S.B. 23 Enrolled

PROPERTY TAX TREATMENT OF TANGIBLE
PERSONAL PROPERTY
2005 GENERAL SESSION
STATE OF UTAH
Sponsor: Curtis S. Bramble

LONG TITLE
General Description:
This bill amends the Motor Vehicles title, the Property Tax Act, the Corporate
Franchise and Income Taxes chapter, and the Individual Income Tax Act to address the
property tax treatment of tangible personal property.
Highlighted Provisions:
This bill:
. defines terms;
. addresses the uniform fees that are required to be received by a city library fund;
. imposes uniform statewide fees on certain tangible personal property required to be
registered with the state;
. provides procedures for measuring the length of a vessel for purposes of imposing
uniform statewide fees on vessels;
. provides for the collection of the uniform statewide fees;
. provides that the uniform statewide fees shall be imposed at the time of registration
and renewal of registration;
. addresses the appeals process for personal property;
. provides that for purposes of the corporate franchise and income tax credits and
individual income tax credits for renewable energy systems a residential unit does
not include property subject to the uniform statewide fees;
. grants rulemaking authority to the State Tax Commission; and
. makes technical changes.
Monies Appropriated in this Bill:

None
Other Special Clauses:
This bill takes effect on January 1, 2006.
Utah Code Sections Affected:
AMENDS:
9-7-401, as last amended by Chapter 13, Laws of Utah 1998
41-1a-222, as last amended by Chapter 322, Laws of Utah 1998
59-2-405, as last amended by Chapter 12, Laws of Utah 2001, First Special Session
59-2-405.1, as last amended by Chapter 12, Laws of Utah 2001, First Special Session
59-2-406, as last amended by Chapters 109 and 322, Laws of Utah 1998
59-2-407, as last amended by Chapter 207, Laws of Utah 1999
59-2-924, as last amended by Chapter 122, Laws of Utah 2003
59-2-1005, as last amended by Chapter 146, Laws of Utah 1994
59-7-614, as enacted by Chapter 6, Laws of Utah 2001, First Special Session
59-10-134, as enacted by Chapter 6, Laws of Utah 2001, First Special Session
ENACTS:
59-2-405.2, Utah Code Annotated 1953

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

the city and shall constitute a fund to be known as the city library fund.
(4) The city library fund shall receive a portion of:
(a) the uniform fee imposed by Section 59-2-404 in accordance with the procedures
established in Section 59-2-404 ;
(b) the statewide uniform fee [on tangible personal property] imposed by Section
59-2-405 in accordance with the procedures established in [Subsection] Section 59-2-405 [(5).];
(c) the statewide uniform fee imposed by Section 59-2-405.1 in accordance with the
procedures established in Section 59-2-405.1 ; and
(d) the uniform statewide fee imposed by Section 59-2-405.2 in accordance with the
procedures established in Section 59-2-405.2 .
Section 2. Section 41-1a-222 is amended to read:
41-1a-222. Application for multiyear registration -- Payment of taxes -- Penalties.
(1) The owner of any intrastate fleet of commercial vehicles which is based in the state
may apply to the commission for registration in accordance with this section.
(a) The application shall be made on a form prescribed by the commission.
(b) Upon payment of required fees and meeting other requirements prescribed by the
commission, the division shall issue, to each vehicle for which application has been made, a
multiyear license plate and registration card.
(i) The license plate decal and the registration card shall bear an expiration date fixed by
the division and are valid until ownership of the vehicle to which they are issued is transferred by
the applicant or until the expiration date, whichever comes first.
(ii) An annual renewal application must be made by the owner if registration
identification has been issued on an annual installment fee basis and the required fees must be
paid on an annual basis.
(iii) License plates and registration cards issued pursuant to this section are valid for an
eight-year period, commencing with the year of initial application in this state.
(c) When application for registration or renewal is made on an installment payment basis,
the applicant shall submit acceptable evidence of a surety bond in a form, and with a surety,

approved by the commission and in an amount equal to the total annual fees required for all
vehicles registered to the applicant in accordance with this section.
(2) Each vehicle registered as part of a fleet of commercial vehicles must be titled in the
name of the fleet.
(3) Each owner who registers fleets pursuant to this section shall pay the taxes or in lieu
fees otherwise due pursuant to:
(a) Section 41-1a-206 ;
(b) Section 41-1a-207 ;
(c) Subsection 41-1a-301 (11);
[(c)] (d) Section 59-2-405.1 ; or
[(d) Subsection 41-1a-301 (11).]
(e) Section 59-2-405.2 .
(4) An owner who fails to comply with the provisions of this section is subject to the
penalties in Section 41-1a-1301 and, if the commission so determines, will result in the loss of
the privileges granted in this section.
Section 3. Section 59-2-405 is amended to read:
59-2-405. Uniform fee on tangible personal property required to be registered with
the state -- Distribution of revenues -- Appeals.
(1) The property described in Subsection (2), except Subsections (2)(b)(ii) and (iii), is
exempt from ad valorem property taxes pursuant to Utah Constitution Article XIII, Section [14]
2, Subsection (6).
(2) (a) Except as provided in Subsection (2)(b), there is levied as provided in this part a
statewide uniform fee in lieu of the ad valorem tax on:
(i) motor vehicles required to be registered with the state that weigh 12,001 pounds or
more;
(ii) motorcycles as defined in Section 41-1a-102 that are required to be registered with
the state;
(iii) watercraft required to be registered with the state;

(iv) recreational vehicles required to be registered with the state; and
(v) all other tangible personal property required to be registered with the state before it is
used on a public highway, on a public waterway, on public land, or in the air.
(b) The following tangible personal property is exempt from the statewide uniform fee
imposed by this section:
(i) aircraft;
(ii) vintage vehicles as defined in Section 41-21-1 ;
(iii) state-assessed commercial vehicles;
(iv) tangible personal property subject to a uniform fee imposed by:
(A) Section 59-2-405.1 ; or
(B) Section 59-2-405.2 ; and
(v) personal property that is exempt from state or county ad valorem property taxes under
the laws of this state or of the federal government.
(3) Beginning on January 1, 1999, the uniform fee is 1.5% of the fair market value of the
personal property, as established by the commission.
(4) Notwithstanding Section 59-2-407 , property subject to the uniform fee that is brought
into the state and is required to be registered in Utah shall, as a condition of registration, be
subject to the uniform fee unless all property taxes or uniform fees imposed by the state of origin
have been paid for the current calendar year.
(5) (a) The revenues collected in each county from the uniform fee shall be distributed by
the county to each taxing entity in which the property described in Subsection (2) is located in the
same proportion in which revenue collected from ad valorem real property tax is distributed.
(b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in
the same proportion in which revenue collected from ad valorem real property tax is distributed.
(6) [Appeals of the valuation of] An appeal relating to the uniform fee imposed on the
tangible personal property described in Subsection (2) shall be filed pursuant to Section
59-2-1005 .
Section 4. Section 59-2-405.1 is amended to read:

59-2-405.1. Uniform fee on certain vehicles weighing 12,000 pounds or less --
Distribution of revenues.
(1) The property described in Subsection (2), except Subsection (2)(b)(ii), is exempt
from ad valorem property taxes pursuant to Utah Constitution Article XIII, Section [14] 2,
Subsection (6).
(2) (a) Except as provided in Subsection (2)(b), there is levied as provided in this part a
statewide uniform fee in lieu of the ad valorem tax on:
(i) motor vehicles as defined in Section 41-1a-102 that:
(A) are required to be registered with the state; and
(B) weigh 12,000 pounds or less; and
(ii) state-assessed commercial vehicles required to be registered with the state that weigh
12,000 pounds or less.
(b) The following tangible personal property is exempt from the statewide uniform fee
imposed by this section:
(i) aircraft;
(ii) vintage vehicles as defined in Section 41-21-1 ;
(iii) tangible personal property subject to [the] a uniform fee imposed by:
(A) Section 59-2-405 ; or
(B) Section 59-2-405.2 ; and
(iv) tangible personal property that is exempt from state or county ad valorem property
taxes under the laws of this state or of the federal government.
(3) (a) Except as provided in Subsection (3)(b), beginning on January 1, 1999, the
uniform fee for purposes of this section is as follows:
Age of Vehicle Uniform Fee
12 or more years $10
9 or more years but less than 12 years $50
6 or more years but less than 9 years $80
3 or more years but less than 6 years $110

Less than 3 years $150
(b) Notwithstanding Subsection (3)(a), beginning on September 1, 2001, for a motor
vehicle issued a temporary sports event registration certificate in accordance with Section
41-3-306 , the uniform fee for purposes of this section is $5 for the event period specified on the
temporary sports event registration certificate regardless of the age of the motor vehicle.
(4) Notwithstanding Section 59-2-407 , property subject to the uniform fee that is brought
into the state and is required to be registered in Utah shall, as a condition of registration, be
subject to the uniform fee unless all property taxes or uniform fees imposed by the state of origin
have been paid for the current calendar year.
(5) (a) The revenues collected in each county from the uniform fee shall be distributed by
the county to each taxing entity in which the property described in Subsection (2) is located in the
same proportion in which revenue collected from ad valorem real property tax is distributed.
(b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in
the same proportion in which revenue collected from ad valorem real property tax is distributed.
[(6) Appeals of the valuation of the tangible personal property described in Subsection
(2) shall be filed pursuant to Section 59-2-1005 .]
Section 5. Section 59-2-405.2 is enacted to read:
59-2-405.2. Definitions -- Uniform statewide fee on certain tangible personal
property -- Distribution of revenues -- Rulemaking authority -- Determining the length of
a vessel.
(1) As used in this section:
(a) (i) except as provided in Subsection (1)(a)(ii), "all-terrain vehicle" means a motor
vehicle that:
(A) is an:
(I) all-terrain type I vehicle as defined in Section 41-22-2 ; or
(II) all-terrain type II vehicle as defined in Section 41-22-2 ;
(B) is required to be registered in accordance with Title 41, Chapter 22, Off-Highway
Vehicles; and

(C) has:
(I) an engine with more than 100 cubic centimeters displacement;
(II) a motor that produces more than five horsepower; or
(III) an electric motor; and
(ii) notwithstanding Subsection (1)(a)(i), "all-terrain vehicle" does not include a
snowmobile;
(b) "camper" means a camper:
(i) as defined in Section 41-1a-102 ; and
(ii) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
Registration;
(c) "dealer" is as defined in Section 41-1a-102 ;
(d) "motor vehicle" is as defined in Section 41-22-2 ;
(e) "other motorcycle" means a motor vehicle that:
(i) is:
(A) a motorcycle as defined in Section 41-1a-102 ; and
(B) designed primarily for use and operation over unimproved terrain;
(ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
Registration; and
(iii) has:
(A) an engine with more than 100 cubic centimeters displacement; or
(B) a motor that produces more than five horsepower;
(f) (i) "other trailer" means a portable vehicle without motive power that is primarily
used:
(A) to transport tangible personal property; and
(B) for a purpose other than a commercial purpose; and
(ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
purposes of Subsection (1)(f)(i)(B), the commission may by rule define what constitutes a
purpose other than a commercial purpose;

(g) "outboard motor" is as defined in Section 41-1a-102 ;
(h) "personal watercraft" means a personal watercraft:
(i) as defined in Section 73-18-2 ; and
(ii) that is required to be registered in accordance with Title 73, Chapter 18, State
Boating Act;
(i) (i) "small motor vehicle" means a motor vehicle that:
(A) is required to be registered in accordance with Title 41, Motor Vehicles; and
(B) has:
(I) an engine with 100 or less cubic centimeters displacement; or
(II) a motor that produces five or less horsepower; and
(ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may by rule develop a process for an owner of a motor vehicle to certify whether the
motor vehicle has:
(A) an engine with 100 or less cubic centimeters displacement; or
(B) a motor that produces five or less horsepower;
(j) "snowmobile" means a motor vehicle that:
(i) is a snowmobile as defined in Section 41-22-2 ;
(ii) is required to be registered in accordance with Title 41, Chapter 22, Off-Highway
Vehicles; and
(iii) has:
(A) an engine with more than 100 cubic centimeters displacement; or
(B) a motor that produces more than five horsepower;
(k) "street motorcycle" means a motor vehicle that:
(i) is:
(A) a motorcycle as defined in Section 41-1a-102 ; and
(B) designed primarily for use and operation on highways;
(ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
Registration; and

(iii) has:
(A) an engine with more than 100 cubic centimeters displacement; or
(B) a motor that produces more than five horsepower;
(l) "tent trailer" means a portable vehicle without motive power that:
(i) is constructed with collapsible side walls that:
(A) fold for towing by a motor vehicle; and
(B) unfold at a campsite;
(ii) is designed as a temporary dwelling for travel, recreational, or vacation use;
(iii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
Registration; and
(iv) does not require a special highway movement permit when drawn by a self-propelled
motor vehicle;
(m) (i) except as provided in Subsection (1)(m)(ii), "travel trailer" means a travel trailer:
(A) as defined in Section 41-1a-102 ; and
(B) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
Registration; and
(ii) notwithstanding Subsection (1)(m)(i), "travel trailer" does not include:
(A) a camper; or
(B) a tent trailer; and
(n) "vessel" means a vessel:
(i) as defined in Section 73-18-2 , including an outboard motor of the vessel; and
(ii) that is required to be registered in accordance with Title 73, Chapter 18, State
Boating Act.
(2) (a) In accordance with Utah Constitution Article XIII, Section 2, Subsection (6),
beginning on January 1, 2006, the tangible personal property described in Subsection (2)(b) is:
(i) exempt from the tax imposed by Section 59-2-103 ; and
(ii) in lieu of the tax imposed by Section 59-2-103 , subject to uniform statewide fees as
provided in this section.

