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First Substitute S.B. 23

This document includes House Committee Amendments incorporated into the bill on Wed, Jan 26, 2005 at 4:16 PM by ddonat. -->

Senator Curtis S. Bramble proposes the following substitute bill:


             1     
PROPERTY TAX TREATMENT OF TANGIBLE

             2     
PERSONAL PROPERTY

             3     
2005 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Curtis S. Bramble

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill amends the Motor Vehicles title, the Property Tax Act, the Corporate
             10      Franchise and Income Taxes chapter, and the Individual Income Tax Act to address the
             11      property tax treatment of tangible personal property.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    addresses the uniform fees that are required to be received by a city library fund;
             16          .    imposes uniform statewide fees on certain tangible personal property required to be
             17      registered with the state;
             18          .    provides procedures for measuring the length of a vessel for purposes of imposing
             19      uniform statewide fees on vessels;
             20          .    provides for the collection of the uniform statewide fees;
             21          .    provides that the uniform statewide fees shall be imposed at the time of registration
             22      and renewal of registration;
             23          .    addresses the appeals process for personal property;
             24          .    provides that for purposes of the corporate franchise and income tax credits and
             25      individual income tax credits for renewable energy systems a residential unit does



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             26
     not include property subject to the uniform statewide fees;
             27          .    grants rulemaking authority to the State Tax Commission; and
             28          .    makes technical changes.
             29      Monies Appropriated in this Bill:
             30          None
             31      Other Special Clauses:
             32          This bill takes effect on January 1, 2006.
             33      Utah Code Sections Affected:
             34      AMENDS:
             35          9-7-401, as last amended by Chapter 13, Laws of Utah 1998
             36          41-1a-222, as last amended by Chapter 322, Laws of Utah 1998
             37          59-2-405, as last amended by Chapter 12, Laws of Utah 2001, First Special Session
             38          59-2-405.1, as last amended by Chapter 12, Laws of Utah 2001, First Special Session
             39          59-2-406, as last amended by Chapters 109 and 322, Laws of Utah 1998
             40          59-2-407, as last amended by Chapter 207, Laws of Utah 1999
             41          59-2-924, as last amended by Chapter 122, Laws of Utah 2003
             42          59-2-1005, as last amended by Chapter 146, Laws of Utah 1994
             43          59-7-614, as enacted by Chapter 6, Laws of Utah 2001, First Special Session
             44          59-10-134, as enacted by Chapter 6, Laws of Utah 2001, First Special Session
             45      ENACTS:
             46          59-2-405.2, Utah Code Annotated 1953
             47     

             48      Be it enacted by the Legislature of the state of Utah:
             49          Section 1. Section 9-7-401 is amended to read:
             50           9-7-401. Tax for establishment and maintenance of public library -- Library
             51      fund.
             52          (1) A city governing body may establish and maintain a public library.
             53          (2) For this purpose, cities may levy annually a tax not to exceed .001 of taxable value
             54      of taxable property in the city. The tax is in addition to all taxes levied by cities and is not
             55      limited by the levy limitation imposed on cities by law. However, if bonds are issued for
             56      purchasing a site, or constructing or furnishing a building, then taxes sufficient for the payment



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             57
     of the bonds and any interest may be levied.
             58          (3) The taxes shall be levied and collected in the same manner as other general taxes of
             59      the city and shall constitute a fund to be known as the city library fund.
             60          (4) The city library fund shall receive a portion of:
             61          (a) the uniform fee imposed by Section 59-2-404 in accordance with the procedures
             62      established in Section 59-2-404 ;
             63          (b) the statewide uniform fee [on tangible personal property] imposed by Section
             64      59-2-405 in accordance with the procedures established in [Subsection] Section 59-2-405 [(5).];
             65          (c) the statewide uniform fee imposed by Section 59-2-405.1 in accordance with the
             66      procedures established in Section 59-2-405.1 ; and
             67          (d) the uniform statewide fee imposed by Section 59-2-405.2 in accordance with the
             68      procedures established in Section 59-2-405.2 .
             69          Section 2. Section 41-1a-222 is amended to read:
             70           41-1a-222. Application for multiyear registration -- Payment of taxes -- Penalties.
             71          (1) The owner of any intrastate fleet of commercial vehicles which is based in the state
             72      may apply to the commission for registration in accordance with this section.
             73          (a) The application shall be made on a form prescribed by the commission.
             74          (b) Upon payment of required fees and meeting other requirements prescribed by the
             75      commission, the division shall issue, to each vehicle for which application has been made, a
             76      multiyear license plate and registration card.
             77          (i) The license plate decal and the registration card shall bear an expiration date fixed
             78      by the division and are valid until ownership of the vehicle to which they are issued is
             79      transferred by the applicant or until the expiration date, whichever comes first.
             80          (ii) An annual renewal application must be made by the owner if registration
             81      identification has been issued on an annual installment fee basis and the required fees must be
             82      paid on an annual basis.
             83          (iii) License plates and registration cards issued pursuant to this section are valid for an
             84      eight-year period, commencing with the year of initial application in this state.
             85          (c) When application for registration or renewal is made on an installment payment
             86      basis, the applicant shall submit acceptable evidence of a surety bond in a form, and with a
             87      surety, approved by the commission and in an amount equal to the total annual fees required



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             88
     for all vehicles registered to the applicant in accordance with this section.
             89          (2) Each vehicle registered as part of a fleet of commercial vehicles must be titled in
             90      the name of the fleet.
             91          (3) Each owner who registers fleets pursuant to this section shall pay the taxes or in
             92      lieu fees otherwise due pursuant to:
             93          (a) Section 41-1a-206 ;
             94          (b) Section 41-1a-207 ;
             95          (c) Subsection 41-1a-301 (11);
             96          [(c)] (d) Section 59-2-405.1 ; or
             97          [(d) Subsection 41-1a-301 (11).]
             98          (e) Section 59-2-405.2 .
             99          (4) An owner who fails to comply with the provisions of this section is subject to the
             100      penalties in Section 41-1a-1301 and, if the commission so determines, will result in the loss of
             101      the privileges granted in this section.
             102          Section 3. Section 59-2-405 is amended to read:
             103           59-2-405. Uniform fee on tangible personal property required to be registered
             104      with the state -- Distribution of revenues -- Appeals.
             105          (1) The property described in Subsection (2), except Subsections (2)(b)(ii) and (iii), is
             106      exempt from ad valorem property taxes pursuant to Utah Constitution Article XIII, Section
             107      [14] 2, Subsection (6).
             108          (2) (a) Except as provided in Subsection (2)(b), there is levied as provided in this part a
             109      statewide uniform fee in lieu of the ad valorem tax on:
             110          (i) motor vehicles required to be registered with the state that weigh 12,001 pounds or
             111      more;
             112          (ii) motorcycles as defined in Section 41-1a-102 that are required to be registered with
             113      the state;
             114          (iii) watercraft required to be registered with the state;
             115          (iv) recreational vehicles required to be registered with the state; and
             116          (v) all other tangible personal property required to be registered with the state before it
             117      is used on a public highway, on a public waterway, on public land, or in the air.
             118          (b) The following tangible personal property is exempt from the statewide uniform fee



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             119
     imposed by this section:
             120          (i) aircraft;
             121          (ii) vintage vehicles as defined in Section 41-21-1 ;
             122          (iii) state-assessed commercial vehicles;
             123          (iv) tangible personal property subject to a uniform fee imposed by:
             124          (A) Section 59-2-405.1 ; or
             125          (B) Section 59-2-405.2 ; and
             126          (v) personal property that is exempt from state or county ad valorem property taxes
             127      under the laws of this state or of the federal government.
             128          (3) Beginning on January 1, 1999, the uniform fee is 1.5% of the fair market value of
             129      the personal property, as established by the commission.
             130          (4) Notwithstanding Section 59-2-407 , property subject to the uniform fee that is
             131      brought into the state and is required to be registered in Utah shall, as a condition of
             132      registration, be subject to the uniform fee unless all property taxes or uniform fees imposed by
             133      the state of origin have been paid for the current calendar year.
             134          (5) (a) The revenues collected in each county from the uniform fee shall be distributed
             135      by the county to each taxing entity in which the property described in Subsection (2) is located
             136      in the same proportion in which revenue collected from ad valorem real property tax is
             137      distributed.
             138          (b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in
             139      the same proportion in which revenue collected from ad valorem real property tax is
             140      distributed.
             141          (6) [Appeals of the valuation of] An appeal relating to the uniform fee imposed on the
             142      tangible personal property described in Subsection (2) shall be filed pursuant to Section
             143      59-2-1005 .
             144          Section 4. Section 59-2-405.1 is amended to read:
             145           59-2-405.1. Uniform fee on certain vehicles weighing 12,000 pounds or less --
             146      Distribution of revenues.
             147          (1) The property described in Subsection (2), except Subsection (2)(b)(ii), is exempt
             148      from ad valorem property taxes pursuant to Utah Constitution Article XIII, Section [14] 2,
             149      Subsection (6).



