter and tangible personal property, a product, or service that is not subject to taxation under this chapter, the entire bundled transaction is subject to taxation under this chapter unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is not subject to taxation under this chapter from the books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise; or
(B) if the sales price of a bundled transaction is attributable to two or more items of tangible personal property, products, or services that are subject to taxation under this chapter at different rates, the entire bundled transaction is subject to taxation under this chapter at the higher tax rate unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is subject to taxation under this chapter at the lower tax rate from the books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise.
(iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the seller's regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes.
(g)
(i) Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental of tangible personal property, other property, a product, or a service that is not subject to taxation under this chapter, the entire transaction is subject to taxation under this chapter unless the seller, at the time of the transaction:
(A) separately states the portion of the transaction that is not subject to taxation under this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards, from the books and records the seller keeps in the seller's regular course of business, the portion of the transaction that is not subject to taxation under this chapter.
(ii) A purchaser and a seller may correct the taxability of a transaction if:
(A) after the transaction occurs, the purchaser and the seller discover that the portion of the transaction that is not subject to taxation under this chapter was not separately stated on an invoice, bill of sale, or similar document provided to the purchaser because of an error or ignorance of the law; and
(B) the seller is able to identify by reasonable and verifiable standards, from the books and records the seller keeps in the seller's regular course of business, the portion of the transaction that is not subject to taxation under this chapter.
(iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller keeps in the seller's regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes.
(h)
(i) If the sales price of a transaction is attributable to two or more items of tangible personal property, products, or services that are subject to taxation under this chapter at different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate unless the seller, at the time of the transaction:
(A) separately states the items subject to taxation under this chapter at each of the different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is subject to taxation under this chapter at the lower tax rate from the books and records the seller keeps in the seller's regular course of business.
(ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the seller's regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes.
(i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax rate imposed under the following shall take effect on the first day of a calendar quarter:
(i) Subsection (2)(a)(i)(A);
(ii) Subsection (2)(a)(i)(B);
(iii) Subsection (2)(b)(i);
(iv) Subsection (2)(c)(i); or
(v) Subsection (2)(f)(i)(A).
(j)
(i) A tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the tax rate increase if the billing period for the transaction begins before the effective date of a tax rate increase imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(a)(i)(B);
(C) Subsection (2)(b)(i);
(D) Subsection (2)(c)(i); or
(E) Subsection (2)(f)(i)(A).
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax or the tax rate decrease imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(a)(i)(B);
(C) Subsection (2)(b)(i);
(D) Subsection (2)(c)(i); or
(E) Subsection (2)(f)(i)(A).
(k)
(i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or change in a tax rate takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
(ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(a)(i)(B);
(C) Subsection (2)(b)(i);
(D) Subsection (2)(c)(i); or
(E) Subsection (2)(f)(i)(A).
(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(l)
(i) For a location described in Subsection (2)(l)(ii), the commission shall determine the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
(ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil, or other fuel is furnished through a single meter for two or more of the following uses:
(A) a commercial use;
(B) an industrial use; or
(C) a residential use.
(3)
(a) The commission shall deposit the following state taxes into the General Fund:
(i) the tax imposed by Subsection (2)(a)(i)(A);
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i);
(iv) the tax imposed by Subsection (2)(d); and
(v) the tax imposed by Subsection (2)(f)(i)(A).
(b) The commission shall distribute the following local taxes to a county, city, or town as provided in this chapter:
(i) the tax imposed by Subsection (2)(a)(ii);
(ii) the tax imposed by Subsection (2)(b)(ii);
(iii) the tax imposed by Subsection (2)(c)(ii); and
(iv) the tax imposed by Subsection (2)(f)(i)(B).
(4)
(a) Notwithstanding Subsection (3)(a), for each fiscal year the commission shall make the deposits described in Subsections (4)(b) through (4)(i) from the revenue from the taxes imposed by:
(i) Subsection (2)(a)(i)(A);
(ii) Subsection (2)(b)(i);
(iii) Subsection (2)(c)(i); and
(iv) Subsection (2)(f)(i)(A).
(b) The commission shall deposit 15% of the difference between 1.4543% of the revenue described in Subsection (4)(a) and the deposits made under Subsection (5)(b), into the Water Rights Restricted Account created in Section 73-2-1.6.
(c) The commission shall deposit 85% of the difference between 1.4543% of the revenue described in Subsection (4)(a) and the deposits made under Subsection (5)(b), into the Water Resources Conservation and Development Fund created in Section 73-10-24 for use by the Division of Water Resources for:
(i) preconstruction costs:
(A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter 26, Bear River Development Act; and
(B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73, Chapter 26, Bear River Development Act;
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
(iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and Subsection (5)(b)(iv)(B) after funding the uses specified in Subsections (4)(c)(i) through (iii).
(d) The commission shall deposit 1.4543% of the revenue described in Subsection (4)(a) into the Water Infrastructure Restricted Account created in Section 73-10g-103.
(e)
(i) Subject to Subsection (4)(e)(ii), the commission shall deposit 26.24% of the revenue described in Subsection (4)(a) into the Transportation Investment Fund of 2005 created in Section 72-2-124.
(ii) The commission shall annually reduce the deposit described in Subsection (4)(e)(i) by the sum of:
(A) the earmark described in Subsection (5)(c);
(B) an amount equal to 35% of the revenue generated in the current fiscal year by the portion of the tax imposed on motor and special fuel that is sold, used, or received in the state that exceeds 29.4 cents per gallon; and
(C) $2,000,000.
(iii) The amount described in Subsection (4)(e)(ii)(B) shall be annually deposited into the Transit Transportation Investment Fund created in Section 72-2-124.
(iv) The amount described in Subsection (4)(e)(ii)(C) shall be annually deposited into the Wildlife Crossing Account created in Subsection 72-2-124(14).
(f) The commission shall deposit .44% of the revenue described in Subsection (4)(a) into the Cottonwood Canyons Transportation Investment Fund created in Section 72-2-124.
(g) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into the Commuter Rail Subaccount created in Section 72-2-124.
(h) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into the Outdoor Adventure Infrastructure Restricted Account created in Section 51-9-902 as follows:
(i) into the Outdoor Adventure Infrastructure Restricted Account created in Section 51-9-902, an amount equal to the amount that was deposited into the Outdoor Adventure Infrastructure Restricted Account in fiscal year 2025; and
(ii) for any amount exceeding the amount described in Subsection (4)(h)(i), 50% into the Outdoor Adventure Infrastructure Restricted Account and 50% to the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201.
(i)
(i) As used in this Subsection (4)(i):
(A) "Base year balance" means the amount of revenue described in Subsection (4)(a) that the commission deposits into the General Fund for the fiscal year beginning on July 1, 2027, after making all other deposits and transfers required under this section.
(B) "Current year balance" means the amount of revenue described in Subsection (4)(a) that the commission deposits into the General Fund for the current fiscal year, after making all other deposits and transfers required under this section.
(C) "Total transit amount" means the sum of the deposits made under Subsections (4)(e)(ii)(B) and (4)(g) for the current fiscal year.
(ii) For each fiscal year beginning on or after July 1, 2028, in which the current year balance exceeds the base year balance, the commission shall deposit into the Transit Transportation Investment Fund created in Section 72-2-124 an amount equal to the lesser of:
(A) 5% of the difference between the current year balance and the base year balance; and
(B) the total transit amount.
(5)
(a) Notwithstanding Subsection (3)(a), each fiscal year the commission shall make the deposits described in this Subsection (5).
(b)
(i)
(A) The commission shall deposit $500,000 to the Department of Natural Resources to be used for watershed rehabilitation or restoration.
(B) At the end of each fiscal year, 100% of any unexpended amount described in Subsection (5)(b)(i)(A) shall lapse into the Water Resources Conservation and Development Fund created in Section 73-10-24.
(ii) The commission shall deposit $150,000 to the Division of Water Resources for cloud-seeding projects authorized by Title 73, Chapter 15, Modification of Weather.
(iii) The commission shall deposit $525,000 into the Division of Conservation created in Section 4-46-401 to implement water related programs.
(iv) The commission shall deposit $7,175,000 into the Water Resources Conservation and Development Fund created in Section 73-10-24 for use by the Division of Water Resources:
(A) for the uses allowed of the Water Resources Conservation and Development Fund under Section 73-10-24;
(B) to conduct hydrologic and geotechnical investigations by the Division of Water Resources in a cooperative effort with other state, federal, or local entities, for the purpose of quantifying surface and ground water resources and describing the hydrologic systems of an area in sufficient detail so as to enable local and state resource managers to plan for and accommodate growth in water use without jeopardizing the resource;
(C) to fund state required dam safety improvements; and
(D) to protect the state's interest in interstate water compact allocations, including the hiring of technical and legal staff.
(v) The commission shall deposit $3,587,500 into the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
(vi) The commission shall deposit $3,587,500 into the Drinking Water Loan Program Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water to:
(A) provide for the installation and repair of collection, treatment, storage, and distribution facilities for any public water system, as defined in Section 19-4-102;
(B) develop underground sources of water, including springs and wells; and
(C) develop surface water sources.
(vii) The commission shall deposit $2,450,000 to the Division of Wildlife Resources to:
(A) implement the measures described in Subsections 23A-3-214(3)(a) through (d) to protect sensitive plant and animal species; or
(B) award grants, up to the amount authorized by the Legislature in an appropriations act, to political subdivisions of the state to implement the measures described in Subsections 23A-3-214(3)(a) through (d) to protect sensitive plant and animal species.
(viii) Funds transferred to the Division of Wildlife Resources under Subsection (5)(b)(vii)(A) may not be used to assist the United States Fish and Wildlife Service or any other person to list or attempt to have listed a species as threatened or endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531, et seq.
(ix) At the end of each fiscal year, any unexpended amounts described in Subsections (5)(b)(vii)(A) and (B) shall lapse:
(A) 50% into the Water Resources Conservation and Development Fund created in Section 73-10-24;
(B) 25% into the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
(C) 25% into the Drinking Water Loan Program Subaccount created in Section 73-10c-5.
(x) The commission shall allocate $175,000 to the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of water rights.
(xi) At the end of each fiscal year, any unexpended amounts described in Subsection (5)(b)(x) shall lapse:
(A) 50% into the Water Resources Conservation and Development Fund created in Section 73-10-24;
(B) 25% into the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
(C) 25% into the Drinking Water Loan Program Subaccount created in Section 73-10c-5.
(c) The commission shall deposit $45,000,000 into the Active Transportation Investment Fund created in Section 72-2-124.
(d) The commission shall deposit $533,750 into the Qualified Emergency Food Agencies Fund created by and expended in accordance with Section 35A-8-1009.
(e) The commission shall deposit $200,000 into the General Fund as a dedicated credit for the sole use of the Search and Rescue Financial Assistance Program created by and to be expended in accordance with Title 53, Chapter 2a, Part 11, Search and Rescue Act.
(6)
(a) The rate specified in this Subsection (6) is 0.15%.
(b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the rate described in Subsection (6)(a) on the transactions that are subject to the sales and use tax under Subsection (2)(a)(i)(B) into the Medicaid ACA Fund created in Section 26B-1-315.
(7)
(a) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12), and (13), and as described in Section 63N-23-206, beginning the first day of a calendar quarter one year after the sales and use tax boundary for a housing and transit reinvestment zone is established under Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, the commission, at least annually, shall transfer an amount equal to 15% of the sales and use tax increment from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within an established sales and use tax boundary, as defined in Section 63N-23-101, into the Transit Transportation Investment Fund created in Section 72-2-124.
(b) Beginning no sooner than January 1, 2026, notwithstanding Subsection (3)(a), and except as provided in Subsections (11), (12), and (13), and as described in Section 63N-3-406, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established in a capital city under Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, the commission, at least annually, shall transfer an amount equal to 50% of the sales and use tax increment as defined in Section 63N-23-101 from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within an established sales and use tax boundary, as defined in Section 63N-23-101, to a convention center public infrastructure district created in accordance with Section 17D-4-202.1 and specified in the convention center reinvestment zone proposal submitted in accordance with Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City.
(8) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12), and (13), beginning October 1, 2024, the commission shall transfer to the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A), on transactions occurring within the district sales tax area, as defined in Section 11-70-101.
(9)
(a) As used in this Subsection (9):
(i) "Additional land" means point of the mountain state land described in Subsection 11-59-102(6)(b) that the point of the mountain authority acquires after the point of the mountain authority provides the commission a map under Subsection (9)(c).
(ii) "Point of the mountain authority" means the Point of the Mountain State Land Authority, created in Section 11-59-201.
(iii) "Point of the mountain state land" means the same as that term is defined in Section 11-59-102.
(b) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12), and (13), the commission shall distribute to the point of the mountain authority 25% of the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A), on transactions occurring on the point of the mountain state land.
(c) The distribution under Subsection (9)(b) shall begin the next calendar quarter that begins at least 90 days after the point of the mountain authority provides the commission a map that:
(i) accurately describes the point of the mountain state land; and
(ii) the point of the mountain authority certifies as accurate.
(d) A distribution under Subsection (9)(b) with respect to additional land shall begin the next calendar quarter that begins at least 90 days after the point of the mountain authority provides the commission a map of point of the mountain state land that:
(i) accurately describes the point of the mountain state land, including the additional land; and
(ii) the point of the mountain authority certifies as accurate.
(e)
(i) Upon the payment in full of bonds secured by the sales and use tax revenue distributed to the point of the mountain authority under Subsection (9)(b), the point of the mountain authority shall immediately notify the commission in writing that the bonds are paid in full.
(ii) The commission shall discontinue distributions of sales and use tax revenue under Subsection (9)(b) at the beginning of the calendar quarter that begins at least 90 days after the date that the commission receives the written notice under Subsection (9)(e)(i).
(10) Notwithstanding Subsection (3)(a), the amount of state sales tax revenues described in Section 63N-2-503.5 is deposited into the Convention Incentive Fund created in Section 63N-2-503.5.
(11)
(a) As used in this Subsection (11):
(i) "Applicable percentage" means:
(A) for a housing and transit reinvestment zone created under Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, 15% of the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (11)(a)(ii)(A);
(B) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (11)(a)(ii)(B); and
(C) for the Point of the Mountain State Land Authority created in Section 11-59-201, 25% of the revenue from sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (11)(a)(ii)(C).
(ii) "Qualified development zone" means:
(A) the sales and use tax boundary of a housing and transit reinvestment zone created under Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone;
(B) the district sales tax boundary as defined in Section 11-70-101 for the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201; or
(C) the sales and use tax boundary of point of the mountain state land, as defined in Section 11-59-102, under the Point of the Mountain State Land Authority created in Section 11-59-201.
(iii) "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J or a substantially similar form as designated by the commission.
(b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be deposited into the General Fund.
(12)
(a) As used in Subsections (12) and (13):
(i) "Applicable percentage" means, for a convention center reinvestment zone created in a capital city under Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, an amount equal to 50% of the sales and use tax increment, as that term is defined in Section 63N-23-101, from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (12)(a)(ii).
(ii) "Qualified development zone" means the sales and use tax boundary of a convention center reinvestment zone created in a capital city under Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City.
(iii) "Qualifying construction materials" means construction materials that are:
(A) delivered to a delivery outlet within a qualified development zone; and
(B) intended to be permanently attached to real property within the qualified development zone.
(b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (12)(c) to a qualified development zone if the seller of the construction materials:
(i) establishes a delivery outlet with the commission within the qualified development zone;
(ii) reports the sales of the construction materials to the delivery outlet described in Subsection (12)(b)(i); and
(iii) does not report the sales of the construction materials on a simplified electronic return.
(c) For the purposes of Subsection (12)(b), the product is equal to:
(i) the sales price or purchase price of the qualifying construction materials; and
(ii) the applicable percentage.
(13)
(a) As used in this Subsection (13), "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J, or a substantially similar form as designated by the commission.
(b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed into the General Fund.
Exemptions from the taxes imposed by this chapter are as follows:
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax under Chapter 13, Motor and Special Fuel Tax Act;
(2) subject to Section 59-12-104.6, sales to the state, the state's institutions, and the state's political subdivisions, however, this exemption does not apply to sales of:
(a) construction materials except:
(i) construction materials purchased by or on behalf of institutions of the public education system as defined in Utah Constitution, Article X, Section 2, provided the construction materials are clearly identified and segregated and installed or converted to real property which is owned by institutions of the public education system;
(ii) construction materials purchased by the state, its institutions, or its political subdivisions which are installed or converted to real property by employees of the state, its institutions, or its political subdivisions; and
(iii) construction materials purchased by or on behalf of the Department of Transportation as part of a fixed guideway capital development project for which the department has oversight and supervision as described in Section 72-1-203; or
(b) tangible personal property in connection with the construction, operation, maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities providing additional project capacity, as defined in Section 11-13-103;
(3)
(a) sales of an item described in Subsection (3)(b) from a vending machine if:
(i) the proceeds of each sale do not exceed $1; and
(ii) the seller or operator of the vending machine reports an amount equal to 150% of the cost of the item described in Subsection (3)(b) as goods consumed; and
(b) Subsection (3)(a) applies to:
(i) food and food ingredients; or
(ii) prepared food;
(4)
(a) sales of the following to a commercial airline carrier for in-flight consumption:
(i) alcoholic beverages;
(ii) food and food ingredients; or
(iii) prepared food;
(b) sales of tangible personal property or a product transferred electronically:
(i) to a passenger;
(ii) by a commercial airline carrier; and
(iii) during a flight for in-flight consumption or in-flight use by the passenger; or
(c) services related to Subsection (4)(a) or (b);
(5) sales of parts and equipment for installation in an aircraft operated by a common carrier in interstate or foreign commerce;
(6) sales of commercials, motion picture films, prerecorded audio program tapes or records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture exhibitor, distributor, or commercial television or radio broadcaster;
(7)
(a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of cleaning or washing of tangible personal property if the cleaning or washing of the tangible personal property is not assisted cleaning or washing of tangible personal property;
(b) if a seller that sells at the same business location assisted cleaning or washing of tangible personal property and cleaning or washing of tangible personal property that is not assisted cleaning or washing of tangible personal property, the exemption described in Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning or washing of the tangible personal property; and
(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(i) governing the circumstances under which sales are at the same business location; and
(ii) establishing the procedures and requirements for a seller to separately account for sales of assisted cleaning or washing of tangible personal property;
(8) sales made to or by religious or charitable institutions in the conduct of their regular religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are fulfilled;
(9) sales of a vehicle of a type required to be registered under the motor vehicle laws of this state if:
(a) the sale is not from the vehicle's lessor to the vehicle's lessee;
(b) the vehicle is not registered in this state; and
(c)
(i) the vehicle is not used in this state; or
(ii) the vehicle is used in this state:
(A) if the vehicle is not used to conduct business, for a time period that does not exceed the longer of:
(I) 30 days in any calendar year; or
(II) the time period necessary to transport the vehicle to the borders of this state; or
(B) if the vehicle is used to conduct business, for the time period necessary to transport the vehicle to the borders of this state;
(10)
(a) amounts paid for an item described in Subsection (10)(b) if:
(i) the item is intended for human use; and
(ii)
(A) a prescription was issued for the item; or
(B) the item was purchased by a hospital or other medical facility; and
(b)
(i) Subsection (10)(a) applies to:
(A) a drug;
(B) a syringe; or
(C) a stoma supply; and
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the terms:
(A) "syringe"; or
(B) "stoma supply";
(11) purchases or leases exempt under Section 19-12-201;
(12)
(a) sales of an item described in Subsection (12)(c) served by:
(i) the following if the item described in Subsection (12)(c) is not available to the general public:
(A) a church; or
(B) a charitable institution; or
(ii) an institution of higher education if:
(A) the item described in Subsection (12)(c) is not available to the general public; or
(B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan offered by the institution of higher education;
(b) sales of an item described in Subsection (12)(c) provided for a patient by:
(i) a medical facility; or
(ii) a nursing facility; and
(c) Subsections (12)(a) and (b) apply to:
(i) food and food ingredients;
(ii) prepared food; or
(iii) alcoholic beverages;
(13)
(a) except as provided in Subsection (13)(b), the sale of tangible personal property or a product transferred electronically by a person:
(i) regardless of the number of transactions involving the sale of that tangible personal property or product transferred electronically by that person; and
(ii) not regularly engaged in the business of selling that type of tangible personal property or product transferred electronically;
(b) this Subsection (13) does not apply if:
(i) the sale is one of a series of sales of a character to indicate that the person is regularly engaged in the business of selling that type of tangible personal property or product transferred electronically;
(ii) the person holds that person out as regularly engaged in the business of selling that type of tangible personal property or product transferred electronically;
(iii) the person sells an item of tangible personal property or product transferred electronically that the person purchased as a sale that is exempt under Subsection (25); or
(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of this state in which case the tax is based upon:
(A) the bill of sale, lease agreement, or other written evidence of value of the vehicle or vessel being sold; or
(B) in the absence of a bill of sale, lease agreement, or other written evidence of value, the fair market value of the vehicle or vessel being sold at the time of the sale as determined by the commission; and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules establishing the circumstances under which:
(i) a person is regularly engaged in the business of selling a type of tangible personal property or product transferred electronically;
(ii) a sale of tangible personal property or a product transferred electronically is one of a series of sales of a character to indicate that a person is regularly engaged in the business of selling that type of tangible personal property or product transferred electronically; or
(iii) a person holds that person out as regularly engaged in the business of selling a type of tangible personal property or product transferred electronically;
(14) amounts paid or charged for a purchase or lease of machinery, equipment, normal operating repair or replacement parts, or materials, except for office equipment or office supplies, by:
(a) a manufacturing facility that:
(i) is located in the state; and
(ii) uses or consumes the machinery, equipment, normal operating repair or replacement parts, or materials:
(A) in the manufacturing process to manufacture an item sold as tangible personal property, as the commission may define that phrase in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
(B) for a scrap recycler, to process an item sold as tangible personal property, as the commission may define that phrase in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) an establishment, as the commission defines that term in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
(i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the 2002 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(ii) is located in the state; and
(iii) uses or consumes the machinery, equipment, normal operating repair or replacement parts, or materials in:
(A) the production process to produce an item sold as tangible personal property, as the commission may define that phrase in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(B) research and development, as the commission may define that phrase in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(C) transporting, storing, or managing tailings, overburden, or similar waste materials produced from mining;
(D) developing or maintaining a road, tunnel, excavation, or similar feature used in mining; or
(E) preventing, controlling, or reducing dust or other pollutants from mining; or
(c) an establishment, as the commission defines that term in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
(i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(ii) is located in the state; and
(iii) uses or consumes the machinery, equipment, normal operating repair or replacement parts, or materials in the operation of the web search portal;
(15)
(a) sales of the following if the requirements of Subsection (15)(b) are met:
(i) tooling;
(ii) special tooling;
(iii) support equipment;
(iv) special test equipment; or
(v) parts used in the repairs or renovations of tooling or equipment described in Subsections (15)(a)(i) through (iv); and
(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
(i) the tooling, equipment, or parts are used or consumed exclusively in the performance of any aerospace or electronics industry contract with the United States government or any subcontract under that contract; and
(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i), title to the tooling, equipment, or parts is vested in the United States government as evidenced by:
(A) a government identification tag placed on the tooling, equipment, or parts; or
(B) listing on a government-approved property record if placing a government identification tag on the tooling, equipment, or parts is impractical;
(16) sales of newspapers or newspaper subscriptions;
(17)
(a) except as provided in Subsection (17)(b), tangible personal property or a product transferred electronically traded in as full or part payment of the purchase price, except that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
(i) the bill of sale or other written evidence of value of the vehicle being sold and the vehicle being traded in; or
(ii) in the absence of a bill of sale or other written evidence of value, the then existing fair market value of the vehicle being sold and the vehicle being traded in, as determined by the commission; and
(b) Subsection (17)(a) does not apply to the following items of tangible personal property or products transferred electronically traded in as full or part payment of the purchase price:
(i) money;
(ii) electricity;
(iii) water;
(iv) gas; or
(v) steam;
(18)
(a)
(i) except as provided in Subsection (18)(b), sales of tangible personal property or a product transferred electronically used or consumed primarily and directly in farming operations, regardless of whether the tangible personal property or product transferred electronically:
(A) becomes part of real estate; or
(B) is installed by a farmer, contractor, or subcontractor; or
(ii) sales of parts used in the repairs or renovations of tangible personal property or a product transferred electronically if the tangible personal property or product transferred electronically is exempt under Subsection (18)(a)(i); and
(b) amounts paid or charged for the following are subject to the taxes imposed by this chapter:
(i)
(A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or supplies if used in a manner that is incidental to farming; and
(B) tangible personal property that is considered to be used in a manner that is incidental to farming includes:
(I) hand tools; or
(II) maintenance and janitorial equipment and supplies;
(ii)
(A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product transferred electronically if the tangible personal property or product transferred electronically is used in an activity other than farming; and
(B) tangible personal property or a product transferred electronically that is considered to be used in an activity other than farming includes:
(I) office equipment and supplies; or
(II) equipment and supplies used in:
(Aa) the sale or distribution of farm products;
(Bb) research; or
(Cc) transportation; or
(iii) a vehicle required to be registered by the laws of this state during the period ending two years after the date of the vehicle's purchase;
(19) sales of hay;
(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or garden, farm, or other agricultural produce is sold by:
(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other agricultural produce;
(b) an employee of the producer described in Subsection (20)(a); or
(c) a member of the immediate family of the producer described in Subsection (20)(a);
(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags, nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor, wholesaler, or retailer for use in packaging tangible personal property to be sold by that manufacturer, processor, wholesaler, or retailer;
(23) a product stored in the state for resale;
(24)
(a) purchases of a product if:
(i) the product is:
(A) purchased outside of this state;
(B) brought into this state:
(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
(II) by a nonresident person who is not living or working in this state at the time of the purchase;
(C) used for the personal use or enjoyment of the nonresident person described in Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
(D) not used in conducting business in this state; and
(ii) for:
(A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of the product for a purpose for which the product is designed occurs outside of this state;
(B) a boat, the boat is registered outside of this state; or
(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered outside of this state;
(b) the exemption provided for in Subsection (24)(a) does not apply to:
(i) a lease or rental of a product; or
(ii) a sale of a vehicle exempt under Subsection (33); and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for purposes of Subsection (24)(a), the commission may by rule define what constitutes the following:
(i) conducting business in this state if that phrase has the same meaning in this Subsection (24) as in Subsection (63);
(ii) the first use of a product if that phrase has the same meaning in this Subsection (24) as in Subsection (63); or
(iii) a purpose for which a product is designed if that phrase has the same meaning in this Subsection (24) as in Subsection (63);
(25) a product purchased for resale in the regular course of business, either in the product's original form or as an ingredient or component part of a manufactured or compounded product;
(26) a product upon which a sales or use tax was paid to some other state, or one of another state's subdivisions, except that the state shall be paid any difference between the tax paid and the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax Act;
(27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person for use in compounding a service taxable under the subsections;
(28) purchases made in accordance with the special supplemental nutrition program for women, infants, and children established in 42 U.S.C. Sec. 1786;
(29) sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of the President, Office of Management and Budget;
(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
(a) not registered in this state; and
(b)
(i) not used in this state; or
(ii) used in this state:
(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a time period that does not exceed the longer of:
(I) 30 days in any calendar year; or
(II) the time period necessary to transport the boat, boat trailer, or outboard motor to the borders of this state; or
(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time period necessary to transport the boat, boat trailer, or outboard motor to the borders of this state;
(31) sales of aircraft manufactured in Utah;
(32) amounts paid for the purchase of telecommunications service for purposes of providing telecommunications service;
(33) sales, leases, or uses of the following:
(a) a vehicle by an authorized carrier; or
(b) tangible personal property that is installed on a vehicle:
(i) sold or leased to or used by an authorized carrier; and
(ii) before the vehicle is placed in service for the first time;
(34)
(a) 45% of the sales price of any new manufactured home; and
(b) 100% of the sales price of any used manufactured home;
(35) sales relating to schools and fundraising sales;
(36) sales or rentals of durable medical equipment if:
(a) a person presents a prescription for the durable medical equipment; and
(b) the durable medical equipment is used for home use only;
(37)
(a) sales to a ski resort of electricity to operate a passenger ropeway as defined in Section 72-11-102; and
(b) the commission shall by rule determine the method for calculating sales exempt under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
(38) sales to a ski resort of:
(a) snowmaking equipment;
(b) ski slope grooming equipment;
(c) passenger ropeways as defined in Section 72-11-102; or
(d) parts used in the repairs or renovations of equipment or passenger ropeways described in Subsections (38)(a) through (c);
(39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
(40)
(a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for amusement, entertainment, or recreation an unassisted amusement device as defined in Section 59-12-102;
(b) if a seller that sells or rents at the same business location the right to use or operate for amusement, entertainment, or recreation one or more unassisted amusement devices and one or more assisted amusement devices, the exemption described in Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for the assisted amusement devices; and
(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(i) governing the circumstances under which sales are at the same business location; and
(ii) establishing the procedures and requirements for a seller to separately account for the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for assisted amusement devices;
(41)
(a) sales of photocopies by:
(i) a governmental entity; or
(ii) an entity within the state system of public education, including:
(A) a school; or
(B) the State Board of Education; or
(b) sales of publications by a governmental entity;
(42) amounts paid for admission to an athletic event at an institution of higher education that is subject to the provisions of Title IX of the Education Amendments of 1972, 20 U.S.C. Sec. 1681 et seq.;
(43)
(a) sales made to or by:
(i) an area agency on aging; or
(ii) a senior citizen center owned by a county, city, or town; or
(b) sales made by a senior citizen center that contracts with an area agency on aging;
(44) sales or leases of semiconductor fabricating, processing, research, or development materials regardless of whether the semiconductor fabricating, processing, research, or development materials:
(a) actually come into contact with a semiconductor; or
(b) ultimately become incorporated into real property;
(45) an amount paid by or charged to a purchaser for accommodations and services described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under Section 59-12-104.2;
(46) the lease or use of a vehicle issued a temporary sports event registration certificate in accordance with Section 41-3-306 for the event period specified on the temporary sports event registration certificate;
(47)
(a) sales or uses of electricity, if the sales or uses are made under a retail tariff adopted by the Public Service Commission only for purchase of electricity produced from a new alternative energy source built after January 1, 2016, as designated in the tariff by the Public Service Commission; and
(b) for a residential use customer only, the exemption under Subsection (47)(a) applies only to the portion of the tariff rate a customer pays under the tariff described in Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection (47)(a) that the customer would have paid absent the tariff;
(48) sales or rentals of mobility enhancing equipment if a person presents a prescription for the mobility enhancing equipment;
(49) sales of water in a:
(a) pipe;
(b) conduit;
(c) ditch; or
(d) reservoir;
(50) sales of currency or coins that constitute legal tender of a state, the United States, or a foreign nation;
(51)
(a) sales of an item described in Subsection (51)(b) if the item:
(i) does not constitute legal tender of a state, the United States, or a foreign nation; and
(ii) has a gold, silver, or platinum content of 50% or more; and
(b) Subsection (51)(a) applies to a gold, silver, or platinum:
(i) ingot;
(ii) bar;
(iii) medallion; or
(iv) decorative coin;
(52) amounts paid on a sale-leaseback transaction;
(53) sales of a prosthetic device:
(a) for use on or in a human; and
(b)
(i) for which a prescription is required; or
(ii) if the prosthetic device is purchased by a hospital or other medical facility;
(54)
(a) except as provided in Subsection (54)(b), purchases, leases, or rentals of machinery or equipment by an establishment described in Subsection (54)(c) if the machinery or equipment is primarily used in the production or postproduction of the following media for commercial distribution:
(i) a motion picture;
(ii) a television program;
(iii) a movie made for television;
(iv) a music video;
(v) a commercial;
(vi) a documentary; or
(vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the commission by administrative rule made in accordance with Subsection (54)(d);
(b) purchases, leases, or rentals of machinery or equipment by an establishment described in Subsection (54)(c) that is used for the production or postproduction of the following are subject to the taxes imposed by this chapter:
(i) a live musical performance;
(ii) a live news program; or
(iii) a live sporting event;
(c) the following establishments listed in the 1997 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, apply to Subsections (54)(a) and (b):
(i) NAICS Code 512110; or
(ii) NAICS Code 51219; and
(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule:
(i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi); or
(ii) define:
(A) "commercial distribution";
(B) "live musical performance";
(C) "live news program"; or
(D) "live sporting event";
(55)
(a) leases of seven or more years or purchases made on or after July 1, 2004, but on or before June 30, 2027, of tangible personal property that:
(i) is leased or purchased for or by a facility that:
(A) is an alternative energy electricity production facility;
(B) is located in the state; and
(C)
(I) becomes operational on or after July 1, 2004; or
(II) has its generation capacity increased by one or more megawatts on or after July 1, 2004, as a result of the use of the tangible personal property;
(ii) has an economic life of five or more years; and
(iii) is used to make the facility or the increase in capacity of the facility described in Subsection (55)(a)(i) operational up to the point of interconnection with an existing transmission grid including:
(A) a wind turbine;
(B) generating equipment;
(C) a control and monitoring system;
(D) a power line;
(E) substation equipment;
(F) lighting;
(G) fencing;
(H) pipes; or
(I) other equipment used for locating a power line or pole; and
(b) this Subsection (55) does not apply to:
(i) tangible personal property used in construction of:
(A) a new alternative energy electricity production facility; or
(B) the increase in the capacity of an alternative energy electricity production facility;
(ii) contracted services required for construction and routine maintenance activities; and
(iii) unless the tangible personal property is used or acquired for an increase in capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or acquired after:
(A) the alternative energy electricity production facility described in Subsection (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
(B) the increased capacity described in Subsection (55)(a)(i) is operational as described in Subsection (55)(a)(iii);
(56)
(a) leases of seven or more years or purchases made on or after July 1, 2004, but on or before June 30, 2027, of tangible personal property that:
(i) is leased or purchased for or by a facility that:
(A) is a waste energy production facility;
(B) is located in the state; and
(C)
(I) becomes operational on or after July 1, 2004; or
(II) has its generation capacity increased by one or more megawatts on or after July 1, 2004, as a result of the use of the tangible personal property;
(ii) has an economic life of five or more years; and
(iii) is used to make the facility or the increase in capacity of the facility described in Subsection (56)(a)(i) operational up to the point of interconnection with an existing transmission grid including:
(A) generating equipment;
(B) a control and monitoring system;
(C) a power line;
(D) substation equipment;
(E) lighting;
(F) fencing;
(G) pipes; or
(H) other equipment used for locating a power line or pole; and
(b) this Subsection (56) does not apply to:
(i) tangible personal property used in construction of:
(A) a new waste energy facility; or
(B) the increase in the capacity of a waste energy facility;
(ii) contracted services required for construction and routine maintenance activities; and
(iii) unless the tangible personal property is used or acquired for an increase in capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
(A) the waste energy facility described in Subsection (56)(a)(i) is operational as described in Subsection (56)(a)(iii); or
(B) the increased capacity described in Subsection (56)(a)(i) is operational as described in Subsection (56)(a)(iii);
(57)
(a) leases of five or more years or purchases made on or after July 1, 2004, but on or before June 30, 2027, of tangible personal property that:
(i) is leased or purchased for or by a facility that:
(A) is located in the state;
(B) produces fuel from alternative energy, including:
(I) methanol; or
(II) ethanol; and
(C)
(I) becomes operational on or after July 1, 2004; or
(II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as a result of the installation of the tangible personal property;
(ii) has an economic life of five or more years; and
(iii) is installed on the facility described in Subsection (57)(a)(i);
(b) this Subsection (57) does not apply to:
(i) tangible personal property used in construction of:
(A) a new facility described in Subsection (57)(a)(i); or
(B) the increase in capacity of the facility described in Subsection (57)(a)(i);
(ii) contracted services required for construction and routine maintenance activities; and
(iii) unless the tangible personal property is used or acquired for an increase in capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
(A) the facility described in Subsection (57)(a)(i) is operational; or
(B) the increased capacity described in Subsection (57)(a)(i) is operational;
(58)
(a) subject to Subsection (58)(b), sales of tangible personal property or a product transferred electronically to a person within this state if that tangible personal property or product transferred electronically is subsequently shipped outside the state and incorporated in accordance with contract into and becomes a part of real property located outside of this state; and
(b) the exemption under Subsection (58)(a) is not allowed to the extent that the other state or political entity to which the tangible personal property is shipped imposes a sales, use, gross receipts, or other similar transaction excise tax on the transaction against which the other state or political entity allows a credit for sales and use taxes imposed by this chapter;
(59) purchases:
(a) of one or more of the following items in printed or electronic format:
(i) a list containing information that includes one or more:
(A) names; or
(B) addresses; or
(ii) a database containing information that includes one or more:
(A) names; or
(B) addresses; and
(b) used to send direct mail;
(60) redemptions or repurchases of a product by a person if that product was:
(a) delivered to a pawnbroker as part of a pawn transaction; and
(b) redeemed or repurchased within the time period established in a written agreement between the person and the pawnbroker for redeeming or repurchasing the product;
(61)
(a) purchases or leases of an item described in Subsection (61)(b) if the item:
(i) is purchased or leased by, or on behalf of, a telecommunications service provider; and
(ii) has a useful economic life of one or more years; and
(b) the following apply to Subsection (61)(a):
(i) telecommunications enabling or facilitating equipment, machinery, or software;
(ii) telecommunications equipment, machinery, or software required for 911 service;
(iii) telecommunications maintenance or repair equipment, machinery, or software;
(iv) telecommunications switching or routing equipment, machinery, or software; or
(v) telecommunications transmission equipment, machinery, or software;
(62)
(a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible personal property or a product transferred electronically that are used in the research and development of alternative energy technology; and
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may, for purposes of Subsection (62)(a), make rules defining what constitutes purchases of tangible personal property or a product transferred electronically that are used in the research and development of alternative energy technology;
(63)
(a) purchases of tangible personal property or a product transferred electronically if:
(i) the tangible personal property or product transferred electronically is:
(A) purchased outside of this state;
(B) brought into this state at any time after the purchase described in Subsection (63)(a)(i)(A); and
(C) used in conducting business in this state; and
(ii) for:
(A) tangible personal property or a product transferred electronically other than the tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property for a purpose for which the property is designed occurs outside of this state; or
(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered outside of this state and not required to be registered in this state under Section 41-1a-202 or 73-18-9 based on residency;
(b) the exemption provided for in Subsection (63)(a) does not apply to:
(i) a lease or rental of tangible personal property or a product transferred electronically; or
(ii) a sale of a vehicle exempt under Subsection (33); and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for purposes of Subsection (63)(a), the commission may by rule define what constitutes the following:
(i) conducting business in this state if that phrase has the same meaning in this Subsection (63) as in Subsection (24);
(ii) the first use of tangible personal property or a product transferred electronically if that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
(iii) a purpose for which tangible personal property or a product transferred electronically is designed if that phrase has the same meaning in this Subsection (63) as in Subsection (24);
(64) sales of disposable home medical equipment or supplies if:
(a) a person presents a prescription for the disposable home medical equipment or supplies;
(b) the disposable home medical equipment or supplies are used exclusively by the person to whom the prescription described in Subsection (64)(a) is issued; and
(c) the disposable home medical equipment and supplies are listed as eligible for payment under:
(i) Title XVIII, federal Social Security Act; or
(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
(65) sales:
(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District Act; or
(b) of tangible personal property to a subcontractor of a public transit district, if the tangible personal property is:
(i) clearly identified; and
(ii) installed or converted to real property owned by the public transit district;
(66) sales of construction materials:
(a) purchased on or after July 1, 2010;
(b) purchased by, on behalf of, or for the benefit of an international airport:
(i) located within a county of the first class; and
(ii) that has a United States customs office on its premises; and
(c) if the construction materials are:
(i) clearly identified;
(ii) segregated; and
(iii) installed or converted to real property:
(A) owned or operated by the international airport described in Subsection (66)(b); and
(B) located at the international airport described in Subsection (66)(b);
(67) sales of construction materials:
(a) purchased on or after July 1, 2008;
(b) purchased by, on behalf of, or for the benefit of a new airport:
(i) located within a county of the second or third class, as classified in Section 17-60-104; and
(ii) that is owned or operated by a city in which an airline as defined in Section 59-2-102 is headquartered; and
(c) if the construction materials are:
(i) clearly identified;
(ii) segregated; and
(iii) installed or converted to real property:
(A) owned or operated by the new airport described in Subsection (67)(b);
(B) located at the new airport described in Subsection (67)(b); and
(C) as part of the construction of the new airport described in Subsection (67)(b);
(68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
(69) purchases and sales described in Section 63H-4-111;
(70)
(a) sales of tangible personal property to an aircraft maintenance, repair, and overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration lists a state or country other than this state as the location of registry of the fixed wing turbine powered aircraft; or
(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration lists a state or country other than this state as the location of registry of the fixed wing turbine powered aircraft;
(71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
(a) to a person admitted to an institution of higher education; and
(b) by a seller, other than a bookstore owned by an institution of higher education, if 51% or more of that seller's sales revenue for the previous calendar quarter are sales of a textbook for a higher education course;
(72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5) on a purchaser from a business for which the municipality provides an enhanced level of municipal services;
(73) amounts paid or charged for construction materials used in the construction of a new or expanding life science research and development facility in the state, if the construction materials are:
(a) clearly identified;
(b) segregated; and
(c) installed or converted to real property;
(74) amounts paid or charged for:
(a) a purchase or lease of machinery and equipment that:
(i) are used in performing qualified research:
(A) as defined in Section 41(d), Internal Revenue Code; and
(B) in the state; and
(ii) have an economic life of three or more years; and
(b) normal operating repair or replacement parts:
(i) for the machinery and equipment described in Subsection (74)(a); and
(ii) that have an economic life of three or more years;
(75) a sale or lease of tangible personal property used in the preparation of prepared food if:
(a) for a sale:
(i) the ownership of the seller and the ownership of the purchaser are identical; and
(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that tangible personal property before making the sale; or
(b) for a lease:
(i) the ownership of the lessor and the ownership of the lessee are identical; and
(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible personal property before making the lease;
(76)
(a) purchases of machinery or equipment if:
(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement, Gambling, and Recreation Industries, of the 2012 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(ii) the machinery or equipment:
(A) has an economic life of three or more years; and
(B) is used by one or more persons who pay admission or user fees described in Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment; and
(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
(A) amounts paid or charged as admission or user fees described in Subsection 59-12-103(1)(f); and
(B) subject to taxation under this chapter; and
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for verifying that 51% of a purchaser's sales revenue for the previous calendar quarter is:
(i) amounts paid or charged as admission or user fees described in Subsection 59-12-103(1)(f); and
(ii) subject to taxation under this chapter;
(77) purchases of a short-term lodging consumable by a business that provides accommodations and services described in Subsection 59-12-103(1)(i);
(78) amounts paid or charged to access a database:
(a) if the primary purpose for accessing the database is to view or retrieve information from the database; and
(b) not including amounts paid or charged for a:
(i) digital audio work;
(ii) digital audio-visual work; or
(iii) digital book;
(79) amounts paid or charged for a purchase or lease made by an electronic financial payment service, of:
(a) machinery and equipment that:
(i) are used in the operation of the electronic financial payment service; and
(ii) have an economic life of three or more years; and
(b) normal operating repair or replacement parts that:
(i) are used in the operation of the electronic financial payment service; and
(ii) have an economic life of three or more years;
(80) sales of a fuel cell as defined in Section 54-15-102;
(81) amounts paid or charged for a purchase or lease of tangible personal property or a product transferred electronically if the tangible personal property or product transferred electronically:
(a) is stored, used, or consumed in the state; and
(b) is temporarily brought into the state from another state:
(i) during a disaster period as defined in Section 53-2a-1202;
(ii) by an out-of-state business as defined in Section 53-2a-1202;
(iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
(iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
(82) sales of goods and services at a morale, welfare, and recreation facility, as defined in Section 39A-7-102, made in accordance with Title 39A, Chapter 7, Morale, Welfare, and Recreation Program;
(83) amounts paid or charged for a purchase or lease of molten magnesium;
(84) amounts paid or charged for a purchase or lease made by a qualifying data center or an occupant of a qualifying data center of machinery, equipment, or normal operating repair or replacement parts, if the machinery, equipment, or normal operating repair or replacement parts:
(a) are used in:
(i) the operation of the qualifying data center; or
(ii) the occupant's operations in the qualifying data center; and
(b) have an economic life of one or more years;
(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle that includes cleaning or washing of the interior of the vehicle;
(86) amounts paid or charged for a purchase or lease of machinery, equipment, normal operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or supplies used or consumed:
(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined in Section 79-6-701 located in the state;
(b) if the machinery, equipment, normal operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or supplies are used or consumed in:
(i) the production process to produce gasoline or diesel fuel, or at which blendstock is added to gasoline or diesel fuel;
(ii) research and development;
(iii) transporting, storing, or managing raw materials, work in process, finished products, and waste materials produced from refining gasoline or diesel fuel, or adding blendstock to gasoline or diesel fuel;
(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in refining; or
(v) preventing, controlling, or reducing pollutants from refining; and
(c) if the person holds a valid refiner tax exemption certification as defined in Section 79-6-701;
(87) amounts paid to or charged by a proprietor for accommodations and services, as defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations tax imposed under Section 63H-1-205;
(88) amounts paid or charged for a purchase or lease of machinery, equipment, normal operating repair or replacement parts, or materials, except for office equipment or office supplies, by an establishment, as the commission defines that term in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(b) is located in this state; and
(c) uses the machinery, equipment, normal operating repair or replacement parts, or materials in the operation of the establishment;
(89) amounts paid or charged for an item exempt under Section 59-12-104.10;
(90) sales of a note, leaf, foil, or film, if the item:
(a) is used as currency;
(b) does not constitute legal tender of a state, the United States, or a foreign nation; and
(c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any transparent polymer holder, coating, or encasement;
(91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or surfing facility, if a trained instructor:
(a) is present with the participant, in person or by video, for the duration of the activity; and
(b) actively instructs the participant, including providing observation or feedback;
(92) amounts paid or charged in connection with the construction, operation, maintenance, repair, or replacement of facilities owned by or constructed for:
(a) a distribution electrical cooperative, as defined in Section 54-2-1; or
(b) a wholesale electrical cooperative, as defined in Section 54-2-1;
(93) amounts paid by the service provider for tangible personal property, other than machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels, that:
(a) is consumed in the performance of a service that is subject to tax under Subsection 59-12-103(1)(b), (f), (g), (h), (i), or (j);
(b) has to be consumed for the service provider to provide the service described in Subsection (93)(a); and
(c) will be consumed in the performance of the service described in Subsection (93)(a), to one or more customers, to the point that the tangible personal property disappears or cannot be used for any other purpose;
(94) sales of rail rolling stock manufactured in Utah;
(95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or construction materials between establishments, as the commission defines that term in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
(a) the establishments are related directly or indirectly through 100% common ownership or control; and
(b) each establishment is described in one of the following subsectors of the 2022 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget:
(i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
(ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing;
(96) sales of construction materials used for the construction of a qualified stadium, as defined in Section 11-70-101;
(97) amounts paid or charged for sales of a cannabinoid product as that term is defined in Section 4-41-102;
(98) amounts paid or charged by an operator of a qualifying energy storage manufacturing facility for:
(a) a purchase of tangible personal property if the tangible personal property is incorporated into equipment or a device that stores and discharges energy at the qualifying energy storage manufacturing facility; and
(b) a purchase or lease of machinery, equipment, or normal operating repair or replacement parts if the machinery, equipment, or normal operating repair or replacement parts are used exclusively in the operation of the qualifying energy storage manufacturing facility;
(99) amounts paid or charged for sales of adaptive driving equipment if the adaptive driving equipment is not yet installed in a motor vehicle;
(100) amounts paid or charged for sales of adaptive driving equipment if the adaptive driving equipment is installed in a motor vehicle by a previous owner and the requirements of Section 59-12-104.11 are met;
(101) sales of construction materials used for the construction, remodeling, or refurbishing of a major sporting event venue, as defined in Section 63N-3-1701, within an approved major sporting event venue zone;
(102) amounts paid or charged for a transaction subject to a tax under Chapter 26, Multi-Channel Video or Audio Service Tax Act; and
(103) sales of food and food ingredients or prepared food by a home cook.
(1) Except as provided in Section 59-12-104, sales made by religious or charitable institutions or organizations are exempt from the sales and use tax imposed by this chapter if the sale is made in the conduct of the institution's or organization's regular religious or charitable functions or activities.
(2)
(a) Except as provided in Section 59-12-104, sales made to a religious or charitable institution or organization are exempt from the sales and use tax imposed by this chapter if the sale is made in the conduct of the institution's or organization's regular religious or charitable functions and activities.
(b) In order to facilitate the efficient administration of the exemption granted by this section, the exemption shall be administered as follows:
(i) the exemption shall be at point of sale if the sale is in the amount of at least $1,000;
(ii) except as provided in Subsection (2)(b)(iii), if the sale is less than $1,000, the exemption shall be in the form of a refund of sales or use taxes paid at the point of sale; and
(iii) notwithstanding Subsection (2)(b)(ii), the exemption under this section shall be at point of sale if the sale is:
(A) made pursuant to a contract between the seller and the charitable or religious institution or organization; or
(B) made by a public utility, as defined in Section 54-2-1, to a religious or charitable institution or organization.
(3) An entity that is exempt from federal income taxation under Section 501(c)(3) or (19), Internal Revenue Code:
(a) qualifies as a religious or charitable institution or organization for purposes of this section; and
(b) may claim the exemption granted by this section.
(4)
(a) Religious or charitable institutions or organizations entitled to a refund under Subsection (2)(b)(ii) may apply to the commission for the refund of sales or use taxes paid.
(b) The commission shall designate the following by commission rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(i) procedures for applying for a sales and use tax refund;
(ii) standards for determining and verifying the amount of purchase at the point of sale;
(iii) procedures for submitting a request for refund on a monthly basis anytime the taxpayer has accumulated $100 or more in sales tax payments; and
(iv) procedures for submitting a request for refund on a quarterly basis for any cumulative amount of sales tax payments.
(1) As used in this section "tribal taxing area" means the geographical area that:
(a) is subject to the taxing authority of the Navajo Nation; and
(b) consists of:
(i) notwithstanding the issuance of a patent, all land:
(A) within the limits of an Indian reservation under the jurisdiction of the federal government; and
(B) including any rights-of-way running through the reservation; and
(ii) all Indian allotments the Indian titles to which have not been extinguished, including any rights-of-way running through an Indian allotment.
(2)
(a) Beginning July 1, 2001, amounts paid by or charged to a purchaser for accommodations and services described in Subsection 59-12-103(1)(i) are exempt from the tax imposed by Subsections 59-12-103(2)(a)(i)(A) and (B) or Subsection 59-12-103(2)(e)(i)(A) to the extent permitted under Subsection (2)(b) if:
(i) the accommodations and services described in Subsection 59-12-103(1)(i) are provided within:
(A) the state; and
(B) a tribal taxing area;
(ii) the Navajo Nation imposes and collects a tax on the amounts paid by or charged to the purchaser for the accommodations and services described in Subsection 59-12-103(1)(i);
(iii) the Navajo Nation imposes the tax described in Subsection (2)(a)(ii) without regard to whether or not the purchaser that pays or is charged for the accommodations and services is an enrolled member of the Navajo Nation; and
(iv) the requirements of Subsection (4) are met.
(b) If but for Subsection (2)(a) the amounts paid by or charged to a purchaser for accommodations and services described in Subsection (2)(a) are subject to a tax imposed by Subsections 59-12-103(2)(a)(i)(A) and (B) or Subsection 59-12-103(2)(e)(i)(A):
(i) the seller shall collect and pay to the state the difference described in Subsection (3) if that difference is greater than $0; and
(ii) a person may not require the state to provide a refund, a credit, or similar tax relief if the difference described in Subsection (3) is equal to or less than $0.
(3) The difference described in Subsection (2)(b) is equal to the difference between:
(a) the amount of tax imposed by Subsections 59-12-103(2)(a)(i)(A) and (B) or Subsection 59-12-103(2)(e)(i)(A) on the amounts paid by or charged to a purchaser for accommodations and services described in Subsection 59-12-103(1)(i); less
(b) the tax imposed and collected by the Navajo Nation on the amounts paid by or charged to a purchaser for the accommodations and services described in Subsection 59-12-103(1)(i).
(4)
(a) If, on or after July 1, 2001, the Navajo Nation changes the tax rate of a tax imposed on amounts paid by or charged to a purchaser for accommodations and services described in Subsection 59-12-103(1)(i), any change in the amount of the exemption under Subsection (2) as a result of the change in the tax rate is not effective until the first day of the calendar quarter after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (4)(b) from the Navajo Nation.
(b) The notice described in Subsection (4)(a) shall state:
(i) that the Navajo Nation has changed or will change the tax rate of a tax imposed on amounts paid by or charged to a purchaser for accommodations and services described in Subsection 59-12-103(1)(i);
(ii) the effective date of the rate change on the tax described in Subsection (4)(b)(i); and
(iii) the new rate of the tax described in Subsection (4)(b)(i).
(1)
(a) Subject to Subsections (2) and (3), a seller that collects a tax under this chapter on the sale of a motor vehicle may claim a credit for a tax under this chapter for a motor vehicle that:
(i) has been repossessed; and
(ii) that the seller resells.
(b) A seller of a motor vehicle other than the seller that collects a tax under this chapter on the sale of that motor vehicle may claim a credit for a tax under this chapter:
(i) for a motor vehicle that the seller:
(A) repossessed; and
(B) resells; and
(ii) if the seller that collected the tax under this chapter on that motor vehicle:
(A) is no longer doing business in this state; and
(B) does not owe a tax under this chapter.
(2) The amount of the credit allowed by Subsection (1) is equal to the product of:
(a) the portion of the motor vehicle's purchase price that:
(i) was subject to a tax under this chapter; and
(ii) remains unpaid after the motor vehicle is resold; and
(b) the sum of the tax rates imposed:
(i) under this chapter;
(ii) on the motor vehicle's purchase price; and
(iii) on the date the motor vehicle was purchased by the person that owns the motor vehicle at the time of the repossession.
(3) Except as provided in Subsection (4), if a seller recovers any portion of a motor vehicle's unpaid purchase price that is used to calculate a credit allowed by Subsection (1)(b), the seller shall report and remit a tax under this chapter to the commission:
(a) on the portion of the motor vehicle's unpaid purchase price that:
(i) the seller recovers; and
(ii) is used to calculate the credit allowed by Subsection (1)(b); and
(b) on a return filed for the time period for which the portion of the motor vehicle's unpaid purchase price is recovered.
(4) A credit under this section may not be reduced by any amount of a motor vehicle's unpaid purchase price that a seller recovers as a result of reselling the vehicle, regardless of whether that amount is included in calculating a credit under this section.
(1) If a seller described in Subsection 59-12-104(71)(b) makes a sale of a textbook for a higher education course that is exempt under Subsection 59-12-104(71), the seller shall keep a record verifying that the textbook is a textbook for a higher education course.
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(a) prescribing the records a seller shall keep to verify that a textbook is a textbook for a higher education course; or
(b) to verify that 51% or more of a seller's sales revenue for the previous calendar quarter are sales of a textbook for a higher education course.
The Revenue and Taxation Interim Committee shall:
(1) review Subsection 59-12-104(28) before October 1 of the year after the year in which Congress permits a state to participate in the special supplemental nutrition program under 42 U.S.C. Sec. 1786 even if state or local sales taxes are collected within the state on purchases of food under that program; and
(2) review Subsection 59-12-104(21) before October 1 of the year after the year in which Congress permits a state to participate in the SNAP as defined in Section 35A-1-102, even if state or local sales taxes are collected within the state on purchases of food under that program.
(1) As used in this section:
(a) "Designated establishment within the lodging industry" means an establishment described in NAICS Code 721110 or 721191 of the 2007 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget.
(b) "Exempt purchaser" means a person that:
(i) makes a lodging related purchase; and
(ii) may claim an exemption from a tax under this chapter for the purchase.
(c) "Lodging related purchase" means the purchase of the following from a seller that is a designated establishment within the lodging industry:
(i) accommodations and services described in Subsection 59-12-103(1)(i); or
(ii) any other tangible personal property, product, or service that is:
(A) purchased as part of a transaction that includes the purchase of accommodations and services described in Subsection (1)(c)(i); and
(B) included on the invoice, bill of sale, or similar document provided to the purchaser of the accommodations and services described in Subsection (1)(c)(i).
(2) Except as provided in Subsection (3), an exempt purchaser that makes a lodging related purchase:
(a) shall pay a tax that would otherwise be imposed under this chapter on the lodging related purchase but for the purchaser being allowed to claim an exemption from a tax under this chapter for the purchase; and
(b) may apply to the commission for a refund of the tax described in Subsection (2)(a) that the purchaser pays.
(3) An exempt purchaser that makes a lodging related purchase may claim an exemption from a tax under this chapter at the point of sale if the exempt purchaser:
(a) is an agency or instrumentality of the United States;
(b) is exempt from a tax under this chapter on a lodging related purchase as authorized by a diplomatic tax exemption card issued by the United States; or
(c) may claim the exemption at the point of sale in accordance with Section 59-12-104.1.
(4) An exempt purchaser that applies to the commission for a refund may not make an application to the commission for a refund more frequently than monthly.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing:
(a) procedures for applying for a refund under this section;
(b) standards for determining and verifying the amount of a lodging related purchase by an exempt purchaser; and
(c) procedures for claiming a refund on a monthly basis.
(6) This section does not apply to amounts taxed by the Navajo Nation that are exempt from sales and use taxes in accordance with Section 59-12-104.2.
(1) As used in this section:
(a) "Cannabis" means the same as that term is defined in Section 26B-4-201.
(b) "Cannabis product" means the same as that term is defined in Section 26B-4-201.
(c) "Medical cannabis device" means the same as that term is defined in Section 26B-4-201.
(d) "Medical cannabis pharmacy" means the same as that term is defined in Section 26B-4-201.
(e) "Medicinal dosage form" means the same as that term is defined in Section 26B-4-201.
(2) In addition to the exemptions described in Section 59-12-104, the sale by a licensed medical cannabis pharmacy of the following is not subject to the taxes this chapter imposes:
(a) cannabis in a medicinal dosage form; or
(b) a cannabis product in a medicinal dosage form.
(3) The sale of a medical cannabis device by a medical cannabis pharmacy is subject to the taxes this chapter imposes.
(1) An owner of a motor vehicle with adaptive driving equipment installed may claim the sales tax exemption described in Subsection 59-12-104(100) at the time of purchase if the owner purchases the motor vehicle from a vehicle dealer.
(2) A vehicle dealer shall collect sales tax required by this chapter on the purchase price of the vehicle after subtracting the amount of the purchase price attributed to the adaptive driving equipment.
(3)
(a) A vehicle dealer shall state the purchase price attributed to the adaptive driving equipment on the contract of sale.
(b) The vehicle dealer shall retain the contract of sale described in Subsection (3)(a) for the same period of time a vehicle dealer is required to keep books and records under Section 59-1-1406.
(1) As used in this section:
(a) "Applicant" means a person that:
(i) is required by this section to obtain a license; and
(ii) submits an application:
(A) to the commission; and
(B) for a license under this section.
(b) "Application" means an application for a license under this section.
(c) "Fiduciary of the applicant" means a person that:
(i) is required to collect, truthfully account for, and pay over a tax under this chapter for an applicant; and
(ii)
(A) is a corporate officer of the applicant described in Subsection (1)(c)(i);
(B) is a director of the applicant described in Subsection (1)(c)(i);
(C) is an employee of the applicant described in Subsection (1)(c)(i);
(D) is a partner of the applicant described in Subsection (1)(c)(i);
(E) is a trustee of the applicant described in Subsection (1)(c)(i); or
(F) has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(d) "Fiduciary of the licensee" means a person that:
(i) is required to collect, truthfully account for, and pay over a tax under this chapter for a licensee; and
(ii)
(A) is a corporate officer of the licensee described in Subsection (1)(d)(i);
(B) is a director of the licensee described in Subsection (1)(d)(i);
(C) is an employee of the licensee described in Subsection (1)(d)(i);
(D) is a partner of the licensee described in Subsection (1)(d)(i);
(E) is a trustee of the licensee described in Subsection (1)(d)(i); or
(F) has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(e) "License" means a license under this section.
(f) "Licensee" means a person that is licensed under this section by the commission.
(g) "Special event" means an event that lasts six months or less where taxable sales occur.
(2)
(a) It is unlawful for any person required to collect a tax under this chapter to engage in business within the state without first having obtained a license to do so.
(b) The license described in Subsection (2)(a):
(i) shall be granted and issued by the commission;
(ii) is not assignable;
(iii) is valid only for the person in whose name the license is issued;
(iv) is valid until:
(A) the person described in Subsection (2)(b)(iii):
(I) ceases to do business; or
(II) changes that person's business address; or
(B) the license is revoked by the commission; and
(v) subject to Subsection (2)(d), shall be granted by the commission only upon an application that:
(A) states the name and address of the applicant; and
(B) provides other information the commission may require.
(c) At the time an applicant makes an application under Subsection (2)(b)(v), the commission shall notify the applicant of the responsibilities and liability of a business owner successor under Section 59-12-112.
(d) The commission shall review an application and determine whether the applicant:
(i) meets the requirements of this section to be issued a license; and
(ii) is required to post a bond with the commission in accordance with Subsections (2)(e) and (f) before the applicant may be issued a license.
(e)
(i) Except as provided in Subsection (2)(e)(iii), an applicant shall post a bond with the commission before the commission may issue the applicant a license if:
(A) a license under this section was revoked for a delinquency under this chapter for:
(I) the applicant;
(II) a fiduciary of the applicant; or
(III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this chapter; or
(B) there is a delinquency in paying a tax under this chapter for:
(I) the applicant;
(II) a fiduciary of the applicant; or
(III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this chapter.
(ii) If the commission determines it is necessary to ensure compliance with this chapter, the commission may require a licensee to:
(A) for a licensee that has not posted a bond under this section with the commission, post a bond with the commission in accordance with Subsection (2)(f); or
(B) for a licensee that has posted a bond under this section with the commission, increase the amount of the bond posted with the commission.
(iii) The commission may waive the bond requirement described in Subsection (2)(e)(i), if the applicant is in compliance with a payment agreement that:
(A) relates to the delinquency; and
(B) is approved by the commission.
(f)
(i) A bond required by Subsection (2)(e) shall be:
(A) executed by:
(I) for an applicant, the applicant as principal, with a corporate surety; or
(II) for a licensee, the licensee as principal, with a corporate surety; and
(B) payable to the commission conditioned upon the faithful performance of all of the requirements of this chapter including:
(I) the payment of any tax under this chapter;
(II) the payment of any:
(Aa) penalty as provided in Section 59-1-401; or
(Bb) interest as provided in Section 59-1-402; or
(III) any other obligation of the:
(Aa) applicant under this chapter; or
(Bb) licensee under this chapter.
(ii) Except as provided in Subsection (2)(f)(iv), the commission shall calculate the amount of a bond required by Subsection (2)(e) on the basis of:
(A) commission estimates of:
(I) an applicant's tax liability under this chapter; or
(II) a licensee's tax liability under this chapter; and
(B) any amount of a delinquency described in Subsection (2)(f)(iii).
(iii) Except as provided in Subsection (2)(f)(iv), for purposes of Subsection (2)(f)(ii)(B):
(A) for an applicant, the amount of the delinquency is the sum of:
(I) the amount of any delinquency that served as a basis for revoking the license under this section of:
(Aa) the applicant;
(Bb) a fiduciary of the applicant; or
(Cc) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this chapter; or
(II) the amount of tax that any of the following owe under this chapter:
(Aa) the applicant;
(Bb) a fiduciary of the applicant; and
(Cc) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this chapter; or
(B) for a licensee, the amount of the delinquency is the sum of:
(I) the amount of any delinquency that served as a basis for revoking the license under this section of:
(Aa) the licensee;
(Bb) a fiduciary of the licensee; or
(Cc) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this chapter; or
(II) the amount of tax that any of the following owe under this chapter:
(Aa) the licensee;
(Bb) a fiduciary of the licensee; and
(Cc) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this chapter.
(iv) Notwithstanding Subsection (2)(f)(ii) or (2)(f)(iii), a bond required by Subsection (2)(e) may not:
(A) be less than $25,000; or
(B) exceed $500,000.
(g) Subject to Subsection (2)(h), if business is transacted at two or more separate places by one person, a separate license for each place of business is required.
(h) A license is not required for any person:
(i) engaged exclusively in the business of selling commodities that are exempt from taxation under this chapter; or
(ii) exempt from collecting sales and use tax under Section 59-12-104 and the place of business is a special event.
(i) If a person is not required to obtain a license under Subsection (2)(h), a political subdivision, as defined in Subsection 63A-15-102(5), may not require the person to obtain a license as a prerequisite to obtaining a business license or any other right to conduct business.
(j)
(i) The commission shall, on a reasonable notice and after a hearing, revoke the license of any licensee violating any provisions of this chapter.
(ii) A license may not be issued to a licensee described in Subsection (2)(j)(i) until the licensee has complied with the requirements of this chapter, including:
(A) paying any:
(I) tax due under this chapter;
(II) penalty as provided in Section 59-1-401; or
(III) interest as provided in Section 59-1-402; and
(B) posting a bond in accordance with Subsections (2)(e) and (f).
(k) Any person required to collect a tax under this chapter within this state without having secured a license to do so is guilty of a criminal violation as provided in Section 59-1-401.
(l) A license shall be issued to the person by the commission without a license fee.
(m)
(i) The commission shall include on an application for a temporary sales tax license and special event sales tax return the following statement:
"You are not required to complete or return this form or to collect sales and use tax if you are not regularly engaged in the business of selling the items you are offering at this event or all of the items that you are selling at this event are exempt from sales and use tax under Section 59-12-104."
(ii) The notice described in Subsection (2)(m)(i) shall be in bold font no smaller than the font of the main content and shall appear at the top of the application form.
(3)
(a) For the purpose of the proper administration of this chapter and to prevent evasion of the tax and the duty to collect the tax, it shall be presumed that tangible personal property or any other taxable transaction under Subsection 59-12-103(1) sold by any person for delivery in this state is sold for storage, use, or other consumption in this state unless the person selling the property, item, or service has taken from the purchaser an exemption certificate:
(i) bearing the name and address of the purchaser; and
(ii) providing that the property, item, or service was exempted under Section 59-12-104.
(b) An exemption certificate described in Subsection (3)(a):
(i) shall contain information as prescribed by the commission; and
(ii) if a paper exemption certificate is used, shall be signed by the purchaser.
(c)
(i) Subject to Subsection (3)(c)(ii), a seller or certified service provider is not liable to collect a tax under this chapter if the seller or certified service provider obtains within 90 days after a transaction is complete:
(A) an exemption certificate containing the information required by Subsections (3)(a) and (b); or
(B) the information required by Subsections (3)(a) and (b).
(ii) A seller or certified service provider that does not obtain the exemption certificate or information described in Subsection (3)(c)(i) with respect to a transaction is allowed 120 days after the commission requests the seller or certified service provider to substantiate the exemption to:
(A) establish that the transaction is not subject to taxation under this chapter by a means other than providing an exemption certificate containing the information required by Subsections (3)(a) and (b); or
(B) subject to Subsection (3)(c)(iii), obtain an exemption certificate containing the information required by Subsections (3)(a) and (b), taken in good faith.
(iii) For purposes of Subsection (3)(c)(ii)(B), an exemption certificate is taken in good faith if the exemption certificate claims an exemption that:
(A) was allowed by statute on the date of the transaction in the jurisdiction of the location of the transaction;
(B) could be applicable to that transaction; and
(C) is reasonable for the purchaser's type of business.
(d) Except as provided in Subsection (3)(e), a seller or certified service provider that takes an exemption certificate from a purchaser in accordance with this Subsection (3) with respect to a transaction is not liable to collect a tax under this chapter on that transaction.
(e) Subsection (3)(d) does not apply to a seller or certified service provider if the commission establishes through an audit that the seller or certified service provider:
(i) knew or had reason to know at the time the purchaser provided the seller or certified service provider the information described in Subsection (3)(a) or (b) that the information related to the exemption claimed was materially false; or
(ii) otherwise knowingly participated in activity intended to purposefully evade the tax due on the transaction.
(f)
(i) Subject to Subsection (3)(f)(ii) and except as provided in Subsections (3)(f)(iii) and (iv), if there is a recurring business relationship between a seller or certified service provider and a purchaser, the commission may not require the seller or certified service provider to:
(A) renew an exemption certificate;
(B) update an exemption certificate; or
(C) update a data element of an exemption certificate.
(ii) For purposes of Subsection (3)(f)(i), a recurring business relationship exists if no more than a 12-month period elapses between transactions between a seller or certified service provider and a purchaser.
(iii) Notwithstanding any other provision of this Subsection, the commission shall require a seller to renew an exemption certificate if more than 12-months have elapsed between transactions between a seller or certified service provider and a purchaser.
(iv) If there is a recurring business relationship between a seller or certified service provider and a purchaser, the commission shall require an exemption certificate the seller or certified service provider takes from the purchaser to meet the requirements of Subsections (3)(a) and (b).
(4) A person filing a contract bid with the state or a political subdivision of the state for the sale of tangible personal property or any other taxable transaction under Subsection 59-12-103(1) shall include with the bid the number of the license issued to that person under Subsection (2).
(1) As used in this section:
(a) "Ownership" means direct ownership or indirect ownership through a parent, subsidiary, or affiliate.
(b) "Related seller" means a seller that:
(i) meets one or more of the criteria described in Subsection (2)(a)(i); and
(ii) delivers tangible personal property, a service, or a product transferred electronically that is sold:
(A) by a seller that does not meet one or more of the criteria described in Subsection (2)(a)(i); and
(B) to a purchaser in the state.
(c) "Substantial ownership interest" means an ownership interest in a business entity if that ownership interest is greater than the degree of ownership of equity interest specified in 15 U.S.C. Sec. 78p, with respect to a person other than a director or an officer.
(2)
(a) Except as provided in Subsection (2)(f), Section 59-12-107.1, or Section 59-12-123, and subject to Subsection (2)(g), each seller shall pay or collect and remit the sales and use taxes imposed by this chapter if within this state the seller:
(i) has or utilizes:
(A) an office;
(B) a distribution house;
(C) a sales house;
(D) a warehouse;
(E) a service enterprise; or
(F) a place of business similar to Subsections (2)(a)(i)(A) through (E);
(ii) maintains a stock of goods;
(iii) regularly solicits orders, regardless of whether or not the orders are accepted in the state, unless the seller's only activity in the state is:
(A) advertising; or
(B) solicitation by:
(I) direct mail;
(II) electronic mail;
(III) the Internet;
(IV) telecommunications service; or
(V) a means similar to Subsection (2)(a)(iii)(A) or (B);
(iv) regularly engages in the delivery of property in the state other than by:
(A) common carrier; or
(B) United States mail; or
(v) regularly engages in an activity directly related to the leasing or servicing of property located within the state.
(b) A seller is considered to be engaged in the business of selling tangible personal property, a product transferred electronically, or a service for use in the state, and shall pay or collect and remit the sales and use taxes imposed by this chapter if:
(i) the seller holds a substantial ownership interest in, or is owned in whole or in substantial part by, a related seller; and
(ii)
(A) the seller sells the same or a substantially similar line of products as the related seller and does so under the same or a substantially similar business name; or
(B) the place of business described in Subsection (2)(a)(i) of the related seller or an in state employee of the related seller is used to advertise, promote, or facilitate sales by the seller to a purchaser.
(c) Subject to Section 59-12-107.6, each seller that does not meet one or more of the criteria provided for in Subsection (2)(a) or is not a seller required to pay or collect and remit the sales and use taxes imposed by this chapter under Subsection (2)(b) shall pay or collect and remit the sales and use tax imposed by this chapter if the seller:
(i) sells tangible personal property, products transferred electronically, or services for storage, use, or consumption in the state; and
(ii) in either the previous calendar year or the current calendar year, receives gross revenue from the sale of tangible personal property, products transferred electronically, or services for storage, use, or consumption in the state of more than $100,000.
(d) A seller that does not meet one or more of the criteria provided for in Subsection (2)(a) or is not a seller required to pay or collect and remit sales and use taxes under Subsection (2)(b), Subsection (2)(c), or Section 59-12-107.6 may voluntarily:
(i) collect a tax on a transaction described in Subsection 59-12-103(1); and
(ii) remit the tax to the commission as provided in this part.
(e) The collection and remittance of a tax under this chapter by a seller that is registered under the agreement may not be used as a factor in determining whether that seller is required by this Subsection (2) to:
(i) pay a tax, fee, or charge under:
(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(C) Section 19-6-714;
(D) Section 19-6-805;
(E) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(F) this title; or
(ii) collect and remit a tax, fee, or charge under:
(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(C) Section 19-6-714;
(D) Section 19-6-805;
(E) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(F) this title.
(f) A person shall pay a use tax imposed by this chapter on a transaction described in Subsection 59-12-103(1) if:
(i) the seller did not collect a tax imposed by this chapter on the transaction; and
(ii) the person:
(A) stores the tangible personal property or product transferred electronically in the state;
(B) uses the tangible personal property or product transferred electronically in the state; or
(C) consumes the tangible personal property or product transferred electronically in the state.
(g) The ownership of property that is located at the premises of a printer's facility with which the retailer has contracted for printing and that consists of the final printed product, property that becomes a part of the final printed product, or copy from which the printed product is produced, shall not result in the retailer being considered to have or maintain an office, distribution house, sales house, warehouse, service enterprise, or other place of business, or to maintain a stock of goods, within this state.
(3)
(a) Except as provided in Section 59-12-107.1, a seller shall collect a tax under this chapter from a purchaser.
(b) A seller may not collect as tax an amount, without regard to fractional parts of one cent, in excess of the tax computed at the rates prescribed by this chapter.
(c)
(i) Each seller shall:
(A) give the purchaser a receipt for the tax collected; or
(B) bill the tax as a separate item and declare the name of this state and the seller's sales and use tax license number on the invoice for the sale.
(ii) The receipt or invoice is prima facie evidence that the seller has collected the tax and relieves the purchaser of the liability for reporting the tax to the commission as a consumer.
(d) A seller is not required to maintain a separate account for the tax collected, but is considered to be a person charged with receipt, safekeeping, and transfer of public money.
(e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the benefit of the state and for payment to the commission in the manner and at the time provided for in this chapter.
(f) If any seller, during any reporting period, collects as a tax an amount in excess of the lawful state and local percentage of total taxable sales allowed under this chapter, the seller shall remit to the commission the full amount of the tax imposed under this chapter, plus any excess.
(g) If the accounting methods regularly employed by the seller in the transaction of the seller's business are such that reports of sales made during a calendar month or quarterly period will impose unnecessary hardships, the commission may accept reports at intervals that, in the commission's opinion, will better suit the convenience of the taxpayer or seller and will not jeopardize collection of the tax.
(h)
(i) For a purchase paid with specie legal tender as defined in Section 59-1-1501.1, and until such time as the commission accepts specie legal tender for the payment of a tax under this chapter, if the commission requires a seller to remit a tax under this chapter in legal tender other than specie legal tender, the seller shall state on the seller's books and records and on an invoice, bill of sale, or similar document provided to the purchaser:
(A) the purchase price in specie legal tender and in the legal tender the seller is required to remit to the commission;
(B) subject to Subsection (3)(h)(ii), the amount of tax due under this chapter in specie legal tender and in the legal tender the seller is required to remit to the commission;
(C) the tax rate under this chapter applicable to the purchase; and
(D) the date of the purchase.
(ii)
(A) Subject to Subsection (3)(h)(ii)(B), for purposes of determining the amount of tax due under Subsection (3)(h)(i), a seller shall use the most recent London fixing price for the specie legal tender the purchaser paid.
(B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for determining the amount of tax due under Subsection (3)(h)(i) if the London fixing price is not available for a particular day.
(4)
(a) Except as provided in Subsections (5) through (7) and Section 59-12-108, the sales or use tax imposed by this chapter is due and payable to the commission quarterly on or before the last day of the month next succeeding each quarterly calendar period.
(b)
(i) Each seller shall, on or before the last day of the month next succeeding each quarterly calendar period, file with the commission a return for the preceding quarterly period.
(ii) The seller shall remit with the return under Subsection (4)(b)(i) the amount of the tax required under this chapter to be collected or paid for the period covered by the return.
(c) Except as provided in Subsection (5)(c), a return shall contain information and be in a form the commission prescribes by rule.
(d)
(i) Subject to Subsection (4)(d)(ii), the sales tax as computed in the return shall be based on the total nonexempt sales made during the period for which the return is filed, including both cash and charge sales.
(ii) For a sale that includes the delivery or installation of tangible personal property at a location other than a seller's place of business described in Subsection (2)(a)(i), if the delivery or installation is separately stated on an invoice or receipt, a seller may compute the tax due on the sale for purposes of Subsection (4)(d)(i) based on the amount the seller receives for that sale during each period for which the seller receives payment for the sale.
(e)
(i) The use tax as computed in the return shall be based on the total amount of purchases for storage, use, or other consumption in this state made during the period for which the return is filed, including both cash and charge purchases.
(ii)
(A) As used in this Subsection (4)(e)(ii), "qualifying purchaser" means a purchaser that is required to remit taxes under this chapter, but is not required to remit taxes monthly in accordance with Section 59-12-108, and that converts tangible personal property into real property.
(B) Subject to Subsections (4)(e)(ii)(C) and (D), a qualifying purchaser may remit the taxes due under this chapter on tangible personal property for which the qualifying purchaser claims an exemption as allowed under Subsection 59-12-104(23) or (25) based on the period in which the qualifying purchaser receives payment, in accordance with Subsection (4)(e)(ii)(C), for the conversion of the tangible personal property into real property.
(C) A qualifying purchaser remitting taxes due under this chapter in accordance with Subsection (4)(e)(ii)(B) shall remit an amount equal to the total amount of tax due on the qualifying purchaser's purchase of the tangible personal property that was converted into real property multiplied by a fraction, the numerator of which is the payment received in the period for the qualifying purchaser's sale of the tangible personal property that was converted into real property and the denominator of which is the entire sales price for the qualifying purchaser's sale of the tangible personal property that was converted into real property.
(D) A qualifying purchaser may remit taxes due under this chapter in accordance with this Subsection (4)(e)(ii) only if the books and records that the qualifying purchaser keeps in the qualifying purchaser's regular course of business identify by reasonable and verifiable standards that the tangible personal property was converted into real property.
(f)
(i) Subject to Subsection (4)(f)(ii) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule extend the time for making returns and paying the taxes.
(ii) An extension under Subsection (4)(f)(i) may not be for more than 90 days.
(g) The commission may require returns and payment of the tax to be made for other than quarterly periods if the commission considers it necessary in order to ensure the payment of the tax imposed by this chapter.
(h)
(i) The commission may require a seller that files a simplified electronic return with the commission to file an additional electronic report with the commission.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing:
(A) the information required to be included in the additional electronic report described in Subsection (4)(h)(i); and
(B) one or more due dates for filing the additional electronic report described in Subsection (4)(h)(i).
(5)
(a) As used in this Subsection (5) and Subsection (6)(b), "voluntary seller" means a seller that is:
(i) registered under the agreement;
(ii) described in Subsection (2)(d); and
(iii) not a:
(A) model 1 seller;
(B) model 2 seller; or
(C) model 3 seller.
(b)
(i) Except as provided in Subsection (5)(b)(ii), a tax a voluntary seller collects in accordance with Subsection (2)(d) is due and payable:
(A) to the commission;
(B) annually; and
(C) on or before the last day of the month immediately following the last day of each calendar year.
(ii) The commission may require that a tax a voluntary seller collects in accordance with Subsection (2)(d) be due and payable:
(A) to the commission; and
(B) on the last day of the month immediately following any month in which the seller accumulates a total of at least $1,000 in agreement sales and use tax.
(c)
(i) If a voluntary seller remits a tax to the commission in accordance with Subsection (5)(b), the voluntary seller shall file a return:
(A) with the commission;
(B) with respect to the tax;
(C) containing information prescribed by the commission; and
(D) on a form prescribed by the commission.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules prescribing:
(A) the information required to be contained in a return described in Subsection (5)(c)(i); and
(B) the form described in Subsection (5)(c)(i)(D).
