S.B. 210 Enrolled

1

AMENDMENTS TO PROPERTY TAX
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Curtis S. Bramble
5 House Sponsor: John Dougall
6
7 LONG TITLE
8 General Description:
9 This bill amends provisions in the Property Tax Act related to the fair market value
10 assessment of aircraft.
11 Highlighted Provisions:
12 This bill:
13 . provides a method for determining the fair market value of centrally assessed
14 aircraft; and
15 . makes technical changes.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 This bill has retrospective operation for a taxable year beginning on or after January 1,
20 2009.
21 Utah Code Sections Affected:
22 AMENDS:
23 59-2-201, as last amended by Laws of Utah 2007, Chapters 119 and 306
24
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 59-2-201 is amended to read:
27 59-2-201. Assessment by commission -- Determination of value of mining
28 property -- Notification of assessment -- Local assessment of property assessed by the
29 unitary method.

30 (1) By May 1 of each year the following property, unless otherwise exempt under the
31 Utah Constitution or under Part 11, Exemptions, Deferrals, and Abatements, shall be assessed
32 by the commission at 100% of fair market value, as valued on January 1, in accordance with
33 this chapter:
34 (a) except as provided in Subsection (2), all property which operates as a unit across
35 county lines, if the values must be apportioned among more than one county or state;
36 (b) all property of public utilities;
37 (c) all operating property of an airline, air charter service, and air contract service;
38 (d) all geothermal fluids and geothermal resources;
39 (e) all mines and mining claims except in cases, as determined by the commission,
40 where the mining claims are used for other than mining purposes, in which case the value of
41 mining claims used for other than mining purposes shall be assessed by the assessor of the
42 county in which the mining claims are located; and
43 (f) all machinery used in mining, all property or surface improvements upon or
44 appurtenant to mines or mining claims. For the purposes of assessment and taxation, all
45 processing plants, mills, reduction works, and smelters which are primarily used by the owner
46 of a mine or mining claim for processing, reducing, or smelting minerals taken from a mine or
47 mining claim shall be considered appurtenant to that mine or mining claim, regardless of
48 actual location.
49 (2) The commission shall assess and collect property tax on state-assessed commercial
50 vehicles at the time of original registration or annual renewal.
51 (a) The commission shall assess and collect property tax annually on state-assessed
52 commercial vehicles which are registered pursuant to Section 41-1a-222 or 41-1a-228 .
53 (b) State-assessed commercial vehicles brought into the state which are required to be
54 registered in Utah shall, as a condition of registration, be subject to ad valorem tax unless all
55 property taxes or fees imposed by the state of origin have been paid for the current calendar
56 year.
57 (c) Real property, improvements, equipment, fixtures, or other personal property in

58 this state owned by the company shall be assessed separately by the local county assessor.
59 (d) The commission shall adjust the value of state-assessed commercial vehicles as
60 necessary to comply with 49 U.S.C. Sec. 14502, and the commission shall direct the county
61 assessor to apply the same adjustment to any personal property, real property, or improvements
62 owned by the company and used directly and exclusively in their commercial vehicle
63 activities.
64 (3) The method for determining the fair market value of productive mining property is
65 the capitalized net revenue method or any other valuation method the commission believes, or
66 the taxpayer demonstrates to the commission's satisfaction, to be reasonably determinative of
67 the fair market value of the mining property. The rate of capitalization applicable to mines
68 shall be determined by the commission, consistent with a fair rate of return expected by an
69 investor in light of that industry's current market, financial, and economic conditions. In no
70 event may the fair market value of the mining property be less than the fair market value of the
71 land, improvements, and tangible personal property upon or appurtenant to the mining
72 property.
73 (4) Immediately following the assessment, the owner or operator of the assessed
74 property shall be notified of the assessment by certified mail. The assessor of the county in
75 which the property is located shall also be immediately notified of the assessment by certified
76 mail.
77 (5) Property assessed by the unitary method, which is not necessary to the conduct and
78 does not contribute to the income of the business as determined by the commission, shall be
79 assessed separately by the local county assessor.
80 (6) (a) Except as provided in Subsection (6)(b), for calendar years beginning on or
81 after January 1, 2009 and ending on or before December 31, 2010, the method for determining
82 the fair market value of an aircraft, aircraft type, or mobile flight equipment assessed under
83 this part is equal to:
84 (i) the value referenced in the Used Price for Avg Acft Wholesale column of the
85 Airliner Price Guide by make, model, series, and year of manufacture; minus

86 (ii) 20% of the value described in Subsection (6)(a)(i).
87 (b) Notwithstanding Subsection (6)(a), for calendar years beginning on or after
88 January 1, 2009 and ending on or before December 1, 2010, the method for determining the
89 fair market value of an aircraft not listed in the Airliner Price Guide is equal to:
90 (i) the value references in the Average Wholesale column of the Aircraft Bluebook
91 Price Digest by make, model, series, and year of manufacture; minus
92 (ii) 20% of the value described in Subsection (6)(b)(i).
93 Section 2. Retrospective operation.
94 This bill has retrospective operation for a taxable year beginning on or after January 1,
95 2009.