First Substitute S.B. 65

1

PROPERTY TAX EXEMPTION FEE
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: George Mantes
5 Leonard M. Blackham

6 AN ACT RELATING TO REVENUE AND TAXATION; MODIFYING THE UNIFORM FEE
7 ON VEHICLES AND OTHER PERSONAL PROPERTY; MAKING TECHNICAL
8 CORRECTIONS; AND PROVIDING AN EFFECTIVE DATE.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 41-1a-301, as last amended by Chapter 9, Laws of Utah 1995, First Special Session
12 59-2-405, as last amended by Chapters 247 and 339, Laws of Utah 1995
13 59-2-407, as last amended by Chapter 339, Laws of Utah 1995
14 REPEALS:
15 59-2-404, as last amended by Chapter 223, Laws of Utah 1992
16 Be it enacted by the Legislature of the state of Utah:
17 Section 1. Section 41-1a-301 is amended to read:
18 41-1a-301. Apportioned registration and licensing of interstate commercial vehicles.
19 (1) (a) An owner or operator of a fleet of commercial vehicles based in this state and
20 operating in two or more jurisdictions may register commercial vehicles for operation under the
21 International Registration Plan or the Uniform Vehicle Registration Proration and Reciprocity
22 Agreement by filing an application with the division.
23 (b) The application shall include information that identifies the vehicle owner, the vehicle,
24 the miles traveled in each jurisdiction, and other information pertinent to the registration of
25 apportioned vehicles.
26 (c) Vehicles operated exclusively in this state may not be apportioned.

1 (2) (a) If no operations were conducted during the preceding year, the application shall
2 contain a statement of the proposed operations and an estimate of annual mileage for each
3 jurisdiction.
4 (b) The division may adjust the estimate if the division is not satisfied with its correctness.
5 (c) At renewal, the registrant shall use the actual mileage from the preceding year in
6 computing fees due each jurisdiction.
7 (3) The registration fee for apportioned vehicles shall be determined as follows:
8 (a) divide the in-jurisdiction miles by the total miles generated during the preceding year;
9 (b) total the fees for each vehicle based on the fees prescribed in Section 41-1a-1206; and
10 (c) multiply the sum obtained under Subsection (3)(b) by the quotient obtained under
11 Subsection (3)(a).
12 (4) Trailers or semitrailers of apportioned fleets may be listed separately as "trailer fleets"
13 with the fees paid according to the total distance those trailers were towed in all jurisdictions
14 during the preceding year mileage reporting period.
15 (5) (a) (i) When the proper fees have been paid, a registration card, annual decal, and
16 where necessary, license plate, will be issued for each unit listed on the application.
17 (ii) An original registration must be carried in each vehicle at all times.
18 (b) Original registration cards for trailers or semitrailers may be carried in the power unit.
19 (c) (i) In lieu of a permanent registration card or license plate, the division may issue one
20 temporary permit authorizing operation of new or unlicensed vehicles until the permanent
21 registration is completed.
22 (ii) Once a temporary permit is issued, the registration process may not be cancelled.
23 Registration must be completed and fees must be paid for the vehicle for which the permit was
24 issued.
25 (iii) Temporary permits may not be issued for renewals.
26 (d) (i) The division shall issue one distinctive license plate that displays the letters APP
27 for apportioned vehicles.
28 (ii) The plate must be displayed on the front of the power unit or on the rear of the trailer,
29 as appropriate.
30 (iii) Distinctive decals displaying the word "apportioned" and the month and year of
31 expiration shall be issued for each apportioned vehicle.