(d) A tax a voluntary seller collects in accordance with this Subsection (5) shall be calculated on the basis of the total amount of taxable transactions under Subsection 59-12-103(1) the voluntary seller completes, including:
(i) a cash transaction; and
(ii) a charge transaction.
(6)
(a) Except as provided in Subsection (6)(b), a tax a seller that files a simplified electronic return collects in accordance with this chapter is due and payable:
(i) monthly on or before the last day of the month immediately following the month for which the seller collects a tax under this chapter; and
(ii) for the month for which the seller collects a tax under this chapter.
(b) A tax a voluntary seller that files a simplified electronic return collects in accordance with this chapter is due and payable as provided in Subsection (5).
(7)
(a) On each vehicle sale made by other than a regular licensed vehicle dealer, the purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to titling or registration under the laws of this state.
(b) The commission shall collect the tax described in Subsection (7)(a) when the vehicle is titled or registered.
(c) If a commission investigation under Section 41-1a-202 determines that an owner of a vehicle or vessel is not in compliance with this chapter, the owner shall pay a liability under this chapter directly to the commission if the vehicle or vessel is subject to titling or registration under the laws of this state.
(8) If any sale of tangible personal property or any other taxable transaction under Subsection 59-12-103(1), is made by a wholesaler to a retailer:
(a) the wholesaler is not responsible for the collection or payment of the tax imposed on the sale; and
(b) the retailer is responsible for the collection or payment of the tax imposed on the sale if:
(i) the retailer represents that the tangible personal property, product transferred electronically, or service is purchased by the retailer for resale; and
(ii) the tangible personal property, product transferred electronically, or service is not subsequently resold.
(9) If any sale of property or service subject to the tax is made to a person prepaying sales or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a contractor or subcontractor of that person:
(a) the person to whom such payment or consideration is payable is not responsible for the collection or payment of the sales or use tax; and
(b) the person prepaying the sales or use tax is responsible for the collection or payment of the sales or use tax if the person prepaying the sales or use tax represents that the amount prepaid as sales or use tax has not been fully credited against sales or use tax due and payable under the rules promulgated by the commission.
(10)
(a) For purposes of this Subsection (10):
(i) Except as provided in Subsection (10)(a)(ii), "bad debt" means the same as that term is defined in Section 166, Internal Revenue Code.
(ii) "Bad debt" does not include:
(A) an amount included in the purchase price of tangible personal property, a product transferred electronically, or a service that is:
(I) not a transaction described in Subsection 59-12-103(1); or
(II) exempt under Section 59-12-104;
(B) a financing charge;
(C) interest;
(D) a tax imposed under this chapter on the purchase price of tangible personal property, a product transferred electronically, or a service;
(E) an uncollectible amount on tangible personal property or a product transferred electronically that:
(I) is subject to a tax under this chapter; and
(II) remains in the possession of a seller until the full purchase price is paid;
(F) an expense incurred in attempting to collect any debt; or
(G) an amount that a seller does not collect on repossessed property.
(b)
(i) To the extent an amount remitted in accordance with Subsection (4)(d) later becomes bad debt, a seller may deduct the bad debt from the total amount from which a tax under this chapter is calculated on a return.
(ii) A qualifying purchaser, as defined in Subsection (4)(e)(ii)(A), may deduct from the total amount of taxes due under this chapter the amount of tax the qualifying purchaser paid on the qualifying purchaser's purchase of tangible personal property converted into real property to the extent that:
(A) tax was remitted in accordance with Subsection (4)(e) on that tangible personal property converted into real property;
(B) the qualifying purchaser's sale of that tangible personal property converted into real property later becomes bad debt; and
(C) the books and records that the qualifying purchaser keeps in the qualifying purchaser's regular course of business identify by reasonable and verifiable standards that the tangible personal property was converted into real property.
(c) A seller may file a refund claim with the commission if:
(i) the amount of bad debt for the time period described in Subsection (10)(e) exceeds the amount of the seller's sales that are subject to a tax under this chapter for that same time period; and
(ii) as provided in Section 59-1-1410.
(d) A bad debt deduction under this section may not include interest.
(e) A bad debt may be deducted under this Subsection (10) on a return for the time period during which the bad debt:
(i) is written off as uncollectible in the seller's books and records; and
(ii) would be eligible for a bad debt deduction:
(A) for federal income tax purposes; and
(B) if the seller were required to file a federal income tax return.
(f) If a seller recovers any portion of bad debt for which the seller makes a deduction or claims a refund under this Subsection (10), the seller shall report and remit a tax under this chapter:
(i) on the portion of the bad debt the seller recovers; and
(ii) on a return filed for the time period for which the portion of the bad debt is recovered.
(g) For purposes of reporting a recovery of a portion of bad debt under Subsection (10)(f), a seller shall apply amounts received on the bad debt in the following order:
(i) in a proportional amount:
(A) to the purchase price of the tangible personal property, product transferred electronically, or service; and
(B) to the tax due under this chapter on the tangible personal property, product transferred electronically, or service; and
(ii) to:
(A) interest charges;
(B) service charges; and
(C) other charges.
(h) A seller's certified service provider may make a deduction or claim a refund for bad debt on behalf of the seller:
(i) in accordance with this Subsection (10); and
(ii) if the certified service provider credits or refunds the entire amount of the bad debt deduction or refund to the seller.
(i) A seller may allocate bad debt among the states that are members of the agreement if the seller's books and records support that allocation.
(11)
(a) A seller may not, with intent to evade any tax, fail to timely remit the full amount of tax required by this chapter.
(b) A violation of this section is punishable as provided in Section 59-1-401.
(c) Each person that fails to pay any tax to the state or any amount of tax required to be paid to the state, except amounts determined to be due by the commission under Chapter 1, Part 14, Assessment, Collections, and Refunds Act, or Section 59-12-111, within the time required by this chapter, or that fails to file any return as required by this chapter, shall pay, in addition to the tax, penalties and interest as provided in Sections 59-1-401 and 59-1-402.
(d) For purposes of prosecution under this section, each quarterly tax period in which a seller, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the tax required to be remitted constitutes a separate offense.
(1) The commission may issue a direct payment permit to a seller that:
(a) obtains a license under Section 59-12-106;
(b) makes aggregate purchases of at least $1,500,000 for each of the three years prior to the year in which the commission issues the direct payment permit to the seller;
(c) has a record of timely payment of taxes under this chapter as determined by the commission; and
(d) demonstrates to the commission that the seller has the ability to determine the appropriate location of a transaction:
(i) under:
(A) Section 59-12-211;
(B) Section 59-12-212; or
(C) Section 59-12-213; and
(ii) for each transaction for which the seller makes a purchase using the direct payment permit.
(2) The commission shall within 120 days after the date a seller applies for a direct payment permit notify the seller of the commission's decision to issue or deny the issuance of the direct payment permit.
(3) A direct payment permit may not be used in connection with the following transactions:
(a) a purchase of the following purchased in the same transaction:
(i) prepared food; and
(ii) food and food ingredients;
(b) amounts paid or charged for accommodations and services described in Subsection 59-12-103(1)(i);
(c) amounts paid or charged for admission or user fees under Subsection 59-12-103(1)(f);
(d) a purchase of:
(i) a motor vehicle;
(ii) an aircraft;
(iii) a watercraft;
(iv) a modular home;
(v) a manufactured home; or
(vi) a mobile home;
(e) amounts paid under Subsection 59-12-103(1)(b); or
(f) sales under Subsection 59-12-103(1)(c).
(4) The holder of a direct payment permit shall:
(a) present evidence of the direct payment permit to a seller at the time the holder of the direct payment permit makes a purchase using the direct payment permit;
(b) determine the appropriate location of a transaction under:
(i)
(A) Section 59-12-211;
(B) Section 59-12-212; or
(C) Section 59-12-213; and
(ii) for each transaction for which the holder of the direct payment permit makes a purchase using the direct payment permit;
(c) notwithstanding Section 59-12-107, determine the amount of any sales and use tax due on each transaction for which the holder of the direct payment permit uses the direct payment permit;
(d) report and remit to the commission the sales and use tax described in Subsection (4)(c) at the same time and in the same manner as the holder of the direct payment permit reports and remits a tax under this chapter; and
(e) maintain records:
(i) that indicate the appropriate location of a transaction under:
(A)
(I) Section 59-12-211;
(II) Section 59-12-212; or
(III) Section 59-12-213; and
(B) for each transaction for which a purchase is made using the direct payment permit; and
(ii) necessary to determine the amount described in Subsection (4)(c) for each transaction for which the holder of the direct payment permit uses the direct payment permit.
(5) A seller that is presented evidence of a direct payment permit at the time of a transaction:
(a) notwithstanding Section 59-12-107, may not collect sales and use tax on the transaction;
(b) shall, for a period of three years from the date the seller files a return with the commission reporting the transaction, retain records to verify that the transaction was made using a direct payment permit; and
(c) notwithstanding Section 59-12-107, is not liable for sales and use tax on the transaction.
(6) The holder of a direct payment permit may calculate the amount the holder of the direct payment permit may retain under Section 59-12-108 on the amount described in Subsection (4)(c):
(a) for each transaction for which the holder of the direct payment permit uses the direct payment permit; and
(b) that the holder of the direct payment permit remits to the commission under this section.
(7) The commission may revoke a direct payment permit issued under this section at any time if the holder of the direct payment permit fails to comply with any provision of this chapter.
(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to administer this section.
(1) A marketplace facilitator shall pay or collect and remit taxes imposed by this chapter in accordance with Section 59-12-107:
(a) if the marketplace facilitator meets one or more of the criteria provided for in Subsection 59-12-107(2)(a) or (b); and
(b) on the sales the marketplace facilitator made on the marketplace facilitator's own behalf.
(2)
(a) A marketplace facilitator shall pay or collect and remit taxes imposed by this chapter in accordance with Subsection (3) if the marketplace facilitator, in the previous calendar year or the current calendar year, makes sales of tangible personal property, products transferred electronically, or services on the marketplace facilitator's own behalf or facilitates sales on behalf of one or more marketplace sellers that exceed $100,000.
(b) For purposes of determining if a marketplace facilitator exceeds the threshold described in this Subsection (2), a marketplace facilitator shall separately total:
(i) the marketplace facilitator's sales; and
(ii) any sales the marketplace facilitator makes or facilitates for a marketplace seller.
(c) A marketplace facilitator without a physical presence in this state shall begin collecting and remitting the taxes imposed by this chapter no later than the first day of the calendar quarter that is at least 60 days after the day on which the marketplace facilitator exceeds the threshold described in Subsection (2)(a).
(3) A marketplace facilitator described in Subsection (2) shall pay or collect and remit taxes imposed by this chapter for each sale that the marketplace facilitator:
(a) makes on the marketplace facilitator's own behalf; or
(b) makes or facilitates on behalf of a marketplace seller, regardless of:
(i) whether the marketplace seller has an obligation to pay or collect and remit taxes under Section 59-12-107;
(ii) whether the marketplace seller would have been required to pay or collect and remit taxes under Section 59-12-107 if the marketplace facilitator had not facilitated the sale; or
(iii) the amount of the sales price or the purchase price that accrues to or benefits the marketplace facilitator, the marketplace seller, or any other person.
(4) A marketplace facilitator shall comply with the procedures and requirements in this chapter and Chapter 1, General Taxation Policies, for sellers required to pay or collect and remit taxes except that the marketplace facilitator shall segregate, in the marketplace facilitator's books and records:
(a) the sales that the marketplace facilitator makes on the marketplace facilitator's own behalf; and
(b) the sales that the marketplace facilitator makes or facilitates on behalf of one or more marketplace sellers.
(5)
(a) The commission may audit the marketplace facilitator for sales made or facilitated through the marketplace facilitator's marketplace on behalf of one or more marketplace sellers.
(b) The commission may not audit the marketplace seller for sales made or facilitated through the marketplace facilitator's marketplace on the marketplace seller's behalf.
(6) Nothing in this section prohibits a marketplace facilitator from providing in a marketplace facilitator's agreement with a marketplace seller for the recovery of taxes, and any related interest or penalties to the extent that a tax, interest, or penalty is assessed by the state in an audit of the marketplace facilitator on a retail sale:
(a) that a marketplace facilitator makes or facilitates on behalf of a marketplace seller; and
(b) for which the marketplace facilitator relied on incorrect or incomplete information provided by the marketplace seller.
(7) A marketplace seller shall pay or collect and remit taxes imposed by this chapter for a sale of tangible personal property, a product transferred electronically, or a service that the marketplace seller makes other than through a marketplace facilitator if:
(a) the sale is sourced to this state; and
(b) the marketplace seller's sales in this state, other than through a marketplace facilitator, in the previous calendar year or the current calendar year exceed $100,000.
(8)
(a) A marketplace seller may not pay or collect and remit taxes imposed by this chapter for any sale for which a marketplace facilitator is required to pay or collect and remit.
(b) A marketplace seller is not liable for a marketplace facilitator's failure to pay or collect and remit, or the marketplace facilitator's underpayment of, taxes imposed by this chapter for any sale for which a marketplace facilitator is required to pay or collect and remit the taxes imposed by this chapter.
(9)
(a) A purchaser of tangible personal property, a product transferred electronically, or a service may file a claim for a refund with the marketplace facilitator if the purchaser overpaid taxes imposed under this chapter.
(b) No person may bring a class action against a marketplace facilitator in any court of the state on behalf of purchasers arising from or in any way related to an overpayment of taxes collected and remitted on sales made or facilitated by the marketplace facilitator on behalf of a marketplace seller, regardless of whether such claim is characterized as a tax refund claim.
(10) Nothing in this section affects the obligation of a purchaser to remit the use tax described in Subsection 59-12-107(2)(f) on any sale for which a marketplace facilitator or marketplace seller failed to collect and remit a tax imposed by this chapter.
(1)
(a) Notwithstanding Section 59-12-107, a seller that has a tax liability under this chapter of $50,000 or more for the previous calendar year shall:
(i) file a return with the commission:
(A) monthly on or before the last day of the month immediately following the month for which the seller collects a tax under this chapter; and
(B) for the month for which the seller collects a tax under this chapter; and
(ii) except as provided in Subsection (1)(b), remit with the return required by Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax, fee, or charge described in Subsection (1)(c):
(A) if that seller's tax liability under this chapter for the previous calendar year is less than $96,000, by any method permitted by the commission; or
(B) if that seller's tax liability under this chapter for the previous calendar year is $96,000 or more, by electronic funds transfer.
(b) A seller shall remit electronically with the return required by Subsection (1)(a)(i) the amount the seller is required to remit to the commission for each tax, fee, or charge described in Subsection (1)(c) if that seller:
(i) is required by Section 59-12-107 to file the return electronically; or
(ii)
(A) is required to collect and remit a tax under Section 59-12-107; and
(B) files a simplified electronic return.
(c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
(i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(ii) a fee under Section 19-6-714;
(iii) a fee under Section 19-6-805;
(iv) a charge under Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(v) a tax under this chapter.
(d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules providing for a method for making same-day payments other than by electronic funds transfer if making payments by electronic funds transfer fails.
(e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall establish by rule procedures and requirements for determining the amount a seller is required to remit to the commission under this Subsection (1).
(2)
(a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a seller described in Subsection (4) may retain each month the amount allowed by this Subsection (2).
(b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain each month 1.31% of any amounts the seller is required to remit to the commission:
(i) for a transaction described in Subsection 59-12-103(1) that is subject to a state tax and a local tax imposed in accordance with the following, for the month for which the seller is filing a return in accordance with Subsection (1):
(A) Subsection 59-12-103(2)(a);
(B) Subsection 59-12-103(2)(b); and
(C) Subsection 59-12-103(2)(d); and
(ii) for an agreement sales and use tax.
(c)
(i) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described in Subsection 59-12-103(1) that is subject to the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(c).
(ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount equal to the sum of:
(A) 1.31% of any amounts the seller is required to remit to the commission for:
(I) the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(c);
(II) the month for which the seller is filing a return in accordance with Subsection (1); and
(III) an agreement sales and use tax; and
(B) 1.31% of the difference between:
(I) the amounts the seller would have been required to remit to the commission:
(Aa) in accordance with Subsection 59-12-103(2)(a) if the transaction had been subject to the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(a);
(Bb) for the month for which the seller is filing a return in accordance with Subsection (1); and
(Cc) for an agreement sales and use tax; and
(II) the amounts the seller is required to remit to the commission for:
(Aa) the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(c);
(Bb) the month for which the seller is filing a return in accordance with Subsection (1); and
(Cc) an agreement sales and use tax.
(d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain each month 1% of any amounts the seller is required to remit to the commission:
(i) for the month for which the seller is filing a return in accordance with Subsection (1); and
(ii) under:
(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B) Subsection 59-12-603(1)(a)(i)(A);
(C) Subsection 59-12-603(1)(a)(i)(B); or
(D) Subsection 59-12-603(1)(a)(ii).
(3) A state government entity that is required to remit taxes monthly in accordance with Subsection (1) may not retain any amount under Subsection (2).
(4) A seller that has a tax liability under this chapter for the previous calendar year of less than $50,000 may:
(a) voluntarily meet the requirements of Subsection (1); and
(b) if the seller voluntarily meets the requirements of Subsection (1), retain the amounts allowed by Subsection (2).
(5) Penalties for late payment shall be as provided in Section 59-1-401.
(6)
(a) Except as provided in Subsection (6)(c), for any amounts required to be remitted to the commission under this part, the commission shall each month calculate an amount equal to the difference between:
(i) the total amount retained for that month by all sellers had the percentages listed under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
(ii) the total amount retained for that month by all sellers at the percentages listed under Subsections (2)(b) and (2)(c)(ii).
(b) The commission shall each month allocate the amount calculated under Subsection (6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use tax that the commission distributes to each county, city, and town for that month compared to the total agreement sales and use tax that the commission distributes for that month to all counties, cities, and towns.
(c) The amount the commission calculates under Subsection (6)(a) may not include an amount collected from a tax that:
(i) the state imposes within a county, city, or town, including the unincorporated area of a county; and
(ii) is not imposed within the entire state.
The confidentiality of returns and other information filed with the commission shall be governed by Section 59-1-403.
(1) A seller that files a claim for a refund under Section 59-12-107 for bad debt shall file the claim with the commission within three years from the date on which the seller could first claim the refund for the bad debt.
(2) A seller that files a claim for a refund for a repossessed item shall file the claim with the commission within three years from the date the item is repossessed.
(3) Except as provided in Subsection (1) or (2), procedures and requirements for a taxpayer to obtain a refund from the commission are as provided in Section 59-1-1410.
(1) Subject to the other provisions of this section, a purchaser may request from a seller a refund or credit of any amount that:
(a) the purchaser overpaid in taxes under this chapter; and
(b) was collected by the seller.
(2)
(a) Except as provided in Subsection (2)(b), the procedure described in Subsection (1) is in addition to the process for a taxpayer to file a claim for a refund or credit with the commission under Section 59-1-1410.
(b) Notwithstanding Subsection (2)(a):
(i) the commission is not required to make a refund or credit of an amount for which as of the date the refund or credit is to be given the purchaser has requested or received a refund or credit from the seller; and
(ii) a seller is not required to refund or credit an amount for which as of the date the refund is to be given the purchaser has requested or received a refund or credit from the commission.
(3) A purchaser may not bring a cause of action against a seller for a refund or credit described in Subsection (1):
(a) unless the purchaser provided the seller written notice that:
(i) the purchaser requests the refund or credit described in Subsection (1); and
(ii) contains the information necessary for the seller to determine the validity of the request; and
(b) sooner than 60 days after the day on which the seller receives the written notice described in Subsection (3)(a).
(4) A seller that collects a tax under this chapter that exceeds the amount the seller is required to collect under this chapter is presumed to have a reasonable business practice if the seller:
(a) collects the tax under this chapter that exceeds the amount the seller is required to collect under this chapter through the use of:
(i) a certified service provider; or
(ii) a system certified by the state, including a proprietary system certified by the state; and
(b) remits to the commission all taxes the seller is required to remit to the commission under this chapter.
A person shall pay a penalty as provided in Section 59-1-401, plus interest at the rate and in the manner prescribed in Section 59-1-402, and all other penalties and interest as provided by this title if the person:
(1) does not hold:
(a) a license under Section 59-12-106; or
(b) a valid use tax registration certificate;
(2) purchases tangible personal property subject to taxation under Subsection 59-12-103(1) for storage, use, or other consumption in this state; and
(3) fails to file a return or pay the tax due as prescribed by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
The tax imposed by this chapter shall be a lien upon the property of any person who sells out the person's business or stock of goods or quits business. Such person shall complete the return provided for under Section 59-12-107, within 30 days after the date the person sold the business or stock of goods, or quit business. Such person's successor in business shall withhold enough of the purchase money to cover the amount of taxes due and unpaid until the former owner produces a receipt from the commission showing that the taxes have been paid, or a certificate that no taxes are due. If the purchaser of a business or stock of goods fails to withhold such purchase money and the taxes are due and unpaid after the 30-day period allowed, the purchaser is personally liable for the payment of the taxes collected and unpaid by the former owner.
The license and tax imposed by this chapter shall be in addition to all other licenses and taxes provided by law.
(1) It is unlawful for any seller to:
(a) refuse to make any return required to be made under this chapter;
(b) make any false or fraudulent return or false statement on any return;
(c) evade the payment of a tax, or any part of a tax imposed by this chapter; or
(d) aid or abet another in any attempt to evade the payment of the tax or any part imposed by this chapter.
(2) Any person violating any of the provisions of this chapter, except as provided in Section 59-12-107, is guilty of a criminal violation as provided in Section 59-1-401.
(3) In addition to the penalties described in Subsection (2), any person who knowingly swears to or verifies any false or fraudulent return, or any return containing any false or fraudulent statement is guilty of the offense of perjury and on conviction of perjury shall be punished in the manner provided by law.
(4) Any company making a false return or a return containing a false statement is guilty of a criminal violation as provided in Section 59-1-401.
(5) Any person failing or refusing to furnish any return required to be made, failing or refusing to furnish a supplemental return or other data required by the commission, or rendering a false or fraudulent return is guilty of a criminal violation as provided in Section 59-1-401 for each offense.
(6) Any person required to make, render, sign, or verify any report under this chapter, who makes any false or fraudulent return with intent to defeat or evade the assessment or determination of amount due required by law to be made is guilty of a criminal violation as provided in Section 59-1-401 for each offense.
(7) Any violation of the provisions of this chapter, except as otherwise provided, shall be a criminal violation as provided in Section 59-1-401.
Except as provided in Sections 59-12-209 and 59-12-302, the commission shall have exclusive authority to administer, operate, and enforce the provisions of this chapter including:
(1) determining, assessing, and collecting any sales and use tax imposed pursuant to this chapter;
(2) representing each designated political subdivision's interest in any administrative proceeding involving the state or local option sales and use tax;
(3) adjudicating any administrative proceedings involving the state or local option sales and use tax;
(4) waiving, reducing, or compromising any penalty and interest imposed in connection with any determination of state or local option sales or use tax; and
(5) prescribing forms and rules to conform with this chapter for the making of returns and for the ascertainment, assessment, and collection of the taxes imposed under this chapter.
(1) As used in this section:
(a) "Advertising and promotional direct mail" means printed material:
(i) that meets the definition of direct mail under Section 59-12-102; and
(ii) if the primary purpose of the printed material is to:
(A) attract public attention to a business, organization, person, or product; or
(B) attempt to popularize, secure, or sell financial support for a business, organization, person, or product.
(b) For purposes of Subsection (1)(a), "product" means:
(i) tangible personal property;
(ii) a product transferred electronically; or
(iii) a service.
(2) Notwithstanding Section 59-12-107 and except as provided in Subsection (7), a purchaser of advertising and promotional direct mail may provide to a seller at the time of a transaction:
(a) a form:
(i) prescribed by the commission; and
(ii) indicating that the transaction is a direct mail transaction;
(b) an agreement certificate of exemption indicating that the transaction is a direct mail transaction;
(c) a direct payment permit under Section 59-12-107.1; or
(d) information that indicates the locations of the recipients to which the advertising and promotional direct mail is delivered.
(3) If a seller receives a form, certificate, or permit described in Subsection (2)(a), (b), or (c) from a purchaser:
(a) if the seller acts in the absence of bad faith, the seller:
(i) is not liable to collect or remit agreement sales and use tax for that transaction; and
(ii) shall keep a record of the form, certificate, or permit described in Subsection (2)(a), (b), or (c) for three years after the date the seller files a return with the commission reporting that transaction; and
(b) the purchaser that provides the form, certificate, or permit described in Subsection (2)(a), (b), or (c) shall:
(i) determine the amount of agreement sales and use tax due on the transaction in the location where the advertising and promotional direct mail is delivered; and
(ii) report and remit to the commission the amount described in Subsection (3)(b)(i) in accordance with Section 59-12-107.
(4) A form or certificate described in Subsection (2)(a) or (b) is in effect for all transactions between the seller described in Subsection (3) and the purchaser described in Subsection (3):
(a) beginning on the date the seller receives the form or certificate in accordance with Subsection (2)(a) or (b); and
(b) ending on the date the purchaser revokes the form or certificate in writing.
(5)
(a) If a seller receives the information described in Subsection (2)(d) from a purchaser that indicates the locations of the recipients to which the advertising and promotional direct mail is delivered, the seller shall collect and remit agreement sales and use tax to the commission in accordance with the information the purchaser provides.
(b) If a seller collects and remits agreement sales and use tax to the commission in accordance with Subsection (5)(a), the seller is not liable for any further obligation to collect or remit agreement sales and use tax to the commission on the transaction unless the seller acts in bad faith.
(6) If a purchaser of advertising and promotional direct mail described in Subsection (2) does not provide the seller with the form, certificate, permit, or information described in Subsection (2) at the time of the transaction, the seller shall:
(a) determine the amount of agreement sales and use tax due on the transaction in accordance with Subsection 59-12-211(6); and
(b) collect and remit to the commission the amount described in Subsection (6)(a) in accordance with Section 59-12-107.
(7)
(a) Except as provided in Subsection (7)(b), this Subsection (7) applies to direct mail if the direct mail is delivered or distributed:
(i) from a location within the state; and
(ii) to a location within the state.
(b) A purchaser of direct mail may provide a seller with:
(i) a form:
(A) prescribed by the commission; and
(B) indicating that the transaction is a direct mail transaction;
(ii) an agreement certificate of exemption indicating that the transaction is a direct mail transaction; or
(iii) a direct payment permit under Section 59-12-107.1.
(c) If a seller receives a form, certificate, or permit described in Subsection (7)(b) from a purchaser:
(i) if the seller acts in the absence of bad faith, the seller:
(A) is not liable to collect or remit agreement sales and use tax for that transaction; and
(B) shall keep a record of the form, certificate, or permit described in Subsection (7)(b) for three years after the date the seller files a return with the commission reporting the transaction; and
(ii) the purchaser that provides the form, certificate, or permit described in Subsection (7)(b) shall:
(A) determine the amount of agreement sales and use tax due on the transaction in accordance with Section 59-12-211.1; and
(B) report and remit to the commission the amount described in Subsection (7)(c)(ii)(A) in accordance with Section 59-12-107.
(d) Except as provided in Subsection (7)(f), if a purchaser of direct mail described in Subsection (7)(b) does not provide the seller with the form, certificate, or permit described in Subsection (7)(b) at the time of the transaction, the seller shall:
(i) determine the amount of agreement sales and use tax due on the transaction in accordance with Subsection 59-12-211(6);
(ii) collect and remit to the commission the amount described in Subsection (7)(d)(i) in accordance with Section 59-12-107; and
(iii) is not liable for any additional sales and use tax under this chapter.
(e) If a seller knows that direct mail will be delivered or distributed to a location in another state, the seller shall:
(i) determine the amount of agreement sales and use tax due on the transaction in accordance with Subsection (5); and
(ii) collect and remit to the commission the amount described in Subsection (7)(e)(i) in accordance with Section 59-12-107.
(f) A seller may:
(i) elect to determine the amount of agreement sales and use tax due on the sale of advertising and promotional direct mail in accordance with Subsection (5) or (6); and
(ii) collect and remit to the commission the amount described in Subsection (7)(f)(i) in accordance with Section 59-12-107.
(8) A form, certificate, or permit described in Subsection (7)(b) is in effect for all transactions between a seller and a purchaser:
(a) beginning on the date the seller receives the form, certificate, or permit in accordance with Subsection (7)(b); and
(b) ending on the date the purchaser revokes the form, certificate, or permit in writing.
(9) This section applies to:
(a) a transaction that is a sale of a service only if the service is an integral part of the production and distribution of direct mail; or
(b) a bundled transaction that includes advertising and promotional direct mail only if the primary purpose of the transaction is the sale of tangible personal property, a product transferred electronically, or a service that is advertising and promotional direct mail.
(10) This section does not apply to a transaction that includes:
(a) the development of billing information; or
(b) the provision of any data processing service that is more than incidental regardless of whether advertising and promotional direct mail is included in the same mailing.
(1) Notwithstanding Section 59-12-107 and except as provided in Subsection (2), if a model 1 seller selects a certified service provider as the model 1 seller's agent:
(a) the certified service provider shall collect and remit an agreement sales and use tax to the commission:
(i) that the model 1 seller would otherwise be required to remit to the commission under this chapter; and
(ii) as provided in this chapter; and
(b) the model 1 seller is not liable for the certified service provider's failure to collect and remit an agreement sales and use tax to the commission that the model 1 seller would otherwise be required to remit to the commission under this chapter.
(2) The model 1 seller described in Subsection (1):
(a) shall remit to the commission a sales and use tax imposed by this chapter:
(i) on the model 1 seller's purchases; and
(ii) as provided in this chapter; and
(b) is liable for a sales and use tax liability arising from fraud by the model 1 seller.
(1) Subject to Subsection (2), a seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(a) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(b) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(2) The time period for which a seller or certified service provider is not liable for failure to collect taxes under Subsection (1) ends on the first day of the calendar quarter after 90 days from the day on which the commission first notifies the seller or certified service provider of the error.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
(1) As used in this section, "amnesty" means that a seller is not required to pay the following amounts that the seller would otherwise be required to pay:
(a) a tax, fee, or charge under:
(i) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(ii) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(iii) Section 19-6-714;
(iv) Section 19-6-805;
(v) Chapter 26, Multi-Channel Video or Audio Service Tax Act;
(vi) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(vii) this chapter;
(b) a penalty on a tax, fee, or charge described in Subsection (1)(a); or
(c) interest on a tax, fee, or charge described in Subsection (1)(a).
(2)
(a) Except as provided in Subsections (2)(b) and (3) and subject to Subsections (4) and (5), the commission shall grant a seller amnesty if the seller:
(i) obtains a license under Section 59-12-106; and
(ii) is registered under the agreement.
(b) The commission is not required to grant a seller amnesty under this section beginning 12 months after the date the state becomes a full member under the agreement.
(3) A seller may not receive amnesty under this section for a tax, fee, or charge:
(a) the seller collects;
(b) the seller remits to the commission;
(c) that the seller is required to remit to the commission on the seller's purchase; or
(d) arising from a transaction that occurs within a time period that is under audit by the commission if:
(i) the seller receives notice of the commencement of the audit prior to obtaining a license under Section 59-12-106; and
(ii)
(A) the audit described in Subsection (3)(d)(i) is not complete; or
(B) the seller has not exhausted all administrative and judicial remedies in connection with the audit described in Subsection (3)(d)(i).
(4)
(a) Except as provided in Subsection (4)(b), amnesty the commission grants to a seller under this section:
(i) applies to the time period during which the seller is not licensed under Section 59-12-106; and
(ii) remains in effect if, for a period of three years, the seller:
(A) remains registered under the agreement;
(B) collects a tax, fee, or charge on a transaction subject to a tax, fee, or charge described in Subsection (1)(a); and
(C) remits to the commission the taxes, fees, and charges the seller collects in accordance with Subsection (4)(a)(ii)(B).
(b) The commission may not grant a seller amnesty under this section if, with respect to a tax, fee, or charge for which the seller would otherwise be granted amnesty under this section, the seller commits:
(i) fraud; or
(ii) an intentional misrepresentation of a material fact.
(5)
(a) If a seller does not meet a requirement of Subsection (4)(a)(ii), the commission shall require the seller to pay the amounts described in Subsection (1) that the seller would have otherwise been required to pay.
(b) Notwithstanding Section 59-1-1410, for purposes of requiring a seller to pay an amount in accordance with Subsection (5)(a), the time period for the commission to make an assessment under Section 59-1-1410 is extended for a time period beginning on the date the seller does not meet a requirement of Subsection (4)(a)(ii) and ends three years after that date.
The commission shall provide a monetary allowance to a seller or certified service provider as determined:
(1) by the governing board of the agreement; and
(2) in accordance with the agreement.
(1) The Legislature finds that:
(a) intervention by counties, cities, and towns into the administration, operation, and enforcement of the local sales and use tax, particularly in the hearing and appeal process, increases the cost of administering both the local option sales and use tax and the state sales and use tax proceedings, and substantially delays the receipt of revenues for counties, cities, towns, and the state; and
(b) the interests and concerns of counties, cities, and towns can be adequately protected through the commission's enforcement efforts.
(2) The commission has exclusive authority to:
(a) administer, operate, and enforce the local option sales and use tax, without interference from counties, cities, or towns; and
(b) allow intervention by a county, city, or town only in the limited circumstances where a particular hearing or appeal may result in a significant lessening of the revenues of a single county, city, or town.
(1) As used in this section:
(a) "Converted municipality" means the same as that term is defined in Section 10-1-201.5.
(b) "Incorporation date" means the date on which the incorporation of a new municipality is effective as described in Section 10-2a-217.
(2) A county, city, or town may impose a sales and use tax under this part.
(3)
(a) Except as provided in Subsection (3)(b), if a converted municipality imposes a tax under this part, the commission shall distribute the amount that the commission calculates under Section 59-12-205 to the converted municipality.
(b) The commission shall transfer the amount that would otherwise be distributed to a converted municipality under this part to a municipal services district created under Title 17B, Chapter 2a, Part 11, Municipal Services District Act, if the converted municipality:
(i) provides written notice to the commission requesting the transfer; and
(ii) designates the municipal services district to which the converted municipality requests the commission to transfer the revenues.
(4) A county, city, or town that imposes a sales and use tax under this part may:
(a) enter into agreements authorized by Title 11, Chapter 13, Interlocal Cooperation Act; and
(b) use any or all of the revenue collected from the tax for the mutual benefit of local governments that elect to contract with one another pursuant to Title 11, Chapter 13, Interlocal Cooperation Act.
(5) If a county in which a newly incorporated municipality is located imposes a tax under this part, the commission shall distribute to the municipality the revenue collected within the boundaries of the municipality from the tax imposed by the county for the period that:
(a) begins on the first day of the calendar quarter after the municipality's incorporation date; and
(b) ends on the first day of the calendar quarter after 180 days from the municipality's incorporation date.
(1) The tax ordinance adopted pursuant to this part shall impose a tax upon those transactions listed in Subsection 59-12-103(1).
(2)
(a) The tax ordinance under Subsection (1) shall include a provision imposing a tax upon every transaction listed in Subsection 59-12-103(1) made within a county, including areas contained within the cities and towns located in the county:
(i) at the rate of 1% of the purchase price paid or charged; and
(ii) if the location of the transaction is within the county as determined under Sections 59-12-211 through 59-12-215.
(b) Notwithstanding Subsection (2)(a), a tax ordinance under this Subsection (2) shall include a provision prohibiting a county, city, or town from imposing a tax under this section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104.
(3) Such tax ordinance shall include provisions substantially the same as those contained in Part 1, Tax Collection, insofar as they relate to sales or use tax, except that the name of the county as the taxing agency shall be substituted for that of the state where necessary for the purpose of this part and that an additional license is not required if one has been or is issued under Section 59-12-106.
(4) Such tax ordinance shall include a provision that the county shall contract, prior to the effective date of the ordinance, with the commission to perform all functions incident to the administration or operation of the ordinance.
(5) Such tax ordinance shall include a provision that the sale, storage, use, or other consumption of tangible personal property, the purchase price or the cost of which has been subject to sales or use tax under a sales and use tax ordinance enacted in accordance with this part by any county, city, or town in any other county in this state, shall be exempt from the tax due under this ordinance.
(6) Such tax ordinance shall include a provision that any person subject to the provisions of a city or town sales and use tax shall be exempt from the county sales and use tax if the city or town sales and use tax is levied under an ordinance including provisions in substance as follows:
(a) a provision imposing a tax upon every transaction listed in Subsection 59-12-103(1) made within the city or town at the rate imposed by the county in which it is situated pursuant to Subsection (2);
(b) notwithstanding Subsection (2)(a), a provision prohibiting the city or town from imposing a tax under this section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104;
(c) provisions substantially the same as those contained in Part 1, Tax Collection, insofar as they relate to sales and use taxes, except that the name of the city or town as the taxing agency shall be substituted for that of the state where necessary for the purposes of this part;
(d) a provision that the city or town shall contract prior to the effective date of the city or town sales and use tax ordinance with the commission to perform all functions incident to the administration or operation of the sales and use tax ordinance of the city or town;
(e) a provision that the sale, storage, use, or other consumption of tangible personal property, the gross receipts from the sale of or the cost of which has been subject to sales or use tax under a sales and use tax ordinance enacted in accordance with this part by any county other than the county in which the city or town is located, or city or town in this state, shall be exempt from the tax; and
(f) a provision that the amount of any tax paid under Part 1, Tax Collection, shall not be included as a part of the purchase price paid or charged for a taxable item.
(7)
(a) Notwithstanding any other provision of this section, beginning on July 1, 2009, the commission shall calculate and retain a portion of the sales and use tax collected under this part as provided in this Subsection (7).
(b) For a city, town, or unincorporated area of a county that imposes a tax under this part, the commission shall calculate a percentage each month by dividing the sales and use tax collected under this part for that month within the boundaries of that city, town, or unincorporated area of a county by the total sales and use tax collected under this part for that month within the boundaries of all of the cities, towns, and unincorporated areas of the counties that impose a tax under this part.
(c) For a city, town, or unincorporated area of a county that imposes a tax under this part, the commission shall retain each month an amount equal to the product of:
(i) the percentage the commission determines for the month under Subsection (7)(b) for the city, town, or unincorporated area of a county; and
(ii) $25,417.
(d) The commission shall deposit an amount the commission retains in accordance with this Subsection (7) into the Qualified Emergency Food Agencies Fund created by Section 35A-8-1009.
(e) An amount the commission deposits into the Qualified Emergency Food Agencies Fund shall be expended as provided in Section 35A-8-1009.
(1) To maintain in effect sales and use tax ordinances adopted in accordance with Section 59-12-204, a county, city, or town shall adopt amendments to the county's, city's, or town's sales and use tax ordinances:
(a) within 30 days of the day on which the state makes an amendment to an applicable provision of Part 1, Tax Collection; and
(b) as required to conform to the amendments to Part 1, Tax Collection.
(2)
(a) Except as provided in Subsections (3), (4), and (5) and subject to Subsection (6):
(i) 50% of each dollar collected from the sales and use tax authorized by this part shall be distributed to each county, city, and town on the basis of the percentage that the population of the county, city, or town bears to the total population of all counties, cities, and towns in the state; and
(ii)
(A) except as provided in Subsections (2)(a)(ii)(B), (C), (D), (E), and (F), 50% of each dollar collected from the sales and use tax authorized by this part shall be distributed to each county, city, and town on the basis of the location of the transaction as determined under Sections 59-12-211 through 59-12-215;
(B) except as provided in Subsections (10) through (13), 50% of each dollar collected from the sales and use tax authorized by this part within a project area described in a project area plan adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act, shall be distributed to the military installation development authority created in Section 63H-1-201;
(C) except as provided in Subsections (10) through (13), beginning July 1, 2024, 20% of each dollar collected from the sales and use tax authorized by this part within a project area under Title 11, Chapter 58, Utah Inland Port Authority Act, shall be distributed to the Utah Inland Port Authority, created in Section 11-58-201;
(D) except as provided in Subsections (10) through (13), 50% of each dollar collected from the sales and use tax authorized by this part within the lake authority boundary, as defined in Section 11-65-101, shall be distributed to the Utah Lake Authority, created in Section 11-65-201, beginning the next full calendar quarter following the creation of the Utah Lake Authority;
(E) except as provided in Subsections (10) through (13), beginning January 1, 2026, 50% of each dollar collected from the sales and use tax authorized by this part within the boundary of an eligible basic special district, as that term is defined in Section 17B-1-1405, and if applicable, the boundary of a public infrastructure district created by the eligible basic special district, shall be distributed to the eligible basic special district; and
(F) except as provided in Subsections (10) through (13), beginning the first day of a calendar quarter after the sales and use tax boundary for a major sporting event venue zone is established, the commission, at least annually, shall transfer an amount equal to 50% of the sales and use tax increment, as defined in Section 63N-3-1701, from the sales and use tax imposed under this part on transactions occurring within a sales and use tax boundary, as described in Section 63N-3-1710, to the creating entity of the major sporting event venue zone.
(b) Subsection (2)(a)(ii)(C) does not apply to sales and use tax revenue collected before July 1, 2022.
(3) Beginning no sooner than January 1, 2026, and before application of Subsections (2), (4), (5), and (6), and except as provided in Subsections (8) and (9), and as described in Section 63N-23-306, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established under Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, the commission, at least annually, shall transfer an amount equal to 100% of the sales and use tax increment, as defined in Section 63N-23-101, from the sales and use tax imposed under this part on transactions occurring within an established sales and use tax boundary, as defined in Section 63N-23-101, to the entity specified in the convention center reinvestment zone proposal submitted in accordance with Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone.
(4)
(a) As used in this Subsection (4):
(i) "Eligible county, city, or town" means a county, city, or town that:
(A) for fiscal year 2012-13, received a tax revenue distribution under Subsection (4)(b) equal to the amount described in Subsection (4)(b)(ii); and
(B) does not impose a sales and use tax under Section 59-12-2103 on or before July 1, 2016.
(ii) "Minimum tax revenue distribution" means the total amount of tax revenue distributions an eligible county, city, or town received from a tax imposed in accordance with this part for fiscal year 2004-05.
(b) An eligible county, city, or town shall receive a tax revenue distribution for a tax imposed in accordance with this part equal to the greater of:
(i) the payment required by Subsection (2); or
(ii) the minimum tax revenue distribution.
(c) For an eligible county, city, or town that qualifies to receive a distribution described in this Subsection (4), the commission shall apply the provisions of this Subsection (4) after the commission applies the provisions of Subsection (3).
(5)
(a) For purposes of this Subsection (5):
(i) "Annual local contribution" means the lesser of $275,000 or an amount equal to 2.55% of the participating local government's tax revenue distribution amount under Subsection (2)(a)(i) for the previous fiscal year.
(ii) "Participating local government" means a county or municipality, as defined in Section 10-1-104, that is not an eligible municipality certified in accordance with Section 35A-16-404.
(b) For revenue collected from the tax authorized by this part that is distributed on or after January 1, 2019, the commission, before making a tax revenue distribution under Subsection (2)(a)(i) to a participating local government, shall:
(i) adjust a participating local government's tax revenue distribution under Subsection (2)(a)(i) by:
(A) subtracting an amount equal to one-twelfth of the annual local contribution for each participating local government from the participating local government's tax revenue distribution; and
(B) if applicable, reducing the amount described in Subsection (5)(b)(i)(A) by an amount equal to one-twelfth of $250 for each bed that is available at all homeless shelters located within the boundaries of the participating local government, as reported to the commission by the Office of Homeless Services in accordance with Section 35A-16-405; and
(ii) deposit the resulting amount described in Subsection (5)(b)(i) into the Homeless Shelter Cities Mitigation Restricted Account created in Section 35A-16-402.
(c) For a participating local government that qualifies to receive a distribution described in Subsection (4), the commission shall apply the provisions of this Subsection (5) after the commission applies the provisions of Subsections (3) and (4).
(6)
(a) As used in this Subsection (6):
(i) "Annual dedicated sand and gravel sales tax revenue" means an amount equal to the total revenue an establishment described in NAICS Code 327320, Ready-Mix Concrete Manufacturing, of the 2022 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, collects and remits under this part for a calendar year.
(ii) "Sand and gravel" means sand, gravel, or a combination of sand and gravel.
(iii) "Sand and gravel extraction site" means a pit, quarry, or deposit that:
(A) contains sand and gravel; and
(B) is assessed by the commission in accordance with Section 59-2-201.
(iv) "Ton" means a short ton of 2,000 pounds.
(v) "Tonnage ratio" means the ratio of:
(A) the total amount of sand and gravel, measured in tons, sold during a calendar year from all sand and gravel extraction sites located within a county, city, or town; to
(B) the total amount of sand and gravel, measured in tons, sold during the same calendar year from sand and gravel extraction sites statewide.
(b) For purposes of calculating the ratio described in Subsection (6)(a)(v), the commission shall:
(i) use the gross sales data provided to the commission as part of the commission's property tax valuation process; and
(ii) if a sand and gravel extraction site operates as a unit across municipal or county lines, apportion the reported tonnage among the counties, cities, or towns based on the percentage of the sand and gravel extraction site located in each county, city, or town, as approximated by the commission.
(c)
(i) Each July, the commission shall distribute from total collections under this part an amount equal to the annual dedicated sand and gravel sales tax revenue for the preceding calendar year to each county, city, or town in the same proportion as the county's, city's, or town's tonnage ratio for the preceding calendar year.
(ii) The commission shall ensure that the revenue distributed under this Subsection (6)(c) is drawn from each jurisdiction's collections in proportion to the jurisdiction's share of total collections for the preceding 12-month period.
(d) A county, city, or town shall use revenue described in Subsection (6)(c) for class B or class C roads.
(7)
(a) Population figures for purposes of this section shall be based on, to the extent not otherwise required by federal law:
(i) the most recent estimate from the Utah Population Committee created in Section 63C-20-103; or
(ii) if the Utah Population Committee estimate is not available for each municipality and unincorporated area, the adjusted sub-county population estimate provided by the Utah Population Committee in accordance with Section 63C-20-104.
(b) The population of a county for purposes of this section shall be determined only from the unincorporated area of the county.
(8)
(a) As used in Subsections (8) and (9):
(i) "Applicable percentage" means, for a convention center reinvestment zone created under Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, for sales occurring within the qualified development zone described in Subsection (8)(a)(ii), 100% of the sales and use tax increment, as that term is defined in Section 63N-23-101, from the sales and use tax:
(A) imposed by a city of the first class in a county of the first class under this part;
(B) imposed by a city of the first class in a county of the first class under Section 59-12-402.1;
(C) imposed by a county of the first class under Section 59-12-1102; and
(D) imposed by a county of the first class under Part 22, Local Option Sales and Use Taxes for Transportation Act.
(ii) "Qualified development zone" means the sales and use tax boundary of a convention center reinvestment zone created under Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone.
(iii) "Qualifying construction materials" means construction materials that are:
(A) delivered to a delivery outlet within a qualified development zone; and
(B) intended to be permanently attached to real property within the qualified development zone.
(b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (8)(c) to a qualified development zone if the seller of the construction materials:
(i) establishes a delivery outlet with the commission within the qualified development zone;
(ii) reports the sales of the construction materials to the delivery outlet described in Subsection (8)(b)(i); and
(iii) does not report the sales of the construction materials on a simplified electronic return.
(c) For the purposes of Subsection (8)(b), the product is equal to:
(i) the sales price or purchase price of the qualifying construction materials; and
(ii) the applicable percentage.
(9)
(a) As used in this Subsection (9), "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J, or a substantially similar form as designated by the commission.
(b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed into the jurisdiction that would have received the revenue in the absence of the qualified development zone.
(10)
(a) As used in this Subsection (10):
(i) "Applicable percentage" means:
(A) for a project area adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act, for sales occurring within a qualified development zone described in Subsection (10)(a)(iii)(A):
(I) 50% of the revenue from the sales and use tax imposed under this part;
(II) 100% of the revenue from the sales and use tax imposed by the military installation development authority under Section 59-12-401; and
(III) 100% of the revenue from the sales and use tax imposed by the military installation development authority under Section 59-12-402;
(B) for a project area under Title 11, Chapter 58, Utah Inland Port Authority Act, for sales occurring within a qualified development zone described in Subsection (10)(a)(iii)(B), 20% of the revenue from the sales and use tax under this part;
(C) for the lake authority boundary, as defined in Section 11-65-101, for sales occurring within the qualified development zone described in Subsection (10)(a)(ii)(C), 50% of the revenue from the sales and use tax under this part;
(D) for the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, for sales occurring within the qualified development zone described in Subsection (10)(a)(iii)(D), 100% of the revenue from the sales and use tax imposed by the Utah Fairpark Area Investment and Restoration District under Sections 59-12-401 and 59-12-402; and
(E) for an eligible basic special district created under Title 17B, Chapter 1, Part 14, Basic Special District, for sales occurring within a qualified development zone described in Subsection (10)(a)(iii)(E), 50% of the revenue from the sales and use tax imposed under this part.
(ii) "Eligible basic special district" means the same as that term is defined in Section 17B-1-1405.
(iii) "Qualified development zone" means the sales and use tax boundary of:
(A) a project area adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act;
(B) a project area under Title 11, Chapter 58, Utah Inland Port Authority Act;
(C) the lake authority boundary, as defined in Section 11-65-101;
(D) the Utah Fairpark Investment and Restoration District, created in Section 11-70-201; or
(E) the area within the boundary of an eligible basic special district, and if applicable, the boundary of a public infrastructure district created by the basic special district.
(iv) "Qualifying construction materials" means construction materials that are:
(A) delivered to a delivery outlet within a qualified development zone; and
(B) intended to be permanently attached to real property within the qualified development zone.
(b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (10)(c) to a qualified development zone if the seller of the construction materials:
(i) establishes a delivery outlet with the commission within the qualified development zone;
(ii) reports the sales of the construction materials to the delivery outlet described in Subsection (10)(b)(i); and
(iii) does not report the sales of the construction materials on a simplified electronic return; or
(c) For the purposes of Subsection (10)(b), the product is equal to:
(i) the sales price or purchase price of the qualifying construction materials; and
(ii) the applicable percentage.
(11)
(a) As used in this Subsection (11):
(i) "Applicable percentage" means the same as that term is defined in Subsection (10).
(ii) "Qualified development zone" means the same as that term is defined in Subsection (10).
(iii) "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J or a substantially similar form as designated by the commission.
(b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed to the jurisdiction that would have received the revenue in the absence of the qualified development zone.
(12)
(a) As used in this Subsection (12):
(i) "Applicable percentage" means, for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, for sales occurring within the qualified development zone described in Subsection (12)(a)(ii):
(A) 50% of the sales and use tax increment, as that term is defined in Section 63N-23-101, from the sales and use tax imposed under this part;
(B) 100% of the revenue from the sales and use tax imposed by the creating entity of a major sporting event venue zone under Section 59-12-401; and
(C) 100% of the revenue from the sales and use tax imposed by the creating entity of a major sporting event venue zone under Section 59-12-402.
(ii) "Qualified development zone" means the sales and use tax boundary, as described in Section 63N-3-1710, of a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
(iii) "Qualifying construction materials" means construction materials that are:
(A) delivered to a delivery outlet within a qualified development zone; and
(B) intended to be permanently attached to real property within the qualified development zone.
(b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (12)(c) to the creating entity of a qualified development zone if the seller of the construction materials:
(i) establishes a delivery outlet with the commission within the qualified development zone;
(ii) reports the sales of the construction materials to the delivery outlet described in Subsection (12)(b)(i); and
(iii) does not report the sales of the construction materials on a simplified electronic return.
(c) For the purposes of Subsection (12)(b), the product is equal to:
(i) the sales price or purchase price of the qualifying construction materials; and
(ii) the applicable percentage.
(13)
(a) As used in this Subsection (13):
(i) "Applicable percentage" means the same as that term is defined in Subsection (12).
(ii) "Qualified development zone" means the same as that term is defined in Subsection (12).
(iii) "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J or a substantially similar form as designated by the commission.
(b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed to the jurisdiction that would have received the revenue in the absence of the qualified development zone.
(1) The commission shall transmit the sales and use tax revenues the commission collects in accordance with a contract with any county, city, or town monthly by electronic funds transfer.
(2) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from revenues the commission collects from a tax under this part.
(1) For purposes of this section:
(a) "Annexation" means an annexation to:
(i) a county under Title 17, Chapter 61, Part 2, Consolidation of Counties, or Part 3, County Annexation; or
(ii) a city or town under Title 10, Chapter 2, Part 8, Annexation.
(b) "Annexing area" means an area that is annexed into a county, city, or town.
(2)
(a) Except as provided in Subsection (2)(c) or (d), if, on or after July 1, 2004, a county, city, or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (2)(b) from the county, city, or town.
(b) The notice described in Subsection (2)(a)(ii) shall state:
(i) that the county, city, or town will enact or repeal a tax under this part;
(ii) the statutory authority for the tax described in Subsection (2)(b)(i);
(iii) the effective date of the tax described in Subsection (2)(b)(i); and
(iv) if the county, city, or town enacts the tax described in Subsection (2)(b)(i), the rate of the tax.
(c)
(i) The enactment of a tax takes effect on the first day of the first billing period:
(A) that begins on or after the effective date of the enactment of the tax; and
(B) if the billing period for the transaction begins before the effective date of the enactment of the tax under Section 59-12-204.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax imposed under Section 59-12-204.
(d)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (2)(a) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under Subsection (2)(a).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(3)
(a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this part for an annexing area, the enactment or repeal shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing area.
(b) The notice described in Subsection (3)(a)(ii) shall state:
(i) that the annexation described in Subsection (3)(a) will result in an enactment or repeal of a tax under this part for the annexing area;
(ii) the statutory authority for the tax described in Subsection (3)(b)(i);
(iii) the effective date of the tax described in Subsection (3)(b)(i); and
(iv) the rate of the tax described in Subsection (3)(b)(i).
(c)
(i) The enactment of a tax takes effect on the first day of the first billing period:
(A) that begins on or after the effective date of the enactment of the tax; and
(B) if the billing period for the transaction begins before the effective date of the enactment of the tax under Section 59-12-204.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax imposed under Section 59-12-204.
(d)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (3)(a) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under Subsection (3)(a).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(1) As used in this section, "qualifying jurisdiction" means the same as that term is defined in Section 59-1-403.
(2) Notwithstanding Title 63G, Chapter 4, Administrative Procedures Act, a qualifying jurisdiction does not have the right to any of the following, except as specifically allowed by Subsection (3) and Section 59-12-210:
(a) to inspect, review, or have access to any taxpayer sales and use tax records; or
(b) to be informed of, participate in, intervene in, or appeal from any adjudicative proceeding commenced pursuant to Section 63G-4-201 to determine the liability of any taxpayer for sales and use taxes imposed pursuant to this chapter.
(3)
(a) A qualifying jurisdiction shall have access to records and information on file with the commission, and shall have the right to notice of, and rights to intervene in or to appeal from, a proposed final agency action of the commission as provided in this Subsection (3).
(b) If the commission, following a formal adjudicative proceeding commenced pursuant to Title 63G, Chapter 4, Administrative Procedures Act, proposes to take final agency action that would reduce the amount of sales and use tax liability alleged in the notice of deficiency, the commission shall provide notice of a proposed agency action to each qualifying jurisdiction if the proposed final agency action reduces a tax under this chapter distributable to that qualifying jurisdiction by more than $10,000 below the amount of the tax that would have been distributable to that qualifying jurisdiction had a notice of deficiency, as described in Section 59-1-1405, not been reduced.
(c) A qualifying jurisdiction that receives notice described in Subsection (3)(b) may designate a representative who shall have the right to review the record of the formal hearing and any other commission records relating to a proposed final agency action subject to the confidentiality provisions of Section 59-1-403.
(d) No later than 10 days after receiving the notice of the commission's proposed final agency action, a qualifying jurisdiction may file a notice of intervention with the commission.
(e) No later than 20 days after filing a notice of intervention, if a qualifying jurisdiction objects to the proposed final agency action, that qualifying jurisdiction may file a petition for reconsideration with the commission and shall serve copies of the petition on the taxpayer and the appropriate division in the commission.
(f) The taxpayer and appropriate division in the commission may each file a response to the petition for reconsideration within 20 days of receipt of the petition for reconsideration.
(g)
(i) After consideration of the petition for reconsideration and any response, and any additional proceeding the commission considers appropriate, the commission may affirm, modify, or amend its proposed final agency action.
(ii) A taxpayer and any qualifying jurisdiction that has filed a petition for reconsideration may appeal the final agency action.
(h)
(i) Notwithstanding Subsections (3)(a) through (g) and subject to Subsection (3)(h)(ii), the following may file a petition for reconsideration with the commission:
(A) an original recipient political subdivision as defined in Section 59-12-210.1 that receives a notice from the commission in accordance with Subsection 59-12-210.1(2); or
(B) a secondary recipient political subdivision as defined in Section 59-12-210.1 that receives a notice from the commission in accordance with Subsection 59-12-210.1(2).
(ii) An original recipient political subdivision or secondary recipient political subdivision that files a petition for reconsideration with the commission under Subsection (3)(h)(i) shall file the petition no later than 20 days after the later of:
(A) the date the original recipient political subdivision or secondary recipient political subdivision receives the notice described in Subsection (3)(h)(i) from the commission; or
(B) the date the commission makes the redistribution as defined in Section 59-12-210.1 that is the subject of the notice described in Subsection (3)(h)(i).
(1) As used in this section, "qualifying jurisdiction" means the same as that term is defined in Section 59-1-403.
(2)
(a) The commission shall provide to each qualifying jurisdiction the sales and use tax collection data necessary to verify that sales and use tax revenues collected by the commission are distributed to each qualifying jurisdiction in accordance with Sections 59-12-211 through 59-12-215.
(b) The data described in Subsection (2)(a) shall include the commission's reports of seller sales, sales and use tax distribution reports, and a breakdown of local revenues.
(3)
(a) In addition to the access to information provided in Subsection (1) and Section 59-12-109, the commission shall provide a qualifying jurisdiction with copies of returns and other information required by this chapter relating to a tax under this chapter.
(b) The information described in Subsection (3)(a) is available only in official matters and must be requested in writing by the chief executive officer or the chief executive officer's designee.
(c) The request described in Subsection (3)(b) shall specifically indicate the information being sought and how the information will be used.
(d) Information received pursuant to the request described in Subsection (3)(b) shall be:
(i) classified as private or protected under Section 63G-2-302 or 63G-2-305; and
(ii) subject to the confidentiality provisions of Section 59-1-403.
(1) As used in this section:
(a) "Eligible portion of qualifying sales and use tax revenues" means the portion of qualifying sales and use tax revenues that:
(i) were part of an original distribution; and
(ii) the commission determines should have been transmitted:
(A) to a secondary recipient political subdivision; and
(B) during the redistribution period.
(b) "Original distribution" means that the commission:
(i) collects an amount of qualifying sales and use tax revenues; and
(ii) transmits the amount of qualifying sales and use tax revenues to an original recipient political subdivision.
(c) "Original recipient political subdivision" means a county, city, or town to which the commission makes an original distribution.
(d) "Qualifying sales and use tax revenues" means revenues the commission collects from a tax under this chapter except for a tax imposed under:
(i) Part 1, Tax Collection;
(ii) Part 3, Transient Room Tax, if a county, city, or town:
(A) collects the tax; and
(B) does not contract with the commission to collect the tax;
(iii) Part 12, Motor Vehicle Rental Tax; or
(iv) Part 18, Additional State Sales and Use Tax Act.
(e) "Redistribution" means that the commission:
(i) makes an original distribution of qualifying sales and use tax revenues to an original recipient political subdivision;
(ii) after the commission makes the original distribution of qualifying sales and use tax revenues to the original recipient political subdivision, determines that an eligible portion of qualifying sales and use tax revenues should have been transmitted to a secondary recipient political subdivision as a result of:
(A) a county, city, or town providing written notice to the commission that qualifying sales and use tax revenues that the commission distributed to an original recipient political subdivision should have been transmitted to a secondary recipient political subdivision; or
(B) the commission finding that an extraordinary circumstance, as defined by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, exists that requires the commission to make a redistribution without receiving the notice described in Subsection (1)(e)(ii)(A); and
(iii) in accordance with this section, transmits to the secondary recipient political subdivision the eligible portion of qualifying sales and use tax revenues for the redistribution period.
(f) "Redistribution determination date" means the date the commission determines that a secondary recipient political subdivision should have received a redistribution, regardless of the date the commission actually transmits the redistribution to the secondary recipient political subdivision.
(g) "Redistribution period" means the time period:
(i) if the commission determines that an eligible portion of qualifying sales and use tax revenues should have been transmitted to a secondary recipient political subdivision beginning on a date that is 90 or more days before the redistribution determination date:
(A) beginning 90 days before the redistribution determination date; and
(B) ending on the redistribution determination date; or
(ii) if the commission determines that an eligible portion of qualifying sales and use tax revenues should have been transmitted to a secondary recipient political subdivision beginning on a date that is less than 90 days before the redistribution determination date:
(A) beginning on the date the eligible portion of qualifying sales and use tax revenues should have been transmitted to the secondary recipient political subdivision; and
(B) ending on the redistribution determination date.
(h) "Secondary recipient political subdivision" means a county, city, or town that the commission determines should receive a redistribution.
(2) Subject to Subsection (3), the commission may make a redistribution to a secondary recipient political subdivision in an amount equal to the eligible portion of qualifying sales and use tax revenues if:
(a) the commission provides written notice to the following within 15 days after the commission determines to make the redistribution:
(i) the original recipient political subdivision; and
(ii) the secondary recipient political subdivision; and
(b) the commission obtains:
(i) an amended return from each seller that reports a transaction that will be subject to the redistribution; or
(ii) if the commission determines that an amended return described in Subsection (2)(b)(i) is not required to make the redistribution, information:
(A) supporting the redistribution; and
(B) supplied by:
(I) a seller;
(II) a county, city, or town; or
(III) the commission.
(3) The commission shall make a redistribution within 60 days after the requirements of Subsection (2) are met.
(4) This section does not limit the commission's authority to make a distribution of revenues under this chapter for a time period other than the redistribution period.
(1) As used in this section:
(a)
(i) "Receipt" and "receive" mean:
(A) taking possession of tangible personal property;
(B) making first use of a service; or
(C) for a product transferred electronically, the earlier of:
(I) taking possession of the product transferred electronically; or
(II) making first use of the product transferred electronically.
(ii) "Receipt" and "receive" do not include possession by a shipping company on behalf of a purchaser.
(b) "Transportation equipment" means:
(i) a locomotive or rail car that is used to carry a person or property in interstate commerce;
(ii) a truck or truck-tractor:
(A) with a gross vehicle weight rating of 10,001 pounds or more;
(B) registered under Section 41-1a-301; and
(C) operated under the authority of a carrier authorized and certificated:
(I) by the United States Department of Transportation or another federal authority; and
(II) to engage in carrying a person or property in interstate commerce;
(iii) a trailer, semitrailer, or passenger bus that is:
(A) registered under Section 41-1a-301; and
(B) operated under the authority of a carrier authorized and certificated:
(I) by the United States Department of Transportation or another federal authority; and
(II) to engage in carrying a person or property in interstate commerce;
(iv) an aircraft that is operated by an air carrier authorized and certificated:
(A) by the United States Department of Transportation or another federal or foreign authority; and
(B) to engage in carrying a person or property in interstate commerce; or
(v) a container designed for use on, or a component part attached or secured on, an item of equipment listed in Subsections (1)(b)(i) through (iv).
(2) Except as provided in Subsections (8) and (14), if tangible personal property, a product transferred electronically, or a service that is subject to taxation under this chapter is received by a purchaser at a business location of a seller, the location of the transaction is the business location of the seller.
(3) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11), and (14), if tangible personal property, a product transferred electronically, or a service that is subject to taxation under this chapter is not received by a purchaser at a business location of a seller, the location of the transaction is the location where the purchaser takes receipt of the tangible personal property or service.
(4) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11), and (14), if Subsection (2) or (3) does not apply, the location of the transaction is the location indicated by an address for or other information on the purchaser if:
(a) the address or other information is available from the seller's business records; and
(b) use of the address or other information from the seller's records does not constitute bad faith.
(5)
(a) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11), and (14), if Subsection (2), (3), or (4) does not apply, the location of the transaction is the location indicated by an address for the purchaser if:
(i) the address is obtained during the consummation of the transaction; and
(ii) use of the address described in Subsection (5)(a)(i) does not constitute bad faith.
(b) An address used under Subsection (5)(a) includes the address of a purchaser's payment instrument if no other address is available.
(6) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11), and (14), if Subsection (2), (3), (4), or (5) does not apply or if a seller does not have sufficient information to apply Subsection (2), (3), (4), or (5), the location of the transaction is the location:
(a) indicated by the address from which:
(i) except as provided in Subsection (6)(a)(ii), for tangible personal property that is subject to taxation under this chapter, the tangible personal property is shipped;
(ii) for computer software delivered electronically or for a product transferred electronically that is subject to taxation under this chapter, the computer software or product transferred electronically is first available for transmission by the seller; or
(iii) for a service that is subject to taxation under this chapter, the service is provided; or
(b) as determined by the seller with respect to a prepaid wireless calling service:
(i) provided in Subsection (6)(a)(iii); or
(ii) associated with the mobile telephone number.
(7)
(a) For purposes of this Subsection (7), "shared ZIP Code" means a nine-digit ZIP Code that is located within two or more local taxing jurisdictions.
(b) If the location of a transaction determined under Subsections (3) through (6) is in a shared ZIP Code, the location of the transaction is:
(i) if there is only one local taxing jurisdiction that imposes the lowest agreement combined tax rate for the shared ZIP Code, the local taxing jurisdiction that imposes the lowest agreement combined tax rate; or
(ii) if two or more local taxing jurisdictions impose the lowest agreement combined tax rate for the shared ZIP Code, the local taxing jurisdiction that:
(A) imposes the lowest agreement combined tax rate for the shared ZIP Code; and
(B) has located within the local taxing jurisdiction the largest number of street addresses within the shared ZIP Code.
(c) Notwithstanding any provision under this chapter authorizing or requiring the imposition of a sales and use tax, for purposes of Subsection (7)(b), a seller shall collect a sales and use tax imposed under this chapter at the lowest agreement combined tax rate imposed within the local taxing jurisdiction in which the transaction is located under Subsection (7)(b).
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(i) providing for the circumstances under which a seller has exercised due diligence in determining the nine-digit ZIP Code for an address; or
(ii) notwithstanding Subsection (7)(b), for determining the local taxing jurisdiction within which a transaction is located if a seller is unable to determine the local taxing jurisdiction within which the transaction is located under Subsection (7)(b).
(8) The location of a transaction made with a direct payment permit described in Section 59-12-107.1 is the location where receipt of the tangible personal property, product, or service by the purchaser occurs.
(9) The location of a purchase of direct mail is the location determined in accordance with Section 59-12-123.
(10)
(a) Except as provided in Subsection (10)(b), the location of a transaction determined under Subsections (3) through (6), (8), or (9), is the local taxing jurisdiction within which:
(i) the nine-digit ZIP Code assigned to the location determined under Subsections (3) through (6), (8), or (9) is located; or
(ii) the five-digit ZIP Code assigned to the location determined under Subsections (3) through (6), (8), or (9) is located if:
(A) a nine-digit ZIP Code is not available for the location determined under Subsections (3) through (6), (8), or (9); or
(B) after exercising due diligence, a seller or certified service provider is unable to determine a nine-digit ZIP Code for the location determined under Subsections (3) through (6), (8), or (9).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for determining the local taxing jurisdiction within which a transaction is located if a seller or certified service provider is unable to determine the local taxing jurisdiction within which the transaction is located under Subsection (10)(a).
(11)
(a) As used in this Subsection (11), "florist delivery transaction" means a transaction commenced by a florist that transmits an order:
(i) by:
(A) telegraph;
(B) telephone; or
(C) a means of communication similar to Subsection (11)(a)(i)(A) or (B); and
(ii) for delivery to another place:
(A) in this state; or
(B) outside this state.
(b) Notwithstanding Subsections (3) through (6), beginning on January 1, 2009, and ending on December 31, 2009, the location of a florist delivery transaction is the business location of the florist that commences the florist delivery transaction.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule:
(i) define:
(A) "business location"; and
(B) "florist";
(ii) define what constitutes a means of communication similar to Subsection (11)(a)(i)(A) or (B); and
(iii) provide procedures for determining when a transaction is commenced.
(12)
(a) Notwithstanding any other provision of this section and except as provided in Subsection (12)(b), if a purchaser uses computer software and there is not a transfer of a copy of that software to the purchaser, the location of the transaction is determined in accordance with Subsections (4) and (5).
(b) If a purchaser uses computer software described in Subsection (12)(a) at more than one location, the location of the transaction shall be determined in accordance with rules made by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(13)
(a) A tax collected under this chapter shall be reported to the commission on a form that identifies the location of each transaction that occurs during the return filing period.
(b) The form described in Subsection (13)(a) shall be filed with the commission as required under this chapter.
(14) This section does not apply to:
(a) amounts charged by a seller for:
(i) telecommunications service except for a prepaid calling service or a prepaid wireless calling service as provided in Subsection (6)(b) or Section 59-12-215; or
(ii) the retail sale or transfer of:
(A) a motor vehicle other than a motor vehicle that is transportation equipment;
(B) an aircraft other than an aircraft that is transportation equipment;
(C) a watercraft;
(D) a modular home;
(E) a manufactured home; or
(F) a mobile home; or
(iii) except as provided in Section 59-12-214, the lease or rental of tangible personal property other than tangible personal property that is transportation equipment;
(b) a tax a person pays in accordance with Subsection 59-12-107(2)(f); or
(c) a retail sale of tangible personal property or a product transferred electronically if:
(i) the seller receives the order for the tangible personal property or product transferred electronically in this state;
(ii) receipt of the tangible personal property or product transferred electronically by the purchaser or the purchaser's donee occurs in this state;
(iii) the location where receipt of the tangible personal property or product transferred electronically by the purchaser occurs is determined in accordance with Subsections (3) through (5); and
(iv) at the time the seller receives the order, the record keeping system that the seller uses to calculate the proper amount of tax imposed under this chapter captures the location where the order is received.
(1) Subject to Subsection (2), a person that is required by Subsection 59-12-107(2)(f) to pay a use tax on a transaction shall report the location of that transaction at the person's location.
(2) For purposes of Subsection (1), if a person has more than one location in this state, the person shall report the location of the transaction at the location at which tangible personal property, a product transferred electronically, or a service is received.
(1) The location of the sale of tangible personal property or a product transferred electronically is the location where the seller receives the order if:
(a) the seller receives the order for the tangible personal property or product transferred electronically in this state;
(b) receipt of the tangible personal property or product transferred electronically by the purchaser or the purchaser's donee occurs in this state;
(c) the location where receipt of the tangible personal property or product transferred electronically by the purchaser occurs is determined in accordance with Subsections (3) through (6); and
(d) at the time the seller receives the order, the record keeping system that the seller uses to calculate the proper amount of tax imposed under this chapter captures the location where the order is received.
(2)
(a) Subject to Subsections (2)(b) through (d), for purposes of this section, the location where a seller receives an order is:
(i) a physical location of the seller or a third party; and
(ii) where an order is initially received by or on behalf of the seller.
(b) A physical location of a seller or third party includes the following if operated by or on behalf of the seller:
(i) an automated order receipt system;
(ii) an office; or
(iii) an outlet.
(c) The location where a seller receives an order does not include the location:
(i) where an order is accepted, completed, or fulfilled; or
(ii) from which tangible personal property or a product transferred electronically is shipped.
(d)
(i) For purposes of this Subsection (2), an order is considered to be received when all of the information necessary to the determination of whether the order can be accepted has been received by or on behalf of the seller.
(ii) If the seller is an establishment within any of the following classifications, as described in the 2022 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, the seller or the seller's agent has not received all the information described in Subsection (2)(d)(i) until the purchaser communicates to the fulfillment location that the purchaser is prepared to receive the order:
(A) NAICS Industry Group 2123, Nonmetallic Mineral Mining and Quarrying;
(B) NAICS Code 327320, Ready-Mix Concrete Manufacturing; or
(C) NAICS Code 324121, Asphalt Paving Mixture and Block Manufacturing.
(3)
(a) A purchaser is not liable for a tax, penalty, or interest on a sale for which the purchaser remits a tax under this chapter to the seller in the amount the seller invoices if the amount is calculated at the total tax rate applicable to the location where:
(i) receipt by the purchaser occurs; or
(ii) the seller receives the order.
(b) A purchaser may rely on a written representation by the seller as to the location where the seller receives the order for the sale.
(c) If a purchaser does not have a written representation by the seller as to the location where the seller receives the order for the sale, the purchaser may determine the total tax rate applicable to the location where the order is received by using a location indicated by a business address for the seller that is available from the business records:
(i) of the purchaser; and
(ii) that are maintained in the ordinary course of the purchaser's business.
(4) If an item of tangible personal property or an item that is a product transferred electronically is sold with an item that is subject to Section 59-12-211, all of the items are subject to this section if the items are:
(a) sold under a single contract;
(b) sold in the same transaction; and
(c) billed on the same billing statement.
(5) Notwithstanding Section 59-12-211, a seller may elect to determine the location of a sale, lease, or rental of a service under this section if the seller makes any sale, lease, or rental that is subject to this section.
(6) Except as provided in Subsection (5), this section does not apply to the lease or rental of:
(a) tangible personal property; or
(b) a product transferred electronically.
(1)
(a) Except as provided in Subsection (1)(b) or (4), the location of a sale of the following tangible personal property is determined as provided in this section:
(i) aircraft;
(ii) a manufactured home;
(iii) a mobile home;
(iv) a modular home;
(v) a motor vehicle; or
(vi) watercraft.
(b) The location of the sale of tangible personal property described in Subsection (1)(a) is determined in accordance with Sections 59-12-211 and 59-12-212 if the tangible personal property described in Subsection (1)(a) is transportation equipment as defined in Section 59-12-211.
(2)
(a) Except as provided in Subsection (2)(b), if an item of tangible personal property described in Subsection (1)(a) is sold by a dealer of that tangible personal property, the location of the sale of that tangible personal property is the business location of the dealer.
(b) If an item of tangible personal property described in Subsection (1)(a) is sold by a dealer of that tangible personal property that does not have a business location in the state, the location of the sale of that tangible personal property is the location where the purchaser takes receipt of the tangible personal property.
(3) If an item of tangible personal property described in Subsection (1)(a) is sold by a person other than a dealer of that tangible personal property, the location of the sale of that tangible personal property is:
(a) if the tangible personal property is required to be registered with the state before the tangible personal property is used on a public highway, on a public waterway, on public land, or in the air, the location of the street address at which the tangible personal property is registered; or
(b) if the tangible personal property is not required to be registered as provided in Subsection (3)(a), the location of the street address at which the purchaser of the tangible personal property resides.
(4) This section does not apply to the lease or rental of tangible personal property described in Subsection (1)(a).
(1) As used in this section:
(a) "Primary property location" means an address for tangible personal property or a product transferred electronically:
(i) a lessee provides to a lessor; and
(ii) that is available to the lessor from the lessor's records maintained in the ordinary course of business.
(b) "Primary property location" does not include an address described in Subsection (1)(a) if use of that address constitutes bad faith.
(2)
(a) Except as provided in Subsection (2)(b) and notwithstanding Section 59-12-211, if a lease or rental of tangible personal property or a product transferred electronically that is subject to taxation under this part requires recurring periodic payments:
(i) the location of the transaction for any down payment and for the first recurring periodic payment is as provided in Section 59-12-211; and
(ii) the location of the transaction for the second recurring periodic payment and subsequent recurring periodic payments is the primary property or product location for each time period covered by the recurring periodic payment.
(b) If a transaction subject to taxation under this chapter involving a lease or rental of an aircraft or a motor vehicle, semitrailer, or trailer that is not transportation equipment as defined in Section 59-12-211 requires recurring periodic payments, the location of the transaction for a down payment and for each recurring periodic payment is the primary property location for each time period covered by the recurring periodic payment.
(3) Notwithstanding Section 59-12-211, if a transaction involving a lease or rental of the following does not require recurring periodic payments, the location of the transaction is as provided in Section 59-12-211 for each lease or rental payment for:
(a) tangible personal property or a product transferred electronically that is subject to taxation under this chapter; or
(b) an aircraft or a motor vehicle, semitrailer, or trailer that is:
(i) not transportation equipment under Section 59-12-211; and
(ii) subject to taxation under this chapter.
(4) This section does not affect the imposition or computation of a tax under this chapter on:
(a) a lease or rental of tangible personal property or a product transferred electronically that is subject to taxation under this chapter on:
(i) the basis of a lump sum; or
(ii) an accelerated basis; or
(b) the acquisition of tangible personal property or a product transferred electronically if that tangible personal property or product transferred electronically is:
(i) subject to taxation under this chapter; and
(ii) for lease.
(1) As used in this section:
(a) "Air-to-ground radiotelephone service" means a radio service:
(i) as defined in 47 C.F.R. Sec. 22.99; and
(ii) for which a common carrier is authorized to offer and provide radio telecommunications service:
(A) for hire; and
(B) to a subscriber in an aircraft.
(b) "Call-by-call basis" means a method of charging for telecommunications service that is measured by individual calls.
(c) "Communications channel" means a physical or virtual path of communications over which a signal is transmitted between or among customer channel termination points.
(d)
(i) Subject to Subsection (1)(d)(ii), "customer" means:
(A) a person that is obligated under a contract with a telecommunications service provider to pay for telecommunications service received under the contract; or
(B) if the end user is not the person described in Subsection (1)(d)(i)(A), the end user of telecommunications service.
(ii) "Customer" does not include a reseller:
(A) of telecommunications service; or
(B) for mobile telecommunications service, of a serving carrier under an agreement to serve a customer outside the home service provider's licensed service area.
(e) "Customer channel termination point" means the location where a customer:
(i) inputs communications; or
(ii) receives communications.
(f) "End user" means:
(i) an individual who uses a telecommunications service; or
(ii) for a telecommunications service provided to a person who is not an individual, an individual who uses a telecommunications service on behalf of the person who is provided the telecommunications service.
(g) "Home service provider" is as defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(h) "Service address" means:
(i) regardless of where a call is billed or paid, the location of the telecommunications equipment:
(A) to which a customer's call is charged; and
(B) from which the call:
(I) originates; or
(II) terminates;
(ii) if the location described in Subsection (1)(h)(i) is not known, the location of the origination point of the signal of the telecommunications service first identified by:
(A) the telecommunications system of the telecommunications service provider; or
(B) if the system used to transport the signal of the telecommunications service is not a system of the telecommunications service provider, information received by the telecommunications service provider from the telecommunications service provider's telecommunications service provider; or
(iii) if the locations described in Subsections (1)(h)(i) and (ii) are not known, the location of a customer's place of primary use.
(2) Except as provided in Subsection (4), the location of a sale of a telecommunications service sold on a call-by-call basis is:
(a) the location at which the call originates and terminates; or
(b) the location at which:
(i) the call:
(A) originates; or
(B) terminates; and
(ii) the service address is located.
(3) Except as provided in Subsection (4), the location of a sale of a telecommunications service sold on a basis other than a call-by-call basis is the customer's place of primary use.
(4) Notwithstanding Subsection (2) or (3):
(a) the location of a sale of a mobile telecommunications service, other than an air-to-ground radiotelephone service or a prepaid calling service, is the location required by the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.;
(b) the location of a sale of a postpaid calling service is the origination point of the telecommunications signal as first identified by:
(i) the seller's telecommunications system; or
(ii) if the system used to transport the telecommunications signal is not that of the seller, information received by the seller from the seller's telephone service provider;
(c) the location of a sale of a prepaid calling service is the location determined under Section 59-12-211; and
(d)
(i) subject to Subsection (4)(d)(ii), the location of a sale of a prepaid wireless calling service is the location determined under Section 59-12-211; and
(ii) for purposes of Subsection (4)(d)(i), the location of a transaction determined under Subsection 59-12-211(6) is considered to include the location associated with the mobile telephone number.
