S.B. 41

1

COAL TAX CREDIT
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Mike Dmitrich
5 AN ACT RELATING TO REVENUE AND TAXATION; AUTHORIZING THE UTAH STEAM
6 COAL TAX CREDIT FOR AN ADDITIONAL FIVE YEARS; PROVIDING THAT THE
7 CREDIT MAY BE CARRIED FORWARD UNDER CERTAIN CIRCUMSTANCES;
8 MAKING TECHNICAL CHANGES; PROVIDING FOR RETROSPECTIVE OPERATION;
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Amend on 2_goldenrod February 19, 1997 9 S [AND] s PROVIDING A REPEAL DATE S AND PROVIDING A COORDINATION CLAUSE s .
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 59-7-604, as last amended by Chapter 42, Laws of Utah 1995
13 ENACTS:
14 63-55b-5901, Utah Code Annotated 1953
15 Be it enacted by the Legislature of the state of Utah:
16 Section 1. Section 59-7-604 is amended to read:
17 59-7-604. Utah steam coal tax credit.
18 (1) For taxable years beginning on or after January 1, 1993, there is allowed, as a
19 nonrefundable credit against any taxes imposed by this chapter or Chapter 8, an amount equal to
20 $1 per ton for each ton of Utah steam coal sold [from a permitted mine by the taxpayer to a
21 purchaser outside of the United States in excess of] during the taxpayer's current taxable year that
22 exceeds the number of tons of Utah steam coal sold [from a permitted mine by the taxpayer to a
23 purchaser outside of the United States in the] during the taxpayer's taxable year beginning:
24 (a) on or after January 1, 1992, but:
25 (b) before December 31, 1992.
26 (2) For purposes of this section, "Utah steam coal sold" means coal:
27 (a) mined in Utah, as certified by the producer of [such] the coal[.]; and

1 (b) that is sold:
2 (i) by the taxpayer;
3 (ii) from a permitted mine; and
4 (iii) to a purchaser outside of the United States.
5 (3) If the amount of a credit under this section for which a taxpayer is eligible for the
6 taxable year exceeds the taxpayer's tax liability for the taxable year, the taxpayer may carry
7 forward for 15 taxable years the portion of the tax credit that exceeds the taxpayer's tax liability
8 for the taxable year.
9 [(3)] (4) The credit allowed by this section is repealed effective for [tax] taxable years
10 beginning on or after January 1, [1997] 2002.
11 Section 2. Section 63-55b-5901 is enacted to read:
12 63-55b-5901. Repeal Date -- Title 59.
13 Section 59-7-604 is repealed January 1, 2002.
14 Section 3. Retrospective operation.
15 This act has retrospective operation for taxable years beginning on or after January 1, 1997.
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Amend on 2_goldenrod February 19, 1997 15a S Section 4. Coordination Clause.
15b IF THIS BILL AND H.B. 180, SUNSET REAUTHORIZATIONS, BOTH PASS, IT IS THE INTENT OF THE
15c LEGISLATURE THAT THE AMENDMENTS IN SECTION 59-7-604 IN THIS BILL SUPERSEDE THE REPEAL
15d OF SECTION 59-7-604 IN H.B. 180. s




Legislative Review Note
as of 1-15-97 11:09 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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