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First Substitute H.B. 286

Representative David Ure proposes the following substitute bill:


             1     
WASTE TAX AND FEE AMENDMENTS

             2     
2003 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: David Ure

             5      This act modifies the Environmental Quality Code and the Revenue and Taxation Code
             6      to increase fees on radioactive waste and hazardous waste, modify taxes paid by
             7      radioactive waste facilities, and impose taxes on hazardous waste facilities and
             8      nonhazardous solid waste facilities. This act increases a regulatory fee on radioactive
             9      waste received at a radioactive waste facility and increases a regulatory fee on hazardous
             10      waste received at a hazardous waste facility for treatment and disposal. This act
             11      eliminates a tax imposed on radioactive waste and imposes a tax on radioactive waste
             12      facilities. This act imposes a tax on hazardous waste facilities and nonhazardous solid
             13      waste facilities based on gross receipts derived from the treatment or disposal of
             14      hazardous waste and nonhazardous solid waste. This act increases the fee on the disposal
             15      of PCBs, nonhazardous solid waste, and municipal waste. This act amends the definition
             16      of gross receipts as it relates to radioactive waste.
             17      This act affects sections of Utah Code Annotated 1953 as follows:
             18      AMENDS:
             19          19-3-106, as last amended by Chapter 314, Laws of Utah 2001
             20          19-6-118, as last amended by Chapter 380, Laws of Utah 1997
             21          59-24-101, as enacted by Chapter 314, Laws of Utah 2001
             22          59-24-102, as enacted by Chapter 314, Laws of Utah 2001
             23          59-24-103, as enacted by Chapter 314, Laws of Utah 2001
             24          59-24-105, as enacted by Chapter 314, Laws of Utah 2001
             25      ENACTS:



             26          59-24-103.5, Utah Code Annotated 1953
             27          59-25-101, Utah Code Annotated 1953
             28          59-25-102, Utah Code Annotated 1953
             29          59-25-103, Utah Code Annotated 1953
             30          59-25-104, Utah Code Annotated 1953
             31          59-25-105, Utah Code Annotated 1953
             32          59-25-106, Utah Code Annotated 1953
             33          59-25-107, Utah Code Annotated 1953
             34          59-25-108, Utah Code Annotated 1953
             35          59-25-109, Utah Code Annotated 1953
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 19-3-106 is amended to read:
             38           19-3-106. Fee for commercial radioactive waste disposal or treatment.
             39          (1) (a) An owner or operator of a commercial radioactive waste treatment or disposal
             40      facility that receives radioactive waste shall collect a fee from the generator of the waste as
             41      provided in Subsection (1)(b).
             42          (b) (i) On and after July 1, 1994 through June 30, 2001, the fee is $2.50 per ton, or
             43      fraction of a ton, of radioactive waste, other than byproduct material, received at the facility for
             44      disposal or treatment.
             45          (ii) On and after July 1, 2001 through June 30, 2003, the fee is equal to the sum of the
             46      following amounts:
             47          (A) 10 cents per cubic foot, or fraction of a cubic foot, of radioactive waste, other than
             48      byproduct material, received at the facility for disposal or treatment; and
             49          (B) $1 per curie, or fraction of a curie, of radioactive waste, other than byproduct
             50      material, received at the facility for disposal or treatment.
             51          (iii) On and after July 1, 2003, the fee is equal to the sum of the following amounts:
             52          (A) 15 cents per cubic foot, or fraction of a cubic foot, of radioactive waste, other than
             53      byproduct material, received at the facility for disposal or treatment; and
             54          (B) $1 per curie, or fraction of a curie, of radioactive waste, other than byproduct
             55      material, received at the facility for disposal or treatment.
             56          (2) (a) The owner or operator shall remit the fees imposed under this section to the