(5) The location of a sale of a private communication service is:
(a) if all of the customer channel termination points are located entirely within one county, city, or town, the location of the sale is the county, city, or town in which all of the customer channel termination points are located;
(b) if a charge for a service related to a customer channel termination point is separately stated, the location of the sale is the location in which the customer channel termination point is located;
(c) if a charge for service for a segment of a channel between two customer channel termination points located in different counties, cities, or towns is separately stated, the location of the sale is each county, city, or town:
(i) in which the customer channel termination points are located; and
(ii) in equal proportions; and
(d) if a charge for service for a segment of a channel located in more than one county, city, or town is not separately stated, the location of the sale is:
(i) each county, city, or town in which a segment of the channel is located; and
(ii) in proportion to the percentage of customer channel termination points in each county, city, or town compared to the total customer channel termination points in all counties, cities, and towns.
(6) The location of a sale of Internet access service is the customer's place of primary use.
(7) The location of a sale of an ancillary service is the customer's place of primary use.
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
(1)
(a) A county legislative body may impose a tax on charges for the accommodations and services described in Subsection 59-12-103(1)(i) at a rate of not to exceed:
(i) 4.25% beginning on or after October 1, 2006; and
(ii) for counties of the second, third, fourth, fifth, or sixth class, 4.5% beginning on or after July 1, 2025.
(b) Subject to Subsection (2), the revenues raised from the tax imposed under Subsection (1)(a) shall be used for the purposes listed in Section 17-78-702.
(c) The tax imposed under Subsection (1)(a) shall be in addition to the tax imposed under Part 6, Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax Act.
(2)
(a) If a county legislative body of a county of the first class imposes a tax under this section, beginning on July 1, 2007, and ending on June 30, 2027, each year the first 15% of the revenues collected from the tax authorized by Subsection (1)(a) within that county shall be:
(i) deposited into the Transient Room Tax Fund created by Section 63N-3-403; and
(ii) expended as provided in Section 63N-3-403.
(b) If a county legislative body of a county of the first class imposes a tax under this section, beginning on July 1, 2027, and ending on June 30, 2047, each year the first 7.5% of the revenues collected from the tax authorized by Subsection (1)(a) within that county shall be:
(i) deposited into the Transient Room Tax Fund created by Section 63N-3-403; and
(ii) expended as provided in Section 63N-3-403.
(3) Subject to Subsection (4), a county legislative body:
(a) may increase or decrease the tax authorized under this part; and
(b) shall regulate the tax authorized under this part by ordinance.
(4)
(a) For purposes of this Subsection (4):
(i) "Annexation" means an annexation to a county under Title 17, Chapter 61, Part 2, Consolidation of Counties, or Part 3, County Annexation.
(ii) "Annexing area" means an area that is annexed into a county.
(b)
(i) Except as provided in Subsection (4)(c), if, on or after July 1, 2004, a county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (4)(b)(ii) from the county.
(ii) The notice described in Subsection (4)(b)(i)(B) shall state:
(A) that the county will enact or repeal a tax or change the rate of a tax under this part;
(B) the statutory authority for the tax described in Subsection (4)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (4)(b)(ii)(A); and
(D) if the county enacts the tax or changes the rate of the tax described in Subsection (4)(b)(ii)(A), the rate of the tax.
(c)
(i) Notwithstanding Subsection (4)(b)(i), for a transaction described in Subsection (4)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period:
(A) that begins after the effective date of the enactment of the tax or the tax rate increase; and
(B) if the billing period for the transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under this section.
(ii) Notwithstanding Subsection (4)(b)(i), for a transaction described in Subsection (4)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:
(A) that began before the effective date of the repeal of the tax or the tax rate decrease; and
(B) if the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under this section.
(iii) Subsections (4)(c)(i) and (ii) apply to transactions subject to a tax under Subsection 59-12-103(1)(i).
(d)
(i) Except as provided in Subsection (4)(e), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment, repeal, or a change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (4)(d)(ii) from the county that annexes the annexing area.
(ii) The notice described in Subsection (4)(d)(i)(B) shall state:
(A) that the annexation described in Subsection (4)(d)(i) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (4)(d)(ii)(A);
(C) the effective date of the tax described in Subsection (4)(d)(ii)(A); and
(D) if the county enacts the tax or changes the rate of the tax described in Subsection (4)(d)(ii)(A), the rate of the tax.
(e)
(i) Notwithstanding Subsection (4)(d)(i), for a transaction described in Subsection (4)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period:
(A) that begins after the effective date of the enactment of the tax or the tax rate increase; and
(B) if the billing period for the transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under this section.
(ii) Notwithstanding Subsection (4)(d)(i), for a transaction described in Subsection (4)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:
(A) that began before the effective date of the repeal of the tax or the tax rate decrease; and
(B) if the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under this section.
(iii) Subsections (4)(e)(i) and (ii) apply to transactions subject to a tax under Subsection 59-12-103(1)(i).
(1) Except as provided in Subsections (2), (3), and (4), the tax authorized under this part shall be administered, collected, enforced, and interpreted in accordance with:
(a) the same procedures used to administer, collect, enforce, and interpret the tax under:
(i) Part 1, Tax Collection; or
(ii) Part 2, Local Sales and Use Tax Act; and
(b) Chapter 1, General Taxation Policies.
(2) The location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or Subsections 59-12-205(2) and (4) through (6).
(4) A county auditor may make referrals to the commission to assist the commission in determining whether to require an audit of any person that is required to remit a tax authorized under this part.
(5) The commission:
(a) shall distribute the revenue collected from the tax to the county within which the revenue was collected; and
(b) shall retain and deposit an administrative charge in accordance with Section 59-1-306 from revenue the commission collects from a tax under this part.
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
(1)
(a) Except as provided in Subsection (5), the governing body of a municipality may impose a tax of not to exceed 1% on charges for the accommodations and services described in Subsection 59-12-103(1)(i).
(b) Subject to Section 63H-1-203, the military installation development authority created in Section 63H-1-201 may impose a tax under this section for accommodations and services described in Subsection 59-12-103(1)(i) within a project area described in a project area plan adopted by the authority under Title 63H, Chapter 1, Military Installation Development Authority Act, as though the authority were a municipality.
(c) Beginning October 1, 2024, the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, may impose a tax under this section for accommodations and services described in Subsection 59-12-103(1)(i) within the district sales tax area, as defined in Section 11-70-101, to the same extent and in the same manner as a municipality may impose a tax under this section.
(d) Beginning October 1, 2025, the creating entity of a major sporting event venue zone approved pursuant to Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, may impose a tax under this section for accommodations and services described in Subsection 59-12-103(1)(i) within the sales and use tax boundary, as defined in Section 63N-3-1701:
(i) to the same extent and in the same manner as a municipality may impose a tax under this section; and
(ii) as described in Subsection (7).
(2) Subject to the limitations of Subsection (1), a governing body of a municipality may, by ordinance, increase or decrease the tax under this part.
(3) A governing body of a municipality shall regulate the tax under this part by ordinance.
(4) A municipality may use revenues generated by the tax under this part for general fund purposes.
(5)
(a) A municipality may not impose a tax under this section for accommodations and services described in Subsection 59-12-103(1)(i) within:
(i) a project area described in a project area plan adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act; or
(ii) the district sales tax area, as defined in Section 11-70-101.
(b) Subsection (5)(a) does not apply to:
(i) the military installation development authority's imposition of a tax under this section; or
(ii) the imposition of a tax under this section by the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201.
(c) A municipality may not impose a tax under this section for accommodations and services described in Subsection 59-12-103(1)(i) within a qualified development zone of a major sporting event venue zone if the creating entity of the major sporting event venue zone imposes a tax as described in Subsection (7).
(6)
(a) As used in this Subsection (6):
(i) "Authority" means the Point of the Mountain State Land Authority, created in Section 11-59-201.
(ii) "Authority board" means the board referred to in Section 11-59-301.
(b) The authority may, by a resolution adopted by the authority board, impose a tax of not to exceed 5% on charges for the accommodations and services described in Subsection 59-12-103(1)(i) for transactions that occur on point of the mountain state land, as defined in Section 11-59-102.
(c) The authority board, by resolution, shall regulate the tax under this Subsection (6).
(d) The authority shall use all revenue from a tax imposed under this Subsection (6) to provide affordable housing, consistent with the manner that a community reinvestment agency uses funds for income targeted housing under Section 17C-1-412.
(e) A tax under this Subsection (6) is in addition to any other tax that may be imposed under this part.
(7)
(a) As used in this Subsection (7), "creating entity" means the same as that term is defined in Section 11-71-101.
(b) A creating entity may, by ordinance, impose a tax not to exceed 5% on charges for the accommodations and services described in Subsection 59-12-103(1)(i) for transactions that occur within the sales and use tax boundary, as defined in Section 63N-3-1701, of a major sporting event venue zone.
(c) A creating entity shall use all revenue from a tax imposed under this Subsection (7) as described in Sections 11-71-202 and 11-71-203.
(d) A tax under this Subsection (7) is in addition to any other tax that may be imposed under this part.
(1) Except as provided in Subsections (2) and (3), the tax authorized under this part shall be administered, collected, enforced, and interpreted in accordance with:
(a) the same procedures used to administer, collect, enforce, and interpret the tax under:
(i) Part 1, Tax Collection; or
(ii) Part 2, Local Sales and Use Tax Act; and
(b) Chapter 1, General Taxation Policies.
(2)
(a) The location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(b) Except as provided in Subsection (2)(c), the commission shall distribute the revenue collected from the tax to:
(i)
(A) the municipality within which the revenue was collected, for a tax imposed under this part by a municipality; or
(B) the Utah Fairpark Area Investment and Restoration District, for a tax imposed under this part by the Utah Fairpark Area Investment and Restoration District;
(ii) the Point of the Mountain State Land Authority, for a tax imposed under Subsection 59-12-352(6); and
(iii) the creating entity of a major sporting event venue zone, for a tax imposed under Subsection 59-12-352(7).
(c) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this part.
(3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or Subsections 59-12-205(2) and (4) through (6).
(1) For purposes of this section:
(a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 8, Annexation.
(b) "Annexing area" means an area that is annexed into a city or town.
(2)
(a) Except as provided in Subsection (2)(c), if, on or after July 1, 2004, a city or town enacts or repeals a tax or changes the rate of a tax under this part, or if the Point of the Mountain State Land Authority imposes or repeals a tax under Subsection 59-12-352(6) or changes the rate of the tax, the enactment, repeal, or change shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (2)(b) from the city or town.
(b) The notice described in Subsection (2)(a)(ii) shall state:
(i) that the city or town will enact or repeal a tax or change the rate of a tax under this part;
(ii) the statutory authority for the tax described in Subsection (2)(b)(i);
(iii) the effective date of the tax described in Subsection (2)(b)(i); and
(iv) if the city or town enacts the tax or changes the rate of the tax described in Subsection (2)(b)(i), the rate of the tax.
(c)
(i) Notwithstanding Subsection (2)(a), for a transaction described in Subsection (2)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period:
(A) that begins after the effective date of the enactment of the tax or the tax rate increase; and
(B) if the billing period for the transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under:
(I) Section 59-12-352; or
(II) Section 59-12-353.
(ii) Notwithstanding Subsection (2)(a), for a transaction described in Subsection (2)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:
(A) that began before the effective date of the repeal of the tax or the tax rate decrease; and
(B) if the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under:
(I) Section 59-12-352; or
(II) Section 59-12-353.
(iii) Subsections (2)(c)(i) and (ii) apply to transactions subject to a tax under Subsection 59-12-103(1)(i).
(3)
(a) Except as provided in Subsection (3)(c), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
(b) The notice described in Subsection (3)(a)(ii) shall state:
(i) that the annexation described in Subsection (3)(a) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;
(ii) the statutory authority for the tax described in Subsection (3)(b)(i);
(iii) the effective date of the tax described in Subsection (3)(b)(i); and
(iv) if the city or town enacts the tax or changes the rate of the tax described in Subsection (3)(b)(i), the rate of the tax.
(c)
(i) Notwithstanding Subsection (3)(a), for a transaction described in Subsection (3)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period:
(A) that begins after the effective date of the enactment of the tax or the tax rate increase; and
(B) if the billing period for the transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under:
(I) Section 59-12-352; or
(II) Section 59-12-353.
(ii) Notwithstanding Subsection (3)(a), for a transaction described in Subsection (3)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:
(A) that began before the effective date of the repeal of the tax or the tax rate decrease; and
(B) if the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under:
(I) Section 59-12-352; or
(II) Section 59-12-353.
(iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under Subsection 59-12-103(1)(i).
The governing body of a municipality may, in addition to the tax authorized under Section 59-12-352, impose a tax of not to exceed .5% on charges for the accommodations and services described in Subsection 59-12-103(1)(i) if the governing body of the municipality:
(1) before January 1, 1996, levied and collected a license fee or tax under Section 10-1-203; and
(2) before January 1, 1997, took official action to obligate the municipality in reliance on the license fees or taxes under Subsection (1) to the payment of debt service on bonds or other indebtedness, including lease payments under a lease purchase agreement.
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
(1)
(a) In addition to other sales and use taxes, a city or town in which the transient room capacity as defined in Section 59-12-405 is greater than or equal to 66% of the municipality's permanent population may impose a sales and use tax of up to 1.1% on the transactions described in Subsection 59-12-103(1) located within the city or town.
(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this section on:
(i)
(A) the sale of a motor vehicle, an aircraft, a watercraft, a modular home, a manufactured home, or a mobile home;
(B) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and
(C) except as provided in Subsection (1)(d), amounts paid or charged for food and food ingredients;
(ii) transactions that occur in the district sales tax area, as defined in Subsection (4), if the fairpark district, as defined in Subsection (4), has imposed a tax under Subsection (4);
(iii) transactions that occur within a project area described in a project area plan adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act, if the military installation development authority has imposed a tax under Subsection (3);
(iv) transactions that occur within the sales and use tax boundary of a major sporting event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, if the creating entity of the major sporting event venue zone has imposed a tax under Subsection (5).
(c) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(d) A city or town imposing a tax under this section shall impose the tax on the purchase price or the sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
(2)
(a) An amount equal to the total of any costs incurred by the state in connection with the implementation of Subsection (1) which exceed, in any year, the revenues received by the state from its collection fees received in connection with the implementation of Subsection (1) shall be paid over to the state General Fund by the cities and towns which impose the tax provided for in Subsection (1).
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those cities and towns according to the amount of revenue the respective cities and towns generate in that year through imposition of that tax.
(3)
(a) Subject to Section 63H-1-203, the military installation development authority created in Section 63H-1-201 may impose a tax under this section on the transactions described in Subsection 59-12-103(1) located within a project area described in a project area plan adopted by the authority under Title 63H, Chapter 1, Military Installation Development Authority Act, as though the authority were a city or a town.
(b) For purposes of calculating the permanent population within a project area, the board, as defined in Section 63H-1-102, shall:
(i) use the actual number of permanent residents within the project area as determined by the board;
(ii) include in the calculation of transient room capacity the number, as determined by the board, of approved high-occupancy lodging units, recreational lodging units, special lodging units, and standard lodging units, even if the units are not constructed;
(iii) adopt a resolution verifying the population number; and
(iv) provide the commission any information required in Section 59-12-405.
(c) Notwithstanding Subsection (1)(a), a board as defined in Section 63H-1-102 may impose the sales and use tax under this section if there are no permanent residents.
(4)
(a) As used in this Subsection (4):
(i) "District sales tax area" means the same as that term is defined in Section 11-70-101.
(ii) "Fairpark district" means the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201.
(iii) "Fairpark district board" means the board of the fairpark district.
(b) Beginning October 1, 2024, the fairpark district, by resolution of the fairpark district board, may impose a tax under this section, as though the fairpark district were a city or town, on transactions described in Subsection 59-12-103(1) located within the district sales tax area.
(c) For purposes of calculating the permanent population within the district sales tax area, the fairpark district board shall:
(i) use the actual number of permanent residents within the district sales tax area as determined by the fairpark district board;
(ii) include in the calculation of transient room capacity the number, as determined by the fairpark district board, of approved high-occupancy lodging units, recreational lodging units, special lodging units, and standard lodging units, even if the units are not constructed;
(iii) adopt a resolution verifying the population number; and
(iv) provide the commission any information required in Section 59-12-405.
(d) Notwithstanding Subsection (1)(a), the fairpark district may impose the sales and use tax under this section if there are no permanent residents within the district sales tax area.
(5)
(a) As used in this Subsection (5):
(i) "Creating entity" means the same as that term is defined in Section 11-71-101.
(ii) "Major sporting event venue zone" means an area approved to be a major sporting event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
(iii) "Sales and use tax boundary" means the same as that term is defined in Section 63N-3-1701.
(b) Beginning October 1, 2025, the creating entity of a major sporting event venue zone, established under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, may by ordinance impose a tax under this section on transactions that occur within the sales and use boundary of a major sporting event venue zone as those terms are defined in Section 63N-3-1701 to the same extent and in the same manner as a city or town may impose a tax under this section.
(6)
(a) As used in this Subsection (6), "major sporting event venue" means a venue that has been or is proposed to be used for the Olympic Games, as confirmed by the Salt Lake City-Utah Committee for the Games, a site, arena, or facility along with supporting or adjacent structures.
(b) Beginning October 1, 2025, a county of the third class with at least three major sporting event venues within the jurisdiction of the county may, by ordinance, impose a tax under this section on transactions occurring within the unincorporated areas of the county to the same extent and in the same manner as a city or town may impose a tax under this section.
(c) Revenue generated by a tax imposed under this Subsection (6) may only be used by the county of the third class on public infrastructure and infrastructure improvements, including transportation infrastructure and improvements, and transit projects.
(7) For purposes of this section, population shall be based on, to the extent not otherwise required by federal law:
(a) the most recent estimate from the Utah Population Committee created in Section 63C-20-103; or
(b) if the Utah Population Committee estimate is not available for each municipality and unincorporated area, the adjusted sub-county population estimate provided by the Utah Population Committee in accordance with Section 63C-20-104.
(1)
(a) Subject to Subsections (2) through (6), the governing body of a municipality in which the transient room capacity as defined in Section 59-12-405 is greater than or equal to 66% of the municipality's permanent population may, in addition to the sales tax authorized under Section 59-12-401, impose an additional resort communities sales tax in an amount that is less than or equal to .5% on the transactions described in Subsection 59-12-103(1) located within the municipality.
(b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not impose a tax under this section on:
(i)
(A) the sale of a motor vehicle, an aircraft, a watercraft, a modular home, a manufactured home, or a mobile home;
(B) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and
(C) except as provided in Subsection (1)(d), amounts paid or charged for food and food ingredients;
(ii) transactions that occur in the district sales tax area, as defined in Subsection 59-12-401(4), if the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, has imposed a tax under Subsection (8);
(iii) transactions that occur within a project area described in a project area plan adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act, if the military installation development authority has imposed a tax under Subsection (7);
(iv) transactions that occur within the sales and use tax boundary of a major sporting event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, if the creating entity of the major sporting event venue zone has imposed a tax under Subsection (9).
(c) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(d) A municipality imposing a tax under this section shall impose the tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
(2)
(a) An amount equal to the total of any costs incurred by the state in connection with the implementation of Subsection (1) which exceed, in any year, the revenues received by the state from its collection fees received in connection with the implementation of Subsection (1) shall be paid over to the state General Fund by the cities and towns which impose the tax provided for in Subsection (1).
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those cities and towns according to the amount of revenue the respective cities and towns generate in that year through imposition of that tax.
(3) To impose an additional resort communities sales tax under this section, the governing body of the municipality shall:
(a) pass a resolution approving the tax; and
(b) except as provided in Subsection (6), obtain voter approval for the tax as provided in Subsection (4).
(4) To obtain voter approval for an additional resort communities sales tax under Subsection (3)(b), a municipality shall:
(a) hold the additional resort communities sales tax election during:
(i) a regular general election; or
(ii) a municipal general election; and
(b) post notice of the election for the municipality, as a class A notice under Section 63G-30-102, for at least 15 days before the day on which the election is held.
(5) An ordinance approving an additional resort communities sales tax under this section shall provide an effective date for the tax as provided in Section 59-12-403.
(6)
(a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality imposed a license fee or tax on businesses based on gross receipts pursuant to Section 10-1-203.
(b) The exception from the voter approval requirements in Subsection (6)(a) does not apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one class of businesses based on gross receipts pursuant to Section 10-1-203.
(7) Subject to Subsection 63H-1-203(1), a military installation development authority authorized to impose a resort communities tax under Section 59-12-401 may impose an additional resort communities sales tax under this section as if the military installation development authority were a municipality.
(8) On or after October 1, 2024, the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, may impose an additional resort communities tax under this section on transactions that occur within the district sales tax area, as defined in Subsection 59-12-401(4), as if the district were a municipality.
(9) Beginning October 1, 2025, the creating entity of a major sporting event venue zone, established under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, may by ordinance impose a tax under this section on transactions that occur within the sales and use tax boundary of a major sporting event venue zone as those terms are defined in Section 63N-3-1701 to the same extent and in the same manner as a municipality may impose a tax under this section.
(10) For purposes of this section, population shall be based on, to the extent not otherwise required by federal law:
(a) the most recent estimate from the Utah Population Committee created in Section 63C-20-103; or
(b) if the Utah Population Committee estimate is not available for each municipality and unincorporated area, the adjusted sub-county population estimate provided by the Utah Population Committee in accordance with Section 63C-20-104.
(1) As used in this section, "new state correctional facility" means a new prison in the state:
(a) that is operated by the Department of Corrections;
(b) the construction of which begins on or after May 12, 2015; and
(c) that provides a capacity of 2,500 or more inmate beds.
(2) Subject to the other provisions of this part, a city or town legislative body may impose a tax under this section if the construction of a new state correctional facility has begun within the boundaries of the city or town.
(3) For purposes of this section, the tax rate may not exceed .5%.
(4) Except as provided in Subsection (5), a tax under this section shall be imposed on the transactions described in Subsection 59-12-103(1) within the city or town.
(5) A city or town may not impose a tax under this section on:
(a) the sale of:
(i) a motor vehicle;
(ii) an aircraft;
(iii) a watercraft;
(iv) a modular home;
(v) a manufactured home; or
(vi) a mobile home;
(b) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt under Section 59-12-104; and
(c) except as provided in Subsection (7), amounts paid or charged for food and food ingredients.
(6) For purposes of this section, the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(7) A city or town that imposes a tax under this section shall impose the tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
(8) Beginning no sooner than January 1, 2026, and subject to Section 59-12-205, before distribution of a sales and use tax imposed under this section, and as described in Section 63N-23-306, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established under Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, the commission, at least annually, shall transfer an amount equal to 100% of the sales and use tax increment as defined in Section 63N-23-101, from the sales and use tax imposed under this section on transactions occurring within an established sales and use tax boundary, as defined in Section 63N-23-101, to a convention center public infrastructure district created in accordance with Section 17D-4-202.1.
(9) A city or town may impose a tax under this section by majority vote of the members of the city or town legislative body.
(10) A city or town that imposes a tax under this section is not subject to Section 59-12-405.
(11) A military installation development authority may not impose a tax under this section.
(1) As used in this section:
(a) "Local government" means a first class city located within a first class county.
(b) "Project area" means the same as that term is defined in Section 63N-23-801.
(2) The legislative body of the local government may impose a sales and use tax under this section if the legislative body, on or before December 31, 2024:
(a) complies with the requirements of Title 63N, Chapter 23, Part 8, Capital City Revitalization Zone;
(b) gives final approval to an application by giving final approval of a project zone and a participation agreement as provided in Section 63N-23-806; and
(c) imposes the tax according to the procedures and requirements of Section 63N-23-806.
(3)
(a) The tax rate may not exceed .5%.
(b) The tax imposed under this section may not be imposed for a period greater than 30 years, beginning on the date of the first imposition of the tax.
(4) Except as provided in Subsection (5), the local government shall impose a tax under this section on the transactions described in Subsection 59-12-103(1).
(5) A local government may not impose a tax under this section on:
(a) the sale of:
(i) a motor vehicle;
(ii) an aircraft;
(iii) a watercraft;
(iv) a modular home;
(v) a manufactured home; or
(vi) a mobile home;
(b) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and
(c) except as provided in Subsection (7), amounts paid or charged for food and food ingredients.
(6) For purposes of this section, the location of a transaction is determined in accordance with Sections 59-12-211 through 59-12-215.
(7) A local government that imposes a tax under this section shall impose the tax on the purchase price or the sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
(8) A local government may impose a tax under this section by majority vote of the members of the local government's legislative body in compliance with the procedures and requirements of Title 63N, Chapter 23, Part 8, Capital City Revitalization Zone.
(9) A military installation development authority may not impose a tax under this section.
(10)
(a) The commission shall distribute the revenue collected from the tax under this section on transactions occurring within the district sales tax area as defined in Section 11-70-101 to the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201.
(b) The commission shall distribute the revenue collected outside of the district sales tax area referenced in Subsection (10)(a) to the local government.
(11) A local government shall use revenue referenced in Subsection (10)(b) only:
(a) within the project area defined in Section 63N-23-801; and
(b) for the allowable uses under Section 63N-23-803.
(1) For purposes of this section:
(a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 8, Annexation.
(b) "Annexing area" means an area that is annexed into a city or town.
(2)
(a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (2)(b) from the city or town.
(b) The notice described in Subsection (2)(a)(ii) shall state:
(i) that the city or town will enact or repeal a tax or change the rate of a tax under this part;
(ii) the statutory authority for the tax described in Subsection (2)(b)(i);
(iii) the effective date of the tax described in Subsection (2)(b)(i); and
(iv) if the city or town enacts the tax or changes the rate of the tax described in Subsection (2)(b)(i), the rate of the tax.
(c)
(i) If the billing period for a transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or 59-12-402.1, the enactment of the tax or the tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax or the tax rate increase.
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax or the tax rate decrease imposed under Section 59-12-401, 59-12-402, or 59-12-402.1.
(d)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (2)(a) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the tax under Subsection (2)(a).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(3)
(a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
(b) The notice described in Subsection (3)(a)(ii) shall state:
(i) that the annexation described in Subsection (3)(a) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;
(ii) the statutory authority for the tax described in Subsection (3)(b)(i);
(iii) the effective date of the tax described in Subsection (3)(b)(i); and
(iv) if the city or town enacts the tax or changes the rate of the tax described in Subsection (3)(b)(i), the rate of the tax.
(c)
(i) If the billing period for a transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or 59-12-402.1, the enactment of the tax or the tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax or the tax rate increase.
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax or the tax rate decrease imposed under Section 59-12-401, 59-12-402, or 59-12-402.1.
(d)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (3)(a) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the tax under Subsection (3)(a).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(4)
(a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be administered, collected, enforced, and interpreted in accordance with:
(i) the same procedures used to administer, collect, enforce, and interpret the tax under:
(A) Part 1, Tax Collection; or
(B) Part 2, Local Sales and Use Tax Act; and
(ii) Chapter 1, General Taxation Policies.
(b) A tax under this part is not subject to Subsections 59-12-205(2) and (4) through (6).
(5) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this part.
(1) As used in this section:
(a) "High-occupancy lodging unit" means each bedroom in a:
(i) hostel; or
(ii) a unit similar to a hostel as determined by the commission by rule.
(b) "High-occupancy lodging unit capacity of a municipality" means the product of:
(i) the total number of high-occupancy lodging units within the incorporated boundaries of a municipality on the first day of the calendar quarter during which the municipality files the form described in Subsection (3); and
(ii) four.
(c) "Recreational lodging unit" means each site in a:
(i) campground that:
(A) is issued a business license by the municipality in which the campground is located; and
(B) provides the following hookups:
(I) water;
(II) sewer; and
(III) electricity;
(ii) recreational vehicle park that provides the following hookups:
(A) water;
(B) sewer; and
(C) electricity; or
(iii) unit similar to Subsection (1)(c)(i) or (ii) as determined by the commission by rule.
(d) "Recreational lodging unit capacity of a municipality" means the product of:
(i) the total number of recreational lodging units within the incorporated boundaries of a municipality on the first day of the calendar quarter during which the municipality files the form described in Subsection (3); and
(ii) four.
(e) "Special lodging unit" means a lodging unit:
(i) that is a:
(A) high-occupancy lodging unit;
(B) recreational lodging unit; or
(C) standard lodging unit;
(ii) for which the commission finds that in determining the capacity of the lodging unit the lodging unit should be multiplied by a number other than a number described in:
(A) for a high-occupancy lodging unit, Subsection (1)(b)(ii);
(B) for a recreational lodging unit, Subsection (1)(d)(ii); or
(C) for a standard lodging unit, Subsection (1)(i)(ii); and
(iii) for which the municipality in which the lodging unit is located files a written request with the commission for the finding described in Subsection (1)(e)(ii).
(f) "Special lodging unit capacity of a municipality" means the sum of the special lodging unit numbers for all of the special lodging units within the incorporated boundaries of a municipality on the first day of the calendar quarter during which the municipality files the form described in Subsection (3).
(g) "Special lodging unit number" means the number by which the commission finds that a special lodging unit should be multiplied in determining the capacity of the special lodging unit.
(h) "Standard lodging unit" means each bedroom in:
(i) a hotel;
(ii) a motel;
(iii) a bed and breakfast establishment;
(iv) an inn;
(v) a condominium that is:
(A) part of a rental pool; or
(B) regularly rented out for a time period of less than 30 consecutive days;
(vi) a property used as a residence that is:
(A) part of a rental pool; or
(B) regularly rented out for a time period of less than 30 consecutive days; or
(vii) a unit similar to Subsections (1)(h)(i) through (vi) as determined by the commission by rule.
(i) "Standard lodging unit capacity of a municipality" means the product of:
(i) the total number of standard lodging units within the incorporated boundaries of a municipality on the first day of the calendar quarter during which the municipality files the form described in Subsection (3); and
(ii) three.
(j) "Transient room capacity" means the sum of:
(i) the high-occupancy lodging unit capacity of a municipality;
(ii) the recreational lodging unit capacity of a municipality;
(iii) the special lodging unit capacity of a municipality; and
(iv) the standard lodging unit capacity of a municipality.
(2) A municipality that imposes a tax under this part shall provide the commission the following information as provided in this section:
(a) the high-occupancy lodging unit capacity of the municipality;
(b) the recreational lodging unit capacity of the municipality;
(c) the special lodging unit capacity of the municipality; and
(d) the standard lodging unit capacity of the municipality.
(3) A municipality shall file with the commission the information required by Subsection (2):
(a) on a form provided by the commission; and
(b) on or before:
(i) for a municipality that is required by Section 59-12-403 to provide notice to the commission, the day on which the municipality provides the notice required by Section 59-12-403 to the commission; or
(ii) for a municipality that is not required by Section 59-12-403 to provide notice to the commission, July 1 of each year.
(4) If the commission determines that a municipality that files the form described in Subsection (3) has a transient room capacity that is less than 66% of the municipality's permanent population, the commission shall notify the municipality in writing:
(a) that the municipality's transient room capacity is less than 66% of the municipality's permanent population; and
(b)
(i) for a municipality that is required by Section 59-12-403 to provide notice to the commission, within 30 days after the day on which the municipality provides the notice to the commission; or
(ii) for a municipality that is not required by Section 59-12-403 to provide notice to the commission, on or before September 1.
(5)
(a) For a municipality that does not impose a tax under Section 59-12-401 on the day on which the municipality files the form described in Subsection (3), if the commission provides written notice described in Subsection (4) to the municipality, the municipality may not impose a tax under this part until the municipality meets the requirements of this part to enact the tax.
(b) For a municipality that is not required by Section 59-12-403 to provide notice to the commission, if the commission provides written notice described in Subsection (4) to the municipality for three consecutive calendar years, the municipality may not impose a tax under this part:
(i) beginning on July 1 of the year after the year during which the commission provided written notice described in Subsection (4):
(A) to the municipality; and
(B) for the third consecutive calendar year; and
(ii) until the municipality meets the requirements of this part to enact the tax.
(6) The requirements of this section do not apply to a municipality that:
(a) is a creating entity of a major sporting event venue zone; and
(b) only imposes a tax authorized under this part on transactions that occur within the sales and use tax boundary of a major sporting event venue zone.
(7) For purposes of this section, population for each municipality shall be based on, to the extent not otherwise required by federal law:
(a) the most recent estimate from the Utah Population Committee created in Section 63C-20-103; or
(b) if the Utah Population Committee estimate is not available for each municipality and unincorporated area, the adjusted sub-county population estimate provided by the Utah Population Committee in accordance with Section 63C-20-104.
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
As used in this part:
(1) "Airport facility" means an airport of regional significance, and includes:
(a) an appurtenance to an airport, including a fixed guideway that provides transportation service to or from the airport;
(b) a control tower, including a radar system;
(c) a public area of an airport; or
(d) a terminal facility.
(2) "Airport of regional significance" means the same as that term is defined in Section 59-12-2202.
(3) "All-terrain type I vehicle" means the same as that term is defined in Section 41-22-2.
(4) "All-terrain type II vehicle" means the same as that term is defined in Section 41-22-2.
(5) "All-terrain type III vehicle" means the same as that term is defined in Section 41-22-2.
(6) "Convenience store" means a retail establishment described in NAICS Code 445131, Convenience Retailers, of the 2022 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget.
(7) "Convention facility" means any publicly owned or operated convention center, sports arena, or other facility at which conventions, conferences, and other gatherings are held and whose primary business or function is to host such conventions, conferences, and other gatherings.
(8) "Cultural facility" means any publicly owned or operated museum, theater, art center, music hall, or other cultural or arts facility.
(9)
(a) "Customized" means prepared or heated by a seller for on-premise or immediate consumption at the request or specification of the purchaser.
(b) "Customized" does not include a purchaser specifying the quantity.
(10) "Gas station" means a retail establishment at which the primary purpose or function is the sale of fuel.
(11) "Grocery store" means a retail establishment at which the primary business or function is the sale of food or food ingredients for off-premise, but not immediate, consumption.
(12)
(a) "Off-highway vehicle" means any snowmobile, all-terrain type I vehicle, all-terrain type II vehicle, all-terrain type III vehicle, or motorcycle.
(b) "Off-highway vehicle" does not include a vehicle that is a motor vehicle under Section 41-1a-102.
(13) "Motorcycle" means the same as that term is defined in Section 41-22-2.
(14) "Recreation facility" or "tourist facility" means any publicly owned or operated park, campground, marina, dock, golf course, water park, historic park, monument, planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
(15)
(a) "Recreational vehicle" means a vehicular unit other than a mobile home, primarily designed as a temporary dwelling for travel, recreational, or vacation use, that is pulled by another vehicle.
(b) "Recreational vehicle" includes:
(i) a travel trailer;
(ii) a camping trailer; and
(iii) a fifth wheel trailer.
(c) "Recreational vehicle" does not include a vehicle that is a motor vehicle under Section 41-1a-102.
(16)
(a) "Restaurant" means a retail establishment at which the primary business or function is the sale of prepared food for immediate or on-premises consumption.
(b) "Restaurant" includes a coffee shop, cafeteria, luncheonette, soda fountain, dinner theater, or fast-food service where food is prepared for immediate consumption.
(c) "Restaurant" does not include:
(i) a convenience store;
(ii) a gas station;
(iii) a grocery store; or
(iv) a theater that sells food items other than a dinner theater.
(17) "Snowmobile" means the same as that term is defined in Section 41-22-2.
(18) "Travel trailer," "camping trailer," or "fifth wheel trailer" means a portable vehicle without motive power, designed as a temporary dwelling for travel, recreational, or vacation use that does not require a special highway movement permit when drawn by a self-propelled motor vehicle.
(1)
(a) In addition to any other taxes, a county legislative body may impose, as provided in this part, a tax as follows:
(i) except as provided in Subsection (1)(c):
(A) a county legislative body may impose a tax of not to exceed 3% on short-term rentals of motor vehicles; and
(B) a county legislative body imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on short-term rentals of motor vehicles;
(ii) a county legislative body may impose a tax of not to exceed 7% on short-term rentals of off-highway vehicles and recreational vehicles;
(iii) a county legislative body may impose a tax of not to exceed 1% of sales of:
(A) alcoholic beverages, food and food ingredients, or prepared food sold by a restaurant; and
(B) customized prepared food sold by a convenience store, a gas station, or a grocery store;
(iv) a county legislative body of a county of the first class, as classified in Section 17-60-104, may impose a tax of not to exceed .5% on charges for the accommodations and services described in Subsection 59-12-103(1)(i); and
(v) if a county legislative body imposes a tax under Subsection (1)(a)(i), a tax at the same rate applies to car sharing of less than 30 days.
(b) A county legislative body that imposes a tax under this Subsection (1) shall comply with the reporting requirements described in Sections 17-78-704 and 17E-2-406.
(c) A motor vehicle is exempt from a tax under this Subsection (1) if:
(i) the motor vehicle has a gross vehicle weight rating of 14,001 pounds or more;
(ii) the motor vehicle is rented as a personal household goods moving van; or
(iii) the lease or rental of the motor vehicle is made for the purpose of temporarily replacing a person's motor vehicle that is being repaired in accordance with a repair agreement or an insurance agreement.
(2)
(a) Subject to Subsection (2)(c), a county may use revenue from the imposition of a tax under Subsection (1) for:
(i) financing tourism promotion; and
(ii) the development, operation, and maintenance of:
(A) an airport facility;
(B) a convention facility;
(C) a cultural facility;
(D) a recreation facility; or
(E) a tourist facility.
(b)
(i) In addition to the uses described in Subsection (2)(a) and subject to Subsection (2)(b)(ii), a county of the fourth, fifth, or sixth class, as classified in Section 17-60-104, or a county with a population density of fewer than 15 people per square mile may expend the revenue from the imposition of a tax under Subsections (1)(a)(i) and (ii) on the following activities to mitigate the impacts of tourism:
(A) solid waste disposal;
(B) search and rescue activities;
(C) law enforcement activities;
(D) emergency medical services; or
(E) fire protection services.
(ii) A county may only expend the revenue as outlined in Subsection (2)(b)(i) if the county's tourism tax advisory board created under Subsection 17-31-8(1)(a) has prioritized the use of revenue to mitigate the impacts of tourism.
(c) A county of the first class, as classified in Section 17-60-104, shall expend at least $450,000 each year of the revenue from the imposition of a tax authorized by Subsection (1)(a)(iv) within the county to fund a marketing and ticketing system designed to:
(i) promote tourism in ski areas within the county by persons that do not reside within the state; and
(ii) combine the sale of:
(A) ski lift tickets; and
(B) accommodations and services described in Subsection 59-12-103(1)(i).
(3) A tax imposed under this part may be pledged as security for bonds, notes, or other evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local Government Bonding Act, or a community reinvestment agency under Title 17C, Chapter 1, Part 5, Agency Bonds, to finance:
(a) an airport facility;
(b) a convention facility;
(c) a cultural facility;
(d) a recreation facility; or
(e) a tourist facility.
(4)
(a) To impose a tax under Subsection (1), the county legislative body shall adopt an ordinance imposing the tax.
(b) The ordinance under Subsection (4)(a) shall include provisions substantially the same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on those items and sales described in Subsection (1).
(c) The name of the county as the taxing agency shall be substituted for that of the state where necessary, and an additional license is not required if one has been or is issued under Section 59-12-106.
(5) To maintain in effect a tax ordinance adopted under this part, each county legislative body shall adopt, within 30 days of any amendment of any applicable provisions of Part 1, Tax Collection, amendments to the county's tax ordinance to conform with the applicable amendments to Part 1, Tax Collection.
(6)
(a) Regardless of whether a county of the first class, as classified in Section 17-60-104, creates a tourism tax advisory board in accordance with Section 17-78-706, the county legislative body shall create a tax advisory board in accordance with this Subsection (6).
(b) The tax advisory board shall be composed of nine members appointed as follows:
(i) four members shall be residents of a county of the first class, as classified in Section 17-60-104, appointed by the county legislative body; and
(ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or towns within the county of the first class, as classified in Section 17-60-104, appointed by an organization representing all mayors of cities and towns within the county of the first class, as classified in Section 17-60-104.
(c) Five members of the tax advisory board constitute a quorum.
(d) The county legislative body of the county of the first class, as classified in Section 17-60-104, shall determine:
(i) terms of the members of the tax advisory board;
(ii) procedures and requirements for removing a member of the tax advisory board;
(iii) voting requirements, except that action of the tax advisory board shall be by at least a majority vote of a quorum of the tax advisory board;
(iv) chairs or other officers of the tax advisory board;
(v) the procedures for calling meetings and the frequency of meetings; and
(vi) the compensation, if any, of members of the tax advisory board.
(e) The tax advisory board under this Subsection (6) shall advise the county legislative body of the county of the first class, as classified in Section 17-60-104, on the expenditure of revenue collected within the county from the taxes described in Subsection (1).
(7)
(a) Except as provided in Subsection (7)(b), a tax authorized under this part shall be administered, collected, enforced, and interpreted in accordance with:
(i) the same procedures used to administer, collect, enforce, and interpret the tax under:
(A) Part 1, Tax Collection; or
(B) Part 2, Local Sales and Use Tax Act; and
(ii) Chapter 1, General Taxation Policies.
(b) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or Subsections 59-12-205(2) and (4) through (6).
(c) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission receives from a tax under this part.
(8)
(a) The commission shall distribute the revenue for a tax imposed in accordance with Subsection (1), other than in accordance with Subsection (1)(a)(i)(B), to the county imposing the tax.
(b) The commission shall distribute the revenue generated by the tax imposed in accordance with Subsection (1)(a)(i)(B) to each county imposing a tax in accordance with Subsection (1)(a)(i)(B) according to the following formula:
(i) the commission shall distribute 70% of the revenue based on the percentages generated by dividing the revenue collected by each county under Subsection (1)(a)(i)(B) by the total revenue collected by all counties under Subsection (1)(a)(i)(B); and
(ii) the commission shall distribute 30% of the revenue based on the percentages generated by dividing the population of each county collecting a tax under Subsection (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
(c) Population for purposes of Subsection (8)(b) shall be based on, to the extent not otherwise required by federal law:
(i) the estimate of the Utah Population Committee created in Section 63C-20-103; or
(ii) if the Utah Population Committee estimate is not available, the most recent census or census estimate of the United States Bureau of the Census.
(9)
(a) For purposes of this Subsection (9):
(i) "Annexation" means an annexation to a county under Title 17, Chapter 61, Part 3, County Annexation.
(ii) "Annexing area" means an area that is annexed into a county.
(b)
(i) Except as provided in Subsection (9)(c), if a county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the day on which the commission receives notice meeting the requirements of Subsection (9)(b)(ii) from the county.
(ii) The notice described in Subsection (9)(b)(i)(B) shall state:
(A) that the county will enact or repeal a tax or change the rate of a tax under this part;
(B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
(D) if the county enacts the tax or changes the rate of the tax described in Subsection (9)(b)(ii)(A), the rate of the tax.
(c)
(i) If the billing period for a transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of the tax or the tax rate increase shall take effect on the first day of the first billing period that begins after the effective date of the enactment of the tax or the tax rate increase.
(ii) If the billing period for a transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax rate decrease shall take effect on the first day of the last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.
(d)
(i) Except as provided in Subsection (9)(e), if the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the day on which the commission receives notice meeting the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
(ii) The notice described in Subsection (9)(d)(i)(B) shall state:
(A) that the annexation described in Subsection (9)(d)(i) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
(C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
(D) if the county enacts the tax or changes the rate of the tax described in Subsection (9)(d)(ii)(A), the rate of the tax.
(e)
(i) If the billing period for a transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of the tax or the tax rate increase shall take effect on the first day of the first billing period that begins after the effective date of the enactment of the tax or the tax rate increase.
(ii) If the billing period for a transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax rate decrease shall take effect on the first day of the last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
The Utah Legislature finds and declares that:
(1) recreational and zoological facilities and the botanical, cultural, and zoological organizations of the state of Utah enhance the quality of life of Utah's citizens, as well as the continuing growth of Utah's tourist, convention, and recreational industries;
(2) Utah was the first state in this nation to create and financially support a state arts agency and remains committed to the nurturing and growth of cultural pursuits;
(3) Utah has provided, and intends to continue, the financial support of recreational and zoological facilities and the botanical, cultural, and zoological organizations of this state;
(4) the state's support of its recreational and zoological facilities and its botanical, cultural, and zoological organizations has not been sufficient to assure the continuing existence and growth of these facilities and organizations, and the Legislature believes that local government may wish to play a greater role in the support of these organizations; and
(5) in a county of the first class, it is necessary and appropriate to allocate a tax imposed under this part in a manner that provides adequate predictable support to a fixed number of botanical and cultural organizations and that gives the county legislative body discretion to allocate the tax revenues to other botanical and cultural organizations.
As used in this part:
(1) "Administrative unit" means a division of a private nonprofit organization or institution that:
(a) would, if it were a separate entity, be a botanical organization or cultural organization; and
(b) consistently maintains books and records separate from those of the administrative unit's parent organization.
(2) "Aquarium" means a park or building where a collection of water animals and plants is kept for study, conservation, and public exhibition.
(3) "Aviary" means a park or building where a collection of birds is kept for study, conservation, and public exhibition.
(4) "Botanical organization" means:
(a) a private nonprofit organization or institution having as the private nonprofit organization's or institution's primary purpose the advancement and preservation of plant science through horticultural display, botanical research, and community education; or
(b) an administrative unit.
(5) "Cultural facility" means the same as that term is defined in Section 59-12-602.
(6)
(a) "Cultural organization" means:
(i) a private nonprofit organization or institution having as the private nonprofit organization's or institution's primary purpose the advancement and preservation of:
(A) natural history;
(B) art;
(C) music;
(D) theater;
(E) dance; or
(F) cultural arts, including literature, a motion picture, or storytelling; and
(ii) an administrative unit.
(b) "Cultural organization" includes, for purposes of Subsections 59-12-704(1)(d) and (10) only:
(i) a private nonprofit organization or institution having as the private nonprofit organization's or institution's primary purpose the advancement and preservation of history; or
(ii) a municipal or county cultural council having as the municipal or county cultural council's primary purpose the advancement and preservation of:
(A) history;
(B) natural history;
(C) art;
(D) music;
(E) theater; or
(F) dance.
(c) "Cultural organization" does not include:
(i) an agency of the state;
(ii) except as provided in Subsection (6)(b)(ii), a political subdivision of the state;
(iii) an educational institution for which annual revenue is directly derived more than 50% from state funds; or
(iv) in a county of the first or second class, a radio or television broadcasting network or station, cable communications system, newspaper, or magazine.
(7) "Institution" means an institution of higher education listed in Subsection 53H-1-102(1)(a).
(8) "Recreational facility" means a publicly owned or operated park, campground, marina, dock, golf course, playground, athletic field, gymnasium, swimming pool, trail system, or other facility used for recreational purposes.
(9) "Rural radio station" means a nonprofit radio station based in a county of the third, fourth, fifth, or sixth class.
(10) In a county of the first class, "zoological facility" means a public, public-private partnership, or private nonprofit building, exhibit, utility and infrastructure, walkway, pathway, roadway, office, administration facility, public service facility, educational facility, enclosure, public viewing area, animal barrier, animal housing, animal care facility, and veterinary and hospital facility related to the advancement, exhibition, or preservation of a mammal, bird, reptile, fish, or an amphibian.
(11)
(a)
(i) Except as provided in Subsection (11)(a)(ii), "zoological organization" means a public, public-private partnership, or private nonprofit organization having as its primary purpose the advancement and preservation of zoology.
(ii) In a county of the first class, "zoological organization" means a nonprofit organization having as the nonprofit organization's primary purpose the advancement and exhibition of a mammal, bird, reptile, fish, or an amphibian to an audience of 75,000 or more persons annually.
(b) "Zoological organization" does not include an agency of the state, educational institution, radio or television broadcasting network or station, cable communications system, newspaper, or magazine.
(12) "Zoological park" means a park or garden where a collection of wild animals is kept for study, conservation, and public exhibition.
(1)
(a) Subject to the other provisions of this section, a county legislative body may submit an opinion question to the residents of that county, by majority vote of all members of the legislative body, so that each resident of the county, except residents in municipalities that have already imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, has an opportunity to express the resident's opinion on the imposition of a local sales and use tax of .1% on the transactions described in Subsection 59-12-103(1) located within the county, to:
(i) fund cultural facilities, recreational facilities, and zoological facilities, botanical organizations, cultural organizations, and zoological organizations, and rural radio stations, in that county; or
(ii) provide funding for a botanical organization, cultural organization, or zoological organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in furtherance of the botanical organization's, cultural organization's, or zoological organization's primary purpose.
(b) The opinion question required by this section shall state:
"Shall (insert the name of the county), Utah, be authorized to impose a .1% sales and use tax for (list the purposes for which the revenue collected from the sales and use tax shall be expended)?"
(c) A county legislative body may not impose a tax under this section on:
(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104;
(ii) sales and uses within a municipality that has already imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; and
(iii) except as provided in Subsection (1)(e), amounts paid or charged for food and food ingredients.
(d) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(e) A county legislative body imposing a tax under this section shall impose the tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
(f) The election shall follow the procedures outlined in Title 11, Chapter 14, Local Government Bonding Act.
(2)
(a) If the county legislative body determines that a majority of the county's registered voters voting on the imposition of the tax have voted in favor of the imposition of the tax in accordance with Subsection (1), the county legislative body may impose the tax by a majority vote of all members of the legislative body on the transactions:
(i) described in Subsection (1); and
(ii) within the county, including the cities and towns located in the county, except those cities and towns that have already imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities.
(b) A county legislative body may revise county ordinances to reflect statutory changes to the distribution formula or eligible recipients of revenue generated from a tax imposed under Subsection (2)(a) without submitting an opinion question to residents of the county.
(3)
(a) After the residents of a county of the third, fourth, fifth, or sixth class, as classified in Section 17-60-104, authorize a tax under this part in accordance with Subsection (1) for two consecutive 10-year periods, the tax may be reauthorized only by a majority vote of the members of the county legislative body.
(b) For purposes of reauthorizing the tax in accordance with Subsection (3)(a), the county legislative body shall post the purposes for imposing the tax at least 24 hours before the meeting at which the county legislative body votes to reauthorize the tax.
(4) Subject to Section 59-12-704, a county shall expend revenue collected from a tax imposed under Subsection (2) or (3):
(a) to fund cultural facilities, recreational facilities, and zoological facilities located within the county or a city or town located in the county, except a city or town that has already imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities;
(b) to fund ongoing operating expenses of:
(i) recreational facilities described in Subsection (4)(a);
(ii) botanical organizations, cultural organizations, and zoological organizations within the county; and
(iii) rural radio stations within the county; and
(c)
(i) as stated in the opinion question described in Subsection (1) if the county authorizes the tax in accordance with Subsections (1) and (2); or
(ii) for the purposes posted by the members of the county legislative body if the county legislative body reauthorizes the tax in accordance with Subsection (3).
(5)
(a) A tax authorized under this part shall be:
(i) except as provided in Subsection (5)(b), administered, collected, enforced, and interpreted in accordance with:
(A) the same procedures used to administer, collect, enforce, and interpret the tax under:
(I) Part 1, Tax Collection; or
(II) Part 2, Local Sales and Use Tax Act; and
(B) Chapter 1, General Taxation Policies; and
(ii) levied for a period of 10 years and may be reauthorized at the end of the 10-year period in accordance with this section.
(b) A tax under this part is not subject to Subsections 59-12-205(2) and (4) through (6).
(6)
(a) For purposes of this Subsection (6):
(i) "Annexation" means an annexation to a county under Title 17, Chapter 61, Part 2, Consolidation of Counties, or Part 3, County Annexation.
(ii) "Annexing area" means an area that is annexed into a county.
(b)
(i) Except as provided in Subsection (6)(c) or (d), and subject to Subsection (7), if a county enacts, reauthorizes, or repeals a tax under this part, the enactment, reauthorization, or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (6)(b)(ii) from the county.
(ii) The notice described in Subsection (6)(b)(i)(B) shall state:
(A) that the county will enact, reauthorize, or repeal a tax under this part;
(B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
(D) if the county enacts or reauthorizes the tax described in Subsection (6)(b)(ii)(A), the rate of the tax.
(c)
(i) If the billing period for a transaction begins before the effective date of the enactment or reauthorization of the tax under this section, the enactment or reauthorization of the tax takes effect on the first day of the first billing period that begins on or after the effective date of the enactment or reauthorization of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax imposed under this section.
(d)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, reauthorization, or repeal of a tax described in Subsection (6)(b)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, reauthorization, or repeal under Subsection (6)(b)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(e)
(i) Except as provided in Subsection (6)(f) or (g), if an annexation will result in the enactment or repeal of a tax under this part for an annexing area, the enactment or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (6)(e)(ii) from the county that annexes the annexing area.
(ii) The notice described in Subsection (6)(e)(i)(B) shall state:
(A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or repeal of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
(C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
(D) the rate of the tax described in Subsection (6)(e)(ii)(A).
(f)
(i) If the billing period for a transaction begins before the effective date of the enactment of the tax under this section, the enactment of the tax takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax imposed under this section.
(g)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (6)(e)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under Subsection (6)(e)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(7)
(a) If a county reauthorizes a tax under this part in accordance with Subsection (3)(a) or (5)(a)(ii), the county shall provide to the commission notice of the reauthorization that meets the requirements of Subsection (6)(b)(ii) at least 90 days before the first day of the calendar quarter in which the reauthorization first takes effect.
(b) The commission may not enforce a tax under this part due for reauthorization unless the commission receives timely notice of the reauthorization as provided in Subsection (7)(a).
(1) Except as provided in Subsections (7)(b) and (9), and subject to the requirements of this section, the county legislative body of a county of the first class shall distribute annually any revenue collected under this part to support cultural facilities, recreational facilities, and zoological facilities and botanical organizations, cultural organizations, and zoological organizations within that first class county as follows:
(a) 30% of the revenue to support cultural facilities and recreational facilities located within the county;
(b) 16% of the revenue to support zoological facilities and zoological organizations located within the county as provided in Subsection (2);
(c) as provided in Subsection (5), 45% of the revenue to support no more than 22 botanical organizations and cultural organizations:
(i) each of which has average annual operating expenses of more than $250,000 as determined under Subsection (7); and
(ii) whose activities impact all or a significant region of the county or state; and
(d) 9% of the revenue to botanical organizations and cultural organizations that do not receive revenue under Subsection (1)(c) in communities throughout the county as determined by the county legislative body.
(2)
(a) The distribution described in Subsection (1)(b) shall support no more than three zoological facilities and zoological organizations located within the county and having average annual operating expenses of $1,500,000 or more as determined under Subsection (7).
(b) For the calendar years that begin on or after January 1, 2025, and on or before January 1, 2029, the county shall distribute the 16% of the revenue as follows:
(i) 8.25% of the revenue to support a zoological organization having as the zoological organization's primary purpose the operation of an aviary, or a zoological facility that is part of or integrated with an aviary;
(ii) an amount equal to the amount distributed during the previous calendar year to support a zoological organization having as the zoological organization's primary purpose the operation of a zoological park, or a zoological facility that is part of or integrated with a zoological park; and
(iii) the remaining amount to a zoological organization having as the zoological organization's primary purpose the operation of an aquarium, or a zoological facility that is part of or integrated with an aquarium.
(c) For a calendar year that begins on or after January 1, 2030, the county shall provide by ordinance for the distribution of the 16% of revenue to no more than three zoological facilities and zoological organizations located within the county and having average annual operating expenses of $1,500,000 or more as determined under Subsection (7).
(3) If more than one zoological organization or zoological facility qualifies to receive the money described in Subsection (2), the county legislative body shall distribute the money described in the subsection for which more than one zoological organization or zoological facility qualifies to whichever zoological organization or zoological facility the county legislative body determines is most appropriate, except that a zoological organization or zoological facility may not receive money under more than one subsection under Subsection (2).
(4) If no zoological organization or zoological facility qualifies to receive money described in Subsection (2), the county legislative body shall distribute the money described in the subsection for which no zoological organization or zoological facility qualifies among the zoological organizations or zoological facilities qualifying for and receiving money under the other subsections in proportion to the zoological organizations' or zoological facilities' average annual operating expenses as determined under Subsection (7).
(5)
(a) Subject to Subsection (5)(b), the county legislative body shall distribute the money described in Subsection (1)(c) among the botanical organizations and cultural organizations in proportion to the botanical organizations' and cultural organizations' average annual operating expenses as determined under Subsection (7).
(b) The county may not distribute to any botanical organization or cultural organization described in Subsection (1)(c) an amount that exceeds 35% of the botanical organization's or cultural organization's operating budget.
(6)
(a) The county legislative body of each county shall create an advisory board to advise the county legislative body on disbursement of funds to botanical organizations and cultural organizations under Subsection (1)(c).
(b)
(i) The advisory board under Subsection (6)(a) shall consist of seven members appointed by the county legislative body.
(ii) In a county of the first class, the Division of Arts and Museums created in Section 9-6-201 shall appoint two of the seven members of the advisory board under Subsection (6)(a).
(7)
(a) Except as provided in Subsection (7)(b), to be eligible to receive money collected by the county under this part, a botanical organization, cultural organization, zoological organization, and zoological facility located within a county of the first class shall, every year:
(i) calculate its average annual operating expenses based upon audited operating expenses for three preceding fiscal years; and
(ii) submit to the appropriate county legislative body:
(A) a verified audit of annual operating expenses for each of those three preceding fiscal years; and
(B) the average annual operating expenses as calculated under Subsection (7)(a)(i).
(b) The county legislative body may waive the operating expenses reporting requirements under Subsection (7)(a) for organizations described in Subsection (1)(d).
(8) When calculating average annual operating expenses as described in Subsection (7), each botanical organization, cultural organization, and zoological organization shall use the same three-year fiscal period as determined by the county legislative body.
(9)
(a) By July 1 of each year, the county legislative body of a first class county may index the threshold amount in Subsections (1)(c) and (2)(a).
(b) Any change under Subsection (9)(a) shall be rounded off to the nearest $100.
(10)
(a) In a county except for a county of the first class, the county legislative body shall by ordinance provide for the distribution of the entire amount of the revenue generated by the tax imposed by this section:
(i) as provided in this Subsection (10); and
(ii) as stated in:
(A) the opinion question described in Subsection 59-12-703(1) if the county authorizes the tax in accordance with Subsections 59-12-703(1) and (2); or
(B) the purposes posted as required in Subsection 59-12-703(3) if the county legislative body reauthorizes the tax in accordance with Subsection 59-12-703(3).
(b) In accordance with an interlocal agreement established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, a county described in Subsection (10)(a) may distribute to a city, town, or political subdivision within the county revenue generated by a tax under this part.
(c) The revenue distributed under Subsection (10)(a) or (b) shall be used for one or more organizations or facilities defined in Section 59-12-702 regardless of whether the revenue is distributed:
(i) directly by the county described in Subsection (10)(a) to be used for an organization or facility defined in Section 59-12-702; or
(ii) in accordance with an interlocal agreement described in Subsection (10)(b).
(11) A county legislative body may retain up to 1.5% of the proceeds from a tax under this part for the cost of administering this part.
(12) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this part.
Each botanical organization, cultural organization, or zoological organization that receives money from a tax imposed under this part and that periodically offers a waived or discounted admission fee shall make the waived or discounted admission fee available to all residents of the state.
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
As used in this part:
(1) "Emergency medical services" means the same as that term is defined in Section 53-2d-101.
(2) "Federally qualified health center" means the same as that term is defined in 42 U.S.C. Sec. 1395x.
(3) "Freestanding urgent care center" means a facility that provides outpatient health care service:
(a) on an as-needed basis, without an appointment;
(b) to the public;
(c) for the diagnosis and treatment of a medical condition if that medical condition does not require hospitalization or emergency intervention for a life threatening or potentially permanently disabling condition; and
(d) including one or more of the following services:
(i) a medical history physical examination;
(ii) an assessment of health status; or
(iii) treatment:
(A) for a variety of medical conditions; and
(B) that is commonly offered in a physician's office.
(4) "Nursing care facility" means the same as that term is defined in Section 26B-2-201.
(5) "Rural city hospital" means a hospital owned by a city that is located within a third, fourth, fifth, or sixth class county.
(6) "Rural county health care facility" means a:
(a) rural county hospital; or
(b) rural county nursing care facility.
(7) "Rural county hospital" means a hospital owned by a county that is:
(a) a third, fourth, fifth, or sixth class county, as defined in Section 17-60-104; and
(b) located outside of a standard metropolitan statistical area, as designated by the United States Bureau of the Census.
(8) "Rural county nursing care facility" means a nursing care facility owned by:
(a) a county that is:
(i) a third, fourth, fifth, or sixth class county, as defined in Section 17-60-104; and
(ii) located outside of a standard metropolitan statistical area, as designated by the United States Census Bureau; or
(b) a special service district if the special service district is:
(i) created for the purpose of operating the nursing care facility; and
(ii) within a county that is:
(A) a third, fourth, fifth, or sixth class county, as defined in Section 17-60-104; and
(B) located outside of a standard metropolitan statistical area, as designated by the United States Census Bureau.
(9) "Rural emergency medical services" means emergency medical services that are provided by a county that is:
(a) a third, fourth, fifth, or sixth class county, as defined in Section 17-60-104; and
(b) located outside of a standard metropolitan statistical area, as designated by the United States Census Bureau.
(10) "Rural health clinic" means the same as that term is defined in 42 U.S.C. Sec. 1395x.
(1)
(a) A county legislative body of a county of the third, fourth, fifth, or sixth class may impose a sales and use tax of up to 1% on the transactions described in Subsection 59-12-103(1) located within the county.
(b) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax under this section on:
(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104;
(ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in a city that imposes a tax under Section 59-12-804; and
(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and food ingredients.
(c) For purposes of this Subsection (1), the location of a transaction is determined in accordance with Sections 59-12-211 through 59-12-215.
(d) A county legislative body imposing a tax under this section shall impose the tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
(2)
(a) Before imposing a tax under Subsection (1), a county legislative body shall obtain approval to impose the tax from a majority of the:
(i) members of the county's legislative body; and
(ii) county's registered voters voting on the imposition of the tax.
(b) The county legislative body shall conduct the election according to the procedures and requirements of Title 11, Chapter 14, Local Government Bonding Act.
(3) Subject to Subsection (4), a county legislative body may use money collected from a tax imposed under Subsection (1) to fund:
(a) the following costs associated with a federally qualified health center within the county, a freestanding urgent care center within the county, a rural county health care facility within the county, or a rural health clinic within the county:
(i) ongoing operating expenses of the center, clinic, or facility;
(ii) the acquisition of land for the center, clinic, or facility; or
(iii) the design, construction, equipping, or furnishing of the center, clinic, or facility;
(b) rural emergency medical services within the county; or
(c) a combination of the activities described in this Subsection (3).
(4)
(a) For a tax enacted on or after July 1, 2024, a county legislative body may use money collected from a tax imposed under Subsection (1) to fund:
(i) the costs described in Subsection (3)(a);
(ii) the following activities to mitigate the impacts of visitors within the county:
(A) emergency medical services;
(B) solid waste disposal;
(C) search and rescue activities;
(D) law enforcement activities; or
(E) fire protection services;
(iii) avalanche forecasting within the county; or
(iv) a combination of the activities described in this Subsection (4)(a).
(b) For a tax increased on or after July 1, 2024, a county legislative body may use the money collected from the increased tax rate to fund the activities described in Subsections (4)(a)(i) through (iv).
(5)
(a) A tax under this section shall be:
(i) except as provided in Subsection (5)(b), administered, collected, enforced, and interpreted in accordance with:
(A) the same procedures used to administer, collect, enforce, and interpret the tax under:
(I) Part 1, Tax Collection; or
(II) Part 2, Local Sales and Use Tax Act; and
(B) Chapter 1, General Taxation Policies; and
(ii) levied for a period of 10 years and may be reauthorized at the end of the 10-year period by the county legislative body and the county's registered voters in accordance with the procedures and requirements for levying a tax under Subsection (2), except as provided in Subsection (5)(d).
(b) A tax under this section is not subject to Subsections 59-12-205(2) and (4) through (6).
(c) A county legislative body shall distribute money collected from a tax under this section quarterly.
(d)
(i) This Subsection (5)(d) applies to a county that imposes a tax under this section on or before January 1, 2024.
(ii) Notwithstanding Subsection (5)(a)(ii), a county described in Subsection (5)(d)(i) is not subject to the voter approval requirement in Subsection (2) for the first time the county reauthorizes the tax at the end of the 10-year levy period after January 1, 2024.
(iii) The voter approval requirement in Subsection (2) applies to a county described in Subsection (5)(d)(i) for any time the county reauthorizes the tax at the end of the 10-year levy period after the reauthorization described in Subsection (5)(d)(ii).
(6) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this section.
(1)
(a) A city legislative body may impose a sales and use tax of up to 1%:
(i) on the transactions described in Subsection 59-12-103(1) located within the city; and
(ii) to fund rural city hospitals in that city.
(b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax under this section on:
(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and
(ii) except as provided in Subsection (1)(d), amounts paid or charged for food and food ingredients.
(c) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(d) A city legislative body imposing a tax under this section shall impose the tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
(2)
(a) Before imposing a tax under Subsection (1)(a), a city legislative body shall obtain approval to impose the tax from a majority of the:
(i) members of the city legislative body; and
(ii) city's registered voters voting on the imposition of the tax.
(b) The city legislative body shall conduct the election according to the procedures and requirements of Title 11, Chapter 14, Local Government Bonding Act.
(3) The money collected from a tax imposed under Subsection (1) may only be used to fund:
(a) ongoing operating expenses of a rural city hospital;
(b) the acquisition of land for a rural city hospital; or
(c) the design, construction, equipping, or furnishing of a rural city hospital.
(4)
(a) A tax under this section shall be:
(i) except as provided in Subsection (4)(b), administered, collected, enforced, and interpreted in accordance with:
(A) the same procedures used to administer, collect, enforce, and interpret the tax under:
(I) Part 1, Tax Collection; or
(II) Part 2, Local Sales and Use Tax Act; and
(B) Chapter 1, General Taxation Policies; and
(ii) levied for a period of 10 years and may be reauthorized at the end of the 10-year period by the city legislative body and the city's registered voters in accordance with the procedures and requirements for levying a tax under Subsection (2), except as provided in Subsection (4)(c).
(b) A tax under this section is not subject to Subsections 59-12-205(2) and (4) through (6).
(c)
(i) This Subsection (4)(c) applies to a city that imposes a tax under this section on or before January 1, 2024.
(ii) Notwithstanding Subsection (4)(a)(ii), a city described in Subsection (4)(c)(i) is not subject to the voter approval requirement in Subsection (2) for the first time the city reauthorizes the tax at the end of the 10-year levy period after January 1, 2024.
(iii) The voter approval requirement in Subsection (2) applies to a city described in Subsection (4)(c)(i) for any time the city reauthorizes the tax at the end of the 10-year levy period after the reauthorization described in Subsection (4)(c)(ii).
(5) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this section.
(1) Except as provided in Subsection 59-12-804(5) and Subsection (2), all money collected from a tax under Section 59-12-804 shall be distributed quarterly by the city legislative body to rural city hospitals.
(2) If there is more than one rural city hospital in a city, the money collected from a tax under Section 59-12-804 shall be distributed as determined by the city legislative body.
(1) For purposes of this section:
(a) "Annexation" means an annexation to:
(i) a county under Title 17, Chapter 61, Part 2, Consolidation of Counties, or Part 3, County Annexation; or
(ii) a city under Title 10, Chapter 2, Part 8, Annexation.
(b) "Annexing area" means an area that is annexed into a county or city.
(2)
(a) Except as provided in Subsection (2)(c) or (d), and subject to Subsection (4), if, on or after July 1, 2004, a county or city enacts, reauthorizes, or repeals a tax or changes the rate of a tax under this part, the enactment, reauthorization, repeal, or change shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (2)(b) from the county or city.
(b) The notice described in Subsection (2)(a)(ii) shall state:
(i) that the county or city will enact, reauthorize, or repeal a tax or change the rate of a tax under this part;
(ii) the statutory authority for the tax described in Subsection (2)(b)(i);
(iii) the effective date of the tax described in Subsection (2)(b)(i); and
(iv) if the county or city enacts or reauthorizes the tax or changes the rate of the tax described in Subsection (2)(b)(i), the rate of the tax.
(c)
(i) The enactment or reauthorization of a tax or a tax rate increase takes effect on the first day of the first billing period:
(A) that begins on or after the effective date of the enactment, reauthorization, or tax rate increase; and
(B) if the billing period for the transaction begins before the effective date of the enactment, reauthorization, or tax rate increase imposed under:
(I) Section 59-12-802; or
(II) Section 59-12-804.
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax or the tax rate decrease imposed under:
(A) Section 59-12-802; or
(B) Section 59-12-804.
(d)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, reauthorization, repeal, or change in the rate of a tax described in Subsection (2)(a) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, reauthorization, repeal, or change in the rate of the tax under Subsection (2)(a).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(3)
(a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (3)(b) from the county or city that annexes the annexing area.
(b) The notice described in Subsection (3)(a)(ii) shall state:
(i) that the annexation described in Subsection (3)(a) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;
(ii) the statutory authority for the tax described in Subsection (3)(b)(i);
(iii) the effective date of the tax described in Subsection (3)(b)(i); and
(iv) if the county or city enacts the tax or changes the rate of the tax described in Subsection (3)(b)(i), the rate of the tax.
(c)
(i) The enactment of a tax or a tax rate increase takes effect on the first day of the first billing period:
(A) that begins on or after the effective date of the enactment of the tax or the tax rate increase; and
(B) if the billing period for the transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under:
(I) Section 59-12-802; or
(II) Section 59-12-804.
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax or the tax rate decrease imposed under:
(A) Section 59-12-802; or
(B) Section 59-12-804.
(d)
(i) If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (3)(a) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of a tax under Subsection (3)(a).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(4)
(a) If a city or county reauthorizes a tax under this part in accordance with Subsection 59-12-802(5) or 59-12-804(4), the city or county shall provide to the commission notice of the reauthorization that meets the requirements of Subsection (3)(b) at least 90 days before the first day of the calendar quarter in which the reauthorization first takes effect.
(5) The commission may not enforce a tax under this part due for reauthorization unless the commission receives timely notice of the reauthorization as provided in Subsection (4)(a).
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
The Legislature finds that a statewide purpose is served by this part in that it enables counties to carry out more effectively the counties' statutorily defined roles as political and legal subdivisions of the state by improving the counties' revenue raising capacities.
(1)
(a)
(i) Subject to Subsections (2) through (7), and in addition to any other tax authorized by this chapter, a county may impose by ordinance a county option sales and use tax of .25% upon the transactions described in Subsection 59-12-103(1).
(ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104.
(b) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(c) The county option sales and use tax under this section shall be imposed:
(i) upon transactions that are located within the county, including transactions that are located within municipalities in the county; and
(ii) except as provided in Subsection (1)(d) or (6), beginning on the first day of January:
(A) of the next calendar year after adoption of the ordinance imposing the tax if the ordinance is adopted on or before May 25; or
(B) of the second calendar year after adoption of the ordinance imposing the tax if the ordinance is adopted after May 25.
(d) The county option sales and use tax under this section shall be imposed:
(i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before September 4, 1997; or
(ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997 but after September 4, 1997.
(2)
(a) Before imposing a county option sales and use tax under Subsection (1), a county shall hold two public hearings on separate days in geographically diverse locations in the county.
(b)
(i) At least one of the hearings required by Subsection (2)(a) shall have a starting time of no earlier than 6 p.m.
(ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven days after the day the first advertisement required by Subsection (2)(c) is published.
(c)
(i) Before holding the public hearings required by Subsection (2)(a), the county shall advertise:
(A) the county's intent to adopt a county option sales and use tax;
(B) the date, time, and location of each public hearing; and
(C) a statement that the purpose of each public hearing is to obtain public comments regarding the proposed tax.
(ii) The advertisement shall be published:
(A) in a newspaper of general circulation in the county once each week for the two weeks preceding the earlier of the two public hearings; and
(B) for the county, as a class A notice under Section 63G-30-102, for two weeks before the day on which the first of the two public hearings is held.
(iii) The advertisement described in Subsection (2)(c)(ii)(A) shall be no less than one-eighth page in size, and the type used shall be no smaller than 18 point and surrounded by a one-quarter inch border.
(iv) The advertisement described in Subsection (2)(c)(ii)(A) may not be placed in that portion of the newspaper where legal notices and classified advertisements appear.
(v) In accordance with Subsection (2)(c)(ii)(A), whenever possible:
(A) the advertisement shall appear in a newspaper that is published at least five days a week, unless the only newspaper in the county is published less than five days a week; and
(B) the newspaper selected shall be one of general interest and readership in the community, and not one of limited subject matter.
(d) The adoption of an ordinance imposing a county option sales and use tax is subject to a local referendum election and shall be conducted as provided in Title 20A, Chapter 7, Part 6, Local Referenda - Procedures.
(3) Beginning no sooner than January 1, 2026, and subject to Section 59-12-205, before application of Subsections (4) through (7), and as described in Section 63N-3-306, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established under Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, the commission, at least annually, shall transfer an amount equal to 100% of the sales and use tax increment as defined in Section 63N-23-101, from the sales and use tax imposed under this part on transactions occurring within an established sales and use tax boundary, as defined in Section 63N-23-101, to a convention center public infrastructure district created in accordance with Section 17D-4-202.1.
(4)
(a) Subject to Subsection (6), if the aggregate population of the counties imposing a county option sales and use tax under Subsection (1) is less than 75% of the state population, the tax levied under Subsection (1) shall be distributed to the county in which the tax was collected.
(b) Subject to Subsection (6), if the aggregate population of the counties imposing a county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state population:
(i) 50% of the tax collected under Subsection (1) in each county shall be distributed to the county in which the tax was collected; and
(ii) except as provided in Subsection (4)(c), 50% of the tax collected under Subsection (1) in each county shall be distributed proportionately among all counties imposing the tax, based on the total population of each county.
(c) Except as provided in Subsection (6), the amount to be distributed annually to a county under Subsection (4)(b)(ii), when combined with the amount distributed to the county under Subsection (4)(b)(i), does not equal at least $75,000, then:
(i) the amount to be distributed annually to that county under Subsection (4)(b)(ii) shall be increased so that, when combined with the amount distributed to the county under Subsection (4)(b)(i), the amount distributed annually to the county is $75,000; and
(ii) the amount to be distributed annually to all other counties under Subsection (4)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under Subsection (4)(c)(i).
(d) The commission shall establish rules to implement the distribution of the tax under Subsections (4)(a), (b), and (c).
(e) Population for each county for purposes of this Subsection (4) shall be based on, to the extent not otherwise required by federal law:
(i) the estimate of the Utah Population Committee created in Section 63C-20-103; or
(ii) if the Utah Population Committee estimate is not available, the most recent census or census estimate of the United States Bureau of the Census.
(5)
(a) Except as provided in Subsection (5)(b) or (c), a tax authorized under this part shall be administered, collected, enforced, and interpreted in accordance with:
(i) the same procedures used to administer, collect, enforce, and interpret the tax under:
(A) Part 1, Tax Collection; or
(B) Part 2, Local Sales and Use Tax Act; and
(ii) Chapter 1, General Taxation Policies.
(b) A tax under this part is not subject to Subsections 59-12-205(2) and (4) through (6).
(c)
(i) Subject to Subsection (5)(c)(ii), the commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this part.
(ii) Notwithstanding Section 59-1-306, the administrative charge described in Subsection (5)(c)(i) shall be calculated by taking a percentage described in Section 59-1-306 of the distribution amounts resulting after:
(A) the applicable distribution calculations under Subsection (4) have been made; and
(B) the commission retains the amount required by Subsection (6).
(6)
(a) Beginning on July 1, 2009, the commission shall calculate and retain a portion of the sales and use tax collected under this part as provided in this Subsection (6).
(b) For a county that imposes a tax under this part, the commission shall calculate a percentage each month by dividing the sales and use tax collected under this part for that month within the boundaries of that county by the total sales and use tax collected under this part for that month within the boundaries of all of the counties that impose a tax under this part.
(c) For a county that imposes a tax under this part, the commission shall retain each month an amount equal to the product of:
(i) the percentage the commission determines for the month under Subsection (6)(b) for the county; and
(ii) $6,354.
(d) The commission shall deposit an amount the commission retains in accordance with this Subsection (6) into the Qualified Emergency Food Agencies Fund created by Section 35A-8-1009.
(e) An amount the commission deposits into the Qualified Emergency Food Agencies Fund shall be expended as provided in Section 35A-8-1009.
(7)
(a) For purposes of this Subsection (7):
(i) "Annexation" means an annexation to a county under Title 17, Chapter 61, Part 2, Consolidation of Counties, or Part 3, County Annexation.
(ii) "Annexing area" means an area that is annexed into a county.
(b)
(i) Except as provided in Subsection (7)(c) or (d), if, on or after July 1, 2004, a county enacts or repeals a tax under this part:
(A)
(I) the enactment shall take effect as provided in Subsection (1)(c); or
(II) the repeal shall take effect on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (7)(b)(ii) from the county.
(ii) The notice described in Subsection (7)(b)(i)(B) shall state:
(A) that the county will enact or repeal a tax under this part;
(B) the statutory authority for the tax described in Subsection (7)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (7)(b)(ii)(A); and
(D) if the county enacts the tax described in Subsection (7)(b)(ii)(A), the rate of the tax.
(c)
(i) If the billing period for a transaction begins before the effective date of the enactment of the tax under Subsection (1), the enactment of the tax takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax imposed under Subsection (1).
(d)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (7)(b)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under Subsection (7)(b)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(e)
(i) Except as provided in Subsection (7)(f) or (g), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this part for an annexing area, the enactment or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (7)(e)(i) from the county that annexes the annexing area.
(ii) The notice described in Subsection (7)(e)(i)(B) shall state:
(A) that the annexation described in Subsection (7)(b)(i) will result in an enactment or repeal of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (7)(e)(ii)(A);
(C) the effective date of the tax described in Subsection (7)(e)(ii)(A); and
(D) the rate of the tax described in Subsection (7)(e)(ii)(A).
(f)
(i) If the billing period for a transaction begins before the effective date of the enactment of the tax under Subsection (1), the enactment of the tax takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax imposed under Subsection (1).
(g)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (7)(e)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under Subsection (7)(e)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
(1) As used in this section:
(a) "Fairpark district" means the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201.
(b) "Fairpark district board" means the board of the fairpark district.
(c) "Franchise agreement date" means the same as that term is defined in Section 11-70-101.
(d) "Stadium contribution" means the same as that term is defined in Section 11-70-101.
(e) "Transition date" means the first day of the calendar quarter that begins at least 90 days after the fairpark district board delivers to the commission the certificate described in Subsection (2)(a)(ii)(B).
(2)
(a)
(i) Except as provided in Subsections (4) and (5), there is imposed a tax of 2.5% on all short-term rentals of motor vehicles.
(ii)
(A) In addition to the tax imposed under Subsection (2)(a)(i) and except as provided in Subsections (4) and (5), beginning on the transition date there is imposed a tax of 1.5% on all short-term rentals of motor vehicles.
(B) After the franchise agreement date, the fairpark district board shall deliver to the commission a certificate verifying the execution of a franchise agreement, as defined in Section 11-70-101, and providing the franchise agreement date.
(C) A tax under this Subsection (2)(a)(ii) is imposed only if the franchise agreement date is on or before June 30, 2032.
(b) The tax imposed in this section is in addition to all other state, county, or municipal fees and taxes imposed on rentals of motor vehicles.
(3)
(a) Subject to Subsection (3)(b), a tax rate repeal or tax rate change for the tax imposed under Subsection (2) shall take effect on the first day of a calendar quarter.
(b)
(i) For a transaction subject to a tax under Subsection (2), a tax rate increase shall take effect on the first day of the first billing period:
(A) that begins after the effective date of the tax rate increase; and
(B) if the billing period for the transaction begins before the effective date of a tax rate increase imposed under Subsection (2).
