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S.B. 129 Enrolled

                 

BRINE SHRIMP ROYALTY ACT AMENDMENTS

                 
2005 GENERAL SESSION

                 
STATE OF UTAH

                 
Chief Sponsor: Thomas V. Hatch

                 
House Sponsor: James R. Gowans

                 
                  LONG TITLE
                  General Description:
                      This bill changes the amount of the brine shrimp royalty described in the Brine Shrimp
                  Royalty Act.
                  Highlighted Provisions:
                      This bill:
                      .    defines terms;
                      .    beginning on February 1, 2004, and ending on January 31, 2006, imposes for each
                  tax year a brine shrimp royalty of the lesser of:
                          .    3.75 cents multiplied by the total pounds of unprocessed brine shrimp eggs that
                  are harvested in the state during the tax year; or
                          .    $550,000;
                      .    beginning on February 1, 2006, imposes for each tax year a brine shrimp royalty of
                  3.75 cents multiplied by the total pounds of unprocessed brine shrimp eggs that are
                  harvested in the state during the tax year;
                      .    describes the royalty amount due from each person that harvests unprocessed brine
                  shrimp eggs in the state; and
                      .    makes technical changes.
                  Monies Appropriated in this Bill:
                      None
                  Other Special Clauses:
                      This bill provides an immediate effective date.
                      This bill provides retrospective operation.


                  Utah Code Sections Affected:
                  AMENDS:
                      59-23-3, as last amended by Chapter 232, Laws of Utah 2004
                      59-23-4, as last amended by Chapter 232, Laws of Utah 2004
                      59-23-5, as last amended by Chapter 232, Laws of Utah 2004
                 
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 59-23-3 is amended to read:
                       59-23-3. Definitions.
                      As used in this chapter:
                      (1) "Alternate royalty rate" means $550,000 divided by the gross volume of unprocessed
                  brine shrimp eggs harvested in the state during the tax year.
                      [(1)] (2) "Brine shrimp eggs" means dormant, early stage brine shrimp embryos
                  encapsulated as cysts that are harvested from the waters of the state.
                      [(2)] (3) "[Taxable] Tax year" means a one-year period beginning on February 1 and
                  ending on January 31 of the following year.
                      Section 2. Section 59-23-4 is amended to read:
                       59-23-4. Brine shrimp royalty -- Royalty rate -- Commission prepare billing
                  statement -- Deposit of revenue.
                      [(1) (a) Except as provided in Subsection (1)(b) and subject to the other provisions of
                  this section, for taxable years beginning on or after February 1, 2004, there is imposed a brine
                  shrimp royalty of $550,000 each taxable year for the harvest of unprocessed brine shrimp eggs.]
                      [(b) If no unprocessed brine shrimp eggs are harvested during a taxable year, a brine
                  shrimp royalty is not imposed under Subsection (1)(a).]
                      [(2) (a) (i) A person that harvests unprocessed brine shrimp eggs shall pay a proportional
                  amount of the annual brine shrimp royalty imposed under Subsection (1) based on the total
                  volume of unprocessed brine shrimp eggs harvested by all persons harvesting brine shrimp eggs
                  during that taxable year.]