             57      department on or before the 15th day of the month following the month in which the fee
             58      accrued.
             59          (b) The department shall deposit all fees received under this section into the
             60      Environmental Quality Restricted Account created in Section 19-1-108 .
             61          (c) The owner or operator shall submit to the department with the payment of the fee
             62      under this Subsection (2) a completed form as prescribed by the department that provides
             63      information the department requires to verify the amount of waste received and the fee amount
             64      for which the owner or operator is liable.
             65          (3) The Legislature shall appropriate to the department funds to cover the cost of
             66      radioactive waste disposal supervision.
             67          Section 2. Section 19-6-118 is amended to read:
             68           19-6-118. Hazardous waste and treated hazardous waste disposal fees.
             69          (1) (a) An owner or operator of any commercial hazardous waste or mixed waste
             70      disposal or treatment facility that primarily receives hazardous or mixed wastes generated by
             71      off-site sources not owned, controlled, or operated by the facility or site owner or operator, and
             72      that is subject to the requirements of Section 19-6-108 , shall collect the fee under Subsection
             73      (2) from the generator.
             74          (b) The owner or operator of each cement kiln, aggregate kiln, boiler, blender, or
             75      industrial furnace that receives for burning hazardous waste generated by off-site sources not
             76      owned, controlled, or operated by the owner or operator is subject to the fee under Subsection
             77      (2).
             78          (2) (a) The owner or operator of each facility under Subsection (1) shall collect from
             79      the generators of hazardous waste and mixed waste a fee of $28 per ton or fraction of a ton on
             80      all hazardous waste and mixed waste received at the facility or site for disposal, treatment, or
             81      both.
             82          (b) When hazardous waste or mixed waste is received at a facility for treatment or
             83      disposal and the fee required under this subsection is paid for that treatment or disposal, any
             84      subsequent treatment or disposal of the waste is not subject to additional fees under this
             85      Subsection (2).
             86          (c) (i) [Hazardous] On and after July 1, 1997 through June 30, 2003, hazardous waste
             87      received at a land disposal facility is subject to a fee of $14 per ton or fraction of a ton, rather


             88      than the $28 fee under Subsection (2)(a), if the waste is treated so that it:
             89          [(i)] (A) meets the state treatment standards required for land disposal at the facility; or
             90          [(ii)] (B) is no longer a hazardous waste at the time of disposal at that facility.
             91          (ii) On and after July 1, 2003, hazardous waste received at a land disposal facility for
             92      treatment and disposal is subject to the $28 fee imposed under Subsection (2)(a).
             93          (d) (i) The department shall allocate at least 10% of the fees received from a facility
             94      under this section to the county in which the facility is located.
             95          (ii) The county may use fees allocated under Subsection (2)(c) to carry out its
             96      hazardous waste monitoring and response programs.
             97          (e) The department shall deposit the state portion of the fees received under this section
             98      into the restricted account created in Section 19-1-108 .
             99          (3) (a) The owner or operator shall pay the fees imposed under Subsection (1) to the
             100      department on or before the 15th day of the month following the month in which the fee
             101      accrued.
             102          (b) With the monthly fee, the owner or operator shall submit a completed form, as
             103      prescribed by the department, specifying information required by the department to verify the
             104      amount of waste received and the fee amount for which the owner or operator is liable.
             105          (4) The department shall oversee and monitor hazardous waste treatment, disposal, and
             106      incineration facilities, including federal government facilities located within the state. The
             107      department may determine facility oversight priorities.
             108          (5) (a) The department, in preparing its budget for the governor and the Legislature,
             109      shall separately indicate the amount necessary to administer the hazardous waste program
             110      established by this part.
             111          (b) The Legislature shall appropriate the costs of administering this program.
             112          (6) The Office of Legislative Fiscal Analyst shall monitor the fees collected under this
             113      part.
             114          Section 3. Section 59-24-101 is amended to read:
             115           59-24-101. Title.
             116          This chapter is known as the "Radioactive Waste Facility Tax Act."
             117          Section 4. Section 59-24-102 is amended to read:
             118           59-24-102. Definitions.