(ii) For a transaction subject to a tax under Subsection (2), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:
(A) that began before the effective date of the repeal of the tax or the tax rate decrease; and
(B) if the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (2).
(4) A tax imposed under this section applies at the same rate to car sharing of less than 30 days, except for car sharing for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant to a repair or an insurance agreement.
(5) A motor vehicle is exempt from the tax imposed under this section if:
(a) the motor vehicle has a gross vehicle weight rating of 14,001 or more pounds;
(b) the motor vehicle is rented as a personal household goods moving van; or
(c) the lease or rental of the motor vehicle is made for the purpose of temporarily replacing a person's motor vehicle that is being repaired in accordance with a repair agreement or an insurance agreement.
(6)
(a)
(i) The tax authorized under this section shall be administered, collected, enforced, and interpreted in accordance with:
(A) the same procedures used to administer, collect, enforce, and interpret the tax under Part 1, Tax Collection; and
(B) Chapter 1, General Taxation Policies.
(ii) Notwithstanding Subsection (6)(a)(i), a tax under this part is not subject to Subsections 59-12-103(4) through (10) or Section 59-12-107.1 or 59-12-123.
(b) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this part.
(c) Except as provided under Subsections (6)(b) and (d):
(i) the commission shall deposit daily with the state treasurer all revenue received under this section; and
(ii) the state treasurer shall credit monthly all revenue received under this section to the Marda Dillree Corridor Preservation Fund under Section 72-2-117.
(d)
(i) Subject to Subsection (6)(d)(iii), all revenue received by the commission under Subsection (2)(a)(ii) shall be paid to the fairpark district.
(ii) Within 10 days after the fairpark district completes payment of the stadium contribution, the fairpark district board shall deliver to the commission a written statement verifying that the fairpark district has completed payment of the stadium contribution.
(iii) Upon receipt of the written statement under Subsection (6)(d)(ii), the commission shall:
(A) discontinue collecting revenue under Subsection (2)(a)(ii), beginning the first day of the calendar quarter that is at least 90 days after the commission's receipt of the written statement;
(B) discontinue distributing revenue under Subsection (2)(a)(ii) to the fairpark district, beginning the first day of the calendar quarter that is at least 90 days after the commission's receipt of the written statement; and
(C) notify the Executive Appropriations Committee of the Legislature that the commission is discontinuing collecting and distributing revenue under Subsection (2)(a)(ii).
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
(1) Beginning on or after January 1, 1998, the governing body of a town may impose a tax as provided in this part in an amount that does not exceed 1%.
(2) A town may impose a tax as provided in this part if the town imposed a license fee or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1, 1996.
(3) A town imposing a tax under this section shall:
(a) except as provided in Subsection (4), impose the tax on the transactions described in Subsection 59-12-103(1) located within the town; and
(b) provide an effective date for the tax as provided in Subsection (5).
(4)
(a) A town may not impose a tax under this section on:
(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and
(ii) except as provided in Subsection (4)(c), amounts paid or charged for food and food ingredients.
(b) For purposes of this Subsection (4), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(c) A town imposing a tax under this section shall impose the tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
(5)
(a) For purposes of this Subsection (5):
(i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 8, Annexation.
(ii) "Annexing area" means an area that is annexed into a town.
(b)
(i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (5)(b)(ii) from the town.
(ii) The notice described in Subsection (5)(b)(i)(B) shall state:
(A) that the town will enact or repeal a tax or change the rate of a tax under this part;
(B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
(D) if the town enacts the tax or changes the rate of the tax described in Subsection (5)(b)(ii)(A), the rate of the tax.
(c)
(i) If the billing period for the transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of the tax or the tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax or the tax rate increase.
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1).
(d)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (5)(b)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the tax under Subsection (5)(b)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(e)
(i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
(ii) The notice described in Subsection (5)(e)(i)(B) shall state:
(A) that the annexation described in Subsection (5)(e)(i) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
(D) if the town enacts the tax or changes the rate of the tax described in Subsection (5)(e)(ii)(A), the rate of the tax.
(f)
(i) If the billing period for a transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of the tax or the tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax or the tax rate increase.
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1).
(g)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (5)(e)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the tax under Subsection (5)(e)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(6) The commission shall:
(a) distribute the revenue generated by the tax under this section to the town imposing the tax; and
(b) except as provided in Subsection (8), administer, collect, and enforce the tax authorized under this section in accordance with:
(i) the same procedures used to administer, collect, and enforce the tax under:
(A) Part 1, Tax Collection; or
(B) Part 2, Local Sales and Use Tax Act; and
(ii) Chapter 1, General Taxation Policies.
(7) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this part.
(8) A tax under this section is not subject to Subsections 59-12-205(2) and (4) through (6).
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
(1) In relation to the tax imposed by this part, the legislative findings described in Section 59-12-701 apply similarly to cities and towns as the findings apply to counties.
(2) The definitions of Section 59-12-702 are incorporated into this part.
(3) This part applies only to a city or town that is located within a county of the second, third, fourth, fifth, or sixth class as designated in Section 17-60-104.
(1)
(a) Subject to the other provisions of this section, a city or town legislative body subject to this part may submit an opinion question to the residents of that city or town, by majority vote of all members of the legislative body, so that each resident of the city or town has an opportunity to express the resident's opinion on the imposition of a local sales and use tax of .1% on the transactions described in Subsection 59-12-103(1) located within the city or town, to:
(i) fund cultural facilities, recreational facilities, and zoological facilities and botanical organizations, cultural organizations, and zoological organizations in that city or town; or
(ii) provide funding for a botanical organization, cultural organization, or zoological organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in furtherance of the botanical organization's, cultural organization's, or zoological organization's primary purpose.
(b) The opinion question required by this section shall state:
"Shall (insert the name of the city or town), Utah, be authorized to impose a .1% sales and use tax for (list the purposes for which the revenue collected from the sales and use tax shall be expended)?"
(c) A city or town legislative body may not impose a tax under this section:
(i) if the county in which the city or town is located imposes a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities;
(ii) on the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and
(iii) except as provided in Subsection (1)(e), on amounts paid or charged for food and food ingredients.
(d) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(e) A city or town legislative body imposing a tax under this section shall impose the tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
(f) Except as provided in Subsection (6), the election shall be held at a regular general election or a municipal general election, as those terms are defined in Section 20A-1-102, and shall follow the procedures outlined in Title 11, Chapter 14, Local Government Bonding Act.
(2) If the city or town legislative body determines that a majority of the city's or town's registered voters voting on the imposition of the tax have voted in favor of the imposition of the tax as prescribed in Subsection (1), the city or town legislative body may impose the tax by a majority vote of all members of the legislative body.
(3) Subject to Section 59-12-1403, revenue collected from a tax imposed under Subsection (2) shall be expended:
(a) to finance cultural facilities, recreational facilities, and zoological facilities within the city or town or within the geographic area of entities that are parties to an interlocal agreement, to which the city or town is a party, providing for cultural facilities, recreational facilities, or zoological facilities;
(b) to finance ongoing operating expenses of:
(i) recreational facilities described in Subsection (3)(a) within the city or town or within the geographic area of entities that are parties to an interlocal agreement, to which the city or town is a party, providing for recreational facilities; or
(ii) botanical organizations, cultural organizations, and zoological organizations within the city or town or within the geographic area of entities that are parties to an interlocal agreement, to which the city or town is a party, providing for the support of botanical organizations, cultural organizations, or zoological organizations; and
(c) as stated in the opinion question described in Subsection (1).
(4)
(a) Except as provided in Subsections (4)(b) and (c), a tax authorized under this part shall be:
(i) administered, collected, enforced, and interpreted in accordance with:
(A) the same procedures used to administer, collect, enforce, and interpret the tax under:
(I) Part 1, Tax Collection; or
(II) Part 2, Local Sales and Use Tax Act; and
(B) Chapter 1, General Taxation Policies; and
(ii)
(A) levied for a period of eight years; and
(B) may be reauthorized at the end of the eight-year period in accordance with this section.
(b)
(i) If a tax under this part is imposed for the first time on or after July 1, 2011, the tax shall be levied for a period of 10 years.
(ii) If a tax under this part is reauthorized in accordance with Subsection (4)(a) on or after July 1, 2011, the tax shall be reauthorized for a 10-year period.
(c) A tax under this section is not subject to Subsections 59-12-205(2) and (4) through (6).
(5)
(a) For purposes of this Subsection (5):
(i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 8, Annexation.
(ii) "Annexing area" means an area that is annexed into a city or town.
(b)
(i) Except as provided in Subsection (5)(c) or (d), and subject to Subsection (7), if, on or after July 1, 2004, a city or town enacts, reauthorizes, or repeals a tax under this part, the enactment, reauthorization, or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (5)(b)(ii) from the city or town.
(ii) The notice described in Subsection (5)(b)(i)(B) shall state:
(A) that the city or town will enact, reauthorize, or repeal a tax under this part;
(B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
(D) if the city or town enacts or reauthorizes the tax described in Subsection (5)(b)(ii)(A), the rate of the tax.
(c)
(i) If the billing period for a transaction begins before the effective date of the enactment or reauthorization of the tax under this section, the enactment or reauthorization of the tax takes effect on the first day of the first billing period that begins on or after the effective date of the enactment or reauthorization of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax imposed under this section.
(d)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, reauthorization, or repeal of a tax described in Subsection (5)(b)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, reauthorization, or repeal under Subsection (5)(b)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(e)
(i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this part for an annexing area, the enactment or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
(ii) The notice described in Subsection (5)(e)(i)(B) shall state:
(A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or repeal a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
(D) the rate of the tax described in Subsection (5)(e)(ii)(A).
(f)
(i) If the billing period for a transaction begins before the effective date of the enactment of the tax under this section, the enactment of the tax takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax imposed under this section.
(g)
(i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (5)(e)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under Subsection (5)(e)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(6)
(a) Before a city or town legislative body submits an opinion question to the residents of the city or town under Subsection (1), the city or town legislative body shall:
(i) submit to the county legislative body in which the city or town is located a written notice of the intent to submit the opinion question to the residents of the city or town; and
(ii) receive from the county legislative body:
(A) a written resolution passed by the county legislative body stating that the county legislative body is not seeking to impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
(B) a written statement that in accordance with Subsection (6)(b) the results of a county opinion question submitted to the residents of the county under Part 7, County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city or town legislative body to submit the opinion question to the residents of the city or town in accordance with this part.
(b)
(i) Within 60 days after the day the county legislative body receives from a city or town legislative body described in Subsection (6)(a) the notice of the intent to submit an opinion question to the residents of the city or town, the county legislative body shall provide the city or town legislative body:
(A) the written resolution described in Subsection (6)(a)(ii)(A); or
(B) written notice that the county legislative body will submit an opinion question to the residents of the county under Part 7, County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under that part.
(ii) If the county legislative body provides the city or town legislative body the written notice that the county legislative body will submit an opinion question as provided in Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no later than, from the date the county legislative body sends the written notice, the later of:
(A) a 12-month period;
(B) the next regular primary election; or
(C) the next regular general election.
(iii) Within 30 days of the date of the canvass of the election at which the opinion question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the city or town legislative body described in Subsection (6)(a) written results of the opinion question submitted by the county legislative body under Part 7, County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
(A)
(I) the city or town legislative body may not impose a tax under this part because a majority of the county's registered voters voted in favor of the county imposing the tax and the county legislative body by a majority vote approved the imposition of the tax; or
(II) for at least 12 months from the date the written results are submitted to the city or town legislative body, the city or town legislative body may not submit to the county legislative body a written notice of the intent to submit an opinion question under this part because a majority of the county's registered voters voted against the county imposing the tax and the majority of the registered voters who are residents of the city or town described in Subsection (6)(a) voted against the imposition of the county tax; or
(B) the city or town legislative body may submit the opinion question to the residents of the city or town in accordance with this part because although a majority of the county's registered voters voted against the county imposing the tax, the majority of the registered voters who are residents of the city or town voted for the imposition of the county tax.
(c) Notwithstanding Subsection (6)(b), at any time a county legislative body may provide a city or town legislative body described in Subsection (6)(a) a written resolution passed by the county legislative body stating that the county legislative body is not seeking to impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, which permits the city or town legislative body to submit under Subsection (1) an opinion question to the city's or town's residents.
(7)
(a) If a city or town reauthorizes a tax under this part in accordance with Subsection (4), the city or town shall provide to the commission notice of the reauthorization that meets the requirements of Subsection (5)(b)(ii) at least 90 days before the first day of the calendar quarter in which the reauthorization first takes effect.
(b) The commission may not enforce a tax under this part due for reauthorization unless the commission receives timely notice of the reauthorization as provided in Subsection (7)(a).
(1)
(a) The city or town legislative body shall by ordinance provide for the distribution of the entire amount of the revenues collected from the tax imposed by this part:
(i) in accordance with this section; and
(ii) as stated in the opinion question described in Subsection 59-12-1402(1).
(b) A city or town may participate in an interlocal agreement provided for under Section 59-12-704 and distribute the revenues collected from the tax imposed by this part to participants in the interlocal agreement.
(c) Subject to Subsection (1)(a), revenues collected from the tax shall be used for one or more organizations or facilities defined in Section 59-12-702.
(2) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenues the commission collects from a tax under this part.
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
(1) If a county does not impose a tax under Part 11, County Option Sales and Use Tax, a tax shall be imposed within the county under this section by the state:
(a) on the transactions described in Subsection 59-12-103(1);
(b) at a rate of .25%; and
(c) beginning on January 1, 2008, and ending on the day on which the county imposes a tax under Part 11, County Option Sales and Use Tax.
(2) Notwithstanding Subsection (1), a tax under this section may not be imposed on the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104.
(3) For purposes of Subsection (1), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(4) Revenues collected from the sales and use tax imposed by this section, after subtracting amounts a seller retains in accordance with Section 59-12-108, shall be deposited into the General Fund.
(1) Subject to Subsections (2) and (3), a tax rate repeal or a tax rate change for a tax imposed under this part shall take effect on the first day of a calendar quarter.
(2)
(a) The enactment of a tax takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax if the billing period for the transaction begins before the effective date of the tax under this part.
(b) The repeal of a tax applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax imposed under this part.
(3)
(a) If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax under this part takes effect:
(i) on the first day of a calendar quarter; and
(ii) beginning 60 days after the effective date of the enactment or repeal of the tax under this part.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(4) A tax imposed by this part shall be administered, collected, enforced, and interpreted in accordance with:
(a) the same procedures used to administer, collect, enforce, and interpret the tax under Part 1, Tax Collection; and
(b) Chapter 1, General Taxation Policies.
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
As used in this part, "public transit district" means a public transit district organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act.
(1) Subject to the other provisions of this section and except as provided in Subsection (2) or (4), beginning on July 1, 2008, the state shall impose a tax under this part on the transactions described in Subsection 59-12-103(1) within a city, town, or the unincorporated area of a county of the first or second class if, on January 1, 2008, there is a public transit district within any portion of that county of the first or second class.
(2) The state may not impose a tax under this part within a county of the first or second class if within all of the cities, towns, and the unincorporated area of the county of the first or second class there is imposed a sales and use tax of:
(a) .30% under Section 59-12-2213;
(b) .30% under Section 59-12-2215; or
(c) .30% under Section 59-12-2216.
(3)
(a) Subject to Subsection (3)(b), if the state imposes a tax under this part, the tax rate imposed within a city, town, or the unincorporated area of a county of the first or second class is a percentage equal to the difference between:
(i) .30%; and
(ii)
(A) for a city within the county of the first or second class, the highest tax rate imposed within that city under:
(I) Section 59-12-2213;
(II) Section 59-12-2215; or
(III) Section 59-12-2216;
(B) for a town within the county of the first or second class, the highest tax rate imposed within that town under:
(I) Section 59-12-2213;
(II) Section 59-12-2215; or
(III) Section 59-12-2216; or
(C) for the unincorporated area of the county of the first or second class, the highest tax rate imposed within that unincorporated area under:
(I) Section 59-12-2213;
(II) Section 59-12-2215; or
(III) Section 59-12-2216.
(b) For purposes of Subsection (3)(a), if for a city, town, or the unincorporated area of a county of the first or second class, the highest tax rate imposed under Section 59-12-2213, 59-12-2215, or 59-12-2216 within that city, town, or unincorporated area of the county of the first or second class is .30%, the state may not impose a tax under this part within that city, town, or unincorporated area.
(4)
(a) The state may not impose a tax under this part on:
(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; or
(ii) except as provided in Subsection (4)(b), amounts paid or charged for food and food ingredients.
(b) The state shall impose a tax under this part on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and ingredients and tangible personal property other than food and food ingredients.
(5) For purposes of Subsection (1), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(6) The commission shall distribute the revenues the state collects from the sales and use tax under this part, after subtracting amounts a seller retains in accordance with Section 59-12-108, to the public transit districts within the cities, towns, and unincorporated areas:
(a) within which the state imposes a tax under this part; and
(b) in proportion to the revenues collected from the sales and use tax under this part within each city, town, and unincorporated area within which the state imposes a tax under this part.
(1) Subject to Subsections (2) and (3), a tax rate repeal or a tax rate change for a tax imposed under this part shall take effect on the first day of a calendar quarter.
(2)
(a) The enactment of a tax or a tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax or the tax rate increase if the billing period for the transaction begins before the effective date of the enactment of the tax or the tax rate increase under this part.
(b) The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax or the tax rate decrease imposed under this part.
(3)
(a) If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax under this part takes effect:
(i) on the first day of a calendar quarter; and
(ii) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the tax under this part.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(4) The commission shall administer, collect, and enforce a tax under this part in accordance with:
(a) the same procedures used to administer, collect, and enforce the tax under Part 1, Tax Collection;
(b) Chapter 1, General Taxation Policies; and
(c) Section 59-12-210.1.
(5) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenues the commission collects from a tax under this part.
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
As used in this part:
(1) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 8, Annexation.
(2) "Annexing area" means an area that is annexed into a city or town.
(1)
(a) As used in this section, "eligible city or town" means a city or town that imposed a tax under this part on July 1, 2016.
(b) Subject to the other provisions of this section and except as provided in Subsection (2) or (3), the legislative body of an eligible city or town may impose a sales and use tax of up to .20% on the transactions:
(i) described in Subsection 59-12-103(1); and
(ii) within the city or town.
(c) A city or town legislative body that imposes a tax under Subsection (1)(b) shall expend the revenue collected from the tax for the same purposes for which the city or town may expend the city's or town's general fund revenue.
(d) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(2)
(a) A city or town legislative body may not impose a tax under this section on:
(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and
(ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food ingredients.
(b) A city or town legislative body imposing a tax under this section shall impose the tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
(3) An eligible city or town may impose a tax under this part until no later than June 30, 2030.
(4) The commission shall transmit revenue collected within a city or town from a tax under this part:
(a) to the city or town legislative body;
(b) monthly; and
(c) by electronic funds transfer.
(5)
(a) Except as provided in Subsection (5)(b), the commission shall administer, collect, and enforce a tax under this part in accordance with:
(i) the same procedures used to administer, collect, and enforce the tax under:
(A) Part 1, Tax Collection; or
(B) Part 2, Local Sales and Use Tax Act; and
(ii) Chapter 1, General Taxation Policies.
(b) A tax under this part is not subject to Subsections 59-12-205(2) and (4) through (6).
(6) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this part.
(7)
(a)
(i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009, a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (7)(a)(i) from the city or town.
(ii) The notice described in Subsection (7)(a)(i)(B) shall state:
(A) that the city or town will enact or repeal a tax or change the rate of the tax under this part;
(B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
(C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
(D) if the city or town enacts the tax or changes the rate of the tax described in Subsection (7)(a)(ii)(A), the rate of the tax.
(b)
(i) If the billing period for a transaction begins before the enactment of the tax or the tax rate increase under Subsection (1), the enactment of the tax or the tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax or the tax rate increase.
(ii) If the billing period for a transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax or the tax rate decrease.
(c)
(i) If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (7)(a)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the tax under Subsection (7)(a)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(d)
(i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
(ii) The notice described in Subsection (7)(d)(i)(B) shall state:
(A) that the annexation described in Subsection (7)(d)(i)(B) will result in the enactment, repeal, or change in the rate of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
(C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
(D) if the city or town enacts the tax or changes the rate of the tax described in Subsection (7)(d)(ii)(A), the rate of the tax.
(e)
(i) If the billing period for a transaction begins before the effective date of the enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax or the tax rate increase.
(ii) If the billing period for a transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax or the tax rate decrease.
(f)
(i) If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (7)(d)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change under Subsection (7)(d)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
As used in this part:
(1) "Airline" means the same as that term is defined in Section 59-2-102.
(2) "Airport facility" means the same as that term is defined in Section 59-12-602.
(3) "Airport of regional significance" means an airport identified by the Federal Aviation Administration in the most current National Plan of Integrated Airport Systems or an update to the National Plan of Integrated Airport Systems.
(4) "Annexation" means an annexation to:
(a) a county under Title 17, Chapter 61, Part 2, Consolidation of Counties, or Part 3, County Annexation; or
(b) a city or town under Title 10, Chapter 2, Part 4, Annexation.
(5) "Annexing area" means an area that is annexed into a county, city, or town.
(6) "Class A road" means the same as that term is described in Section 72-3-102.
(7) "Class B road" means the same as that term is described in Section 72-3-103.
(8) "Class C road" means the same as that term is described in Section 72-3-104.
(9) "Class D road" means the same as that term is described in Section 72-3-105.
(10) "Council of governments" means the same as that term is defined in Section 72-2-117.5.
(11) "Eligible political subdivision" means a political subdivision that:
(a) provides public transit services;
(b) is not a public transit district; and
(c) is not annexed into a public transit district.
(12) "Fixed guideway" means the same as that term is defined in Section 59-12-102.
(13) "Large public transit district" means the same as that term is defined in Section 17B-2a-802.
(14) "Major collector highway" means the same as that term is defined in Section 72-4-102.5.
(15) "Metropolitan planning organization" means the same as that term is defined in Section 72-1-208.5.
(16) "Minor arterial highway" means the same as that term is defined in Section 72-4-102.5.
(17) "Minor collector road" means the same as that term is defined in Section 72-4-102.5.
(18) "Principal arterial highway" means the same as that term is defined in Section 72-4-102.5.
(19) "Public transit" means the same as that term is defined in Section 17B-2a-802.
(20) "Public transit district" means the same as that term is defined in Section 17B-2a-802.
(21) "Public transit innovation grant" means the same as that term is defined in Section 72-2-401.
(22) "Public transit provider" means a public transit district or an eligible political subdivision.
(23) "Public transit service" means a service provided as part of public transit.
(24) "Regionally significant transportation facility" means:
(a) in a county of the first or second class:
(i) a principal arterial highway;
(ii) a minor arterial highway;
(iii) a fixed guideway that:
(A) extends across two or more cities or unincorporated areas; or
(B) is an extension to an existing fixed guideway; or
(iv) an airport of regional significance; or
(b) in a county of the second class that is not part of a large public transit district, or in a county of the third, fourth, fifth, or sixth class:
(i) a principal arterial highway;
(ii) a minor arterial highway;
(iii) a major collector highway;
(iv) a minor collector road; or
(v) an airport of regional significance.
(25) "State highway" means a highway designated as a state highway under Title 72, Chapter 4, Designation of State Highways Act.
(26)
(a) Subject to Subsection (26)(b), "system for public transit" means the same as the term "public transit" is defined in Section 17B-2a-802.
(b) "System for public transit" includes:
(i) the following costs related to public transit:
(A) maintenance costs; or
(B) operating costs;
(ii) a fixed guideway;
(iii) a park and ride facility;
(iv) a passenger station or passenger terminal;
(v) a right-of-way for public transit; or
(vi) the following that serve a public transit facility:
(A) a maintenance facility;
(B) a platform;
(C) a repair facility;
(D) a roadway;
(E) a storage facility;
(F) a utility line; or
(G) a facility or item similar to those described in Subsections (26)(b)(vi)(A) through (F).
(1) As provided in this Subsection (1), one of the following sales and use taxes may be imposed within the boundaries of a local taxing jurisdiction:
(a) a county, city, or town may impose the sales and use tax authorized by Section 59-12-2213 in accordance with Section 59-12-2213; or
(b) a city or town may impose the sales and use tax authorized by Section 59-12-2215 in accordance with Section 59-12-2215.
(2) As provided in this Subsection (2), one of the following sales and use taxes may be imposed within the boundaries of a local taxing jurisdiction:
(a) a county, city, or town may impose the sales and use tax authorized by Section 59-12-2214 in accordance with Section 59-12-2214; or
(b) a county may impose the sales and use tax authorized by Section 59-12-2216 in accordance with Section 59-12-2216.
(3) As provided in this Subsection (3), one of the following sales and use taxes may be imposed within the boundaries of a local taxing jurisdiction:
(a) a county may impose the sales and use tax authorized by Section 59-12-2217 in accordance with Section 59-12-2217; or
(b) a county, city, or town may impose the sales and use tax authorized by Section 59-12-2218 in accordance with Section 59-12-2218.
(4) A county may impose the sales and use tax authorized by Section 59-12-2219 in accordance with Section 59-12-2219.
(5) A county may impose the sales and use tax authorized by Section 59-12-2220 in accordance with Section 59-12-2220.
(1) A county, city, or town may not impose a sales and use tax under this part on:
(a) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and
(b) except as provided in Subsection (2), amounts paid or charged for food and food ingredients.
(2) A county, city, or town imposing a sales and use tax under this part shall impose the sales and use tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
For purposes of this part, the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.
(1) Except as provided in Subsection (2), the commission shall administer, collect, and enforce a sales and use tax imposed under this part.
(2) The commission shall administer, collect, and enforce a sales and use tax imposed under this part in accordance with:
(a) the same procedures used to administer, collect, and enforce a tax under:
(i) Part 1, Tax Collection; or
(ii) Part 2, Local Sales and Use Tax Act; and
(b) Chapter 1, General Taxation Policies.
(3) A sales and use tax under this part is not subject to Subsections 59-12-205(2) and (4) through (6).
(4) Subject to Section 59-12-2207 and except as provided in Subsections (5) and (6) or another provision of this part, the state treasurer shall transmit revenue collected within a county, city, or town from a sales and use tax under this part to the county, city, or town legislative body monthly by electronic funds transfer.
(5) Beginning no sooner than January 1, 2026, and subject to Section 59-12-205, before transmitting revenue as described in Subsection (4), and before application of Subsection (6), and as described in Section 63N-23-306, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established under Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, the commission, at least annually, shall transfer an amount equal to 100% of the sales and use tax increment, as that term is defined in Section 63N-23-101, from a sales and use tax on transactions occurring within an established sales and use tax boundary, as that term is defined in Section 63N-23-101, to a convention center public infrastructure district created in accordance with Section 17D-4-202.1 for sales and use taxes imposed by a county of the first class in accordance with:
(a) Section 59-12-2213;
(b) Section 59-12-2214;
(c) Section 59-12-2217;
(d) Section 59-12-2219; and
(e) Section 59-12-2220.
(6)
(a) Subject to Section 59-12-2207, and except as provided in Subsection (6)(b), the state treasurer shall transfer revenue collected within a county, city, or town from a sales and use tax under this part directly to a public transit district organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act, or an eligible political subdivision as defined in Section 59-12-2202, if the county, city, or town legislative body:
(i) provides written notice to the commission and the state treasurer requesting the transfer; and
(ii) designates the public transit district or eligible political subdivision to which the county, city, or town legislative body requests the state treasurer to transfer the revenue.
(b) The commission shall transmit a portion of the revenue collected within a county, city, or town from a sales and use tax under this part that would be transferred to a public transit district or an eligible political subdivision under Subsection (6)(a) to the county, city, or town to fund public transit fixed guideway safety oversight under Section 72-1-214 if the county, city, or town legislative body:
(i) provides written notice to the commission and the state treasurer requesting the transfer; and
(ii) specifies the amount of revenue required to be transmitted to the county, city, or town.
The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenues the commission collects from a tax under this part.
(1) Subject to the other provisions of this section, before imposing a sales and use tax under this part, a county, city, or town legislative body shall:
(a) obtain approval to impose the sales and use tax from a majority of the members of the county, city, or town legislative body; and
(b) submit an opinion question to the county's, city's, or town's registered voters voting on the imposition of the sales and use tax so that each registered voter has the opportunity to express the registered voter's opinion on whether a sales and use tax should be imposed under this section.
(2) The opinion question required by this section shall state:
"Shall (insert the name of the county, city, or town), Utah, be authorized to impose a (insert the tax rate of the sales and use tax) sales and use tax for (list the purposes for which the revenues collected from the sales and use tax shall be expended)?"
(3)
(a) Subject to Subsection (3)(b), the election required by this section shall be held:
(i) at a regular general election conducted in accordance with the procedures and requirements of Title 20A, Election Code, governing regular general elections; or
(ii) at a municipal general election conducted in accordance with the procedures and requirements of Section 20A-1-202.
(b)
(i) Subject to Subsection (3)(b)(ii), the county clerk of the county in which the opinion question required by this section will be submitted to registered voters shall:
(A) provide notice for the county, city, or town, as a class A notice under Section 63G-30-102, for at least 15 days before the date of the election; and
(B) prepare an affidavit of that posting, showing a copy of the notice and the places where the notice was posted.
(ii) The notice under Subsection (3)(b)(i) shall:
(A) state that an opinion question will be submitted to the county's, city's, or town's registered voters voting on the imposition of a sales and use tax under this section so that each registered voter has the opportunity to express the registered voter's opinion on whether a sales and use tax should be imposed under this section; and
(B) list the purposes for which the revenues collected from the sales and use tax shall be expended.
(4) A county, city, or town that submits an opinion question to registered voters under this section is subject to Section 20A-11-1203.
(5) Subject to Section 59-12-2209, if a county, city, or town legislative body determines that a majority of the county's, city's, or town's registered voters voting on the imposition of a sales and use tax under this part have voted in favor of the imposition of the sales and use tax in accordance with this section, the county, city, or town legislative body shall impose the sales and use tax.
(6) If, after imposing a sales and use tax under this part, a county, city, or town legislative body seeks to impose a tax rate for the sales and use tax that exceeds or is less than the tax rate stated in the opinion question described in Subsection (2) or repeals the tax rate stated in the opinion question described in Subsection (2), the county, city, or town legislative body shall:
(a) obtain approval from a majority of the members of the county, city, or town legislative body to impose a tax rate for the sales and use tax that exceeds or is less than the tax rate stated in the opinion question described in Subsection (2) or repeals the tax rate stated in the opinion question described in Subsection (2); and
(b) in accordance with the procedures and requirements of this section, submit an opinion question to the county's, city's, or town's registered voters voting on the tax rate so that each registered voter has the opportunity to express the registered voter's opinion on whether to impose a tax rate for the sales and use tax that exceeds or is less than the tax rate stated in the opinion question described in Subsection (2) or repeal the tax rate stated in the opinion question described in Subsection (2).
(1) Except as provided in Subsection (3) or (4), if a county, city, or town enacts or repeals a sales and use tax or changes the rate of a sales and use tax under this part, the enactment, repeal, or change shall take effect:
(a) on the first day of a calendar quarter; and
(b) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (2) from the county, city, or town.
(2) The notice described in Subsection (1)(b) shall state:
(a) that the county, city, or town will enact, repeal, or change the rate of a sales and use tax under this part;
(b) the statutory authority for the sales and use tax described in Subsection (2)(a);
(c) the date the enactment, repeal, or change will take effect; and
(d) if the county, city, or town enacts the sales and use tax or changes the rate of the sales and use tax described in Subsection (2)(a), the rate of the sales and use tax.
(3)
(a) If the billing period for a transaction begins before the effective date of the enactment of a sales and use tax or a tax rate increase under this part, the enactment of the sales and use tax or the tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the sales and use tax or the tax rate increase.
(b) If the billing period for a transaction begins before the effective date of the repeal of a sales and use tax or a tax rate decrease under this part, the repeal of the sales and use tax or the tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the sales and use tax or the tax rate decrease.
(4)
(a) If a sales and use tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a sales and use tax described in Subsection (1) takes effect:
(i) on the first day of a calendar quarter; and
(ii) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the sales and use tax under Subsection (1).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
(5) Except as provided in Subsection (7) or (8), if an annexation will result in the enactment, repeal, or change in the rate of a sales and use tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
(a) on the first day of a calendar quarter; and
(b) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (6) from the county, city, or town that annexes the annexing area.
(6) The notice described in Subsection (5) shall state:
(a) that the annexation described in Subsection (5) will result in an enactment, repeal, or change in the rate of a sales and use tax under this part for the annexing area;
(b) the statutory authority for the sales and use tax described in Subsection (6)(a);
(c) the date the enactment, repeal, or change will take effect; and
(d) if the annexation will result in the enactment or change in the rate of the sales and use tax described in Subsection (6)(a), the rate of the sales and use tax.
(7)
(a) If the billing period for a transaction begins before the effective date of the enactment of a sales and use tax or a tax rate increase under this part, the enactment of the sales and use tax or the tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the sales and use tax or the tax rate increase.
(b) If the billing period for a transaction begins before the effective date of the repeal of a sales and use tax or a tax rate decrease under this part, the repeal of the sales and use tax or the tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the sales and use tax or the tax rate decrease.
(8)
(a) If a sales and use tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a sales and use tax described in Subsection (6) takes effect:
(i) on the first day of a calendar quarter; and
(ii) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the sales and use tax under Subsection (6).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
A seller or certified service provider is not liable for failing to collect a sales and use tax at a tax rate imposed under this part if the seller's or certified service provider's failure to collect the sales and use tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a sales and use tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a sales and use tax required under this part is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of sales and use tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a sales and use tax due under this part or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a sales and use tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a sales and use tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission;
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from "sales price"; or
(Cc) included in or excluded from a definition.
Notwithstanding any other provision of this part, a county, city, or town legislative body is not required to submit an opinion question to the county's, city's, or town's registered voters in accordance with Section 59-12-2208 and is not required to provide notice to the commission in accordance with Section 59-12-2209 if:
(1)
(a) on June 30, 2010, a county, city, or town imposes a sales and use tax under Section 59-12-501 that is repealed by Laws of Utah 2010, Chapter 263;
(b) on July 1, 2010, the authority for the county, city, or town to impose the sales and use tax described in Subsection (1)(a) is transferred to Section 59-12-2213; and
(c) the rate of the sales and use tax described under Subsection (1)(a) and the rate of the sales and use tax the county, city, or town imposes under Section 59-12-2213 are the same;
(2)
(a) on June 30, 2010, a county, city, or town imposes a sales and use tax under Section 59-12-502 that is repealed by Laws of Utah 2010, Chapter 263;
(b) on July 1, 2010, the authority for the county, city, or town to impose the sales and use tax described in Subsection (2)(a) is transferred to Section 59-12-2214; and
(c) the rate of the sales and use tax described under Subsection (2)(a) and the rate of the sales and use tax the county, city, or town imposes under Section 59-12-2214 are the same;
(3)
(a) on June 30, 2010, a city or town imposes a sales and use tax under Section 59-12-1001 that is repealed by Laws of Utah 2010, Chapter 263;
(b) on July 1, 2010, the authority for the city or town to impose the sales and use tax described in Subsection (3)(a) is transferred to Section 59-12-2215; and
(c) the rate of the sales and use tax described under Subsection (3)(a) and the rate of the sales and use tax the city or town imposes under Section 59-12-2215 are the same;
(4)
(a) on June 30, 2010, a county imposes a sales and use tax under Section 59-12-1503 that is repealed by Laws of Utah 2010, Chapter 263;
(b) on July 1, 2010, the authority for the county to impose the sales and use tax described in Subsection (4)(a) is transferred to Section 59-12-2216; and
(c) the rate of the sales and use tax described under Subsection (4)(a) and the rate of the sales and use tax the county imposes under Section 59-12-2216 are the same;
(5)
(a) on June 30, 2010, a county imposes a sales and use tax under Section 59-12-1703 that is repealed by Laws of Utah 2010, Chapter 263;
(b) on July 1, 2010, the authority for the county to impose the sales and use tax described in Subsection (5)(a) is transferred to Section 59-12-2217; and
(c) the rate of the sales and use tax described under Subsection (5)(a) and the rate of the sales and use tax the county imposes under Section 59-12-2217 are the same; and
(6)
(a) on June 30, 2010, a county, city, or town imposes a sales and use tax under Section 59-12-1903 that is repealed by Laws of Utah 2010, Chapter 263;
(b) on July 1, 2010, the authority for the county, city, or town to impose the sales and use tax described in Subsection (6)(a) is transferred to Section 59-12-2218; and
(c) the rate of the sales and use tax described under Subsection (6)(a) and the rate of the sales and use tax the county, city, or town imposes under Section 59-12-2218 are the same.
(1) Except as otherwise provided in this part, a county, city, or town that imposes a local option sales and use tax under this part may expend the revenue generated from the local option sales and use tax for the following purposes:
(a) the development, construction, maintenance, or operation of:
(i) a class A road;
(ii) a class B road;
(iii) a class C road;
(iv) a class D road;
(v) traffic and pedestrian safety infrastructure, including:
(A) a sidewalk;
(B) curb and gutter;
(C) a safety feature;
(D) a traffic sign;
(E) a traffic signal; or
(F) street lighting;
(vi) streets, alleys, roads, highways, and thoroughfares of any kind, including connected structures;
(vii) an airport facility;
(viii) an active transportation facility that is for nonmotorized vehicles and multimodal transportation and connects an origin with a destination; or
(ix) an intelligent transportation system;
(b) a system for public transit;
(c) all other modes and forms of conveyance used by the public;
(d) debt service or bond issuance costs related to a project or facility described in Subsections (1)(a) through (c); or
(e) corridor preservation related to a project or facility described in Subsections (1)(a) through (c).
(2) Any revenue subject to rights or obligations under a contract between a county, city, or town and a public transit district entered into before January 1, 2019, remains subject to existing contractual rights and obligations.
(3) In addition to the uses described in Subsection (1), for any revenue generated by a sales and use tax imposed under Section 59-12-2219 that is not contractually obligated for debt service, the percentage described in Subsection 59-12-2219(11) shall be made available for public transit innovation grants as provided in Title 72, Chapter 2, Part 4, Public Transit Innovation Grants.
(1) Subject to the other provisions of this part, a county, city, or town may impose a sales and use tax under this section of up to:
(a) for a county, city, or town other than a county, city, or town described in Subsection (1)(b), .25% on the transactions described in Subsection 59-12-103(1) located within the county, city, or town to fund a system for public transit; or
(b) for a county, city, or town within which a tax is not imposed under Section 59-12-2216, .30% on the transactions described in Subsection 59-12-103(1) located within the county, city, or town, to fund a system for public transit.
(2) Notwithstanding Section 59-12-2208, a county, city, or town legislative body is not required to submit an opinion question to the county's, city's, or town's registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section if the county, city, or town imposes the sales and use tax under Section 59-12-2216 on or before July 1, 2011.
(1) Subject to the other provisions of this part, a county, city, or town may impose a sales and use tax of .25% on the transactions described in Subsection 59-12-103(1) located within the county, city, or town.
(2) Notwithstanding Section 59-12-2212.2, and subject to Subsections (3) and (4), a county, city, or town that imposes a sales and use tax under this section shall expend the revenues collected from the sales and use tax:
(a) to fund a system for public transit;
(b) to fund a project or service related to an airport facility for the portion of the project or service that is performed within the county, city, or town within which the sales and use tax is imposed:
(i) for a county that imposes the sales and use tax, if the airport facility is part of the regional transportation plan of the area metropolitan planning organization if a metropolitan planning organization exists for the area; or
(ii) for a city or town that imposes the sales and use tax, if:
(A) that city or town is located within a county of the second class;
(B) that city or town owns or operates the airport facility; and
(C) an airline is headquartered in that city or town; or
(c) for a combination of Subsections (2)(a) and (b).
(3) After application of Subsection 59-12-2206(5), a county of the first class that imposes a sales and use tax under this section shall expend the revenues collected from the sales and use tax as follows:
(a) 80% of the revenues collected from the sales and use tax shall be expended to fund a system for public transit; and
(b) except as provided in Subsection (5), 20% of the revenues collected from the sales and use tax shall be deposited into the County of the First Class Highway Projects Fund created by Section 72-2-121.
(4)
(a) A county of the third class that has a portion of the county annexed into a large public transit district and that has imposed a sales and use tax under this section as of January 1, 2020, may change the list of purposes for which the sales and use tax revenue may be expended if:
(i) the proposed uses of the sales and use tax revenue are allowed uses described in this section; and
(ii) in coordination with a relevant large public transit district, the county legislative body passes an ordinance describing the allowed uses of the sales and use tax revenue.
(b) Notwithstanding Section 59-12-2208, and regardless of whether the imposition of the sales and use tax imposed under this section was submitted to the voters as described in Section 59-12-2208, the county legislative body is not required to submit an opinion question to the county's registered voters to change the allowed uses as described in Subsection (4)(a).
(5)
(a) For a fiscal year beginning on or after July 1, 2030, but beginning on or before July 1, 2060, $5,000,000 of the revenue described in Subsection (3)(b) shall be distributed to a county of the first class.
(b) A county of the first class may expend the revenue described in Subsection (5)(a) for revitalization of a convention center owned by the county within a city of the first class and surrounding revitalization projects related to the convention center.
(1) Subject to the other provisions of this part, a city or town may impose a sales and use tax of up to .30% on the transactions described in Subsection 59-12-103(1) located within the city or town.
(2) A city or town imposing a sales and use tax under this section shall expend the revenues collected from the sales and use tax as described in Section 59-12-2212.2.
(3) Notwithstanding Section 59-12-2208, a city, or town legislative body may, but is not required to, submit an opinion question to the city's, or town's registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section.
(1) Subject to the other provisions of this part, a county legislative body may impose a sales and use tax of up to .30% on the transactions described in Subsection 59-12-103(1) within the county, including the cities and towns within the county.
(2)
(a) Subject to Subsection (3), before obtaining voter approval in accordance with Section 59-12-2208, a county legislative body shall adopt a resolution specifying the percentage of revenues the county will receive from the sales and use tax under this section that will be allocated to fund uses described in Section 59-12-2212.2.
(b) A county legislative body of a county of the third through sixth class that imposes a sales and use tax as described in Subsection (1) on or after January 1, 2024, shall specify the percentage of revenues the county will receive from the sales and use tax under this section that will be allocated to fund uses described in Section 59-12-2212.2 or for public safety purposes as provided in Subsection (3)(b).
(3)
(a) Except as provided in Subsection (2)(b), a county legislative body shall in the resolution described in Subsection (2) allocate 100% of the revenues the county will receive from the sales and use tax under this section for one or more of the purposes described in Section 59-12-2212.2.
(b) In addition to the purposes described in Section 59-12-2212.2, a county legislative body of a county of the third through sixth class that imposes a sales and use tax as authorized in this section on or after January 1, 2024, may allocate revenues to public safety purposes.
(4) Notwithstanding Section 59-12-2208, the opinion question required by Section 59-12-2208 shall state the allocations the county legislative body makes in accordance with this section.
(5) The revenues collected from a sales and use tax under this section shall be:
(a) allocated in accordance with the allocations specified in the resolution under Subsection (2); and
(b) expended as provided in this section.
(6) If a county legislative body allocates revenues collected from a sales and use tax under this section for a state highway project, before beginning the state highway project within the county, the county legislative body shall:
(a) obtain approval from the Transportation Commission to complete the project; and
(b) enter into an interlocal agreement established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, with the Department of Transportation to complete the project.
(7)
(a) If after a county legislative body imposes a sales and use tax under this section the county legislative body seeks to change an allocation specified in the resolution under Subsection (2), the county legislative body may change the allocation by:
(i) adopting a resolution specifying the percentage of revenues the county will receive from the sales and use tax under this section that will be allocated to fund one or more of the items described in Section 59-12-2212.2or Subsection (2)(b); and
(ii) obtaining approval to change the allocation of the sales and use tax by a majority of all of the members of the county legislative body; and
(iii) subject to Subsection (8)(a):
(A) in accordance with Section 59-12-2208, submitting an opinion question to the county's registered voters voting on changing the allocation so that each registered voter has the opportunity to express the registered voter's opinion on whether the allocation should be changed; and
(B) in accordance with Section 59-12-2208, obtaining approval to change the allocation from a majority of the county's registered voters voting on changing the allocation.
(b) A county of the third through sixth class that imposes a sales and use tax as authorized in this section on or after January 1, 2024, that seeks to change the allocation of the revenues is not required to submit the opinion question to the county's registered voters.
(8)
(a) Notwithstanding Section 59-12-2208, the opinion question required by Subsection (7)(c)(i) shall state the allocations specified in the resolution adopted in accordance with Subsection (7)(a) and approved by the county legislative body in accordance with Subsection (7)(b).
(b) Notwithstanding Section 59-12-2208, a county legislative body of a county of the third through sixth class that imposes a sales and use tax under this section on or after January 1, 2024, may, but is not required to, submit an opinion question to the county's registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section.
(9) Revenues collected from a sales and use tax under this section that a county allocates for a state highway within the county shall be:
(a) deposited into the Highway Projects Within Counties Fund created by Section 72-2-121.1; and
(b) expended as provided in Section 72-2-121.1.
(10)
(a) Notwithstanding Section 59-12-2206 and subject to Subsection (10)(b), revenues collected from a sales and use tax under this section that a county allocates for a project, debt service, or bond issuance cost relating to a highway that is a principal arterial highway or minor arterial highway that is included in a metropolitan planning organization's regional transportation plan, but is not a state highway, shall be transferred to the Department of Transportation if the transfer of the revenues is required under an interlocal agreement:
(i) entered into on or before January 1, 2010; and
(ii) established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act.
(b) The Department of Transportation shall expend the revenues described in Subsection (10)(a) as provided in the interlocal agreement described in Subsection (10)(a).
(1) Subject to the other provisions of this part, and subject to Subsection (8), a county legislative body may impose a sales and use tax of up to .25% on the transactions described in Subsection 59-12-103(1) within the county, including the cities and towns within the county.
(2)
(a) Except as provided in Subsection (2)(b), and subject to Subsections (3) through (6) and Section 59-12-2207, the revenue collected from a sales and use tax under this section may only be expended as described in Section 59-12-2212.2.
(b) Subject to Subsections (3) through (6), and after application of Subsection 59-12-2206(5), in a county of the first or second class, or if a county is part of an area metropolitan planning organization, that portion of the county within the metropolitan planning organization, the revenue collected from a sales and use tax under this section may only be expended as described in Section 59-12-2212.2, and only if the expenditure is for:
(i) a project or service:
(A) relating to a regionally significant transportation facility or collector road for the portion of the project or service that is performed within the county;
(B) for new capacity or congestion mitigation, and not for operation or maintenance, if the project or service is performed within the county; and
(C) on a priority list created by the county's council of governments in accordance with Subsection (5) and approved by the county legislative body in accordance with Subsection (5);
(ii) corridor preservation for a project or service described in Subsection (2)(b)(i)(A) or (B); or
(iii) debt service or bond issuance costs related to a project or service described in Subsection (2)(b)(i)(A) or (B).
(c) The restriction in Subsection (2)(b)(i)(B) from using revenue for operation or maintenance does not apply to any revenue subject to rights or obligations under a contract entered into before January 1, 2019, between a county and a public transit district.
(3) For revenue expended under this section for a project or service described in Subsection (2) that is on or part of a regionally significant transportation facility and that constructs or adds a new through lane or interchange, or provides new fixed guideway public transit service, the project shall be part of:
(a) the statewide long-range plan; or
(b) a regional transportation plan of the area metropolitan planning organization if a metropolitan planning organization area exists for the area.
(4)
(a) As provided in this Subsection (4), a council of governments shall:
(i) develop a written prioritization process for the prioritization of projects to be funded by revenues collected from a sales and use tax under this section;
(ii) create a priority list of transportation projects or services described in Section 59-12-2212.2 in accordance with Subsection (5); and
(iii) present the priority list to the county legislative body for approval in accordance with Subsection (5).
(b) The written prioritization process described in Subsection (4)(a)(i) shall include:
(i) a definition of the type of projects to which the written prioritization process applies;
(ii) subject to Subsection (4)(c), the specification of a weighted criteria system that the council of governments will use to rank proposed projects and how that weighted criteria system will be used to determine which proposed projects will be prioritized;
(iii) the specification of data that is necessary to apply the weighted criteria system;
(iv) application procedures for a project to be considered for prioritization by the council of governments; and
(v) any other provision the council of governments considers appropriate.
(c) The weighted criteria system described in Subsection (4)(b)(ii) shall include the following:
(i) the cost effectiveness of a project;
(ii) the degree to which a project will mitigate regional congestion;
(iii) the compliance requirements of applicable federal laws or regulations;
(iv) the economic impact of a project;
(v) the degree to which a project will require tax revenues to fund maintenance and operation expenses; and
(vi) any other provision the council of governments considers appropriate.
(d) A council of governments of a county of the first or second class shall submit the written prioritization process described in Subsection (4)(a)(i) to the Executive Appropriations Committee for approval prior to taking final action on:
(i) the written prioritization process; or
(ii) any proposed amendment to the written prioritization process.
(5)
(a) A council of governments shall use the weighted criteria system adopted in the written prioritization process developed in accordance with Subsection (4) to create a priority list of transportation projects or services for which revenues collected from a sales and use tax under this section may be expended.
(b) Before a council of governments may finalize a priority list or the funding level of a project, the council of governments shall conduct a public meeting on:
(i) the written prioritization process; and
(ii) the merits of the projects that are prioritized as part of the written prioritization process.
(c) A council of governments shall make the weighted criteria system ranking for each project prioritized as part of the written prioritization process publicly available before the public meeting required by Subsection (5)(b) is held.
(d) If a council of governments prioritizes a project over another project with a higher rank under the weighted criteria system, the council of governments shall:
(i) identify the reasons for prioritizing the project over another project with a higher rank under the weighted criteria system at the public meeting required by Subsection (5)(b); and
(ii) make the reasons described in Subsection (5)(d)(i) publicly available.
(e) Subject to Subsections (5)(f) and (g), after a council of governments finalizes a priority list in accordance with this Subsection (5), the council of governments shall:
(i) submit the priority list to the county legislative body for approval; and
(ii) obtain approval of the priority list from a majority of the members of the county legislative body.
(f) A council of governments may only submit one priority list per calendar year to the county legislative body.
(g) A county legislative body may only consider and approve one priority list submitted under Subsection (5)(e) per calendar year.
(6) In a county of the first class, revenues collected from a sales and use tax under this section that a county allocates for a purpose described in Section 59-12-2212.2 shall be:
(a) deposited in or transferred to the County of the First Class Highway Projects Fund created by Section 72-2-121; and
(b) expended as provided in Section 72-2-121.
(7) Notwithstanding Section 59-12-2208, a county legislative body may, but is not required to, submit an opinion question to the county's registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section.
(8)
(a)
(i) Notwithstanding any other provision in this section, if the entire boundary of a county is annexed into a large public transit district, if the county legislative body wishes to impose a sales and use tax under this section, the county legislative body shall pass the ordinance to impose a sales and use tax under this section on or before June 30, 2022.
(ii) If the entire boundary of a county is annexed into a large public transit district, the county legislative body may not pass an ordinance to impose a sales and use tax under this section on or after July 1, 2022.
(b) Notwithstanding the deadline described in Subsection (8)(a), any sales and use tax imposed under this section on or before June 30, 2022, may remain in effect.
(1) Subject to the other provisions of this part, and subject to Subsection (8), the following may impose a sales and use tax under this section:
(a) if, on April 1, 2009, a county legislative body of a county of the second class imposes a sales and use tax under this section, the county legislative body of the county of the second class may impose the sales and use tax on the transactions:
(i) described in Subsection 59-12-103(1); and
(ii) within the county, including the cities and towns within the county; or
(b) if, on April 1, 2009, a county legislative body of a county of the second class does not impose a sales and use tax under this section:
(i) a city legislative body of a city within the county of the second class may impose a sales and use tax under this section on the transactions described in Subsection 59-12-103(1) within that city;
(ii) a town legislative body of a town within the county of the second class may impose a sales and use tax under this section on the transactions described in Subsection 59-12-103(1) within that town; and
(iii) the county legislative body of the county of the second class may impose a sales and use tax on the transactions described in Subsection 59-12-103(1):
(A) within the county, including the cities and towns within the county, if on the date the county legislative body provides the notice described in Section 59-12-2209 to the commission stating that the county will enact a sales and use tax under this section, no city or town within that county imposes a sales and use tax under this section or has provided the notice described in Section 59-12-2209 to the commission stating that the city or town will enact a sales and use tax under this section; or
(B) within the county, except for within a city or town within that county, if, on the date the county legislative body provides the notice described in Section 59-12-2209 to the commission stating that the county will enact a sales and use tax under this section, that city or town imposes a sales and use tax under this section or has provided the notice described in Section 59-12-2209 to the commission stating that the city or town will enact a sales and use tax under this section.
(2) For purposes of Subsection (1) and subject to the other provisions of this section, a county, city, or town legislative body that imposes a sales and use tax under this section may impose the tax at a rate of .25%.
(3)
(a) Except as provided in Subsection (3)(b), and subject to Subsection (4), a sales and use tax imposed under this section shall be expended as determined by the county, city, or town legislative body for uses described in Section 59-12-2212.2.
(b)
(i) Notwithstanding Subsection 59-12-2212.2(1)(a), revenues collected from a sales and use tax under this section may only be used for new capacity or congestion mitigation projects, and may not be expended for operation or maintenance purposes.
(ii) The restriction in Subsection (3)(b)(i) from using revenue for operation or maintenance purposes does not apply to any revenue subject to rights or obligations under a contract entered into before January 1, 2019, between a county, city, or town legislative body and a public transit district.
(4) A county, city, or town legislative body may not expend revenue collected within a county, city, or town from a tax under this section for a purpose described in Section 59-12-2212.2 unless the purpose is recommended by:
(a) for a county that is part of a metropolitan planning organization, the metropolitan planning organization of which the county is a part; or
(b) for a county that is not part of a metropolitan planning organization, the council of governments of which the county is a part.
(5) Before a city or town legislative body may impose a sales and use tax under this section, the city or town legislative body shall provide a copy of the notice described in Section 59-12-2209 that the city or town legislative body provides to the commission:
(a) to the county legislative body within which the city or town is located; and
(b) at the same time as the city or town legislative body provides the notice to the commission.
(6) Subject to Section 59-12-2207, the commission shall transmit revenues collected within a county, city, or town from a tax under this part that will be expended for a purpose described in Section 59-12-2212.2 to the county, city, or town legislative body in accordance with Section 59-12-2206.
(7) Notwithstanding Section 59-12-2208, a county, city, or town legislative body may, but is not required to, submit an opinion question to the county's, city's, or town's registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section.
(8)
(a)
(i) Notwithstanding any other provision in this section, if the entire boundary of a county, city, or town is annexed into a large public transit district, if the county, city, or town legislative body wishes to impose a sales and use tax under this section, the county, city, or town legislative body shall pass the ordinance to impose a sales and use tax under this section on or before June 30, 2022.
(ii) If the entire boundary of a county, city, or town is annexed into a large public transit district, the county, city, or town legislative body may not pass the ordinance to impose a sales and use tax under this section on or after July 1, 2022.
(b) Notwithstanding the deadline described in Subsection (8)(a), any sales and use tax imposed under this section by passage of a county, city, or town ordinance on or before June 30, 2022, may remain in effect.
(1) Subject to the other provisions of this part, and subject to Subsection (13), a county legislative body may impose a sales and use tax of .25% on the transactions described in Subsection 59-12-103(1) within the county, including the cities and towns within the county.
(2) Subject to Subsection (9), the commission shall distribute sales and use tax revenue collected under this section as provided in Subsections (3) through (8).
(3) After application of Subsection 59-12-2206(5), if the entire boundary of a county that imposes a sales and use tax under this section is annexed into a single public transit district, the commission shall distribute the sales and use tax revenue collected within the county as follows:
(a) .10% shall be transferred to the public transit district in accordance with Section 59-12-2206;
(b) .10% shall be distributed as provided in Subsection (6); and
(c) .05% shall be distributed to the county legislative body.
(4) If the entire boundary of a county that imposes a sales and use tax under this section is not annexed into a single public transit district, but a city or town within the county is annexed into a single large public transit district, the commission shall distribute the sales and use tax revenue collected within the county as follows:
(a) for a city or town within the county that is annexed into a single public transit district, the commission shall distribute the sales and use tax revenue collected within that city or town as follows:
(i) .10% shall be transferred to the public transit district in accordance with Section 59-12-2206;
(ii) .10% shall be distributed as provided in Subsection (6); and
(iii) .05% shall be distributed to the county legislative body;
(b) for an eligible political subdivision within the county, the commission shall distribute the sales and use tax revenue collected within that eligible political subdivision as follows:
(i) .10% shall be transferred to the eligible political subdivision in accordance with Section 59-12-2206;
(ii) .10% shall be distributed as provided in Subsection (6); and
(iii) .05% shall be distributed to the county legislative body; and
(c) the commission shall distribute the sales and use tax revenue, except for the sales and use tax revenue described in Subsections (4)(a) and (b), as follows:
(i) .10% shall be distributed as provided in Subsection (6); and
(ii) .15% shall be distributed to the county legislative body.
(5) For a county not described in Subsection (3) or (4), if a county of the second, third, fourth, fifth, or sixth class imposes a sales and use tax under this section, the commission shall distribute the sales and use tax revenue collected within the county as follows:
(a) for a city or town within the county that is annexed into a single public transit district, the commission shall distribute the sales and use tax revenue collected within that city or town as follows:
(i) .10% shall be distributed as provided in Subsection (6);
(ii) .10% shall be distributed as provided in Subsection (7); and
(iii) .05% shall be distributed to the county legislative body;
(b) for an eligible political subdivision within the county, the commission shall distribute the sales and use tax revenue collected within that eligible political subdivision as follows:
(i) .10% shall be distributed as provided in Subsection (6);
(ii) .10% shall be distributed as provided in Subsection (7); and
(iii) .05% shall be distributed to the county legislative body; and
(c) the commission shall distribute the sales and use tax revenue, except for the sales and use tax revenue described in Subsections (5)(a) and (b), as follows:
(i) .10% shall be distributed as provided in Subsection (6); and
(ii) .15% shall be distributed to the county legislative body.
(6)
(a) Subject to Subsection (6)(b), the commission shall make the distributions required by Subsections (3)(b), (4)(a)(ii), (4)(b)(ii), (4)(c)(i), (5)(a)(i), (5)(b)(i), (5)(c)(i), and (7)(d)(ii)(A) as follows:
(i) 50% of the total revenue collected under Subsections (3)(b), (4)(a)(ii), (4)(b)(ii), (4)(c)(i), (5)(a)(i), (5)(b)(i), (5)(c)(i), and (7)(d)(ii)(A) within the counties and cities that impose a tax under this section shall be distributed to the unincorporated areas, cities, and towns within those counties and cities on the basis of the percentage that the population of each unincorporated area, city, or town bears to the total population of all of the counties and cities that impose a tax under this section; and
(ii) 50% of the total revenue collected under Subsections (3)(b), (4)(a)(ii), (4)(b)(ii), (4)(c)(i), (5)(a)(i), (5)(b)(i), (5)(c)(i), and (7)(d)(ii)(A) within the counties and cities that impose a tax under this section shall be distributed to the unincorporated areas, cities, and towns within those counties and cities on the basis of the location of the transaction as determined under Sections 59-12-211 through 59-12-215.
(b)
(i) Population for purposes of this Subsection (6) shall be based on, to the extent not otherwise required by federal law:
(A) the most recent estimate from the Utah Population Committee created in Section 63C-20-103; or
(B) if the Utah Population Committee estimate is not available for each municipality and unincorporated area, the adjusted sub-county population estimate provided by the Utah Population Committee in accordance with Section 63C-20-104.
(ii) If a needed population estimate is not available from the United States Bureau of the Census, population figures shall be derived from an estimate from the Utah Population Committee.
(7)
(a)
(i) Subject to the requirements in Subsections (7)(b) and (c), a county legislative body:
(A) for a county that obtained approval from a majority of the county's registered voters voting on the imposition of a sales and use tax under this section prior to May 10, 2016, may, in consultation with any cities, towns, or eligible political subdivisions within the county, and in compliance with the requirements for changing an allocation under Subsection (7)(e), allocate the revenue under Subsection (5)(a)(ii) or (5)(b)(ii) by adopting a resolution specifying the percentage of revenue under Subsection (5)(a)(ii) or (5)(b)(ii) that will be allocated to a public transit district or an eligible political subdivision; or
(B) for a county that imposes a sales and use tax under this section on or after May 10, 2016, shall, in consultation with any cities, towns, or eligible political subdivisions within the county, allocate the revenue under Subsection (5)(a)(ii) or (5)(b)(ii) by adopting a resolution specifying the percentage of revenue under Subsection (5)(a)(ii) or (5)(b)(ii) that will be allocated to a public transit district or an eligible political subdivision.
(ii) If a county described in Subsection (7)(a)(i)(A) does not allocate the revenue under Subsection (5)(a)(ii) or (5)(b)(ii) in accordance with Subsection (7)(a)(i)(A), the commission shall distribute 100% of the revenue under Subsection (5)(a)(ii) or (5)(b)(ii) to:
(A) a public transit district for a city or town within the county that is annexed into a single public transit district; or
(B) an eligible political subdivision within the county.
(b) If a county legislative body allocates the revenue as described in Subsection (7)(a)(i), the county legislative body shall allocate not less than 25% of the revenue under Subsection (5)(a)(ii) or (5)(b)(ii) to:
(i) a public transit district for a city or town within the county that is annexed into a single public transit district; or
(ii) an eligible political subdivision within the county.
(c) Notwithstanding Section 59-12-2208, the opinion question described in Section 59-12-2208 shall state the allocations the county legislative body makes in accordance with this Subsection (7).
(d) The commission shall make the distributions required by Subsection (5)(a)(ii) or (5)(b)(ii) as follows:
(i) the percentage specified by a county legislative body shall be distributed in accordance with a resolution adopted by a county legislative body under Subsection (7)(a) to an eligible political subdivision or a public transit district within the county; and
(ii) except as provided in Subsection (7)(a)(ii), if a county legislative body allocates less than 100% of the revenue under Subsection (5)(a)(ii) or (5)(b)(ii) to a public transit district or an eligible political subdivision, the remainder of the revenue under Subsection (5)(a)(ii) or (5)(b)(ii) not allocated by a county legislative body through a resolution under Subsection (7)(a) shall be distributed as follows:
(A) 50% of the revenue as provided in Subsection (6); and
(B) 50% of the revenue to the county legislative body.
(e) If a county legislative body seeks to change an allocation specified in a resolution under Subsection (7)(a), the county legislative body may change the allocation by:
(i) adopting a resolution in accordance with Subsection (7)(a) specifying the percentage of revenue under Subsection (5)(a)(ii) or (5)(b)(ii) that will be allocated to a public transit district or an eligible political subdivision;
(ii) obtaining approval to change the allocation of the sales and use tax by a majority of all the members of the county legislative body; and
(iii) subject to Subsection (7)(f):
(A) in accordance with Section 59-12-2208, submitting an opinion question to the county's registered voters voting on changing the allocation so that each registered voter has the opportunity to express the registered voter's opinion on whether the allocation should be changed; and
(B) in accordance with Section 59-12-2208, obtaining approval to change the allocation from a majority of the county's registered voters voting on changing the allocation.
(f) Notwithstanding Section 59-12-2208, the opinion question required by Subsection (7)(e)(iii)(A) shall state the allocations specified in the resolution adopted in accordance with Subsection (7)(e) and approved by the county legislative body in accordance with Subsection (7)(e)(ii).
(g)
(i) If a county makes an allocation by adopting a resolution under Subsection (7)(a) or changes an allocation by adopting a resolution under Subsection (7)(e), the allocation shall take effect on the first distribution the commission makes under this section after a 90-day period that begins on the date the commission receives written notice meeting the requirements of Subsection (7)(g)(ii) from the county.
(ii) The notice described in Subsection (7)(g)(i) shall state:
(A) that the county will make or change the percentage of an allocation under Subsection (7)(a) or (e); and
(B) the percentage of revenue under Subsection (5)(a)(ii) or (5)(b)(ii) that will be allocated to a public transit district or an eligible political subdivision.
(8)
(a) If a public transit district is organized after the date a county legislative body first imposes a tax under this section, a change in a distribution required by this section may not take effect until the first distribution the commission makes under this section after a 90-day period that begins on the date the commission receives written notice from the public transit district of the organization of the public transit district.
(b) If an eligible political subdivision intends to provide public transit service within a county after the date a county legislative body first imposes a tax under this section, a change in a distribution required by this section may not take effect until the first distribution the commission makes under this section after a 90-day period that begins on the date the commission receives written notice from the eligible political subdivision stating that the eligible political subdivision intends to provide public transit service within the county.
(9)
(a)
(i) Notwithstanding Subsections (3) through (8), for a county that has not imposed a sales and use tax under this section before May 8, 2018, and if the county imposes a sales and use tax under this section before June 30, 2019, the commission shall distribute all of the sales and use tax revenue collected by the county before June 30, 2019, to the county for the purposes described in Subsection (9)(a)(ii).
(ii) For any revenue collected by a county pursuant to Subsection (9)(a)(i) before June 30, 2019, the county may expend that revenue for:
(A) reducing transportation related debt;
(B) a regionally significant transportation facility; or
(C) a public transit project of regional significance.
(b) For a county that has not imposed a sales and use tax under this section before May 8, 2018, and if the county imposes a sales and use tax under this section before June 30, 2019, the commission shall distribute the sales and use tax revenue collected by the county on or after July 1, 2019, as described in Subsections (3) through (8).
(c) For a county that has not imposed a sales and use tax under this section before June 30, 2019, if the entire boundary of that county is annexed into a large public transit district, and if the county imposes a sales and use tax under this section on or after July 1, 2019, the commission shall distribute the sales and use tax revenue collected by the county as described in Subsections (3) through (8).
(10)
(a) Except as provided in Subsection (10)(b), a county, city, or town may expend revenue collected from a tax under this section, except for revenue the commission distributes in accordance with Subsection (3)(a), (4)(a)(i), (4)(b)(i), or (7)(d)(i), for a purpose described in Section 59-12-2212.2.
(b) In addition to the uses permitted in Subsection (10)(a), a county of the first class may transfer the portion allocated to the county under this section to a convention center public infrastructure district created in accordance with Section 17D-4-202.1 for revitalization of a convention center owned by the county within a city of the first class and surrounding revitalization projects related to the convention center.
(11)
(a) A public transit district or an eligible political subdivision may expend revenue the commission distributes in accordance with Subsection (3)(a), (4)(a)(i), (4)(b)(i), or (7)(d)(i) for capital expenses and service delivery expenses of the public transit district or eligible political subdivision.
(b) As provided in Section 59-12-2212.2, for the .10% designated for public transit described in Subsection (3)(a) that is not contractually obligated for debt service, beginning on July 1, 2026, a public transit district shall make available to the Department of Transportation an amount equal to 10% of the .10% to be used for public transit innovation grants as provided in Title 72, Chapter 2, Part 4, Public Transit Innovation Grants.
(12) Notwithstanding Section 59-12-2208, a county, city, or town legislative body may, but is not required to, submit an opinion question to the county's, city's, or town's registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section.
(13)
(a)
(i) Notwithstanding any other provision in this section, if the entire boundary of a county is annexed into a large public transit district, if the county legislative body wishes to impose a sales and use tax under this section, the county legislative body shall pass the ordinance to impose a sales and use tax under this section on or before June 30, 2022.
(ii) If the entire boundary of a county is annexed into a large public transit district, the county legislative body may not pass an ordinance to impose a sales and use tax under this section on or after July 1, 2022.
(b) Notwithstanding the deadline described in Subsection (13)(a), any sales and use tax imposed under this section by passage of a county ordinance on or before June 30, 2022, may remain in effect.
(14)
(a) Beginning on July 1, 2020, and subject to Subsection (15), if a county has not imposed a sales and use tax under this section, subject to the provisions of this part, the legislative body of a city or town described in Subsection (14)(b) may impose a .25% sales and use tax on the transactions described in Subsection 59-12-103(1) within the city or town.
(b) The following cities or towns may impose a sales and use tax described in Subsection (14)(a):
(i) a city or town that has been annexed into a public transit district; or
(ii) an eligible political subdivision.
(c) If a city or town imposes a sales and use tax as provided in this section, the commission shall distribute the sales and use tax revenue collected by the city or town as follows:
(i) .125% to the city or town that imposed the sales and use tax, to be distributed as provided in Subsection (6); and
(ii) .125%, as applicable, to:
(A) the public transit district in which the city or town is annexed; or
(B) the eligible political subdivision for public transit services.
(d) If a city or town imposes a sales and use tax under this section and the county subsequently imposes a sales and use tax under this section, the commission shall distribute the sales and use tax revenue collected within the city or town as described in Subsection (14)(c).
(15)
(a)
(i) Notwithstanding any other provision in this section, if a city or town legislative body wishes to impose a sales and use tax under this section, the city or town legislative body shall pass the ordinance to impose a sales and use tax under this section on or before June 30, 2022.
(ii) A city or town legislative body may not pass an ordinance to impose a sales and use tax under this section on or after July 1, 2022.
(b) Notwithstanding the deadline described in Subsection (15)(a), any sales and use tax imposed under this section by passage of an ordinance by a city or town legislative body on or before June 30, 2022, may remain in effect.
(1) Subject to the other provisions of this part and subject to the requirements of this section, the following counties may impose a sales and use tax under this section:
(a) a county legislative body may impose the sales and use tax on the transactions described in Subsection 59-12-103(1) located within the county, including the cities and towns within the county if:
(i) the entire boundary of a county is annexed into a large public transit district; and
(ii) the maximum amount of sales and use tax authorizations allowed in accordance with Section 59-12-2203 and authorized under the following sections has been imposed:
(A) Section 59-12-2213;
(B) Section 59-12-2214;
(C) Section 59-12-2215;
(D) Section 59-12-2216;
(E) Section 59-12-2217;
(F) Section 59-12-2218; and
(G) Section 59-12-2219;
(b) if the county is not annexed into a large public transit district, the county legislative body may impose the sales and use tax on the transactions described in Subsection 59-12-103(1) located within the county, including the cities and towns within the county if:
(i) the county is an eligible political subdivision; or
(ii) a city or town within the boundary of the county is an eligible political subdivision; or
(c) a county legislative body of a county not described in Subsection (1)(a) or (1)(b) may impose the sales and use tax on the transactions described in Subsection 59-12-103(1) located within the county, including the cities and towns within the county.
(2) For purposes of Subsection (1) and subject to the other provisions of this section, a county legislative body that imposes a sales and use tax under this section may impose the tax at a rate of .2%.
(3)
(a) The commission shall distribute sales and use tax revenue collected under this section as determined by a county legislative body as described in Subsection (3)(b).
(b) If a county legislative body imposes a sales and use tax as described in this section, the county legislative body may elect to impose a sales and use tax revenue distribution as described in Subsection (4), (5), (6), or (7), depending on the class of county, and presence and type of a public transit provider in the county.
(4) Subject to Subsection (11), and after application of Subsection 59-12-2206(5), if a county legislative body imposes a sales and use tax as described in this section, and the entire boundary of the county is annexed into a large public transit district, and the county is a county of the first class, the commission shall distribute the sales and use tax revenue as follows:
(a) .10% to a public transit district as described in Subsection (11);
(b) .05% to the cities and towns as provided in Subsection (8); and
(c) .05% to the county legislative body.
(5) Subject to Subsection (11), if a county legislative body imposes a sales and use tax as described in this section and the entire boundary of the county is annexed into a large public transit district, and the county is a county not described in Subsection (4), the commission shall distribute the sales and use tax revenue as follows:
(a) .10% to a public transit district as described in Subsection (11);
(b) .05% to the cities and towns as provided in Subsection (8); and
(c) .05% to the county legislative body.
(6)
(a) Except as provided in Subsection (14)(c), if the entire boundary of a county that imposes a sales and use tax as described in this section is not annexed into a single public transit district, but a city or town within the county is annexed into a single public transit district, or if the city or town is an eligible political subdivision, the commission shall distribute the sales and use tax revenue collected within the county as provided in Subsection (6)(b) or (c).
(b) For a city, town, or portion of the county described in Subsection (6)(a) that is annexed into the single public transit district, or an eligible political subdivision, the commission shall distribute the sales and use tax revenue collected within the portion of the county that is within a public transit district or eligible political subdivision as follows:
(i) .05% to a public transit provider as described in Subsection (11);
(ii) .075% to the cities and towns as provided in Subsection (8); and
(iii) .075% to the county legislative body.
(c) Except as provided in Subsection (14)(c), for a city, town, or portion of the county described in Subsection (6)(a) that is not annexed into a single public transit district or eligible political subdivision in the county, the commission shall distribute the sales and use tax revenue collected within that portion of the county as follows:
(i) .08% to the cities and towns as provided in Subsection (8); and
(ii) .12% to the county legislative body.
(7) For a county without a public transit service that imposes a sales and use tax as described in this section, the commission shall distribute the sales and use tax revenue collected within the county as follows:
(a) .08% to the cities and towns as provided in Subsection (8); and
(b) .12% to the county legislative body.
(8)
(a) Subject to Subsections (8)(b) and (c), the commission shall make the distributions required by Subsections (4)(b), (5)(b), (6)(b)(ii), (6)(c)(i), and (7)(a) as follows:
(i) 50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii), (6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4) through (7) shall be distributed to the unincorporated areas, cities, and towns within those counties on the basis of the percentage that the population of each unincorporated area, city, or town bears to the total population of all of the counties that impose a tax under this section; and
(ii) 50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii), (6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4) through (7) shall be distributed to the unincorporated areas, cities, and towns within those counties on the basis of the location of the transaction as determined under Sections 59-12-211 through 59-12-215.
(b)
(i) Population for purposes of this Subsection (8) shall be based on, to the extent not otherwise required by federal law:
(A) the most recent estimate from the Utah Population Committee created in Section 63C-20-103; or
(B) if the Utah Population Committee estimate is not available for each municipality and unincorporated area, the adjusted sub-county population estimate provided by the Utah Population Committee in accordance with Section 63C-20-104.
(ii) If a needed population estimate is not available from the United States Census Bureau, population figures shall be derived from an estimate from the Utah Population Estimates Committee created by executive order of the governor.
(c)
(i) Beginning on January 1, 2024, if the Division of Housing and Community Development within the Governor's Office of Economic Development determines that a city or town is ineligible for funds in accordance with Subsection 10-21-202(8), beginning the first day of the calendar quarter after receiving 90 days' notice, the commission shall distribute the distribution that city or town would have received under Subsection (8)(a) to cities or towns to which Subsection 10-21-202(8) does not apply.
(ii) Beginning on January 1, 2024, if the Division of Housing and Community Development within the Governor's Office of Economic Development determines that a county is ineligible for funds in accordance with Subsection 17-80-202(6), beginning the first day of the calendar quarter after receiving 90 days' notice, the commission shall distribute the distribution that county would have received under Subsection (8)(a) to counties to which Subsection 17-80-202(6) does not apply.
(9) If a public transit service is organized after the date a county legislative body first imposes a tax under this section, a change in a distribution required by this section may not take effect until the first distribution the commission makes under this section after a 90-day period that begins on the date the commission receives written notice from the public transit provider that the public transit service has been organized.
(10)
(a) Except as provided in Subsections (10)(b) and (c), a county, city, or town that received distributions described in Subsections (4)(b), (4)(c), (5)(b), (5)(c), (6)(b)(ii), (6)(b)(iii), (6)(c), and (7) may only expend those funds for a purpose described in Section 59-12-2212.2.
(b) If a county described in Subsection (1)(a) that is a county of the first class imposes the sales and use tax authorized in this section, the county may also use funds distributed in accordance with Subsection (4)(c) for public safety purposes.
(c) If a county described in Subsection (1)(a) that is a county of the second class imposes the sales and use tax authorized in this section, the county may also use funds distributed in accordance with Subsection (5)(c) for public safety purposes.
(d) In addition to the purposes described in Subsections (10)(a) and (b), for a city relevant to a project area, as that term is defined in Section 63N-23-801, an allowable use of revenue from a sales and use tax under this section includes the revitalization of a convention center owned by the county within a city of the first class and surrounding revitalization projects related to the convention center.
(11)
(a) Subject to Subsections (11)(b), (c), and (d), revenue designated for public transit as described in this section may be used for capital expenses and service delivery expenses of:
(i) a public transit district;
(ii) an eligible political subdivision; or
(iii) another entity providing a service for public transit or a transit facility within the relevant county, as those terms are defined in Section 17B-2a-802.
(b)
(i)
(A) If a county of the first class imposes a sales and use tax described in this section, beginning on the date on which the county imposes the sales and use tax under this section, and for a three-year period after at least three counties described in Subsections (4) and (5) have imposed a tax under this section, or until June 30, 2030, whichever comes first, revenue designated for public transit within a county of the first class as described in Subsection (4)(a) shall be transferred to the County of the First Class Highway Projects Fund created in Section 72-2-121.
(B) Revenue deposited into the County of the First Class Highway Projects Fund created in Section 72-2-121 as described in Subsection (11)(b)(i)(A) may be used for public transit innovation grants as provided in Title 72, Chapter 2, Part 4, Public Transit Innovation Grants.
(ii) If a county of the first class imposes a sales and use tax described in this section, beginning on the day three years after the date on which at least three counties described in Subsections (4) and (5) have imposed a tax under this section, or beginning on July 1, 2030, whichever comes first, for revenue designated for public transit as described in Subsection (4)(a):
(A) 50% of the revenue from a sales and use tax imposed under this section in a county of the first class shall be transferred to the County of the First Class Highway Projects Fund created in Section 72-2-121 to be used for a purpose described in Subsection (11)(a); and
(B) 50% of the revenue from a sales and use tax imposed under this section in a county of the first class shall be transferred to the Transit Transportation Investment Fund Commuter Rail Subaccount created in Subsection 72-2-124(13).
(c)
(i) If a county that is not a county of the first class for which the entire boundary of the county is annexed into a large public transit district imposes a sales and use tax described in this section, beginning on the date on which the county imposes the sales and use tax under this section, and for a three-year period following the date on which at least three counties described in Subsections (4) and (5) have imposed a tax under this section, or until June 30, 2030, whichever comes first, revenue designated for public transit as described in Subsection (5)(a) shall be transferred to the relevant county legislative body to be used for a purpose determined by the county legislative body.
(ii) If a county that is not a county of the first class for which the entire boundary of the county is annexed into a large public transit district imposes a sales and use tax described in this section, beginning on the day three years after the date on which at least three counties described in Subsections (4) and (5) have imposed a tax under this section, or beginning on July 1, 2030, whichever comes first, for the revenue that is designated for public transit in Subsection (5)(a):
(A) 50% shall be transferred to the Transit Transportation Investment Fund Commuter Rail Subaccount created in Subsection 72-2-124(13); and
(B) 50% shall be transferred to the relevant county legislative body to be used for a purpose described in Subsection (11)(a).
(d) Except as provided in Subsection (14)(c), for a county that imposes a sales and use tax under this section, for revenue designated for public transit as described in Subsection (6)(b)(i), the revenue shall be transferred to the relevant county legislative body to be used for a purpose described in Subsection (11)(a).
(12) A large public transit district shall send notice to the commission at least 90 days before the earlier of:
(a) the date that is three years after the date on which at least three counties described in Subsections (4) and (5) have imposed a tax under this section; or
(b) June 30, 2030.
(13) For a city described in Subsection (10)(c), during the bondable term of a revitalization project described in Subsection (10)(c), the city shall transfer at least 50%, and may transfer up to 100%, of any revenue the city receives from a distribution under Subsection (4)(b) to a convention center public infrastructure district created in accordance with Section 17D-4-202.1 for revitalization of a convention center owned by the county within a city of the first class and surrounding revitalization projects related to the convention center as permitted in Subsection (10)(c).
(14)
(a) Notwithstanding Section 59-12-2208, a county legislative body may, but is not required to, submit an opinion question to the county's registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section.