                      [(ii) The commission shall determine the royalty rate for a taxable year by dividing the
                  total annual royalty amount under Subsection (1) by the total gross volume of unprocessed brine
                  shrimp eggs harvested during that taxable year.]
                      [(iii) The royalty amount due from a person for a taxable year is the annual royalty rate
                  calculated under Subsection (2)(a)(ii) multiplied by the gross volume of unprocessed brine
                  shrimp eggs harvested by that person for that taxable year.]
                      (1) (a) Beginning on February 1, 2004, and ending on January 31, 2006, there is imposed
                  for each tax year a brine shrimp royalty of the lesser of:
                      (i) 3.75 cents multiplied by the total pounds of unprocessed brine shrimp eggs that are
                  harvested in the state during the tax year; or
                      (ii) $550,000.
                      (b) Beginning on February 1, 2006, there is imposed for each tax year a brine shrimp
                  royalty of 3.75 cents multiplied by the pounds of unprocessed brine shrimp eggs that are
                  harvested in the state during the tax year.
                      (2) Beginning on February 1, 2004, and ending on January 31, 2006, the royalty amount
                  due from a person for each tax year is:
                      (a) if the brine shrimp royalty for the tax year is as described in Subsection (1)(a)(i), the
                  gross volume of unprocessed brine shrimp eggs harvested in the state by that person during that
                  tax year multiplied by 3.75 cents; or
                      (b) if the brine shrimp royalty for the tax year is $550,000, the gross volume of
                  unprocessed brine shrimp eggs harvested in the state by that person for that tax year multiplied
                  by the alternate royalty rate.
                      (3) Beginning on February 1, 2006, the royalty amount due from a person for a tax year
                  is the gross volume of unprocessed brine shrimp eggs harvested in the state by that person during
                  that tax year multiplied by 3.75 cents.
                      [(b)] (4) (a) A person that harvests unprocessed brine shrimp eggs shall report to the
                  Department of Natural Resources the total gross volume of unprocessed brine shrimp eggs
                  harvested by that person for that [taxable] tax year on or before the February 15 immediately


                  following the last day of that [taxable] tax year.
                      [(c)] (b) The Department of Natural Resources shall provide the following information to
                  the commission on or before the March 1 immediately following the last day of a [taxable] tax
                  year:
                      (i) the total gross volume of unprocessed brine shrimp eggs harvested for that [taxable]
                  tax year; and
                      (ii) for each person that harvested brine shrimp eggs for that [taxable] tax year:
                      (A) the gross volume of unprocessed brine shrimp eggs harvested by that person for that
                  [taxable] tax year; and
                      (B) a current billing address for that person; and
                      (iii) any additional information required by the commission.
                      [(d)] (c) (i) The commission shall prepare and mail a billing statement to each person that
                  harvested unprocessed brine shrimp eggs by the March 30 immediately following the last day of
                  a [taxable] tax year.
                      (ii) The billing statement under Subsection [(2)(d)] (4)(c)(i) shall specify:
                      (A) the gross volume of unprocessed brine shrimp eggs harvested by that person for that
                  [taxable] tax year;
                      (B) the amount of brine shrimp royalty that the person owes; and
                      (C) the date that the brine shrimp royalty payment is due as provided in Section 59-23-5 .
                      [(e)] (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
                  the commission may make rules prescribing the information required under Subsection [(2)(c)]
                  (4)(b)(iii).
                      [(3)] (5) All revenue generated by the brine shrimp royalty shall be deposited in the
                  Species Protection Account created in Section 63-34-14 .
                      [(4)] (6) Beginning with the 2004 interim, the Revenue and Taxation Interim Committee:
                      (a) shall review the annual brine shrimp royalty amount imposed under this section one
                  or more times every five years;
                      (b) shall determine on or before the November interim meeting of the year in which the


                  Revenue and Taxation Interim Committee reviews the annual brine shrimp royalty amount
                  imposed under this section whether the royalty amount should be:
                      (i) continued;
                      (ii) modified; or
                      (iii) repealed; and
                      (c) may review any other issue related to the brine shrimp royalty imposed under this part
                  as determined by the Revenue and Taxation Interim Committee.
                      Section 3. Section 59-23-5 is amended to read:
                       59-23-5. Payment of the brine shrimp royalty.
                      (1) The brine shrimp royalty shall be paid to the commission by the person who harvests
                  the unprocessed brine shrimp eggs.
                      (2) The payment shall be accompanied by the billing statement prepared by the
                  commission in accordance with Section 59-23-4 .
                      (3) The royalty is due on the April 30 immediately following the last day of the [taxable]
                  tax year.
                      Section 4. Effective date.
                      If approved by two-thirds of all the members elected to each house, this bill takes effect
                  upon approval by the governor, or the day following the constitutional time limit of Utah
                  Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
                  date of veto override.
                      Section 5. Retrospective operation.
                      This bill has retrospective operation to February 1, 2004.


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