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             150
         (2) (a) Except as provided in Subsection (2)(b), there is levied as provided in this part a
             151      statewide uniform fee in lieu of the ad valorem tax on:
             152          (i) motor vehicles as defined in Section 41-1a-102 that:
             153          (A) are required to be registered with the state; and
             154          (B) weigh 12,000 pounds or less; and
             155          (ii) state-assessed commercial vehicles required to be registered with the state that
             156      weigh 12,000 pounds or less.
             157          (b) The following tangible personal property is exempt from the statewide uniform fee
             158      imposed by this section:
             159          (i) aircraft;
             160          (ii) vintage vehicles as defined in Section 41-21-1 ;
             161          (iii) tangible personal property subject to [the] a uniform fee imposed by:
             162          (A) Section 59-2-405 ; or
             163          (B) Section 59-2-405.2 ; and
             164          (iv) tangible personal property that is exempt from state or county ad valorem property
             165      taxes under the laws of this state or of the federal government.
             166          (3) (a) Except as provided in Subsection (3)(b), beginning on January 1, 1999, the
             167      uniform fee for purposes of this section is as follows:
             168               Age of Vehicle                     Uniform Fee
             169              12 or more years                        $10
             170              9 or more years but less than 12 years            $50
             171              6 or more years but less than 9 years                $80
             172              3 or more years but less than 6 years                $110
             173              Less than 3 years                        $150
             174          (b) Notwithstanding Subsection (3)(a), beginning on September 1, 2001, for a motor
             175      vehicle issued a temporary sports event registration certificate in accordance with Section
             176      41-3-306 , the uniform fee for purposes of this section is $5 for the event period specified on the
             177      temporary sports event registration certificate regardless of the age of the motor vehicle.
             178          (4) Notwithstanding Section 59-2-407 , property subject to the uniform fee that is
             179      brought into the state and is required to be registered in Utah shall, as a condition of
             180      registration, be subject to the uniform fee unless all property taxes or uniform fees imposed by



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             181
     the state of origin have been paid for the current calendar year.
             182          (5) (a) The revenues collected in each county from the uniform fee shall be distributed
             183      by the county to each taxing entity in which the property described in Subsection (2) is located
             184      in the same proportion in which revenue collected from ad valorem real property tax is
             185      distributed.
             186          (b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in
             187      the same proportion in which revenue collected from ad valorem real property tax is
             188      distributed.
             189          [(6) Appeals of the valuation of the tangible personal property described in Subsection
             190      (2) shall be filed pursuant to Section 59-2-1005 .]
             191          Section 5. Section 59-2-405.2 is enacted to read:
             192          59-2-405.2. Definitions -- Uniform statewide fee on certain tangible personal
             193      property -- Distribution of revenues -- Rulemaking authority.
             194          (1) As used in this section:
             195          (a) (i) except as provided in Subsection (1)(a)(ii), "all-terrain vehicle" means a motor
             196      vehicle that:
             197          (A) is an:
             198          (I) all-terrain type I vehicle as defined in Section 41-22-2 ; or
             199          (II) all-terrain type II vehicle as defined in Section 41-22-2 ;
             200          (B) is required to be registered in accordance with Title 41, Chapter 22, Off-Highway
             201      Vehicles; and
             202          (C) has:
             203          (I) an engine with more than 100 cubic centimeters displacement;
             204          (II) a motor that produces more than five horsepower; or
             205          (III) an electric motor; and
             206          (ii) notwithstanding Subsection (1)(a)(i), "all-terrain vehicle" does not include a
             207      snowmobile;
             208          (b) "camper" means a camper:
             209          (i) as defined in Section 41-1a-102 ; and
             210          (ii) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             211      Registration;



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House Committee Amendments 1-26-2005 dd/rlr
             212
         (c) "dealer" is as defined in Section 41-1a-102 ;
             213          (d) "motor vehicle" is as defined in Section 41-22-2 ;
             214          (e) "other motorcycle" means a motor vehicle that H. [ ; ] : .H
             215          (i) is:
             216          (A) a motorcycle as defined in Section 41-1a-102 ; and
             217          (B) designed primarily for use and operation over unimproved terrain;
             218          (ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             219      Registration; and
             220          (iii) has:
             221          (A) an engine with more than 100 cubic centimeters displacement; or
             222          (B) a motor that produces more than five horsepower;
             223          (f) (i) "other trailer" means a portable vehicle without motive power that is primarily
             224      used:
             225          (A) to transport tangible personal property; and
             226          (B) for a purpose other than a commercial purpose; and
             227          (ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
             228      purposes of Subsection (1)(f)(i)(B), the commission may by rule define what constitutes a
             229      purpose other than a commercial purpose;
             230          (g) "outboard motor" is as defined in Section 41-1a-102 ;
             231          (h) "personal watercraft" means a personal watercraft:
             232          (i) as defined in Section 73-18-2 ; and
             233          (ii) that is required to be registered in accordance with Title 73, Chapter 18, State
             234      Boating Act;
             235          (i) (i) "small motor vehicle " means a motor vehicle that:
             236          (A) is required to be registered in accordance with Title 41, Motor Vehicles; and
             237          (B) has:
             238          (I) an engine with 100 or less cubic centimeters displacement; or
             239          (II) a motor that produces five or less horsepower; and
             240          (ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             241      commission may by rule develop a process for an owner of a motor vehicle to certify whether
             242      the motor vehicle has:



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             243
         (A) an engine with 100 or less cubic centimeters displacement; or
             244          (B) a motor that produces five or less horsepower;
             245          (j) "snowmobile" means a motor vehicle that:
             246          (i) is a snowmobile as defined in Section 41-22-2 ;
             247          (ii) is required to be registered in accordance with Title 41, Chapter 22, Off-Highway
             248      Vehicles; and
             249          (iii) has:
             250          (A) an engine with more than 100 cubic centimeters displacement; or
             251          (B) a motor that produces more than five horsepower;
             252          (k) "street motorcycle" means a motor vehicle that:
             253          (i) is:
             254          (A) a motorcycle as defined in Section 41-1a-102 ; and
             255          (B) designed primarily for use and operation on highways;
             256          (ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             257      Registration; and
             258          (iii) has:
             259          (A) an engine with more than 100 cubic centimeters displacement; or
             260          (B) a motor that produces more than five horsepower;
             261          (l) "tent trailer" means a portable vehicle without motive power that:
             262          (i) is constructed with collapsible side walls that:
             263          (A) fold for towing by a motor vehicle; and
             264          (B) unfold at a campsite;
             265          (ii) is designed as a temporary dwelling for travel, recreational, or vacation use;
             266          (iii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             267      Registration; and
             268          (iv) does not require a special highway movement permit when drawn by a
             269      self-propelled motor vehicle;
             270          (m) (i) except as provided in Subsection (1)(m)(ii), "travel trailer" means a travel
             271      trailer:
             272          (A) as defined in Section 41-1a-102 ; and
             273          (B) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2,



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             274
     Registration; and
             275          (ii) notwithstanding Subsection (1)(m)(i), "travel trailer" does not include:
             276          (A) a camper; or
             277          (B) a tent trailer; and
             278          (n) "vessel" means a vessel:
             279          (i) as defined in Section 73-18-2 , including an outboard motor of the vessel; and
             280          (ii) that is required to be registered in accordance with Title 73, Chapter 18, State
             281      Boating Act.
             282          (2) (a) In accordance with Utah Constitution Article XIII, Section 2, Subsection (6),
             283      beginning on January 1, 2006, the tangible personal property described in Subsection (2)(b) is:
             284          (i) exempt from the tax imposed by Section 59-2-103 ; and
             285          (ii) in lieu of the tax imposed by Section 59-2-103 , subject to uniform statewide fees as
             286      provided in this section.
             287          (b) The following tangible personal property applies to Subsection (2)(a) if that
             288      tangible personal property is required to be registered with the state:
             289          (i) an all-terrain vehicle;
             290          (ii) a camper;
             291          (iii) an other motorcycle;
             292          (iv) an other trailer;
             293          (v) a personal watercraft;
             294          (vi) a small motor vehicle;
             295          (vii) a snowmobile;
             296          (viii) a street motorcycle;
             297          (ix) a tent trailer;
             298          (x) a travel trailer; and
             299          (xi) a vessel if that vessel is less than 31 feet in length as determined under Subsection
             300      (6).
             301          (3) For purposes of this section, the uniform statewide fees are:
             302          (a) for an all-terrain vehicle, an other motorcycle, or a snowmobile:
             303      Age of All-Terrain Vehicle, Other Motorcycle, or Snowmobile    Uniform Statewide Fee
             304                  12 or more years                    $10