             119          As used in this chapter:
             120          (1) (a) "Alternate feed material" means a natural or native material:
             121          (i) mined for the extraction of its constituents or other matter from which source
             122      material may be extracted in a licensed uranium or thorium mill; and
             123          (ii) may be reprocessed for its source material content.
             124          (b) "Alternate feed material" does not include:
             125          (i) material containing hazardous waste listed under 40 C.F.R. Part 261, Subpart D;
             126          (ii) natural or unprocessed ore; or
             127          (iii) naturally occurring radioactive materials containing greater than 15 picocuries per
             128      gram of radium-226.
             129          (2) "Byproduct material" is as defined in 42 U.S.C. Sec. 2014(e)(2).
             130          (3) "Class A low-level radioactive waste" means radioactive waste that is classified as
             131      class A waste under 10 C.F.R. 61.55.
             132          (4) "Containerized class A waste" means class A low-level radioactive waste that is
             133      placed in the portion of a radioactive waste facility that is licensed to receive containerized
             134      class A waste.
             135          (5) (a) "Gross receipts" means all consideration an owner or operator of a radioactive
             136      waste facility receives for the disposal of radioactive waste in the state, without any deduction
             137      or expense paid or accrued related to the disposal of the radioactive waste.
             138          (b) "Gross receipts" do not include fees collected under Section 19-3-106 or any other
             139      taxes paid to a state or federal governmental entity.
             140          (6) (a) "Processed class A waste" means waste that:
             141          (i) is class A low-level radioactive waste; and
             142          (ii) has been concentrated by a processor.
             143          (b) "Processed class A waste" does not include containerized class A waste.
             144          (7) "Radioactive waste" means:
             145          (a) alternate feed material;
             146          (b) byproduct material;
             147          (c) containerized class A waste;
             148          (d) processed class A waste; or
             149          (e) uncontainerized, unprocessed class A waste.


             150          (8) "Radioactive waste facility" or "facility" means:
             151          (a) a facility licensed under Section 19-3-105 ; or
             152          (b) a uranium mill licensed under 10 C.F.R. Part 40, Domestic Licensing of Source
             153      Material.
             154          (9) (a) "Uncontainerized, unprocessed class A waste" means class A low-level
             155      radioactive waste that:
             156          (i) is neither containerized class A waste, nor processed class A waste; and
             157          (ii) must be disposed of under rules of the Nuclear Regulatory Commission in a
             158      licensed low-level radioactive waste disposal facility.
             159          (b) "Uncontainerized, unprocessed class A waste" does not include alternate feed
             160      material.
             161          Section 5. Section 59-24-103 is amended to read:
             162           59-24-103. Tax imposed on radioactive waste.
             163          (1) Beginning on April 1, 2001 through June 30, 2003, there is imposed a tax on
             164      radioactive waste received at a radioactive waste facility, as provided in this chapter.
             165          (2) The tax is equal to the sum of the following amounts:
             166          (a) 12% of the gross receipts received from the disposal of containerized class A waste;
             167          (b) 10% of the gross receipts received from the disposal of processed class A waste;
             168          (c) 5% of the gross receipts received from the disposal of uncontainerized, unprocessed
             169      class A waste;
             170          (d) 10 cents per cubic foot of alternate feed material received at a radioactive waste
             171      facility for disposal or reprocessing; and
             172          (e) 10 cents per cubic foot of byproduct material received at a radioactive waste facility
             173      for disposal.
             174          (3) For purposes of the tax imposed by this section, a fraction of a cubic foot is
             175      considered to be a full cubic foot.
             176          (4) The tax imposed by this section applies to:
             177          (a) gross receipts received:
             178          (i) pursuant to a contract entered into on or after April 30, 2001;
             179          (ii) pursuant to a contract substantially modified on or after April 30, 2001;
             180          (iii) pursuant to a contract renewed or extended on or after April 30, 2001;


             181          (iv) not pursuant to a contract; or
             182          (v) for the disposal of containerized class A waste; and
             183          (b) alternate feed material or byproduct material received:
             184          (i) pursuant to a contract entered into on or after April 30, 2001;
             185          (ii) pursuant to a contract substantially modified on or after April 30, 2001;
             186          (iii) pursuant to a contract renewed or extended on or after April 30, 2001; or
             187          (iv) not pursuant to a contract.
             188          (5) The tax imposed by this section does not apply to radioactive waste containing
             189      material classified as hazardous waste under 40 C.F.R. Part 261.
             190          Section 6. Section 59-24-103.5 is enacted to read:
             191          59-24-103.5. Radioactive waste disposal, processing, and recycling facility tax.
             192          (1) On and after July 1, 2003, there is imposed a tax on a radioactive waste facility, or a
             193      processing or recycling facility, as provided in this chapter.
             194          (2) The tax is equal to the sum of the following amounts:
             195          (a) 12% of the gross receipts of a radioactive waste facility derived from the disposal of
             196      containerized class A waste;
             197          (b) 10% of the gross receipts of a radioactive waste facility derived from the disposal
             198      of processed class A waste;
             199          (c) 5% of the gross receipts of a radioactive waste facility derived from the disposal of
             200      uncontainerized, unprocessed class A waste from a governmental entity or an agent of a
             201      governmental entity:
             202          (i) pursuant to a contract entered into on or after April 30, 2001;
             203          (ii) pursuant to a contract substantially modified on or after April 30, 2001;
             204          (iii) pursuant to a contract renewed or extended on or after April 30, 2001; or
             205          (iv) not pursuant to a contract;
             206          (d) 5% of the gross receipts of a radioactive waste facility derived from the disposal of
             207      uncontainerized, unprocessed class A waste received by the facility from an entity other than a
             208      governmental entity or an agent of a governmental entity;
             209          (e) 5% of the gross receipts of a radioactive waste facility derived from the disposal of
             210      mixed waste received from an entity other than a governmental entity or an agent of a
             211      governmental entity;