(b) If a county passes an ordinance to impose a sales and use tax as described in this section, the sales and use tax shall take effect on the first day of the calendar quarter after a 90-day period that begins on the date the commission receives written notice from the county of the passage of the ordinance.
(c) A county that imposed the local option sales and use tax described in this section before January 1, 2023, may maintain that county's distribution allocation in place as of January 1, 2023.
(15)
(a) Revenue collected from a sales and use tax under this section may not be used to supplant existing General Fund appropriations that a county, city, or town budgeted for transportation or public transit as of the date the tax becomes effective for a county, city, or town.
(b) The limitation under Subsection (15)(a) does not apply to a designated transportation or public transit capital or reserve account a county, city, or town established before the date the tax becomes effective.
As used in this part:
(1) "Emergency services" means:
(a) emergency medical services as defined in Section 53-2d-101;
(b) fire protection services; or
(c) a combination of emergency medical services, as defined in Section 53-2d-101, and fire protection services.
(2) "Emergency services tax" means the sales and use tax authorized under Section 59-12-2402.
(3) "Governing body" means:
(a) for a county, city, or town, the legislative body of the county, city, or town; or
(b) for a special service district:
(i) the legislative body of the county, city, or town that established the special service district, if no administrative control board has been created under Section 17D-1-301; or
(ii) the administrative control board of the special service district, if an administrative control board has been created under Section 17D-1-301.
(4) "Qualifying political subdivision" means:
(a) a specified county;
(b) a special service district established under Title 17D, Chapter 1, Special Service District Act, to provide emergency services within a specified county; or
(c) a city or town that:
(i) is located:
(A) within a specified county; and
(B) outside the boundaries of a special service district described in Subsection (4)(b); and
(ii) provides, or contracts with a special service district described in Subsection (4)(b) to receive, emergency services within the city or town.
(5) "Specified county" means a county of the second or third class, as classified in Section 17-60-104, that contains:
(a) a national park and two or more state parks within or partially within the county's boundaries; and
(b) a municipality with a population of 95,000 or more.
(1)
(a) The governing body of a qualifying political subdivision may, subject to Subsection (1)(b), impose a sales and use tax on the transactions described in Subsection 59-12-103(1) in the following amount:
(i) an amount of up to .33% if the governing body:
(A) first holds a public hearing at which the tax is discussed, subject to Subsection (2); and
(B) after the public hearing is held, passes an ordinance or resolution approving the tax; or
(ii) an amount of up to 1% if the governing body obtains approval to impose the tax from a majority of:
(A) the members of the governing body; and
(B) voters within the qualifying political subdivision voting in an election held for that purpose in accordance with Title 11, Chapter 14, Local Government Bonding Act.
(b)
(i) A tax imposed by a county under Subsection (1)(a) shall be imposed within all unincorporated areas of the county.
(ii) A tax imposed by a special service district under Subsection (1)(a) shall be imposed within the boundaries of each city and town located within the area of the special service district.
(iii) A tax may not be imposed under this section within:
(A) a portion of a city, town, or the unincorporated area of a county; or
(B) an area in which a tax under this section has already been imposed.
(c) Notwithstanding Subsection (1)(a), a qualifying political subdivision may not impose a tax under this section on:
(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and
(ii) except as provided in Subsection (1)(e), amounts paid or charged for food and food ingredients.
(d) For purposes of this Subsection (1), the location of a transaction is determined in accordance with Sections 59-12-211 through 59-12-215.
(e) A qualifying political subdivision that imposes a tax under this section shall impose the tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.
(2)
(a) The governing body of a qualifying political subdivision proposing a tax rate described in Subsection (1)(a)(i) shall, as a class A notice under Section 63G-30-102, publish notice of the public hearing required by Subsection (1)(a)(i)(A) for at least 14 days before the day of the public hearing.
(b) The notice described in Subsection (2)(a) shall:
(i) state the governing body's intent to adopt a tax under this section;
(ii) describe the proposed tax rate;
(iii) describe the cities, towns, and unincorporated areas within which the proposed tax is to be imposed;
(iv) specify the date, time, and location of the public hearing; and
(v) state that the purpose of the public hearing is to obtain public comments regarding the proposed tax.
(3) For a county proposing a tax rate described in Subsection (1)(a)(ii), the voter approval requirement in Subsection (1)(a)(ii)(B) applies only to voters residing within the unincorporated areas of the county.
(4)
(a) Subject to Subsection (4)(b), a qualifying political subdivision may use money collected from a tax imposed under this section to fund emergency services provided by, or on behalf of, a qualifying political subdivision.
(b) A qualifying political subdivision that imposes a tax under this section may:
(i) use money collected from the tax to fund emergency services within an area in which the tax is not imposed; and
(ii) enter into an agreement authorized by Title 11, Chapter 13, Interlocal Cooperation Act, allowing for another qualifying political subdivision to use money collected from the tax to fund emergency services.
(5)
(a) Except as provided in Subsection (5)(b), a tax under this section shall be administered, collected, and enforced in accordance with the same procedures used to administer, collect, and enforce the tax under:
(i)
(A) Part 1, Tax Collection; or
(B) Part 2, Local Sales and Use Tax Act; and
(ii) Chapter 1, General Taxation Policies.
(b) A tax under this section is not subject to Subsections 59-12-205(2) through (5).
(c) A tax under this section shall be levied for a period of 10 years and may, in accordance with the procedures and requirements for levying a tax under Subsections (1) through (3), be reauthorized at the end of the 10-year period by:
(i) the governing body that imposed the tax, for reauthorizing a tax rate described in Subsection (1)(a)(i); or
(ii) the governing body that imposed the tax and the qualifying political subdivision's voters, for reauthorizing a tax rate described in Subsection (1)(a)(ii).
(d) Except as provided in Subsection (5)(e), the commission shall distribute the revenue the commission collects from a tax imposed under this section directly to the qualifying political subdivision imposing the tax.
(e) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this section.
(1)
(a) Except as provided in Subsection (2), and subject to Subsection (6), if a qualifying political subdivision enacts, reauthorizes, or repeals an emergency services tax or changes the rate of an emergency services tax, the enactment, reauthorization, repeal, or change shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day period beginning on the date the commission receives notice that meets the requirements of Subsection (1)(b) from the qualifying political subdivision.
(b) The notice described in Subsection (1)(a)(ii) shall state:
(i) that the qualifying political subdivision will enact, reauthorize, repeal, or change the rate of an emergency services tax;
(ii) the statutory authority for the emergency services tax;
(iii) the effective date of the enactment, reauthorization, repeal, or change in the rate of the emergency services tax; and
(iv) if the qualifying political subdivision enacts, reauthorizes, or changes the rate of the emergency services tax, the rate of the emergency services tax.
(2)
(a) If the billing period for a transaction begins before the effective date of the enactment or reauthorization of an emergency services tax or the increase in the rate of an emergency services tax, the enactment or reauthorization of the tax or the tax rate increase shall take effect on the first day of the first billing period that begins after the effective date of the enactment or reauthorization of the tax or the tax rate increase.
(b) If the billing period for a transaction begins before the effective date of the repeal of an emergency services tax or the decrease in the rate of an emergency services tax, the repeal of the tax or the tax rate decrease shall take effect on the first day of the last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.
(c) If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, reauthorization, repeal, or change in the rate of a tax described in Subsection (1)(a) shall take effect:
(i) on the first day of a calendar quarter; and
(ii) beginning 60 days after the effective date of the enactment, reauthorization, repeal, or change in the rate of the tax under Subsection (1)(a).
(3)
(a) Except as provided in Subsection (4), if an annexation will result in the enactment, repeal, or change in the rate of an emergency services tax for an annexing area, the enactment, repeal, or change shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (3)(b) from the political subdivision that annexes the annexing area.
(b) The notice described in Subsection (3)(a)(ii) shall state:
(i) that the annexation described in Subsection (3)(a) will result in the enactment, repeal, or change in the rate of an emergency services tax for the annexing area;
(ii) the statutory authority for the emergency services tax;
(iii) the effective date of the enactment, repeal, or change in the rate of the emergency services tax; and
(iv) if the annexation results in the enactment or change in the rate of an emergency services tax for the annexing area, the rate of the emergency services tax.
(4)
(a) If the billing period for a transaction begins before the effective date of the enactment of an emergency services tax or the increase in the rate of an emergency services tax, the enactment of the tax or the tax rate increase shall take effect on the first day of the first billing period that begins after the effective date of the enactment of the tax or the tax rate increase.
(b) If the billing period for a transaction begins before the effective date of the repeal of an emergency services tax or the decrease in the rate of an emergency services tax, the repeal of the tax or the tax rate decrease shall take effect on the first day of the last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.
(c) If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (3)(a) shall take effect:
(i) on the first day of a calendar quarter; and
(ii) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the tax under Subsection (3)(a).
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and for purposes of Subsections (2)(c) and (4)(c), the commission may by rule define the term "catalogue sale."
(6)
(a) If a qualifying political subdivision reauthorizes a tax under this part in accordance with Subsection 59-12-2402(5)(c), the qualifying political subdivision shall provide to the commission notice of the reauthorization that meets the requirements of Subsection (1)(b) at least 90 days before the first day of the calendar quarter in which the reauthorization first takes effect.
(b) The commission may not enforce a tax under this part due for reauthorization unless the commission receives timely notice of the reauthorization as provided in Subsection (6)(a).
A seller or certified service provider is not liable for failing to collect an emergency services tax if the seller's or certified service provider's failure to collect the emergency services tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect an emergency services tax if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect an emergency services tax is a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay an emergency services tax or an underpayment of the emergency services tax if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term that is in the library of definitions and that is listed as taxable or exempt, included in or excluded from "sales price," or included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term that is in the library of definitions and that is listed as taxable or exempt, included in or excluded from "sales price," or included in or excluded from a definition.
As used in this chapter:
(1) "Aviation fuel" means fuel that is sold at airports and used exclusively for the operation of aircraft.
(2) "Clean fuel" means:
(a) the following special fuels:
(i) propane;
(ii) compressed natural gas;
(iii) liquified natural gas;
(iv) electricity; or
(v) hydrogen; or
(b) any motor or special fuel that meets the clean fuel vehicle standards in the federal Clean Air Act Amendments of 1990, Title II.
(3) "Commission" means the State Tax Commission.
(4) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers as published by the Bureau of Labor Statistics of the United States Department of Labor.
(5)
(a) "Diesel fuel" means any liquid that is commonly or commercially known, offered for sale, or used as a fuel in diesel engines.
(b) "Diesel fuel" includes any combustible liquid, by whatever name the liquid may be known or sold, when the liquid is used in an internal combustion engine for the generation of power to operate a motor vehicle licensed to operate on the highway, except fuel that is subject to the tax imposed in Part 2, Motor Fuel, and Part 4, Aviation Fuel, of this chapter.
(6) "Diesel gallon equivalent" means 6.06 pounds of liquified natural gas.
(7) "Distributor" means any person in this state who:
(a) imports or causes to be imported motor fuel for use, distribution, or sale, whether at retail or wholesale;
(b) produces, refines, manufactures, or compounds motor fuel in this state for use, distribution, or sale in this state;
(c) is engaged in the business of purchasing motor fuel for resale in wholesale quantities to retail dealers of motor fuel and who accounts for his own motor fuel tax liability; or
(d) for purposes of Part 4, Aviation Fuel, only, makes retail sales of aviation fuel to:
(i) federally certificated air carriers; and
(ii) other persons.
(8) "Dyed diesel fuel" means diesel fuel that is dyed in accordance with 26 U.S.C. Sec. 4082 or United States Environmental Protection Agency or Internal Revenue Service regulations and that is considered destined for nontaxable off-highway use.
(9) "Exchange agreement" means an agreement between licensed suppliers where one is a position holder in a terminal who agrees to deliver taxable motor fuel or special fuel to the other supplier or the other supplier's customer at the loading rack of the terminal where the delivering supplier holds an inventory position.
(10) "Federally certificated air carrier" means a person who holds a certificate issued by the Federal Aviation Administration authorizing the person to conduct an all-cargo operation or scheduled operation, as defined in 14 C.F.R. Sec. 110.2.
(11) "Fuels" means any gas, liquid, solid, mixture, or other energy source which is generally used in an engine or motor for the generation of power, including aviation fuel, clean fuel, diesel fuel, motor fuel, and special fuel.
(12) "Gasoline gallon equivalent" means:
(a) 5.660 pounds of compressed natural gas; or
(b) 2.198 pounds of hydrogen.
(13) "Highway" means every way or place, of whatever nature, generally open to the use of the public for the purpose of vehicular travel notwithstanding that the way or place may be temporarily closed for the purpose of construction, maintenance, or repair.
(14) "Motor fuel" means fuel that is commonly or commercially known or sold as gasoline or gasohol and is used for any purpose, but does not include aviation fuel.
(15) "Motor fuels received" means:
(a) motor fuels that have been loaded at the refinery or other place into tank cars, placed in any tank at the refinery from which any withdrawals are made directly into tank trucks, tank wagons, or other types of transportation equipment, containers, or facilities other than tank cars, or placed in any tank at the refinery from which any sales, uses, or deliveries not involving transportation are made directly; or
(b) motor fuels that have been imported by any person into the state from any other state or territory by tank car, tank truck, pipeline, or any other conveyance at the time when, and the place where, the interstate transportation of the motor fuel is completed within the state by the person who at the time of the delivery is the owner of the motor fuel.
(16) "Oil pricing service" means an organization that:
(a) publishes wholesale petroleum prices within the United States;
(b) publishes at least 25,000 rack prices on a daily basis; and
(c) receives daily gasoline and diesel prices from at least 100,000 retail outlets in the United States and Canada.
(17)
(a) "Qualified motor vehicle" means a special fuel-powered motor vehicle used, designed, or maintained for transportation of persons or property which:
(i) has a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds;
(ii) has three or more axles regardless of weight; or
(iii) is used in a combination of vehicles when the weight of the combination of vehicles exceeds 26,000 pounds gross vehicle weight.
(b) "Qualified motor vehicle" does not include a recreational vehicle not used in connection with any business activity.
(18) "Rack" means a deck, platform, or open bay which consists of a series of metered pipes and hoses for the delivery or removal of motor fuel or diesel fuel from a refinery or terminal into a motor vehicle, rail car, or vessel.
(19)
(a) "Removal" means the physical transfer of motor fuel or diesel fuel from a production, manufacturing, terminal, or refinery facility and includes use of motor fuel or diesel fuel.
(b) "Removal" does not include:
(i) loss by evaporation or destruction; or
(ii) transfers between refineries, racks, or terminals.
(20)
(a) "Special fuel" means any fuel regardless of name or character that:
(i) is usable as fuel to operate or propel a motor vehicle upon the public highways of the state; and
(ii) is not taxed under the category of aviation or motor fuel.
(b) Special fuel includes:
(i) fuels that are not conveniently measurable on a gallonage basis; and
(ii) diesel fuel.
(21) "Statewide average rack price of a gallon of motor fuel" means the average rack price of a gallon of motor fuel determined by calculating the average of the Salt Lake City and Cedar City terminal prices of the average daily average net closing price of a gallon of branded regular, 10% ethanol, 9.0 Reid Vapor Pressure unleaded motor fuel for each terminal.
(22) "Supplier" means a person who:
(a) imports or acquires immediately upon importation into this state motor fuel or diesel fuel from within or without a state, territory, or possession of the United States or the District of Columbia;
(b) produces, manufactures, refines, or blends motor fuel or diesel fuel in this state;
(c) otherwise acquires for distribution or sale in this state, motor fuel or diesel fuel with respect to which there has been no previous taxable sale or use; or
(d) is in a two party exchange where the receiving party is deemed to be the supplier.
(23) "Terminal" means a facility for the storage of motor fuel or diesel fuel which is supplied by a motor vehicle, pipeline, or vessel and from which motor fuel or diesel fuel is removed for distribution at a rack.
(24) "Two party exchange" means a transaction in which motor fuel or special fuel is transferred between licensed suppliers in accordance with an exchange agreement.
(25) "Undyed diesel fuel" means diesel fuel that is not subject to the dyeing requirements in accordance with 26 U.S.C. Sec. 4082 or United States Environmental Protection Agency or Internal Revenue Service regulations.
(26) "Use" means the consumption of special fuel for the operation or propulsion of a motor vehicle upon the public highways of the state and includes the reception of special fuel into the fuel supply tank of a motor vehicle.
(27) "User" means any person who uses special fuel within this state in an engine or motor for the generation of power to operate or propel a motor vehicle upon the public highways of the state.
(28) "Ute tribal member" means an enrolled member of the Ute tribe.
(29) "Ute tribe" means the Ute Indian Tribe of the Uintah and Ouray Reservation.
(30) "Ute trust land" means the lands:
(a) of the Uintah and Ouray Reservation that are held in trust by the United States for the benefit of:
(i) the Ute tribe;
(ii) an individual; or
(iii) a group of individuals; or
(b) specified as trust land by agreement between the governor and the Ute tribe meeting the requirements of Subsections 59-13-201.5(3) and 59-13-301.5(3).
The Air Quality Board shall annually provide to the tax commission a list of fuels that are clean fuels under Section 59-13-102.
(1)
(a)
(i) Subject to Subsection (1)(a)(ii) and the provisions of this section and except as provided in Subsection (1)(e), a tax is imposed at the rate of 14.2% of the statewide average rack price of a gallon of motor fuel per gallon upon all motor fuel that is sold, used, or received for sale or used in this state.
(ii) Beginning on July 1, 2026, and ending on December 31, 2026, the commission shall apply a tax rate of $0.319 per gallon upon all motor fuel that is sold, used, or received for sale or used in this state.
(b) Subject to the requirements under Subsection (1)(c), the statewide average rack price of a gallon of motor fuel under Subsection (1)(a) shall be determined by calculating the previous three fiscal years statewide average rack price of a gallon of regular unleaded motor fuel, excluding federal and state excise taxes, for the 36 months ending on the previous June 30 as published by an oil pricing service.
(c)
(i) Subject to the requirement in Subsection (1)(c)(ii), the three-year rolling average of the statewide average rack price of a gallon of motor fuel determined under Subsection (1)(b) may not be less than $1.78 per gallon.
(ii) The commission shall, on January 1, annually adjust the minimum statewide average rack price of a gallon of motor fuel described in Subsection (1)(c)(i) by taking the minimum statewide average rack price of a gallon of motor fuel for the previous calendar year and adding an amount equal to the greater of:
(A) an amount calculated by multiplying the minimum statewide average rack price of a gallon of motor fuel for the previous calendar year by the actual percent change during the previous fiscal year in the Consumer Price Index; and
(B) 0.
(iii) The statewide average rack price of a gallon of motor fuel determined by the commission under Subsection (1)(b) may not exceed:
(A) for a calendar year beginning on January 1, 2026, $2.82 per gallon; and
(B) for a calendar year beginning on January 1, 2028, and thereafter, $2.96 per gallon.
(iv) The minimum statewide average rack price of a gallon of motor fuel described and adjusted under Subsections (1)(c)(i) and (ii) may not exceed the maximum statewide average rack price of a gallon of motor fuel under Subsection (1)(c)(iii).
(d)
(i) The commission shall annually:
(A) determine the three-year rolling average of the statewide average rack price of a gallon of motor fuel in accordance with Subsections (1)(b) and (c);
(B) adjust the fuel tax rate imposed under Subsection (1)(a), rounded to the nearest one-tenth of a cent, based on the determination under Subsection (1)(b);
(C) publish the adjusted fuel tax as a cents per gallon rate; and
(D) post or otherwise make public the adjusted fuel tax rate as determined in Subsection (1)(d)(i)(B) no later than 60 days before the annual effective date under Subsection (1)(d)(ii).
(ii) The tax rate imposed under this Subsection (1) and adjusted as required under Subsection (1)(d)(i) shall take effect on January 1 of each year.
(e) In lieu of the tax imposed under Subsection (1)(a) and subject to the provisions of this section, a tax is imposed at the rate of 3/19 of the rate imposed under Subsection (1)(a), rounded up to the nearest penny, upon all motor fuels that meet the definition of clean fuel in Section 59-13-102 and are sold, used, or received for sale or use in this state.
(2) Any increase or decrease in tax rate applies to motor fuel that is imported to the state or sold at refineries in the state on or after the effective date of the rate change.
(3)
(a) No motor fuel tax is imposed upon:
(i) motor fuel that is brought into and sold in this state in original packages as purely interstate commerce sales;
(ii) motor fuel that is exported from this state if proof of actual exportation on forms prescribed by the commission is made within 180 days after exportation;
(iii) motor fuel or components of motor fuel that is sold and used in this state and distilled from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in this state; or
(iv) motor fuel that is sold to the United States government, this state, or the political subdivisions of this state.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules governing the procedures for administering the tax exemption provided under Subsection (3)(a)(iv).
(4) The commission may either collect no tax on motor fuel exported from the state or, upon application, refund the tax paid.
(5)
(a) All revenue received by the commission under this part shall be deposited daily with the state treasurer and credited to the Transportation Fund.
(b) An appropriation from the Transportation Fund shall be made to the commission to cover expenses incurred in the administration and enforcement of this part and the collection of the motor fuel tax.
(6)
(a) The commission shall determine what amount of motor fuel tax revenue is received from the sale or use of motor fuel used in motorboats registered under Title 73, Chapter 18, State Boating Act, and this amount shall be deposited into a restricted revenue account in the General Fund of the state.
(b) The funds from this account shall be used for the construction, improvement, operation, and maintenance of state-owned boating facilities and for the payment of the costs and expenses of the Division of Outdoor Recreation in administering and enforcing Title 73, Chapter 18, State Boating Act.
(7)
(a) The United States government or any of its instrumentalities, this state, or a political subdivision of this state that has purchased motor fuel from a licensed distributor or from a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this section is entitled to a refund of the tax and may file with the commission for a quarterly refund.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules governing the application and refund provided for in Subsection (7)(a).
(8)
(a) The commission shall refund annually into the Off-highway Vehicle Account in the General Fund an amount equal to .5% of the motor fuel tax revenues collected under this section.
(b) This amount shall be used as provided in Section 41-22-19.
(9)
(a) A tax imposed under this section on motor fuel that is sold, used, or received for sale or use in this state is reduced to the extent provided in Subsection (9)(b) if:
(i) a tax imposed on the basis of the sale, use, or receipt for sale or use of the motor fuel is paid to the Navajo Nation;
(ii) the tax described in Subsection (9)(a)(i) is imposed without regard to whether the person required to pay the tax is an enrolled member of the Navajo Nation; and
(iii) the commission and the Navajo Nation execute and maintain an agreement as provided in this Subsection (9) for the administration of the reduction of tax.
(b)
(i) If but for Subsection (9)(a) the motor fuel is subject to a tax imposed by this section:
(A) the state shall be paid the difference described in Subsection (9)(b)(ii) if that difference is greater than $0; and
(B) a person may not require the state to provide a refund, a credit, or similar tax relief if the difference described in Subsection (9)(b)(ii) is less than or equal to $0.
(ii) The difference described in Subsection (9)(b)(i) is equal to the difference between:
(A) the amount of tax imposed on the motor fuel by this section; less
(B) the tax imposed and collected by the Navajo Nation on the motor fuel.
(c) For purposes of Subsections (9)(a) and (b), the tax paid to the Navajo Nation under a tax imposed by the Navajo Nation on the basis of the sale, use, or receipt for sale or use of motor fuel does not include any interest or penalties a taxpayer may be required to pay to the Navajo Nation.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules governing the procedures for administering the reduction of tax provided under this Subsection (9).
(e) The agreement required under Subsection (9)(a):
(i) may not:
(A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
(B) provide a reduction of taxes greater than or different from the reduction described in this Subsection (9); or
(C) affect the power of the state to establish rates of taxation;
(ii) shall:
(A) be in writing;
(B) be signed by the chair of the commission or the chair's designee, and a person designated by the Navajo Nation that may bind the Navajo Nation;
(C) be conditioned on obtaining any approval required by federal law;
(D) state the effective date of the agreement; and
(E) state any accommodation the Navajo Nation makes related to the construction and maintenance of state highways and other infrastructure within the Utah portion of the Navajo Nation; and
(iii) may:
(A) notwithstanding Section 59-1-403, authorize the commission to disclose to the Navajo Nation information that is contained in a document filed with the commission, and related to the tax imposed under this section;
(B) provide for maintaining records by the commission or the Navajo Nation; or
(C) provide for inspections or audits of distributors, carriers, or retailers located or doing business within the Utah portion of the Navajo Nation.
(f)
(i) If the Navajo Nation changes the tax rate of a tax imposed on motor fuel, any change in the reduction of taxes under this Subsection (9) as a result of the change in the tax rate is not effective until the first day of the calendar quarter after a 60-day period beginning on the date the commission receives notice:
(A) from the Navajo Nation; and
(B) meeting the requirements of Subsection (9)(f)(ii).
(ii) The notice described in Subsection (9)(f)(i) shall state:
(A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on motor fuel;
(B) the effective date of the rate change of the tax described in Subsection (9)(f)(ii)(A); and
(C) the new rate of the tax described in Subsection (9)(f)(ii)(A).
(g) If the agreement required by Subsection (9)(a) terminates, a reduction of tax is not permitted under this Subsection (9) beginning on the first day of the calendar quarter after a 30-day period beginning on the day the agreement terminates.
(h) If there is a conflict between this Subsection (9) and the agreement required by Subsection (9)(a), this Subsection (9) governs.
(1) In accordance with this section, the Ute tribe may receive a refund from the state of amounts paid to a distributor for taxes imposed on the distributor in accordance with Section 59-13-204 if:
(a) the motor fuel is purchased from a licensed distributor;
(b) the Ute tribe pays the distributor as provided in Section 59-13-204;
(c) the motor fuel is purchased for use by:
(i) the Ute tribe; or
(ii) a Ute tribal member from a retail station:
(A) wholly owned by the Ute tribe; and
(B) that is located on Ute trust land; and
(d) the governor and the Ute tribe execute and maintain an agreement meeting the requirements of Subsection (3).
(2) In addition to the agreement required by Subsection (1), the commission shall enter into an agreement with the Ute tribe that:
(a) provides an allocation formula or procedure for determining:
(i) the amount of motor fuel sold by the Ute tribe to a Ute tribal member; and
(ii) the amount of motor fuel sold by the Ute tribe to a person who is not a Ute tribal member; and
(b) provides a process by which:
(i) the Ute tribe obtains a refund permitted by this section; and
(ii) reports and remits motor fuel tax to the state for sales made to persons who are not Ute tribal members.
(3) The agreement required under Subsection (1):
(a) may not:
(i) authorize the state to impose a tax in addition to a tax imposed under this chapter; or
(ii) provide a refund, credit, or similar tax relief that is greater or different than the refund permitted under this section;
(iii) affect the power of the state to establish rates of taxation; and
(b) shall:
(i) provide that the state agrees to allow the refund described in this section;
(ii) be in writing;
(iii) be signed by:
(A) the governor; and
(B) the chair of the Business Committee of the Ute tribe;
(iv) be conditioned on obtaining any approval required by federal law; and
(v) state the effective date of the agreement.
(4)
(a) The governor shall report to the commission by no later than February 1 of each year as to whether or not an agreement meeting the requirements of this Subsection (4) is in effect.
(b) If an agreement meeting the requirements of this Subsection (4) is terminated, the refund permitted under this section is not allowed beginning the January 1 following the date the agreement terminates.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules regarding the procedures for seeking a refund agreed to under the agreement described in Subsection (2).
(1) As used in this section:
(a)
(i) "Claimant" means a resident or nonresident person.
(ii) "Claimant" does not include an estate or trust.
(b) "Committee" means the Revenue and Taxation Interim Committee.
(c) "Estate" means a nonresident estate or a resident estate.
(d) "Refundable tax credit" or "tax credit" means a tax credit that a claimant, estate, or trust may claim:
(i) as provided by statute; and
(ii) regardless of whether, for the taxable year for which the claimant, estate, or trust claims the tax credit, the claimant, estate, or trust has a tax liability under:
(A) Chapter 7, Corporate Franchise and Income Taxes; or
(B) Chapter 10, Individual Income Tax Act.
(e) "Trust" means a nonresident trust or a resident trust.
(2) Any claimant, estate, or trust that purchases and uses any motor fuel within the state for the purpose of operating or propelling stationary farm engines and self-propelled farm machinery used for nonhighway agricultural uses, and that has paid the tax on the motor fuel as provided by this part, is entitled to a refund of the tax subject to the conditions and limitations provided under this part.
(3)
(a) A claimant, estate, or trust desiring a nonhighway agricultural use refund under this part shall claim the refund as a refundable tax credit on the tax return the claimant, estate, or trust files under:
(i) Chapter 7, Corporate Franchise and Income Taxes; or
(ii) Chapter 10, Individual Income Tax Act.
(b) A claimant, estate, or trust not subject to filing a tax return described in Subsection (3)(a) shall obtain a permit and file claims on a calendar year basis.
(c) Any claimant, estate, or trust claiming a refundable tax credit under this section is required to provide the information outlined in this section upon request of the commission.
(d) The commission shall allow a refundable tax credit under this section only on purchases on which tax is paid during the taxable year covered by the tax return.
(4)
(a) To obtain a permit for a refund of motor fuel tax paid, a claimant, estate, or trust shall file an application containing:
(i) the name of the claimant, estate, or trust;
(ii) the claimant's, estate's, or trust's address;
(iii) location and number of acres owned and operated;
(iv) location and number of acres rented and operated, which the legal owner shall verify by signed statement;
(v) number of acres planted to each crop, type of soil, and whether irrigated or dry; and
(vi) make, size, and type of fuel used and power rating of each piece of equipment using fuel.
(b) If the claimant, estate, or trust is an operator of self-propelled or tractor-pulled farm machinery with which the claimant, estate, or trust works for hire doing custom jobs for other farmers, the application shall include information the commission requires and shall all be contained in, and be considered part of, the original application.
(c) The claimant, estate, or trust shall also file with the application a certificate from the county assessor showing each piece of equipment using fuel.
(d) This original application and all information contained in it constitutes a permanent file with the commission in the name of the claimant, estate, or trust.
(5)
(a) A claimant, estate, or trust claiming the right to a refund of motor fuel tax paid shall file a claim with the commission by April 15 of each year for the refund for the previous calendar year.
(b) The claim shall state the name and address of the claimant, estate, or trust, the number of gallons of motor fuel purchased for nonhighway agricultural uses, and the amount paid for the motor fuel.
(c) The claimant, estate, or trust shall retain the original invoice to support the claim.
(d) A claimant, estate, or trust may claim no more than one claim for a tax refund annually.
(6)
(a) Upon commission approval of the claim for a refund, the Division of Finance shall pay the amount due to the claimant, estate, or trust.
(b) The Division of Finance shall pay the refunds from motor fuel taxes.
(7)
(a) The commission may refuse to accept as evidence of purchase or payment any instruments that show alteration or that fail to indicate the quantity of the purchase, the price of the motor fuel, a statement that the motor fuel is purchased for purposes other than transportation, and the date of purchase and delivery.
(b) If the commission is not satisfied with the evidence submitted in connection with the claim, the commission may reject the claim or require additional evidence.
(8) A claimant, estate, or trust aggrieved by the decision of the commission with respect to a refundable tax credit or refund may file a request for agency action, requesting a hearing before the commission.
(9)
(a) A claimant, estate, or trust that makes any false claim, report, or statement, as claimant, estate, trust, agent, or creditor, with intent to defraud or secure a refund to which the claimant, estate, or trust is not entitled, is subject to the criminal penalties provided under Section 59-1-401, and the commission shall initiate the filing of a complaint for alleged violations of this part.
(b) In addition to these penalties, the claimant, estate, or trust may not receive any refund as a claimant, estate, or trust or as a creditor of a claimant, estate, or trust for refund for a period of five years.
(10)
(a) In accordance with any rules made by the commission under Subsection (10)(b), the Division of Finance shall transfer at least annually from the Transportation Fund into the Income Tax Fund an amount equal to the amount of the refund claimed under this section.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing procedures for:
(i) making a refund to a claimant, estate, or trust as required by Subsection (3)(a);
(ii) making a transfer from the Transportation Fund into the Income Tax Fund as required by Subsection (10)(a); or
(iii) enforcing this part.
(11)
(a) On or before November 30, 2028, and every five years after 2028, the committee shall review the tax credit provided by this section and make recommendations concerning whether the tax credit should be continued, modified, or repealed.
(b) In conducting the review required by Subsection (11)(a), the committee shall:
(i) schedule time on a committee agenda to conduct the review as needed;
(ii) invite state agencies, individuals, and organizations concerned with the credit under review to provide oral or written testimony;
(iii) evaluate:
(A) the cost of the tax credit to the state;
(B) the purpose and effectiveness of the tax credit; and
(C) the extent to which the state benefits from the tax credit; and
(iv) undertake other review efforts as determined by the chairs of the committee.
(1)
(a) A retailer, wholesaler, or licensed distributor, who without fault, sustains a loss or destruction of 8,000 or more gallons of motor fuel in a single incident due to fire, flood, storm, accident, or the commission of a crime and who has paid or is required to pay the tax on the motor fuel as provided by this part, is entitled to a refund or credit of the tax subject to the conditions and limitations provided under this section.
(b) The claimant shall file a claim for a refund or credit with the commission within 90 days of the incident.
(c) Any part of a loss or destruction eligible for indemnification under an insurance policy for the taxes paid or required on the loss or destruction of motor fuel is not eligible for a refund or credit under this section.
(d) Any claimant filing a claim for a refund or credit shall furnish any or all of the information outlined in this section upon request of the commission.
(e) The burden of proof of loss or destruction is on the claimant who shall provide evidence of loss or destruction to the satisfaction of the commission.
(f)
(i) The claim shall include an affidavit containing the:
(A) name of claimant;
(B) claimant's address;
(C) date, time, and location of the incident;
(D) cause of the incident;
(E) name of the investigating agencies at the scene;
(F) number of gallons actually lost from sale; and
(G) information on any insurance coverages related to the incident.
(ii) The claimant shall support the claim by submitting the original invoices or copy of the original invoices.
(iii) This original claim and all information contained in it constitutes a permanent file with the commission in the name of the claimant.
(2)
(a) A retailer, wholesaler, or licensed distributor who has paid the tax on motor fuel as provided by this part is entitled to a refund for taxes paid on that portion of an account that:
(i) relates to 4,500 or more gallons of motor fuel purchased in a single transaction for which no payment has been received; and
(ii) has been discharged in a bankruptcy proceeding.
(b) The claimant shall file a claim for refund with the commission within 90 days from the date of the discharge.
(c) Any claimant filing a claim for a refund shall furnish any or all of the information outlined in this section upon request of the commission.
(d) The burden of proof of discharge is on the claimant who shall provide evidence of discharge to the satisfaction of the commission.
(e) The claim shall include an affidavit containing the following:
(i) the name of the claimant;
(ii) the claimant's address;
(iii) the name of the debtor that received a discharge in bankruptcy; and
(iv) the portion of the account that is subject to an order granting a discharge.
(f) The claimant shall support the claim by submitting:
(i) the original invoices or a copy of the original invoices; and
(ii) a certified copy of the notice of discharge.
(g) This original claim and all information contained in it constitutes a permanent file with the commission in the name of the claimant.
(h) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall promulgate rules for the allocation of the discharge under this Subsection (2) to maximize the claimant's refund amount.
(3)
(a) Subject to the conditions and limitations of this section, a retailer, wholesaler, or licensed distributor is entitled to a refund or credit of motor fuel tax if:
(i) dyed diesel fuel or special fuel is mixed with motor fuel; and
(ii) the retailer, wholesaler, or licensed distributor:
(A) returns the mixed motor fuel to the refinery for re-refining; and
(B) has paid the tax on the motor fuel as provided by this part.
(b) The claimant shall file a claim for a refund or credit with the commission within 90 days of the date the motor fuel was returned to the refinery for re-refinement.
(c) Any claimant filing a claim for a refund or credit shall furnish any or all of the information outlined in this section upon request of the commission.
(d) The burden of proof that the motor fuel was returned to the refinery for re-refinement is on the claimant who shall provide evidence to the satisfaction of the commission that the motor fuel was returned to the refinery for re-refinement.
(e)
(i) The claim shall include an affidavit containing the:
(A) name of claimant;
(B) claimant's address;
(C) date, time, and location of the incident;
(D) nature of the incident; and
(E) number of gallons actually required to be re-refined.
(ii) The claimant shall support the claim by submitting written verification from a refinery that:
(A) the motor fuel mixed with the dyed diesel fuel or special fuel was returned to the refinery for re-refinement; and
(B) motor fuel tax was paid on the returned motor fuel.
(iii) The claim filed pursuant to Subsection (3)(b) and all information contained in it constitutes a permanent file with the commission in the name of the claimant.
(4)
(a) Upon commission approval of the claim for a refund, the commission shall pay the amount found due to the claimant.
(b) The total amount of claims for refunds shall be paid from the Transportation Fund.
(5)
(a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may:
(i) promulgate rules to enforce this part; and
(ii) refuse to accept unsubstantiated evidence for the claim.
(b) If the commission is not satisfied with the evidence submitted in connection with the claim, it may:
(i) reject the claim; or
(ii) require additional evidence.
(6) Any person aggrieved by the decision of the commission with respect to a refund or credit may file a request for agency action, requesting a hearing before the commission.
(7)
(a) Any person who makes any false claim, report, or statement, either as claimant, agent, or creditor, with intent to defraud or secure a refund or credit to which the claimant is not entitled, is subject to the criminal penalties provided under Section 59-1-401, and the commission shall initiate the filing of a complaint for alleged violations of this part.
(b) In addition to the penalties under Subsection (7)(a), the person may not receive any refund or credit as a claimant or as a creditor of a claimant for refund or credit for a period of five years.
(8) Any refund or credit made under this section does not affect any deduction allowed under Section 59-13-207.
(1) As used in this section:
(a) "applicant" means a person that:
(i) is required by this section to obtain a license; and
(ii) submits an application:
(A) to the commission; and
(B) for a license under this section;
(b) "application" means an application for a license under this section;
(c) "fiduciary of the applicant" means a person that:
(i) is required to collect, truthfully account for, and pay over a tax under this part for an applicant; and
(ii)
(A) is a corporate officer of the applicant described in Subsection (1)(c)(i);
(B) is a director of the applicant described in Subsection (1)(c)(i);
(C) is an employee of the applicant described in Subsection (1)(c)(i);
(D) is a partner of the applicant described in Subsection (1)(c)(i);
(E) is a trustee of the applicant described in Subsection (1)(c)(i); or
(F) has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(d) "fiduciary of the licensee" means a person that:
(i) is required to collect, truthfully account for, and pay over a tax under this part for a licensee; and
(ii)
(A) is a corporate officer of the licensee described in Subsection (1)(d)(i);
(B) is a director of the licensee described in Subsection (1)(d)(i);
(C) is an employee of the licensee described in Subsection (1)(d)(i);
(D) is a partner of the licensee described in Subsection (1)(d)(i);
(E) is a trustee of the licensee described in Subsection (1)(d)(i); or
(F) has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(e) "license" means a license under this section; and
(f) "licensee" means a person that is licensed under this section by the commission.
(2) A person that is required to collect a tax under this part is guilty of a criminal violation as provided in Section 59-1-401 if before obtaining a license under this section that person engages in business within the state.
(3) The license described in Subsection (2):
(a) shall be granted and issued:
(i) by the commission in accordance with this section;
(ii) without a license fee; and
(iii) if:
(A) an applicant:
(I) states the applicant's name and address in the application; and
(II) provides other information in the application that the commission may require; and
(B) the person meets the requirements of this section to be granted a license as determined by the commission;
(b) may not be assigned to another person; and
(c) is valid:
(i) only for the person named on the license; and
(ii) until:
(A) the person described in Subsection (3)(c)(i):
(I) ceases to do business; or
(II) changes that person's business address; or
(B) the commission revokes the license.
(4) The commission shall review an application and determine whether:
(a) the applicant meets the requirements of this section to be issued a license; and
(b) a bond is required to be posted with the commission in accordance with Subsection (5) before the applicant may be issued a license.
(5)
(a) An applicant shall post a bond with the commission before the commission may issue the applicant a license if:
(i) a license under this section was revoked for a delinquency under this part for:
(A) the applicant;
(B) a fiduciary of the applicant; or
(C) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or
(ii) there is a delinquency in paying a tax under this part for:
(A) the applicant;
(B) a fiduciary of the applicant; or
(C) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part.
(b) If the commission determines it is necessary to ensure compliance with this part, the commission may require a licensee to:
(i) for a licensee that has not posted a bond under this section with the commission, post a bond with the commission in accordance with Subsections (5)(c) through (g); or
(ii) for a licensee that has posted a bond under this section with the commission, increase the amount of the bond posted with the commission.
(c) A bond under this Subsection (5) shall be:
(i) executed by:
(A) for an applicant, the applicant as principal, with a corporate surety; or
(B) for a licensee, the licensee as principal, with a corporate surety; and
(ii) payable to the commission conditioned upon the faithful performance of all of the requirements of this part including:
(A) the payment of all taxes under this part;
(B) the payment of any:
(I) penalty as provided in Section 59-1-401; or
(II) interest as provided in Section 59-1-402; or
(C) any other obligation of the:
(I) applicant under this part; or
(II) licensee under this part.
(d) Except as provided in Subsection (5)(f), the commission shall calculate the amount of a bond under this Subsection (5) on the basis of:
(i) commission estimates of:
(A) an applicant's tax liability under this part; or
(B) a licensee's tax liability under this part; and
(ii) the amount of a delinquency described in Subsection (5)(e) if:
(A) a license under this section was revoked for a delinquency under this part for:
(I)
(Aa) an applicant; or
(Bb) a licensee;
(II) a fiduciary of the:
(Aa) applicant; or
(Bb) licensee; or
(III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part; or
(B) there is a delinquency in paying a tax under this part for:
(I)
(Aa) an applicant; or
(Bb) a licensee;
(II) a fiduciary of the:
(Aa) applicant; or
(Bb) licensee; or
(III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part.
(e) Except as provided in Subsection (5)(f), for purposes of Subsection (5)(d)(ii):
(i) for an applicant, the amount of the delinquency is the sum of:
(A) the amount of any delinquency that served as a basis for revoking the license under this section of:
(I) the applicant;
(II) a fiduciary of the applicant; or
(III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or
(B) the amount of tax that any of the following owe under this part:
(I) the applicant;
(II) a fiduciary of the applicant; and
(III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or
(ii) for a licensee, the amount of the delinquency is the sum of:
(A) the amount of any delinquency that served as a basis for revoking the license under this section of:
(I) the licensee;
(II) a fiduciary of the licensee; or
(III) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part; or
(B) the amount of tax that any of the following owe under this part:
(I) the licensee;
(II) a fiduciary of the licensee; and
(III) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part.
(f) Notwithstanding Subsection (5)(d) or (e), a bond required by this Subsection (5) may not:
(i) be less than $10,000; or
(ii) exceed $500,000.
(g)
(i) Subject to Subsection (5)(g)(ii), a bond required by this section may be combined into one bond with any other bond required by this chapter.
(ii) For purposes of Subsection (5)(g)(i), if a bond required by this section is combined into one bond with any other bond required by this chapter, the amount of that combined bond is determined by:
(A) calculating the separate amount of each bond required for each type of fuel included in the combined bond; and
(B) aggregating the separate amounts calculated in Subsection (5)(g)(ii)(A).
(6)
(a) The commission shall revoke a license under this section if:
(i) a licensee violates any provision of this part; and
(ii) before the commission revokes the license the commission provides the licensee:
(A) reasonable notice; and
(B) a hearing.
(b) If the commission revokes a licensee's license in accordance with Subsection (6)(a), the commission may not issue another license to that licensee until that licensee complies with the requirements of this part, including:
(i) paying any:
(A) tax due under this part;
(B) penalty as provided in Section 59-1-401; or
(C) interest as provided in Section 59-1-402; and
(ii) posting a bond in accordance with Subsection (5).
(1) Distributors licensed under this part who receive motor fuel are liable for the tax as provided by this part, and shall report the receipt of the motor fuel to the commission and pay the tax as prescribed.
(2)
(a) Distributors shall compute the tax on the total taxable amount of motor fuel produced, purchased, received, imported, or refined in this state, and all distributors shipping motor fuels into this state shall compute the tax on the total taxable amount of motor fuels received for sale or use in this state.
(b) All motor fuel distributed by any distributor to the distributor's branches within this state is considered to be sold at the time of this distribution and is subject to this part as if actually sold.
(c) Distributors licensed under this part may sell motor fuel to other licensed distributors without the payment or collection of the tax, if the purchasing distributor furnishes the seller with an assumption of liability statement indicating the purchasing distributor is a licensed and bonded Utah motor fuel distributor and will assume the Utah motor fuel tax responsibility on all motor fuel purchased from the seller. The seller shall report each sale to the commission in a monthly report of sales as provided under Section 59-13-206.
(3) If motor fuels have been purchased outside of this state and brought into this state in original packages from a distributor for the use of the consumer, then the tax shall be imposed when the motor fuel is received.
(4)
(a) Every distributor and retail dealer of motor fuels shall add the amount of the taxes levied and assessed by this part to the price of the motor fuels.
(b) This Subsection (4) in no way affects the method of the collection of the taxes as specified in this part.
(c) Notwithstanding Subsection (4)(a), if the Ute tribe may receive a refund under Section 59-13-201.5, the Ute tribe is not required to add the amount of the taxes levied and assessed by this part to the price of motor fuel that is purchased:
(i) by a Ute tribal member; and
(ii) at a retail station:
(A) wholly owned by the Ute tribe; and
(B) located on Ute trust land.
(d) For purposes of Subsection (4)(a), the amount of taxes levied and assessed by this part do not include the amount of the reduction of tax under Subsection 59-13-201(9).
(1) Each distributor of motor fuel shall, at all times, conspicuously display at the distributor's place of business or agency a license certificate issued by the commission.
(2) If any person becomes a distributor, without first securing the license required by this part, the motor fuel tax shall be immediately due and payable on account of all motor fuel received. The commission shall proceed immediately to determine the amount of distributions and shall assess immediately the motor fuel tax on account of the distributions, adding to the motor fuel tax a penalty for failure to secure the license as provided in Section 59-1-401.
(1) Every distributor of motor fuel shall render to the commission, on or before the last day of each month, the following statements on forms prescribed by the commission:
(a) the number of gallons of motor fuel sold, used, or received for sale or use by the distributor during the preceding calendar month;
(b) an itemized account of the date and quantities of motor fuel sold, used, or received for sale or use, stating separately the sales made in interstate commerce and those made in broken packages; and
(c) any other information incidental to the enforcing of this part which the commission may require.
(2) The statement shall be signed by a responsible representative of the distributor. This signature need not be notarized, but when signed is considered to have been made under oath. Bills shall be rendered to all purchasers of motor fuel by distributors.
(3) A penalty for failure to file the statement required by Subsection (1) shall be as provided under Section 59-1-401.
(1) There is deducted 2% from the gross amount of motor fuel taxable under this part to allow for all evaporation, loss in handling, and expenses of collection. All distributors shall report the gross amount of taxable motor fuel which is produced, received, refined, or sold in this state from which this deduction shall be made.
(2) At the time of submitting the report and payment of the tax, the producers and refiners shall further submit evidence to the satisfaction of the commission that from the amount of the 2% deduction made by them, one half of the deduction has been paid to the registered retail dealers on quantities sold to them during the period covered by the report.
(1) Every person delivering within this state any motor fuel which has been shipped from outside the state shall, on or before the last day of each month, report in writing all deliveries during the preceding month to the commission on forms prescribed by it. The report shall show:
(a) the date of delivery;
(b) the person who received the delivery;
(c) the quantity as shown by the bill of lading; and
(d) any other information the commission may require.
(2) The commission may require from carriers necessary information regarding the shipment of other petroleum products.
(1)
(a) The motor fuel tax is due and payable by the distributor on or before the last day of each month to the commission for the number of gallons of motor fuel sold, used, or received for sale or use by the distributor during the preceding calendar month.
(b) The commission shall receipt the distributor for taxes paid and shall promptly deposit all revenue with the state treasurer.
(2)
(a) If any distributor fails or refuses to pay any tax when it becomes due and payable, the tax is delinquent.
(b) If a distributor is delinquent in tax payments, the commission shall impose a penalty as provided under Section 59-1-401.
(c) The amount of the tax shall bear interest at the rate and in the manner prescribed in Section 59-1-402.
(3)
(a) A report or payment of tax is not considered delinquent if the envelope in which the report or remittance is enclosed bears a post office cancellation mark dated on or before the date on which the report or payment is due.
(b) The commission, upon receipt of a report or remittance described in Subsection (3)(a), shall treat the report or payment as if it had been received on the date it was due.
(4) If any part of a tax due is deficient or delinquent because of negligence or disregard of this part, or in the case of false or fraudulent monthly reports, or intent to evade the tax, a penalty shall be added to the tax due as provided in Section 59-1-401.
(5)
(a) A tax due and unpaid under this part constitutes a debt due the state and may be collected, together with interest, penalty, and costs, by appropriate judicial proceeding.
(b) The remedy described in Subsection (5)(a) is in addition to all other remedies.
(6) If the tax imposed by this part is not paid when it is due, collection may be made in accordance with Chapter 1, Part 14, Assessment, Collections, and Refunds Act.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to administer and enforce this part.
(1) A distributor who does not maintain adequate motor fuel records at one location in this state so that an audit of the records may be made, may be required to:
(a) forward the necessary records to Salt Lake City; or
(b) pay the necessary expenses of an auditor to make the examination at the proper division office.
(2) Funds collected under this section:
(a) shall be deposited with the state treasurer; and
(b) are dedicated credits for the commission.
Any person who violates this part or who fails or neglects to make any statement, report, or return required by this part, where the penalty is not otherwise specifically prescribed, is guilty of a criminal violation as provided in Section 59-1-401.
(1)
(a) Except as provided in Subsections (1)(b), (2), (3), (11), and (12) and Section 59-13-301.5, a tax is imposed at the same rate imposed under Subsection 59-13-201(1)(a) on the:
(i) removal of undyed diesel fuel from any refinery;
(ii) removal of undyed diesel fuel from any terminal;
(iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or warehousing;
(iv) sale of undyed diesel fuel to any person who is not registered as a supplier under this part unless the tax has been collected under this section;
(v) any untaxed special fuel blended with undyed diesel fuel; or
(vi) use of untaxed special fuel other than propane or electricity.
(b) For the special fuel tax rate beginning on July 1, 2026, and ending on December 31, 2026:
(i) the adjustment described in Subsection 59-13-201(1)(a)(ii) does not apply; and
(ii) the commission shall apply the same rate in place as of January 1, 2026.
(c) The tax imposed under this section shall only be imposed once upon any special fuel.
(2)
(a) No special fuel tax is imposed or collected upon dyed diesel fuel which:
(i) is sold or used for any purpose other than to operate or propel a motor vehicle upon the public highways of the state, but this exemption applies only in those cases where the purchasers or the users of special fuel establish to the satisfaction of the commission that the special fuel was used for purposes other than to operate a motor vehicle upon the public highways of the state; or
(ii) is sold to this state or any of its political subdivisions.
(b) No special fuel tax is imposed on undyed diesel fuel or clean fuel that is:
(i) sold to the United States government or any of its instrumentalities or to this state or any of its political subdivisions;
(ii) exported from this state if proof of actual exportation on forms prescribed by the commission is made within 180 days after exportation;
(iii) used in a vehicle off-highway;
(iv) used to operate a power take-off unit of a vehicle;
(v) used for off-highway agricultural uses;
(vi) used in a separately fueled engine on a vehicle that does not propel the vehicle upon the highways of the state; or
(vii) used in machinery and equipment not registered and not required to be registered for highway use.
(3) No tax is imposed or collected on special fuel if it is:
(a)
(i) purchased for business use in machinery and equipment not registered and not required to be registered for highway use; and
(ii) used in accordance with the conditions of a state implementation plan approved under Title 19, Chapter 2, Air Conservation Act; or
(b) propane or electricity.
(4) Upon request of a buyer meeting the requirements under Subsection (3), the Division of Air Quality shall issue an exemption certificate that may be shown to a seller.
(5) The special fuel tax shall be paid by the supplier.
(6)
(a) The special fuel tax shall be paid by every user who is required by Sections 59-13-303 and 59-13-305 to obtain a special fuel user permit and file special fuel tax reports.
(b) The user shall receive a refundable credit for special fuel taxes paid on purchases which are delivered into vehicles and for which special fuel tax liability is reported.
(7)
(a) Except as provided under Subsections (7)(b) and (c), all revenue received by the commission from taxes and license fees under this part shall be deposited daily with the state treasurer and credited to the Transportation Fund.
(b) An appropriation from the Transportation Fund shall be made to the commission to cover expenses incurred in the administration and enforcement of this part and the collection of the special fuel tax.
(c) Five dollars of each special fuel user trip permit fee paid under Section 59-13-303 may be used by the commission as a dedicated credit to cover the costs of electronic credentialing as provided in Section 41-1a-303.
(8) The commission may either collect no tax on special fuel exported from the state or, upon application, refund the tax paid.
(9)
(a) The United States government or any of its instrumentalities, this state, or a political subdivision of this state that has purchased special fuel from a supplier or from a retail dealer of special fuel and has paid the tax on the special fuel as provided in this section is entitled to a refund of the tax and may file with the commission for a quarterly refund in a manner prescribed by the commission.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules governing the application and refund provided for in Subsection (9)(a).
(10)
(a) The purchaser shall pay the tax on diesel fuel or clean fuel purchased for uses under Subsections (2)(b)(i), (iii), (iv), (v), (vi), and (vii) and apply for a refund for the tax paid as provided in Subsection (9) and this Subsection (10).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules governing the application and refund for off-highway and nonhighway uses provided under Subsections (2)(b)(iii), (iv), (vi), and (vii).
(c) A refund of tax paid under this part on diesel fuel used for nonhighway agricultural uses shall be made in accordance with the tax return procedures under Section 59-13-202.
(11)
(a) A tax imposed under this section on special fuel is reduced to the extent provided in Subsection (11)(b) if:
(i) the Navajo Nation imposes a tax on the special fuel;
(ii) the tax described in Subsection (11)(a)(i) is imposed without regard to whether the person required to pay the tax is an enrolled member of the Navajo Nation; and
(iii) the commission and the Navajo Nation execute and maintain an agreement as provided in this Subsection (11) for the administration of the reduction of tax.
(b)
(i) If but for Subsection (11)(a) the special fuel is subject to a tax imposed by this section:
(A) the state shall be paid the difference described in Subsection (11)(b)(ii) if that difference is greater than $0; and
(B) a person may not require the state to provide a refund, a credit, or similar tax relief if the difference described in Subsection (11)(b)(ii) is less than or equal to $0.
(ii) The difference described in Subsection (11)(b)(i) is equal to the difference between:
(A) the amount of tax imposed on the special fuel by this section; less
(B) the tax imposed and collected by the Navajo Nation on the special fuel.
(c) For purposes of Subsections (11)(a) and (b), the tax paid to the Navajo Nation on the special fuel does not include any interest or penalties a taxpayer may be required to pay to the Navajo Nation.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules governing the procedures for administering the reduction of tax provided under this Subsection (11).
(e) The agreement required under Subsection (11)(a):
(i) may not:
(A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
(B) provide a reduction of taxes greater than or different from the reduction described in this Subsection (11); or
(C) affect the power of the state to establish rates of taxation;
(ii) shall:
(A) be in writing;
(B) be signed by the chair of the commission or the chair's designee, and a person designated by the Navajo Nation that may bind the Navajo Nation;
(C) be conditioned on obtaining any approval required by federal law;
(D) state the effective date of the agreement; and
(E) state any accommodation the Navajo Nation makes related to the construction and maintenance of state highways and other infrastructure within the Utah portion of the Navajo Nation; and
(iii) may:
(A) notwithstanding Section 59-1-403, authorize the commission to disclose to the Navajo Nation information that is contained in a document filed with the commission, and related to the tax imposed under this section;
(B) provide for maintaining records by the commission or the Navajo Nation; or
(C) provide for inspections or audits of suppliers, distributors, carriers, or retailers located or doing business within the Utah portion of the Navajo Nation.
(f)
(i) If the Navajo Nation changes the tax rate of a tax imposed on special fuel, any change in the amount of the reduction of taxes under this Subsection (11) as a result of the change in the tax rate is not effective until the first day of the calendar quarter after a 60-day period beginning on the date the commission receives notice:
(A) from the Navajo Nation; and
(B) meeting the requirements of Subsection (11)(f)(ii).
(ii) The notice described in Subsection (11)(f)(i) shall state:
(A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on special fuel;
(B) the effective date of the rate change of the tax described in Subsection (11)(f)(ii)(A); and
(C) the new rate of the tax described in Subsection (11)(f)(ii)(A).
(g) If the agreement required by Subsection (11)(a) terminates, a reduction of tax is not permitted under this Subsection (11) beginning on the first day of the calendar quarter after a 30-day period beginning on the day the agreement terminates.
(h) If there is a conflict between this Subsection (11) and the agreement required by Subsection (11)(a), this Subsection (11) governs.
(12)
(a)
(i) Beginning on January 1, 2026, and subject to Subsections (12)(a)(ii) and (iii), a tax imposed under this section on compressed natural gas is imposed at a rate of $0.212 per gallon equivalent.
(ii) Beginning on January 1, 2027, the commission shall, on January 1, annually adjust the rate of a tax imposed under this section on compressed natural gas by taking the rate for the previous calendar year and adding an amount equal to the greater of:
(A) an amount calculated by multiplying the rate of a tax imposed under this section on compressed natural gas for the previous calendar year by the actual percent change during the previous fiscal year in the Consumer Price Index; and
(B) 0.
(iii) The rate of a tax imposed under this section on compressed natural gas determined by the commission under Subsection (12)(a)(ii) may not exceed 22-1/2 cents per gasoline gallon equivalent.
(b)
(i) Beginning on January 1, 2026, and subject to Subsections (12)(b)(ii) and (iii), a tax imposed under this section on liquified natural gas is imposed at a rate of $0.212 per gallon equivalent.
(ii) Beginning on January 1, 2027, the commission shall, on January 1, annually adjust the rate of a tax imposed under this section on liquified natural gas by taking the rate for the previous calendar year and adding an amount equal to the greater of:
(A) an amount calculated by multiplying the rate of a tax imposed under this section on liquified natural gas for the previous calendar year by the actual percent change during the previous fiscal year in the Consumer Price Index; and
(B) 0.
(iii) The rate of a tax imposed under this section on liquified natural gas determined by the commission under Subsection (12)(b)(ii) may not exceed 22-1/2 cents per diesel gallon equivalent.
(c)
(i) Beginning on January 1, 2026, and subject to Subsections (12)(c)(ii) and (iii), a tax imposed under this section on hydrogen used to operate or propel a motor vehicle upon the public highways of the state is imposed at a rate of $0.212 per gallon equivalent.
(ii) Beginning on January 1, 2027, the commission shall, on January 1, annually adjust the rate of a tax imposed under this section on hydrogen used to operate or propel a motor vehicle upon the public highways of the state by taking the rate for the previous calendar year and adding an amount equal to the greater of:
(A) an amount calculated by multiplying the rate of a tax imposed under this section on hydrogen used to operate or propel a motor vehicle upon the public highways of the state for the previous calendar year by the actual percent change during the previous fiscal year in the Consumer Price Index; and
(B) 0.
(iii) The rate of a tax imposed under this section on hydrogen used to operate or propel a motor vehicle upon the public highways of the state determined by the commission under Subsection (12)(c)(ii) may not exceed 22-1/2 cents per gasoline gallon equivalent.
(d)
(i) The commission shall annually:
(A) adjust the fuel tax rates imposed under Subsections (12)(a)(ii), (b)(ii), and (c)(ii), rounded to the nearest one-tenth of a cent;
(B) publish the adjusted fuel tax as a cents per gallon rate; and
(C) post or otherwise make public the adjusted fuel tax rate as determined in Subsection (12)(d)(i)(A) no later than 60 days before the annual effective date under Subsection (12)(d)(ii).
(ii) The tax rates imposed under this Subsection (12) and adjusted as required under Subsection (12)(d)(i) shall take effect on January 1 of each year.
(1) In accordance with this section, the Ute tribe may receive a refund from the state of amounts paid in accordance with Section 59-13-301 if:
(a) the amounts paid by the Ute tribe when it purchases the special fuel includes the amount paid in taxes on the special fuel;
(b) the special fuel is purchased for use by:
(i) the Ute tribe; or
(ii) a Ute tribal member from a retail station that is:
(A) wholly owned by the Ute tribe; and
(B) located on Ute trust land; and
(c) the governor and the Ute tribe execute and maintain an agreement meeting the requirements of Subsection (3).
(2) In addition to the agreement required by Subsection (1), the commission shall enter into an agreement with the Ute tribe that:
(a) provides an allocation formula or procedure for determining:
(i) the amount of special fuel sold by the Ute tribe to a Ute tribal member; and
(ii) the amount of special fuel sold by the Ute tribe to a person who is not a Ute tribal member; and
(b) provides a process by which:
(i) the Ute tribe obtains a refund permitted by this section; and
(ii) reports and remits special fuel tax to the state for sales made to persons who are not Ute tribal members.
(3) The agreement required under Subsection (1):
(a) may not:
(i) authorize the state to impose a tax in addition to a tax imposed under this chapter;
(ii) provide a refund, credit, or similar tax relief that is greater or different than the refund permitted under this section; or
(iii) affect the power of the state to establish rates of taxation; and
(b) shall:
(i) provide that the state agrees to allow the refund described in this section;
(ii) be in writing;
(iii) be signed by:
(A) the governor; and
(B) the chair of the Business Committee of the Ute tribe;
(iv) be conditioned on obtaining any approval required by federal law; and
(v) state the effective date of the agreement.
(4)
(a) The governor shall report to the commission by no later than February 1 of each year as to whether or not an agreement meeting the requirements of this Subsection (4) is in effect.
(b) If an agreement meeting the requirements of this Subsection (4) is terminated, the refund permitted under this section is not allowed beginning the January 1 following the date the agreement terminates.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules regarding the procedures for seeking a refund agreed to under the agreement described in Subsection (2).
(1) As used in this section:
(a) "applicant" means a person that:
(i) is required by this section to obtain a license; and
(ii) submits an application:
(A) to the commission; and
(B) for a license under this section;
(b) "application" means an application for a license under this section;
(c) "fiduciary of the applicant" means a person that:
(i) is required to collect, truthfully account for, and pay over an amount under this part for an applicant; and
(ii)
(A) is a corporate officer of the applicant described in Subsection (1)(c)(i);
(B) is a director of the applicant described in Subsection (1)(c)(i);
(C) is an employee of the applicant described in Subsection (1)(c)(i);
(D) is a partner of the applicant described in Subsection (1)(c)(i);
(E) is a trustee of the applicant described in Subsection (1)(c)(i); or
(F) has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(d) "fiduciary of the licensee" means a person that:
(i) is required to collect, truthfully account for, and pay over an amount under this part for a licensee; and
(ii)
(A) is a corporate officer of the licensee described in Subsection (1)(d)(i);
(B) is a director of the licensee described in Subsection (1)(d)(i);
(C) is an employee of the licensee described in Subsection (1)(d)(i);
(D) is a partner of the licensee described in Subsection (1)(d)(i);
(E) is a trustee of the licensee described in Subsection (1)(d)(i); or
(F) has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(e) "license" means a license under this section; and
(f) "licensee" means a person that is licensed under this section by the commission.
(2) A person that is required to collect an amount under this part is guilty of a criminal violation as provided in Section 59-1-401 if before obtaining a license under this section that person engages in business within the state.
(3) The license described in Subsection (2):
(a) shall be granted and issued:
(i) by the commission in accordance with this section;
(ii) without a license fee; and
(iii) if:
(A) an applicant:
(I) states the applicant's name and address in the application; and
(II) provides other information in the application that the commission may require; and
(B) the person meets the requirements of this section to be granted a license as determined by the commission;
(b) may not be assigned to another person; and
(c) is valid:
(i) only for the person named on the license; and
(ii) until:
(A) the person described in Subsection (3)(c)(i):
(I) ceases to do business; or
(II) changes that person's business address; or
(B) the commission revokes the license.
(4) The commission shall review an application and determine whether:
(a) the applicant meets the requirements of this section to be issued a license; and
(b) a bond is required to be posted with the commission in accordance with Subsection (5) before the applicant may be issued a license.
(5)
(a) An applicant shall post a bond with the commission before the commission may issue the applicant a license if:
(i) a license under this section was revoked for a delinquency under this part for:
(A) the applicant;
(B) a fiduciary of the applicant; or
(C) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or
(ii) there is a delinquency in paying a tax under this part for:
(A) the applicant;
(B) a fiduciary of the applicant; or
(C) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part.
(b) If the commission determines it is necessary to ensure compliance with this part, the commission may require a licensee to:
(i) for a licensee that has not posted a bond under this section with the commission, post a bond with the commission in accordance with Subsections (5)(c) through (g); or
(ii) for a licensee that has posted a bond under this section with the commission, increase the amount of the bond posted with the commission.
(c) A bond under this Subsection (5) shall be:
(i) executed by:
(A) for an applicant, the applicant as principal, with a corporate surety; or
(B) for a licensee, the licensee as principal, with a corporate surety; and
(ii) payable to the commission conditioned upon the faithful performance of all of the requirements of this part including:
(A) the payment of all amounts under this part;
(B) the payment of any:
(I) penalty as provided in Section 59-1-401; or
(II) interest as provided in Section 59-1-402; or
(C) any other obligation of the:
(I) applicant under this part; or
(II) licensee under this part.
(d) Except as provided in Subsection (5)(f), the commission shall calculate the amount of a bond under this Subsection (5) on the basis of:
(i) commission estimates of:
(A) an applicant's liability for any amount under this part; or
(B) a licensee's liability for any amount under this part; and
(ii) the amount of a delinquency described in Subsection (5)(e) if:
(A) a license under this section was revoked for a delinquency under this part for:
(I)
(Aa) an applicant; or
(Bb) a licensee;
(II) a fiduciary of the:
(Aa) applicant; or
(Bb) licensee; or
(III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of the licensee is required to collect, truthfully account for, and pay over an amount under this part; or
(B) there is a delinquency in paying an amount under this part for:
(I)
(Aa) an applicant; or
(Bb) a licensee;
(II) a fiduciary of the:
(Aa) applicant; or
(Bb) licensee; or
(III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of the licensee is required to collect, truthfully account for, and pay over an amount under this part.
(e) Except as provided in Subsection (5)(f), for purposes of Subsection (5)(d)(ii):
(i) for an applicant, the amount of the delinquency is the sum of:
(A) the amount of any delinquency that served as a basis for revoking the license under this section of:
(I) the applicant;
(II) a fiduciary of the applicant; or
(III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over an amount under this part; or
(B) the amount that any of the following owe under this part:
(I) the applicant;
(II) a fiduciary of the applicant; and
(III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over an amount under this part; or
(ii) for a licensee, the amount of the delinquency is the sum of:
(A) the amount of any delinquency that served as a basis for revoking the license under this section of:
(I) the licensee;
(II) a fiduciary of the licensee; or
(III) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over an amount under this part; or
(B) the amount that any of the following owe under this part:
(I) the licensee;
(II) a fiduciary of the licensee; and
(III) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over an amount under this part.
(f) Notwithstanding Subsection (5)(d) or (e), a bond required by this Subsection (5) may not:
(i) be less than $10,000; or
(ii) exceed $500,000.
(g)
(i) Subject to Subsection (5)(g)(ii), a bond required by this section may be combined into one bond with any other bond required by this chapter.
(ii) For purposes of Subsection (5)(g)(i), if a bond required by this section is combined into one bond with any other bond required by this chapter, the amount of that combined bond is determined by:
(A) calculating the separate amount of each bond required for each type of fuel included in the combined bond; and
(B) aggregating the separate amounts calculated in Subsection (5)(g)(ii)(A).
(6)
(a) The commission shall revoke a license under this section if:
(i) a licensee violates any provision of this part; and
(ii) before the commission revokes the license the commission provides the licensee:
(A) reasonable notice; and
(B) a hearing.
(b) If the commission revokes a licensee's license in accordance with Subsection (6)(a), the commission may not issue another license to that licensee until that licensee complies with the requirements of this part, including:
(i) paying any:
(A) amounts due under this part;
(B) penalty as provided in Section 59-1-401; or
(C) interest as provided in Section 59-1-402; and
(ii) posting a bond in accordance with Subsection (5).
(7)
(a) If any person ceases to be a supplier within the state by reason of the discontinuance, sale, or transfer of the person's business, the supplier shall notify the commission in writing at the time the discontinuance, sale, or transfer takes effect.
(b) The notice shall give the date of discontinuance and, in the event of a sale, the date of the sale and the name and address of the purchaser or transferee.
(c) Taxes on all special fuel delivery or removal made prior to the discontinuance, sale, or transfer, shall become due and payable on the date of discontinuance, sale, or transfer.
(d) The supplier shall make a report and pay all taxes, interest, and penalties and surrender to the commission the license certificate that was issued to the supplier by the commission.
(8)
(a) The tax imposed by this part shall be a lien upon the property of any supplier liable for an amount of tax that is required to be collected, if the supplier sells the business, stock of goods, or quits business, and if the supplier fails to make a final return and payment within 15 days after the date of selling or quitting business.
(b) The successor or assigns, if any, shall be required to withhold a sufficient amount of the purchase money to cover the amount of the taxes that are required to be collected and interest or penalties due and paid under Sections 59-1-401 and 59-1-402 until the former owner produces a receipt from the commission showing that the taxes have been paid or a certificate stating that no amount of tax is due. If the purchaser of a business or stock of goods fails to withhold sufficient purchase money, the purchaser shall be personally liable for the payment of the amount that is due.
(1)
(a) Except as provided in Subsection (1)(b), each user shall, prior to the use of the fuel in a qualified motor vehicle, apply to the commission on forms prescribed by the commission for a special fuel user permit. When the application is approved by the commission, a single special fuel user permit shall be issued to the user.
(b) In place of the special fuel user permit issued under Subsection (1)(a), a user may purchase a special fuel user trip permit. A special fuel user trip permit is valid for 96 hours or until the qualified vehicle leaves the state, whichever occurs first.
(c) The fee for the special fuel user trip permit is $25.
(2) A special fuel user permit number shall be assigned to each licensed user and is nontransferable and valid until surrendered by the user for nonuse or until revoked by the commission.
(3) The special fuel user permit expires December 31 of each year. Special fuel user permits for the calendar year shall be honored until February 28 of the following year. An application shall be filed with the commission each year for a new special fuel user permit for vehicles operated by a licensed user.
(4)
(a) The special fuel user permit shall be kept in the passenger compartment of each vehicle, or as otherwise authorized by the commission.
(b) A user that does not comply with the requirements of this section may be required to purchase a special fuel user trip permit.
(5) The commission may revoke the special fuel user permit issued under this section from any person refusing or neglecting to comply with this part.
(6) Any user reporting Utah special fuel tax liability under Part 5, Interstate Agreements, is exempted from the permit requirements of this section.
(1) The commission may require each clean fuel vehicle to be inspected for safe operation.
(2) Each clean fuel vehicle shall be equipped with an approved and properly installed carburetion system if it is powered by a fuel that is gaseous at standard atmospheric conditions.
(1) Unless exempted by Subsection (5), each user shall file with the commission, on or before the last day of the month following the end of a reporting period, a report on forms prescribed by the commission showing:
(a) the amount of fuel purchased and the amount of fuel used during the preceding reporting period by that user in the state; and
(b) any other information the commission may require to carry out the purposes of this part.
(2) The report shall be signed by the user or a responsible representative. This signature need not be notarized, but when signed is considered to have been made under oath.
(3) A penalty is imposed under Section 59-1-401 for failure to file reports as provided in this section for each report not filed, regardless of the imposition of other penalties under this part.
(4)
(a) Each user that has a registered special fuel-powered motor vehicle other than a qualified motor vehicle and has facilities for bulk storage of special fuels shall declare special fuel tax liability for any nonqualified motor vehicle on the user report required by Subsection (1).
(b) Credit shall be given on the report for any special fuel taxes paid on purchases for any nonqualified vehicle. Purchase records must be maintained to substantiate the amount of any credit claimed.
(5)
(a) The following users are exempt from the filing requirements of Subsections (1) and (2) for the motor vehicles specified:
(i) a user who purchases a special fuel user trip permit for all of its operations for qualified vehicles for the reporting period, except a user having a special fuel user permit under Subsection 59-13-303(1)(a);
(ii) a user that has a registered special fuel-powered motor vehicle other than a qualified motor vehicle and does not have facilities for bulk storage of special fuels;
(iii) a user of special fuel, for which the tax imposed by this chapter has already been paid; or
(iv) a user that has a motor vehicle powered by special fuel for which the tax is paid under an interstate fuel tax agreement under Section 59-13-502.
(b)
(i) The exemption under Subsection (5)(a)(iii) applies only when the user retains records verifying that all special fuel purchases for the exempt vehicle were taxed as required under this part.
(ii) The commission may at the time of application or renewal of a special fuel user permit under Section 59-13-303 require that the user certify:
(A) that the user qualifies for an exemption under Subsection (5)(a)(iii); and
(B) whether the user has facilities for bulk storage of special fuel.
The special fuel tax is due and payable at the offices of the commission on or before the last day of the month following each reporting period. If not paid at the offices of the commission or if the envelope enclosing the report or remittance does not bear a post office cancellation mark dated on or before the due date, the special fuel tax is delinquent.
(1) Each supplier shall file with the commission, on or before the last day of each month, a report on forms prescribed by the commission showing the amount of fuel delivered or removed during the preceding calendar month and any other information the commission may require to carry out the purposes of this part.
(2) The report shall be signed by the supplier or a responsible representative. This signature need not be notarized, but when signed is considered to have been made under oath. The report shall be accompanied by a remittance payable to the commission for the amount of special fuel tax due.
(3) A penalty is imposed under Section 59-1-401 upon each licensee and bonded supplier who fails to file any report as prescribed regardless of the imposition of other penalties under this part.
If any user becomes delinquent in tax payments under this part, all licenses or permits issued under this part are automatically revoked. In addition, the commission shall impose a penalty determined under Section 59-1-401. The amount of the delinquent tax and the penalty shall bear interest at the rate and in the manner prescribed in Section 59-1-402.
(1) Every person who delivers special fuel from outside the state to any consignee within the state shall file with the commission on or before the last day of each month a report on forms prescribed by the commission showing:
(a) all deliveries of special fuel within the state during the preceding month; and
(b) the points of origin and original destination.
(2) Where any consignment of special fuel was diverted in transit and delivered within this state, the carrier making delivery of this consignment shall report to the commission:
(a) the place of the delivery of the consignment;
(b) to whom the consignment was delivered;
(c) the number of gallons of special fuel transported or delivered;
(d) the date of delivery and the name of the consignor and of the consignee; and
(e) any other information the commission may require.
The special fuel tax constitutes a lien upon, and has the effect of an execution duly levied against, any vehicle in which special fuel is used. The lien may not be removed until the special fuel tax is paid or the vehicle subject to the lien is sold in payment of the tax.
(1)
(a) A user claiming a refund for taxes paid to a supplier shall retain on file a receipt or invoice, or a microfilm or microfiche of the receipt or invoice, evidencing the purchase of special fuel and the payment of the tax.
(b) The commission may require the user to furnish summaries or copies of original documentation substantiating the amount of refund claimed.
(2) If the payer of this tax or the person dealing in special fuel does not maintain records in this state so that an audit of the records may be made by the commission or its representative, that person may be required to:
(a) forward the necessary records to the commission for examination; or
(b) pay the necessary expenses for an auditor of the commission to travel to the location of the records outside of this state to make an examination.
(3) Funds collected under this section:
(a) shall be deposited with the state treasurer; and
(b) are dedicated credits for the commission.
(1)
(a) The commission is charged with the enforcement of this part and may prescribe rules relating to administration and enforcement of this part.
(b) The commission may coordinate with state and federal agencies in the enforcement of this part.
(c) Enforcement procedures may include checking diesel fuel dye compliance of storage facilities and tanks of vehicles, in a manner consistent with state and federal law.
(2)
(a) If the commission has reason to question the report filed or the amount of special fuel tax paid to the state by a user or supplier, the commission may compute and determine the amount to be paid based upon the best information available to the commission.
(b) Any added amount of special fuel tax determined to be due under this section shall:
(i) have added to it a penalty as provided under Section 59-1-401; and
(ii) bear interest at the rate and in the manner prescribed in Section 59-1-402.
(c)
(i) The commission shall give to the user or supplier written notice of the commission's determination.
(ii) The commission may:
(A) serve the notice described in Subsection (2)(c)(i) personally; or
(B) send the notice described in Subsection (2)(c)(i) to the user or supplier at the user or supplier's last-known address as it appears in the records of the commission.
(3) The commission may, upon the duly received request of the officials to whom the enforcement of the special fuel laws of any other state are entrusted, forward to those officials any information which the commission may have in its possession relative to the delivery, removal, production, manufacture, refining, compounding, receipt, sale, use, transportation, or shipment of special fuel by any person.
Before registering any motor vehicle which is operated by special fuels, the registered owner or lessee of the vehicle shall obtain a valid special fuel user permit for the current year if required under Section 59-13-303.
The transfer of registered ownership of any motor vehicle subject to a lien of the tax imposed by this part may be effected only after a certificate of clearance of the tax has been issued by the commission.
A refund that a taxpayer is allowed under this chapter shall be paid from the Transportation Fund.
(1) The following offenses, unless otherwise provided, are class B misdemeanors:
(a) failing or refusing to pay the tax imposed by this part;
(b) engaging in business in this state as a supplier without being the holder of an uncancelled license to engage in this business;
(c) operating a motor vehicle, which requires special fuel, upon the highways of this state without a valid special fuel user permit;
(d) failing to make any of the reports required by this part;
(e) making any false statement in any application, report, or statement required by this part;
(f) refusing to permit the commission or any employee to examine records as provided by this part;
(g) failing to keep proper records of quantities of fuel received, produced, refined, manufactured, compounded, used, or delivered in this state as required by this part;
(h) making any false statement in connection with an application for the refund of any money or taxes provided in this part; or
(i) violating any of the provisions of this part for which no penalty is provided.
(2) Any person required to make, render, sign, or verify any report and who makes any false or fraudulent report with intent to defeat or evade the assessment required by law to be made, is subject to a criminal violation under Section 59-1-401.
(3) The remedies of the state are cumulative and no action taken by the commission or any of its officers to pursue any remedy may be construed to be an election on the part of the state to exclude any other allowed by law.
(1) A person may not operate a motor vehicle on a highway if a fuel supply tank of the motor vehicle contains dyed diesel fuel, unless:
(a) permitted under federal law;
(b)
(i) the motor vehicle is used on the highway only to travel from one parcel of land owned or operated by the owner to another parcel of land owned or operated by the owner; and
(ii) the motor vehicle's travel on the highway is necessary for furtherance of agricultural purposes; or
(c) the motor vehicle is special mobile equipment, as defined in Section 41-1a-102, including off-road motorized construction or maintenance equipment, that is only incidentally operated or moved on a highway in connection with a construction project.
(2) A person who violates Subsection (1) shall pay a penalty assessed by the commission as follows:
(a) the greater of $500 or $5 per gallon of dyed diesel fuel within each fuel supply tank of the motor vehicle, based on the maximum storage capacity of each fuel supply tank; or
(b) for a second and subsequent offense, the greater of $1,000 or $10 per gallon of dyed diesel fuel within each fuel supply tank of the motor vehicle, based on the maximum storage capacity of each fuel supply tank.
(3) The penalty imposed under this section:
(a) is in addition to any other taxes, interest, or penalties imposed under this chapter; and
(b) shall be deposited in the Transportation Fund.
(4) Upon making a record of its actions, and upon reasonable cause shown, the commission may waive, reduce, or compromise the penalty imposed under this section.