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             305
                 9 or more years but less than 12 years        $20
             306                  6 or more years but less than 9 years            $30
             307                  3 or more years but less than 6 years            $35
             308                  Less than 3 years                    $45
             309          (b) for a camper or a tent trailer:
             310              Age of Camper or Tent Trailer            Uniform Statewide Fee
             311                  12 or more years                    $10
             312                  9 or more years but less than 12 years        $25
             313                  6 or more years but less than 9 years            $35
             314                  3 or more years but less than 6 years            $50
             315                  Less than 3 years                    $70
             316          (c) for an other trailer:
             317              Age of Other Trailer                    Uniform Statewide Fee
             318                  12 or more years                    $10
             319                  9 or more years but less than 12 years        $15
             320                  6 or more years but less than 9 years            $20
             321                  3 or more years but less than 6 years            $25
             322                  Less than 3 years                    $30
             323          (d) for a personal watercraft:
             324              Age of Personal Watercraft                Uniform Statewide Fee
             325                  12 or more years                    $10
             326                  9 or more years but less than 12 years        $25
             327                  6 or more years but less than 9 years            $35
             328                  3 or more years but less than 6 years            $45
             329                  Less than 3 years                    $55
             330          (e) for a small motor vehicle:
             331              Age of Small Motor Vehicle                Uniform Statewide Fee
             332                  6 or more years                    $10
             333                  3 or more years but less than 6 years            $15
             334                  Less than 3 years                    $25
             335          (f) for a street motorcycle:



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             336
             Age of Street Motorcycle                Uniform Statewide Fee
             337                  12 or more years                    $10
             338                  9 or more years but less than 12 years        $35
             339                  6 or more years but less than 9 years            $50
             340                  3 or more years but less than 6 years            $70
             341                  Less than 3 years                    $95
             342          (g) for a travel trailer:
             343              Age of Travel Trailer                    Uniform Statewide Fee
             344                  12 or more years                    $20
             345                  9 or more years but less than 12 years        $65
             346                  6 or more years but less than 9 years            $90
             347                  3 or more years but less than 6 years            $135
             348                  Less than 3 years                    $175
             349          (h) for a vessel that is less than 15 feet in length, $10 regardless of the age of the
             350      vessel;
             351          (i) for a vessel that is 15 feet or more in length but less than 19 feet in length:
             352              Age of Vessel                    Uniform Statewide Fee
             353                  12 or more years                    $25
             354                  9 or more years but less than 12 years        $65
             355                  6 or more years but less than 9 years            $80
             356                  3 or more years but less than 6 years            $110
             357                  Less than 3 years                    $150
             358          (j) for a vessel that is 19 feet or more in length but less than 23 feet in length:
             359              Age of Vessel                    Uniform Statewide Fee
             360                  12 or more years                    $50
             361                  9 or more years but less than 12 years        $120
             362                  6 or more years but less than 9 years            $175
             363                  3 or more years but less than 6 years            $220
             364                  Less than 3 years                    $275
             365          (k) for a vessel that is 23 feet or more in length but less than 27 feet in length:
             366              Age of Vessel                    Uniform Statewide Fee



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             367
                 12 or more years                    $100
             368                  9 or more years but less than 12 years        $180
             369                  6 or more years but less than 9 years            $240
             370                  3 or more years but less than 6 years            $310
             371                  Less than 3 years                    $400
             372          (l) for a vessel that is 27 feet or more in length but less than 31 feet in length:
             373              Age of Vessel                    Uniform Statewide Fee
             374                  12 or more years                    $120
             375                  9 or more years but less than 12 years        $250
             376                  6 or more years but less than 9 years            $350
             377                  3 or more years but less than 6 years            $500
             378                  Less than 3 years                    $700
             379          (4) Notwithstanding Section 59-2-407 , tangible personal property subject to the
             380      uniform statewide fees imposed by this section that is brought into the state shall, as a
             381      condition of registration, be subject to the uniform statewide fees unless all property taxes or
             382      uniform fees imposed by the state of origin have been paid for the current calendar year.
             383          (5) (a) The revenues collected in each county from the uniform statewide fees imposed
             384      by this section shall be distributed by the county to each taxing entity in which each item of
             385      tangible personal property subject to the uniform statewide fees is located in the same
             386      proportion in which revenues collected from the ad valorem property tax are distributed.
             387          (b) Each taxing entity described in Subsection (5)(a) that receives revenues from the
             388      uniform statewide fees imposed by this section shall distribute the revenues in the same
             389      proportion in which revenues collected from the ad valorem property tax are distributed.
             390          (6) (a) For purposes of the uniform statewide fee imposed by this section, the length of
             391      a vessel shall be determined as provided in this Subsection (6).
             392          (b) (i) Except as provided in Subsection (6)(b)(ii), the length of a vessel shall be
             393      measured as follows:
             394          (A) the length of a vessel shall be measured in a straight line; and
             395          (B) the length of a vessel is equal to the distance between the bow of the vessel and the
             396      stern of the vessel.
             397          (ii) Notwithstanding Subsection (6)(b)(i), the length of a vessel may not include the



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             398
     length of:
             399          (A) a swim deck;
             400          (B) a ladder;
             401          (C) an outboard motor; or
             402          (D) an appurtenance or attachment similar to Subsections (6)(b)(ii)(A) through (C) as
             403      determined by the commission by rule.
             404          (iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             405      the commission may by rule define what constitutes an appurtenance or attachment similar to
             406      Subsections (6)(b)(ii)(A) through (C).
             407          (c) The length of a vessel:
             408          (i) (A) for a new vessel, is the length:
             409          (I) listed on the manufacturer's statement of origin if the length of the vessel measured
             410      under Subsection (6)(b) is equal to the length of the vessel listed on the manufacturer's
             411      statement of origin; or
             412          (II) listed on a form submitted to the commission by a dealer in accordance with
             413      Subsection (6)(d) if the length of the vessel measured under Subsection (6)(b) is not equal to
             414      the length of the vessel listed on the manufacturer's statement of origin; or
             415          (B) for a vessel other than a new vessel, is the length:
             416          (I) corresponding to the model number if the length of the vessel measured under
             417      Subsection (6)(b) is equal to the length of the vessel determined by reference to the model
             418      number; or
             419          (II) listed on a form submitted to the commission by an owner of the vessel in
             420      accordance with Subsection (6)(d) if the length of the vessel measured under Subsection (6)(b)
             421      is not equal to the length of the vessel determined by reference to the model number; H. and .H
             422          (ii) (A) is determined at the time of the:
             423          (I) first registration as defined in Section 41-1a-102 that occurs on or after January 1,
             424      2006; or
             425          (II) first renewal of registration that occurs on or after January 1, 2006; and
             426          (B) may be determined after the time described in Subsection (6)(c)(ii)(A) only if the
             427      commission requests that a dealer or an owner submit a form to the commission in accordance
             428      with Subsection (6)(d) H. [ ; and ] . .H



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             429
          H. [ (iii) is subject to appeal in accordance with Subsection (7). ] .H
             430          (d) (i) A form under Subsection (6)(c) shall:
             431          (A) be developed by the commission;
             432          (B) be provided by the commission to:
             433          (I) a dealer; or
             434          (II) an owner of a vessel;
             435          (C) provide for the reporting of the length of a vessel;
             436          (D) be submitted to the commission at the time the length of the vessel is determined in
             437      accordance with Subsection (6)(c)(ii);
             438          (E) be signed by:
             439          (I) if the form is submitted by a dealer, that dealer; or
             440          (II) if the form is submitted by an owner of the vessel, an owner of the vessel; and
             441          (F) include a certification that the information set forth in the form is true.
             442          (ii) A certification made under Subsection (6)(d)(i)(F) is considered as if made under
             443      oath and subject to the same penalties as provided by law for perjury.
             444          (iii) (A) A dealer or an owner that submits a form to the commission under Subsection
             445      (6)(c) is considered to have given the dealer's or owner's consent to an audit or review by:
             446          (I) the commission;
             447          (II) the county assessor; or
             448          (III) the commission and the county assessor.
             449          (B) The consent described in Subsection (6)(d)(iii)(A) is a condition to the acceptance
             450      of any form.
             451          Section 6. Section 59-2-406 is amended to read:
             452           59-2-406. Collection of uniform fees and other motor vehicle fees.
             453          (1) (a) For the purposes of efficiency in the collection of the uniform fee required by
             454      this section, the commission shall enter into a contract for the collection of the uniform fees
             455      required under Sections 59-2-405 [and], 59-2-405.1 , and 59-2-405.2 and certain fees required
             456      by Title 41, Motor Vehicles.
             457          (b) The contract required by this section shall, at the county's option, provide for one of
             458      the following collection agreements:
             459          (i) the collection by the commission of:



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             460
         (A) the uniform fees required under Sections 59-2-405 [and], 59-2-405.1 , and
             461      59-2-405.2 ; and
             462          (B) all [Title 41] fees listed in Subsection (1)(c); or
             463          (ii) the collection by the county of:
             464          (A) the uniform fees required under Sections 59-2-405 [and], 59-2-405.1 , and
             465      59-2-405.2 ; and
             466          (B) all [Title 41] fees listed in Subsection (1)(c).
             467          (c) [The Title 41] For purposes of Subsections (1)(b)(i)(B) and (1)(b)(ii)(B), the fees
             468      that are subject to the contractual agreement required by this section are the following fees
             469      imposed by Title 41, Motor Vehicles:
             470          (i) registration fees for vehicles, mobile homes, manufactured homes, boats, and
             471      off-highway vehicles, with the exception of fleet and proportional registration;
             472          (ii) title fees for vehicles, mobile homes, manufactured homes, boats, and off-highway
             473      vehicles;
             474          (iii) plate fees for vehicles;
             475          (iv) permit fees; and
             476          (v) impound fees.
             477          (d) A county may change the election it makes pursuant to Subsection (1)(b) by
             478      providing written notice of the change to the commission at least 18 months before the change
             479      shall take effect.
             480          (2) The contract shall provide that the party contracting to perform services shall:
             481          (a) be responsible for the collection of:
             482          (i) the uniform fees under Sections 59-2-405 [and], 59-2-405.1 , and 59-2-405.2 ; and
             483          (ii) [the applicable Title 41] any fees described in Subsection (1)(c) as agreed to in the
             484      contract;
             485          (b) utilize the documents and forms, guidelines, practices, and procedures that meet the
             486      contract specifications;
             487          (c) meet the performance standards and comply with applicable training requirements
             488      specified in the rules made under Subsection (8)(a); and
             489          (d) be subject to a penalty of 1/2 the difference between the reimbursement fee
             490      specified under Subsection (3) and the reimbursement fee for fiscal year 1997-98 if



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             491
     performance is below the performance standards specified in the rules made under Subsection
             492      (8)(a).
             493          (3) (a) The commission shall recommend a reimbursement fee for collecting the fees as
             494      provided in Subsection (2)(a), except that the commission may not collect a reimbursement fee
             495      on a state-assessed commercial vehicle described in Subsection 59-2-405.1 (2)(a)(ii).
             496          (b) The reimbursement fee shall be based on two dollars per standard unit for the first
             497      5,000 standard units in each county and one dollar per standard unit for all other standard units
             498      and shall be annually adjusted by the commission beginning July 1, 1999.
             499          (c) The adjustment shall be equal to any increase in the Consumer Price Index for all
             500      urban consumers, prepared by the United States Bureau of Labor Statistics, during the
             501      preceding calendar year.
             502          (d) The reimbursement fees under this Subsection (3) shall be appropriated by the
             503      Legislature.
             504          (4) All counties that elect to collect the uniform [fee] fees described in Subsection
             505      (1)(b)(ii)(A) and any other [Title 41] fees described in Subsection (1)(c) as provided by
             506      contract shall be subject to similar contractual terms.
             507          (5) The party performing the collection services by contract shall use appropriate
             508      automated systems software and equipment compatible with the system used by the other
             509      contracting party in order to ensure the integrity of the current motor vehicle data base and
             510      county tax systems, or successor data bases and systems.
             511          (6) If the county elects not to collect the uniform [fee] fees described in Subsection
             512      (1)(b)(ii)(A) and the [Title 41] fees described in Subsection (1)(c):
             513          (a) the commission shall:
             514          (i) collect the uniform [fee] fees described in Subsection (1)(b)(ii)(A) and [Title 41] the
             515      fees described in Subsection (1)(c) in each county or regional center as negotiated by the
             516      counties with the commission in accordance with the requirements of this section; and
             517          (ii) provide information to the county in a format and media consistent with the
             518      county's requirements; and
             519          (b) the county shall pay the commission a reimbursement fee as provided in Subsection
             520      (3).
             521          (7) This section shall not limit the authority given to the county in Section 59-2-1302 .



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             522
         (8) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             523      the commission shall make rules specifying the performance standards and applicable training
             524      requirements for all contracts required by this section.
             525          (b) Beginning on July 1, 1998, each new contract entered into under this section shall
             526      be subject to the rules made under Subsection (8)(a).
             527          Section 7. Section 59-2-407 is amended to read:
             528           59-2-407. Administration of uniform fees.
             529          (1) (a) Except as provided in Subsection 59-2-405 (4), the uniform fee authorized in
             530      Sections 59-2-404 and 59-2-405 shall be assessed at the same time and in the same manner as
             531      ad valorem personal property taxes under Chapter 2, Part 13, Collection of Taxes, except that
             532      in listing personal property subject to the uniform fee with real property as permitted by
             533      Section 59-2-1302 , the assessor or, if this duty has been reassigned in an ordinance under
             534      Section 17-16-5.5 , the treasurer shall list only the amount of the uniform fee due, and not the
             535      taxable value of the property subject to the uniform fee.
             536          (b) Except as provided in Subsection [ 59-2-405 ] 59-2-405.1 (4), the uniform fee
             537      [authorized in] imposed by Section 59-2-405.1 shall be assessed at the time of:
             538          (i) registration as defined in Section 41-1a-102 ; and
             539          (ii) renewal of registration.
             540          (c) Except as provided in Subsection 59-2-405.2 (4), the uniform statewide fee imposed
             541      by Section 59-2-405.2 shall be assessed at the time of:
             542          (i) registration as defined in Section 41-1a-102 ; and
             543          (ii) renewal of registration.
             544          (2) The remedies for nonpayment of the uniform fees authorized by Sections 59-2-404 ,
             545      59-2-405 , [and] 59-2-405.1 , and 59-2-405.2 shall be the same as those provided in Chapter 2,
             546      Part 13, Collection of Taxes, for nonpayment of ad valorem personal property taxes.
             547          Section 8. Section 59-2-924 is amended to read:
             548           59-2-924. Report of valuation of property to county auditor and commission --
             549      Transmittal by auditor to governing bodies -- Certified tax rate -- Rulemaking authority
             550      -- Adoption of tentative budget.
             551          (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to
             552      the county auditor and the commission the following statements:



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             553
         (i) a statement containing the aggregate valuation of all taxable property in each taxing
             554      entity; and
             555          (ii) a statement containing the taxable value of any additional personal property
             556      estimated by the county assessor to be subject to taxation in the current year.
             557          (b) The county auditor shall, on or before June 8, transmit to the governing body of
             558      each taxing entity:
             559          (i) the statements described in Subsections (1)(a)(i) and (ii);
             560          (ii) an estimate of the revenue from personal property;
             561          (iii) the certified tax rate; and
             562          (iv) all forms necessary to submit a tax levy request.
             563          (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad
             564      valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
             565      prior year.
             566          (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not
             567      include:
             568          (A) collections from redemptions;
             569          (B) interest; and
             570          (C) penalties.
             571          (iii) Except as provided in Subsection (2)(a)(v), the certified tax rate shall be calculated
             572      by dividing the ad valorem property tax revenues budgeted for the prior year by the taxing
             573      entity by the taxable value established in accordance with Section 59-2-913 .
             574          (iv) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             575      Act, the commission shall make rules determining the calculation of ad valorem property tax
             576      revenues budgeted by a taxing entity.
             577          (B) For purposes of Subsection (2)(a)(iv)(A), ad valorem property tax revenues
             578      budgeted by a taxing entity shall be calculated in the same manner as budgeted property tax
             579      revenues are calculated for purposes of Section 59-2-913 .
             580          (v) The certified tax rates for the taxing entities described in this Subsection (2)(a)(v)
             581      shall be calculated as follows:
             582          (A) except as provided in Subsection (2)(a)(v)(B), for new taxing entities the certified
             583      tax rate is zero;



