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S.B. 135 Enrolled

             1     

EXTENDING THE SALES AND USE TAX

             2     
EXEMPTION FOR POLLUTION CONTROL

             3     
FACILITIES

             4     
2008 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Wayne L. Niederhauser

             7     
House Sponsor: John Dougall

             8     
             9      LONG TITLE
             10      General Description:
             11          This bill extends the sales and use tax exemption for a pollution control facility.
             12      Highlighted Provisions:
             13          This bill:
             14          .    makes the sales and use tax exemption for a pollution control facility permanent; and
             15          .    makes technical changes.
             16      Monies Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          19-2-124, as last amended by Laws of Utah 2003, Chapter 331
             23          19-2-125, as last amended by Laws of Utah 2003, Chapter 331
             24     
             25      Be it enacted by the Legislature of the state of Utah:
             26          Section 1. Section 19-2-124 is amended to read:
             27           19-2-124. Application for certification of pollution control facility -- Refunds --
             28      Interest.
             29          (1) (a) A person who qualifies under Subsection (2) may apply to the board for


             30      certification of a pollution control facility [or facilities] erected, constructed, or installed, or to
             31      be erected, constructed, or installed in the state [on or after July 1, 1986, but on or before June
             32      30, 2009].
             33          (b) The person may file the application [at any time] after:
             34          (i) a firm construction contract has been entered; or
             35          (ii) construction has commenced.
             36          (2) (a) (i) A person who applies under Subsection (1) shall be:
             37          (A) the owner of a trade or business that uses property in the state requiring a pollution
             38      control facility to prevent or minimize pollution; or
             39          (B) a person who, as a lessee or pursuant to an agreement, conducts the trade or
             40      business that operates or uses the property.
             41          (ii) For purposes of this Subsection (2), "owner" includes a contract purchaser.
             42          (b) The facility shall be owned, operated, or leased during a part of the tax year in
             43      which the exemption is claimed.
             44          (c) A person who obtains certification for a pollution control facility may claim an
             45      exemption from sales and use taxes as provided in Sections 19-2-123 and 59-12-104 [only
             46      during the time period beginning on or after July 1, 1986, and ending on or before June 30,
             47      2009].
             48          (d) A person who pays a tax under Title 59, Chapter 12, Sales and Use Tax Act, on a
             49      purchase of tangible personal property or services used in the construction of or incorporated
             50      into a pollution control facility that:
             51          (i) is not certified under Section 19-2-125 , may obtain a refund of the tax if:
             52          (A) the board subsequently certifies the pollution control facility;
             53          (B) the tangible personal property or services meet the requirements for exemption
             54      provided in Subsections 19-2-123 (2) and 59-12-104 (11), except for the certification
             55      requirement; and
             56          (C) the person files a claim for the refund with the State Tax Commission within the
             57      lesser of:


             58          (I) three years after the day on which the pollution control facility is certified under
             59      Section 19-2-125 ; or
             60          (II) six years after the day on which the person pays the tax under Title 59, Chapter 12,
             61      Sales and Use Tax Act; or
             62          (ii) is certified under Section 19-2-125 , may obtain a refund of the tax if:
             63          (A) the tangible personal property or services meet the requirements for exemption
             64      provided in Subsections 19-2-123 (2) and 59-12-104 (11); and
             65          (B) the person files a claim for the refund with the State Tax Commission within three
             66      years after the day on which the person pays the tax under Title 59, Chapter 12, Sales and Use
             67      Tax Act.
             68          (e) (i) If a person files a claim for a refund of taxes under Subsection (2)(d)(i) paid on a
             69      purchase of tangible personal property or services used in the construction of or incorporated
             70      into a pollution control facility that was not certified under Section 19-2-125 at the time of the
             71      purchase:
             72          (A) within 180 days after the day on which the board certifies the pollution control
             73      facility, interest shall accrue to the amount of the refund granted by the State Tax Commission:
             74          (I) at the rate prescribed in Section 59-1-402 ; and
             75          (II) beginning on the day on which the person pays the tax under Title 59, Chapter 12,
             76      Sales and Use Tax Act, for which the person is claiming a refund; or
             77          (B) more than 180 days after the day on which the board certifies the pollution control
             78      facility, interest shall be added to the amount of the refund granted by the State Tax
             79      Commission:
             80          (I) at the rate prescribed in Section 59-1-402 ; and
             81          (II) beginning 30 days after the day on which the person files the claim for a refund
             82      under Subsection (2)(d).
             83          (ii) If a person files a claim for a refund of taxes under Subsection (2)(d)(ii) paid on a
             84      purchase of tangible personal property or services used in the construction of or incorporated
             85      into a pollution control facility that was certified under Section 19-2-125 at the time of the


             86      purchase, interest shall accrue to the amount of the refund granted by the State Tax
             87      Commission:
             88          (A) at the rate prescribed in Section 59-1-402 ; and
             89          (B) beginning 30 days after the day on which the person files a claim for a refund under
             90      Subsection (2)(d).
             91          (3) (a) Each application shall:
             92          (i) be in a format prescribed by the board[,]; and
             93          (ii) contain:
             94          (A) a description of the [facilities] facility and materials incorporated in [them,] the
             95      facility;
             96          (B) the machinery and equipment[,];
             97          (C) the existing or proposed operational procedure[,]; and
             98          (D) a statement of the purpose of pollution prevention, control, or reduction served or
             99      to be served by the facility.
             100          (b) The board may require any further information it finds necessary before issuance of
             101      a certificate.
             102          Section 2. Section 19-2-125 is amended to read:
             103           19-2-125. Action on application for certification.
             104          (1) (a) [If the] The board shall certify the facility if, after consulting with the State Tax
             105      Commission, the board finds that:
             106          (i) a pollution control facility or a part of a pollution control facility, for which
             107      application is made under Section 19-2-124 :
             108          (A) was or is to be erected, constructed, acquired, or installed [on or after July 1, 1986,
             109      but on or before June 30, 2009,]; and
             110          (B) is designed and is being operated or will operate primarily to prevent, control, or
             111      reduce air or water pollution[,]; and [that]
             112          (ii) the applicant qualifies under Section 19-2-124 [, the board shall certify the facility].
             113          (b) If one or more facilities constitute an operational unit, the board may certify those


             114      facilities under one certificate.
             115          (2) (a) The board and the State Tax Commission shall act on an application under
             116      Section 19-2-124 before the 120th day after filing.
             117          (b) Failure of the board and the State Tax Commission to timely act constitutes
             118      automatic acceptance of the application and the board shall furnish a certificate to the applicant
             119      on demand.


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