(5)
(a) A government official, including a law enforcement officer, may not inspect the fuel from a fuel supply tank of a motor vehicle to determine if the fuel supply tank contains dyed diesel fuel unless the official:
(i) subject to Subsection (5)(b), has probable cause to believe that the operator or owner of the motor vehicle is in violation of this section;
(ii) has received consent from the operator or owner of the motor vehicle to inspect the fuel; or
(iii) is conducting the search at a port-of-entry in accordance with Section 72-9-501 for the purpose of checking the motor vehicle for compliance with state and federal laws.
(b) The act of driving a motor vehicle that uses diesel fuel on a highway, without additional facts indicating a potential violation of this section, does not constitute sufficient facts to establish probable cause for an official, including a law enforcement officer, to inspect the fuel from a fuel supply tank of a motor vehicle under Subsection (5)(a)(i).
(1) As used in this section "wholesaler" means a person who receives a rack distribution of diesel fuel from a supplier for purposes of resale.
(2)
(a) Upon agreement of wholesaler and supplier, the payment of the taxes to the supplier under this part may be made on or before one business day prior to the time that the supplier is required to remit those taxes to the commission.
(b) The wholesaler shall provide written notification to the supplier of the wholesaler's intent to exercise the payment option under Subsection (2)(a) at least 30 days prior to the payment.
(c) The wholesaler's payment of the taxes under Subsection (2)(a) shall be made by electronic funds transfer.
(3) Upon the wholesaler's exercise of the payment option provided in Subsection (2), the supplier may require security for the payment of the taxes if no security exists between the wholesaler and the supplier.
(4) At the option of the supplier, the wholesaler's exercise of the payment option provided under this section may be terminated if the wholesaler fails to:
(a) remit timely payment of the taxes as provided in Subsection (2); or
(b) provide security as provided in Subsection (3).
(1)
(a) A retailer, wholesaler, licensed distributor, or licensed supplier, who without fault, sustains a loss or destruction of 7,000 or more gallons of diesel fuel in a single incident due to fire, flood, storm, accident, or the commission of a crime and who has paid or is required to pay the tax on the special fuel as provided by this part, is entitled to a refund or credit of the tax subject to the conditions and limitations provided under this section.
(b) The claimant shall file a claim for a refund or credit with the commission within 90 days of the incident.
(c) Any part of a loss or destruction eligible for indemnification under an insurance policy for the taxes paid or required on the loss or destruction of special fuel is not eligible for a refund or credit under this section.
(d) Any claimant filing a claim for a refund or credit shall furnish any or all of the information outlined in this section upon request of the commission.
(e) The burden of proof of loss or destruction is on the claimant who shall provide evidence of loss or destruction to the satisfaction of the commission.
(f)
(i) The claim shall include an affidavit containing the:
(A) name of claimant;
(B) claimant's address;
(C) date, time, and location of the incident;
(D) cause of the incident;
(E) name of the investigating agencies at the scene;
(F) number of gallons actually lost from sale; and
(G) information on any insurance coverages related to the incident.
(ii) The claimant shall support the claim by submitting the original invoices or copy of the original invoices.
(iii) This original claim and all information contained in it constitutes a permanent file with the commission in the name of the claimant.
(2)
(a) A retailer, wholesaler, licensed distributor, or licensed supplier who has paid the tax on special fuel as provided by this part is entitled to a refund for taxes paid on that portion of an account that:
(i) relates to 4,500 or more gallons of special fuel purchased in a single transaction for which no payment has been received; and
(ii) has been discharged in a bankruptcy proceeding.
(b) The claimant shall file a claim for refund with the commission within 90 days from the date of the discharge.
(c) Any claimant filing a claim for a refund shall furnish any or all of the information outlined in this section upon request of the commission.
(d) The burden of proof of discharge is on the claimant who shall provide evidence of discharge to the satisfaction of the commission.
(e) The claim shall include an affidavit containing the following:
(i) the name of the claimant;
(ii) the claimant's address;
(iii) the name of the debtor that received a discharge in bankruptcy; and
(iv) the portion of the account that is subject to an order granting a discharge.
(f) The claimant shall support the claim by submitting:
(i) the original invoices or a copy of the original invoices; and
(ii) a certified copy of the notice of discharge.
(g) This original claim and all information contained in it constitutes a permanent file with the commission in the name of the claimant.
(h) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall promulgate rules for the allocation of the discharge under this Subsection (2) to maximize the claimant's refund amount.
(3)
(a) Subject to the conditions and limitations of this section, a retailer, wholesaler, licensed distributor, or licensed supplier is entitled to a refund or credit of special fuel tax if:
(i) dyed diesel fuel or special fuel is mixed with special fuel; and
(ii) the retailer, wholesaler, licensed distributor, or licensed supplier:
(A) returns the mixed special fuel to the refinery for re-refining; and
(B) has paid the tax on the special fuel as provided by this part.
(b) The claimant shall file a claim for a refund or credit with the commission within 90 days of the date the special fuel was returned to the refinery for re-refinement.
(c) Any claimant filing a claim for a refund or credit shall furnish any or all of the information outlined in this section upon request of the commission.
(d) The burden of proof that the special fuel was returned to the refinery for re-refinement is on the claimant who shall provide evidence to the satisfaction of the commission that the special fuel was returned to the refinery for re-refinement.
(e)
(i) The claim shall include an affidavit containing the:
(A) name of claimant;
(B) claimant's address;
(C) date, time, and location of the incident;
(D) nature of the incident; and
(E) number of gallons of special fuel actually required to be re-refined.
(ii) The claimant shall support the claim by submitting written verification from a refinery that:
(A) the special fuel mixed with the dyed diesel fuel or special fuel was returned to the refinery for re-refinement; and
(B) special fuel tax was paid on the returned special fuel.
(iii) The claim filed pursuant to Subsection (3)(b) and all information contained in it constitutes a permanent file with the commission in the name of the claimant.
(4)
(a) Upon commission approval of the claim for a refund, the commission shall pay the amount found due to the claimant.
(b) The total amount of claims for refunds shall be paid from the Transportation Fund.
(5)
(a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may:
(i) promulgate rules to enforce this part; and
(ii) refuse to accept unsubstantiated evidence for the claim.
(b) If the commission is not satisfied with the evidence submitted in connection with the claim, it may:
(i) reject the claim; or
(ii) require additional evidence.
(6) Any person aggrieved by the decision of the commission with respect to a refund or credit may file a request for agency action, requesting a hearing before the commission.
(7)
(a) Any person who makes any false claim, report, or statement, either as claimant, agent, or creditor, with intent to defraud or secure a refund or credit to which the claimant is not entitled, is subject to the criminal penalties provided under Section 59-1-401, and the commission shall initiate the filing of a complaint for alleged violations of this part.
(b) In addition to the penalties under Subsection (7)(a), the person may not receive any refund or credit as a claimant or as a creditor of a claimant for refund or credit for a period of five years.
(1) A tax is imposed upon aviation fuel at the rates provided in this section.
(2) Except as provided by Subsection (3), the tax on aviation fuel shall be 9 cents per gallon.
(3) Aviation fuel purchased for use by a federally certificated air carrier is subject to a tax of:
(a) 4 cents per gallon on aviation fuel purchased other than at an international airport:
(i) located within a county of the first class; and
(ii) that has a United States customs office on its premises; or
(b) 2.5 cents per gallon on aviation fuel purchased at an international airport:
(i) located within a county of the first class; and
(ii) that has a United States customs office on its premises.
(1)
(a) All revenue received by the commission under this part shall be deposited daily with the state treasurer who shall credit all of the revenue collected to the Transportation Fund.
(b) An appropriation from the Transportation Fund shall be made to the commission to cover expenses incurred in the administration and enforcement of this part and the collection of the aviation fuel tax.
(c) Refunds to which taxpayers are entitled under this part shall be paid from the Transportation Fund.
(2) The state treasurer shall place an amount equal to the total amount received from the sale or use of aviation fuel in the Aeronautics Restricted Account created by Section 72-2-126.
(3) The tax imposed on each gallon of aviation fuel under Section 59-13-401 shall be allocated to the airport where the aviation fuel was sold and to aeronautical operations of the Department of Transportation as follows:
| | | Total Tax Allocated | Allocation to Airport | Allocation to Aeronautical Operations | | --- | --- | --- | --- | --- |
(a)
| | | Tax on Each Gallon of Aviation Fuel Purchased for Use by a Federally Certificated Air Carrier Other than at an International Airport Located Within a County of the First Class that has a United States Customs Office on its Premises | $.04 | | $.03 | | $.01 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(b)
| | | Tax on Each Gallon of Aviation Fuel Purchased for Use by a Federally Certificated Air Carrier at an International Airport Located Within a County of the First Class that has a United States Customs Office on its Premises | $.025 | | $.015 | | $.01 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(c)
| | | Tax on Each Gallon of Aviation Fuel Purchased for Use by a Person Other than a Federally Certificated Air Carrier at an International Airport Located Within a County of the First Class that has a United States Customs Office on its Premises | $.09 | | $.00 | | $.09 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(d)
| | | Tax on Each Gallon of Aviation Fuel Purchased for Use by a Person Other than a Federally Certificated Air Carrier Other than at an International Airport Located Within a County of the First Class that has a United States Customs Office on its Premises | $.09 | | $.03 | | $.06 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- |
(e) The allocation to the publicly used airport may be used at the discretion of the airport's governing authority for the:
(i) construction, improvements, operation, and maintenance of publicly used airports in the state; and
(ii) payment of principal and interest on indebtedness incurred for the purposes described in Subsection (3)(e)(i).
(f) Upon appropriation by the Legislature, the allocation to aeronautical operations of the Department of Transportation shall be used as provided in the Aeronautics Restricted Account created by Section 72-2-126.
(4)
(a) The commission shall require reports and returns from distributors, retail dealers, and users in order to enable the commission and the Department of Transportation to allocate the revenue to be credited to:
(i) the Aeronautics Restricted Account created by Section 72-2-126; and
(ii) the separate accounts of individual airports.
(b)
(i) Except as provided by Subsection (4)(b)(ii), any unexpended amount remaining in the account of any publicly used airport on the first day of January, April, July, and October shall be paid to the authority operating the airport.
(ii) Aviation fuel tax allocated to any airport owned and operated by a city of the first class shall be paid to the city treasurer on the first day of each month.
(c) The state treasurer shall place aviation fuel tax collected on fuel sold at places other than publicly used airports in the Aeronautics Restricted Account created by Section 72-2-126.
(1) All administrative and penalty provisions of Part 2, Motor Fuel, apply to the administration of Part 4, Aviation Fuel.
(2) Notwithstanding Subsection (1), a distributor is not required to furnish a bond if the distributor:
(a) meets the definition of distributor under Subsection 59-13-102(7)(d); and
(b) has an average tax liability of $500 or less per month.
(1) The commission may enter into cooperative agreements with other states for the exchange of information and auditing of users of motor fuel and special fuels used in fleets of motor vehicles operated or intended to operate interstate. Any agreement, arrangement, declaration, or amendment is not effective until stated in writing and filed with the commission.
(2) Any agreement may provide for:
(a) determining the base state for users;
(b) users' records requirements;
(c) audit procedures;
(d) exchange of information;
(e) persons eligible for tax licensing;
(f) defining qualified motor vehicles;
(g) determining if bonding is required;
(h) specifying reporting requirements and periods including defining uniform penalty and interest rates for late reporting;
(i) determining methods for collecting and forwarding of motor fuel and special fuel taxes and penalties to another jurisdiction; and
(j) any other provisions designed to facilitate the administration of the agreement.
(3) The commission may, as required by the terms of an agreement, forward to officers of another state any information in the commission's possession relative to the manufacture, receipts, sale, use, transportation, or shipment of motor fuel or special fuel by any person. The commission may disclose the location of officers, motor vehicles, and other real and personal property of users of motor fuel or special fuel to officers of another state.
(4) Any agreement may provide for each state to audit the records of persons based in the state, to determine if the motor fuel or special fuel taxes due each state are properly reported and paid. Each state shall forward the findings of the audits performed on persons based in the state to each state in which the person has taxable use of motor fuels and special fuels. For persons not based in this state and who have taxable use of motor fuels or special fuels in this state, the commission may serve the audit findings received from another state, in the form of an assessment, on the person as if the audit were conducted by the commission.
(5) Any agreement entered into pursuant to this section does not preclude the commission from auditing the records of any person covered by the provisions of this chapter.
(6) The legal remedies for any person served with an order or assessment under this section are as prescribed in this chapter.
(7) If the commission enters into any agreement under the authority of this section, and the provisions established in the agreement are in conflict with any rules promulgated by the commission, the agreement provisions prevail.
(1) After the commission's membership in an agreement provided for under Section 59-13-501 becomes effective, a taxpayer shall, for vehicles powered by special fuel qualifying under the agreement, be required to pay the special fuel tax at the rate established under Part 3, Special Fuel, in accordance with the provisions of the agreement.
(2) Any taxpayer who has vehicles, qualifying under an agreement entered into under this part, which operate on motor fuel as defined under Section 59-13-102, shall account for and pay tax on fuel used in those vehicles at the rate established under Part 2, Motor Fuel, in accordance with the agreement, and receive credit for taxes paid under Part 2, Motor Fuel, on purchases as provided for in the agreement.
(3) The statutory notice procedures of this chapter, penalty provisions of Section 59-1-401, and adjudicative procedures in Title 63G, Chapter 4, Administrative Procedures Act, are applicable to this part.
As used in this chapter:
(1) "Alternative nicotine product" means the same as that term is defined in Section 76-9-1101.
(2) "Cigarette" means a roll made wholly or in part of tobacco:
(a) regardless of:
(i) the size of the roll;
(ii) the shape of the roll;
(iii) whether the tobacco is flavored, adulterated, or mixed with any other ingredient; or
(iv) whether the tobacco is heated or burned; and
(b) if the roll has a wrapper or cover that is made of paper or any other substance or material except tobacco.
(3) "Cigarette rolling machine" means a device or machine that has the capability to produce at least 150 cigarettes in less than 30 minutes.
(4) "Cigarette rolling machine operator" means a person who:
(a)
(i) controls, leases, owns, possesses, or otherwise has available for use a cigarette rolling machine; and
(ii) makes the cigarette rolling machine available for use by another person to produce a cigarette; or
(b) offers for sale, at retail, a cigarette produced from the cigarette rolling machine.
(5) "Consumer" means a person that is not required:
(a) under Section 59-14-201 to obtain a license under Section 59-14-202;
(b) under Section 59-14-301 to obtain a license under Section 59-14-202; or
(c) to obtain a license under Section 59-14-803.
(6) "Counterfeit cigarette" means:
(a) a cigarette that has a false manufacturing label; or
(b) a package of cigarettes bearing a counterfeit tax stamp.
(7)
(a) "Electronic cigarette" means the same as that term is defined in Section 76-9-1101.
(b) "Electronic cigarette" does not include a cigarette or a tobacco product.
(8) "Electronic cigarette product" means the same as that term is defined in Section 76-9-1101.
(9) "Electronic cigarette substance" means the same as that term is defined in Section 76-9-1101.
(10) "Importer" means a person that imports into the United States, either directly or indirectly, a finished cigarette for sale or distribution.
(11) "Indian tribal entity" means a federally recognized Indian tribe, tribal entity, or any other person doing business as a distributor or retailer of cigarettes on tribal lands located in the state.
(12) "Little cigar" means a roll for smoking that:
(a) is made wholly or in part of tobacco;
(b) uses an integrated cellulose acetate filter or other similar filter; and
(c) is wrapped in a substance:
(i) containing tobacco; and
(ii) that is not exclusively natural leaf tobacco.
(13)
(a) Except as provided in Subsection (13)(b), "manufacturer" means a person that:
(i) manufactures, fabricates, assembles, processes, or labels a finished cigarette; or
(ii) makes, modifies, mixes, manufactures, fabricates, assembles, processes, labels, repackages, relabels, or imports an electronic cigarette product or a nicotine product.
(b) "Manufacturer" does not include a cigarette rolling machine operator.
(14) "Moist snuff" means tobacco that:
(a) is finely cut, ground, or powdered;
(b) has at least 45% moisture content, as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(c) is not intended to be:
(i) smoked; or
(ii) placed in the nasal cavity; and
(d) except for single-use pouches of loose tobacco, is not packaged, produced, sold, or distributed in single-use units, including:
(i) tablets;
(ii) lozenges;
(iii) strips;
(iv) sticks; or
(v) packages containing multiple single-use units.
(15) "Nicotine" means the same as that term is defined in Section 76-9-1101.
(16) "Nicotine pouch product" means an alternative nicotine product that:
(a) delivers nicotine in the form of a pouch containing a solid, gel, or paste; and
(b) is intended for human consumption or placement in the oral cavity for absorption into the human body by any means other than inhalation.
(17) "Nicotine product" means the same as that term is defined in Section 76-9-1101.
(18) "Nontherapeutic nicotine device" means the same as that term is defined in Section 76-9-1101.
(19) "Nontherapeutic nicotine device substance" means the same as that term is defined in Section 76-9-1101.
(20) "Nontherapeutic nicotine product" means the same as that term is defined in Section 76-9-1101.
(21) "Prefilled electronic cigarette" means the same as that term is defined in Section 76-9-1101.
(22) "Prefilled nontherapeutic nicotine device" means the same as that term is defined in Section 76-9-1101.
(23) "Retailer" means a person that:
(a) sells or distributes a cigarette, an electronic cigarette product, or a nicotine product to a consumer in the state; or
(b) intends to sell or distribute a cigarette, an electronic cigarette product, or a nicotine product to a consumer in the state.
(24) "Stamp" means the indicia required to be placed on a cigarette package that evidences payment of the tax on cigarettes required by Section 59-14-205.
(25)
(a) "Tobacco product" means a product made of, or containing, tobacco.
(b) "Tobacco product" includes:
(i) a cigarette produced from a cigarette rolling machine;
(ii) a little cigar; or
(iii) moist snuff.
(c) "Tobacco product" does not include a cigarette.
(26) "Tribal lands" means land held by the United States in trust for a federally recognized Indian tribe.
The commission may, upon making a record of its actions, and upon reasonable cause shown, waive, reduce, or compromise any of the penalties or interest imposed under:
(1) Subsection 59-14-212(4)(b)(ii);
(2) Subsection 59-14-214(5)(b)(ii);
(3) Subsection 59-14-407(5)(b)(ii);
(4) Subsection 59-14-606(7)(b)(ii); or
(5) Subsection 59-14-608(1)(d).
(1) Beginning July 1, 2021, the tax imposed under this chapter is reduced in accordance with Subsection (2):
(a) on the first day of a calendar quarter; and
(b) after a 90-day period beginning on the day on which the commission receives a notice from the manufacturer of a product that has received a modified risk tobacco product order from the United States Food and Drug Administration.
(2) The tax imposed under this chapter is reduced by:
(a) 50% for any product that is issued a modified risk tobacco product order under 21 U.S.C. Sec. 387k(g)(1); and
(b) 25% for any product that is issued a modified risk tobacco product order under 21 U.S.C. Sec. 387k(g)(2).
A person that is required to file a report with the commission in accordance with 15 U.S.C. Sec. 376 shall file the report electronically in a format approved by the commission.
(1) As used in this section:
(a) "Controlled substance" means the same as that term is defined in Section 58-37-101.
(b) "Licensee" means a person that holds a license under Section 59-14-201, 59-14-301, or 59-14-803.
(2) As a condition for each license issued under this chapter, a licensee agrees to not store, sell, or attempt to sell illegally obtained controlled substances.
(3) The tax commission shall revoke each license described in Section 59-14-201, 59-14-301, and 59-14-803 that a licensee holds if the tax commission receives notice that a licensee has been charged with a criminal offense involving possession with intent to distribute, distribution, or sale of a controlled substance.
(1) It is unlawful for any person in this state to manufacture, import, distribute, barter, sell, exchange, or offer cigarettes for sale without first having obtained a license issued by the commission under Section 59-14-202.
(2) Except for the tax rates described in Subsection 59-14-204(2), this part does not apply to a cigarette produced from a cigarette rolling machine.
(3)
(a) A license may not be issued for the sale of cigarettes until the applicant has paid a license fee of $30 or a license renewal fee of $20, as appropriate.
(b) The fee for reinstatement of a license that has been revoked, suspended, or allowed to expire is $30.
(c) Notwithstanding Subsections (3)(a) and (b), the commission may not charge a fee for a license under this section for a retailer, as defined in Section 59-14-102.
(4)
(a) A license may not be issued until the applicant files a bond with the commission. The commission shall determine the form and the amount of the bond, the minimum amount of which shall be $500. The bond shall be executed by the applicant as principal, with a corporate surety, payable to the state and conditioned upon the faithful performance of all the requirements of this chapter, including the payment of all taxes, penalties, and other obligations.
(b) An applicant is not required to post a bond if the applicant:
(i) purchases during the license year only products that have the proper state stamp affixed as required by this chapter; and
(ii) files an affidavit with the applicant's application attesting to this fact.
(1) Cigarette licenses may be issued only to a person owning or operating the place or cigarette vending machine from which the cigarette sales are made.
(2)
(a) A license is required for each separate place of business.
(b) A licensee shall notify the commission within 30 days in the event that it changes the location of the business.
(3) Applications for a license under this chapter shall be submitted on a form authorized by the commission. Each application shall state:
(a) the name and address of the applicant;
(b) the address of each place of business where the applicant's business will be conducted within this state; and
(c) any other information the commission may require relevant to license qualification.
(4) A common carrier is not required to obtain more than one license for sales on conveyances operated by that carrier within the state. All conveyances owned by a common carrier are considered as one place of business for the purpose of this chapter.
(5) No license may be granted, maintained, or renewed:
(a) if any combination of people owning directly or indirectly, in the aggregate, more than 10% of the ownership interests in the applicant:
(i) has been convicted of knowingly:
(A) selling stolen or counterfeit cigarettes;
(B) receiving stolen or counterfeit cigarettes; or
(C) being involved in the smuggling or counterfeiting of cigarettes;
(ii) is a cigarette manufacturer or importer that is not a:
(A) participating manufacturer as defined in subsection II(jj) of the "Master Settlement Agreement"; or
(B) in full compliance with the provisions of this chapter dealing with nonparticipating manufacturers;
(iii) has imported, or caused to be imported, into the United States any cigarette in violation of 19 U.S.C. 1681a; or
(iv) has imported, or caused to be imported into the United States, or manufactured for sale or distribution in the United States any cigarette that does not fully comply with the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. 1331, et. seq.; and
(b) until the applicant:
(i) has paid any delinquent cigarette taxes; and
(ii) has served the period of suspension resulting from any prior revoked license.
(6) Each license shall be numbered, show the residence and place of business of the licensee, and is nontransferable.
(7)
(a) Each license is in effect for three years from the date of issuance, unless the license is earlier revoked by the commission.
(b) The license expires on the expiration date shown on the license, unless the licensee renews it in accordance with commission rules.
(c) The commission shall by rule establish procedures for the renewal and reinstatement of licenses.
(8)
(a) In addition to any civil or criminal penalty provided by law, the commission shall, after providing notice and a hearing, revoke the license of any person:
(i) found to have violated this title; or
(ii) who no longer qualifies for licensure under Subsection (5).
(b) In the case of a revocation under Subsection (8)(a)(i), a license may not be issued to that person within a period of two years after the violation.
(9) A licensee may not barter, sell, exchange, or offer for sale:
(a) cigarettes in an individual package or container that contains less than 20 cigarettes; or
(b) roll-your-own cigarettes in an individual package or container that contains less than 0.6 ounces of tobacco.
(10)
(a) The commission shall maintain a list that includes the identity of all people licensed under this section.
(b) The list shall:
(i) include the type of license possessed; and
(ii) be updated by the commission at least once per quarter.
Any person engaging in the business of manufacturing, importing, distributing, or selling or offering to sell cigarettes without holding a valid license that is currently not suspended or revoked is guilty of a class B misdemeanor for each offense.
(1) Except for cigarettes described under Subsection 59-14-210(3), there is levied a tax upon the sale, use, storage, or distribution of cigarettes in the state.
(2) The rate of the tax levied under Subsection (1) is 11 cents on each cigarette.
(3) Except as otherwise provided under this chapter, the tax levied under Subsection (1) shall be paid by any person who is the manufacturer, jobber, importer, distributor, wholesaler, retailer, user, or consumer.
(4) The tax rates specified in this section shall be increased by the commission by the same amount as any future reduction in the federal excise tax on cigarettes.
(5)
(a) There is created within the General Fund a restricted account known as the "Cigarette Tax Restricted Account."
(b) The Cigarette Tax Restricted Account consists of:
(i) the first $7,950,000 of the revenues collected from a tax under this section; and
(ii) any other appropriations the Legislature makes to the Cigarette Tax Restricted Account.
(c) For each fiscal year beginning with fiscal year 2011-12 and subject to appropriation by the Legislature, the Division of Finance shall distribute money from the Cigarette Tax Restricted Account as follows:
(i) $250,000 to the Department of Health to be expended for a tobacco prevention and control media campaign targeted towards children;
(ii) $2,900,000 to the Department of Health to be expended for tobacco prevention, reduction, cessation, and control programs;
(iii) $2,000,000 to the University of Utah Health Sciences Center for the Huntsman Cancer Institute to be expended for cancer research; and
(iv) $2,800,000 to the University of Utah Health Sciences Center to be expended for medical education at the University of Utah School of Medicine.
(d) In determining how to appropriate revenue deposited into the Cigarette Tax Restricted Account that is not otherwise appropriated under Subsection (5)(c), the Legislature shall give particular consideration to enhancing Medicaid provider reimbursement rates and medical coverage for the uninsured.
(1)
(a) Cigarettes sold to or received by members of a federally recognized Indian tribe that are purchased or received on the tribal lands are not subject to the tax imposed by Section 59-14-204.
(b) Cigarettes exempt from tax under Section 5704, Internal Revenue Code, and distributed in accordance with federal regulations are not subject to the tax imposed by Section 59-14-204.
(2)
(a)
(i) The tax applicable to cigarettes sold to or received by nontribal members on tribal lands is equal to the state tax imposed by Section 59-14-204, minus any tribal tax actually paid.
(ii) For purposes of this section, nontribal members includes any person who is not a member of the Indian tribe that is selling the cigarettes.
(b) If the application of the tax offset for tribal taxes permitted in Subsection (2)(a) results in a negative balance, the taxes owed to the state are zero.
(c)
(i) Cigarettes taxed pursuant to this Subsection (2) shall bear a tax stamp as required by Section 59-14-205 in an amount equal to the tax imposed by Section 59-14-204.
(ii) The commission shall at least semi-annually rebate to an Indian tribal entity that is in compliance with this chapter the lesser of:
(A) an amount equal to the tribal tax imposed on sales under this Subsection (2); or
(B) the face value of the tax stamps affixed to cigarettes sold under this Subsection (2).
(1) In the case of manufacturers, jobbers, importers, distributors, wholesalers, and retailers, the taxes imposed on cigarettes by this chapter shall be paid by affixing stamps in the manner and at the time prescribed in this section.
(2) All manufacturers, importers, distributors, wholesalers, and retailers shall securely affix the stamps to each individual package or container of cigarettes sold in the state, and may not sell or provide cigarette stamps to any other person.
(3)
(a) Stamps shall be securely affixed to each individual package of cigarettes within 72 hours after the cigarettes are received within the state.
(b) All cigarettes shall be stamped before sale within the state.
(c) Cigarettes manufactured within the state shall be stamped by the manufacturer when and as sold.
(4) The commission may, if it is practical and reasonable for the enforcement of the collection of taxes, make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to permit cigarettes to remain unstamped until the original case or crate is broken, unpacked, or sold.
(5) The commission may permit a person to sell and export cigarettes to a regular dealer in cigarettes outside the state without affixing stamps.
(6)
(a) If cigarettes are allowed to remain unstamped under Subsection (4) or (5), the commission may require the person holding the unstamped cigarettes to secure a surety bond from a surety company authorized to do business in this state.
(b) The surety bond described in Subsection (6)(a) shall be conditioned to secure the payment of all taxes and penalties provided in this chapter.
(7) A manufacturer, jobber, importer, distributor, wholesaler, or retailer may not remove, conceal, or obscure a cigarette package:
(a) notice described under Subsection 59-14-210(1)(a)(i); or
(b) warning label that is placed on the package in compliance with the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. Sec. 1333.
(8)
(a) Any person failing to properly affix and cancel stamps to the cigarettes, under this section and rules promulgated by the commission, may be required by the commission to pay as part of the tax, and in addition to any other penalty provided in this chapter, a penalty of $25 for each offense, to be assessed and collected by the commission in accordance with Chapter 1, Part 14, Assessment, Collections, and Refunds Act.
(b) Each article, package, or container found not having proper stamps affixed to the article, package, or container is a separate offense.
(c) The presence of any package or container in a place of business conducting retail sales shall be prima facie evidence that it is intended for sale and subject to taxes under this chapter.
(1) The commission may prepare stamps for use on packages and containers of cigarettes according to its specifications, designs, and denominations and shall keep an accurate record of all stamps for which the commission is responsible. The cost of the stamps shall be charged to any appropriation made to defray the costs of administering this chapter.
(2) The commission shall sell stamps only to persons holding licenses issued as provided in this chapter.
(a) The money received from the sale of the stamps, and all other money received from penalties, fees, and taxes provided by this chapter shall be deposited in the General Fund.
(b) The commission may deliver stamps in face value not to exceed 90% of the penal sum of the licensee's bond to any licensee without payment. The licensee shall pay for stamps within 60 days of the date the stamps were delivered on credit to the licensee.
(c) Unused stamps may be redeemed within three years of their purchase by presentation to the commission of a claim by the person to whom they were originally sold. The redemption claim shall be accompanied by the unused stamps.
(d) The commission shall certify a redemption claim with its approval to the state auditor, who shall draw a warrant upon the state treasurer for the payment of the claim.
(3) The commission shall allow a discount of 4% upon the entire amount to each licensee for each single purchase of stamps amounting to $25 or more.
(4) It is unlawful for any person to sell or dispose of stamps to any other person. However, stamps may be distributed to the various places of sale by the main office whenever a person owns or operates more than one place of sale. Each place of sale shall have a separate license and cancellation stamp.
(1) A manufacturer or importer may sell or distribute cigarettes to a licensee if that person is located or doing business in the state, including on any tribal lands located in the state.
(2) An importer may obtain cigarettes only from a licensed manufacturer.
(3)
(a) A distributor may obtain cigarettes only from a licensed manufacturer, importer, or distributor.
(b) A distributor may sell or distribute cigarettes to a person who is a licensed distributor or retailer, if that person is located or doing business in the state, including on any tribal lands in the state.
(4) A retailer may obtain cigarettes only from a properly licensed person.
(1) A person who ships unstamped cigarette packages into the state, other than to a licensed manufacturer, importer, distributor, or retailer who is authorized to affix stamps, shall first file with the commission a notice of shipment.
(2) Subsection (1) does not apply to a common or contract carrier that is transporting cigarettes through this state to another location under a proper bill of lading or freight bill, which states the quantity, source, and destination of the cigarettes.
(1) The commission may by rule provide for the method of breaking packages, the forms and kinds of containers, and the method of affixing or cancelling stamps. These rules shall allow for the enforcement of payment by inspection.
(2) A person is guilty of a class B misdemeanor who:
(a) engages in or permits any practice which is prohibited by law and makes it difficult to enforce the provisions of this chapter by inspection;
(b) refuses to allow full inspection of his premises by any peace officer or of any agent of the commission upon demand; or
(c) hinders or in any way delays or prevents inspection when the demand is made.
(1) Except as provided in Subsection (4), in the case of consumers, the taxes imposed on cigarettes by this part shall be paid in the manner and at the time prescribed in this section.
(2) The payment shall be accompanied by a form prescribed by the commission.
(3) The payment shall be paid on or before the last day of the month immediately following the month during which the cigarettes were purchased.
(4) A consumer is not required to pay a cigarette tax under this section:
(a) on cigarettes that are stamped pursuant to Section 59-14-205; or
(b) if the consumer is a tourist who imports cigarettes for the tourist's own use or consumption while in the state.
(5) A consumer shall maintain records necessary to determine the amount of tax the consumer is liable to pay under this part for a period of three years following the date the return required by this part was filed.
(6) In addition to the tax required by this part, a consumer shall pay a penalty as provided in Section 59-1-401, plus interest at the rate and in the manner prescribed in Section 59-1-402, if a consumer subject to this section fails to:
(a) pay the tax prescribed by this part;
(b) pay the tax on time; or
(c) file a return required by this part.
(7) An overpayment of a tax imposed by this part shall accrue interest at the rate and in the manner prescribed in Section 59-1-402.
(1) A person is guilty of a third degree felony if the person:
(a) knowingly, or with intent to defraud the state violates Subsection 59-14-211(4);
(b) knowingly or willfully removes or otherwise prepares any adhesive stamp with the intent to use or cause to be used after it has already been used;
(c) knowingly or willfully buys, sells, offers for sale, or gives away any washed or restored stamp to any person;
(d) knowingly or willfully uses or has in his possession any washed or restored stamp that has been removed from the package or container to which it had been previously affixed;
(e) reuses any stamp that has already been used to pay a tax provided in this chapter, in order to indicate that person's payment of any tax; or
(f) buys, sells, or offers for sale or has in his possession any counterfeit stamp.
(2) In addition to any other provision of law, the sale or possession for sale of counterfeit cigarettes, as they are defined in Section 59-14-102, by a manufacturer, importer, distributor, or retailer shall result:
(a) in the seizure by the commission or law enforcement agency of the manufacturer's, importer's, distributor's, or retailer's:
(i) counterfeit cigarettes; and
(ii) any personal property used in direct connection with the sale or possession for sale of counterfeit cigarettes; and
(b) the forfeiture of the seized assets to the state.
(1) Except as provided in Subsection (3), a person licensed under Section 59-14-202 may not barter, sell, exchange, or offer for sale cigarettes:
(a) in a package which:
(i) bears a statement, label, stamp, sticker, or other notice that the manufacturer did not intend the cigarettes to be sold, distributed, or used in the United States, including the following and similar notices:
(A) "For Export Only";
(B) "U.S. Tax-Exempt"; and
(C) "For Use Outside the U.S."; or
(ii) does not comply with federal law, including 15 U.S.C. 1333 of the Federal Cigarette Labeling and Advertising Act, regarding warning labels and other package information;
(b) imported to the United States in violation of 26 U.S.C. 5754;
(c) the licensee knows or has reason to know were not manufactured for sale, distribution, or use in the United States;
(d) for which a list of added ingredients has not been submitted to the federal Department of Health and Human Services pursuant to 15 U.S.C. 1335a of the Federal Cigarette Labeling and Advertising Act; or
(e) known by the licensee to be otherwise in violation of other related federal law.
(2) A person licensed under Section 59-14-202 may not barter, sell, exchange, or offer for sale cigarettes of a tobacco product manufacturer that is prohibited from selling cigarettes to consumers within the state under Subsection 59-22-203(3)(c).
(3) Subsection (1) does not apply to cigarettes sold or intended to be sold as duty-free merchandise by a duty-free sales enterprise in accordance with the provisions of 19 U.S.C. 1555(b) and any implementing regulations unless the cigarettes are brought back into the customs territory for resale within the customs territory.
(1) A person, regardless of whether the person is a licensee under Section 59-14-202, is guilty of a class B misdemeanor for each instance in which the person knowingly or with reason to know:
(a) sells or distributes cigarettes described under Section 59-14-210;
(b) acquires, holds, owns, possesses, transports, imports, or causes to be imported cigarettes:
(i) described under Section 59-14-210; and
(ii) intended for distribution or sale in the state;
(c) alters the package of any cigarettes prior to their sale or distribution to the ultimate consumer to remove, conceal, or obscure a notice, warning label, or other package information described in Subsection 59-14-210(1)(a); or
(d) affixes a stamp used to pay the tax imposed under Section 59-14-204, Part 3, Tobacco Products, or Part 4, Cigarettes and Tobacco Products, to a package or container of cigarettes:
(i) described under Section 59-14-210;
(ii) known by the person affixing the stamp to be altered as described under Subsection (1)(c); or
(iii) in violation of Section 59-14-604.
(2) If a person knowingly or with reason to know commits an act described in Subsections (1)(a) through (d), the commission shall:
(a) suspend or revoke a license issued to the person under Section 59-14-202; and
(b) regardless of whether the person is licensed under Section 59-14-202, impose a civil penalty in an amount not to exceed the greater of:
(i) 500% of the retail value of the cigarettes; or
(ii) $5,000.
(3) Any person whose commercial interests have been adversely affected as a result of a violation of this section may bring an action for injunctive relief, damages, or both.
(4)
(a) The sale or possession for sale of counterfeit cigarettes by a manufacturer, importer, distributor, or retailer is punishable by a court of law as follows:
(i) a first violation involving a total quantity of less than 100 cartons of cigarettes is punishable by a fine in an amount the greater of $500 or five times the retail value of the cigarettes;
(ii) a subsequent violation involving a total quantity of less than 100 cartons of cigarettes is punishable by:
(A) the greater of a fine of $2,000 or five times the retail value of the cigarettes;
(B) imprisonment not to exceed one year; or
(C) both imprisonment and a fine imposed by this Subsection (4)(a)(ii); and
(D) the revocation by the commission of the manufacturer, importer, distributor, or retailer license for a period of up to two years;
(iii) a first violation involving a total quantity of 100 cartons of cigarettes or more is punishable by:
(A) the greater of a fine of $2,500 or five times the retail value of the cigarettes;
(B) imprisonment not to exceed five years; or
(C) both the fine and imprisonment imposed by this Subsection (4)(a)(iii);
(iv) a second violation involving a quantity of 100 cartons of cigarettes or more is punishable by:
(A) the greater of a fine of $10,000 or five times the retail value of the cigarettes;
(B) imprisonment not to exceed five years; or
(C) both the fine and imprisonment imposed by this Subsection (4)(a)(iv); and
(D) the revocation by the commission of the manufacturer, importer, distributor, or retailer license for a period of up to five years; and
(v) a third and subsequent violation involving a quantity of 100 cartons of cigarettes or more is punishable by:
(A) the greater of a fine of $25,000 or five times the retail value of the cigarettes;
(B) imprisonment not to exceed five years; or
(C) both the fine and imprisonment imposed by this Subsection (4)(a)(v); and
(D) the revocation by the commission of the manufacturer, importer, distributor, or retailer license for a period of up to five years; and
(b) any counterfeit cigarette seized by the commission shall be destroyed.
(1) Except as provided under Subsection (2), any manufacturer, distributor, wholesaler, or retail dealer who under Section 59-14-205 affixes a stamp to an individual package or container of cigarettes imported to the United States shall provide to the commission the following as they pertain to the imported cigarettes:
(a) a copy of the importer's federal import permit;
(b) the customs form showing the tax information required by federal law;
(c) a statement signed under penalty of perjury by the manufacturer or importer that the manufacturer or importer has complied with:
(i) 15 U.S.C. 1333 of the Federal Cigarette Labeling and Advertising Act, regarding warning labels and other package information; and
(ii) 15 U.S.C. 1335a of the Federal Cigarette Labeling and Advertising Act, regarding reporting of added ingredients;
(d) the name of the person from whom the person affixing the stamp received the cigarettes;
(e) the name of the person to whom the person affixing the stamp delivered the cigarettes, unless the person receiving the cigarettes was the ultimate consumer;
(f) the quantity of cigarettes in the package or container; and
(g) the brand and brand style of the cigarettes.
(2) Subsection (1) does not apply to cigarettes sold or intended to be sold as duty-free merchandise by a duty-free sales enterprise in accordance with the provisions of 19 U.S.C. 1555(b) and any implementing regulations unless the cigarettes are brought back into the customs territory for resale within the customs territory.
(3) The information under Subsection (1) shall be provided on a quarterly basis on forms specified by the agency.
(4) A person who fails to comply with the reporting requirement or provides false or misleading information under Subsection (1):
(a) is guilty of a class B misdemeanor; and
(b) may be subject to:
(i) revocation or suspension of a license issued under Section 59-14-202; and
(ii) a civil penalty imposed by the commission in an amount not to exceed the greater of:
(A) 500% of the retail value of the cigarettes for which a report was not properly made; or
(B) $5,000.
(5) The information under Subsection (1) may be disclosed by the commission as provided under Subsection 59-1-403(4)(g).
(1) Any cigarettes in violation of the requirements of this chapter or of any state or federal law, including Sections 59-14-203, 59-14-205, 59-14-209, 59-14-211, Subsection 59-14-212(1), or Section 59-14-214 are contraband goods and may be seized without a warrant by the commission, its employees, or any peace officer of the state or its political subdivisions.
(2) Any goods seized pursuant to Subsection (1) shall be delivered to the commission and destroyed.
(3) Any cigarettes, as defined in Subsection 59-22-202(4), in violation of Section 59-14-604 are contraband goods and may be seized in accordance with Subsections (1) and (2).
(1) As used in this section, "nonparticipating manufacturer" means a tobacco product manufacturer, as defined in Section 59-22-202, that is not a participating manufacturer within the meaning of Subsection II(jj) of the Master Settlement Agreement, as defined in Section 59-22-202.
(2)
(a) There is levied an equity assessment, at the rate of 1.75 cents on each cigarette, for all cigarette packages of nonparticipating manufacturers to which a stamp is affixed as required under Section 59-14-205.
(b) The equity assessment imposed by this section is in addition to all other assessments, fees, and taxes levied under existing law.
(c) The equity assessment imposed by this section shall be paid by affixing a stamp in the manner and at the time described in Section 59-14-205.
(d) Except as otherwise provided in this section, the equity assessment shall be collected, paid, administered, and enforced in the same manner as the tax on cigarettes levied by Section 59-14-204.
(3) The purposes of this equity assessment are:
(a) to recover health care costs to the state imposed by nonparticipating manufacturers;
(b) to prevent nonparticipating manufacturers from undermining the state's policy of reducing underage smoking by offering cigarettes for sale substantially below the prices of cigarettes of other manufacturers;
(c) to protect funding, which is reduced as a result of the growth of nonparticipating manufacturer cigarette sales, for programs funded in whole or in part by payments to the state under the Master Settlement Agreement, as defined in Section 59-22-202;
(d) to recoup settlement-payment revenue lost to the state as a result of nonparticipating manufacturer cigarette sales; and
(e) to fund enforcement and administration of:
(i) Chapter 14, Part 6, Tobacco Manufacturer Stamping Enforcement Provisions;
(ii) Sections 59-22-201 through 59-22-203, related to nonparticipating manufacturers; and
(iii) the equity assessment imposed by this section.
(4) Each manufacturer, distributor, wholesaler, or retail dealer who under Section 59-14-205 affixes a stamp to a package of cigarettes, shall report quarterly to the commission for each place of business, the number and denominations of stamps affixed to individual packages of nonparticipating manufacturer cigarettes sold by the manufacturer, distributor, wholesaler, or retail dealer in the preceding quarter, including the manufacturer and brand family.
(5) A person required to file a report under this section who fails to timely file the report, or who provides false or misleading information on, or in relation to, the report:
(a) is guilty of a class B misdemeanor; and
(b) is subject to:
(i) revocation or suspension of a license under Part 2, Cigarettes; and
(ii) a civil penalty, imposed by the commission, in an amount that does not exceed the greater of:
(A) 500% of the retail value of the cigarettes for which an accurate report was not filed; or
(B) $5,000.
(1) In addition to the tax described in Section 59-14-204, there is imposed, beginning on July 1, 2026, an inventory tax on all cigarettes subject to the tax described in Section 59-14-204, upon the sale, use, storage, or distribution of those cigarettes in the state, as follows:
(a) the tax imposed in this section applies only to cigarettes sold, used, stored, or distributed in the state on or after July 1, 2026:
(i) that have a stamp that reflects that the tax paid on those cigarettes was paid at the tax rate imposed under Section 59-14-204 that was applicable on June 30, 2026; and
(ii) for which the tax imposed in this section has not been paid; and
(b) the tax imposed in this section is equal to the difference between:
(i) the tax imposed on those cigarettes under Section 59-14-204, beginning on July 1, 2026; and
(ii) the tax imposed on those cigarettes under Section 59-14-204 on or before June 30, 2026.
(2) Except as otherwise provided under this chapter, the tax imposed under this section shall be paid by any person who is the manufacturer, jobber, importer, distributor, wholesaler, or retailer.
(3) A person described in Subsection (2) shall remit the tax imposed in this section, on a return prescribed by the commission, on or before July 31, 2026.
(4) Failure of a person to comply with the requirements of this section subjects the person to the penalties and interest described in Sections 59-1-401 and 59-1-402.
(5) The commission may not waive the interest or penalties imposed on a person for failure to comply with the requirements of this section.
(6)
(a) Beginning on July 1, 2026, it is unlawful to affix a stamp to cigarettes that reflects payment of the tax imposed under Section 59-14-204 at the rate that was applicable on or before June 30, 2026.
(b) A person who violates Subsection (6)(a) may be required by the commission to pay as part of the tax, and in addition to any other penalty provided in this chapter, a penalty of $25 for each offense, to be assessed and collected by the commission in accordance with Chapter 1, Part 14, Assessment, Collections, and Refunds Act.
(c) A person who, on or after July 1, 2026, possesses tax stamps described in Subsection (6)(a) may return the stamps to the commission for a credit or refund.
(1) All manufacturers and distributors of all tobacco products, as defined in Section 59-14-102, who are responsible for the collection of tax on tobacco products under this chapter, and all retailers of all tobacco products:
(a) shall register with the commission;
(b) shall be licensed by the commission under Part 2, Cigarettes; and
(c) are subject to the requirements, procedures, and penalties described in Part 2, Cigarettes.
(2) A fee may not be charged for registration and licensing of manufacturers, jobbers, distributors, or retailers of tobacco products in addition to the cigarette license if such a license is required.
(3) The commission shall require any manufacturer, wholesaler, retailer, or any other person subject to this section, and who is responsible for the collection of tax on tobacco products under this chapter, to post a bond as a prerequisite to registering. The bond shall be in a form and an amount determined by the commission. If the bond is required under Section 59-14-201, the bond may be a combination, the minimum amount of which shall be $1,000.
(1) As used in this section:
(a) "Manufacturer's sales price" means the amount the manufacturer of a tobacco product charges after subtracting a discount.
(b) "Manufacturer's sales price" includes an original Utah destination freight charge, regardless of:
(i) whether the tobacco product is shipped f.o.b. origin or f.o.b. destination; or
(ii) who pays the original Utah destination freight charge.
(2) There is levied a tax upon the sale, use, or storage of tobacco products in the state.
(3)
(a) Subject to Subsection (3)(b), the tax levied under Subsection (2) shall be paid by the manufacturer, jobber, distributor, wholesaler, retailer, user, or consumer.
(b) The tax levied under Subsection (2) on a cigarette produced from a cigarette rolling machine shall be paid by the cigarette rolling machine operator.
(4) For tobacco products except for moist snuff, a little cigar, or a cigarette produced from a cigarette rolling machine, the amount of the tax under this section is .86 multiplied by the manufacturer's sales price.
(5)
(a) Subject to Subsection (5)(b), the tax under this section on moist snuff is imposed:
(i) at a rate of $1.83 per ounce; and
(ii) on the basis of the net weight of the moist snuff as listed by the manufacturer.
(b) If the net weight of moist snuff is in a quantity that is a fractional part of one ounce, a proportionate amount of the tax described in Subsection (5)(a) is imposed:
(i) on that fractional part of one ounce; and
(ii) in accordance with rules made by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(6)
(a) A little cigar is taxed at the same tax rates as a cigarette is taxed under Subsection 59-14-204(2).
(b)
(i) Subject to Subsection (6)(b)(ii), a cigarette produced from a cigarette rolling machine is taxed at the same tax rates as a cigarette is taxed under Subsection 59-14-204(2).
(ii) A tax under this Subsection (6)(b) is imposed on the date the cigarette is produced from the cigarette rolling machine.
(7)
(a) Moisture content of a tobacco product is determined at the time of packaging.
(b) A manufacturer who distributes a tobacco product in, or into, Utah, shall:
(i) for a period of three years after the last day on which the manufacturer distributes the tobacco product in, or into, Utah, keep valid scientific evidence of the moisture content of the tobacco product available for review by the commission, upon demand; and
(ii) provide a document, to the person described in Subsection (3) to whom the manufacturer distributes the tobacco product, that certifies the moisture content of the tobacco product, as verified by the scientific evidence described in Subsection (7)(b)(i).
(c) A manufacturer who fails to comply with the requirements of Subsection (7)(b) is liable for the nonpayment or underpayment of taxes on the tobacco product by a person who relies, in good faith, on the document described in Subsection (7)(b)(ii).
(d) A person described in Subsection (3) who is required to pay tax on a tobacco product:
(i) shall, for a period of three years after the last day on which the person pays the tax on the tobacco product, keep the document described in Subsection (7)(b)(ii) available for review by the commission, upon demand; and
(ii) is not liable for nonpayment or underpayment of taxes on the tobacco product due to the person's good faith reliance on the document described in Subsection (7)(b)(ii).
(1) The taxes imposed on all tobacco products shall be remitted to the commission together with quarterly returns as prescribed by the commission. These returns shall be due and payable to the commission quarterly on or before the last day of the month following each calendar quarterly period.
(2) Every manufacturer, wholesaler, retailer, or any other person selling tobacco products to persons other than ultimate consumers shall furnish with each sale an itemized invoice showing the seller's name and address, the name and address of the purchaser, the date of sale, the name and price of the product, and the discount, if any. A notation should be made that the price includes or does not include the tax. Copies of this invoice shall be retained by the seller and the purchaser and shall be available for inspection by the commission or its agent for a period of three years following the sale.
(3)
(a) A consumer who purchases untaxed products subject to the tax imposed by this part for use or other consumption, shall file with the commission, on forms prescribed by the commission, a statement showing the quantity and description of the products and pay the tax imposed by this part on those products.
(b) The statement described in Subsection (3)(a) shall be filed and the tax paid on or before the last day of the month immediately following the month during which the tobacco products were purchased.
(c) A consumer shall maintain records necessary to determine the amount of tax the consumer is liable to pay under this part for a period of three years following the date the return required by this part was filed.
(4) No report is required from tourists who import any products taxed by this part if the products are for their own use or consumption while in this state.
(5) In addition to the tax required by this part, a person shall pay a penalty as provided in Section 59-1-401, plus interest at the rate and in the manner prescribed in Section 59-1-402, if a person subject to this section fails to:
(a) pay the tax prescribed by this part;
(b) pay the tax on time; or
(c) file a return required by this part.
(6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in the manner prescribed in Section 59-1-402.
(1) In addition to the tax described in Section 59-14-302, there is imposed, beginning on July 1, 2010, an inventory tax on all tobacco products subject to the tax described in Section 59-14-302, upon the sale, use, or storage of those tobacco products in the state, as follows:
(a) the tax imposed in this section applies only to tobacco products sold, used, or stored in the state on or after July 1, 2010:
(i) for which the tax was paid at the tax rate imposed under Section 59-14-302 that was applicable on June 30, 2010; and
(ii) for which the tax imposed in this section has not been paid; and
(b) the tax imposed in this section is equal to the difference between:
(i) the tax imposed on those tobacco products under Section 59-14-302, beginning on July 1, 2010; and
(ii) the tax imposed on those tobacco products under Section 59-14-302 on or before June 30, 2010.
(2) The tax imposed in this section shall be paid by the manufacturer, jobber, distributor, wholesaler, or retailer.
(3) A person described in Subsection (2) shall remit the tax imposed in this section, in a return prescribed by the commission, on or before July 31, 2010.
(4) Failure of a person to comply with the requirements of this section subjects the person to the penalties and interest described in Sections 59-1-401 and 59-1-402.
(5) The commission may not waive the interest or penalties imposed on a person for failure to comply with the requirements of this section.
(1) A cigarette rolling machine operator may claim a credit or refund on a return filed under Section 59-14-303 as provided in this section if:
(a) a person pays a tax under this chapter on tobacco that the person sells or provides to the cigarette rolling machine operator; and
(b) the cigarette rolling machine operator pays a tax under Section 59-14-302 on the tobacco that the cigarette rolling machine operator:
(i) purchases or is provided with under Subsection (1)(a); and
(ii) uses to produce a cigarette from the cigarette rolling machine.
(2) The credit under this section is the lesser of:
(a) the tax paid under Subsection (1)(a); or
(b) the tax paid under Subsection (1)(b).
(3) A cigarette rolling machine operator that claims a credit or refund under this section shall:
(a) keep in a form prescribed by the commission books and records that are necessary to establish the tax paid under Subsection (1)(a) and the tax paid under Subsection (1)(b) for purposes of calculating the credit or refund the cigarette rolling machine operator may claim;
(b) keep the books and records described in Subsection (3)(a) for the time period during which an assessment may be made under Section 59-1-1408; and
(c) open the books and records for examination at any time by:
(i) the commission; or
(ii) an agent or representative the commission designates.
(1)
(a) When any cigarette or tobacco product taxed under this chapter is sold and shipped to a regular dealer in those articles in another state, the seller in this state shall be entitled to a refund of the actual amount of the taxes paid, upon condition that the seller in this state:
(i) is a licensed dealer;
(ii) signs an affidavit that the cigarette or tobacco product was so sold and shipped;
(iii) furnishes from the purchaser a written acknowledgment that the purchaser has received:
(A) the cigarette or tobacco product; and
(B) the amount of any stamps for which a refund is requested;
(iv) reports the name and address of the purchaser; and
(v) reports the name of the manufacturer of the cigarette, as defined under Section 59-22-202, reported under Section 59-14-407 if the cigarette is manufactured by a manufacturer required to place funds into escrow under Section 59-22-203.
(b) The taxes shall be refunded in the manner provided in Subsection 59-14-206(2) for unused stamps.
(2) Wholesalers or distributors in this state who export taxable cigarettes and tobacco products to a regular dealer in another state shall be exempt from the payment of any tax upon the sale of the articles upon furnishing such proof of the sale and exportation as the commission may require.
Every common carrier hauling, transporting, or shipping into or out of the state any taxable cigarettes or tobacco products from or to any other state or foreign country shall, when required by the commission, report in writing to the commission all those shipments or deliveries on blanks furnished by the commission. The report shall give the date, to whom the products were consigned and delivered, the quantity as shown by the bill of lading, and any other information the commission may require. The commission is expressly authorized to exact this information from common carriers.
All persons dealing in taxable cigarettes or tobacco products, who purchase or receive these commodities from outside the state, whether the product is delivered through a wholesaler or distributor in this state, or by drop shipment or otherwise, shall mail or deliver a duplicate invoice of all those purchases or receipts to the commission within 10 days after receipt of the commodities if requested by the commission. Failure to furnish duplicate invoices or receipts as requested is subject to the penalties provided under Section 59-1-401.
The commission shall administer and enforce the taxes imposed by this chapter and may:
(1) enter upon the premises of any taxpayer and examine or cause to be examined by any agent or representative designated by it for that purpose, any books, papers, records, or memoranda bearing upon the taxes; and
(2) secure any other information directly or indirectly concerned in the enforcement of this chapter.
The commission may call to its aid the attorney general, any city, county, or district attorney, or any peace officer to enforce any tax laws which it administers.
(1) As used in this section:
(a) "Cigarette" has the same meaning as defined in Section 59-22-202.
(b) "Tobacco product manufacturer" has the same meaning as defined in Section 59-22-202.
(2) Any manufacturer, distributor, wholesaler, or retail dealer who under Section 59-14-205 affixes a stamp to an individual package or container of cigarettes manufactured or sold by a tobacco product manufacturer required to place funds into escrow under Section 59-22-203 shall report quarterly to the commission:
(a) the quantity of cigarettes in the package or container; and
(b) the name of the manufacturer of the cigarettes.
(3) Any manufacturer, distributor, wholesaler, retail dealer, or other person who is required to pay the tax levied under Part 3, Tobacco Products, on a tobacco product defined as a cigarette under Section 59-22-202 and manufactured or sold by a tobacco product manufacturer required to place funds into escrow under Section 59-22-203 shall report quarterly to the commission:
(a) the quantity of cigarettes upon which the tax is levied; and
(b) the name of the manufacturer of each cigarette.
(4) The reports under Subsections (2) and (3) shall be made no later than quarterly on or before the last day of the month following each calendar quarterly period pursuant to rules established by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(5) A person required to file a report under this section who fails to timely file the report, or who provides false or misleading information on, or in relation to, the report:
(a) is guilty of a class B misdemeanor; and
(b) is subject to:
(i) revocation or suspension of a license under Part 2, Cigarettes, and Part 3, Tobacco Products; and
(ii) a civil penalty, imposed by the commission, in an amount that does not exceed the greater of:
(A) 500% of the retail value of the cigarettes and tobacco products for which an accurate report was not filed; or
(B) $5,000.
(1) As used in this section, "licensed person" means a person:
(a) licensed by the commission in accordance with Section 59-14-202; and
(b) that is a:
(i) distributor;
(ii) jobber;
(iii) manufacturer;
(iv) retailer;
(v) wholesaler; or
(vi) a person similar to a person described in Subsections (1)(b)(i) through (v) as determined by the commission by rule.
(2) A licensed person may apply to the commission for a credit or refund as provided in Subsection (3) if:
(a) on or after July 1, 2005, the following are removed from retail sale or from storage:
(i) a cigarette; or
(ii) a tobacco product;
(b) before a cigarette or tobacco product is removed from retail sale or from storage in accordance with Subsection (2)(a), the licensed person remits a tax:
(i) to the commission;
(ii) on the:
(A) cigarette; or
(B) tobacco product; and
(iii) in accordance with:
(A) Part 2, Cigarettes; or
(B) Part 3, Tobacco Products; and
(c) the licensed person verifies to the commission that the cigarette or tobacco product described in Subsection (2)(a) has been:
(i) returned to the manufacturer of the cigarette or tobacco product; or
(ii) destroyed.
(3) The amount of the credit or refund described in Subsection (2) is equal to:
(a) for a cigarette removed from retail sale or from storage, the amount of tax the licensed person paid on the cigarette in accordance with Part 2, Cigarettes; or
(b) for a tobacco product removed from retail sale or from storage, the amount of tax the licensed person paid on the tobacco product in accordance with Part 3, Tobacco Products.
(4)
(a) The commission shall grant a credit or refund under this section if the commission determines that a licensed person meets the requirements of Subsection (2).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules establishing procedures and requirements for a licensed person to verify to the commission that a cigarette or tobacco product described in Subsection (2)(a) has been:
(i) returned to the manufacturer of the cigarette or tobacco product; or
(ii) destroyed.
(5)
(a) If the commission makes a credit or refund under this section within a 90-day period after the day on which a licensed person submits an application to the commission for the credit or refund, interest may not be added to the amount of credit or refund.
(b) If the commission makes a credit or refund under this section more than 90 days after the day on which a licensed person submits an application to the commission for the credit or refund, interest shall be added to the amount of credit or refund as provided in Section 59-1-402.
(6)
(a) The commission may create a form for:
(i) a licensed person to:
(A) submit a claim for a credit or refund; or
(B) verify to the commission that a cigarette or tobacco product has been:
(I) returned to the manufacturer of the cigarette or tobacco product; or
(II) destroyed; or
(ii) processing a claim for a credit or refund for payment.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining a person similar to a person described in Subsections (1)(b)(i) through (v).
(1)
(a) Except as provided in Subsections (2) through (5), the commission shall assess a tax under this chapter within three years after a taxpayer files a return.
(b) Except as provided in Subsections (2) through (5), if the commission does not assess a tax under this chapter within the three-year period provided in Subsection (1)(a), the commission may not commence a proceeding to collect the tax.
(2) The commission may assess a tax at any time if a taxpayer:
(a) files a false or fraudulent return with intent to evade; or
(b) does not file a return.
(3) The commission may extend the period to make an assessment or to commence a proceeding to collect the tax under this chapter if:
(a) the three-year period under Subsection (1) has not expired; and
(b) the commission and the taxpayer sign a written agreement:
(i) authorizing the extension; and
(ii) providing for the length of the extension.
(4) If the commission delays an audit at the request of a taxpayer, the commission may make an assessment as provided in Subsection (5) if:
(a) the taxpayer subsequently refuses to agree to an extension request by the commission; and
(b) the three-year period under Subsection (1) expires before the commission completes the audit.
(5) An assessment under Subsection (4) shall be:
(a) for the time period for which the commission could not make an assessment because of the expiration of the three-year period; and
(b) in an amount equal to the difference between:
(i) the commission's estimate of the amount of tax the taxpayer would have been assessed for the time period described in Subsection (5)(a); and
(ii) the amount of tax the taxpayer actually paid for the time period described in Subsection (5)(a).
(6)
(a) Except as provided in Subsection (6)(b), the commission may not make a credit or refund unless the taxpayer files a claim with the commission within three years of the date of overpayment.
(b) The commission shall extend the period for a taxpayer to file a claim under Subsection (6)(a) if:
(i) the three-year period under Subsection (6)(a) has not expired; and
(ii) the commission and the taxpayer sign a written agreement:
(A) authorizing the extension; and
(B) providing for the length of the extension.
(1) All smokeless tobacco products sold within the state shall be affixed with an adhesive warning label which states: "Use of this product may cause oral cancer and other mouth disorders and is addictive." As used in this part, "smokeless tobacco products" means chewing tobacco and snuff.
(2) The distributor, wholesaler, or manufacturer of smokeless tobacco products shall provide and pay for warning labels in accordance with specifications adopted by the Department of Health.
(1) For purposes of this section, "smokeless tobacco" means any finely cut, ground, powdered, or leaf tobacco that is intended to be placed in an oral cavity or nasal passage.
(2)
(a) An advertisement for smokeless tobacco placed in a newspaper, magazine, or periodical published in this state must bear a warning that states: "Use of smokeless tobacco may cause oral cancer and other mouth disorders and is addictive."
(b) The warning described in Subsection (2)(a) shall be placed in a conspicuous location and in conspicuous and legible type, in contrast with the typography, layout, and color of all other printed material in the advertisement.
Warning labels shall be securely affixed to each individual package of smokeless tobacco products within 72 hours after receipt of the products by any wholesaler, distributor, or retailer within this state. All smokeless tobacco products shall be affixed with warning labels before sale within the state. If any smokeless tobacco products are manufactured within the state, they shall be affixed with warning labels by the manufacturer when sold.
The commission may adopt rules which permit smokeless tobacco products without affixed warning labels to remain in the hands of a wholesaler or distributor until the original case or crate is broken, unpacked, or sold. The commission may permit a manufacturer, wholesaler, or distributor to sell and export smokeless tobacco products to a regular dealer in smokeless tobacco products outside the state, without affixing the warning labels required by Section 59-14-501.
It is the intent and purpose of this part to require all manufacturers, jobbers, wholesalers, and distributors to securely affix the warning labels required by Section 59-14-501. When warning labels are affixed as required by this part, no additional warning label is required, regardless of how often the articles are sold or resold in the state.
Each article, package, or container not having a warning label affixed, as required by Section 59-14-501, is considered a separate offense. The presence of any article, package, or container of smokeless tobacco products in the place of business of any person required by this chapter to affix warning labels is prima facie evidence that those articles, packages, or containers are intended for sale and are subject to this part.
Any smokeless tobacco products without affixed warning labels as required by this part, which have been in the possession of any wholesaler, distributor, or retailer in this state for 72 hours or longer, or which have been sold by the wholesaler, distributor, or retailer, are contraband goods. Those contraband goods may be seized by the commission or its employees, or by any peace officer of the state or its political subdivisions, without a warrant. The contraband goods shall be destroyed.
A violation of any of the following sections is a class B misdemeanor:
(1) Section 59-14-501, Warning labels required;
(2) Section 59-14-502, Requirements for placement of warning labels;
(3) Section 59-14-504, Responsibility for placement of warning labels; or
(4) Section 59-14-509, Restrictions on mail order or Internet sales.
In the event federal legislation requiring warning labels on smokeless tobacco products is enacted, the requirements of that legislation shall supersede the requirements of Sections 59-14-501 through 59-14-507.
(1) For purposes of this section:
(a) "Distributor" means a person, wherever residing or located, who:
(i) is licensed in this state to purchase non-taxed tobacco products; and
(ii) stores, sells, or otherwise disposes of tobacco products.
(b) "Licensed person" is as defined in Subsection 59-14-409(1).
(c) "Order or purchase" includes:
(i) by mail or delivery service;
(ii) through the Internet or computer network;
(iii) by telephone; or
(iv) through some other electronic method.
(d) "Retailer" means any person who sells tobacco products to consumers for personal consumption.
(2) A person, distributor, manufacturer, or retailer shall not:
(a) cause tobacco products or cigarettes as defined in Section 59-22-202 to be ordered or purchased by anyone other than a licensed person; or
(b) knowingly provide substantial assistance to a person who violates this section.
(3)
(a) Each order or purchase of a tobacco product or cigarettes as defined in Section 59-22-202 in violation of Subsection (2) shall constitute a separate violation under this section.
(b) In addition to the penalties in Subsection (4), a person who violates this section is subject to:
(i) a civil penalty in an amount not to exceed $5,000 for each violation of this section;
(ii) an injunction to restrain a threatened or actual violation of this section; and
(iii) recovery by the state for:
(A) the costs of investigation;
(B) the cost of expert witness fees;
(C) the cost of the action; and
(D) reasonable attorney's fees.
(4) If a person knowingly violates this section, the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to the state treasurer for deposit in the General Fund.
As used in this part:
(1) "Brand family" means:
(a) all styles of cigarettes sold under the same trademark and differentiated from one another by means of additional modifiers or descriptors, including: "menthol," "lights," "kings," and "100s"; and
(b) any brand name, alone or in conjunction with any other word, trademark, logo, symbol, motto, selling message, recognizable pattern of colors, or any other indicia of product identification identical or similar to, or identifiable with, a previously known brand of cigarettes.
(2) "Cigarette" means the same as defined in Section 59-22-202.
(3) "Distributor" means a person, wherever residing or located, who purchases nontax-paid cigarettes and stores, sells, or otherwise disposes of the cigarettes.
(4) "Master Settlement Agreement" means the same as defined in Section 59-22-202.
(5) "Nonparticipating manufacturer" means any tobacco product manufacturer that is not a participating manufacturer.
(6) "Participating manufacturer" has the meaning given that term in Section II(jj) of the Master Settlement Agreement and all amendments thereto.
(7) "Stamping agent" means a person that is authorized to affix tax stamps to packages or other containers of cigarettes under Section 59-14-205 or any person that is required to pay the tobacco tax imposed under Section 59-14-302.
(8) "Qualified Escrow Fund" means the same as defined in Section 59-22-202.
(9)
(a) Except as provided in Subsection (9)(b), "tobacco product manufacturer" means the same as defined in Section 59-22-202.
(b) "Tobacco product manufacturer" does not include a cigarette rolling machine operator as defined in Section 59-14-102.
(10) "Units sold" means the same as defined in Section 59-22-202.
(1) Every tobacco product manufacturer whose cigarettes are sold in this state, whether directly or through a distributor, retailer, or similar intermediary or intermediaries, shall execute and deliver on a form prescribed by the commission a certification to the attorney general and the commission, no later than April 30th each year, certifying that, as of the date of the certification, the tobacco product manufacturer is either:
(a) a participating manufacturer; or
(b) in full compliance with Sections 59-14-214 and 59-22-203.
(2) A participating manufacturer shall:
(a) include in its certification a list of its brand families; and
(b) update the list 30 calendar days prior to any addition to, or modification of, its brand families by executing and delivering a supplemental certification to the commission and the attorney general.
(3)
(a) A nonparticipating manufacturer shall include in its certification:
(i) a list of all of its brand families and the number of units for each brand family that were sold in the state during the preceding calendar year;
(ii) a list of all of its brand families that have been sold in the state at any time during the current calendar year;
(iii) indicating, by an asterisk, any brand family sold in the state by the manufacturer during the preceding calendar year that is no longer being sold in the state by the manufacturer as of the date of the certification;
(iv) identifying by name and address, any other manufacturer of the brand families sold in the state, by the manufacturer submitting the certification, during the preceding or current calendar year;
(v) that the nonparticipating manufacturer is registered to do business in the state, or has appointed a resident agent for service of process and provided notice of the registered agent as required by Section 59-14-605;
(vi) that the nonparticipating manufacturer has:
(A) established and continues to maintain a qualified escrow fund; and
(B) has executed a qualified escrow agreement which:
(I) has been reviewed and approved by the commission; and
(II) governs the qualified escrow fund;
(vii) that the nonparticipating manufacturer is in full compliance with the Model Tobacco Settlement Act and this part, and any regulations promulgated pursuant to the Model Tobacco Settlement Act or this part; and
(viii) the following information concerning the qualified escrow fund:
(A) the name, address, and telephone number of the financial institution where the nonparticipating manufacturer established the qualified escrow fund required by Section 59-22-203;
(B) the account number of the qualified escrow fund and any subaccount number for the state;
(C) the amount the nonparticipating manufacturer placed in the fund for cigarettes sold in the state during the preceding calendar year;
(D) the date and amount of each deposit into the fund, and evidence or verification as required by the commission by administrative rule adopted in accordance with Section 59-14-607 as necessary to confirm the information required by Subsection (3)(a); and
(E) the amount and date of any withdrawal or transfer of funds the nonparticipating manufacturer made at any time from the fund, or from any other qualified escrow fund into which it ever made escrow payments pursuant to Section 59-22-203.
(b) The nonparticipating manufacturer shall update the list required by this Subsection (3) at least 30 calendar days prior to any addition to, or modification of, its brand families, by executing and delivering a supplemental certification to the commission and the attorney general.
(c) A tobacco product manufacturer subject to this Subsection (3) shall:
(i) deposit the escrow payments required by Sections 59-14-214 and 59-22-203 on a quarterly basis during the year in which the sale occurred; and
(ii) verify the quarterly deposits to the commission in accordance with Subsection (3)(a)(viii)(D).
(4) A tobacco product manufacturer may not include a brand family in the certification required by this section unless:
(a) in the case of a participating manufacturer, the participating manufacturer affirms that the brand family will be considered its cigarette for purposes of:
(i) calculating its payments under the Master Settlement Agreement for the relevant year; and
(ii) calculating the volume and shares determined pursuant to the Master Settlement Agreement; and
(b) in the case of a nonparticipating manufacturer, the nonparticipating manufacturer affirms that the brand family will be considered its cigarette for purposes of Section 59-22-203.
(5) Nothing in this section shall be construed as limiting or otherwise affecting the state's right to maintain that a brand family constitutes cigarettes of a different tobacco product manufacturer for purposes of calculating payments under the Master Settlement Agreement or for purposes of Section 59-22-203.
(6) Tobacco product manufacturers shall maintain all invoices and documentation of sales and other information relied upon for the certification required by this section for a period of five years, unless otherwise required by law to maintain them for a greater period of time.
(1) No later than August 30, 2005, the commission shall develop and publish on its website a directory listing:
(a) all tobacco product manufacturers that have provided current and accurate certifications conforming to the requirements of Section 59-14-602; and
(b) all brand families that are listed in the certifications required by Section 59-14-602, except the commission shall not include or retain in the directory:
(i) the name or brand families of any nonparticipating manufacturer:
(A) who failed to provide the certification required by Section 59-14-602; or
(B) whose certification is determined by the commission to be out of compliance with Section 59-14-602, unless the commission has determined that the violation has been cured to the satisfaction of the commission; or
(ii) a tobacco product manufacturer or brand family of a nonparticipating manufacturer for which the commission determines:
(A) any escrow payment required by Section 59-22-203 for any period, for any brand family, whether or not listed by the nonparticipating manufacturer, has not been fully paid into a qualified escrow fund governed by a qualified escrow agreement; or
(B) any outstanding final judgment, including interest thereon, for a violation of the Model Tobacco Settlement Act has not been fully satisfied for the brand family or the tobacco product manufacturer.
(2) The commission shall update the directory required by this section as necessary:
(a) to correct mistakes;
(b) to add or remove a tobacco product manufacturer or brand family; and
(c) to keep the directory in conformity with the requirements of this part.
(3)
(a) Every stamping agent shall provide to the commission a current and valid electronic mail address for the purpose of receiving notifications from the commission concerning information required by this section and this part.
(b) The stamping agent shall update the electronic mail address as necessary.
(4) A determination by the commission to not include or to remove a brand family or tobacco product manufacturer from the directory required by this section is subject to review in the manner prescribed by Title 63G, Chapter 4, Administrative Procedures Act.
(1) It is unlawful for any person:
(a) to affix a stamp to a package or other container of cigarettes of a tobacco product manufacturer or brand family not included in the directory required by Section 59-14-603; or
(b) to sell, offer, or possess for sale, in this state, or import for personal consumption in this state, cigarettes of a tobacco product manufacturer or brand family not included in the directory required by Section 59-14-603.
(2)
(a) It is unlawful for any person to sell or distribute cigarettes, or acquire, hold, own, possess, transport, import, or cause to be imported cigarettes, that the person knows or should know are intended for distribution or sale in the state in violation of Section 59-14-603.
(b) A violation of this Subsection (2) is a class B misdemeanor.
(1)
(a) A nonresident or foreign nonparticipating manufacturer that has not registered to do business in the state as a foreign corporation or business entity shall, as a condition precedent to having its brand families included or retained in the directory required by Section 59-14-603, appoint and continually engage without interruption the services of an agent in this state.
(b) The agent appointed under Subsection (1)(a) shall:
(i) act as agent for the service of process for any action or proceeding against the nonresident or foreign nonparticipating manufacturer concerning or arising out of the enforcement of this part or the Model Tobacco Settlement Act; and
(ii) may be served in any manner authorized by law.
(c) Service under this Subsection (1) shall constitute legal and valid service of process on the nonparticipating manufacturer.
(2) The nonparticipating manufacturer shall provide the name, address, phone number, and proof of the appointment and availability of the agent appointed pursuant to this section to the attorney general and to the commission as established by administrative rule in accordance with Section 59-14-607.
(3)
(a) If the nonparticipating manufacturer terminates the authority of an agent appointed under the provisions of this section, the nonparticipating manufacturer shall:
(i) provide notice to the attorney general and to the commission 30 calendar days prior to termination of the authority of an agent; and
(ii) provide proof to the satisfaction of the commission of the appointment of a new agent no less than five calendar days prior to the termination of the existing agent.
(b) If an agent terminates its agency appointment with the nonparticipating manufacturer, the nonparticipating manufacturer shall notify the attorney general and the commission of the termination within five calendar days of the manufacturer's knowledge of the termination, and shall include proof to the commission of the appointment of a new agent as required by commission rule adopted under Section 59-14-607.
(4)
(a) If a nonparticipating manufacturer whose cigarettes are sold in this state does not appoint an agent as required by this section, the Department of Commerce shall serve as the agent for service of process.
(b) A nonparticipating manufacturer who does not appoint an agent as required by this section, and who has the Department of Commerce appointed as the agent for service of process under the provision of Subsection (4)(a), does not satisfy the condition precedent required by Subsection (1)(a), and may not be included in the directory created in Section 59-14-603.
(1) A stamping agent shall submit the following information to the commission not later than 30 calendar days after the end of each calendar quarter, or more frequently if required by the commission by administrative rule in accordance with Section 59-14-607:
(a) a list by brand family of the total number of cigarettes for which the stamping agent affixed stamps during the reporting period;
(b) the equivalent stick count for roll your own tobacco, for which the stamping agent paid the tobacco product tax during the reporting period;
(c) the equivalent total number of cigarettes or stick count for which the stamping agent paid taxes for the reporting period; and
(d) any other information the commission determines is necessary to enforce this part.
(2) The stamping agent shall maintain, and make available to the commission, all invoices and documentation of sales of all nonparticipating manufacturer cigarettes and any other information relied upon in reporting to the commission for a period of five years.
(3) The commission may share information received under this part with federal, state, or local agencies as necessary for enforcement of this part, the Model Tobacco Settlement Act, or corresponding laws of other states.
(4) For purposes of complying with the Model Tobacco Settlement Act, the commission may require, at any time, from the nonparticipating manufacturer and from the financial institution in which the manufacturer has established a qualified escrow fund, proof of:
(a) the amount of money in the fund, exclusive of interest;
(b) the amount and date of each deposit to the fund; and
(c) the amount and date of each withdrawal from the fund.
(5) In addition to the information required to be submitted pursuant to Sections 59-14-214 and 59-22-203 and this part, the commission may require by administrative rule adopted pursuant to Section 59-14-607, a stamping agent or tobacco product manufacturer to submit any additional information including samples of the packaging or labeling of each brand family, as is necessary to enable the commission to determine whether a tobacco product manufacturer is in compliance with this part.
(6) No person shall be issued a license or granted a renewal of a license to act as a stamping agent unless the person has certified in writing, under penalty of perjury, that the person will comply fully with this part.
(7) A person required to file a report under this section who fails to timely file the report, or who provides false or misleading information on, or in relation to, the report:
(a) is guilty of a class B misdemeanor; and
(b) is subject to:
(i) revocation or suspension of a license under Part 2, Cigarettes; and
(ii) a civil penalty, imposed by the commission, in an amount that does not exceed the greater of:
(A) 500% of the retail value of the cigarettes for which an accurate report was not filed; or
(B) $5,000.
(1) The commission may promulgate administrative rules as necessary to enforce the provisions of this part.
(2) The rules authorized by this part include rules:
(a) to verify information concerning the escrow deposits required by Section 59-14-602;
(b) regarding the production of information sufficient to enable the commission to determine the adequacy of the amount of the installment deposit required by this part;
(c) regarding the certification required by Section 59-14-602;
(d) necessary to receive and publish information for the directory required by Section 59-14-603;
(e) regarding the notification requirements for the appointment of an agent for service of process in Section 59-14-605;
(f) for reporting by stamping agents or manufacturers of tobacco products under Section 59-14-606; and
(g) as authorized by this part or the Master Settlement Agreement.
(1)
(a) The commission may revoke or suspend the license of a stamping agent in the manner provided in Section 59-14-202 if the commission determines that the stamping agent has violated Sections 59-14-604, 59-14-606, or other rule adopted under the provisions of this part.
(b) The penalty imposed under Subsection (1)(a) is in addition to or in lieu of any other civil or criminal remedy provided by law.
(c) Each stamp affixed and each sale or offer to sell cigarettes in violation of Section 59-14-604, or other rule adopted under the provisions of this part, shall constitute a separate violation.
(d) For each violation under Subsection (1)(c), the commissioner may, in addition to the penalty imposed by Subsection (1)(a), impose a civil penalty in an amount not to exceed the greater of 500% of the retail value of the cigarettes or $5,000.
(2)
(a) Any cigarettes that have been sold, offered for sale, or possessed for sale, in this state, or imported for personal consumption in this state, in violation of Section 59-14-604 are:
(i) contraband under Section 59-14-213; and
(ii) subject to seizure and forfeiture as provided in Section 59-14-213.
(b) Cigarettes seized and forfeited under the provisions of this section shall be destroyed and not resold.
(3)
(a) The commission may seek an injunction to:
(i) restrain a threatened or actual violation of this part by a stamping agent; or
(ii) to compel the stamping agent to comply with this part.
(b) In any action brought pursuant to this section, the state is entitled to recover the costs of investigation, costs of the action, and reasonable attorney fees.
(1) The first report of the stamping agents required by this part are due by June 15, 2005. The first certifications of the tobacco product manufacturers required by this part are due June 30, 2005. The directory required by this part shall be published by the commission no later than August 30, 2005.
(2) In any action brought by the state to enforce this part, the state shall be entitled to recover the costs of investigation, expert witness fees, costs of the action, and reasonable attorney fees.
(3)
(a) If a court determines that a person has violated this part, the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to the State Treasurer for deposit in the Tobacco Control Restricted Account which is created in Section 59-14-610.
(b) Unless otherwise expressly provided, the remedies or penalties provided by this part are cumulative to each other and to the remedies or penalties available under all other laws of this state.
(1) There is created within the General Fund a restricted account known as the Tobacco Control Restricted Account.
(2) The Tobacco Control Restricted Account consists of:
(a) all profits, gains, gross receipts, or other benefits ordered to be disgorged by the court under the provisions of Subsection 59-14-609(3); and
(b) interest on account money.
(3) Upon appropriations by the Legislature, money from the account shall be used for the enforcement of this part and the Master Settlement Agreement.
