S.B. 219

1

PRIVILEGE TAX AMENDMENTS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Lyle W. Hillyard
5 AN ACT RELATING TO THE PRIVILEGE TAX; MODIFYING AN EXEMPTION FROM THE
6 TAX; AND PROVIDING FOR RETROSPECTIVE OPERATION.
7 This act affects sections of Utah Code Annotated 1953 as follows:
8 AMENDS:
9 59-4-101, as last amended by Chapter 155, Laws of Utah 1996
10 Be it enacted by the Legislature of the state of Utah:
11 Section 1. Section 59-4-101 is amended to read:
12 59-4-101. Tax basis -- Exceptions -- Assessment and collection.
13 (1) (a) Except as provided in Subsections (1)(b) and (c), a tax is imposed on the possession
14 or other beneficial use enjoyed by any person of any real or personal property which for any reason
15 is exempt from taxation, if that property is used in connection with a business conducted for profit.
16 (b) Any interest remaining in the state in state lands after subtracting amounts paid or due
17 in part payment of the purchase price as provided in Subsection 59-2-1103(2)(b)(i) under a
18 contract of sale is subject to taxation under this chapter regardless of whether the property is used
19 in connection with a business conducted for profit.
20 (c) The tax imposed under Subsection (1)(a) does not apply to property exempt from
21 taxation under Section 59-2-1114.
22 (2) The tax imposed under this chapter is the same amount that the ad valorem property
23 tax would be if the possessor or user were the owner of the property. The amount of any payments
24 which are made in lieu of taxes is credited against the tax imposed on the beneficial use of property
25 owned by the federal government.
26 (3) [No] A tax is not imposed under this chapter on the following:
27 (a) the use of property which is a concession in, or relative to, the use of a public airport,

1 park, fairground, or similar property which is available as a matter of right to the use of the general
2 public;
3 (b) the use or possession of property by a religious, educational, or charitable organization;
4 (c) the use or possession of property [where] if the [proceeds inure] revenue generated by
5 the possessor or user of the property through its possession or use of the property inures only to
6 the benefit of a religious, educational, or charitable organization and not to the benefit of any other
7 person;
8 (d) the possession or other beneficial use of public land occupied under the terms of a
9 grazing lease or permit issued by the United States or this state; or
10 (e) the use or possession of any lease, permit, or easement unless the lease, permit, or
11 easement entitles the lessee or permittee to exclusive possession of the premises to which the lease,
12 permit, or easement relates. Every lessee, permittee, or other holder of a right to remove or extract
13 the mineral covered by the holder's lease, right, permit, or easement except from brines of the
14 Great Salt Lake, is considered to be in possession of the premises, notwithstanding the fact that
15 other parties may have a similar right to remove or extract another mineral from the same lands
16 or estates.
17 (4) A tax imposed under this chapter is assessed to the possessors or users of the property
18 on the same forms, and collected and distributed at the same time and in the same manner, as taxes
19 assessed owners, possessors, or other claimants of property which is subject to ad valorem property
20 taxation. The tax is not a lien against the property, and no tax-exempt property may be attached,
21 encumbered, sold, or otherwise affected for the collection of the tax.
22 Section 2. Retrospective operation.
23 This act has retrospective operation to January 1, 1997.




Legislative Review Note
as of 2-13-97 2:03 PM

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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