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             584
         (B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
             585          (I) in a county of the first, second, or third class, the levy imposed for municipal-type
             586      services under Sections 17-34-1 and 17-36-9 ; and
             587          (II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
             588      purposes and such other levies imposed solely for the municipal-type services identified in
             589      Section 17-34-1 and Subsection 17-36-3 (22);
             590          (C) for debt service voted on by the public, the certified tax rate shall be the actual levy
             591      imposed by that section, except that the certified tax rates for the following levies shall be
             592      calculated in accordance with Section 59-2-913 and this section:
             593          (I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
             594      53A-17a-127 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
             595          (II) levies to pay for the costs of state legislative mandates or judicial or administrative
             596      orders under Section 59-2-906.3 .
             597          (vi) (A) A judgment levy imposed under Section 59-2-1328 or Section 59-2-1330 shall
             598      be established at that rate which is sufficient to generate only the revenue required to satisfy
             599      one or more eligible judgments, as defined in Section 59-2-102 .
             600          (B) The ad valorem property tax revenue generated by the judgment levy shall not be
             601      considered in establishing the taxing entity's aggregate certified tax rate.
             602          (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use
             603      the taxable value of property on the assessment roll.
             604          (ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the
             605      assessment roll does not include new growth as defined in Subsection (2)(b)(iii).
             606          (iii) "New growth" means:
             607          (A) the difference between the increase in taxable value of the taxing entity from the
             608      previous calendar year to the current year; minus
             609          (B) the amount of an increase in taxable value described in Subsection (2)(b)(iv).
             610          (iv) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
             611          (A) the amount of increase to locally assessed real property taxable values resulting
             612      from factoring, reappraisal, or any other adjustments; or
             613          (B) the amount of an increase in the taxable value of property assessed by the
             614      commission under Section 59-2-201 resulting from a change in the method of apportioning the



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             615
     taxable value prescribed by:
             616          (I) the Legislature;
             617          (II) a court;
             618          (III) the commission in an administrative rule; or
             619          (IV) the commission in an administrative order.
             620          (c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
             621      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , [or] 59-2-405.1 ,
             622      or 59-2-405.2 as a result of any county imposing a sales and use tax under Chapter 12, Part 11,
             623      County Option Sales and Use Tax, the taxing entity shall decrease its certified tax rate to offset
             624      the increased revenues.
             625          (d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
             626      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
             627          (A) decreased on a one-time basis by the amount of the estimated sales and use tax
             628      revenue to be distributed to the county under Subsection 59-12-1102 (3); and
             629          (B) increased by the amount necessary to offset the county's reduction in revenue from
             630      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , [or] 59-2-405.1 ,
             631      or 59-2-405.2 as a result of the decrease in the certified tax rate under Subsection (2)(d)(i)(A).
             632          (ii) The commission shall determine estimates of sales and use tax distributions for
             633      purposes of Subsection (2)(d)(i).
             634          (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
             635      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             636      decreased on a one-time basis by the amount necessary to offset the first 12 months of
             637      estimated revenue from the additional resort communities sales and use tax imposed under
             638      Section 59-12-402 .
             639          (f) For the calendar year beginning on January 1, 1999, and ending on December 31,
             640      1999, a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the
             641      adjustment in revenues from uniform fees on tangible personal property under Section
             642      59-2-405.1 as a result of the adjustment in uniform fees on tangible personal property under
             643      Section 59-2-405.1 enacted by the Legislature during the 1998 Annual General Session .
             644          (g) For purposes of Subsections (2)(h) through (j):
             645          (i) "1998 actual collections" means the amount of revenues a taxing entity actually



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             646
     collected for the calendar year beginning on January 1, 1998 , under Section 59-2-405 for:
             647          (A) motor vehicles required to be registered with the state that weigh 12,000 pounds or
             648      less; and
             649          (B) state-assessed commercial vehicles required to be registered with the state that
             650      weigh 12,000 pounds or less.
             651          (ii) "1999 actual collections" means the amount of revenues a taxing entity actually
             652      collected for the calendar year beginning on January 1, 1999 , under Section 59-2-405.1 .
             653          (h) For the calendar year beginning on January 1, 2000 , the commission shall make the
             654      following adjustments:
             655          (i) the commission shall make the adjustment described in Subsection (2)(i)(i) if, for
             656      the calendar year beginning on January 1, 1999 , a taxing entity's 1998 actual collections were
             657      greater than the sum of:
             658          (A) the taxing entity's 1999 actual collections; and
             659          (B) any adjustments the commission made under Subsection (2)(f);
             660          (ii) the commission shall make the adjustment described in Subsection (2)(i)(ii) if, for
             661      the calendar year beginning on January 1, 1999 , a taxing entity's 1998 actual collections were
             662      greater than the taxing entity's 1999 actual collections, but the taxing entity's 1998 actual
             663      collections were less than the sum of:
             664          (A) the taxing entity's 1999 actual collections; and
             665          (B) any adjustments the commission made under Subsection (2)(f); and
             666          (iii) the commission shall make the adjustment described in Subsection (2)(i)(iii) if, for
             667      the calendar year beginning on January 1, 1999 , a taxing entity's 1998 actual collections were
             668      less than the taxing entity's 1999 actual collections.
             669          (i) (i) For purposes of Subsection (2)(h)(i), the commission shall increase a taxing
             670      entity's certified tax rate under this section and a taxing entity's certified revenue levy under
             671      Section 59-2-906.1 by the amount necessary to offset the difference between:
             672          (A) the taxing entity's 1998 actual collections; and
             673          (B) the sum of:
             674          (I) the taxing entity's 1999 actual collections; and
             675          (II) any adjustments the commission made under Subsection (2)(f).
             676          (ii) For purposes of Subsection (2)(h)(ii), the commission shall decrease a taxing



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             677
     entity's certified tax rate under this section and a taxing entity's certified revenue levy under
             678      Section 59-2-906.1 by the amount necessary to offset the difference between:
             679          (A) the sum of:
             680          (I) the taxing entity's 1999 actual collections; and
             681          (II) any adjustments the commission made under Subsection (2)(f); and
             682          (B) the taxing entity's 1998 actual collections.
             683          (iii) For purposes of Subsection (2)(h)(iii), the commission shall decrease a taxing
             684      entity's certified tax rate under this section and a taxing entity's certified revenue levy under
             685      Section 59-2-906.1 by the amount of any adjustments the commission made under Subsection
             686      (2)(f).
             687          (j) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
             688      purposes of Subsections (2)(f) through (i), the commission may make rules establishing the
             689      method for determining a taxing entity's 1998 actual collections and 1999 actual collections.
             690          (k) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
             691      Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
             692      unincorporated area of the county shall be decreased by the amount necessary to reduce
             693      revenues in that fiscal year by an amount equal to the difference between the amount the county
             694      budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
             695      countywide and the amount the county spent during fiscal year 2000 for those services,
             696      excluding amounts spent from a municipal services fund for those services.
             697          (B) For fiscal year 2001, the certified tax rate of each county to which Subsection
             698      (2)(k)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
             699      year by the amount that the county spent during fiscal year 2000 for advanced life support and
             700      paramedic services countywide, excluding amounts spent from a municipal services fund for
             701      those services.
             702          (ii) (A) A city or town located within a county of the first class to which Subsection
             703      (2)(k)(i) applies may increase its certified tax rate by the amount necessary to generate within
             704      the city or town the same amount of revenues as the county would collect from that city or
             705      town if the decrease under Subsection (2)(k)(i) did not occur.
             706          (B) An increase under Subsection (2)(k)(ii)(A), whether occurring in a single fiscal
             707      year or spread over multiple fiscal years, is not subject to the notice and hearing requirements



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             708
     of Sections 59-2-918 and 59-2-919 .
             709          (l) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
             710      provide detective investigative services to the unincorporated area of the county shall be
             711      decreased:
             712          (A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
             713      by at least $4,400,000; and
             714          (B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
             715      by an amount equal to the difference between $9,258,412 and the amount of the reduction in
             716      revenues under Subsection (2)(l)(i)(A).
             717          (ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
             718      county to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate
             719      within the city or town the same amount of revenue as the county would have collected during
             720      county fiscal year 2001 from within the city or town except for Subsection (2)(l)(i)(A).
             721          (II) Beginning with municipal fiscal year 2003, a city or town located within a county
             722      to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within the
             723      city or town the same amount of revenue as the county would have collected during county
             724      fiscal year 2002 from within the city or town except for Subsection (2)(l)(i)(B).
             725          (B) (I) Except as provided in Subsection (2)(l)(ii)(B)(II), an increase in the city or
             726      town's certified tax rate under Subsection (2)(l)(ii)(A), whether occurring in a single fiscal year
             727      or spread over multiple fiscal years, is subject to the notice and hearing requirements of
             728      Sections 59-2-918 and 59-2-919 .
             729          (II) For an increase under this Subsection (2)(l)(ii) that generates revenue that does not
             730      exceed the same amount of revenue as the county would have collected except for Subsection
             731      (2)(l)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the city or town:
             732          (Aa) publishes a notice that meets the size, type, placement, and frequency
             733      requirements of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed
             734      by the county to one imposed by the city or town, and explains how the revenues from the tax
             735      increase will be used; and
             736          (Bb) holds a public hearing on the tax shift that may be held in conjunction with the
             737      city or town's regular budget hearing.
             738          (m) (i) This Subsection (2)(m) applies to each county that:



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             739
         (A) establishes a countywide special service district under Title 17A, Chapter 2, Part
             740      13, Utah Special Service District Act, to provide jail service, as provided in Subsection
             741      17A-2-1304 (1)(a)(x); and
             742          (B) levies a property tax on behalf of the special service district under Section
             743      17A-2-1322 .
             744          (ii) (A) The certified tax rate of each county to which this Subsection (2)(m) applies
             745      shall be decreased by the amount necessary to reduce county revenues by the same amount of
             746      revenues that will be generated by the property tax imposed on behalf of the special service
             747      district.
             748          (B) Each decrease under Subsection (2)(m)(ii)(A) shall occur contemporaneously with
             749      the levy on behalf of the special service district under Section 17A-2-1322 .
             750          (n) (i) As used in this Subsection (2)(n):
             751          (A) "Annexing county" means a county whose unincorporated area is included within a
             752      fire district by annexation.
             753          (B) "Annexing municipality" means a municipality whose area is included within a fire
             754      district by annexation.
             755          (C) "Equalized fire protection tax rate" means the tax rate that results from:
             756          (I) calculating, for each participating county and each participating municipality, the
             757      property tax revenue necessary to cover all of the costs associated with providing fire
             758      protection, paramedic, and emergency services:
             759          (Aa) for a participating county, in the unincorporated area of the county; and
             760          (Bb) for a participating municipality, in the municipality; and
             761          (II) adding all the amounts calculated under Subsection (2)(n)(i)(C)(I) for all
             762      participating counties and all participating municipalities and then dividing that sum by the
             763      aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
             764          (Aa) for participating counties, in the unincorporated area of all participating counties;
             765      and
             766          (Bb) for participating municipalities, in all the participating municipalities.
             767          (D) "Fire district" means a county service area under Title 17A, Chapter 2, Part 4,
             768      County Service Area Act, in the creation of which an election was not required under
             769      Subsection 17B-2-214 (3)(c).



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             770
         (E) "Fire protection tax rate" means:
             771          (I) for an annexing county, the property tax rate that, when applied to taxable property
             772      in the unincorporated area of the county, generates enough property tax revenue to cover all the
             773      costs associated with providing fire protection, paramedic, and emergency services in the
             774      unincorporated area of the county; and
             775          (II) for an annexing municipality, the property tax rate that generates enough property
             776      tax revenue in the municipality to cover all the costs associated with providing fire protection,
             777      paramedic, and emergency services in the municipality.
             778          (F) "Participating county" means a county whose unincorporated area is included
             779      within a fire district at the time of the creation of the fire district.
             780          (G) "Participating municipality" means a municipality whose area is included within a
             781      fire district at the time of the creation of the fire district.
             782          (ii) In the first year following creation of a fire district, the certified tax rate of each
             783      participating county and each participating municipality shall be decreased by the amount of
             784      the equalized fire protection tax rate.
             785          (iii) In the first year following annexation to a fire district, the certified tax rate of each
             786      annexing county and each annexing municipality shall be decreased by the fire protection tax
             787      rate.
             788          (iv) Each tax levied under this section by a fire district shall be considered to be levied
             789      by:
             790          (A) each participating county and each annexing county for purposes of the county's
             791      tax limitation under Section 59-2-908 ; and
             792          (B) each participating municipality and each annexing municipality for purposes of the
             793      municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
             794      city.
             795          (3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
             796          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             797      auditor of:
             798          (i) its intent to exceed the certified tax rate; and
             799          (ii) the amount by which it proposes to exceed the certified tax rate.
             800          (c) The county auditor shall notify all property owners of any intent to exceed the



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             801
     certified tax rate in accordance with Subsection 59-2-919 (2).
             802          (4) (a) The taxable value for the base year under Subsection 17B-4-102 (4) shall be
             803      reduced for any year to the extent necessary to provide a redevelopment agency established
             804      under Title 17B, Chapter 4, Redevelopment Agencies Act, with approximately the same
             805      amount of money the agency would have received without a reduction in the county's certified
             806      tax rate if:
             807          (i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
             808      (2)(d)(i);
             809          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
             810      previous year; and
             811          (iii) the decrease results in a reduction of the amount to be paid to the agency under
             812      Section 17B-4-1003 or 17B-4-1004 .
             813          (b) The base taxable value under Subsection 17B-4-102 (4) shall be increased in any
             814      year to the extent necessary to provide a redevelopment agency with approximately the same
             815      amount of money as the agency would have received without an increase in the certified tax
             816      rate that year if:
             817          (i) in that year the base taxable value under Subsection 17B-4-102 (4) is reduced due to
             818      a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and
             819          (ii) The certified tax rate of a city, school district, or special district increases
             820      independent of the adjustment to the taxable value of the base year.
             821          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
             822      (2)(d)(i), the amount of money allocated and, when collected, paid each year to a
             823      redevelopment agency established under Title 17B, Chapter 4, Redevelopment Agencies Act,
             824      for the payment of bonds or other contract indebtedness, but not for administrative costs, may
             825      not be less than that amount would have been without a decrease in the certified tax rate under
             826      Subsection (2)(c) or (2)(d)(i).
             827          Section 9. Section 59-2-1005 is amended to read:
             828           59-2-1005. Procedures for appeal of personal property valuation -- Time for
             829      appeal -- Hearing -- Decision -- Appeal to commission.
             830          (1) [The] For personal property assessed by a county assessor in accordance with
             831      Section 59-2-301 , the county legislative body shall include with the signed statement required



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             832
     by Section 59-2-306 a notice of procedures for an appeal [of any] relating to the value of the
             833      personal property [valuation with each tax notice].
             834          (2) (a) If personal property is subject to a fee in lieu of tax or the uniform tax under
             835      Article XIII, Sec. [14] 2, Utah Constitution, and the fee or tax is based upon the value of the
             836      property, the basis of the value may be appealed to the commission.
             837          [(2) Any] (b) For the personal property described in Subsection (2)(a), a taxpayer
             838      [dissatisfied with the taxable value of the taxpayer's personal property] may make an appeal
             839      relating to the value of the personal property by filing an application with the county legislative
             840      body no later than 30 days after the mailing of the tax notice.
             841          (3) (a) After giving reasonable notice, the county legislative body shall hear [the] an
             842      appeal filed in accordance with Subsection (2) and render a written decision.
             843          (b) The written decision described in Subsection (3)(a) shall be rendered no later than
             844      60 days after receipt of the appeal.
             845          (4) If any taxpayer is dissatisfied with [the] a decision [of] rendered in accordance with
             846      Subsection (3) by the county legislative body, the taxpayer may file an appeal with the
             847      commission [as established] in accordance with Section 59-2-1006 .
             848          (5) For personal property assessed by the commission in accordance with Section
             849      59-2-201 , a taxpayer may make an appeal relating to the personal property in accordance with
             850      Section 59-2-1007 .
             851          Section 10. Section 59-7-614 is amended to read:
             852           59-7-614. Renewable energy systems tax credit -- Definitions -- Limitations --
             853      State tax credit in addition to allowable federal credits -- Certification -- Rulemaking
             854      authority -- Reimbursement of Uniform School Fund.
             855          (1) As used in this section:
             856          (a) "Active solar system":
             857          (i) means a system of equipment capable of collecting and converting incident solar
             858      radiation into thermal, mechanical, or electrical energy, and transferring these forms of energy
             859      by a separate apparatus to storage or to the point of use; and
             860          (ii) includes water heating, space heating or cooling, and electrical or mechanical
             861      energy generation.
             862          (b) "Biomass system" means any system of apparatus and equipment capable of



