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S.B. 210





Chief Sponsor: Curtis S. Bramble

House Sponsor: John Dougall

             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
             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 actual
             48      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 this
             58      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 activities.
             63          (3) The method for determining the fair market value of productive mining property is
             64      the capitalized net revenue method or any other valuation method the commission believes, or
             65      the taxpayer demonstrates to the commission's satisfaction, to be reasonably determinative of
             66      the fair market value of the mining property. The rate of capitalization applicable to mines
             67      shall be determined by the commission, consistent with a fair rate of return expected by an
             68      investor in light of that industry's current market, financial, and economic conditions. In no
             69      event may the fair market value of the mining property be less than the fair market value of the
             70      land, improvements, and tangible personal property upon or appurtenant to the mining
             71      property.
             72          (4) Immediately following the assessment, the owner or operator of the assessed
             73      property shall be notified of the assessment by certified mail. The assessor of the county in
             74      which the property is located shall also be immediately notified of the assessment by certified
             75      mail.
             76          (5) Property assessed by the unitary method, which is not necessary to the conduct and
             77      does not contribute to the income of the business as determined by the commission, shall be
             78      assessed separately by the local county assessor.
             79          (6) For calendar years beginning on or after January 1, 2009 and ending on or before
             80      December 31, 2010, the fair market value of an aircraft assessed under this part is equal to:
             81          (a) the value referenced in the Used Price for Avg Acft Wholesale column of the
             82      Airliner Price Guide by make, model, series, and year of manufacture; minus
             83          (b) 20% of the value described in Subsection (6)(a).
             84          Section 2. Retrospective operation.
             85          This bill has retrospective operation for a taxable year beginning on or after January 1,
             86      2009.

Legislative Review Note
    as of 2-20-09 2:31 PM

Office of Legislative Research and General Counsel

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