(b) The following tangible personal property applies to Subsection (2)(a) if that tangible
personal property is required to be registered with the state:
(i) an all-terrain vehicle;
(ii) a camper;
(iii) an other motorcycle;
(iv) an other trailer;
(v) a personal watercraft;
(vi) a small motor vehicle;
(vii) a snowmobile;
(viii) a street motorcycle;
(ix) a tent trailer;
(x) a travel trailer; and
(xi) a vessel if that vessel is less than 31 feet in length as determined under Subsection
(6).
(3) For purposes of this section, the uniform statewide fees are:
(a) for an all-terrain vehicle, an other motorcycle, or a snowmobile:
Age of All-Terrain Vehicle, Other Motorcycle, or Snowmobile Uniform Statewide Fee
12 or more years $10
9 or more years but less than 12 years $20
6 or more years but less than 9 years $30
3 or more years but less than 6 years $35
Less than 3 years $45
(b) for a camper or a tent trailer:
Age of Camper or Tent Trailer Uniform Statewide Fee
12 or more years $10
9 or more years but less than 12 years $25
6 or more years but less than 9 years $35
3 or more years but less than 6 years $50

Less than 3 years $70
(c) for an other trailer:
Age of Other Trailer Uniform Statewide Fee
12 or more years $10
9 or more years but less than 12 years $15
6 or more years but less than 9 years $20
3 or more years but less than 6 years $25
Less than 3 years $30
(d) for a personal watercraft:
Age of Personal Watercraft Uniform Statewide Fee
12 or more years $10
9 or more years but less than 12 years $25
6 or more years but less than 9 years $35
3 or more years but less than 6 years $45
Less than 3 years $55
(e) for a small motor vehicle:
Age of Small Motor Vehicle Uniform Statewide Fee
6 or more years $10
3 or more years but less than 6 years $15
Less than 3 years $25
(f) for a street motorcycle:
Age of Street Motorcycle Uniform Statewide Fee
12 or more years $10
9 or more years but less than 12 years $35
6 or more years but less than 9 years $50
3 or more years but less than 6 years $70
Less than 3 years $95
(g) for a travel trailer:

Age of Travel Trailer Uniform Statewide Fee
12 or more years $20
9 or more years but less than 12 years $65
6 or more years but less than 9 years $90
3 or more years but less than 6 years $135
Less than 3 years $175
(h) for a vessel that is less than 15 feet in length, $10 regardless of the age of the vessel;
(i) for a vessel that is 15 feet or more in length but less than 19 feet in length:
Age of Vessel Uniform Statewide Fee
12 or more years $25
9 or more years but less than 12 years $65
6 or more years but less than 9 years $80
3 or more years but less than 6 years $110
Less than 3 years $150
(j) for a vessel that is 19 feet or more in length but less than 23 feet in length:
Age of Vessel Uniform Statewide Fee
12 or more years $50
9 or more years but less than 12 years $120
6 or more years but less than 9 years $175
3 or more years but less than 6 years $220
Less than 3 years $275
(k) for a vessel that is 23 feet or more in length but less than 27 feet in length:
Age of Vessel Uniform Statewide Fee
12 or more years $100
9 or more years but less than 12 years $180
6 or more years but less than 9 years $240
3 or more years but less than 6 years $310
Less than 3 years $400

(l) for a vessel that is 27 feet or more in length but less than 31 feet in length:
Age of Vessel Uniform Statewide Fee
12 or more years $120
9 or more years but less than 12 years $250
6 or more years but less than 9 years $350
3 or more years but less than 6 years $500
Less than 3 years $700
(4) Notwithstanding Section 59-2-407 , tangible personal property subject to the uniform
statewide fees imposed by this section that is brought into the state shall, as a condition of
registration, be subject to the uniform statewide fees unless all property taxes or uniform fees
imposed by the state of origin have been paid for the current calendar year.
(5) (a) The revenues collected in each county from the uniform statewide fees imposed
by this section shall be distributed by the county to each taxing entity in which each item of
tangible personal property subject to the uniform statewide fees is located in the same proportion
in which revenues collected from the ad valorem property tax are distributed.
(b) Each taxing entity described in Subsection (5)(a) that receives revenues from the
uniform statewide fees imposed by this section shall distribute the revenues in the same
proportion in which revenues collected from the ad valorem property tax are distributed.
(6) (a) For purposes of the uniform statewide fee imposed by this section, the length of a
vessel shall be determined as provided in this Subsection (6).
(b) (i) Except as provided in Subsection (6)(b)(ii), the length of a vessel shall be
measured as follows:
(A) the length of a vessel shall be measured in a straight line; and
(B) the length of a vessel is equal to the distance between the bow of the vessel and the
stern of the vessel.
(ii) Notwithstanding Subsection (6)(b)(i), the length of a vessel may not include the
length of:
(A) a swim deck;

(B) a ladder;
(C) an outboard motor; or
(D) an appurtenance or attachment similar to Subsections (6)(b)(ii)(A) through (C) as
determined by the commission by rule.
(iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes an appurtenance or attachment similar to
Subsections (6)(b)(ii)(A) through (C).
(c) The length of a vessel:
(i) (A) for a new vessel, is the length:
(I) listed on the manufacturer's statement of origin if the length of the vessel measured
under Subsection (6)(b) is equal to the length of the vessel listed on the manufacturer's statement
of origin; or
(II) listed on a form submitted to the commission by a dealer in accordance with
Subsection (6)(d) if the length of the vessel measured under Subsection (6)(b) is not equal to the
length of the vessel listed on the manufacturer's statement of origin; or
(B) for a vessel other than a new vessel, is the length:
(I) corresponding to the model number if the length of the vessel measured under
Subsection (6)(b) is equal to the length of the vessel determined by reference to the model
number; or
(II) listed on a form submitted to the commission by an owner of the vessel in
accordance with Subsection (6)(d) if the length of the vessel measured under Subsection (6)(b) is
not equal to the length of the vessel determined by reference to the model number; and
(ii) (A) is determined at the time of the:
(I) first registration as defined in Section 41-1a-102 that occurs on or after January 1,
2006; or
(II) first renewal of registration that occurs on or after January 1, 2006; and
(B) may be determined after the time described in Subsection (6)(c)(ii)(A) only if the
commission requests that a dealer or an owner submit a form to the commission in accordance

with Subsection (6)(d).
(d) (i) A form under Subsection (6)(c) shall:
(A) be developed by the commission;
(B) be provided by the commission to:
(I) a dealer; or
(II) an owner of a vessel;
(C) provide for the reporting of the length of a vessel;
(D) be submitted to the commission at the time the length of the vessel is determined in
accordance with Subsection (6)(c)(ii);
(E) be signed by:
(I) if the form is submitted by a dealer, that dealer; or
(II) if the form is submitted by an owner of the vessel, an owner of the vessel; and
(F) include a certification that the information set forth in the form is true.
(ii) A certification made under Subsection (6)(d)(i)(F) is considered as if made under
oath and subject to the same penalties as provided by law for perjury.
(iii) (A) A dealer or an owner that submits a form to the commission under Subsection
(6)(c) is considered to have given the dealer's or owner's consent to an audit or review by:
(I) the commission;
(II) the county assessor; or
(III) the commission and the county assessor.
(B) The consent described in Subsection (6)(d)(iii)(A) is a condition to the acceptance of
any form.
Section 6. Section 59-2-406 is amended to read:
59-2-406. Collection of uniform fees and other motor vehicle fees.
(1) (a) For the purposes of efficiency in the collection of the uniform fee required by this
section, the commission shall enter into a contract for the collection of the uniform fees required
under Sections 59-2-405 [and], 59-2-405.1 , and 59-2-405.2 and certain fees required by Title 41,
Motor Vehicles.