- 2 -

1 (e) A nonrefundable administrative fee, determined by the Tax Commission pursuant to
2 Section 63-38-3.2, shall be charged for each temporary permit, registration, or both.
3 (6) Vehicles that are apportionally registered are fully registered for intrastate and
4 interstate movements, providing the proper interstate and intrastate authority has been secured.
5 (7) (a) Vehicles added to an apportioned fleet after the beginning of the registration year
6 shall be registered by applying the quotient under Subsection (3)(a) for the original application to
7 the fees due for the remainder of the registration year.
8 (b) (i) The owner shall maintain and submit complete annual mileage for each vehicle in
9 each jurisdiction, showing all miles operated by the lessor and lessee.
10 (ii) The fiscal mileage reporting period begins July 1, and continues through June 30 of
11 the year immediately preceding the calendar year in which the registration year begins.
12 (c) (i) An owner-operator, who is a lessor, may be the registrant and the vehicle may be
13 registered in the name of the owner-operator.
14 (ii) The identification plates and registration card shall be the property of the lessor and
15 may reflect both the owner-operator's name and that of the carrier as lessee.
16 (iii) The allocation of fees shall be according to the operational records of the
17 owner-operator.
18 (d) (i) The lessee may be the registrant of a leased vehicle at the option of the lessor.
19 (ii) If a lessee is the registrant of a leased vehicle, both the lessor's and lessee's name shall
20 appear on the registration.
21 (iii) The allocation of fees shall be according to the records of the carrier.
22 (8) (a) Any registrant whose application for apportioned registration has been accepted
23 shall preserve the records on which the application is based for a period of three years after the
24 close of the registration year.
25 (b) The records shall be made available to the division upon request for audit as to
26 accuracy of computations, payments, and assessments for deficiencies, or allowances for credits.
27 (c) An assessment for deficiency or claim for credit may not be made for any period for
28 which records are no longer required.
29 (d) Interest in the amount prescribed by Section 59-1-402 shall be assessed or paid from
30 the date due until paid on deficiencies found due after audit.
31 (e) Registrants with deficiencies are subject to the penalties under Section 59-1-401.

- 3 -

1 (f) The division may enter into agreements with other International Registration Plan
2 jurisdictions for joint audits.
3 (9) All state fees collected shall be deposited in the Transportation Fund.
4 (10) If registration is for less than a full year, fees for apportioned registration shall be
5 assessed according to Section 41-1a-1207.
6 (a) (i) If the registrant is replacing a vehicle for one withdrawn from the fleet and the new
7 vehicle is of the same weight category as the replaced vehicle, the registrant must file a
8 supplemental application.
9 (ii) A registration card that transfers the license plate to the new vehicle shall be issued.
10 (iii) When a replacement vehicle is of greater weight than the replaced vehicle, additional
11 registration fees are due.
12 (b) If a vehicle is withdrawn from an apportioned fleet during the period for which it is
13 registered, the registrant shall notify the division and surrender the registration card and license
14 plate of the withdrawn vehicle.
15 (11) (a) An out-of-state carrier with an apportionally registered vehicle who has not
16 presented a certificate of property tax as required by Section 41-1a-206, shall pay, at the time of
17 registration, a proportional part of [an equalized highway use tax] a uniform fee computed as
18 follows:
19 (i) Multiply the number of vehicles or combination vehicles registered in each weight class
20 by the equivalent [tax] uniform fee figure from [the following table:] Subsections 59-2-405(3)(c)
21 and (d).
22 [Vehicle or Combination] [Equivalent]
23 [Registered Weight] [Tax]
24 [6,000 - 18,000 pounds] [$100]
25 [18,001 - 34,000 pounds] [200]
26 [34,001 - 48,000 pounds] [300]
27 [48,001 - 64,000 pounds] [450]
28 [64,001 pounds and over] [600]
29 (ii) Multiply the equivalent [tax] uniform fee value for the total fleet determined under
30 Subsection (i) by the fraction computed under Subsection (3) for the apportioned fleet for the
31 registration year.

- 4 -

1 (b) Fees shall be assessed as provided in Section 41-1a-1207.
2 (12) (a) Commercial vehicles meeting the registration requirements of another jurisdiction
3 may, as an alternative to full or apportioned registration, secure a temporary registration permit
4 for a period not to exceed 96 hours or until they leave the state, for a fee of $20 for a single unit
5 and $40 for multiple units.
6 (b) A state temporary permit or registration fee is not required from nonresident owners
7 or operators of vehicles or combination of vehicles having a gross laden weight of 26,000 pounds
8 or less for each single unit or combination.
9 Section 2. Section 59-2-405 is amended to read:
10 59-2-405. Uniform fee on tangible personal property required to be registered with
11 the state.
12 (1) The property described in [Subsection] Subsections (2)(a) and (b), except Subsections
13 (2)(b)(i) and [(c)] (ii), is exempt from ad valorem property taxes pursuant to Utah Constitution
14 Article XIII, Section 14.
15 (2) (a) There is [levied] imposed, in lieu of the ad valorem tax [an annual], a statewide
16 uniform fee [based] on [the value of] each motor [vehicles] vehicle, watercraft, recreational
17 [vehicles] vehicle, aircraft, and [all] other item of tangible personal property required to be
18 registered with the state before it is used on a public highway, on a public waterway, on public
19 land, or in the air, regardless of whether the property is actually so used.
20 (b) The following personal property is exempt from the statewide uniform fee imposed by
21 this section:
22 [(a) aircraft;]
23 [(b)] (i) vintage vehicles as defined in Section 41-21-1; and
24 [(c) interstate motor carriers entitled to protection under Title 49, Section 11503a of the
25 United States Code; and]
26 [(d)] (ii) personal property that is exempt from state or county ad valorem property taxes
27 under the laws of this state or of the federal government.
28 (3) The uniform fee imposed by Subsection (2)(a) and administered under Section
29 59-2-407 is [1.7% of the fair market value of the personal property, as established by the
30 commission.]:
31 [(4) Notwithstanding Section 59-2-407, property subject to the uniform fee that is brought