If a court of competent jurisdiction finds that the provisions of this part and of the Model Tobacco Settlement Act conflict and cannot be harmonized, then the provisions of the Model Tobacco Settlement Act shall control. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this part causes the Model Tobacco Settlement Act to no longer constitute a qualifying or model statute, as those terms are defined in the Master Settlement Agreement, then that portion of this part shall not be valid. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this part is for any reason held to be invalid, unlawful, or unconstitutional, such decision shall not affect the validity of the remaining portions of this part.
As used in this part:
(1) "Brand family" is as defined in Section 59-14-601.
(2) "Tobacco product manufacturer" is as defined in Section 59-14-601.
(1) A cigarette rolling machine operator may not perform the following without first obtaining certification from the commission as provided in this part:
(a) locate a cigarette rolling machine within this state;
(b) make or offer to make a cigarette rolling machine available for use within this state; or
(c) offer a cigarette for sale within this state if the cigarette is produced by:
(i) the cigarette rolling machine operator; or
(ii) another person at the location of the cigarette rolling machine operator's cigarette rolling machine.
(2) A cigarette rolling machine operator shall renew its certification as provided in this section.
(3) The commission shall prescribe a form for certifying a cigarette rolling machine operator under this part.
(4)
(a) A cigarette rolling machine operator shall apply to the commission for certification before the cigarette rolling machine operator performs an act described in Subsection (1) within the state for the first time.
(b) A cigarette rolling machine operator shall apply to the commission for a renewal of certification on or before the earlier of:
(i) December 31 of each year; or
(ii) the day on which there is a change in any of the information the cigarette rolling machine operator provides on the form described in Subsection (3).
(5) To obtain certification or renewal of certification under this section from the commission, a cigarette rolling machine operator shall:
(a) identify:
(i) the cigarette rolling machine operator's name and address;
(ii) the location, make, and brand of the cigarette rolling machine operator's cigarette rolling machine; and
(iii) each person from whom the cigarette rolling machine operator will purchase or be provided tobacco products that the cigarette rolling machine operator will use to produce cigarettes; and
(b) certify, under penalty of perjury, that:
(i) the tobacco to be used in the cigarette rolling machine operator's cigarette rolling machine, regardless of the tobacco's label or description, shall be only of a:
(A) brand family listed on the commission's directory listing required by Section 59-14-603; and
(B) tobacco product manufacturer listed on the commission's directory listing required by Section 59-14-603;
(ii) the cigarette rolling machine operator shall prohibit another person who uses the cigarette rolling machine operator's cigarette rolling machine from using tobacco, a wrapper, or a cover except for tobacco, a wrapper, or a cover purchased by or provided to the cigarette rolling machine operator from a person identified in accordance with Subsection (5)(a)(iii);
(iii) the cigarette rolling machine operator holds a current license issued in accordance with this chapter;
(iv) the cigarettes produced from the cigarette rolling machine shall comply with Title 53, Chapter 7, Part 4, The Reduced Cigarette Ignition Propensity and Firefighter Protection Act;
(v) the cigarette rolling machine shall be located in a separate and defined area where the cigarette rolling machine operator ensures that an individual younger than 21 years old may not be:
(A) present at any time; or
(B) permitted to enter at any time; and
(vi) the cigarette rolling machine operator may not barter, distribute, exchange, offer, or sell cigarettes produced from a cigarette rolling machine in a quantity of less than 20 cigarettes per retail transaction.
(6) If the commission determines that a cigarette rolling machine operator meets the requirements for certification or renewal of certification under this section, the commission shall grant the certification or renewal of certification.
(7) If the commission determines that a cigarette rolling machine operator does not meet the requirements for certification or renewal of certification under this section, the commission shall:
(a) deny the certification or renewal of certification; and
(b) provide the cigarette rolling machine operator the grounds for denial of the certification or renewal of certification in writing.
(1) A cigarette rolling machine operator shall each quarter report to the commission:
(a) the number of cigarettes, by weight, produced from each of the cigarette rolling machine operator's cigarette rolling machines for the previous calendar quarter;
(b) the brand family and the tobacco product manufacturer of the brand family of the tobacco the cigarette rolling machine operator purchased or was provided for use by the cigarette rolling machine operator's cigarette rolling machine for the previous calendar quarter;
(c) the ounces of tobacco the cigarette rolling machine operator purchased or was provided for use by the cigarette rolling machine operator's cigarette rolling machine for the previous calendar quarter; and
(d) each person from whom the cigarette rolling machine operator purchased or was provided tobacco for use by the cigarette rolling machine operator's cigarette rolling machine for the previous calendar quarter.
(2) A cigarette rolling machine operator shall file the report required by this section on the last day of the month immediately following the last day of the previous calendar quarter.
(3) The commission shall prescribe the form for the report under this section.
(1) A cigarette rolling machine operator shall maintain a secure meter on each cigarette rolling machine that the cigarette rolling machine operator controls, leases, owns, possesses, or otherwise has available for use.
(2) The secure meter described in Subsection (1):
(a) shall maintain an accurate count of the cigarettes, by weight, dispensed by the cigarette rolling machine;
(b) may not be accessed except to take a reading of the secure meter; and
(c) may not be reset or otherwise altered.
(1) In addition to the penalties provided under this title, the commission shall revoke the certification of a cigarette rolling machine operator if the cigarette rolling machine operator violates this part.
(2) The following are subject to review in accordance with Title 63G, Chapter 4, Administrative Procedures Act:
(a) the commission's denial of certification or denial of renewal of certification under Section 59-14-703; or
(b) the commission's revocation of certification under this section.
(3) If the commission revokes the certification of a cigarette rolling machine operator:
(a) the commission shall send written notice of the revocation to the cigarette rolling machine operator; and
(b) the cigarette rolling machine operator:
(i) may not use the cigarette rolling machine or make or offer to make the cigarette rolling machine available for use; and
(ii) no later than 10 days after the date the commission sends the written notice described in Subsection (3)(a), shall remove the cigarette rolling machine from the cigarette rolling machine operator's premises.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to verify information for purposes of granting or denying a certification or renewal of certification under this part.
As used in this part:
(1) "Licensee" means a person that holds a valid license to sell an electronic cigarette product or a nicotine product.
(2)
(a) "Manufacturer's sales price" means the amount that the manufacturer of an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device charges after subtracting a discount.
(b) "Manufacturer's sales price" includes an original Utah destination freight charge, regardless of:
(i) whether the electronic cigarette substance, prefilled electronic cigarette, alternative nicotine product, nontherapeutic nicotine device substance, or prefilled nontherapeutic nicotine device is shipped f.o.b. origin or f.o.b. destination; or
(ii) who pays the original Utah destination freight charge.
(3) "Non-nicotine inhalation product" means the same as that term is defined in Section 76-9-1101.
(4) "Non-nicotine inhalation substance" means the same as that term is defined in Section 76-9-1101.
(5) "Premarket authorized or pending electronic cigarette product" means the same as that term is defined in Section 76-9-1101.
(1) A person may not sell, offer to sell, or distribute an electronic cigarette product or a nicotine product in this state without first:
(a) except as provided in Subsection (2), obtaining a license from the commission under this section to sell an electronic cigarette product or a nicotine product; and
(b) complying with any bonding requirement described in Subsection (5).
(2) A person that holds a valid license to sell cigarettes under Section 59-14-201 or a person that holds a valid license to sell tobacco products under Section 59-14-301 may, without obtaining a separate license in accordance with this section, sell, offer to sell, or distribute an electronic cigarette product or a nicotine product in this state.
(3) The commission shall issue a license to sell an electronic cigarette product or a nicotine product to a person that submits an application, on a form created by the commission, that includes:
(a) the person's name;
(b) the address of the facility where the person will sell an electronic cigarette product or a nicotine product; and
(c) any other information the commission requires to implement this chapter.
(4) A license described in Subsection (3) is:
(a) valid only at one fixed business address;
(b) valid for three years;
(c) valid only for a physical location; and
(d) renewable if a licensee meets the criteria for licensing described in Subsection (3).
(5)
(a) The commission shall require a manufacturer, jobber, distributor, wholesaler, or retailer that is responsible under this part for the collection of tax on an electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine product to post a bond.
(b) The manufacturer, jobber, distributor, wholesaler, or retailer may post the bond required by Subsection (5)(a) in combination with any bond required by Section 59-14-201 or 59-14-301.
(c) Subject to Subsection (5)(d), the commission shall determine the form and amount of the bond.
(d) The minimum amount of the bond shall be:
(i) except as provided in Subsection (5)(d)(ii) or (iii), $500;
(ii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond required by Subsection (5)(a) in combination with a bond required by either Section 59-14-201 or 59-14-301, $1,000; or
(iii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond required by Subsection (5)(a) in combination with a bond required by both Sections 59-14-201 and 59-14-301, $1,500.
(6) The commission may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish the additional information described in Subsection (3)(c) that a person shall provide in the application described in Subsection (3).
(7) It is a class B misdemeanor for a person to violate Subsection (1).
(8) The commission may not charge a fee for a license under this section.
(1)
(a) The commission shall maintain a list that includes the identity of each person licensed under this part to distribute an electronic cigarette product or a nicotine product.
(b) The list shall be:
(i) published on the commission website; and
(ii) updated by the commission at least once per quarter.
(2) A retailer may obtain an electronic cigarette product or a nicotine product only from a licensed distributor identified on the list described in Subsection (1).
(3)
(a) The commission may impose a penalty against a retailer that purchases an electronic cigarette product or a nicotine product from a person other than a licensed distributor.
(b) The penalty is in an amount equal to the tax that is due under Section 59-14-804 on the electronic cigarette product or the nicotine product.
(1) A tax is imposed upon:
(a) an electronic cigarette product;
(b) a nontherapeutic nicotine product; and
(c) an alternative nicotine product.
(2)
(a) The amount of tax imposed under Subsections (1)(a) and (b) is .71 multiplied by the manufacturer's sales price.
(b)
(i) The amount of tax imposed under Subsection (1)(c) on an alternative nicotine product that is a nicotine pouch product is the sum of:
(A) $1; and
(B) 5 cents on each pouch contained within the alternative nicotine product in excess of 20 pouches.
(ii) The amount of tax imposed under Subsection (1)(c) on an alternative nicotine product that is not a nicotine pouch product is .73 multiplied by the manufacturer's sales price.
(3) If a product is sold in the same package as a product that is taxed under Subsection (1), the tax described in Subsection (2) shall apply to the wholesale manufacturer's sale price of the entire packaged product.
(4)
(a) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user shall pay the tax levied under Subsection (1) at the time that an electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine product is first received in the state.
(b) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user may not resell an electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine product to another distributor, another retailer, or a consumer before paying the tax levied under Subsection (1).
(5)
(a) The manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user shall remit the taxes collected in accordance with this section to the commission.
(b) The commission shall deposit revenues generated by the tax imposed by this section into the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account created in Section 59-14-807.
(1)
(a) The manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user that collects the tax imposed on an electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine product shall remit to the commission, in an electronic format approved by the commission:
(i) the tax collected in the previous calendar quarter; and
(ii) the quarterly tax return.
(b) The tax collected and the return are due on or before the last day of April, July, October, and January.
(2)
(a) A manufacturer, jobber, distributor, wholesaler, retailer, or any other person selling an electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine product to a person other than the ultimate consumer shall furnish the purchaser with an itemized invoice showing:
(i) the seller's name and address;
(ii) the name and address of the purchaser;
(iii) the date of sale;
(iv) the name and price of the product; and
(v) the discount, if any.
(b) The invoice shall show whether the price includes the tax.
(c) The seller and the purchaser shall retain copies of the invoice and make the invoice available for inspection at the request of the commission or the commission's agent for a period of three years following the sale.
(3)
(a) A consumer that purchases an untaxed electronic cigarette product, alternative nicotine product, or a nontherapeutic nicotine product for use or other consumption shall:
(i) file with the commission, on forms prescribed by the commission, a statement showing the quantity and description of the item subject to tax under this part; and
(ii) pay the tax imposed by this part on that item.
(b) The consumer shall file the statement described in Subsection (3)(a)(i) and pay the tax due on or before the last day of the month immediately following the month during which the consumer purchased an untaxed electronic cigarette product, alternative nicotine product, or a nontherapeutic nicotine product.
(c) A consumer shall maintain records necessary to determine the amount of tax the consumer is liable to pay under this part for a period of three years following the date on which the statement required by this section was filed.
(4) A tourist who imports an untaxed electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine product into the state does not need to file the statement described in Subsection (3) or pay the tax if the item is for the tourist's own use or consumption while in this state.
(5) In addition to the tax required by this part, a person shall pay a penalty as provided in Section 59-1-401, plus interest at the rate and in the manner prescribed in Section 59-1-402, if a person subject to this section fails to:
(a) pay the tax prescribed by this part;
(b) pay the tax on time; or
(c) file a return required by this part.
(6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in the manner prescribed in Section 59-1-402.
(1) When an electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine product taxed under this chapter is sold and shipped to a regular dealer in those articles in another state, the seller in this state shall be entitled to a refund of the actual amount of the taxes paid, upon condition that the seller in this state:
(a) is a licensed dealer;
(b) signs an affidavit that the electronic cigarette product, the alternative nicotine product, or the nontherapeutic nicotine product was sold and shipped to a regular dealer in those articles in another state;
(c) furnishes, from the purchaser, a written acknowledgment that the purchaser has received the electronic cigarette product, the alternative nicotine product, or the nontherapeutic nicotine product; and
(d) reports the name and address of the purchaser.
(2) A wholesaler or distributor in this state that exports an electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine product to a regular dealer in those articles in another state shall be exempt from the payment of any tax under this chapter upon furnishing proof of the sale and exportation as the commission may require.
(1) There is created within the General Fund a restricted account known as the "Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account."
(2) The Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account consists of:
(a) revenue collected from the tax imposed by Section 59-14-804;
(b) fees and penalties collected under Section 59-14-810;
(c) all money received by the attorney general or the Department of Commerce as a result of any judgment, settlement, or compromise of claims pertaining to alleged violations of law related to the manufacture, marketing, distribution, or sale of electronic cigarette products, as defined in Section 76-9-1101:
(i) if the total amount of the judgment, settlement, or compromise received by the state exceeds $1,000,000; and
(ii) after reimbursement to the attorney general and the Department of Commerce for expenses related to the matters described in this Subsection (2)(c); and
(d) amounts appropriated by the Legislature.
(3)
(a) Subject to Subsections (3)(b) and (c), for each fiscal year and subject to appropriation by the Legislature, the Division of Finance shall distribute from the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account:
(i) $2,000,000 to the Department of Health and Human Services for enforcement services aimed at disrupting organizations and networks that provide tobacco products, electronic cigarette products, nicotine products, or other illegal controlled substances to minors, which the Department of Health and Human Services shall allocate to the local health departments using the formula created in accordance with Section 26A-1-116;
(ii) $1,180,000 to the Department of Public Safety for law enforcement officers aimed at disrupting organizations and networks that provide tobacco products, electronic cigarette products, nicotine products, and other illegal controlled substances to minors;
(iii) $1,000,000 to the Department of Health and Human Services for enforcement services aimed at disrupting organizations and networks that provide tobacco products, electronic cigarette products, nicotine products, and other illegal controlled substances to minors;
(iv) $3,000,000 to the Department of Health and Human Services for community partner prevention programs, which the Department of Health and Human Services shall allocate to the local health departments using the formula created in accordance with Section 26A-1-116;
(v) $1,000,000 to the Department of Health and Human Services for statewide cessation programs and prevention education;
(vi) $2,000,000 to the Department of Health and Human Services for alcohol, tobacco, and other drug prevention, reduction, cessation, and control programs that promote unified messages and make use of media outlets, including radio, newspaper, billboards, and television;
(vii) $759,700 to the Department of Health and Human Services for the Office of Substance Use and Mental Health to provide substance use treatment and prevention services, including Medicaid matching funds for substance use treatment services;
(viii) $5,084,200 to the State Board of Education for school-based prevention programs; and
(ix) funds to the Department of Health and Human Services for a recovery ready workplace certification program, if established in accordance with Section 26B-7-127.
(b) If the amount in the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account is insufficient to cover the distributions described in Subsection (3)(a), the Division of Finance shall make the distributions under Subsection (3)(a):
(i) sequentially in the order of priority the distributions are listed under Subsection (3)(a);
(ii) in full or, if insufficient funds are available to satisfy the next distribution in the sequence, in part; and
(iii) until the available funds in the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account are exhausted.
(c) For each fiscal year and subject to appropriation by the Legislature, the Division of Finance shall distribute from the funds deposited under Section 59-14-810 into the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account:
(i) to the commission, in an amount equal to the amount necessary to create and maintain the registry described in Section 59-14-810;
(ii) to the Department of Health and Human Services, in an amount necessary for completing duties described in Section 59-14-810; and
(iii) to the Department of Health and Human Services, the remainder to be divided among the local health departments for inspection and enforcement described in Sections 26A-1-131 and 59-14-810.
(4)
(a) The local health departments shall use the money received in accordance with Subsection (3)(a) for enforcing:
(i) the regulation provisions described in Section 26B-7-505;
(ii) the labeling requirement described in Section 26B-7-505; and
(iii) the penalty provisions described in Section 26B-7-518.
(b) The Department of Health and Human Services shall use the money received in accordance with Subsection (3)(a)(v) for the Youth Electronic Cigarette, Marijuana, and Other Drug Prevention Program created in Section 26B-1-428.
(c) The local health departments shall use the money received in accordance with Subsection (3)(a)(iv) to issue grants under the Electronic Cigarette, Marijuana, and Other Drug Prevention Grant Program created in Section 26A-1-129.
(d) The State Board of Education shall use the money received in accordance with Subsection (3)(a)(vii) to distribute to local education agencies to pay for:
(i)
(A) stipends for positive behaviors specialists as described in Subsection 53G-10-407(4)(a)(i);
(B) the cost of administering the positive behaviors plan as described in Subsection 53G-10-407(4)(a)(ii); and
(C) the cost of implementing an Underage Drinking and Substance Abuse Prevention Program in grade 4 or 5, as described in Subsection 53G-10-406(3)(b); or
(ii) a comprehensive prevention plan, as that term is defined in Section 53F-2-525.
(5)
(a) The fund shall earn interest.
(b) All interest earned on fund money shall be deposited into the fund.
(6) For a fiscal year beginning on or after July 1, 2026, the Division of Finance shall transfer to the General Fund the amount of revenue generated from the taxes imposed under Section 59-14-804 that exceeds $15,900,000.
(7) Subject to legislative appropriations, funds remaining in the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account after the distribution described in Subsection (3) may only be used for:
(a) funding commission personnel to enforce compliance with the tax collection requirements of this part; and
(b) programs and activities related to the prevention and cessation of electronic cigarette, nicotine products, marijuana, and other drug use.
(1) For purposes of this section:
(a) "Distributor" means a person, wherever residing or located, who:
(i) is licensed in this state to purchase a non-taxed nicotine product or a non-taxed electronic cigarette product; and
(ii) stores, sells, or otherwise disposes of a nicotine product or an electronic cigarette product.
(b) "Licensed person" means the same as that term is defined in Section 59-14-409.
(c) "Order or purchase" includes:
(i) by mail or delivery service;
(ii) through the Internet or computer network;
(iii) by telephone; or
(iv) through some other electronic method.
(d) "Retailer" means any person who sells a nicotine product or an electronic cigarette product to consumers for personal consumption.
(2) A person, distributor, manufacturer, or retailer shall not:
(a) cause a nicotine product or an electronic cigarette product to be ordered or purchased by anyone other than a licensed person; or
(b) knowingly provide substantial assistance to a person who violates this section.
(3)
(a) Each order or purchase of a nicotine product or an electronic cigarette product in violation of Subsection (2) constitutes a separate violation under this section.
(b) In addition to the penalties in Subsection (4), a person who violates this section is subject to:
(i) a civil penalty in an amount not to exceed $5,000 for each violation of this section;
(ii) an injunction to restrain a threatened or actual violation of this section; and
(iii) recovery by the state for:
(A) the costs of investigation;
(B) the cost of expert witness fees;
(C) the cost of the action; and
(D) reasonable attorney's fees.
(4) If a person knowingly violates this section, the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to the state treasurer for deposit in the General Fund.
(1) The commission shall:
(a) implement increased enforcement of the tax imposed by this part; and
(b) study issues related to increased enforcement and compliance with the requirements of this part.
(2) The study shall include a review of:
(a) the impact of increased enforcement on collections of the tax imposed by this part;
(b) options for long-term funding of increased enforcement of the tax imposed by this part;
(c) the sufficiency of collections of the tax imposed by this part to fund distributions from the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account under Section 59-14-807;
(d) impacts of a lack of federal regulation of electronic cigarettes on enforcement and compliance efforts; and
(e) potential impacts on compliance of changing the incidence of taxation to a tax imposed on the retail sale of an electronic cigarette product.
(3) The commission shall annually report the commission's findings and recommendations on the study items described in Subsections (2)(a) through (e) to the Revenue and Taxation Interim Committee on or before the September interim meeting.
(1) Beginning on August 1, 2024, every manufacturer of an electronic cigarette product that is sold in this state, whether directly or through a distributor, wholesaler, retailer, or similar intermediary or intermediaries, shall certify under penalty of perjury on a form and in the manner prescribed by the commission, that the manufacturer agrees to comply with this section and:
(a) for an electronic cigarette product that contains nicotine, that the product is a premarket authorized or pending electronic cigarette product;
(b) for an electronic cigarette product that is a non-nicotine inhalation product, that the product is approved for sale in interstate commerce by the United States Food and Drug Administration; or
(c) for an electronic cigarette product that is a non-nicotine inhalation substance, that the product is a premarket authorized or pending electronic cigarette product.
(2) When submitting the certification a manufacturer shall submit a form that separately lists each electronic cigarette product that is sold in this state.
(3)
(a) Each certification form shall include:
(i) the name of the electronic cigarette product, nicotine content level by percentage, and any flavors contained in the product;
(ii) for an electronic cigarette product that contains nicotine:
(A) a copy of the order granting a premarket tobacco product application of the electronic cigarette product by the United States Food and Drug Administration under 21 U.S.C. Sec. 387j(c)(1)(A)(i); or
(B) evidence that the premarket tobacco product application for the electronic cigarette product or nicotine product was submitted to the United States Food and Drug Administration before September 9, 2020, and a final authorization or order has not yet taken effect;
(iii) for an electronic cigarette product that is a non-nicotine inhalation product, evidence that the product is approved for sale in interstate commerce by the United States Food and Drug Administration;
(iv) for an electronic cigarette product that is a non-nicotine inhalation substance:
(A) a copy of the order granting a premarket tobacco product application of the electronic cigarette product by the United States Food and Drug Administration under 21 U.S.C. Sec. 387j(c)(1)(A)(i); or
(B) evidence that the premarket tobacco product application for the electronic cigarette product was submitted to the United States Food and Drug Administration before September 9, 2020, and a final authorization or order has not yet taken effect;
(v) a nonrefundable $1,000 fee for an electronic cigarette product that is being added to the registry in the first instance; and
(vi) information described in Subsection (10) if applicable.
(b) The commission shall make the materials submitted under Subsection (3)(a) available to the Department of Health and Human Services for review and approval.
(c) A manufacturer required to submit a certification form under this section shall notify the commission and the Department of Health and Human Services in a manner prescribed by the commission within 30 days of any material change making the certification form no longer accurate, including:
(i) the issuance or denial of a marketing authorization or other order by the United States Food and Drug Administration under 21 U.S.C. Sec. 387j; or
(ii) any other order or action by the United States Food and Drug Administration or any court that affects the ability of the electronic cigarette product to be introduced or delivered into interstate commerce for commercial distribution in the United States.
(d) On or before January 31 of each year and in a manner prescribed by the commission, a manufacturer shall:
(i) recertify that the information contained in the certification is correct and accurate;
(ii) correct or amend information if necessary; and
(iii) pay a $250 nonrefundable fee for each electronic cigarette product on the registry that is manufactured by the manufacturer.
(e) A manufacturer may amend a certification, including to add additional electronic cigarette products to the registry, if all requirements of this section are met.
(f) The commission shall:
(i) provide an electronic notification to a manufacturer that has not submitted a recertification under Subsection (3)(d); and
(ii) remove a manufacturer or an electronic cigarette product that is not recertified from the registry by March 15.
(4)
(a) The Department of Health and Human Services shall review materials described in Subsection (3)(a) and notify the commission regarding whether an electronic cigarette product should be included in the registry.
(b) On or before October 1, 2024, the commission shall make publicly available on the commission's website a registry that lists each electronic cigarette product manufacturer and each electronic cigarette product for which certification forms have been approved by the Department of Health and Human Services.
(c) An electronic cigarette product may not be listed on the registry unless the Department of Health and Human Services determines the requirements of Subsection (3)(a) are met.
(d) An electronic cigarette product that contains a cannabinoid may not be listed on the registry.
(5)
(a) If the Department of Health and Human Services obtains information that an electronic cigarette product should not be listed in the registry, the Department of Health and Human Services shall provide the manufacturer notice and an opportunity to cure deficiencies before notifying the commission to remove the manufacturer or products from the registry.
(b) Except as provided in Subsection (5)(c), the Department of Health and Human Services shall comply with Title 63G, Chapter 4, Administrative Procedures Act, before notifying the commission to remove an electronic cigarette product or manufacturer from the registry.
(c) Subsection (5)(b) does not apply to a manufacturer failing:
(i) to decertify an electronic cigarette product;
(ii) to provide fees and documentation described in Subsection (3)(a) or (3)(d); or
(iii) to comply with Subsection (10).
(6)
(a) If a product is removed from the registry, each retailer, distributor, and wholesaler shall have 30 days from the day on which the product is removed from the registry to remove the product from any inventory and return the product to the manufacturer for disposal.
(b) After the period described in Subsection (6)(a), any electronic cigarette product of a manufacturer identified in the notice of removal are contraband and are subject to penalties under Subsection (8).
(7)
(a) Beginning on January 1, 2025, a person may not sell or offer for retail sale an electronic cigarette product in this state that is not included in the registry.
(b) A manufacturer may not sell, either directly or through a distributor, wholesaler, retailer, or similar intermediary or intermediaries, an electronic cigarette product in this state that is not included in the registry.
(8)
(a) A wholesaler, distributor, or retailer who sells or offers for retail sale an electronic cigarette product in this state that is not included in the registry shall be subject to a civil penalty assessed by the tax commission of:
(i) $1,000 for each unit of product offered for sale in violation of this section; and
(ii) $100 per day until the offending product is removed from the market or until the offending product is properly listed on the registry.
(b) The commission shall suspend the person's license issued under Sections 59-14-201, 59-14-301, and 59-14-803 for a violation of Subsection (8)(a) as follows:
(i) for a second violation within a 12-month period, at least 14 days;
(ii) for a third violation within a 12-month period, at least 60 days; or
(iii) for a fourth violation within a 12-month period, at least one year.
(c) A manufacturer whose electronic cigarette products are not listed in the registry and are sold in this state, whether directly or through a distributor, wholesaler, retailer, or similar intermediary or intermediaries, is subject to a civil penalty assessed by the tax commission of:
(i) $1,000 for each unit of product offered for retail sale in violation of this section; and
(ii) $100 per day until the offending product is removed from the market or until the offending product is properly listed on the registry.
(d) A manufacturer that falsely represents any information required by a certification form described in this section shall be guilty of a class C misdemeanor for each false representation.
(e) A repeated violation of this section shall constitute a deceptive act or practice as provided in Sections 13-11-4 and 13-11a-3 and shall be subject to any remedies or penalties available for a violation of those sections.
(9)
(a) To assist in ensuring compliance and enforcement of this section and Section 26A-1-131, the commission shall disclose to the following entities, upon request, any information obtained under this section:
(i) the Department of Health and Human Services;
(ii) a local health department; or
(iii) the attorney general.
(b) The commission and attorney general shall share with each other information received under this section, or corresponding laws of other states.
(10)
(a) The commission may not list a nonresident manufacturer of an electronic cigarette product in the registry unless:
(i) the nonresident manufacturer has registered to do business in the state as a foreign corporation or business entity; or
(ii) the nonresident manufacturer appoints and maintains without interruption the services of an agent in this state to receive any service of process on behalf of the manufacturer.
(b) The nonresident manufacturer shall provide the name, address, and telephone number of the agent to the commission.
(c)
(i) A nonresident manufacturer shall provide notice to the commission 30 days before the termination of the authority of an agent and shall further provide proof to the satisfaction of the commission of the appointment of a new agent no less than five calendar days prior to the termination of an existing agent appointment.
(ii) In the event an agent terminates an agency appointment, the manufacturer shall notify the commission of the termination within five calendar days and shall include proof to the satisfaction of the commission of the appointment of a new agent.
(11) Before May 31 of each year, the commission and the Department of Health and Human Services shall provide a report to the Revenue and Taxation Interim Committee and the Health and Human Services Interim Committee regarding:
(a) the status of the registry;
(b) manufacturers and products included in the registry;
(c) revenue and expenditures related to administration of this section; and
(d) enforcement activities undertaken under this section and Section 26A-1-131.
(12) All fees and penalties collected under this section shall be used for administration and enforcement of this section and Section 26A-1-131.
(13) The commission, in consultation with the Department of Health and Human Services, may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this section.
If the commission suspects that an electronic cigarette product or a nicotine product is being sold in the state in violation of a law other than a law described in this part, the commission shall report the name of the seller, the type of product, and the county where the product was sold:
(1) to the local health department for the county where the sale occurs;
(2) the Department of Health and Human Services; and
(3) the Department of Public Safety.
As used in this part:
(1) "Actual cost" means the actual price paid by a retailer.
(2) "Actual cost list" means a list, prepared, maintained, and certified annually by each retailer, of the average of the actual cost of each item by stock-keeping unit of cigars and pipe tobacco over the 12 calendar months before January 1 of the year in which the remote retail sale of a cigar or pipe tobacco occurs.
(3) "Age verification system" means a service that:
(a) is provided by an independent third party; and
(b) compares information available from a commercially available database, or an aggregate of available databases, that government agencies and businesses use regularly to verify the age and identity of the personal information a consumer provides during the ordering process.
(4)
(a) "Remote retail sale" means the sale to a consumer if:
(i) the retailer is not in the physical presence of the consumer when the request for the sale is made; and
(ii)
(A) the retailer delivers the sold item to the consumer by common carrier, private delivery service, or other method of remote delivery; or
(B) the retailer is not in the physical presence of the consumer when the consumer obtains possession of the sold item.
(b) "Remote retail sale" does not include a sale by:
(i) a regular dealer of tobacco products in another state to a licensed dealer in this state; or
(ii) a wholesaler or distributor in this state to a regular dealer of tobacco products in another state.
(5) "Remote seller" means a retailer that conducts a remote retail sale of a cigar or pipe tobacco.
(1) A retailer may make a remote retail sale of a cigar or pipe tobacco in this state if the retailer:
(a) subject to Section 59-14-903, complies with the licensing and bonding requirements of this part;
(b) subject to Subsection (3), collects and remits the sales and use taxes due under Chapter 12, Sales and Use Tax Act;
(c) reports to the commission, on a quarterly basis after remote retail sales of cigars or pipe tobacco begin:
(i) the number of remote retail sales of cigars or pipe tobacco; and
(ii) the gross sales amount;
(d) subject to Section 59-14-904, collects and remits the tax imposed by this part;
(e) complies with the age and access requirements for cigars or pipe tobacco described in Section 10-8-47 and Title 76, Chapter 9, Part 11, Cigarettes, Tobacco, and Psychotoxic Chemical Solvents;
(f) uses an age verification system; and
(g) requires an individual 21 years old or older to sign for delivery and to take possession of the cigar or pipe tobacco.
(2) A remote seller may not:
(a) make a remote retail sale of any product containing nicotine or tobacco that is not a cigar or pipe tobacco; or
(b) make a face-to-face sale that would be permitted under:
(i) Section 59-14-201 without a license described in Section 59-14-201;
(ii) Section 59-14-301 without a license described in Section 59-14-301; or
(iii) Section 59-14-803 without a license described in Section 59-14-803.
(3) A remote seller shall obtain a sales and use tax license and collect and remit the applicable sales and use tax in accordance with Chapter 12, Sales and Use Tax Act, if the remote seller meets the requirements of Subsection 59-12-107(2).
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to establish a mechanism for a person to report a perceived violation of this section.
(1) The commission shall issue a license to make a remote retail sale of a cigar or pipe tobacco to a retailer that submits an application, on a form the commission creates, that includes:
(a) the retailer's name;
(b) the address of the facility from which the retailer will make a remote retail sale of a cigar or pipe tobacco;
(c) the retailer's federal identification number;
(d) proof that the retailer uses an age verification system and requires an individual 21 years old or older to sign for delivery and to take possession of the cigar or pipe tobacco;
(e) proof of receipt of a sales tax license, if applicable; and
(f) any other information the commission requires to implement this chapter.
(2) A license described in Subsection (1) is:
(a) valid for one year;
(b) valid only for a single facility from which the retailer makes a remote retail sale of a cigar or pipe tobacco; and
(c) renewable if a licensee meets the criteria for licensing described in Subsection (1).
(3) A retailer that holds a license to sell under Section 59-14-301 does not need to obtain a license under this section to make a remote retail sale of a cigar or pipe tobacco.
(4)
(a)
(i) Except as provided in Subsection (4)(a)(ii), the commission shall require a remote seller that is responsible under this part for collection of tax on a cigar or pipe tobacco to post a bond.
(ii) A remote seller that posts a bond under Section 59-14-301 is not required to post an additional bond under this section.
(b) The remote seller may post the bond required by Subsection (4)(a) in combination with any bond required by Section 59-14-201 or 59-14-803.
(c) Subject to Subsection (4)(d), the commission shall determine the form and the amount of the bond.
(d) The minimum amount of the bond shall be:
(i) except as provided in Subsection (4)(d)(ii) or (4)(d)(iii), $500;
(ii) if the remote seller posts the bond required by Subsection (4)(a) in combination with a bond required by either Section 59-14-201 or 59-14-803, $1,000; or
(iii) if the remote seller posts the bond required by Subsection (4)(a) in combination with the bonds required by both Sections 59-14-201 and 59-14-803, $1,500.
(5) In addition to other authorized reasons for the commission to deny or revoke a license or a license renewal under this title, the commission may deny or revoke a license to a retailer who makes or wishes to make remote retail sales of cigars or pipe tobacco if:
(a) the retailer violates this title;
(b) the retailer does not meet the requirements for licensure;
(c) the retailer submits misleading or false information on the retailer's application for licensure; or
(d) a retailer has had a license to sell any tobacco or nicotine products revoked by another state.
(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to establish the additional information described in Subsection (1)(f) that a retailer shall provide in the application.
(7) The commission shall charge $250 for issuing or renewing a license under this section.
(1) A tax is imposed on a remote retail sale of a cigar or pipe tobacco if the cigar or pipe tobacco was not taxed under Section 59-14-302.
(2)
(a) The amount of the tax imposed under this section on a cigar or pipe tobacco is .86 multiplied by:
(i) the actual cost of the cigar or pipe tobacco; or
(ii) if the actual cost is unavailable, the actual cost of the cigar or pipe tobacco as identified in the actual cost list.
(b) A remote retail sale of a cigar or pipe tobacco that is subject to the tax imposed by this section is not subject to the tax imposed by Section 59-14-302.
(3) If a tax is due under Subsection (2), a remote seller that meets the requirements of Subsection 59-12-107(2) shall collect the tax from a consumer at the time of a remote retail sale of a cigar or pipe tobacco.
(4) The commission shall deposit the revenue generated by the tax imposed under this section into the General Fund.
(1)
(a) A remote seller that collects the tax imposed on a cigar or pipe tobacco under this part shall remit to the commission, in an electronic format the commission approves:
(i) the tax the remote seller collected in the previous calendar quarter; and
(ii) the quarterly tax return.
(b) The remote seller shall file the return and remit the taxes collected on or before the last day of April, July, October, and January.
(2)
(a) A remote seller shall provide the consumer with an itemized invoice showing:
(i) the remote seller's name and address;
(ii) the name and delivery address of the consumer;
(iii) the date of sale;
(iv) the final cost and quantity for each item;
(v) a statement of the tax collected under this part;
(vi) the itemized sales and use tax, if applicable; and
(vii) shipping charges, if stated separately.
(b) The remote seller shall retain a copy of each invoice and make the invoice available for inspection at the request of the commission or the commission's agent for a period of three years following the remote retail sale of a cigar or pipe tobacco.
(c) The remote seller shall retain purchasing records to verify the actual cost or actual cost list value for each item by stock-keeping unit.
(3)
(a) A consumer that purchases an untaxed cigar or pipe tobacco for use or other consumption shall:
(i) file with the commission, on a form the commission approves, a statement showing the quantity and description of the item subject to tax under this part; and
(ii) pay the tax imposed by this part on the item.
(b) The consumer shall file the statement described in Subsection (3)(a) and pay the tax due on or before the last day of the month immediately following the month during which the consumer purchased an untaxed cigar or pipe tobacco.
(c) A consumer shall maintain records necessary to determine the amount of tax the consumer is liable to pay under this part for a period of three years after the day on which the consumer filed the statement required by this section.
(4) A nonresident who imports an untaxed cigar or pipe tobacco into the state does not need to file the statement described in Subsection (3) or pay the tax if the item is for the nonresident's own use or consumption while in this state.
(5) In addition to the tax required by this part, a person shall pay a penalty as provided in Section 59-1-401, plus interest at the rate and in the manner provided in Section 59-1-402, for a period of four years after the day on which the tax is due if a person subject to this section fails to:
(a) pay the tax required by this part;
(b) pay the tax on time; or
(c) file a return required by this part.
(6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in the manner provided in Section 59-1-402.
(1) It is unlawful for a person to make a remote retail sale of a cigar or pipe tobacco without complying with the requirements of this part.
(2) A violation of Subsection (1) is a class B misdemeanor with a $5,000 fine.
(1) As used in this chapter, "beer" means:
(a) beer as defined in Section 32B-1-102; or
(b) heavy beer as defined in Section 32B-1-102.
(2)
(a) A tax is imposed at the rate specified in Subsection (2)(b) on beer that is imported or manufactured for sale, use, or distribution in this state.
(b) The rate of the tax imposed under this Subsection (2) is:
(i) $13.10 per 31-gallon barrel for beer imported or manufactured before July 1, 2024;
(ii) $13.35 per 31-gallon barrel for beer imported or manufactured on or after July 1, 2024, and before July 1, 2025;
(iii) $13.60 per 31-gallon barrel for beer imported or manufactured on or after July 1, 2025, and before July 1, 2026;
(iv) $13.85 per 31-gallon barrel for beer imported or manufactured on or after July 1, 2026, and before July 1, 2027; and
(v) $14.10 per 31-gallon barrel for beer imported or manufactured on or after July 1, 2027.
(c) The tax imposed under this Subsection (2):
(i) shall be imposed at a proportionate rate for:
(A) any quantity of beer other than a 31-gallon barrel; or
(B) the fractional parts of a 31-gallon barrel; and
(ii) may not be imposed more than once on the same beer.
(3) A tax may not be imposed on beer:
(a) sold to the United States and its agencies; or
(b)
(i) manufactured or imported for sale, use, or distribution outside the state; and
(ii) exported from the state.
If any person fails to pay the amount of any tax at the time it is due, a penalty as provided under Section 59-1-401 shall be imposed, and the tax shall bear interest at the rate and in the manner prescribed in Section 59-1-402.
If any person, after filing a return and paying the tax provided by this chapter, is aggrieved by the assessment made by the commission, the person may file a request for agency action.
(1) Every brewer, wholesaler, or distributor manufacturing or importing beer for sale, use, or distribution in the state shall, before the last day of each month, file with the commission a return for the preceding calendar month showing the total number of barrels of beer or fractional parts of barrels manufactured or imported during the preceding monthly period. The total barrels of beer manufactured or imported with deductions made for the number of barrels exempt under this chapter shall be reported. The report shall also contain other information required by the commission, and the person shall, at the time of filing the report, pay to the commission the amount of tax due at the rate fixed in accordance with this chapter. Credit is allowed for spoilage, and for taxes already paid on beer, as provided under this chapter.
(2) For purposes of this chapter, beer is considered manufactured when it is placed in containers for use, sale, or distribution, and beer is considered imported when it is first received in the state for use, sale, or distribution.
(3) It is the duty of every person manufacturing or importing beer for sale in this state to keep and preserve adequate records for a period of three years showing the amount of beer sold. These records are open to inspection by the commission, or its authorized representative during reasonable business hours.
Every brewer, wholesaler, or distributor outside the state, shipping beer into the state, for sale, use, or consumption within the state shall, before the last day of each month, file with the commission a return prescribed by the commission for the preceding calendar month and containing any information required by the commission.
If any person who is liable for the tax and is required by this chapter or by the rules of the commission to file a report with respect to the beer tax or to file a report which contains information required to determine the amount of beer tax, fails, neglects, or refuses to file the report, the commission shall estimate the amount of beer upon which the tax is payable, and assess the tax.
No brewery or other establishment may be constructed or equipped in a manner which facilitates any breach of this chapter or the rules of the Alcoholic Beverage Services Commission or State Tax Commission. Any structure or equipment in violation of this section shall be removed by order of the Alcoholic Beverage Control Commission or the State Tax Commission.
(1) Except as provided in Subsections (2) and (3), the commission shall deposit revenue collected under this chapter as follows:
(a) the greater of the following shall be deposited into the Alcoholic Beverage Enforcement and Treatment Restricted Account created in Section 32B-2-403:
(i) an amount calculated by:
(A) determining an amount equal to 50% of the revenue collected for the fiscal year two years preceding the fiscal year for which the deposit is made; and
(B) subtracting $30,000 from the amount determined under Subsection (1)(a)(i)(A); or
(ii) $4,350,000; and
(b) the revenue collected in excess of the amount deposited in accordance with Subsection (1)(a) shall be deposited into the General Fund.
(2) The commission shall annually deposit into the Alcoholic Beverage Enforcement and Treatment Restricted Account created in Section 32B-2-403 an amount equal to the amount of revenue generated in the current fiscal year by the portion of the tax imposed under Section 59-15-101 that is equal to:
(a) $0.30 per 31-gallon barrel for beer imported or manufactured on or after July 1, 2003; and
(b) a proportionate rate to the rate described in Subsection (2)(a) for:
(i) any quantity of beer other than a 31-gallon barrel; or
(ii) the fractional parts of a 31-gallon barrel.
(3) Beginning fiscal year 2024-25, the commission shall annually deposit into the Alcoholic Beverage Control Act Enforcement Fund created in Section 32B-2-305 an amount equal to the amount of revenue generated in the current fiscal year by the portion of the tax imposed under Section 59-15-101 that exceeds:
(a) $13.10 per 31-gallon barrel for beer imported or manufactured on or after July 1, 2024; and
(b) a proportionate rate to the rate described in Subsection (3)(a) for:
(i) any quantity of beer other than a 31-gallon barrel; or
(ii) the fractional parts of a 31-gallon barrel.
As used in this chapter:
(1) Section references, unless otherwise indicated, are to the Internal Revenue Code of 1954, as in effect on January 1, 1970.
(2) "Charitable organization" means an organization described in Section 501(c)(3) and exempt from tax under Section 501(a).
(3) "Private foundation trust" means a trust (including a trust described in Section 4947(a)(1)) as defined in Section 509(a).
(4) "Split interest trust" means a trust for individual and charitable beneficiaries that is subject to the provisions of Section 4947(a)(2).
(5) "Trust" means an express trust created by a trust instrument, including a will.
(6) "Trustee" means the trustee, trustees, person, or persons possessing a power or powers referred to in this chapter.
The provisions of this chapter that are applicable to a split interest trust or to a private foundation trust shall apply to all such trusts, whether they are created before or after the effective date of this chapter.
Except as provided in Section 59-18-106, the trustee of a private foundation trust or a split interest trust has the duties and powers conferred upon the trustee by the provisions of this chapter.
(1) In the exercise of a trustee's powers including the powers granted by this chapter, a trustee has a duty to act with due regard to the trustee's obligation as a fiduciary, including a duty not to exercise any power in such a way as to deprive the trust of an otherwise available tax exemption, deduction, or credit for tax purposes or deprive a donor of a trust asset of a tax deduction or credit or operate to impose a tax upon a donor, trust, or other person. The word "tax" includes, but is not limited to any federal, state, or local excise, income, gift, estate, or inheritance tax.
(2) A trustee of a private foundation trust, except as provided in Section 59-18-106, shall make distributions at such time and in such manner as not to subject the trust to tax under Section 4942.
(3) A trustee of a private foundation trust or a split interest trust, to the extent that the split interest trust is subject to the provisions of Section 4947(a)(2), in the exercise of the trustee's powers, except as provided in Subsection (4) of this section and Section 59-18-106, shall not:
(a) engage in any act of self dealing (as defined in Section 4941(d));
(b) retain any excess business holdings (as defined in Section 4943(c));
(c) make any investments in such manner as to subject the foundation to tax under Section 4944; and
(d) make any taxable expenditures (as defined in Section 4945(d)).
(4) Subsections (3)(b) and (c) do not apply to a split interest trust if:
(a) all the income interest (and none of the remainder interest) of such trust is devoted solely to one or more of the purposes described in Section 170(c)(2)(B), and all amounts in such trust for which a deduction was allowed under Section 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 have aggregate fair market value not more than 60% of the aggregate fair market value of all amounts in such trust; or
(b) a deduction was allowed under Section 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 for amounts payable under the terms of such trust to every remainder beneficiary but not to any income beneficiary.
If the trustee determines that the governing instrument contains provisions, in the case of a power to make distributions, which is more restrictive than Subsection 59-18-105(2), or if the trust contains other powers which specifically direct acts by the trustee that are inconsistent with the provisions of Subsection 59-18-105(3), the trustee shall notify the attorney general within six months following the effective date of this chapter, or when the trust becomes subject to this chapter, whichever last occurs. Section 59-18-105 does not apply to any trust with respect to which notice has been given unless the trust is amended to comply with the terms of this chapter.
(1) In the case of a trust which is solely for a named charitable organization or organizations and as to which the trustee does not possess any discretion with regard to the distribution of income or principal among two or more such organizations, the trustee, with the consent of the named charitable organization or organizations, may amend the governing instrument to comply with the provisions of Subsection 59-18-105(2).
(2) In the case of a charitable trust which is not subject to the provisions of Subsection (1), the trustee with the consent of the attorney general may amend the governing instrument to comply with the provisions of Subsection 59-18-105(2).
This chapter does not affect the power of a court of competent jurisdiction for cause shown and upon petition of the trustee, attorney general, or affected beneficiary, and upon appropriate notice to the affected parties to relieve a trustee from any restrictions on the trustee's powers and duties that are placed upon the trustee by the governing instrument or applicable law.
(1) The trustee of a trust all of the unexpired interests in which are devoted to one or more charitable purposes, unless the creating instrument expressly provides otherwise, may release a power to select charitable donees.
(2) The release of a power to select charitable donees may apply to all or any part of the property subject to the power and may reduce or limit the charitable organizations or classes of charitable organizations in whose favor the power is exercisable.
(3) A release shall be effected by a duly acknowledged written instrument signed by the trustee and delivered as provided in Subsection (4).
(4) Delivery of a release shall be accomplished as follows:
(a) if the release is accomplished by specifying a charitable organization or organizations as beneficiary or beneficiaries of the trust, by delivery of a copy of the release to each designated charitable organization;
(b) if the release is accomplished by reducing the class of permissible charitable organizations, by delivery of a copy of the release to the attorney general.
(5) If a release is accomplished by specifying a public charitable organization or organizations as beneficiary or beneficiaries of the trust, the trust at all times thereafter shall be operated exclusively for the benefit of and supervised by the specified public charitable organization or organizations.
A trustee of a trust for the benefit of a public charitable organization or organizations may, with the consent of such organization or organizations, come under Subsection 59-18-109(5) by filing an election, accompanied by the consents, with the attorney general. Thereafter, the trust shall be subject to Subsection 59-18-109(5) and Section 59-18-111.
The trustee of a trust subject to the supervision by a specified public charitable organization or organizations, as provided in Subsection 59-18-109(5), shall file with each specified charitable organization:
(1) a trust copy of the governing instrument together with a written report, under oath, setting forth complete information as to the nature of the assets and liabilities with the delivery of the release pursuant to Subsection 59-18-109(4) or the filing of the election under Section 59-18-110;
(2) an annual report, within 4-1/2 months following the close of each year, setting forth a complete statement of receipts, disbursements, assets (together with cost and market value of each asset), and liabilities; and
(3) such other information as the public charitable organization or organizations deem necessary to compel proper administration of the trust.
This chapter shall be interpreted to effectuate the intent of the state of Utah to preserve, foster, and encourage gifts to or for the benefit of charitable organizations.
Except as specifically provided in the trust, the provisions of this chapter apply to any trust established before or after the effective date of this chapter and to any trust asset acquired by the trustee before or after the effective date of this chapter.
(1) Except as provided in Subsections (2) through (4), all money received from the United States under the provisions of the Mineral Lands Leasing Act, 30 U.S.C. Sec. 181 et seq., shall:
(a) be deposited in the Mineral Lease Account of the General Fund; and
(b) be appropriated by the Legislature giving priority to those subdivisions of the state socially or economically impacted by development of minerals leased under the Mineral Lands Leasing Act, for:
(i) planning;
(ii) construction and maintenance of public facilities; and
(iii) provision of public services.
(2) Seventy percent of money received from federal mineral lease bonus payments shall be deposited into the Permanent Community Impact Fund and shall be used in accordance with Title 63N, Chapter 22, Part 5, Community Impact Fund.
(3) Thirty percent of money received from federal mineral lease bonus payments shall be deposited in the Mineral Bonus Account created by Subsection 59-21-2(1) and appropriated as provided in that subsection.
(4)
(a) For purposes of this Subsection (4):
(i) the "boundaries of the Grand Staircase-Escalante National Monument" means the boundaries:
(A) established by Presidential Proclamation No. 6920, 61 Fed. Reg. 50,223 (1996); and
(B) modified by:
(I) Pub. L. No. 105-335, 112 Stat. 3139; and
(II) Pub. L. No. 105-355, 112 Stat. 3247; and
(ii) a special service district, school district, or federal land is considered to be located within the boundaries of the Grand Staircase-Escalante National Monument if a portion of the special service district, school district, or federal land is located within the boundaries described in Subsection (4)(a)(i).
(b) Beginning on July 1, 1999, the Legislature shall appropriate, as provided in Subsections (4)(c) through (g), money received from the United States that is attributable to royalties from the extraction of minerals on federal land that, on September 18, 1996, was located within the boundaries of the Grand Staircase-Escalante National Monument.
(c) The Legislature shall annually appropriate 40% of the money described in Subsection (4)(b) to the Division of Finance to be distributed by the Division of Finance to special service districts that are:
(i) established by counties under Title 17D, Chapter 1, Special Service District Act;
(ii) socially or economically impacted by the development of minerals under the Mineral Lands Leasing Act; and
(iii) located within the boundaries of the Grand Staircase-Escalante National Monument.
(d) The Division of Finance shall distribute the money described in Subsection (4)(c) in amounts proportionate to the amount of federal mineral lease money generated by the county in which a special service district is located.
(e) The Legislature shall annually appropriate 40% of the money described in Subsection (4)(b) to the State Board of Education to be distributed equally to school districts that are:
(i) socially or economically impacted by the development of minerals under the Mineral Lands Leasing Act; and
(ii) located within the boundaries of the Grand Staircase-Escalante National Monument.
(f) The Legislature shall annually appropriate 2.25% of the money described in Subsection (4)(b) to the Utah Geological Survey to facilitate the development of energy and mineral resources in counties that are:
(i) socially or economically impacted by the development of minerals under the Mineral Lands Leasing Act; and
(ii) located within the boundaries of the Grand Staircase-Escalante National Monument.
(g) Seventeen and three-fourths percent of the money described in Subsection (4)(b) shall be deposited annually into the State School Fund established by Utah Constitution Article X, Section 5.
(1)
(a) There is created a restricted account within the General Fund known as the "Mineral Bonus Account."
(b) The Mineral Bonus Account consists of federal mineral lease bonus payments deposited pursuant to Subsection 59-21-1(3).
(c) The Legislature shall make appropriations from the Mineral Bonus Account in accordance with Section 35 of the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 191.
(d) The state treasurer shall:
(i) invest the money in the Mineral Bonus Account by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act; and
(ii) deposit all interest or other earnings derived from the account into the Mineral Bonus Account.
(e) The Division of Finance shall, beginning on July 1, 2017, annually deposit 30% of mineral lease bonus payments deposited under Subsection (1)(b) from the previous fiscal year into the Utah Wildfire Fund created in Section 65A-8-217, up to $2,000,000 but not to exceed 20% of the amount expended in the previous fiscal year from the Utah Wildfire Fund.
(2)
(a) There is created a restricted account within the General Fund known as the "Mineral Lease Account."
(b) The Mineral Lease Account consists of federal mineral lease money deposited pursuant to Subsection 59-21-1(1).
(c) The Legislature shall make appropriations from the Mineral Lease Account as provided in Subsection 59-21-1(1) and this Subsection (2).
(d) The Legislature shall annually appropriate 32.5% of all deposits made to the Mineral Lease Account to the Permanent Community Impact Fund established by Section 63N-24-503.
(e) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral Lease Account to the State Board of Education, to be used for education research and experimentation in the use of staff and facilities designed to improve the quality of education in Utah.
(f) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral Lease Account to the Utah Geological Survey Restricted Account, created in Section 79-3-403, to be used by the Utah Geological Survey for activities carried on by the Utah Geological Survey having as a purpose the development and exploitation of natural resources in the state.
(g) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral Lease Account to the Water Research Laboratory at Utah State University, to be used for activities carried on by the laboratory having as a purpose the development and exploitation of water resources in the state.
(h)
(i) The Legislature shall annually appropriate to the Division of Finance 40% of all deposits made to the Mineral Lease Account to be distributed as provided in Subsection (2)(h)(ii) to:
(A) counties;
(B) special service districts established:
(I) by counties;
(II) under Title 17D, Chapter 1, Special Service District Act; and
(III) for the purpose of constructing, repairing, or maintaining roads; or
(C) special service districts established:
(I) by counties;
(II) under Title 17D, Chapter 1, Special Service District Act; and
(III) for other purposes authorized by statute.
(ii) The Division of Finance shall allocate the funds specified in Subsection (2)(h)(i):
(A) in amounts proportionate to the amount of mineral lease money generated by each county; and
(B) to a county or special service district established by a county under Title 17D, Chapter 1, Special Service District Act, as determined by the county legislative body.
(i)
(i) The Legislature shall annually appropriate 5% of all deposits made to the Mineral Lease Account to the Department of Workforce Services to be distributed to:
(A) special service districts established:
(I) by counties;
(II) under Title 17D, Chapter 1, Special Service District Act; and
(III) for the purpose of constructing, repairing, or maintaining roads; or
(B) special service districts established:
(I) by counties;
(II) under Title 17D, Chapter 1, Special Service District Act; and
(III) for other purposes authorized by statute.
(ii) The Department of Workforce Services may distribute the amounts described in Subsection (2)(i)(i) only to special service districts established under Title 17D, Chapter 1, Special Service District Act, by counties:
(A) of the third, fourth, fifth, or sixth class;
(B) in which 4.5% or less of the mineral lease money within the state is generated; and
(C) that are significantly socially or economically impacted as provided in Subsection (2)(i)(iii) by the development of minerals under the Mineral Lands Leasing Act, 30 U.S.C. Sec. 181 et seq.
(iii) The significant social or economic impact required under Subsection (2)(i)(ii)(C) shall be as a result of:
(A) the transportation within the county of hydrocarbons, including solid hydrocarbons as defined in Section 59-5-101;
(B) the employment of persons residing within the county in hydrocarbon extraction, including the extraction of solid hydrocarbons as defined in Section 59-5-101; or
(C) a combination of Subsections (2)(i)(iii)(A) and (B).
(iv) For purposes of distributing the appropriations under this Subsection (2)(i) to special service districts established by counties under Title 17D, Chapter 1, Special Service District Act, the Department of Workforce Services shall:
(A)
(I) allocate 50% of the appropriations equally among the counties meeting the requirements of Subsections (2)(i)(ii) and (iii); and
(II) allocate 50% of the appropriations based on the ratio that the population of each county meeting the requirements of Subsections (2)(i)(ii) and (iii) bears to the total population of all of the counties meeting the requirements of Subsections (2)(i)(ii) and (iii); and
(B) after making the allocations described in Subsection (2)(i)(iv)(A), distribute the allocated revenues to special service districts established by the counties under Title 17D, Chapter 1, Special Service District Act, as determined by the executive director of the Department of Workforce Services after consulting with the county legislative bodies of the counties meeting the requirements of Subsections (2)(i)(ii) and (iii).
(v) The executive director of the Department of Workforce Services:
(A) shall determine whether a county meets the requirements of Subsections (2)(i)(ii) and (iii);
(B) shall distribute the appropriations under Subsection (2)(i)(i) to special service districts established by counties under Title 17D, Chapter 1, Special Service District Act, that meet the requirements of Subsections (2)(i)(ii) and (iii); and
(C) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, may make rules:
(I) providing a procedure for making the distributions under this Subsection (2)(i) to special service districts; and
(II) defining the term "population" for purposes of Subsection (2)(i)(iv).
(j)
(i) The Legislature shall annually make the following appropriations from the Mineral Lease Account:
(A) an amount equal to 52 cents multiplied by the number of acres of school or institutional trust lands, lands owned by the Division of State Parks or the Division of Outdoor Recreation, and lands owned by the Division of Wildlife Resources that are not under an in lieu of taxes contract, to each county in which those lands are located;
(B) to each county in which school or institutional trust lands are transferred to the federal government after December 31, 1992, an amount equal to the number of transferred acres in the county multiplied by a payment per acre equal to the difference between 52 cents per acre and the per acre payment made to that county in the most recent payment under the federal payment in lieu of taxes program, 31 U.S.C. Sec. 6901 et seq., unless the federal payment was equal to or exceeded the 52 cents per acre, in which case a payment under this Subsection (2)(j)(i)(B) may not be made for the transferred lands;
(C) to each county in which federal lands, which are entitlement lands under the federal in lieu of taxes program, are transferred to the school or institutional trust, an amount equal to the number of transferred acres in the county multiplied by a payment per acre equal to the difference between the most recent per acre payment made under the federal payment in lieu of taxes program and 52 cents per acre, unless the federal payment was equal to or less than 52 cents per acre, in which case a payment under this Subsection (2)(j)(i)(C) may not be made for the transferred land; and
(D) to a county of the fifth or sixth class, an amount equal to the product of:
(I) $1,000; and
(II) the number of residences described in Subsection (2)(j)(iv) that are located within the county.
(ii) A county receiving money under Subsection (2)(j)(i) may, as determined by the county legislative body, distribute the money or a portion of the money to:
(A) special service districts established by the county under Title 17D, Chapter 1, Special Service District Act;
(B) school districts; or
(C) public institutions of higher education.
(iii)
(A) Beginning in fiscal year 1994-95 and in each year after fiscal year 1994-95, the Division of Finance shall increase or decrease the amounts per acre provided for in Subsections (2)(j)(i)(A) through (C) by the average annual change in the Consumer Price Index for all urban consumers published by the Department of Labor.
(B) For fiscal years beginning on or after fiscal year 2001-02, the Division of Finance shall increase or decrease the amount described in Subsection (2)(j)(i)(D)(I) by the average annual change in the Consumer Price Index for all urban consumers published by the Department of Labor.
(iv) Residences for purposes of Subsection (2)(j)(i)(D)(II) are residences that are:
(A) owned by:
(I) the Division of State Parks;
(II) the Division of Outdoor Recreation; or
(III) the Division of Wildlife Resources;
(B) located on lands that are owned by:
(I) the Division of State Parks;
(II) the Division of Outdoor Recreation; or
(III) the Division of Wildlife Resources; and
(C) are not subject to taxation under:
(I) Chapter 2, Property Tax Act; or
(II) Chapter 4, Privilege Tax.
(k) The Legislature shall annually appropriate to the Permanent Community Impact Fund all deposits remaining in the Mineral Lease Account after making the appropriations provided for in Subsections (2)(d) through (j).
(3)
(a) Each agency, board, institution of higher education, and political subdivision receiving money under this chapter shall provide the Legislature, through the Office of the Legislative Fiscal Analyst, with a complete accounting of the use of that money on an annual basis.
(b) The accounting required under Subsection (3)(a) shall:
(i) include actual expenditures for the prior fiscal year, budgeted expenditures for the current fiscal year, and planned expenditures for the following fiscal year; and
(ii) be reviewed by the Economic and Community Development Appropriations Subcommittee as part of its normal budgetary process under Title 63J, Chapter 1, Budgetary Procedures Act.
This chapter is known as the "Model Tobacco Settlement Act."
(1) Cigarette smoking presents serious public health concerns to the State and to the citizens of the State. The Surgeon General has determined that smoking causes lung cancer, heart disease and other serious diseases, and that there are hundreds of thousands of tobacco-related deaths in the United States each year. These diseases most often do not appear until many years after the person in question begins smoking.
(2) Cigarette smoking also presents serious financial concerns for the State. Under certain health-care programs, the State may have a legal obligation to provide medical assistance to eligible persons for health conditions associated with cigarette smoking, and those persons may have a legal entitlement to receive such medical assistance.
(3) Under these programs, the State pays millions of dollars each year to provide medical assistance for these persons for health conditions associated with cigarette smoking.
(4) It is the policy of the State that financial burdens imposed on the State by cigarette smoking be borne by tobacco product manufacturers rather than by the State to the extent that such manufacturers either determine to enter into a settlement with the State or are found culpable by the courts.
(5) On November 23, 1998, leading United States tobacco product manufacturers entered into a settlement agreement, entitled the "Master Settlement Agreement," with the State. The Master Settlement Agreement obligates these manufacturers, in return for a release of past, present, and certain future claims against them as described therein, to pay substantial sums to the State (tied in part to their volume of sales); to fund a national foundation devoted to the interests of public health; and to make substantial changes in their advertising and marketing practices and corporate culture, with the intention of reducing underage smoking.
(6) It would be contrary to the policy of the State if tobacco product manufacturers who determine not to enter into such a settlement could use a resulting cost advantage to derive large, short-term profits in the years before liability may arise without ensuring that the State will have an eventual source of recovery from them if they are proven to have acted culpably. It is thus in the interest of the State to require that such manufacturers establish a reserve fund to guarantee a source of compensation and to prevent such manufacturers from deriving large, short-term profits and then becoming judgment-proof before liability may arise.
As used in this part:
(1) "Adjusted for inflation" means increased in accordance with the formula for inflation adjustment set forth in Exhibit C to the Master Settlement Agreement.
(2) "Affiliate" means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person. Solely for purposes of this definition, the terms "owns," "is owned" and "ownership" mean ownership of an equity interest, or the equivalent thereof, of 10% or more, and the term "person" means an individual, partnership, committee, association, corporation, or any other organization or group of persons.
(3) "Allocable share" means Allocable Share as that term is defined in the Master Settlement Agreement.
(4) "Cigarette" means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use, and consists of or contains:
(a) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or
(b) tobacco, in any form, that is functional in the product, which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette; or
(c) any roll of tobacco wrapped in any substance containing tobacco that, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in clause (a) of this definition. The term "cigarette" includes "roll-your-own" (i.e., any tobacco that, because of its appearance, type, packaging, or labeling is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes). For purposes of this definition of "cigarette," 0.09 ounces of "roll-your-own" tobacco shall constitute one individual "cigarette."
(5) "Master Settlement Agreement" means the settlement agreement (and related documents) entered into on November 23, 1998, by the State and leading United States tobacco product manufacturers.
(6) "Qualified escrow fund" means an escrow arrangement with a federally or State chartered financial institution having no affiliation with any tobacco product manufacturer and having assets of at least $1,000,000,000 where such arrangement requires that such financial institution hold the escrowed funds' principal for the benefit of releasing parties and prohibits the tobacco product manufacturer placing the funds into escrow from using, accessing, or directing the use of the funds' principal except as consistent with Subsection 59-22-203(2).
(7) "Released claims" means Released Claims as that term is defined in the Master Settlement Agreement.
(8) "Releasing parties" means Releasing Parties as that term is defined in the Master Settlement Agreement.
(9)
(a) "Tobacco product manufacturer" means an entity that after the date of enactment of this Act directly (and not exclusively through any affiliate):
(i) manufactures cigarettes anywhere that such manufacturer intends to be sold in the United States, including cigarettes intended to be sold in the United States through an importer (except where such importer is an original participating manufacturer (as that term is defined in the Master Settlement Agreement) that will be responsible for the payments under the Master Settlement Agreement with respect to such cigarettes as a result of the provisions of Subsection II(mm) of the Master Settlement Agreement and that pays the taxes specified in Subsection II(z) of the Master Settlement Agreement, and provided that the manufacturer of such cigarettes does not market or advertise such cigarettes in the United States);
(ii) is the first purchaser anywhere for resale in the United States of cigarettes manufactured anywhere that the manufacturer does not intend to be sold in the United States; or
(iii) becomes a successor of an entity described in Subsection (9)(a)(i) or (ii).
(b) "Tobacco product manufacturer" shall not include an affiliate of a tobacco product manufacturer unless such affiliate itself falls within any Subsection (9)(a)(i) through (iii).
(10)
(a) "Units sold" means the number of individual cigarettes sold in the state by an applicable tobacco product manufacturer during the year in question for which the state is not prohibited from taxing under federal law.
(b) "Units sold" includes a cigarette or "roll your own" tobacco product sold by a tobacco product manufacturer through a distributor, a retailer, or a similar intermediary.
(c) The State Tax Commission may make rules establishing how to determine the number of units sold in the state.
(1) Any tobacco product manufacturer selling cigarettes to consumers within the State (whether directly or through a distributor, retailer or similar intermediary or intermediaries) after the date of enactment of this Act shall do one of the following:
(a) become a participating manufacturer (as that term is defined in Section II(jj) of the Master Settlement Agreement) and generally perform its financial obligations under the Master Settlement Agreement; or
(b) place into a qualified escrow fund by April 15 of the year following the year in question the following amounts (as such amounts are adjusted for inflation):
(i) 1999: $.0094241 per unit sold after the date of enactment of this Act;
(ii) 2000: $.0104712 per unit sold;
(iii) for each of 2001 and 2002: $.0136125 per unit sold;
(iv) for each of 2003 through 2006: $.0167539 per unit sold; and
(v) for each of 2007 and each year thereafter: $.0188482 per unit sold.
(2) A tobacco product manufacturer that places funds into escrow pursuant to Subsection (1)(b) shall receive the interest or other appreciation on such funds as earned. Such funds themselves shall be released from escrow only under the following circumstances:
(a) to pay a judgment or settlement on any released claim brought against such tobacco product manufacturer by the State or any releasing party located or residing in the State. Funds shall be released from escrow under this Subsection (2)(a):
(i) in the order in which they were placed into escrow; and
(ii) only to the extent and at the time necessary to make payments required under such judgment or settlement;
(b) to the extent that a tobacco product manufacturer establishes that the amount it was required to place into escrow on account of units sold in the State in a particular year was greater than the Master Settlement Agreement payments, as determined pursuant to Section IX(i) of that Agreement including after final determination of all adjustments, that such manufacturer would have been required to make on account of such units sold had it been a participating manufacturer, the excess shall be released from escrow and revert back to such tobacco product manufacturer; or
(c) to the extent not released from escrow under Subsection (2)(a) or (b), funds shall be released from escrow and revert back to such tobacco product manufacturer 25 years after the date on which they were placed into escrow.
(3) Each tobacco product manufacturer that elects to place funds into escrow pursuant to Subsection (1)(b) shall annually certify to the commission that it is in compliance with Subsection (1)(b) and Subsection (2). The commission may bring a civil action on behalf of the State against any tobacco product manufacturer that fails to place into escrow the funds required under Subsection (1)(b) and Subsection (2). Any tobacco product manufacturer that fails in any year to place into escrow the funds required under this Subsection (1)(b) and Subsection (2) shall:
(a) be required within 15 days to place such funds into escrow as shall bring it into compliance with Subsection (1)(b) and Subsection (2). The court, upon a finding of a violation of Subsection (1)(b) or Subsection (2), may impose a civil penalty to be paid to the General Fund in an amount not to exceed 5% of the amount improperly withheld from escrow per day of the violation and in a total amount not to exceed 100% of the original amount improperly withheld from escrow;
(b) in the case of a knowing violation, be required within 15 days to place such funds into escrow as shall bring it into compliance with Subsection (1)(b) and Subsection (2). The court, upon a finding of a knowing violation of Subsection (1)(b) or Subsection (2), may impose a civil penalty to be paid to the General Fund of the State in an amount not to exceed 15% of the amount improperly withheld from escrow per day of the violation and in a total amount not to exceed 300% of the original amount improperly withheld from escrow; and
(c) in the case of a second knowing violation, be prohibited from selling cigarettes to consumers within the State (whether directly or through a distributor, retailer or similar intermediary) for a period not to exceed 2 years.
(4) Each failure to make an annual deposit required under Subsection (1)(b) shall constitute a separate violation.
(5) A court shall award the State its costs and attorneys fees incurred in bringing any action in which the State establishes that a tobacco product manufacturer has violated this section.
This part sets forth definitions in the Master Settlement Agreement that are cross-referenced in Part 2, Model Tobacco Settlement Statute. This part is intended for convenience only and may not be construed as substantively or otherwise altering Part 2, Model Tobacco Settlement Statute, or the Master Settlement Agreement. Where Part 2, Model Tobacco Settlement Statute, instructs that a term be given the same definition as that term is given in the Master Settlement Agreement, the definition shall be that set forth in the Master Settlement Agreement, as it may be amended from time to time.
The formula for calculating inflation adjustments, which is referenced in Subsection 59-22-202(1), is set forth in Exhibit C of the Master Settlement Agreement as follows, with the exception of Subsection (7) which is omitted:
Exhibit C
Formula For Calculating Inflation Adjustment
(1) Any amount that, in any given year, is to be adjusted for inflation pursuant to this Exhibit, the "Base Amount," shall be adjusted upward by adding to such Base Amount the Inflation Adjustment.
(2) The Inflation Adjustment shall be calculated by multiplying the Base Amount by the Inflation Adjustment Percentage applicable in that year.
(3) The Inflation Adjustment Percentage applicable to payments due in the year 2000 shall be equal to the greater of 3% or the CPI%. For example, if the Consumer Price Index for December 1999, as released in January 2000, is 2% higher than the Consumer Price Index for December 1998, as released in January 1999, then the CPI% with respect to a payment due in 2000 would be 2%. The Inflation Adjustment Percentage applicable in the year 2000 would thus be 3%.
(4) The Inflation Adjustment Percentage applicable to payments due in any year after 2000 shall be calculated by applying each year the greater of 3% or the CPI% on the Inflation Adjustment Percentage applicable to payments due in the prior year. Continuing the example in subsection (3) above, if the CPI% with respect to a payment due in 2001 is 6%, then the Inflation Adjustment Percentage applicable in 2001 would be 9.1800000%, an additional 6% applied on the 3% Inflation Adjustment Percentage applicable in 2000, and if the CPI% with respect to a payment due in 2002 is 4%, then the Inflation Adjustment Percentage applicable in 2002 would be 13.5472000%, an additional 4% applied on the 9.1800000% Inflation Adjustment Percentage applicable in 2001.
(5) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers as published by the Bureau of Labor Statistics of the U.S. Department of Labor, or other similar measures agreed to by the Settling States and the Participating Manufacturers.
(6) The "CPI%" means the actual total percent change in the Consumer Price Index during the calendar year immediately preceding the year in which the payment in question is due.
(1) "Allocable Share," which is referenced in Subsection 59-22-202(3), is defined in the Master Settlement Agreement as follows:
"Allocable Share" means the percentage set forth for the State in question as listed in Exhibit A hereto, without regard to any subsequent alteration or modification of such State's percentage share agreed to or by or among any States; or, solely for the purpose of calculating payments under subsection IX(c)(2) (and corresponding payments under subsection IX(i)), the percentage disclosed for the State in question pursuant to subsection IX(c)(2)(A) prior to June 30, 1999, without regard to any subsequent alteration or modification of such State's percentage share agreed to by or among any States.
(2) The percentage set forth for Utah in Exhibit A to the Master Settlement Agreement is 0.4448869%.
(3) The percentage for calculating "Strategic Contribution Payments" to Utah under subsection IX(c)(2) is to be determined by a three-member Allocation Committee in accordance with Exhibit U of the Master Settlement Agreement.
(1) "Released Claims," which is referenced in Subsection 59-22-202(7), is defined in the Master Settlement Agreement as follows:
""Released Claims" means:
(1) for past conduct, acts or omissions, including any damages incurred in the future arising from such past conduct, acts or omissions, those Claims directly or indirectly based on, arising out of or in any way related, in whole or in part, to (A) the use, sale, distribution, manufacture, development, advertising, marketing or health effects of, (B) the exposure to, or (C) research, statements, or warnings regarding, Tobacco Products, including, but not limited to, the Claims asserted in the actions identified in Exhibit D, or any comparable Claims that were, could be or could have been asserted now or in the future in those actions or in any comparable action in federal, state or local court brought by a Settling State or a Releasing Party, whether or not such Settling State or Releasing Party has brought such action, except for claims not asserted in the actions identified in Exhibit D for outstanding liability under existing licensing, or similar, fee laws or existing tax laws, but not excepting claims for any tax liability of the Tobacco-Related Organizations or of any Released Party with respect to such Tobacco-Related Organizations, which claims are covered by the release and covenants set forth in this Agreement;
(2) for future conduct, acts or omissions, only those monetary Claims directly or indirectly based on, arising out of or in any way related to, in whole or in part, the use of or exposure to Tobacco Products manufactured in the ordinary course of business, including without limitation any future Claims for reimbursement of health care costs allegedly associated with the use of or exposure to Tobacco Products."
(2) Exhibit D is a list of the titles and docket numbers of the lawsuits brought by states against tobacco manufacturers and the courts in which those lawsuits were filed as of the date that the Master Settlement Agreement was entered into.
"Releasing Parties," which is referenced in Subsection 59-22-202(8), is defined in the Master Settlement Agreement as follows:
(1) "Releasing Parties" means each Settling State and any of its past, present and future agents, officials acting in their official capacities, legal representatives, agencies, departments, commissions and divisions; and also means, to the full extent of the power of the signatories hereto to release past, present and future claims, the following: (1) any Settling State's subdivisions, political or otherwise, including, but not limited to, municipalities, counties, parishes, villages, unincorporated districts and hospital districts, public entities, public instrumentalities and public educational institutions; and (2) persons or entities acting in a parens patriae, sovereign, quasi-sovereign, private attorney general, qui tam, taxpayer, or any other capacity, whether or not any of them participate in this settlement, (A) to the extent that any such person or entity is seeking relief on behalf of or generally applicable to the general public in such Settling State or the people of the State, as opposed solely to private or individual relief for separate and distinct injuries, or (B) to the extent that any such entity, as opposed to an individual, is seeking recovery of health-care expenses, other than premium or capitation payments for the benefit of present or retired state employees, paid or reimbursed, directly or indirectly, by a Settling State.
(1) "Original Participating Manufacturer," which is referenced in Subsection 59-22-202(9)(a)(i), is defined in the Master Settlement Agreement as follows:
"Original Participating Manufacturer" means Brown & Williamson Tobacco Corporation, Lorillard Tobacco Company, Phillip Morris Incorporated and R.J. Reynolds Tobacco Company, and the respective successors of each of the foregoing. Except as expressly providing in this Agreement, once an entity becomes an Original Participating Manufacturer, such entity shall permanently retain the status of Original Participating Manufacturer.
(2) Subsection II(mm) of the Master Settlement Agreement, which is referenced in Subsection 59-22-202(9)(a)(i), is the following definition of "relative market share":
"Relative market share" means an original participating manufacturer's respective share, expressed as a percentage, of the total number of individual cigarettes shipped in or to the 50 United States, the District of Columbia and Puerto Rico by all the original participating manufacturers during the calendar year immediately preceding the year in which the payment at issue is due, regardless of when such payment is made, as measured by the original participating manufacturers' reports of shipments of cigarettes to Management Science Associates, Inc., or a successor entity acceptable to both the original participating manufacturers and a majority of those attorneys general who are both the attorney general of a settling state and a member of the NAAG executive committee at the time in question. A cigarette shipped by more than one participating manufacturer shall be deemed to have been shipped solely by the first participating manufacturer to do so. For purposes of the definition and determination of "relative market share," 0.09 ounces of "roll your own" tobacco shall constitute one individual cigarette.
(3) Subsection II(z) of the Master Settlement Agreement, which is referenced in Subsection 59-22-202(9)(a)(i), is the following definition of "market share":
"Market share" means a tobacco product manufacturer's respective share, expressed as a percentage, of the total number of individual cigarettes sold in the 50 United States, the District of Columbia and Puerto Rico during the applicable calendar year, as measured by excise taxes collected by the federal government and, in the case of sales in Puerto Rico, arbitrios de cigarillos collected by the Puerto Rico taxing authority. For purposes of the definition and determination of "market share" with respect to calculations under subsection IX(i), 0.09 ounces of "roll your own" tobacco shall constitute one individual cigarette; for purposes of the definition and determination of "market share" with respect to all other calculations, 0.0325 ounces of "roll your own" tobacco shall constitute one individual cigarette.
(1) "Participating Manufacturer," which is referenced in Subsection 59-22-203(1), is defined in the Master Settlement Agreement as follows:
""Participating Manufacturer" means a Tobacco Product Manufacturer that is or becomes a signatory to this Agreement, provided that (1) in the case of a Tobacco Product Manufacturer that is not an Original Participating Manufacturer, such Tobacco Product Manufacturer is bound by this Agreement and the Consent Decree, or, in any Settling State that does not permit amendment of the Consent Decree, a Consent Decree containing terms identical to those set forth in the Consent Decree, in all Settling States in which this Agreement and the Consent Decree binds Original Participating Manufacturers, provided, however, that such Tobacco Product Manufacturer need only become bound by the Consent Decree in those Settling State in which the Settling State has filed a Released Claim against it, and (2) in the case of a Tobacco Product Manufacturer that signs this Agreement after the MSA Execution Date, such Tobacco Product Manufacturer, within a reasonable period of time after signing this Agreement, makes any payments, including interest thereon at the Prime Rate, that it would have been obligated to make in the intervening period had it been a signatory as of the MSA Execution Date. "Participating Manufacturer" shall also include the successor of a Participating Manufacturer. Except as expressly provided in this Agreement, once an entity becomes a Participating Manufacturer such entity shall permanently retain the status of Participating Manufacturer. Each Participating Manufacturer shall regularly report its shipments of Cigarettes in or to the 50 United States, the District of Columbia and Puerto Rico to Management Science Associates, Inc., or a successor entity as set forth in Subsection (mm). Solely for purposes of calculations pursuant to Subsection IX(d), a Tobacco Product Manufacturer that is not a signatory to this Agreement shall be deemed to be a "Participating Manufacturer" if the Original Participating Manufacturers unanimously consent in writing."
(2) Subsection IX(d) relates to Nonparticipating Manufacturer Adjustments.
Section XI(i)(2) and IX(i)(3) of the Master Settlement Agreement involve payments by subsequent participating manufacturers and providers as follows:
(1) A Subsequent Participating Manufacturer shall have payment obligations under this Agreement only in the event that its Market Share in any calendar year exceeds the greater of (1) its 1998 Market Share or (2) 125% of its 1997 Market Share, subject to the provisions of subsection (i)(4). In the year following any such calendar year, such Subsequent Participating Manufacturer shall make payments corresponding to those due in that same following year from the Original Participating Manufacturers pursuant to subsections VI(c), except for the payment due on March 31, 1999, IX(c)(1), IX(c)(2) and IX(e). The amounts of such corresponding payments by a Subsequent Participating Manufacturer are in addition to the corresponding payments that are due from the Original Participating Manufacturers and shall be determined as described in subsection (2) and (3) below. Such payments by a Subsequent Participating Manufacturer shall (A) be due on the same dates as the corresponding payments are due from Original Participating manufacturers; (B) be for the same purpose as such corresponding payments; and (C) be paid, allocated and distributed in the same manner as such corresponding payments.