(b) The contract required by this section shall, at the county's option, provide for one of
the following collection agreements:
(i) the collection by the commission of:
(A) the uniform fees required under Sections 59-2-405 [and], 59-2-405.1 , and
59-2-405.2 ; and
(B) all [Title 41] fees listed in Subsection (1)(c); or
(ii) the collection by the county of:
(A) the uniform fees required under Sections 59-2-405 [and], 59-2-405.1 , and
59-2-405.2 ; and
(B) all [Title 41] fees listed in Subsection (1)(c).
(c) [The Title 41] For purposes of Subsections (1)(b)(i)(B) and (1)(b)(ii)(B), the fees that
are subject to the contractual agreement required by this section are the following fees imposed
by Title 41, Motor Vehicles:
(i) registration fees for vehicles, mobile homes, manufactured homes, boats, and
off-highway vehicles, with the exception of fleet and proportional registration;
(ii) title fees for vehicles, mobile homes, manufactured homes, boats, and off-highway
vehicles;
(iii) plate fees for vehicles;
(iv) permit fees; and
(v) impound fees.
(d) A county may change the election it makes pursuant to Subsection (1)(b) by
providing written notice of the change to the commission at least 18 months before the change
shall take effect.
(2) The contract shall provide that the party contracting to perform services shall:
(a) be responsible for the collection of:
(i) the uniform fees under Sections 59-2-405 [and], 59-2-405.1 , and 59-2-405.2 ; and
(ii) [the applicable Title 41] any fees described in Subsection (1)(c) as agreed to in the
contract;

(b) utilize the documents and forms, guidelines, practices, and procedures that meet the
contract specifications;
(c) meet the performance standards and comply with applicable training requirements
specified in the rules made under Subsection (8)(a); and
(d) be subject to a penalty of 1/2 the difference between the reimbursement fee specified
under Subsection (3) and the reimbursement fee for fiscal year 1997-98 if performance is below
the performance standards specified in the rules made under Subsection (8)(a).
(3) (a) The commission shall recommend a reimbursement fee for collecting the fees as
provided in Subsection (2)(a), except that the commission may not collect a reimbursement fee
on a state-assessed commercial vehicle described in Subsection 59-2-405.1 (2)(a)(ii).
(b) The reimbursement fee shall be based on two dollars per standard unit for the first
5,000 standard units in each county and one dollar per standard unit for all other standard units
and shall be annually adjusted by the commission beginning July 1, 1999.
(c) The adjustment shall be equal to any increase in the Consumer Price Index for all
urban consumers, prepared by the United States Bureau of Labor Statistics, during the preceding
calendar year.
(d) The reimbursement fees under this Subsection (3) shall be appropriated by the
Legislature.
(4) All counties that elect to collect the uniform [fee] fees described in Subsection
(1)(b)(ii)(A) and any other [Title 41] fees described in Subsection (1)(c) as provided by contract
shall be subject to similar contractual terms.
(5) The party performing the collection services by contract shall use appropriate
automated systems software and equipment compatible with the system used by the other
contracting party in order to ensure the integrity of the current motor vehicle data base and
county tax systems, or successor data bases and systems.
(6) If the county elects not to collect the uniform [fee] fees described in Subsection
(1)(b)(ii)(A) and the [Title 41] fees described in Subsection (1)(c):
(a) the commission shall:

(i) collect the uniform [fee] fees described in Subsection (1)(b)(ii)(A) and [Title 41] the
fees described in Subsection (1)(c) in each county or regional center as negotiated by the counties
with the commission in accordance with the requirements of this section; and
(ii) provide information to the county in a format and media consistent with the county's
requirements; and
(b) the county shall pay the commission a reimbursement fee as provided in Subsection
(3).
(7) This section shall not limit the authority given to the county in Section 59-2-1302 .
(8) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
the commission shall make rules specifying the performance standards and applicable training
requirements for all contracts required by this section.
(b) Beginning on July 1, 1998, each new contract entered into under this section shall be
subject to the rules made under Subsection (8)(a).
Section 7. Section 59-2-407 is amended to read:
59-2-407. Administration of uniform fees.
(1) (a) Except as provided in Subsection 59-2-405 (4), the uniform fee authorized in
Sections 59-2-404 and 59-2-405 shall be assessed at the same time and in the same manner as ad
valorem personal property taxes under Chapter 2, Part 13, Collection of Taxes, except that in
listing personal property subject to the uniform fee with real property as permitted by Section
59-2-1302 , the assessor or, if this duty has been reassigned in an ordinance under Section
17-16-5.5 , the treasurer shall list only the amount of the uniform fee due, and not the taxable
value of the property subject to the uniform fee.
(b) Except as provided in Subsection [ 59-2-405 ] 59-2-405.1 (4), the uniform fee
[authorized in] imposed by Section 59-2-405.1 shall be assessed at the time of:
(i) registration as defined in Section 41-1a-102 ; and
(ii) renewal of registration.
(c) Except as provided in Subsection 59-2-405.2 (4), the uniform statewide fee imposed
by Section 59-2-405.2 shall be assessed at the time of:

(i) registration as defined in Section 41-1a-102 ; and
(ii) renewal of registration.
(2) The remedies for nonpayment of the uniform fees authorized by Sections 59-2-404 ,
59-2-405 , [and] 59-2-405.1 , and 59-2-405.2 shall be the same as those provided in Chapter 2,
Part 13, Collection of Taxes, for nonpayment of ad valorem personal property taxes.
Section 8. Section 59-2-924 is amended to read:
59-2-924. Report of valuation of property to county auditor and commission --
Transmittal by auditor to governing bodies -- Certified tax rate -- Rulemaking authority --
Adoption of tentative budget.
(1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the
county auditor and the commission the following statements:
(i) a statement containing the aggregate valuation of all taxable property in each taxing
entity; and
(ii) a statement containing the taxable value of any additional personal property
estimated by the county assessor to be subject to taxation in the current year.
(b) The county auditor shall, on or before June 8, transmit to the governing body of each
taxing entity:
(i) the statements described in Subsections (1)(a)(i) and (ii);
(ii) an estimate of the revenue from personal property;
(iii) the certified tax rate; and
(iv) all forms necessary to submit a tax levy request.
(2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad valorem
property tax revenues for a taxing entity as were budgeted by that taxing entity for the prior year.
(ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not
include:
(A) collections from redemptions;
(B) interest; and
(C) penalties.

