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S.B. 219 Enrolled

    

PRIVILEGE TAX AMENDMENTS

    
1997 GENERAL SESSION

    
STATE OF UTAH

    
Sponsor: Lyle W. Hillyard

    AN ACT RELATING TO THE PRIVILEGE TAX; MODIFYING AN EXEMPTION FROM
    THE TAX; MAKING TECHNICAL CHANGES; AND PROVIDING FOR
    RETROSPECTIVE OPERATION.
    This act affects sections of Utah Code Annotated 1953 as follows:
    AMENDS:
         59-4-101, as last amended by Chapter 155, Laws of Utah 1996
    Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 59-4-101 is amended to read:
         59-4-101. Tax basis -- Exceptions -- Assessment and collection.
        (1) (a) Except as provided in Subsections (1)(b) and (c), a tax is imposed on the possession
    or other beneficial use enjoyed by any person of any real or personal property which for any reason
    is exempt 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.
        (c) The tax imposed under Subsection (1)(a) does not apply to property exempt from
    taxation under Section 59-2-1114.
        (2) 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. The amount of any payments
    which are made in lieu of taxes is credited against the tax imposed on the beneficial use of property
    owned by the federal government.
        (3) [No] A tax is not imposed under this chapter on the following:
        (a) the use of property which is a concession in, or relative to, the use of a public airport,
    park, fairground, or similar property which is available as a matter of right to the use of the general


    public;
        (b) the use or possession of property by a religious, educational, or charitable organization;
        (c) the use or possession of property [where] if the [proceeds inure] revenue generated by
    the possessor or user of the property through its possession or use of the property inures only to the
    benefit of a religious, educational, or charitable organization and not to the benefit of any other
    person;
        (d) the possession or other beneficial use of public land occupied under the terms of a
    grazing lease or permit issued by the United States or this state; or
        (e) 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. Every 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, notwithstanding the fact that other
    parties may have a similar right to remove or extract another mineral from the same lands or estates.
        (4) A tax imposed under this chapter is assessed to the possessors or users of the property
    on the same forms, and collected and distributed at the same time and in the same manner, as taxes
    assessed owners, possessors, or other claimants of property which is subject to ad valorem property
    taxation. The tax 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.
        Section 2. Retrospective operation.
        This act has retrospective operation to January 1, 1997.
    

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