- 5 -

1 into the state and is required to be registered in Utah shall, as a condition of registration, be subject
2 to the uniform fee unless all property taxes or uniform fees imposed by the state of origin have
3 been paid for the current calendar year.]
4 (a) for each aircraft subject to the uniform fee under this section, as follows:
5 jet aircraft $1,000
6 turbo prop aircraft $500
7 helicopters $350
8 piston driven aircraft $250
9 gliders, balloons, and all other aircraft
10 required to be registered $100;
11 (b) for each watercraft subject to the uniform fee under this section, as follows:
12 20 feet or less in length $50
13 over 20 feet and under 50 feet in length $100
14 50 feet or more in length $300;
15 (c) for each motor vehicle, including recreational vehicle and other vehicle subject to the
16 uniform fee under this section, except trailers, and:
17 (i) weighing 12,000 pounds or less gross laden weight, as follows:
18 less than three years old $100
19 three or more but less than six years old $ 80
20 six or more but less than nine years old $ 60
21 nine or more but less than 12 years old $ 40
22 12 or more years old $ 20;
23 (ii) weighing more than 12,000 pounds gross laden weight but less than or equal to 26,000
24 pounds gross laden weight, as follows:
25 less than three years old $150
26 three or more but less than six years old $120
27 six or more but less than nine years old $ 90
28 nine or more but less than 12 years old $ 60
29 12 or more years old $ 30; and
30 (iii) weighing more than 26,000 pounds gross laden weight, as follows:
31 Gross Laden Weight Uniform fee

- 6 -

1 26,001 - 48, 000 pounds $300
2 48,001 - 64,000 pounds $450
3 64,001 pounds and over $600; and
4 (d) for each trailer subject to the uniform fee under this section and:
5 (i) weighing 2,000 pounds or less unladen weight $20; and
6 (ii) weighing more than 2,000 pounds unladen weight, as follows:
7 less than three years old $100
8 three or more but less than six years old $80
9 six or more but less than nine years old $60
10 nine or more but less than 12 years old $40
11 12 or more years old $20.
12 [(5)] (4) (a) The revenues collected in each county from the uniform fee shall be
13 distributed by the county to each taxing entity in which the property described in Subsection (2)
14 is located in the same proportion in which revenue collected from ad valorem real property tax is
15 distributed.
16 (b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in the
17 same proportion in which revenue collected from ad valorem real property tax is distributed.
18 [(6) Appeals of the valuation of the tangible personal property described in Subsection (2)
19 shall be filed pursuant to Section 59-2-1005.]
20 Section 3. Section 59-2-407 is amended to read:
21 59-2-407. Administration of uniform fee.
22 (1) The uniform fee authorized in [Sections 59-2-404 and] Section 59-2-405, excluding
23 Subsection 59-2-405(4), shall be assessed [at the same time and in the same manner as ad valorem
24 personal property taxes under Title 59, Chapter 2, Part 13, Collection of Taxes, except that in
25 listing personal property subject to the uniform fee with real property, as permitted by Section
26 59-2-1302, the assessor shall list only the amount of the uniform fee due, and not the taxable value
27 of the property subject to the uniform fee]:
28 (a) at the time of registration;
29 (b) at the time of registration renewal; and
30 (c) for property subject to the uniform fee under Subsection 59-2-405(2)(a) that the owner
31 fails to register, on January 1 of each year.

- 7 -

1 (2) The remedies for nonpayment of the uniform fees authorized by Sections 59-2-404 and
2 59-2-405 shall be the same as those provided in Title 59, Chapter 2, Part 13, Collection of Taxes,
3 for nonpayment of ad valorem personal property taxes.
4 Section 4. Repealer.
5 This act repeals:
6 Section 59-2-404, Uniform tax on aircraft -- Collection of tax by county -- Distribution
7 of taxes -- Rules to implement section.
8 Section 5. Effective date.
9 This act takes effect on January 1, 1998.

- 8 -