(iii) Except as provided in Subsection (2)(a)(v), the certified tax rate shall be calculated
by dividing the ad valorem property tax revenues budgeted for the prior year by the taxing entity
by the taxable value established in accordance with Section 59-2-913 .
(iv) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
the commission shall make rules determining the calculation of ad valorem property tax revenues
budgeted by a taxing entity.
(B) For purposes of Subsection (2)(a)(iv)(A), ad valorem property tax revenues budgeted
by a taxing entity shall be calculated in the same manner as budgeted property tax revenues are
calculated for purposes of Section 59-2-913 .
(v) The certified tax rates for the taxing entities described in this Subsection (2)(a)(v)
shall be calculated as follows:
(A) except as provided in Subsection (2)(a)(v)(B), for new taxing entities the certified
tax rate is zero;
(B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
(I) in a county of the first, second, or third class, the levy imposed for municipal-type
services under Sections 17-34-1 and 17-36-9 ; and
(II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
purposes and such other levies imposed solely for the municipal-type services identified in
Section 17-34-1 and Subsection 17-36-3 (22);
(C) for debt service voted on by the public, the certified tax rate shall be the actual levy
imposed by that section, except that the certified tax rates for the following levies shall be
calculated in accordance with Section 59-2-913 and this section:
(I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
53A-17a-127 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
(II) levies to pay for the costs of state legislative mandates or judicial or administrative
orders under Section 59-2-906.3 .
(vi) (A) A judgment levy imposed under Section 59-2-1328 or Section 59-2-1330 shall
be established at that rate which is sufficient to generate only the revenue required to satisfy one

or more eligible judgments, as defined in Section 59-2-102 .
(B) The ad valorem property tax revenue generated by the judgment levy shall not be
considered in establishing the taxing entity's aggregate certified tax rate.
(b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use the
taxable value of property on the assessment roll.
(ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the assessment
roll does not include new growth as defined in Subsection (2)(b)(iii).
(iii) "New growth" means:
(A) the difference between the increase in taxable value of the taxing entity from the
previous calendar year to the current year; minus
(B) the amount of an increase in taxable value described in Subsection (2)(b)(iv).
(iv) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
(A) the amount of increase to locally assessed real property taxable values resulting from
factoring, reappraisal, or any other adjustments; or
(B) the amount of an increase in the taxable value of property assessed by the
commission under Section 59-2-201 resulting from a change in the method of apportioning the
taxable value prescribed by:
(I) the Legislature;
(II) a court;
(III) the commission in an administrative rule; or
(IV) the commission in an administrative order.
(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , [or] 59-2-405.1 , or
59-2-405.2 as a result of any county imposing a sales and use tax under Chapter 12, Part 11,
County Option Sales and Use Tax, the taxing entity shall decrease its certified tax rate to offset
the increased revenues.
(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under Chapter
12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:

(A) decreased on a one-time basis by the amount of the estimated sales and use tax
revenue to be distributed to the county under Subsection 59-12-1102 (3); and
(B) increased by the amount necessary to offset the county's reduction in revenue from
uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , [or] 59-2-405.1 , or
59-2-405.2 as a result of the decrease in the certified tax rate under Subsection (2)(d)(i)(A).
(ii) The commission shall determine estimates of sales and use tax distributions for
purposes of Subsection (2)(d)(i).
(e) Beginning January 1, 1998, if a municipality has imposed an additional resort
communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
revenue from the additional resort communities sales and use tax imposed under Section
59-12-402 .
(f) For the calendar year beginning on January 1, 1999, and ending on December 31,
1999, a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the
adjustment in revenues from uniform fees on tangible personal property under Section
59-2-405.1 as a result of the adjustment in uniform fees on tangible personal property under
Section 59-2-405.1 enacted by the Legislature during the 1998 Annual General Session .
(g) For purposes of Subsections (2)(h) through (j):
(i) "1998 actual collections" means the amount of revenues a taxing entity actually
collected for the calendar year beginning on January 1, 1998 , under Section 59-2-405 for:
(A) motor vehicles required to be registered with the state that weigh 12,000 pounds or
less; and
(B) state-assessed commercial vehicles required to be registered with the state that weigh
12,000 pounds or less.
(ii) "1999 actual collections" means the amount of revenues a taxing entity actually
collected for the calendar year beginning on January 1, 1999 , under Section 59-2-405.1 .
(h) For the calendar year beginning on January 1, 2000 , the commission shall make the
following adjustments:

(i) the commission shall make the adjustment described in Subsection (2)(i)(i) if, for the
calendar year beginning on January 1, 1999 , a taxing entity's 1998 actual collections were
greater than the sum of:
(A) the taxing entity's 1999 actual collections; and
(B) any adjustments the commission made under Subsection (2)(f);
(ii) the commission shall make the adjustment described in Subsection (2)(i)(ii) if, for the
calendar year beginning on January 1, 1999 , a taxing entity's 1998 actual collections were
greater than the taxing entity's 1999 actual collections, but the taxing entity's 1998 actual
collections were less than the sum of:
(A) the taxing entity's 1999 actual collections; and
(B) any adjustments the commission made under Subsection (2)(f); and
(iii) the commission shall make the adjustment described in Subsection (2)(i)(iii) if, for
the calendar year beginning on January 1, 1999 , a taxing entity's 1998 actual collections were
less than the taxing entity's 1999 actual collections.
(i) (i) For purposes of Subsection (2)(h)(i), the commission shall increase a taxing entity's
certified tax rate under this section and a taxing entity's certified revenue levy under Section
59-2-906.1 by the amount necessary to offset the difference between:
(A) the taxing entity's 1998 actual collections; and
(B) the sum of:
(I) the taxing entity's 1999 actual collections; and
(II) any adjustments the commission made under Subsection (2)(f).
(ii) For purposes of Subsection (2)(h)(ii), the commission shall decrease a taxing entity's
certified tax rate under this section and a taxing entity's certified revenue levy under Section
59-2-906.1 by the amount necessary to offset the difference between:
(A) the sum of:
(I) the taxing entity's 1999 actual collections; and
(II) any adjustments the commission made under Subsection (2)(f); and
(B) the taxing entity's 1998 actual collections.

(iii) For purposes of Subsection (2)(h)(iii), the commission shall decrease a taxing
entity's certified tax rate under this section and a taxing entity's certified revenue levy under
Section 59-2-906.1 by the amount of any adjustments the commission made under Subsection
(2)(f).
(j) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
purposes of Subsections (2)(f) through (i), the commission may make rules establishing the
method for determining a taxing entity's 1998 actual collections and 1999 actual collections.
(k) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
unincorporated area of the county shall be decreased by the amount necessary to reduce revenues
in that fiscal year by an amount equal to the difference between the amount the county budgeted
in its 2000 fiscal year budget for advanced life support and paramedic services countywide and
the amount the county spent during fiscal year 2000 for those services, excluding amounts spent
from a municipal services fund for those services.
(B) For fiscal year 2001, the certified tax rate of each county to which Subsection
(2)(k)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
year by the amount that the county spent during fiscal year 2000 for advanced life support and
paramedic services countywide, excluding amounts spent from a municipal services fund for
those services.
(ii) (A) A city or town located within a county of the first class to which Subsection
(2)(k)(i) applies may increase its certified tax rate by the amount necessary to generate within the
city or town the same amount of revenues as the county would collect from that city or town if
the decrease under Subsection (2)(k)(i) did not occur.
(B) An increase under Subsection (2)(k)(ii)(A), whether occurring in a single fiscal year
or spread over multiple fiscal years, is not subject to the notice and hearing requirements of
Sections 59-2-918 and 59-2-919 .
(l) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
provide detective investigative services to the unincorporated area of the county shall be

decreased:
(A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year by
at least $4,400,000; and
(B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year by
an amount equal to the difference between $9,258,412 and the amount of the reduction in
revenues under Subsection (2)(l)(i)(A).
(ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
county to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within
the city or town the same amount of revenue as the county would have collected during county
fiscal year 2001 from within the city or town except for Subsection (2)(l)(i)(A).
(II) Beginning with municipal fiscal year 2003, a city or town located within a county to
which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within the city or
town the same amount of revenue as the county would have collected during county fiscal year
2002 from within the city or town except for Subsection (2)(l)(i)(B).
(B) (I) Except as provided in Subsection (2)(l)(ii)(B)(II), an increase in the city or town's
certified tax rate under Subsection (2)(l)(ii)(A), whether occurring in a single fiscal year or
spread over multiple fiscal years, is subject to the notice and hearing requirements of Sections
59-2-918 and 59-2-919 .
(II) For an increase under this Subsection (2)(l)(ii) that generates revenue that does not
exceed the same amount of revenue as the county would have collected except for Subsection
(2)(l)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the city or town:
(Aa) publishes a notice that meets the size, type, placement, and frequency requirements
of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed by the county
to one imposed by the city or town, and explains how the revenues from the tax increase will be
used; and
(Bb) holds a public hearing on the tax shift that may be held in conjunction with the city
or town's regular budget hearing.
(m) (i) This Subsection (2)(m) applies to each county that:

(A) establishes a countywide special service district under Title 17A, Chapter 2, Part 13,
Utah Special Service District Act, to provide jail service, as provided in Subsection
17A-2-1304 (1)(a)(x); and
(B) levies a property tax on behalf of the special service district under Section
17A-2-1322 .
(ii) (A) The certified tax rate of each county to which this Subsection (2)(m) applies shall
be decreased by the amount necessary to reduce county revenues by the same amount of revenues
that will be generated by the property tax imposed on behalf of the special service district.
(B) Each decrease under Subsection (2)(m)(ii)(A) shall occur contemporaneously with
the levy on behalf of the special service district under Section 17A-2-1322 .
(n) (i) As used in this Subsection (2)(n):
(A) "Annexing county" means a county whose unincorporated area is included within a
fire district by annexation.
(B) "Annexing municipality" means a municipality whose area is included within a fire
district by annexation.
(C) "Equalized fire protection tax rate" means the tax rate that results from:
(I) calculating, for each participating county and each participating municipality, the
property tax revenue necessary to cover all of the costs associated with providing fire protection,
paramedic, and emergency services:
(Aa) for a participating county, in the unincorporated area of the county; and
(Bb) for a participating municipality, in the municipality; and
(II) adding all the amounts calculated under Subsection (2)(n)(i)(C)(I) for all
participating counties and all participating municipalities and then dividing that sum by the
aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
(Aa) for participating counties, in the unincorporated area of all participating counties;
and
(Bb) for participating municipalities, in all the participating municipalities.
(D) "Fire district" means a county service area under Title 17A, Chapter 2, Part 4,

County Service Area Act, in the creation of which an election was not required under Subsection
17B-2-214 (3)(c).
(E) "Fire protection tax rate" means:
(I) for an annexing county, the property tax rate that, when applied to taxable property in
the unincorporated area of the county, generates enough property tax revenue to cover all the
costs associated with providing fire protection, paramedic, and emergency services in the
unincorporated area of the county; and
(II) for an annexing municipality, the property tax rate that generates enough property tax
revenue in the municipality to cover all the costs associated with providing fire protection,
paramedic, and emergency services in the municipality.
(F) "Participating county" means a county whose unincorporated area is included within
a fire district at the time of the creation of the fire district.
(G) "Participating municipality" means a municipality whose area is included within a
fire district at the time of the creation of the fire district.
(ii) In the first year following creation of a fire district, the certified tax rate of each
participating county and each participating municipality shall be decreased by the amount of the
equalized fire protection tax rate.
(iii) In the first year following annexation to a fire district, the certified tax rate of each
annexing county and each annexing municipality shall be decreased by the fire protection tax
rate.
(iv) Each tax levied under this section by a fire district shall be considered to be levied
by:
(A) each participating county and each annexing county for purposes of the county's tax
limitation under Section 59-2-908 ; and
(B) each participating municipality and each annexing municipality for purposes of the
municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a city.
(3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
(b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county

auditor of:
(i) its intent to exceed the certified tax rate; and
(ii) the amount by which it proposes to exceed the certified tax rate.
(c) The county auditor shall notify all property owners of any intent to exceed the
certified tax rate in accordance with Subsection 59-2-919 (2).
(4) (a) The taxable value for the base year under Subsection 17B-4-102 (4) shall be
reduced for any year to the extent necessary to provide a redevelopment agency established under
Title 17B, Chapter 4, Redevelopment Agencies Act, with approximately the same amount of
money the agency would have received without a reduction in the county's certified tax rate if:
(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
(2)(d)(i);
(ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
previous year; and
(iii) the decrease results in a reduction of the amount to be paid to the agency under
Section 17B-4-1003 or 17B-4-1004 .
(b) The base taxable value under Subsection 17B-4-102 (4) shall be increased in any year
to the extent necessary to provide a redevelopment agency with approximately the same amount
of money as the agency would have received without an increase in the certified tax rate that year
if:
(i) in that year the base taxable value under Subsection 17B-4-102 (4) is reduced due to a
decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and
(ii) The certified tax rate of a city, school district, or special district increases
independent of the adjustment to the taxable value of the base year.
(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
(2)(d)(i), the amount of money allocated and, when collected, paid each year to a redevelopment
agency established under Title 17B, Chapter 4, Redevelopment Agencies Act, for the payment of
bonds or other contract indebtedness, but not for administrative costs, may not be less than that
amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or

(2)(d)(i).
Section 9. Section 59-2-1005 is amended to read:
59-2-1005. Procedures for appeal of personal property valuation -- Time for appeal
-- Hearing -- Decision -- Appeal to commission.
(1) [The] For personal property assessed by a county assessor in accordance with Section
59-2-301 , the county legislative body shall include with the signed statement required by Section
59-2-306 a notice of procedures for an appeal [of any] relating to the value of the personal
property [valuation with each tax notice].
(2) (a) If personal property is subject to a fee in lieu of tax or the uniform tax under
Article XIII, Sec. [14] 2, Utah Constitution, and the fee or tax is based upon the value of the
property, the basis of the value may be appealed to the commission.
[(2) Any] (b) For the personal property described in Subsection (2)(a), a taxpayer
[dissatisfied with the taxable value of the taxpayer's personal property] may make an appeal
relating to the value of the personal property by filing an application with the county legislative
body no later than 30 days after the mailing of the tax notice.
(3) (a) After giving reasonable notice, the county legislative body shall hear [the] an
appeal filed in accordance with Subsection (2) and render a written decision.
(b) The written decision described in Subsection (3)(a) shall be rendered no later than 60
days after receipt of the appeal.
(4) If any taxpayer is dissatisfied with [the] a decision [of] rendered in accordance with
Subsection (3) by the county legislative body, the taxpayer may file an appeal with the
commission [as established] in accordance with Section 59-2-1006 .
(5) For personal property assessed by the commission in accordance with Section
59-2-201 , a taxpayer may make an appeal relating to the personal property in accordance with
Section 59-2-1007 .
Section 10. Section 59-7-614 is amended to read:
59-7-614. Renewable energy systems tax credit -- Definitions -- Limitations -- State
tax credit in addition to allowable federal credits -- Certification -- Rulemaking authority --