(2) The base amount due from a Subsequent Participating Manufacturer on any given date shall be determined by multiplying (A) the corresponding base amount due on the same date from all of the Original Participating Manufacturers, as such base amount is specified in the corresponding subsection of this agreement and is adjusted by the Volume Adjustment, except for the provisions of subsection (B)(ii) of Exhibit E, but before such base amount is modified by any other adjustments, reductions or offsets, by (B) the quotient produced by dividing (i) the result of (x) such Subsequent Participating Manufacturer's Applicable Market Share, the applicable Market Share being that for the calendar year immediately preceding the year in which the payment in question is due, minus (y) the greater of (1) its 1998 Market Share or (2) 125% of its 1997 Market Share, by (ii) the aggregate Market Shares of the Original Participating Manufacturers, the applicable Market Shares being those for the calendar year immediately preceding the year in which the payment in question is due.
(3) Any payment due from a Subsequent Participating Manufacturer under subsections (1) and (2) above shall be subject, up to the full amount of such payment, to the Inflation Adjustment, the Nonsettling States Reduction, the NPM Adjustment, the offset for miscalculated or disputed payments described in subsection XI(i), the Federal Tobacco Legislation Offset, the Litigating Releasing Parties Offset and the offsets for claims over described in subsections XII(a)(4)(B) and XII(a)(8), to the extent that such adjustments, reductions or offsets would apply to the corresponding payment due from the Original Participating Manufacturers. Provided, however, that all adjustments and offsets to which a Subsequent Participating Manufacturer is entitled may only be applied against payments by such Subsequent Participating Manufacturer, if any, that are due within 12 months after the date on which the Subsequent Participating Manufacturer becomes entitled to such adjustment or makes the payment that entitles it to such offset, and shall not be carried forward beyond that time even if not fully used.
(4) For purposes of this Subsection (i), the 1997, or 1998, as applicable, Market Share, and 125% thereof, of those Subsequent Participating Manufacturers that either (A) became a signatory to the Agreement more than 60 days after the MSA Execution Date or (B) had no Market Share in 1997, or 1998, as applicable, shall equal zero.
The commission shall provide a copy of the Master Settlement Agreement for review or purchase to any person upon request and may charge a fee for doing so in accordance with Subsection 59-1-210(26).
As used in this chapter:
(1) "Brine shrimp eggs" means dormant, early stage brine shrimp embryos encapsulated as cysts that are harvested from within the state.
(2) "Tax year" means a one-year period beginning on February 1 and ending on January 31 of the following year.
(1) A person shall pay for each tax year a brine shrimp royalty of:
(a) for a tax year ending on or before January 31, 2026, 3.25 cents multiplied by the total number of pounds of unprocessed brine shrimp eggs that the person harvests within the state during the tax year; and
(b) for a tax year beginning on or after February 1, 2026, 3.75 cents multiplied by the total number of pounds of unprocessed brine shrimp eggs that the person harvests within the state during the tax year.
(2)
(a) A person that harvests unprocessed brine shrimp eggs shall report to the Division of Wildlife Resources the total number of pounds of unprocessed brine shrimp eggs harvested by that person for that tax year on or before the February 15 immediately following the last day of that tax year.
(b) The Division of Wildlife Resources shall provide the following information to the commission on or before the March 1 immediately following the last day of a tax year:
(i) the total number of pounds of unprocessed brine shrimp eggs harvested for that tax year; and
(ii) for each person that harvested unprocessed brine shrimp eggs for that tax year:
(A) the total number of pounds of unprocessed brine shrimp eggs harvested by that person for that tax year; and
(B) a current billing address for that person; and
(iii) any additional information required by the commission.
(c)
(i) The commission shall prepare and mail a billing statement to each person that harvested unprocessed brine shrimp eggs in a tax year by the March 30 immediately following the last day of a tax year.
(ii) The billing statement under Subsection (2)(c)(i) shall specify:
(A) the total number of pounds of unprocessed brine shrimp eggs harvested by that person for that tax year;
(B) the brine shrimp royalty that the person owes; and
(C) the date that the brine shrimp royalty payment is due as provided in Section 59-23-5.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules prescribing the information required under Subsection (2)(b)(iii).
(3) Revenue generated by the brine shrimp royalty shall be deposited as follows:
(a) the first $125,000 of the revenue generated in each fiscal year by the brine shrimp royalty shall be deposited into the Sovereign Lands Management Account created in Section 65A-5-1;
(b) for fiscal year 2027 and fiscal year 2028, the remainder of the revenue generated in each fiscal year by the brine shrimp royalty after the deposit under Subsection (3)(a) shall be deposited into the Species Protection Account created in Section 23A-3-214, except that if the aggregate amount of revenue deposited under Subsections 23A-3-214(2)(a), (c), (d), and (e):
(i) equals or exceeds $800,000, the Division of Finance shall transfer all brine shrimp royalty revenue collected under Subsection 23A-3-214(2)(b) from the Species Protection Account to the Sovereign Lands Management Account for the fiscal year; and
(ii) is less than $800,000, the Division of Finance shall:
(A) retain brine shrimp royalty revenue in the Species Protection Account in an amount equal to cover the shortfall below $800,000; and
(B) once the $800,000 threshold is met, transfer any remaining brine shrimp royalty revenue to the Sovereign Lands Management Account for the fiscal year; and
(c) on and after July 1, 2028, the remainder of the revenue generated in each fiscal year by the brine shrimp royalty after the deposit under Subsection (3)(a) shall be deposited into the Sovereign Lands Management Account.
(1) The brine shrimp royalty shall be paid to the commission by the person who harvests the unprocessed brine shrimp eggs.
(2) The payment shall be accompanied by the billing statement prepared by the commission in accordance with Section 59-23-4.
(3) The royalty is due on the April 30 immediately following the last day of the tax year.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to implement and enforce this chapter.
A person who harvests unprocessed brine shrimp eggs who fails to comply with this chapter is subject to penalties and interest as provided in Sections 59-1-401 and 59-1-402.
As used in this chapter:
(1)
(a) "Alternate feed material" means a natural or native material:
(i) mined for the extraction of its constituents or other matter from which source material may be extracted in a licensed uranium or thorium mill; and
(ii) may be reprocessed for its source material content.
(b) "Alternate feed material" does not include:
(i) material containing hazardous waste listed under 40 C.F.R. Part 261, Subpart D;
(ii) natural or unprocessed ore; or
(iii) naturally occurring radioactive materials containing greater than 15 picocuries per gram of radium-226.
(2) "Byproduct material" is as defined in 42 U.S.C. Sec. 2014(e)(2).
(3) "Class A low-level radioactive waste" means radioactive waste that is classified as class A waste under 10 C.F.R. 61.55.
(4) "Containerized class A waste" means class A low-level radioactive waste that is placed in the portion of a radioactive waste facility that is licensed to receive containerized class A waste.
(5)
(a) "Generator" means the same as that term is defined in Section 19-3-102.
(b) "Generator" includes an affiliate, subsidiary, or successor of the generator.
(6)
(a) "Gross receipts" means all consideration an owner or operator of a radioactive waste facility receives for the disposal of radioactive waste in the state, without any deduction or expense paid or accrued related to the disposal of the radioactive waste.
(b) "Gross receipts" do not include fees collected under Section 19-3-106 or any other taxes collected for a state or federal governmental entity.
(7)
(a) "Processed class A waste" means waste that:
(i) is class A low-level radioactive waste; and
(ii) has been concentrated by a processor.
(b) "Processed class A waste" does not include containerized class A waste.
(8) "Radioactive waste" means:
(a) alternate feed material;
(b) byproduct material;
(c) containerized class A waste;
(d) processed class A waste; or
(e) uncontainerized, unprocessed class A waste.
(9) "Radioactive waste facility" or "facility" means:
(a) a facility licensed under Section 19-3-105; or
(b) a uranium mill licensed under 10 C.F.R. Part 40, Domestic Licensing of Source Material.
(10)
(a) "Uncontainerized, unprocessed class A waste" means class A low-level radioactive waste that:
(i) is neither containerized class A waste, nor processed class A waste; and
(ii) must be disposed of under rules of the Nuclear Regulatory Commission in a licensed low-level radioactive waste disposal facility.
(b) "Uncontainerized, unprocessed class A waste" does not include alternate feed material.
(1) There is imposed a tax on a radioactive waste facility, or a processing or recycling facility, as provided in this chapter.
(2) Except as provided in Subsection (3), the tax is equal to the sum of the following amounts:
(a) 12% of the gross receipts of a radioactive waste facility derived from the disposal of containerized class A waste;
(b) 10% of the gross receipts of a radioactive waste facility derived from the disposal of processed class A waste;
(c) except as provided in Subsection (2)(e), 5% of the gross receipts of a radioactive waste facility derived from the disposal of uncontainerized, unprocessed class A waste from a governmental entity or an agent of a governmental entity:
(i) pursuant to a contract entered into on or after April 30, 2001;
(ii) pursuant to a contract substantially modified on or after April 30, 2001;
(iii) pursuant to a contract renewed or extended on or after April 30, 2001; or
(iv) not pursuant to a contract;
(d) except as provided in Subsection (2)(e), 5% of the gross receipts of a radioactive waste facility derived from the disposal of uncontainerized, unprocessed class A waste received by the facility from an entity other than a governmental entity or an agent of a governmental entity;
(e) .5% of the gross receipts of a radioactive waste facility derived from the disposal of uncontainerized, unprocessed class A waste received by the facility if the uncontainerized, unprocessed class A waste does not exceed 10% of the radioactive concentration limit for class A waste as defined in 10 C.F.R. Sec. 61.55;
(f) 5% of the gross receipts of a radioactive waste facility derived from the disposal of mixed waste, other than the mixed waste described in Subsection (2)(g), received from:
(i) an entity other than a governmental entity or an agent of a governmental entity; or
(ii) a governmental entity or an agent of a governmental entity:
(A) pursuant to a contract entered into on or after April 30, 2005;
(B) pursuant to a contract substantially modified on or after April 30, 2005;
(C) pursuant to a contract renewed or extended on or after April 30, 2005; or
(D) not pursuant to a contract;
(g) 10% of the gross receipts of a radioactive waste facility derived from the disposal of mixed waste:
(i)
(A) received from an entity other than a governmental entity or an agent of a governmental entity; or
(B) received from a governmental entity or an agent of a governmental entity:
(I) pursuant to a contract entered into on or after April 30, 2005;
(II) pursuant to a contract substantially modified on or after April 30, 2005;
(III) pursuant to a contract renewed or extended on or after April 30, 2005; or
(IV) not pursuant to a contract; and
(ii) that contains a higher radionuclide concentration level than the mixed waste received by any radioactive waste facility in the state before April 1, 2004;
(h) 10 cents per cubic foot of alternate feed material received at a radioactive waste facility for disposal or reprocessing; and
(i) 10 cents per cubic foot of byproduct material received at a radioactive waste facility for disposal.
(3) The tax is equal to 16.67% of the gross receipts of a radioactive waste facility derived from the disposal of radioactive waste received from a generator that ships to the radioactive waste facility for the first time between June 30, 2025, and June 30, 2028.
(4) For purposes of the tax imposed by this section, a fraction of a cubic foot is considered to be a full cubic foot.
(5) Except as provided in Subsections (2)(f) and (g), the tax imposed by this section does not apply to radioactive waste containing material classified as hazardous waste under 40 C.F.R. Part 261.
(1) On and after July 1, 2019, there is imposed a tax on a radioactive waste facility as provided in this section.
(2) The tax is equal to the sum of the following amounts:
(a) 12% of the gross receipts of a radioactive waste facility derived from the disposal of:
(i) concentrated depleted uranium; and
(ii) containerized waste disposed under Subsection 19-3-103.7(2);
(b) 10% of the gross receipts of a radioactive waste facility derived from the disposal of processed waste disposed under Subsection 19-3-103.7(2); and
(c) 5% of the gross receipts of a radioactive waste facility derived from the disposal of uncontainerized, unprocessed waste disposed under Subsection 19-3-103.7(2).
(1) The tax imposed by Section 59-24-103.5 shall be paid by a radioactive waste facility that receives radioactive waste for disposal or reprocessing.
(2) The payment shall be accompanied by the form prescribed by the commission.
(3) Except as otherwise provided in this chapter, the payment shall be paid quarterly on or before the last day of the month next succeeding each calendar quarterly period.
(1) Except as provided in Subsections (2), (3), and 59-24-103.8(5), the commission shall deposit the tax revenue collected under this chapter into the Uniform School Fund.
(2)
(a) The commission shall deposit the tax revenue collected under Subsection 59-24-103.5(3) into the Electrical Energy Development Investment Fund created in Section 79-6-1105.
(b) The commission may require a radioactive waste facility to share data related to radioactive waste delivered by a generator to the radioactive waste facility for the purposes of calculating the deposit of tax revenue as described in Subsection (2)(a).
(3) The commission shall deposit the tax revenue collected in accordance with Subsection 59-24-103.7(2)(a) into the Species Protection Account created in Section 23A-3-214.
(1) An owner or operator of a radioactive waste facility shall maintain records, statements, books, or accounts necessary to determine the amount of tax for which the owner or operator is liable to pay under this chapter.
(2) The commission may require an owner or operator of a radioactive waste facility, by notice served upon the person, or by rule, to make or keep the records, statements, books, or accounts the commission considers sufficient to show the amount of tax for which the owner or operator is liable to pay under this chapter.
(3) After notice by the commission, the owner or operator of a radioactive waste facility shall open the records, statements, books, or accounts specified in Subsection (2) for examination by the commission or its duly authorized agent.
The commission may make rules under Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement and enforce this chapter.
An owner or operator of a radioactive waste facility who fails to comply with this chapter is subject to penalties and interest as provided in Sections 59-1-401 and 59-1-402.
As used in this chapter:
(1) "County or municipality franchise fee" means a franchise fee that a county or municipality receives from a multi-channel video or audio service provider.
(2) "Franchise fee" is as defined in 47 U.S.C. Sec. 542, except that the term "cable operator" or "cable subscriber" shall be interpreted to include a multi-channel video or audio service provider.
(3)
(a) "Multi-channel video or audio service provider" means any person or group of persons that:
(i) provides multi-channel video or audio service and directly or indirectly owns a significant interest in the multi-channel video or audio service; or
(ii) otherwise controls or is responsible through any arrangement, the management and operation of the multi-channel video or audio service.
(b) "Multi-channel video or audio service provider" includes the following except as specifically exempted by state or federal law:
(i) a cable operator;
(ii) a CATV provider;
(iii) a multi-point distribution provider;
(iv) a MMDS provider;
(v) a SMATV operator;
(vi) a direct-to-home satellite service provider; or
(vii) a DBS provider.
(4) "Municipality" means a city or town.
Subject to Section 59-26-104.5, there is imposed as provided in this part a tax on the purchaser equal to 6.25% of amounts paid or charged for multi-channel video or audio service provided by a multi-channel video or audio service provider:
(1) within the state; and
(2) to the extent permitted by federal law.
A multi-channel video or audio service provider shall:
(1) collect the tax imposed by Section 59-26-103 from the purchaser;
(2) pay the tax collected under Subsection (1) to the commission:
(a) monthly on or before the last day of the month immediately following the last day of the previous month if:
(i) the multi-channel video or audio service provider is required to file a sales and use tax return with the commission monthly under Section 59-12-108; or
(ii) the multi-channel video or audio service provider is not required to file a sales and use tax return under Chapter 12, Sales and Use Tax Act; or
(b) quarterly on or before the last day of the month immediately following the last day of the previous quarter if the multi-channel video or audio service provider is required to file a sales and use tax return with the commission quarterly under Section 59-12-107; and
(3) pay the tax collected under Subsection (1) using a form prescribed by the commission.
(1) Beginning on January 1, 2008, a multi-channel video or audio service provider may claim a nonrefundable tax credit as provided in this section.
(2) The nonrefundable tax credit described in Subsection (1):
(a) may be claimed against the tax the multi-channel video or audio service provider would otherwise be required to collect under this chapter from its purchasers within the state; and
(b) is in an amount equal to 50% of the total amount of county or municipality franchise fees that the multi-channel video or audio service provider pays:
(i) to all of the counties and municipalities within the state that impose a county or municipality franchise fee; and
(ii) for the calendar quarter for which the multi-channel video or audio service provider files a return under this chapter.
(3) The nonrefundable tax credit described in Subsection (1) may not be carried forward or carried back.
(4)
(a) Subject to Subsections (4)(b) and (c), a multi-channel video or audio service provider shall pass through to its purchasers within the state an amount equal to the amount of the nonrefundable tax credit the multi-channel video or audio service provider claims for a calendar quarter.
(b) The amount that a multi-channel video or audio service provider passes through to its purchasers within the state under Subsection (4)(a) shall be passed through during the same calendar quarter as the calendar quarter for which the multi-channel video or audio service provider claims the nonrefundable tax credit.
(c) A tax under this chapter on amounts paid or charged for multi-channel video or audio service may not be reduced as a result of the amount a multi-channel video or audio service provider passes through to its customers within this state under this Subsection (4).
The commission shall deposit revenues generated by the tax imposed by this chapter into the General Fund.
(1) A multi-channel video or audio service provider shall maintain records, statements, books, or accounts necessary to determine the amount of tax that the multi-channel video or audio service provider is required to remit to the commission under this chapter.
(2) The commission may require a multi-channel video or audio service provider to make or keep the records, statements, books, or accounts the commission considers sufficient to show the amount of tax for which the multi-channel video or audio service provider is required to remit to the commission under this chapter:
(a) by notice served upon that multi-channel video or audio service provider; or
(b) by administrative rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(3) After notice by the commission, a multi-channel video or audio service provider shall open the records, statements, books, or accounts specified in Subsection (2) for examination by the commission or a duly authorized agent of the commission.
The commission may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement and enforce this chapter.
A multi-channel video or audio service provider that fails to comply with any provision of this chapter is subject to penalties and interest as provided in Sections 59-1-401 and 59-1-402.
(1) "Escort" means any individual who is available to the public for the purpose of accompanying another individual for:
(a) companionship; and
(b)
(i) a salary;
(ii) a fee;
(iii) a commission;
(iv) hire;
(v) profit; or
(vi) any amount similar to an amount listed in this Subsection (1)(b).
(2) "Escort service" means any person who furnishes or arranges for an escort to accompany another individual for:
(a) companionship; and
(b)
(i) a salary;
(ii) a fee;
(iii) a commission;
(iv) hire;
(v) profit; or
(vi) any amount similar to an amount listed in this Subsection (2)(b).
(3) "Nude or partially denuded individual" means an individual with any of the following less than completely and opaquely covered:
(a) genitals;
(b) the pubic region; or
(c) a female breast below a point immediately above the top of the areola.
(4) "Sexually explicit business" means a business at which any nude or partially denuded individual, regardless of whether the nude or partially denuded individual is an employee of the sexually explicit business or an independent contractor, performs any service:
(a) personally on the premises of the sexually explicit business;
(b) during at least 30 consecutive or nonconsecutive days within a calendar year; and
(c) for:
(i) a salary;
(ii) a fee;
(iii) a commission;
(iv) hire;
(v) profit; or
(vi) any amount similar to an amount listed in this Subsection (4)(c).
(1) A tax is imposed on a sexually explicit business equal to 10% of amounts paid to or charged by the sexually explicit business for the following transactions:
(a) an admission fee;
(b) a user fee;
(c) a retail sale of tangible personal property made within the state;
(d) a sale of:
(i) food and food ingredients as defined in Section 59-12-102; or
(ii) prepared food as defined in Section 59-12-102;
(e) a sale of a beverage; and
(f) any service.
(2)
(a) Except as provided in Subsection (2)(b), a tax is imposed on an escort service equal to 10% of amounts paid or charged by the escort service for any transaction that involves providing an escort to another individual.
(b) Notwithstanding Subsection (2)(a), the tax imposed by Subsection (2)(a) does not apply to a transaction that is subject to the tax imposed in Subsection (1).
(3) The tax imposed by this section:
(a) may not be imposed on any sales and use tax collected or paid under Chapter 12, Sales and Use Tax Act; and
(b) is subject to an agreement sales and use tax under Chapter 12, Sales and Use Tax Act.
(4) The commission shall administer this chapter in accordance with Chapter 12, Part 1, Tax Collection.
(1) Subject to Subsection (2), a sexually explicit business or escort service subject to the tax imposed by this chapter shall file a return with the commission and pay the tax calculated on the return to the commission:
(a) quarterly on or before the last day of the month immediately following the last day of the previous calendar quarter if:
(i) the sexually explicit business or escort service is required to file a quarterly sales and use tax return with the commission under Section 59-12-107; or
(ii) the sexually explicit business or escort service is not required to file a sales and use tax return with the commission under Chapter 12, Sales and Use Tax Act; or
(b) monthly on or before the last day of the month immediately following the last day of the previous calendar month if the sexually explicit business is required to file a monthly sales and use tax return with the commission under Section 59-12-108.
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to:
(a) establish standards for determining whether an operation is a sexually explicit business or escort service; and
(b) determine, for purposes of Section 59-27-102, amounts that are similar to an amount paid for:
(i) a salary;
(ii) a fee;
(iii) a commission;
(iv) hire; or
(v) profit.
(1) There is created an expendable special revenue fund called the "Sexually Explicit Business and Escort Service Fund."
(2)
(a) Except as provided in Subsection (3), the fund consists of all amounts collected by the commission under this chapter.
(b)
(i) The money in the fund shall be invested by the state treasurer pursuant to Title 51, Chapter 7, State Money Management Act.
(ii) All interest or other earnings derived from the fund money shall be deposited in the fund.
(3) Notwithstanding any other provision of this chapter, the commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenues the commission collects from a tax under this chapter.
(4)
(a) Fund money shall be used as provided in this Subsection (4).
(b) The Department of Corrections shall use 60% of the money in the fund, in addition to existing budgets, to provide treatment services to nonworking or indigent adults who:
(i) have been convicted of an offense under Title 76, Chapter 5, Part 4, Sexual Offenses, other than Section 76-5-417, 76-5-418, 76-5-419, or 76-5-420; and
(ii) are not currently confined or incarcerated in a jail or prison.
(c) The Division of Adult Probation and Parole created in Section 64-14-202 shall use 15% of the money in the fund to provide outpatient treatment services to individuals who:
(i) have been convicted of an offense under Title 76, Chapter 5, Part 4, Sexual Offenses, other than Section 76-5-417, 76-5-418, 76-5-419, or 76-5-420; and
(ii) are not currently confined or incarcerated in a jail or prison.
(d) The Department of Corrections shall use 10% of the money in the fund, in addition to existing budgets, to implement treatment programs for juveniles who have been convicted of an offense under Title 76, Chapter 5, Part 4, Sexual Offenses, other than Section 76-5-417, 76-5-418, 76-5-419, or 76-5-420.
(e) The attorney general shall use 15% of the money in the fund to provide funding for any task force:
(i) administered through the Office of the Attorney General; and
(ii) that investigates and prosecutes individuals who use the Internet to commit crimes against children.
(1) An owner or operator of a sexually explicit business or escort service shall maintain records, statements, books, or accounts necessary to determine the amount of tax for which the owner or operator is liable to pay under this chapter.
(2) The commission may require an owner or operator of a sexually explicit business or escort service, by notice served on the person, to make or keep the records, statements, books, or accounts described in Subsection (1) in a manner in which the commission considers sufficient to show the amount of tax for which the owner or operator is liable to pay under this chapter.
(3) After notice by the commission, the owner or operator of a sexually explicit business or escort service shall open the records, statements, books, or accounts specified in this section for examination by the commission or an authorized agent of the commission.
An owner or operator of a sexually explicit business or escort service that fails to comply with this chapter is subject to:
(1) penalties provided in Section 59-1-401; and
(2) interest provided in Section 59-1-402.
As used in this chapter:
(1) "Agreement" means the same as that term is defined in Section 59-12-102.
(2) "Certified service provider" means the same as that term is defined in Section 59-12-102.
(3) "Initial rate" means a rate of 0.32%.
(4) "Model 2 seller" means the same as that term is defined in Section 59-12-102.
(5) "Purchaser" means the same as that term is defined in Section 59-12-102.
(6) "Sales price" means the same as that term is defined in Section 59-12-102.
(7) "Secondary rate" means a rate of 0.75%.
(8) "Seller" means the same as that term is defined in Section 59-12-102.
(1) Subject to the other provisions of this chapter, the state shall impose a tax on the transactions described in Subsection 59-12-103(1)(i) at:
(a) the initial rate; and
(b) the secondary rate.
(2) The tax imposed under this chapter is in addition to any other taxes imposed on the transactions described in Subsection 59-12-103(1)(i).
(3)
(a)
(i) Subject to Subsection (3)(a)(ii), the commission shall deposit 6% of the revenue the state collects from the tax under this chapter at the initial rate into the Hospitality and Tourism Management Education Account created in Section 53F-9-501 to fund the Hospitality and Tourism Management Career and Technical Education Pilot Program created in Section 53E-3-515.
(ii) The commission may not deposit more than $300,000 into the Hospitality and Tourism Management Education Account under Subsection (3)(a)(i) in a fiscal year.
(b) Except for the amount deposited into the Hospitality and Tourism Management Education Account under Subsection (3)(a) and the administrative charge retained under Subsection 59-28-104(4), the commission shall deposit the remainder of the revenue the state collects from the tax under this chapter at the initial rate into the Outdoor Recreation Infrastructure Account created in Section 79-8-106 to fund:
(i) the Outdoor Recreational Infrastructure Grant Program created in Section 79-8-401; and
(ii) the Recreation Restoration Infrastructure Grant Program created in Section 79-8-202.
(4)
(a) The commission shall deposit 33% of the revenue the state collects from the tax at the secondary rate into the Outdoor Recreation Mitigation Grant Fund created in Section 79-9-103.
(b) The commission shall distribute the remaining revenue the state collects from the tax under this chapter at the secondary rate to the Division of Finance, which shall transfer the revenue into the General Fund.
(5)
(a) In addition to the imposition of tax described in Subsection (1), the state shall impose a tax at the rate of 0.25% on the transactions described in Subsection 59-12-103(1)(i) that take place within a county of the first class.
(b) The commission shall distribute the revenue the state collects from the tax described in Subsection (5)(a) to the Division of Finance, which shall transfer the revenue into the Transient Room Tax Fund created in Section 63N-3-403.
(1) Except as provided in Subsection (2), the commission shall administer, collect, and enforce a tax under this chapter in accordance with:
(a) Chapter 1, General Taxation Policies; and
(b) the same procedures used to administer, collect, and enforce the tax under Chapter 12, Part 1, Tax Collection.
(2) A tax under this chapter is not subject to Section 59-12-107.1 or 59-12-123.
(3) A seller required to collect a tax under this chapter may retain 6% of any amounts the seller is required to remit to the commission under this chapter for the costs of collecting the tax.
(4) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenues the commission collects from a tax under this chapter.
A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this chapter if the seller's or certified service provider's failure to collect the tax is as a result of the seller's or certified service provider's reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates or boundaries regarding a tax under this chapter; or
(2) indicating the taxability of transactions described in Subsection 59-12-103(1)(i).
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this chapter if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider's or model 2 seller's failure to collect a tax required under this chapter is as a result of the seller's or certified service provider's reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that, if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice, the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this chapter on the incorrectly classified product category.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this chapter on the item or transaction.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this chapter or an underpayment if:
(i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this chapter or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this chapter or an underpayment if:
(a) the purchaser's seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term in the library of definitions that is listed as taxable or exempt, included in or excluded from "sales price," or included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term in the library of definitions that is listed as taxable or exempt, included in or excluded from "sales price," or included in or excluded from a definition.
Amounts paid or charged for accommodations and services, as defined in Section 63H-1-205, are exempt from the tax described in Section 59-28-103, if the amounts are paid to or charged by a proprietor subject to the MIDA accommodations tax imposed under Section 63H-1-205.
As used in this chapter:
(1) "Charging station" means equipment designed to deliver electric energy to an electric vehicle for a fee.
(2) "Charging station operator" means a person who owns or operates a charging station in the state.
(3) "Charging station subscription" means a service for which a person pays a charging station operator a subscription fee for a reduced charging rate or unlimited charging during the subscription period.
(4) "Electric vehicle" means a qualifying electric vehicle or qualifying plug-in hybrid vehicle.
(5) "Qualifying electric vehicle" means the same as that term is defined in Section 11-42a-102.
(6) "Qualifying plug-in hybrid vehicle" means the same as that term is defined in Section 11-42a-102.
(1) There is levied a tax upon the retail sale of:
(a) electric current sold by a charging station operator to charge or recharge an electric vehicle; and
(b) a charging station subscription by a charging station operator to charge or recharge an electric vehicle.
(2) The tax levied under Subsection (1) is imposed at a rate of 12.5% for a charging station operator that charges:
(a) per kilowatt hour as described in Subsection (4)(a);
(b) per hour as described in Subsection (4)(a);
(c) a subscription fee for charging services as described in Subsection (4)(b); or
(d) a combination of Subsections (2)(a) through (c).
(3)
(a) A charging station operator shall remit a return on the tax imposed in Subsection (1) in an electronic format approved by the commission on the same schedule as the charging station operator's sales and use tax filing.
(b) The tax amount reported on the return described in Subsection (3)(a) is due and payable according to the same terms and schedule as the charging station operator's sales and use tax remittance schedule.
(4)
(a) For a charging station operator that charges a fee per kilowatt hour, the charging station operator shall furnish with each sale an itemized invoice, including:
(i) the name of the charging station operator;
(ii) the date of sale;
(iii) the number of kilowatt hours sold, or the length of time using the charging station;
(iv) the sales price per kilowatt hour, or per hour for use of the charging station; and
(v) the total sales price of the transaction.
(b) For a charging station operator that charges a fee for a charging station subscription, the charging station operator shall furnish with each sale an itemized invoice, including:
(i) the name of the charging station operator;
(ii) the date of sale;
(iii) the subscription price; and
(iv) the total sales price of the transaction.
(c) In addition to the information required in Subsection (4)(a) or (b), a charging station operator shall ensure that an invoice indicates on a separate line the tax imposed under Subsection (1).
(5) In addition to the tax required by this part, a charging station operator shall pay a penalty as provided in Section 59-1-401, plus interest at the rate and in the manner prescribed in Section 59-1-402, if the charging station operator subject to this section fails to:
(a) pay the tax prescribed by this section by the due date described in Subsection (3); or
(b) file a return required by this section by the due date described in Subsection (3).
(6) The commission shall deposit revenue from the tax imposed in Subsection (1) into the Transportation Fund.
(1) The commission shall administer, collect, and enforce a tax under this chapter in accordance with:
(a) Chapter 1, General Taxation Policies; and
(b) the same procedures used to administer, collect, and enforce the tax under Chapter 12, Part 1, Tax Collection.
(2) A charging station operator required to collect a tax under this chapter may retain 6% of any amounts the seller is required to remit to the commission under this chapter for the costs of collecting the tax.
(3) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenues the commission collects from a tax under this chapter.
As used in this chapter:
(1) "Cannabinoid product" means the same as that term is defined in Section 4-41-102.
(2) "Licensee" means a retailer that holds a valid license under Part 2, Licensing, to sell a cannabinoid product.
(3) "Retail price" means the amount charged by a retailer for a cannabinoid product.
(4) "Retailer" means a person that sells a cannabionoid product to a consumer for personal use.
(1) A person may not sell, offer to sell, or distribute a cannabinoid product in this state without first:
(a) obtaining a license from the commission under Section 59-31-202; and
(b) complying with the bonding requirement described in Section 59-31-202.
(2) It is a class B misdemeanor for a person to violate Subsection (1).
(1) The commission shall issue a license to sell a cannabinoid product to a retailer that submits an application, on a form created by the commission, that includes:
(a) the retailer's name;
(b) the address of the location permitted under Section 4-41-103.3 where the retailer sells the cannabinoid product; and
(c) any other information the commission requires to implement this chapter.
(2) A license is:
(a) valid at only one fixed business address;
(b) valid for three years;
(c) valid only for a physical location; and
(d) renewable if a licensee meets the criteria for licensing described in Subsection (1).
(3)
(a) The commission shall require a retailer that is responsible under this part for the collection of tax on a cannabinoid product to post a bond.
(b) Subject to Subsection (3)(c), the commission shall determine the form and amount of the bond.
(c) The minimum amount of the bond shall be $500.
(4) In accordance with Title 63G, Chapter 3, Utah Rulemaking Authority, the commission may make rules to establish the additional information described in Subsection (1)(c) that a retailer shall provide in the application described in Subsection (1).
(5) The commission may not charge a fee for a license under this section.
(6) The license under this section is in addition to a license required under Section 4-41-103.3.
(7)
(a) The commission shall maintain a public list that includes the identity of each person licensed under this section.
(b) The list shall:
(i) include the type of license possessed; and
(ii) be updated by the commission at least once per quarter.
(1) The commission shall, on a reasonable notice and after a hearing, revoke the license of any licensee violating any provisions of this chapter.
(2) A license may not be reissued to a licensee described in Subsection (1) until the licensee has complied with the requirements of this chapter, including paying any:
(a) tax due under Part 3, Tax;
(b) penalty as provided in Section 59-1-401; and
(c) interest as provided in Section 59-1-402.
(1) A tax is imposed on a cannabinoid product at a rate of .10 multiplied by the retail price.
(2)
(a) A licensee shall collect the tax imposed under Subsection (1) from a purchaser at the time the cannabinoid product is sold.
(b) A consumer that purchases or receives an untaxed cannabinoid product shall pay the tax at the time the cannabinoid product is first received in this state.
(1)
(a) The licensee that collects the tax imposed on a cannabinoid product shall remit to the commission, in an electronic format approved by the commission:
(i) the tax due in the previous quarter; and
(ii) the tax return.
(b) The tax collected and the return are due on or before the last day of April, July, October, and January.
(2) A licensee that sells a cannabinoid product to a purchaser shall maintain records to determine the amount of tax due under this part for a period of three years.
(3)
(a) A consumer that receives or purchases an untaxed cannabinoid product for use or other consumption shall:
(i) file with the commission, on a form provided by the commission, a statement showing the quantity and description of the cannabinoid product subject to tax under this part; and
(ii) pay the tax imposed by this part on the cannabinoid product.
(b) The consumer shall file the statement described in Subsection (3)(a) and pay the tax due on or before the last day of the month immediately following the month during which the consumer purchased an untaxed cannabinoid product.
(c) A consumer shall maintain records necessary to determine the amount of tax the consumer is liable to pay under this part for a period of three years after the day on which the consumer filed the statement required by this section.
(4) A tourist who imports an untaxed cannabinoid product into the state does not need to file the statement described in Subsection (3) or pay the tax if the cannabinoid product is for the tourist's own use or consumption while in this state.
(5) In addition to the tax required by this part, a person shall pay a penalty as provided in Section 59-1-401, plus interest at the rate and in the manner provide in Section 59-1-402, if a person subject to this section fails to:
(a) pay the tax imposed by this part;
(b) pay the tax on time; or
(c) file a return or statement required by this part.
(6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in the manner provided in Section 59-1-402.
(7)
(a) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from revenue generated by the tax under this part.
(b) The commission shall deposit 47% of the revenue generated by the tax imposed by this part into the General Fund and the remaining revenue into the Cannabinoid Proceeds Restricted Account created in Section 59-31-401.
(1) There is created within the General Fund a restricted account known as the "Cannabinoid Proceeds Restricted Account."
(2) The Cannabinoid Proceeds Restricted Account consists of:
(a) revenue collected from the tax imposed by Section 59-31-301; and
(b) amounts appropriated by the Legislature.
(3) Subject to appropriation, money in the account may be used for the following:
(a) enforcement of Title 4, Chapter 41, Hemp and Cannabinoid Act by the Department of Agriculture and Food;
(b) investigations described in Section 77-39-101, regarding cannabinoid products;
(c) the Industrial Hemp Grant Program created in Section 63N-3-1302; and
(d) provided to counties, cities, and towns in proportion to the county's, city's, or town's distribution under Section 59-12-205 for the preceding fiscal year.
If the commission suspects that a cannabinoid product is being sold in the state in violation of a law other than a law described in this chapter, the commission shall report the name and tax identification number of the seller and the cannabinoid product:
(1) to the Department of Agriculture and Food; and
(2) within 30 days after the day on which the commission becomes aware of the sale.
As used in this chapter:
(1) "Barrel" means an amount equal to 42 gallons of oil at atmospheric pressure and at a temperature of 60 degrees Fahrenheit.
(2) "Condensate" means hydrocarbons, regardless of gravity, that occur naturally in the gaseous phase in the reservoir and are separated from the natural gas as liquids through the process of condensation either in the reservoir, in the wellbore, or at the surface in field separators.
(3) "Crude oil" means hydrocarbons, regardless of gravity, that occur naturally in the liquid phase in the reservoir and are produced at the wellhead in liquid form.
(4) "Development well" means the same at that term is defined in Section 59-5-101.
(5)
(a) "Gas" means:
(i) natural gas;
(ii) natural gas liquids; or
(iii) any mixture of natural gas and natural gas liquids.
(b) "Gas" does not include any gaseous or liquid substance processed from coal, oil shale, tar sands, or any other hydrocarbon substance that occurs naturally in solid form.
(6) "MCF" means an amount equal to 1,000 cubic feet of gas at a pressure of 14.73 pounds per square inch and at a temperature of 60 degrees Fahrenheit.
(7) "Natural gas" means hydrocarbons, other than oil and natural gas liquids, that occur naturally in the gaseous phase in the reservoir and are produced and recovered at the wellhead in gaseous form.
(8) "Natural gas liquids" means hydrocarbons, regardless of gravity, that are separated from natural gas as liquids in gas processing plants through the process of condensation, absorption, adsorption, or other methods.
(9)
(a) "Oil" means:
(i) crude oil;
(ii) condensate; or
(iii) any mixture of crude oil and condensate.
(b) "Oil" does not include any gaseous or liquid substance processed from coal, oil shale, tar sands, or any other hydrocarbon substance that occurs naturally in solid form.
(10)
(a) "Oil or gas mitigation fee" means any fee or tax, whether one-time or ongoing, that is imposed by a county on oil or gas producers for purposes of mitigating the direct impacts of oil or gas production on county roads.
(b) "Oil or gas mitigation fee" includes:
(i) a transportation service fee or other fee established under Title 17, Chapter 27a, County Land Use, Development, and Management Act, meeting the requirements of Subsection (10)(a); and
(ii) an impact fee established under Title 11, Chapter 36a, Impact Fees Act, meeting the requirements of Subsection (10)(a).
(c) "Oil or gas mitigation fee" does not include the tax imposed by this chapter.
(11) "Produced" means extracted at the wellhead.
(12) "Producer" means the operator of the well from which oil or gas is produced.
(13) "Qualifying road" means a paved public road that is:
(a) a class B road as described in Section 72-3-103; or
(b) a class C road as described in Section 72-3-104.
(14) "Qualifying special service district" means a special service district under Title 17D, Chapter 1, Special Service District Act, that provides construction, repair, maintenance, or improvements for public roads.
(15) "Recipient county" means a county that receives revenue collected from the tax imposed by this chapter.
(16) "Stripper well" means the same as that term is defined in Section 59-5-101.
(17) "Wildcat well" means the same as that term is defined in Section 59-5-101.
(1)
(a) Except as provided in Subsection (2), a local impact mitigation tax is imposed at the rate specified in Subsection (1)(b) on the total volume of oil and gas that is:
(i) produced within the state on or after January 1, 2026, and before January 1, 2029; and
(ii)
(A) saved;
(B) sold; or
(C) transported from the field from which the oil or gas was produced.
(b) The rate of the tax under this chapter is:
(i) 5 cents per barrel of oil described in Subsection (1)(a); and
(ii) 1/4 cent per MCF of gas described in Subsection (1)(a).
(2) The tax under this chapter does not apply to:
(a) oil or gas produced by the United States;
(b) oil or gas produced by the state or a political subdivision of the state;
(c) oil or gas produced by an Indian or Indian tribe as defined in Section 9-9-101 from land under the jurisdiction of the United States;
(d) oil or gas produced from a stripper well;
(e) oil or gas produced from a wildcat well during the first 12 months of well production;
(f) oil or gas produced from a development well during the first six months of well production; or
(g) gas produced or consumed for the purpose of processing oil or gas to a marketable state by removing natural gas liquids or contaminants.
(3) If oil or gas is shipped outside the state:
(a) the shipment constitutes a sale; and
(b) the oil or gas is subject to the tax imposed by this chapter.
(4)
(a) Except as provided in Subsection (4)(b), if oil or gas is stockpiled, the tax under this chapter is not imposed until the oil or gas is:
(i) sold;
(ii) transported; or
(iii) delivered.
(b) If oil or gas is stockpiled for more than two years, the oil or gas is subject to the tax imposed by this chapter.
(5) The tax under this chapter:
(a) is separate from and in addition to all other taxes provided by law, including the severance tax imposed under Chapter 5, Part 1, Oil and Gas Severance Tax;
(b) does not affect the requirements applicable to the severance tax imposed under Chapter 5, Part 1, Oil and Gas Severance Tax, including the requirements for the disposition of severance tax revenue under Sections 59-5-116 and 59-5-119; and
(c) is not a severance tax for purposes of Utah Constitution, Article XIII, Section 5, Subsection (9).
(6) Unless specifically authorized by statute, a county may not impose an oil or gas mitigation fee.
(1)
(a) The tax imposed by this chapter shall be paid:
(i) by the producer of oil or gas subject to the tax to the commission; and
(ii) on a quarterly basis on or before the last day of the month following each calendar quarterly period electronically in a manner prescribed by the commission.
(b) For purposes of this Subsection (1), the commission may require necessary information from producers regarding oil or gas production.
(2) The commission shall distribute the revenue collected from the tax under this chapter:
(a) to the county within which the revenue is collected from oil or gas production; and
(b) within 60 days from the date on which the tax is paid.
(3)
(a)
(i) If a county has created a qualifying special service district, the county treasurer shall transfer the revenue distributed to the county under Subsection (2) to the qualifying special service district.
(ii) A qualifying special service district described in Subsection (3)(a)(i) shall expend the revenue as provided in Subsection (4).
(b)
(i) If a county has not created a qualifying special service district, the county treasurer shall deposit the revenue distributed to the county under Subsection (2) into a special revenue fund that is created to hold the revenue and is separate from the county's general fund.
(ii) A county described in Subsection (3)(b)(i) shall expend the revenue as provided in Subsection (4).
(4) The revenue collected from the tax under this chapter may only be expended for transportation projects that mitigate the direct impacts of oil or gas production on qualifying roads located within the recipient county.
(5) The commission shall:
(a) administer, collect, and enforce the tax under this chapter in accordance with Chapter 1, General Taxation Policies; and
(b) retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from the tax under this chapter.
(1) Each recipient county shall submit a written report to the Natural Resources, Agriculture, and Environment Interim Committee on or before September 1, 2029.
(2) The report described in Subsection (1) shall include:
(a) an accounting of the county's use of revenue received by the county from the tax under this chapter, including information regarding each transportation project for which the revenue has provided funding;
(b) for each transportation project described under Subsection (2)(a):
(i) an explanation as to how the transportation project mitigates the direct impacts of oil or gas production on qualifying roads located within the county; and
(ii) a description of any other funding sources in addition to the revenue from the tax under this chapter; and
(c) any recommendations for legislative action to reauthorize the tax for the purpose described in Subsection 59-32-103(4).
(3) The Natural Resources, Agriculture, and Environment Interim Committee shall:
(a) study any recommendations provided by a recipient county under Subsection (2)(c); and
(b) if the Natural Resources, Agriculture, and Environment Interim Committee decides to recommend legislative action to the Legislature, prepare legislation for consideration by the Legislature in the next general session.
As used in this chapter:
(1) "Commercially operational" means that a wind or solar electric generation facility generates commercial amounts of electricity.
(2) "Nameplate capacity" means the sum of the maximum rated outputs of all electrical generating equipment within a facility under specific conditions designated by the manufacturer, as indicated on individual nameplates physically attached to the equipment.
(3) "Pass-through entity" means the same as that term is defined in Section 59-10-1402.
(4) "Renewable energy project entity" means a corporation or pass-though entity that directly owns a wind or solar electric generation facility in the state that has executed a power purchase agreement or other binding agreement to purchase the output of a wind or solar electric generation facility owned by the renewable energy project entity after January 1, 2026.
(5)
(a) "Wind or solar electric generation facility" means a commercially operational facility with the capacity to generate electricity from wind or solar that has not reached the end of the facility's operational life that uses:
(i) wind equipment with a nameplate capacity of at least 20 megawatts generating alternating current electricity; or
(ii) solar equipment with a nameplate capacity of at least 20 megawatts generating alternating current electricity.
(b) "Wind or solar electric generation facility" does not include a facility that generates wind or solar electricity primarily for onsite consumption by the owner or tenant of the property on which the facility is located.
(1)
(a) Beginning January 1, 2026, there is annually levied a tax on a renewable energy project entity in the state for each calendar year following the calendar year in which a wind or solar electric generation facility owned by the renewable energy project entity becomes commercially operational.
(b) Notwithstanding the other provisions of this chapter, a renewable energy project entity does not owe a tax under this chapter for a wind or solar electric generation facility project that before December 31, 2025, was:
(i) operating;
(ii) under construction; or
(iii) subject to a power purchase agreement or other binding agreement to purchase output of the wind or solar electric generation facility.
(2) The tax levied under Subsection (1) is calculated by multiplying the megawatts, or portion of megawatts, of operational generating alternating current nameplate capacity of a wind or solar electric generation facility owned by the renewable energy project entity by $1,050.
(3)
(a) A renewable energy project entity in the state shall electronically file with the commission, on or before March 1 of each year, a statement containing the information required by Subsection (3)(b) in a manner prescribed by the commission.
(b) The statement required in Subsection (3)(a) shall include:
(i) the name, description, and location of a wind or solar electric generation facility owned by the renewable energy project entity in the state;
(ii) the nameplate capacity described in Subsection (2); and
(iii) any other reasonable and necessary information required by the commission.
(c) A statement or report required to be filed with the commission shall be signed and sworn to by the chief executive officer of the renewable energy project entity or the chief executive officer's designee.
(d) A willful false swearing as to a material fact set out in the statement or report required under this Subsection (3) is a violation of Section 76-8-504 and may result in prosecution.
(4) The tax imposed by this chapter does not apply to a wind or solar electric generation facility that is owned or operated by:
(a) the United States;
(b) the state or a political subdivision of the state;
(c) an Indian or Indian tribe, as defined in Section 9-9-101; or
(d) a distribution electric cooperative or a wholesale electric cooperative, as defined in Section 54-2-1.
(5) The commission shall deposit revenue from the tax imposed in this section into the Species Protection Account created by Section 23A-3-214.
The commission shall administer, collect, and enforce a tax under this chapter in accordance with Chapter 1, General Taxation Policies.
The tax imposed by this chapter is due and payable on or before March 1 of the year next succeeding the calendar year when the renewable energy project entity is subject to the tax imposed under Section 59-33-201.
As used in this chapter:
(1) "Canoe" means the same as that term is defined in Section 59-2-405.
(2) "Division" means the Motor Vehicle Division created in Section 41-1a-106.
(3) "Government entity" means the United States, state, county, municipality, or any political subdivision.
(4) "Jon boat" means the same as that term is defined in Section 59-2-405.2.
(5) "Personal watercraft" means the same as that term is defined in Section 73-18-2.
(6) "Pontoon" means the same as that term is defined in Section 59-2-405.2.
(7) "Sailboat" means the same as that term is defined in Section 73-18-2.
(8) "Utility boat" means the same as that term is defined in Section 59-2-405.2.
(9) "Vessel" means the same as that term is defined in Section 73-18-2.
(1) There is imposed an annual Boating Grant Tax on a vessel required to be registered under Section 73-18-7.
(2) The division shall:
(a) collect the tax imposed in Subsection (1); and
(b) deposit the revenue from the tax imposed in Subsection (1) into the Utah Boating Grant Account created in Section 73-18-22.3.
(3) Except as provided in Section 59-34-104, the Boating Grant Tax is:
(a) for personal watercraft:
| | Age of Personal Watercraft | Utah Boating Grant Tax | | --- | --- | --- | | | 12 or more years | $5 | | | 9 or more years but less than 12 years | $12 | | | 6 or more years but less than 9 years | $17 | | | 3 or more years but less than 6 years | $22 | | | Less than 3 years | $27 |
(b) for a collapsible inflatable vessel, pontoon, or sailboat, regardless of age:
| | Length of Vessel | Utah Boating Grant Tax | | --- | --- | --- | | | 15 feet or more in length but less than 19 feet in length | $7 | | | 19 feet or more in length but less than 23 feet in length | $12 | | | 23 feet or more in length but less than 27 feet in length | $20 | | | 27 feet or more in length but less than 31 feet in length | $37 |
(c) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon, sailboat, or utility boat, that is 15 feet or more in length but less than 19 feet in length:
| | Age of Vessel | Utah Boating Grant Tax | | --- | --- | --- | | | 12 or more years | $12 | | | 9 or more years but less than 12 years | $32 | | | 6 or more years but less than 9 years | $40 | | | 3 or more years but less than 6 years | $55 | | | Less than 3 years | $75 |
(d) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon, sailboat, or utility boat, that is 19 feet or more in length but less than 23 feet in length:
| | Age of Vessel | Utah Boating Grant Tax | | --- | --- | --- | | | 12 or more years | $25 | | | 9 or more years but less than 12 years | $60 | | | 6 or more years but less than 9 years | $87 | | | 3 or more years but less than 6 years | $110 | | | Less than 3 years | $137 |
(e) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon, sailboat, or utility boat, that is 23 feet or more in length but less than 27 feet in length:
| | Age of Vessel | Utah Boating Grant Tax | | --- | --- | --- | | | 12 or more years | $50 | | | 9 or more years but less than 12 years | $90 | | | 6 or more years but less than 9 years | $120 | | | 3 or more years but less than 6 years | $155 | | | Less than 3 years | $200 |
(f) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon, sailboat, or utility boat, that is 27 feet or more in length but less than 31 feet in length:
| | Age of Vessel | Utah Boating Grant Tax | | --- | --- | --- | | | 12 or more years | $60 | | | 9 or more years but less than 12 years | $125 | | | 6 or more years but less than 9 years | $175 | | | 3 or more years but less than 6 years | $250 | | | Less than 3 years | $350 |
(g) $5 regardless of the age of the vessel if the vessel is:
(i) less than 15 feet in length;
(ii) a canoe;
(iii) a jon boat; or
(iv) a utility boat.
Payment of the Boating Grant Tax, as created in Section 59-34-102, under this chapter is not required for:
(1) a vessel owned by a government entity and being operated within the scope of the government entity's duties;
(2) a vessel that:
(a) is already covered by a valid registration issued by vessel's nonresident owner's resident state; and
(b) has not been within the state of Utah in excess of 60 days of the calendar year;
(3) a vessel from a country other than the United States temporarily using the waters of this state; or
(4) a ship's lifeboat.
For the purposes of administering the Boating Grant Tax imposed by this chapter, the length of a vessel shall be determined as provided in Subsections 59-2-405.2(7)(a) through (c).
As used in this chapter:
(1) "Advertisement" means any written, oral, or graphic statement or representation.
(2) "Business entity" means the same as that term is defined in Section 59-6-101.
(3) "Gross receipts" means the total amount of consideration received for a transaction, without deduction for the cost of materials, labor, service, or other expenses.
(4) "Impression" means a single instance in which targeted advertising is delivered to an audience or individual, regardless of whether the audience or individual interacts with the advertisement.
(5) "Targeted advertising" means a transaction in which a business entity:
(a) delivers, by any means, an advertisement to an audience or individual on behalf of an advertiser and in exchange for consideration; and
(b) employs the following practices or features to facilitate the transaction described in Subsection (5)(a):
(i) the business entity sells advertising space to the advertiser through a bidding process;
(ii) the business entity obtains or develops individualized data profiles to deliver the advertisement; and
(iii) an individual to whom the business entity delivers the advertisement has the ability to interface with the advertisement to access information or make a purchase, including through a link or a quick response (QR) code.
(6) "Targeted advertising entity" means a business entity:
(a) that during the taxable year:
(i) delivers targeted advertising to an audience or individual located in the state; and
(ii) generates gross receipts of:
(A) $1,000,000 or more derived from targeted advertising in the state, as determined in accordance with Subsection 59-35-201(3); and
(B) $100,000,000 or more derived from all targeted advertising, regardless of location; and
(b) for which the business entity's gross receipts for the taxable year derived from all targeted advertising, regardless of location, constitute 50% or more of the business entity's total gross receipts for the taxable year.
(1) Beginning January 1, 2027, there is annually levied a tax on a targeted advertising entity as provided in this section.
(2) The tax imposed in this section:
(a) is in addition to all other taxes; and
(b) is an amount equal to the product of:
(i) the rate specified in Subsection 59-12-103(2)(a)(i)(A); and
(ii) subject to Subsection (3), the targeted advertising entity's gross receipts for the taxable year derived from targeted advertising in the state.
(3) The amount described in Subsection (2)(b)(ii) is equal to the product of:
(a) the targeted advertising entity's gross receipts for the taxable year derived from all targeted advertising, regardless of delivery location; and
(b) an amount determined by dividing:
(i) the number of impressions the targeted advertising entity delivers during the taxable year to an audience or individual located in Utah; and
(ii) the number of impressions the targeted advertising entity delivers during the taxable year to all audiences or individuals, regardless of location.
(4) A targeted advertising entity shall annually remit to the commission a return on the tax imposed in this section in an electronic format prescribed by the commission that:
(a) covers the period for which the tax is due; and
(b) includes any information the commission requires to:
(i) confirm the applicability of the tax imposed in this section; and
(ii) determine the amount described in Subsection (2)(b)(ii).
(5) The commission shall deposit revenue from the tax imposed in this section into the Targeted Advertising Tax Restricted Account created in Section 59-35-203.
(1) The commission shall administer, collect, and enforce a tax under this chapter in accordance with:
(a) Chapter 1, General Taxation Policies; and
(b) any rules made by the commission under Subsection (3).
(2) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this chapter.
(3) The commission may, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules:
(a) establishing procedures for the collection and remittance of the tax;
(b) establishing standards for determining the amount described in Subsection 59-35-201(2)(b)(ii), consistent with Subsection 59-35-201(3);
(c) establishing reporting requirements; and
(d) providing for the administration of this chapter.
(1) There is created within the General Fund a restricted account known as the "Targeted Advertising Tax Restricted Account."
(2) The account consists of:
(a) revenue collected from the tax imposed by Section 59-35-201; and
(b) amounts appropriated by the Legislature.
(3) Subject to appropriation, money in the account may be used for:
(a) child literacy programs;
(b) civic information programs;
(c) youth sports or recreational programs;
(d) youth volunteerism programs;
(e) mental health programs or services for children;
(f) adoption and foster care services;
(g) public education or awareness campaigns regarding the effects of targeted advertising on children, families, and adults; and
(h) offsetting the costs of programs or services described in Subsections (3)(a) through (g).
As used in this chapter:
(1) "Agency" means a community reinvestment agency, as defined in Section 17C-1-102.
(2) "Authorization meeting" means a public meeting:
(a) conducted by the governing body of a TIF entity;
(b) for which the TIF entity provides class A notice under Section 63G-30-102:
(i) for a minimum of 10 calendar days before the public meeting; and
(ii) with a link to the TIF entity's website where an explanation of each item listed in Subsection 59-2-201(3) may be found; and
(c) in which the governing body of the TIF entity addresses each item listed in Subsection 59-2-201(3).
(3) "Approximated discount rate" means the assumed rate of return used to discount future cash flows back to the cash's present value.
(4) "But-for analysis" means information or data that demonstrates:
(a) the benefits of a potential project to the public;
(b) the existing impediments to the potential project;
(c) that the potential project would be unable to overcome existing impediments and proceed without the use of tax increment; and
(d) that the impact of using tax increment to the public is less than the benefits of the potential project to the public.
(5) "Collecting entity" means:
(a) for sales and use tax increment, the commission; or
(b) for property tax increment, the county auditor, county assessor, and county treasurer of each county in which the TIF entity intends to use tax increment.
(6) "Collection time period" means the maximum amount of time a TIF entity may collect tax increment after engaging in a specified event.
(7) "Database" means a collection of electronic data to track the information that:
(a) each TIF entity is required to submit in accordance with this chapter; and
(b) the program manager collects in accordance with Section 59-36-301.
(8) "Disclosure" means a written acknowledgment, made in a form and in a manner the program manager establishes, that a TIF entity intending to engage in a specified event submits.
(9) "Established base year" means the year designated in a project area plan, a project area budget, or an interlocal agreement for the purpose of calculating tax increment.
(10) "Governing body" means:
(a) for an agency, the community reinvestment agency board;
(b) for a municipality, the municipal legislative body;
(c) for a county, the county legislative body;
(d) for a regional economic development authority, the regional economic development authority's board;
(e) for a public infrastructure district, the public infrastructure district's board of trustees; and
(f) for a special district, the special district's board of trustees.
(11) "Local entity" means:
(a) an agency;
(b) a municipality;
(c) a county;
(d) a public infrastructure district; or
(e) a special district.
(12) "Post-designation parcel" means:
(a) except as provided in Subsection 59-36-101(12)(b), the same as that term is defined in Section 11-58-601; or
(b) for a project area created by the Military Installation Development Authority, a parcel within the project area.
(13) "Program manager" means the same as that term is defined in Section 59-2-1601.
(14) "Project area" means an area created and designated to receive tax increment according to the terms of an adopted project area plan, project area budget, or interlocal agreement.
(15) "Project area budget" means a multi-year projection of annual or cumulative revenue and expenses and other fiscal matters pertaining to a project area that includes:
(a) the start and end date for tax increment collection;
(b) the number of years remaining that the TIF entity collects tax increment from the project area;
(c) the amount of tax increment the TIF entity is authorized to receive from the project area, cumulatively and from each taxing entity, including:
(i) the total dollar amount;
(ii) the percentage of the total amount of tax increment generated within the project area; and
(iii) the remaining amount of tax increment the TIF entity is authorized to receive from the project area, cumulatively and from each taxing entity; and
(d) the amount of tax increment the TIF entity:
(i) is authorized to use to pay for the TIF entity's administrative costs; and
(ii) uses to pay for the TIF entity's administrative costs.
(16) "Project area plan" means a written plan that, after the plan's effective date, guides and controls the development within a project area.
(17)
(a) "Property tax increment" means the amount of revenue a project area generates from property tax that exceeds the amount of revenue from the property tax that was generated in the project area:
(i) in the year before the project area is created; or
(ii) for a post-designation parcel, the 12 months before the trigger date.
(b) "Property tax increment" includes:
(i) enhanced property tax revenue;
(ii) property tax allocation;
(iii) property tax augmentation;
(iv) property tax differential;
(v) property tax increment; and
(vi) tax increment revenue.
(18) "Regional economic development authority" means:
(a) the Utah Inland Port Authority created in Section 11-58-201;
(b) the Point of the Mountain State Land Authority created in Section 11-59-201;
(c) the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201; or
(d) the Military Installation Development Authority created in Section 63H-1-201.
(19) "Sales and use tax increment" means the amount of revenue a project area generates from sales and use tax that exceeds the amount of revenue from the sales and use tax that was generated in the project area for the established base year.
(20) "Specified event" means:
(a) for a local entity, triggering tax increment; or
(b) for a regional economic development authority, entering into a tax increment agreement or approving a bond authorization.
(21) "STATS" means the Statewide Tax Administration and Technology Solutions program, created in Section 59-1-1902.
(22) "Tax increment" means property tax increment and sales and use tax increment.
(23) "Taxing entity" means a government entity that:
(a) imposes a tax on property located within a project area; or
(b) imposes a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act, within a project area.
(24) "TIF entity" means a political subdivision of the state that:
(a) for purposes of Part 2, Pre-increment Disclosure and Reporting, intends to engage in a specified event; and
(b) for purposes of Part 3, Tax Increment Receipt Reporting, receives or is authorized to receive tax increment for an approved project area.
(25) "Trigger date" means:
(a) except as provided in Subsections 59-36-101(25)(b) and 59-36-101(c), the same as that term is defined in Section 11-58-601;
(b) for a project area created by the Military Installation Development Authority, the day on which the authority receives the first property tax allocation from the parcel; or
(c) for a project area created by the Utah Fairpark Area Investment and Restoration District, the same as the term "transition date" is defined in Section 11-70-101.
(1) Beginning July 1, 2026, a TIF entity intending to use tax increment shall, before each specified event:
(a) conduct an authorization meeting; and
(b) submit the disclosure described in Subsection 59-36-201(3).
(2) An authorization meeting may be part of another public meeting of the TIF entity's governing body if the disclosure and agenda for the public meeting clearly describe the authorization meeting portion of the public meeting.
(3) Within 30 days after the day on which a TIF entity holds an authorization meeting, a TIF entity shall submit a disclosure to the program manager that includes:
(a) a copy of the notice for and the minutes from the TIF entity's authorization meeting;
(b) the public good to be addressed through the use of tax increment, including a description of each project the TIF entity intends to pursue with the use of tax increment;
(c) the type of tax increment sought for use;
(d) the amount of tax increment that a TIF entity is authorized to use as a result of a specified event:
(i) in total; and
(ii) separately for property tax increment and sales and use tax increment, if the TIF entity seeks to use more than one type of tax increment;
(e) a cost analysis reflecting the administrative costs imposed on the commission and the county to administer the collection, calculation, and distribution of the proposed tax increment;
(f) a but-for analysis of each project the TIF entity intends to pursue with the use of tax increment; and
(g) an explanation of how the benefit to residents or taxpayers near the project area is proportionate to the benefit to any party benefiting from the TIF entity's use of tax increment, as described in Section 59-36-202.
(4) A TIF entity shall comply with the requirements of this part every time the TIF entity intends to engage in a specified event.
In analyzing the proportionate benefit to residents or taxpayers near the project area, a TIF entity shall prepare an estimate, in present value by using an approximated discount rate of the following:
(1) the amount of revenue that will be allocated to any party in the form of tax increment, or bond financing secured by tax increment, each year over the collection time period or 40 years, whichever is greater; and
(2) the amount of revenue expected to be received by each taxing entity each year over 40 years.
(1) A TIF entity that submits the required information under Section 59-36-201 may engage in a specified event according to:
(a) the statutory requirements governing the TIF entity; and
(b) this section.
(2)
(a) Except as provided in Subsection (2)(b), a TIF entity described in Subsection 59-36-203(1) shall notify:
(i) within 30 calendar days, all taxing entities that will be affected by a planned tax increment area:
(A) for which the TIF entity has submitted the information required under Section 59-36-201; and
(B) that the TIF entity intends to trigger tax increment;
(ii) the collecting entities no later than December 31 the year before the TIF entity intends to begin receiving property tax increment; and
(iii) the commission no later than 180 days before the beginning of the fiscal quarter during which the TIF entity intends to begin receiving sales and use tax increment.
(b) If the TIF entity is required to comply with a different notification time period than the time periods described in Subsection (2)(a), the TIF entity shall comply with the notification period that provides the greater amount of time for notification.
(3)
(a) If a TIF entity does not engage in a specified event within five years after the day on which the TIF entity submits the information required by Section 59-36-201, the TIF entity shall:
(i) hold a new authorization meeting, with updated information if applicable; and
(ii) submit the information required by Section 59-36-201.
(b)
(i) If a TIF entity's disclosure includes all the information required by this Subsection 59-36-203(3), the TIF entity may engage in a specified event.
(ii) If the program manager notifies the TIF entity of a deficiency in the disclosure, the TIF entity shall provide the requested additional disclosure information.
(iii) A TIF entity that receives a request from the program manager under Subsection 59-36-203(3)(b)(ii) shall respond to the request.
(4)
(a) A local entity that receives more tax increment than projected is required to use the additional or excess revenue to defease any bond the local entity issued or accelerate repayment of any debts the local entity incurred if the bond or debt does not have any penalty or prohibition on defeasance of the bond or acceleration of the debt repayment.
(b) A TIF entity may not use tax increment for any purpose other than the purpose described in the disclosure.
(c)
(i) A TIF entity is responsible for monitoring the TIF entity's receipt of tax increment and notifying taxing entities and collecting entities when the TIF entity is approaching, has met, or has exceeded the amount of tax increment stated in the disclosure.
(ii) A TIF entity that receives more than the amount of tax increment stated in the disclosure:
(A) shall immediately inform the county auditor, the county assessor, and the commission;
(B) shall be responsible for ensuring the excess tax increment is returned to the appropriate taxing entities; and
(C) may request assistance from the county and the commission in fulfilling the duty described in Subsection 59-36-203(4)(c)(ii)(b).
(5) At the end of a collection time period, or upon receipt of the amount of tax increment stated in a disclosure, the TIF entity may not receive tax increment.
(6) A TIF entity shall comply with the requirements of this part for any additional or subsequent specified event.
The program manager shall coordinate with the collecting entities to recommend processes for the responsible and transparent receipt of property tax increment, sales and use tax increment, and tax increment, including by implementing processes to ensure a TIF entity stops receiving tax increment once the TIF entity receives the amount of tax increment stated in the disclosure under Section 59-36-201.
(1) On or before January 1, 2027, a TIF entity shall submit to the program manager for each project area:
(a) the project area plan;
(b) the project area budget;
(c) applicable interlocal agreements; and
(d) a map of each project area.
(2) A TIF entity shall submit the information described in Subsection 59-36-301(1) for a new project area created after January 1, 2027, before January 1 of the year after the year in which the project area is created.
(3) On January 1, 2028, and on each January 1 thereafter, a TIF entity shall submit to the program manager a summary of the progress of each project area.
(4) The program manager shall establish the manner in which a TIF entity shall submit the information described in Subsections 59-36-301(1) through 59-36-301(3).
(5) Annually, the program manager shall collect, with input from the county and the TIF entities:
(a) an assessment of the change in the project area's value, including:
(i) the taxable value from the established base year;
(ii) the estimated current assessed value; and
(iii) the percentage change between the base taxable value and the estimated current assessed value;
(b)
(i) if the TIF entity has received tax increment from a project area, the amount of tax increment by calendar year, including:
(A) a comparison of the actual tax increment received for each year to the forecasted tax increment for each year when the TIF entity created the project area;
(B) the TIF entity's historical receipts and expenditures of tax increment for each project area budget;
(C) a list of each taxing entity that imposes a tax within the project area;
(D) a description of the benefits that each taxing entity receives from the project area; and
(E) the percentage of additional value that each taxing entity provides to the project area; or
(ii) if the TIF entity has not yet received tax increment from an approved project area:
(A) the year in which the TIF entity expects to begin receiving tax increment for the project area;
(B) a list of each taxing entity that imposes a tax within the project area;
(C) a description of the benefits that each taxing entity is expected to receive from the project area; and
(D) the percentage of additional value that each taxing entity provides to the project area;
(c) the total amount of tax increment a TIF entity may receive from the project area cumulatively and from each taxing entity;
(d) the total amount of tax increment the TIF entity pays to a taxing entity, if applicable;
(e) a TIF entity's outstanding principal on bonds or loans for project area costs;
(f) a description of current and anticipated project area development, including:
(i) any significant infrastructure development, site development, participation agreements, or vertical construction within the project area; and
(ii) other details of TIF entity action and development within the project area, including:
(A) the total acreage developed after the TIF entity established the project area;
(B) the total undeveloped acreage the TIF entity expects to develop before the project area is dissolved;
(C) the percentage of residential development, if applicable; and
(D) the total number of housing units authorized, if applicable;
(g) a summary of the portions of the project area plan and the budget that include:
(i) the number of years remaining that the TIF entity may receive tax increment from the project area;
(ii) the estimated amount of tax increment that the TIF entity is authorized to receive from the project area for the current calendar year; and
(iii) the estimated amount of tax increment to be paid to the TIF entity for the next calendar year; and
(h) a description of how the receipt of tax increment during the previous year furthered the goals, policies, and purposes of the project area.
(6) The provisions of this section apply regardless of when the project area is created.
(7) Any information a TIF entity submits in accordance with this section is for informational purposes only.
(1) At or before the October interim meeting of the Political Subdivisions Interim Committee, the program manager shall present:
(a) annually, a written report of the information in the database that includes:
(i) a list of TIF entities that failed to comply with the requirements of Sections 59-36-201, 59-36-203, and 59-36-301 during the preceding reporting period;
(ii) a statewide summary of:
(A) the number of project areas receiving tax increment; and
(B) the total acres included in project areas receiving tax increment;
(iii) for each county, a summary of:
(A) the number of project areas receiving tax increment;
(B) the total acres included in project areas;
(C) the total acres included in project areas compared to the total taxable acres in the county;
(D) the percentage of property tax for all taxing entities within the county that is allocated as tax increment;
(E) the total amount of tax increment projected in all project area budgets;
(F) the estimated tax increment from project area budgets that has not yet been received;
(G) a description of any project area that is approved but has not received tax increment; and
(H) project areas dissolved during the previous year;
(iv) information about the benefits that project areas provide to each county and the state, which shall include information relating to two or more of the following:
(A) the average percentage change in assessed value for each county within project areas during the reporting period;
(B) the percentage change in assessed value within a county, excluding project areas, during the reporting period;
(C) a comparison of the growth rate between project areas and areas of the county that are not within a project area;
(D) public infrastructure paid for with tax increment;
(E) publicly accessible parks, trails, plazas, or other public amenities paid for with tax increment;
(F) affordable housing units tax increment creates, preserves, or supports; and
(G) new jobs created with tax increment; and
(v) any recommendation for legislation; and
(b) every three years, beginning in 2030, a copy of the results of the independent audit described in Subsection 59-36-302(3).
(2)
(a) If the program manager does not receive, on or before April 1 of the year the information is due, the information that a TIF entity is required to provide under Section 59-36-301, the program manager shall:
(i) refer the noncompliant TIF entity to the state auditor for review; and
(ii) post a notice on the STATS website identifying the noncompliant TIF entity and describing the TIF entity's noncompliance.
(b) If, for two consecutive years, the program manager does not receive information a TIF entity is required to provide under Section 59-36-301:
(i) the program manager shall notify, no later than April 1 of the second consecutive year, the county auditor and the county treasurer of the county in which the noncompliant TIF entity is located of the TIF entity's noncompliance; and
(ii) upon receiving the notice described in Subsection 59-36-302(2)(b)(i), the county treasurer shall withhold from the TIF entity 20% of the amount of tax increment the TIF entity is entitled to receive.
(c)
(i) Subject to Subsection 59-36-302(2)(c)(ii), the county treasurer may not withhold funds as described in Subsection 59-36-302(2)(b)(ii) if the disbursement of tax increment is necessary to meet contractual or debt service obligations.
(ii) The TIF entity shall submit to the county treasurer evidence of the contractual or debt service obligation and the need for tax increment to serve the contract or debt.
(d) If, after having funds withheld under Subsection 59-36-302(2)(b)(ii), a TIF entity complies with Section 59-36-301:
(i) the program manager shall notify the county auditor and the county treasurer that the TIF entity complied with Section 59-36-301; and
(ii) the county treasurer shall disburse the withheld funds to the TIF entity.
(3) Every three years, beginning in 2030, the program manager shall obtain an independent audit of the database and the information reported to the Political Subdivisions Interim Committee in accordance with Subsection 59-36-302(1).
(4)
(a) The database, reporting, and auditing requirements of this part are a supplement to the state auditor's authority to audit TIF entities.
(b) The program manager is not subject to audit by the state auditor for any reason beyond the audit of the program manager's receipt of government funds to administer STATS.
As used in this chapter:
(1) "Delivered value" means the fair market value of energy delivered for use and includes:
(a) the value of the energy itself; and
(b) any transportation, freight, customer demand charges, services charges, or other costs typically incurred in providing energy in usable form.
(2) "Energy" means gas and electricity.
(3) "Energy supplier" means a person supplying energy.
(4) "High-impact consumer" means:
(a) a large load customer; or
(b) a qualifying data center.
(5) "Large load customer" means the same as that term is defined in Section 54-26-101.
(6) "Qualifying data center" means the same as that term is defined in Section 59-12-102.
(7) "Regional economic development authority" means:
(a) the Military Installation Development Authority created in Section 63H-1-201;
(b) the Point of the Mountain State Land Authority created in Section 11-59-201; and
(c) the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201.
(1) A county may levy an excise tax for the delivered value of energy upon a high-impact consumer located:
(a) within the county; and
(b) on unincorporated land.
(2)
(a) Subject to Section 59-37-202, a county may impose the tax levied under Subsection 59-37-201(1) at a maximum rate of 6% of the delivered value of the energy to the high-impact consumer.
(b) A high-impact consumer that qualifies as both a large load customer and a qualifying data center is only subject to one excise tax described in this section.
(3)
(a) An energy supplier that delivers energy to a high-impact consumer is responsible for collecting and remitting a tax described in this section to the commission on a quarterly basis in the same manner that the energy supplier collects and remits sales and use tax.
(b) For purposes of determining the point of sale for the delivered value of energy, the energy supplier shall use the location of the high-impact consumer's meter.
(c) If an energy supplier passes along the cost of a tax imposed under this chapter to the high-impact consumer, the energy supplier shall indicate to the high-impact consumer that the tax is passed through by the energy supplier as a separately itemized charge.
(4) A county that imposes or repeals the tax under this chapter, or modifies the rate of a tax imposed under this chapter, shall ensure county's action takes effect:
(a) on the first day of a calendar quarter; and
(b) after a 90-day period beginning on the date the county sends notice to the tax commission as described in Subsection 59-37-201(5).
(5) A notice described in Subsection 59-37-201(4)(b) shall include:
(a) that the county is imposing or repealing a tax under this chapter, or modifying the rate of a tax imposed under this chapter;
(b) the tax rate, if applicable; and
(c) the effective date of the tax.
(6) A county excise tax imposed under this chapter is in addition to any sales and use tax imposed by the county under Title 59, Chapter 12, Sales and Use Tax Act.
If a high-impact consumer is subject to a municipal energy sales and use tax, as described in Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act, that is levied by a regional land use economic development authority, the county may levy a tax described in Section 59-37-201 on the high-impact consumer only:
(1) to the extent that the regional economic development authority does not levy the maximum rate described in Section 10-1-304; and
(2) at a rate that ensures the combined rate of the tax described in this section and the municipal energy sales and use tax levied on the high-impact consumer does not exceed 6%.
(1) The commission shall administer, collect, and enforce a tax under this chapter in accordance with Chapter 1, General Taxation Policies.
(2) Subject to Section 59-1-306, the commission shall:
(a) deposit 10% of the revenue the commission collects from a tax under this chapter into the State Reinvestment Restricted Account created in Section 51-9-1102; and
(b) distribute 90% of the revenue to the county that levied the tax.
(3) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, about the delivered value of taxable energy.
(4) The rules made under Subsection 59-37-301(3) shall:
(a) provide that an arm's length sales price for taxable energy sold or used by a high-impact consumer is the delivered value to the high-impact consumer, unless the sales price does not include some portion of the taxable energy or component of delivered value; and
(b) establish one or more default methods for determining the delivered value one time per calendar year on or before January 31 for taxable energy when the commission determines that the sales price does not accurately reflect delivered value.
(5) In establishing a default method under Subsection 59-37-301(4)(b), the commission:
(a) shall take into account quantity discounts and other reductions or increases in value that are generally available in the marketplace for various grades or types of property and classes of services; and
(b) may consider:
(i) generally applicable tariffs for various classes of utility services approved by the Public Service Commission or other governmental entity;
(ii) posted prices;
(iii) spot-market prices;
(iv) trade publications;
(v) market data; and
(vi) other information and data prescribed by the commission.
The Legislature finds that:
(1) minors in the state face an unprecedented mental health crisis, with rising rates of anxiety, depression, and self-harm;
(2) research demonstrates a correlation between minor access to material harmful to minors and negative mental health outcomes;
(3) existing state efforts to address minor access to material harmful to minors and to provide mental health services for minors have been inadequate due to limited resources;
(4) commercial entities that publish or distribute material harmful to minors have not voluntarily implemented effective age verification measures to prevent minor access;
(5) the state has a substantial and compelling interest in protecting minors from material harmful to minors;
(6) age verification requirements are an effective and minimally restrictive means of preventing minor access to material harmful to minors;
(7) additional funding is necessary to support mental health services for minors and to enforce age verification requirements; and
(8) entities required to implement age verification systems create regulatory costs and societal harms that warrant an excise tax to fund prevention and enforcement efforts.
As used in this chapter:
(1) "Covered entity" means a commercial entity that is required to perform age verification under Section 78B-3-1002.
(2) "Covered transaction" means amounts paid to or charged by a covered entity for access to digital images, digital audio-visual works, digital audio works, digital books, or gaming services, including the streaming of or subscription for access to digital images, digital audio-visual works, digital audio works, digital books, or gaming services regardless of:
(a) the delivery method; or
(b) whether the amount paid or charged for access provides a right to:
(i) single-use access to the digital images, digital audio-visual works, digital audio works, digital books, or gaming services; or
(ii) access to the digital images, digital audio-visual works, digital audio works, digital books, or gaming services through a subscription, including a right that terminates upon the occurrence of a condition.
(3) "Division" means the Division of Consumer Protection created in Section 13-2-1.
(1) An excise tax is imposed on a covered entity in an amount equal to 2% of the sales price of covered transactions.
(2) A covered entity shall pay the tax imposed under this section to the commission.
(1) The commission shall administer, collect, and enforce the tax under this chapter in accordance with:
(a) Chapter 1, General Taxation Policies; and
(b) the same procedures used to administer, collect, and enforce the tax under Chapter 12, Part 1, Tax Collection.
(2)
(a) A covered entity that collects the tax imposed on covered transactions shall remit to the commission, in an electronic format approved by the commission:
(i) the tax due in the previous quarter; and
(ii) the tax return.
(b) Notwithstanding Subsection 59-38-104(2)(a), if a covered entity is required to file a sales and use tax return, the covered entity shall file the tax return and remit the tax imposed under this chapter in an electronic format the commission approves on the same schedule as the covered entity's sales and use tax filing.
(3) A covered entity shall maintain records of covered transactions to determine the amount of tax due under this part for a period of three years.
(4) The commission may make an assessment in accordance with Section 59-1-1405 for a deficiency of a tax, fee, or charge required to be paid under this chapter.
(5) In addition to the tax required by this part, a person shall pay a penalty as provided in Section 59-1-401, plus interest at the rate and in the manner provided in Section 59-1-402, if a person subject to this section fails to:
(a) pay the tax imposed by this part;
(b) pay the tax on time; or
(c) file a return or statement required by this part.
(6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in the manner provided in Section 59-1-402.
(7) The commission shall administer the tax imposed under this chapter based on referrals of covered entities from the division in accordance with Section 78B-3-1004.
(1) There is created within the General Fund a restricted account known as the "Minor Mental Health Restricted Account."
(2) The account consists of:
(a) revenue collected from the tax imposed by Section 59-38-103;
(b) appropriations made to the account by the Legislature;
(c) interest and earnings on account money;
(d) donations or grants from public or private entities; and
(e) transfers from the Minor Online Safety Restricted Account as provided in Section 78B-3-1007.
(3) The Division of Finance shall:
(a) deposit 90% of the revenue described in Subsection 59-38-105(2)(a) into the account; and
(b) deposit 10% of the revenue described in Subsection 59-38-105(2)(a) into the Minor Online Safety Restricted Account created in Section 78B-3-1007.
(4) Upon appropriation by the Legislature, money in the account shall be distributed to the Department of Health and Human Services for:
(a) mental health treatment programs for minors affected by material harmful to minors;
(b) educational programs for parents, guardians, educators, and minors on the mental health risks associated with material harmful to minors;
(c) early prevention and intervention programs for minors at risk of mental health harm from material harmful to minors; and
(d) research and public awareness campaigns addressing mental health harm to minors caused by material harmful to minors.
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