Agency: Tax Commission

Function

The primary function of the State Tax Commission is collection of revenue for state and local governments and administering tax and motor vehicle laws. The Tax Commission handles revenue from about 40 taxes, surcharges, and fees; registers automobiles, and regulates the automobile dealer industry. In FY 2011, the Commission had 757 full-time equivalent employees and operated 12 offices across the state.

Mission Statement

The mission of the Tax Commission is to collect revenue for the state and local governments and to equitably administer tax and assigned motor vehicle laws.

Statutory Authority

The Utah Constitution, Article XIII, Section 6, Paragraph 3 details that the State Tax Commission shall administer and supervise the State's tax laws, ensure that properties are assessed and valued equally across county lines, review proposed bond issues, revise local tax levies, and have other powers as provided by statute. Most of the broad authority granted the Tax Commission in the Constitution is detailed in Utah Annotated Code Title 59, Chapters 1 through 27, and Utah Annotated Code Title 41.

Utah Annotated Code Title 59-1-210 lists the general powers and duties of the State Tax Commission. All of Title 59 is the State's Revenue and Taxation section of statute. The Title includes:

• Property Tax (59-2)
• Severance Taxes (59-5)
• Mineral Production Tax (59-6)
• Corporate Income Tax (59-11)
• Gross Receipts Tax (59-8)
• Insurance Premium Tax (59-9)
• Income Tax (59-10)
• Inheritance Tax (59-11)
• Sales Tax (59-12)
• Motor and Special Fuel Taxes (59-13)
• Cigarette and Tobacco Taxes (59-14)
• Beer, Wine, and Liquor Taxes (59-15)
• Mineral Lease (59-21)
• Brine Shrimp Tax (59-23)
• Radioactice Waste and Hazardous Waste Tax (59-24 and 59-25)
• Multi-Channel Video and Audio Services Tax (59-26)
• Sexually Explicit Business and Escort Service Tax (59-27)
• Motor Vehicle Act 41-1a)
• Motor Vehicle Enforcement Division(41-3-104)

Funding Detail

Major sources of finance for the Tax Commission are the General Fund and Education Fund. The Commission also draws funding from Dedicated Credits, Restricted Revenues, and the Transportation Fund.

In FY 2011 the General and Education Funds made up 56 percent of the Department's total operating funding. Proceeds from dedicated credits and restricted revenue also represent large financing sources, accounting for approximately 39 percent of the Commission's total operating funding in FY 2011. The Tax Commission is authorized funding from the Education Fund due to its role in collecting income and corporate taxes. The Commission is also authorized funding from the Transportation Fund due to its function in collecting taxes for motor fuel, special fuel, motor vehicle registration fees, and other revenue sources that transmit to the fund .

In addition, the Commission draws funding from four restricted fund accounts, which are:

• Tax Commission Administrative Charge Account, UAC 59-1-306;
• Uninsured Motorist Identification Account, UAC 41-12a-806;
• Tobacco Settlement Restricted Account,UAC 51-9-201; and
• Electronic Payment Fee Account, UAC 41-1a-121

Agency expenditures are largely comprised of personnel costs at 59% of the total budget. Current expenses are 19% and data processing expenses are 13%. The largest categories of current expenses are contractual services (mostly with the 22 counties that perform motor vehicle registration functions), postage and mailing costs related to sending returns, renewal forms, delinquency and correction notices and payment reminders, and costs paid to vendors for credit card transactions fees and electronic transaction fees. The largest expenses for data processing costs include computer desktop support and internet connection fees, programmers who work on agency systems, and software maintenance fees paid to vendors.