Reimbursement of Uniform School Fund.
(1) As used in this section:
(a) "Active solar system":
(i) means a system of equipment capable of collecting and converting incident solar
radiation into thermal, mechanical, or electrical energy, and transferring these forms of energy by
a separate apparatus to storage or to the point of use; and
(ii) includes water heating, space heating or cooling, and electrical or mechanical energy
generation.
(b) "Biomass system" means any system of apparatus and equipment capable of
converting organic plant, wood, or waste products into electrical and thermal energy and
transferring these forms of energy by a separate apparatus to the point of use or storage.
(c) "Business entity" means any sole proprietorship, estate, trust, partnership, association,
corporation, cooperative, or other entity under which business is conducted or transacted.
(d) "Commercial energy system" means any active solar, passive solar, wind,
hydroenergy, or biomass system used to supply energy to a commercial unit or as a commercial
enterprise.
(e) "Commercial enterprise" means a business entity whose purpose is to produce
electrical, mechanical, or thermal energy for sale from a commercial energy system.
(f) (i) "Commercial unit" means any building or structure which a business entity uses to
transact its business except as provided in Subsection (1)(f)(ii); and
(ii) (A) in the case of an active solar system used for agricultural water pumping or a
wind system, each individual energy generating device shall be a commercial unit; and
(B) if an energy system is the building or structure which a business entity uses to
transact its business, a commercial unit is the complete energy system itself.
(g) "Hydroenergy system" means a system of apparatus and equipment capable of
intercepting and converting kinetic water energy into electrical or mechanical energy and
transferring this form of energy by separate apparatus to the point of use or storage.
(h) "Individual taxpayer" means any person who is a taxpayer as defined in Section

59-10-103 and an individual as defined in Section 59-10-103 .
(i) "Office of Energy and Resource Planning" means the Office of Energy and Resource
Planning, Department of Natural Resources.
(j) "Passive solar system":
(i) means a direct thermal system which utilizes the structure of a building and its
operable components to provide for collection, storage, and distribution of heating or cooling
during the appropriate times of the year by utilizing the climate resources available at the site;
and
(ii) includes those portions and components of a building that are expressly designed and
required for the collection, storage, and distribution of solar energy.
(k) "Residential energy system" means any active solar, passive solar, wind, or
hydroenergy system used to supply energy to or for any residential unit.
(l) "Residential unit" means any house, condominium, apartment, or similar dwelling
unit which serves as a dwelling for a person, group of persons, or a family but does not include
property subject to [the fees in lieu of the ad valorem tax] a fee under:
(i) Section 59-2-404 ;
(ii) Section 59-2-405 ; [or]
(iii) Section 59-2-405.1 ; or
(iv) Section 59-2-405.2 .
(m) "Wind system" means a system of apparatus and equipment capable of intercepting
and converting wind energy into mechanical or electrical energy and transferring these forms of
energy by a separate apparatus to the point of use or storage.
(2) (a) (i) For taxable years beginning on or after January 1, 2001, but beginning on or
before December 31, 2006, a business entity that purchases and completes or participates in the
financing of a residential energy system to supply all or part of the energy required for a
residential unit owned or used by the business entity and situated in Utah is entitled to a tax
credit as provided in this Subsection (2)(a).
(ii) (A) A business entity is entitled to a tax credit equal to 25% of the costs of a

residential energy system installed with respect to each residential unit it owns or uses, including
installation costs, against any tax due under this chapter for the taxable year in which the energy
system is completed and placed in service.
(B) The total amount of the credit under this Subsection (2)(a) may not exceed $2,000
per residential unit.
(C) The credit under this Subsection (2)(a) is allowed for any residential energy system
completed and placed in service on or after January 1, 2001, but on or before December 31,
2006.
(iii) If a business entity sells a residential unit to an individual taxpayer prior to making a
claim for the tax credit under this Subsection (2)(a), the business entity may:
(A) assign its right to this tax credit to the individual taxpayer; and
(B) if the business entity assigns its right to the tax credit to an individual taxpayer under
Subsection (2)(a)(iii)(A), the individual taxpayer may claim the tax credit as if the individual
taxpayer had completed or participated in the costs of the residential energy system under Section
59-10-134 .
(b) (i) For taxable years beginning on or after January 1, 2001, but beginning on or
before December 31, 2006, a business entity that purchases or participates in the financing of a
commercial energy system is entitled to a tax credit as provided in this Subsection (2)(b) if:
(A) the commercial energy system supplies all or part of the energy required by
commercial units owned or used by the business entity; or
(B) the business entity sells all or part of the energy produced by the commercial energy
system as a commercial enterprise.
(ii) (A) A business entity is entitled to a tax credit equal to 10% of the costs of any
commercial energy system installed, including installation costs, against any tax due under this
chapter for the taxable year in which the commercial energy system is completed and placed in
service.
(B) The total amount of the credit under this Subsection (2)(b) may not exceed $50,000
per commercial unit.

(C) The credit under this Subsection (2)(b) is allowed for any commercial energy system
completed and placed in service on or after January 1, 2001, but on or before December 31,
2006.
(iii) A business entity that leases a commercial energy system installed on a commercial
unit is eligible for the tax credit under this Subsection (2)(b) if the lessee can confirm that the
lessor irrevocably elects not to claim the credit.
(iv) Only the principal recovery portion of the lease payments, which is the cost incurred
by a business entity in acquiring a commercial energy system, excluding interest charges and
maintenance expenses, is eligible for the tax credit under this Subsection (2)(b).
(v) A business entity that leases a commercial energy system is eligible to use the tax
credit under this Subsection (2)(b) for a period no greater than seven years from the initiation of
the lease.
(c) (i) A tax credit under this section may be claimed for the taxable year in which the
energy system is completed and placed in service.
(ii) Additional energy systems or parts of energy systems may be claimed for subsequent
years.
(iii) If the amount of a tax credit under this section exceeds a business entity's tax
liability under this chapter for a taxable year, the amount of the credit exceeding the liability may
be carried over for a period which does not exceed the next four taxable years.
(3) (a) The tax credits provided for under Subsection (2) are in addition to any tax credits
provided under the laws or rules and regulations of the United States.
(b) (i) The Office of Energy and Resource Planning may promulgate standards for
residential and commercial energy systems that cover the safety, reliability, efficiency, leasing,
and technical feasibility of the systems to ensure that the systems eligible for the tax credit use
the state's renewable and nonrenewable energy resources in an appropriate and economic manner.
(ii) A tax credit may not be taken under Subsection (2) until the Office of Energy and
Resource Planning has certified that the energy system has been completely installed and is a
viable system for saving or production of energy from renewable resources.