             212          (f) 10 cents per cubic foot of alternate feed material received at a radioactive waste
             213      facility for disposal or reprocessing; and
             214          (g) 10 cents per cubic foot of byproduct material received at a radioactive waste facility
             215      for disposal.
             216          (3) For purposes of the tax imposed by this section, a fraction of a cubic foot is
             217      considered to be a full cubic foot.
             218          (4) Except as provided in Subsection (2)(e), the tax imposed by this section does not
             219      apply to radioactive waste containing material classified as hazardous waste under 40 C.F.R.
             220      Part 261.
             221          Section 7. Section 59-24-105 is amended to read:
             222           59-24-105. Deposit of tax revenue.
             223          The commission shall deposit the tax revenue collected under this chapter into the
             224      [General] Uniform School Fund.
             225          Section 8. Section 59-25-101 is enacted to read:
             226     
CHAPTER 25. HAZARDOUS WASTE FACILITY AND NONHAZARDOUS

             227     
SOLID WASTE FACILITY TAX ACT

             228          59-25-101. Title.
             229          This chapter is known as the "Hazardous Waste Facility and Nonhazardous Solid Waste
             230      Facility Tax Act."
             231          Section 9. Section 59-25-102 is enacted to read:
             232          59-25-102. Definitions.
             233          As used in this chapter:
             234          (1) "Construction waste or demolition waste" is as defined in Section 19-6-102 .
             235          (2) "Disposal" is as defined in Section 19-6-102 .
             236          (3) "Hazardous waste" is as defined in Section 19-6-102 .
             237          (4) "Hazardous waste facility" means a hazardous waste treatment and disposal facility,
             238      as defined in Section 19-6-202 , that receives, for profit, hazardous waste for treatment or
             239      disposal.
             240          (5) "Household waste" is as defined in Section 19-6-102 .
             241          (6) "Municipal solid waste" means household waste, nonhazardous commercial solid
             242      waste, and nonhazardous sludge.


             243          (7) "Nonhazardous solid waste" is solid waste, as defined in Section 19-6-102 , except
             244      that it does not include:
             245          (a) hazardous waste;
             246          (b) municipal solid waste; or
             247          (c) construction waste or demolition waste.
             248          (8) "Nonhazardous solid waste facility" means a commercial nonhazardous solid waste
             249      treatment or disposal facility as defined in Section 19-6-102 .
             250          (9) "Solid waste" is as defined in Section 19-6-102 .
             251          (10) "Treatment" is as defined in Section 19-6-102 .
             252          Section 10. Section 59-25-103 is enacted to read:
             253          59-25-103. Hazardous waste facility and nonhazardous solid waste facility tax.
             254          (1) On and after July 1, 2003, there is imposed a tax on a hazardous waste facility and a
             255      nonhazardous solid waste facility as provided in this chapter.
             256          (2) The tax is equal to the sum of the following amounts:
             257          (a) 3% of the gross receipts of a hazardous waste facility derived from the treatment or
             258      disposal of hazardous waste; and
             259          (b) 3% of the gross receipts of a hazardous waste facility or nonhazardous solid waste
             260      facility derived from the treatment or disposal of nonhazardous solid waste.
             261          (3) If hazardous waste or nonhazardous solid waste is received at a hazardous waste
             262      facility or nonhazardous solid waste is received at a nonhazardous solid waste facility and the
             263      tax imposed by this chapter is paid for the treatment of the waste, any subsequent treatment or
             264      disposal of the waste is not subject to additional taxes under this chapter.
             265          Section 11. Section 59-25-104 is enacted to read:
             266          59-25-104. Payment of tax.
             267          (1) The tax imposed by Section 59-25-103 shall be paid by the owner or operator of the
             268      hazardous waste facility or nonhazardous solid waste facility that receives the hazardous waste
             269      or nonhazardous solid waste for treatment or disposal.
             270          (2) The payment shall be accompanied by the form prescribed by the commission.
             271          (3) The payment shall be paid quarterly on or before the last day of the month next
             272      succeeding each calendar quarterly period.
             273          Section 12. Section 59-25-105 is enacted to read:


             274          59-25-105. Deposit of tax revenue.
             275          The commission shall deposit the tax revenue collected under this chapter into the
             276      Uniform School Fund.
             277          Section 13. Section 59-25-106 is enacted to read:
             278          59-25-106. Records.
             279          (1) An owner or operator of a hazardous waste facility or nonhazardous solid waste
             280      facility shall maintain records, statements, books, or accounts necessary to determine the
             281      amount of tax for which the owner or operator is liable under this chapter.
             282          (2) The commission may require an owner or operator of a hazardous waste facility or
             283      nonhazardous solid waste facility, by notice served upon the person, or by rule, to make or keep
             284      the records, statements, books, or accounts the commission considers sufficient to show the
             285      amount of tax for which the owner or operator is liable under this chapter.
             286          (3) After notice by the commission, the owner or operator of a hazardous waste facility
             287      or nonhazardous solid waste facility shall open the records, statements, books, or accounts
             288      specified in Subsection (2) for examination by the commission or its duly authorized agent.
             289          Section 14. Section 59-25-107 is enacted to read:
             290          59-25-107. Action for collection of tax -- Action for refund or credit of tax.
             291          (1) Except as provided in Subsections (2) through (5):
             292          (a) the commission shall assess a tax under this chapter within three years after a
             293      taxpayer files a return; and
             294          (b) if the commission does not assess a tax under this chapter within the three-year
             295      period provided in Subsection (1)(a), the commission may not commence a proceeding to
             296      collect the tax.
             297          (2) The commission may assess a tax at any time if a taxpayer:
             298          (a) files a false or fraudulent return with intent to evade; or
             299          (b) does not file a return.
             300          (3) The commission may extend the period to make an assessment or to commence a
             301      proceeding to collect the tax under this chapter if:
             302          (a) the three-year period under Subsection (1) has not expired; and
             303          (b) the commission and the taxpayer sign a written agreement:
             304          (i) authorizing the extension; and


             305          (ii) providing for the length of the extension.
             306          (4) If the commission delays an audit at the request of a taxpayer, the commission may
             307      make an assessment as provided in Subsection (5) if:
             308          (a) the taxpayer subsequently refuses to agree to an extension request by the
             309      commission; and
             310          (b) the three-year period under Subsection (1) expires before the commission
             311      completes the audit.
             312          (5) An assessment under Subsection (4) shall be:
             313          (a) for the time period for which the commission could not make an assessment
             314      because of the expiration of the three-year period; and
             315          (b) in an amount equal to the difference between:
             316          (i) the commission's estimate of the amount of tax the taxpayer would have been
             317      assessed for the time period described in Subsection (5)(a); and
             318          (ii) the amount of tax the taxpayer actually paid for the time period described in
             319      Subsection (5)(a).
             320          (6) (a) Except as provided in Subsection (6)(b), the commission may not make a credit
             321      or refund unless the taxpayer files a claim with the commission within three years of the date of
             322      overpayment.
             323          (b) The commission shall extend the period for a taxpayer to file a claim under
             324      Subsection (6)(a) if:
             325          (i) the three-year period under Subsection (6)(a) has not expired; and
             326          (ii) the commission and the taxpayer sign a written agreement:
             327          (A) authorizing the extension; and
             328          (B) providing for the length of the extension.
             329          Section 15. Section 59-25-108 is enacted to read:
             330          59-25-108. Rulemaking authority.
             331          The commission may make rules under Title 63, Chapter 46a, Utah Administrative
             332      Rulemaking Act, to implement and enforce this chapter.
             333          Section 16. Section 59-25-109 is enacted to read:
             334          59-25-109. Penalties and interest.
             335          An owner or operator of a hazardous waste facility or nonhazardous solid waste facility


             336      who fails to comply with this chapter is subject to penalties and interest as provided in Sections
             337      59-1-401 and 59-1-402 .


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