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             863
     converting organic plant, wood, or waste products into electrical and thermal energy and
             864      transferring these forms of energy by a separate apparatus to the point of use or storage.
             865          (c) "Business entity" means any sole proprietorship, estate, trust, partnership,
             866      association, corporation, cooperative, or other entity under which business is conducted or
             867      transacted.
             868          (d) "Commercial energy system" means any active solar, passive solar, wind,
             869      hydroenergy, or biomass system used to supply energy to a commercial unit or as a commercial
             870      enterprise.
             871          (e) "Commercial enterprise" means a business entity whose purpose is to produce
             872      electrical, mechanical, or thermal energy for sale from a commercial energy system.
             873          (f) (i) "Commercial unit" means any building or structure which a business entity uses
             874      to transact its business except as provided in Subsection (1)(f)(ii); and
             875          (ii) (A) in the case of an active solar system used for agricultural water pumping or a
             876      wind system, each individual energy generating device shall be a commercial unit; and
             877          (B) if an energy system is the building or structure which a business entity uses to
             878      transact its business, a commercial unit is the complete energy system itself.
             879          (g) "Hydroenergy system" means a system of apparatus and equipment capable of
             880      intercepting and converting kinetic water energy into electrical or mechanical energy and
             881      transferring this form of energy by separate apparatus to the point of use or storage.
             882          (h) "Individual taxpayer" means any person who is a taxpayer as defined in Section
             883      59-10-103 and an individual as defined in Section 59-10-103 .
             884          (i) "Office of Energy and Resource Planning" means the Office of Energy and
             885      Resource Planning, Department of Natural Resources.
             886          (j) "Passive solar system":
             887          (i) means a direct thermal system which utilizes the structure of a building and its
             888      operable components to provide for collection, storage, and distribution of heating or cooling
             889      during the appropriate times of the year by utilizing the climate resources available at the site;
             890      and
             891          (ii) includes those portions and components of a building that are expressly designed
             892      and required for the collection, storage, and distribution of solar energy.
             893          (k) "Residential energy system" means any active solar, passive solar, wind, or



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             894
     hydroenergy system used to supply energy to or for any residential unit.
             895          (l) "Residential unit" means any house, condominium, apartment, or similar dwelling
             896      unit which serves as a dwelling for a person, group of persons, or a family but does not include
             897      property subject to [the fees in lieu of the ad valorem tax] a fee under:
             898          (i) Section 59-2-404 ;
             899          (ii) Section 59-2-405 ; [or]
             900          (iii) Section 59-2-405.1 ; or
             901          (iv) Section 59-2-405.2 .
             902          (m) "Wind system" means a system of apparatus and equipment capable of intercepting
             903      and converting wind energy into mechanical or electrical energy and transferring these forms of
             904      energy by a separate apparatus to the point of use or storage.
             905          (2) (a) (i) For taxable years beginning on or after January 1, 2001, but beginning on or
             906      before December 31, 2006, a business entity that purchases and completes or participates in the
             907      financing of a residential energy system to supply all or part of the energy required for a
             908      residential unit owned or used by the business entity and situated in Utah is entitled to a tax
             909      credit as provided in this Subsection (2)(a).
             910          (ii) (A) A business entity is entitled to a tax credit equal to 25% of the costs of a
             911      residential energy system installed with respect to each residential unit it owns or uses,
             912      including installation costs, against any tax due under this chapter for the taxable year in which
             913      the energy system is completed and placed in service.
             914          (B) The total amount of the credit under this Subsection (2)(a) may not exceed $2,000
             915      per residential unit.
             916          (C) The credit under this Subsection (2)(a) is allowed for any residential energy system
             917      completed and placed in service on or after January 1, 2001, but on or before December 31,
             918      2006.
             919          (iii) If a business entity sells a residential unit to an individual taxpayer prior to making
             920      a claim for the tax credit under this Subsection (2)(a), the business entity may:
             921          (A) assign its right to this tax credit to the individual taxpayer; and
             922          (B) if the business entity assigns its right to the tax credit to an individual taxpayer
             923      under Subsection (2)(a)(iii)(A), the individual taxpayer may claim the tax credit as if the
             924      individual taxpayer had completed or participated in the costs of the residential energy system



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             925
     under Section 59-10-134 .
             926          (b) (i) For taxable years beginning on or after January 1, 2001, but beginning on or
             927      before December 31, 2006, a business entity that purchases or participates in the financing of a
             928      commercial energy system is entitled to a tax credit as provided in this Subsection (2)(b) if:
             929          (A) the commercial energy system supplies all or part of the energy required by
             930      commercial units owned or used by the business entity; or
             931          (B) the business entity sells all or part of the energy produced by the commercial
             932      energy system as a commercial enterprise.
             933          (ii) (A) A business entity is entitled to a tax credit equal to 10% of the costs of any
             934      commercial energy system installed, including installation costs, against any tax due under this
             935      chapter for the taxable year in which the commercial energy system is completed and placed in
             936      service.
             937          (B) The total amount of the credit under this Subsection (2)(b) may not exceed $50,000
             938      per commercial unit.
             939          (C) The credit under this Subsection (2)(b) is allowed for any commercial energy
             940      system completed and placed in service on or after January 1, 2001, but on or before December
             941      31, 2006.
             942          (iii) A business entity that leases a commercial energy system installed on a
             943      commercial unit is eligible for the tax credit under this Subsection (2)(b) if the lessee can
             944      confirm that the lessor irrevocably elects not to claim the credit.
             945          (iv) Only the principal recovery portion of the lease payments, which is the cost
             946      incurred by a business entity in acquiring a commercial energy system, excluding interest
             947      charges and maintenance expenses, is eligible for the tax credit under this Subsection (2)(b).
             948          (v) A business entity that leases a commercial energy system is eligible to use the tax
             949      credit under this Subsection (2)(b) for a period no greater than seven years from the initiation
             950      of the lease.
             951          (c) (i) A tax credit under this section may be claimed for the taxable year in which the
             952      energy system is completed and placed in service.
             953          (ii) Additional energy systems or parts of energy systems may be claimed for
             954      subsequent years.
             955          (iii) If the amount of a tax credit under this section exceeds a business entity's tax



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             956
     liability under this chapter for a taxable year, the amount of the credit exceeding the liability
             957      may be carried over for a period which does not exceed the next four taxable years.
             958          (3) (a) The tax credits provided for under Subsection (2) are in addition to any tax
             959      credits provided under the laws or rules and regulations of the United States.
             960          (b) (i) The Office of Energy and Resource Planning may promulgate standards for
             961      residential and commercial energy systems that cover the safety, reliability, efficiency, leasing,
             962      and technical feasibility of the systems to ensure that the systems eligible for the tax credit use
             963      the state's renewable and nonrenewable energy resources in an appropriate and economic
             964      manner.
             965          (ii) A tax credit may not be taken under Subsection (2) until the Office of Energy and
             966      Resource Planning has certified that the energy system has been completely installed and is a
             967      viable system for saving or production of energy from renewable resources.
             968          (c) The Office of Energy and Resource Planning and the commission are authorized to
             969      promulgate rules in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             970      Act, which are necessary to implement this section.
             971          (d) The Uniform School Fund shall be reimbursed by transfers from the General Fund
             972      for any credits taken under this section.
             973          Section 11. Section 59-10-134 is amended to read:
             974           59-10-134. Renewable energy systems tax credit -- Definitions -- Individual tax
             975      credit -- Limitations -- Business tax credit -- Limitations -- State tax credit in addition to
             976      allowable federal credits -- Certification -- Rulemaking authority -- Reimbursement of
             977      Uniform School Fund.
             978          (1) As used in this part:
             979          (a) "Active solar system":
             980          (i) means a system of equipment capable of collecting and converting incident solar
             981      radiation into thermal, mechanical, or electrical energy, and transferring these forms of energy
             982      by a separate apparatus to storage or to the point of use; and
             983          (ii) includes water heating, space heating or cooling, and electrical or mechanical
             984      energy generation.
             985          (b) "Biomass system" means any system of apparatus and equipment capable of
             986      converting organic plant, wood, or waste products into electrical and thermal energy and



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             987
     transferring these forms of energy by a separate apparatus to the point of use or storage.
             988          (c) "Business entity" means any sole proprietorship, estate, trust, partnership,
             989      association, corporation, cooperative, or other entity under which business is conducted or
             990      transacted.
             991          (d) "Commercial energy system" means any active solar, passive solar, wind,
             992      hydroenergy, or biomass system used to supply energy to a commercial unit or as a commercial
             993      enterprise.
             994          (e) "Commercial enterprise" means a business entity whose purpose is to produce
             995      electrical, mechanical, or thermal energy for sale from a commercial energy system.
             996          (f) (i) "Commercial unit" means any building or structure which a business entity uses
             997      to transact its business, except as provided in Subsection (1)(f)(ii); and
             998          (ii) (A) in the case of an active solar system used for agricultural water pumping or a
             999      wind system, each individual energy generating device shall be a commercial unit; and
             1000          (B) if an energy system is the building or structure which a business entity uses to
             1001      transact its business, a commercial unit is the complete energy system itself.
             1002          (g) "Hydroenergy system" means a system of apparatus and equipment capable of
             1003      intercepting and converting kinetic water energy into electrical or mechanical energy and
             1004      transferring this form of energy by separate apparatus to the point of use or storage.
             1005          (h) "Individual taxpayer" means any person who is a taxpayer as defined in Section
             1006      59-10-103 and an individual as defined in Section 59-10-103 .
             1007          (i) "Office of Energy and Resource Planning" means the Office of Energy and
             1008      Resource Planning, Department of Natural Resources.
             1009          (j) "Passive solar system":
             1010          (i) means a direct thermal system which utilizes the structure of a building and its
             1011      operable components to provide for collection, storage, and distribution of heating or cooling
             1012      during the appropriate times of the year by utilizing the climate resources available at the site;
             1013      and
             1014          (ii) includes those portions and components of a building that are expressly designed
             1015      and required for the collection, storage, and distribution of solar energy.
             1016          (k) "Residential energy system" means any active solar, passive solar, wind, or
             1017      hydroenergy system used to supply energy to or for any residential unit.