(c) The Office of Energy and Resource Planning and the commission are authorized to
promulgate rules in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
Act, which are necessary to implement this section.
(d) The Uniform School Fund shall be reimbursed by transfers from the General Fund for
any credits taken under this section.
Section 11. Section 59-10-134 is amended to read:
59-10-134. Renewable energy systems tax credit -- Definitions -- Individual tax
credit -- Limitations -- Business tax credit -- Limitations -- State tax credit in addition to
allowable federal credits -- Certification -- Rulemaking authority -- Reimbursement of
Uniform School Fund.
(1) As used in this part:
(a) "Active solar system":
(i) means a system of equipment capable of collecting and converting incident solar
radiation into thermal, mechanical, or electrical energy, and transferring these forms of energy by
a separate apparatus to storage or to the point of use; and
(ii) includes water heating, space heating or cooling, and electrical or mechanical energy
generation.
(b) "Biomass system" means any system of apparatus and equipment capable of
converting organic plant, wood, or waste products into electrical and thermal energy and
transferring these forms of energy by a separate apparatus to the point of use or storage.
(c) "Business entity" means any sole proprietorship, estate, trust, partnership, association,
corporation, cooperative, or other entity under which business is conducted or transacted.
(d) "Commercial energy system" means any active solar, passive solar, wind,
hydroenergy, or biomass system used to supply energy to a commercial unit or as a commercial
enterprise.
(e) "Commercial enterprise" means a business entity whose purpose is to produce
electrical, mechanical, or thermal energy for sale from a commercial energy system.
(f) (i) "Commercial unit" means any building or structure which a business entity uses to

transact its business, except as provided in Subsection (1)(f)(ii); and
(ii) (A) in the case of an active solar system used for agricultural water pumping or a
wind system, each individual energy generating device shall be a commercial unit; and
(B) if an energy system is the building or structure which a business entity uses to
transact its business, a commercial unit is the complete energy system itself.
(g) "Hydroenergy system" means a system of apparatus and equipment capable of
intercepting and converting kinetic water energy into electrical or mechanical energy and
transferring this form of energy by separate apparatus to the point of use or storage.
(h) "Individual taxpayer" means any person who is a taxpayer as defined in Section
59-10-103 and an individual as defined in Section 59-10-103 .
(i) "Office of Energy and Resource Planning" means the Office of Energy and Resource
Planning, Department of Natural Resources.
(j) "Passive solar system":
(i) means a direct thermal system which utilizes the structure of a building and its
operable components to provide for collection, storage, and distribution of heating or cooling
during the appropriate times of the year by utilizing the climate resources available at the site;
and
(ii) includes those portions and components of a building that are expressly designed and
required for the collection, storage, and distribution of solar energy.
(k) "Residential energy system" means any active solar, passive solar, wind, or
hydroenergy system used to supply energy to or for any residential unit.
(l) "Residential unit" means any house, condominium, apartment, or similar dwelling
unit which serves as a dwelling for a person, group of persons, or a family but does not include
property subject to [the fees in lieu of the ad valorem tax] a fee under:
(i) Section 59-2-404 ;
(ii) Section 59-2-405 ; [or]
(iii) Section 59-2-405.1 ; or
(iv) Section 59-2-405.2 .

(m) "Wind system" means a system of apparatus and equipment capable of intercepting
and converting wind energy into mechanical or electrical energy and transferring these forms of
energy by a separate apparatus to the point of use or storage.
(2) For taxable years beginning on or after January 1, 2001, but beginning on or before
December 31, 2006, any individual taxpayer may claim a tax credit as provided in this section if:
(a) the individual taxpayer purchases and completes or participates in the financing of a
residential energy system to supply all or part of the energy for the individual taxpayer's
residential unit in the state; or
(b) (i) a business entity sells a residential unit to an individual taxpayer prior to making a
claim for a tax credit under Subsection (6) or Section 59-7-614 ; and
(ii) the business entity assigns its right to the tax credit to the individual taxpayer as
provided in Subsection (6)(c) or Subsection 59-7-614 (2)(a)(iii).
(3) (a) An individual taxpayer meeting the requirements of Subsection (2) is entitled to a
tax credit equal to 25% of the costs of the energy system, including installation costs, against any
income tax liability of the individual taxpayer under this chapter for the taxable year in which the
residential energy system is completed and placed in service.
(b) The total amount of the credit under this section may not exceed $2,000 per
residential unit.
(c) The credit under this section is allowed for any residential energy system completed
and placed in service on or after January 1, 2001, but on or before December 31, 2006.
(4) (a) The tax credit provided for in this section shall be claimed in the return for the
taxable year in which the energy system is completed and placed in service.
(b) Additional residential energy systems or parts of residential energy systems may be
similarly claimed in returns for subsequent taxable years as long as the total amount claimed does
not exceed $2,000 per residential unit.
(c) If the amount of the tax credit under this section exceeds the income tax liability of
the individual taxpayer for that taxable year, then the amount not used may be carried over for a
period which does not exceed the next four taxable years.

(5) (a) Individual taxpayers who lease a residential energy system installed on a
residential unit are eligible for the residential energy tax credits if the lessee can confirm that the
lessor irrevocably elects not to claim the state tax credit.
(b) Only the principal recovery portion of the lease payments, which is the cost incurred
by the taxpayer in acquiring the residential energy system excluding interest charges and
maintenance expenses, is eligible for the tax credits.
(c) Individual taxpayers who lease residential energy systems are eligible to use the tax
credits for a period no greater than seven years from the initiation of the lease.
(6) (a) A business entity that purchases and completes or participates in the financing of a
residential energy system to supply all or part of the energy required for a residential unit owned
or used by the business entity and situated in Utah is entitled to a tax credit as provided in this
Subsection (6).
(b) (i) For taxable years beginning on or after January 1, 2001, but beginning on or
before December 31, 2006, a business entity is entitled to a tax credit equal to 25% of the costs of
a residential energy system installed with respect to each residential unit it owns or uses,
including installation costs, against any tax due under this chapter for the taxable year in which
the energy system is completed and placed in service.
(ii) The total amount of the credit under this Subsection (6) may not exceed $2,000 per
residential unit.
(iii) The credit under this Subsection (6) is allowed for any residential energy system
completed and placed in service on or after January 1, 2001, but on or before December 31,
2006.
(c) If a business entity sells a residential unit to an individual taxpayer prior to making a
claim for the tax credit under this Subsection (6), the business entity may:
(i) assign its right to this tax credit to the individual taxpayer; and
(ii) if the business entity assigns its right to the tax credit to an individual taxpayer under
Subsection (6)(c)(i), the individual taxpayer may claim the tax credit as if the individual taxpayer
had completed or participated in the costs of the residential energy system under this section.

(7) (a) A business entity that purchases or participates in the financing of a commercial
energy system is entitled to a tax credit as provided in this Subsection (7) if:
(i) the commercial energy system supplies all or part of the energy required by
commercial units owned or used by the business entity; or
(ii) the business entity sells all or part of the energy produced by the commercial energy
system as a commercial enterprise.
(b) (i) A business entity is entitled to a tax credit equal to 10% of the costs of any
commercial energy system installed, including installation costs, against any tax due under this
chapter for the taxable year in which the commercial energy system is completed and placed in
service.
(ii) The total amount of the credit under this Subsection (7) may not exceed $50,000 per
commercial unit.
(iii) The credit under this Subsection (7) is allowed for any commercial energy system
completed and placed in service on or after January 1, 2001, but on or before December 31,
2006.
(c) A business entity that leases a commercial energy system installed on a commercial
unit is eligible for the tax credit under this Subsection (7) if the lessee can confirm that the lessor
irrevocably elects not to claim the credit.
(d) Only the principal recovery portion of the lease payments, which is the cost incurred
by a business entity in acquiring a commercial energy system, excluding interest charges and
maintenance expenses, is eligible for the tax credit under this Subsection (7).
(e) A business entity that leases a commercial energy system is eligible to use the tax
credit under this Subsection (7) for a period no greater than seven years from the initiation of the
lease.
(8) (a) A tax credit under this section may be claimed for the taxable year in which the
energy system is completed and placed in service.
(b) Additional energy systems or parts of energy systems may be claimed for subsequent
years.

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