S.J.R. 6 Enrolled

JOINT RESOLUTION URGING A STUDY
OF CERTAIN EXEMPTIONS
2002 GENERAL SESSION
STATE OF UTAH
Sponsor: Michael G. Waddoups
This joint resolution of the Legislature urges the Tax Review Commission to conduct a
two-year study of certain tax exemptions, suggests the scope of the study, and requests the
Commission to make annual reports to the Revenue and Taxation Interim Committee.
Be it resolved by the Legislature of the state of Utah:
WHEREAS, by the year 2007 public education enrollment is expected to increase by more
than 50,000 students;
WHEREAS, by the year 2007 higher education enrollment is expected to increase by more
than 20,000 students;
WHEREAS, education funding needs should be examined and a variety of options for
addressing these funding needs should be considered; and
WHEREAS, the Utah Tax Review Commission is well situated and qualified to examine
issues relating to tax exemptions and their impact on education funding:
NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah urge the
Utah Tax Review Commission to conduct a study during the 2002 and 2003 interims as follows:
(1) (a) Study tax exemptions that an electrical power system owned by a city or town, a
community or other recreation facility owned by the state or a county, city, or town, or a hospital
or nursing home owned by a nonprofit entity may be allowed under the Utah Constitution or
statute, including:
(i) sales and use tax exemptions;
(ii) property tax exemptions;
(iii) individual income tax exemptions; and
(iv) corporate franchise and income tax exemptions.
(b) Study other tax exemptions for the entities described in Subsection (1)(a) as the Utah
Tax Review Commission considers appropriate.

(c) Study one or more tax exemptions described in Subsection (1)(a) allowed to a company,
a center, or an entity other than an entity described in Subsection (1)(a) that:
(i) provides services that are similar to the services provided by an entity that is subject to
taxation; or
(ii) competes for business with an entity that is subject to taxation.
(2) (a) Review the cost of the exemptions that the Utah Tax Review Commission studies.
(b) Review the purpose and effectiveness of the exemptions that the Utah Tax Review
Commission studies.
(c) Determine whether the exemptions that the Utah Tax Review Commission studies benefit
the state.
(d) Determine whether the exemptions that the Utah Tax Review Commission studies result
in an unfair competitive advantage to an entity described in Subsection (1)(a) as compared to an
entity subject to taxation that:
(i) provides services that are similar to the services provided by the entity described in
Subsection (1)(a); or
(ii) competes for business with the entity described in Subsection (1)(a).
(e) Review the taxes imposed on entities subject to taxation that provide services that are
similar to the services provided by an entity described in Subsection (1)(a) or compete for business
with an entity described in Subsection (1)(a), including:
(i) sales and use taxes;
(ii) property taxes;
(iii) individual income taxes; and
(iv) corporate franchise and income taxes.
(f) Determine whether an entity described in Subsection (1)(a) should contribute to funding
public education, higher education, or both.
(g) Determine whether any of the exemptions allowed to an entity described in Subsection
(1)(a) that the Utah Tax Review Commission studies should be:
(i) continued;

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(ii) modified; or
(iii) repealed.
(h) If the Utah Tax Review Commission determines that an exemption allowed to an entity
described in Subsection (1)(a) should be repealed, determine whether there should be imposed on
the entity:
(i) a tax;
(ii) a fee; or
(iii) a combination of a tax and a fee.
BE IT FURTHER RESOLVED that the Legislature urge the Utah Tax Review Commission,
in conducting the study, to request and consider testimony from:
(1) (a) one or more cities or towns that own an electrical power system; or
(b) the state or one or more counties, cities, or towns that own a community or other
recreation facility;
(2) one or more directors or officers of a:
(a) hospital owned by a nonprofit entity; or
(b) nursing home owned by a nonprofit entity; and
(3) one or more owners, managers, or operators of an entity subject to taxation that competes
for business with an entity described in Subsection (1)(a) of the preceding paragraph that is allowed
an exemption described in that subsection.
BE IT FURTHER RESOLVED that the Legislature urge the Utah Tax Review Commission
to report to the Revenue and Taxation Interim Committee:
(1) on or before the November 2002 interim meeting regarding the Utah Tax Review
Commission's progress on its study; and
(2) on or before the November 2003 interim meeting regarding:
(a) the Utah Tax Review Commission's findings and recommendations on its study; and
(b) the basis for determining whether the exemptions that the Utah Tax Review Commission
studies should be:
(i) continued;

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(ii) modified; or
(iii) repealed.
BE IT FURTHER RESOLVED that a copy of this joint resolution be delivered to the chair
of the Utah Tax Review Commission.

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