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             1018
         (l) "Residential unit" means any house, condominium, apartment, or similar dwelling
             1019      unit which serves as a dwelling for a person, group of persons, or a family but does not include
             1020      property subject to [the fees in lieu of the ad valorem tax] a fee under:
             1021          (i) Section 59-2-404 ;
             1022          (ii) Section 59-2-405 ; [or]
             1023          (iii) Section 59-2-405.1 ; or
             1024          (iv) Section 59-2-405.2 .
             1025          (m) "Wind system" means a system of apparatus and equipment capable of intercepting
             1026      and converting wind energy into mechanical or electrical energy and transferring these forms of
             1027      energy by a separate apparatus to the point of use or storage.
             1028          (2) For taxable years beginning on or after January 1, 2001, but beginning on or before
             1029      December 31, 2006, any individual taxpayer may claim a tax credit as provided in this section
             1030      if:
             1031          (a) the individual taxpayer purchases and completes or participates in the financing of a
             1032      residential energy system to supply all or part of the energy for the individual taxpayer's
             1033      residential unit in the state; or
             1034          (b) (i) a business entity sells a residential unit to an individual taxpayer prior to making
             1035      a claim for a tax credit under Subsection (6) or Section 59-7-614 ; and
             1036          (ii) the business entity assigns its right to the tax credit to the individual taxpayer as
             1037      provided in Subsection (6)(c) or Subsection 59-7-614 (2)(a)(iii).
             1038          (3) (a) An individual taxpayer meeting the requirements of Subsection (2) is entitled to
             1039      a tax credit equal to 25% of the costs of the energy system, including installation costs, against
             1040      any income tax liability of the individual taxpayer under this chapter for the taxable year in
             1041      which the residential energy system is completed and placed in service.
             1042          (b) The total amount of the credit under this section may not exceed $2,000 per
             1043      residential unit.
             1044          (c) The credit under this section is allowed for any residential energy system completed
             1045      and placed in service on or after January 1, 2001, but on or before December 31, 2006.
             1046          (4) (a) The tax credit provided for in this section shall be claimed in the return for the
             1047      taxable year in which the energy system is completed and placed in service.
             1048          (b) Additional residential energy systems or parts of residential energy systems may be



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             1049
     similarly claimed in returns for subsequent taxable years as long as the total amount claimed
             1050      does not exceed $2,000 per residential unit.
             1051          (c) If the amount of the tax credit under this section exceeds the income tax liability of
             1052      the individual taxpayer for that taxable year, then the amount not used may be carried over for
             1053      a period which does not exceed the next four taxable years.
             1054          (5) (a) Individual taxpayers who lease a residential energy system installed on a
             1055      residential unit are eligible for the residential energy tax credits if the lessee can confirm that
             1056      the lessor irrevocably elects not to claim the state tax credit.
             1057          (b) Only the principal recovery portion of the lease payments, which is the cost
             1058      incurred by the taxpayer in acquiring the residential energy system excluding interest charges
             1059      and maintenance expenses, is eligible for the tax credits.
             1060          (c) Individual taxpayers who lease residential energy systems are eligible to use the tax
             1061      credits for a period no greater than seven years from the initiation of the lease.
             1062          (6) (a) A business entity that purchases and completes or participates in the financing
             1063      of a residential energy system to supply all or part of the energy required for a residential unit
             1064      owned or used by the business entity and situated in Utah is entitled to a tax credit as provided
             1065      in this Subsection (6).
             1066          (b) (i) For taxable years beginning on or after January 1, 2001, but beginning on or
             1067      before December 31, 2006, a business entity is entitled to a tax credit equal to 25% of the costs
             1068      of a residential energy system installed with respect to each residential unit it owns or uses,
             1069      including installation costs, against any tax due under this chapter for the taxable year in which
             1070      the energy system is completed and placed in service.
             1071          (ii) The total amount of the credit under this Subsection (6) may not exceed $2,000 per
             1072      residential unit.
             1073          (iii) The credit under this Subsection (6) is allowed for any residential energy system
             1074      completed and placed in service on or after January 1, 2001, but on or before December 31,
             1075      2006.
             1076          (c) If a business entity sells a residential unit to an individual taxpayer prior to making
             1077      a claim for the tax credit under this Subsection (6), the business entity may:
             1078          (i) assign its right to this tax credit to the individual taxpayer; and
             1079          (ii) if the business entity assigns its right to the tax credit to an individual taxpayer



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             1080
     under Subsection (6)(c)(i), the individual taxpayer may claim the tax credit as if the individual
             1081      taxpayer had completed or participated in the costs of the residential energy system under this
             1082      section.
             1083          (7) (a) A business entity that purchases or participates in the financing of a commercial
             1084      energy system is entitled to a tax credit as provided in this Subsection (7) if:
             1085          (i) the commercial energy system supplies all or part of the energy required by
             1086      commercial units owned or used by the business entity; or
             1087          (ii) the business entity sells all or part of the energy produced by the commercial
             1088      energy system as a commercial enterprise.
             1089          (b) (i) A business entity is entitled to a tax credit equal to 10% of the costs of any
             1090      commercial energy system installed, including installation costs, against any tax due under this
             1091      chapter for the taxable year in which the commercial energy system is completed and placed in
             1092      service.
             1093          (ii) The total amount of the credit under this Subsection (7) may not exceed $50,000
             1094      per commercial unit.
             1095          (iii) The credit under this Subsection (7) is allowed for any commercial energy system
             1096      completed and placed in service on or after January 1, 2001, but on or before December 31,
             1097      2006.
             1098          (c) A business entity that leases a commercial energy system installed on a commercial
             1099      unit is eligible for the tax credit under this Subsection (7) if the lessee can confirm that the
             1100      lessor irrevocably elects not to claim the credit.
             1101          (d) Only the principal recovery portion of the lease payments, which is the cost
             1102      incurred by a business entity in acquiring a commercial energy system, excluding interest
             1103      charges and maintenance expenses, is eligible for the tax credit under this Subsection (7).
             1104          (e) A business entity that leases a commercial energy system is eligible to use the tax
             1105      credit under this Subsection (7) for a period no greater than seven years from the initiation of
             1106      the lease.
             1107          (8) (a) A tax credit under this section may be claimed for the taxable year in which the
             1108      energy system is completed and placed in service.
             1109          (b) Additional energy systems or parts of energy systems may be claimed for
             1110      subsequent years.



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             1111
         (c) If the amount of a tax credit under this section exceeds a business entity's tax
             1112      liability under this chapter for a taxable year, the amount of the credit exceeding the liability
             1113      may be carried over for a period which does not exceed the next four taxable years.
             1114          (9) The tax credits provided for under this section are in addition to any tax credits
             1115      provided under the laws or rules and regulations of the United States.
             1116          (10) (a) The Office of Energy and Resource Planning may promulgate standards for
             1117      residential and commercial energy systems that cover the safety, reliability, efficiency, leasing,
             1118      and technical feasibility of the systems to ensure that the systems eligible for the tax credit use
             1119      the state's renewable and nonrenewable energy resources in an appropriate and economic
             1120      manner.
             1121          (b) A tax credit may not be taken under this section until the Office of Energy and
             1122      Resource Planning has certified that the energy system has been completely installed and is a
             1123      viable system for saving or production of energy from renewable resources.
             1124          (11) The Office of Energy and Resource Planning and the commission are authorized
             1125      to promulgate rules in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             1126      Act, which are necessary to implement this section.
             1127          (12) The Uniform School Fund shall be reimbursed by transfers from the General Fund
             1128      for any credits taken under this section.
             1129          Section 12. Effective date.
             1130          This bill takes effect on January 1, 2006.


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