7 LONG TITLE
8 General Description:
9 This bill modifies provisions of the Property Tax Act relating to subdivided lots.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ addresses the payment of property tax on a base parcel that is subdivided into one or
14 more parcels;
15 ▸ modifies the requirements for a notice of property tax delinquency;
16 ▸ describes the procedure by which an owner of a portion of a base parcel whose
17 property tax is delinquent may redeem the owner's portion of the base parcel; and
18 ▸ makes technical and conforming changes.
19 Money Appropriated in this Bill:
21 Other Special Clauses:
23 Utah Code Sections Affected:
25 59-2-102, as last amended by Laws of Utah 2015, Chapters 133, 198, and 287
26 59-2-1332.5, as last amended by Laws of Utah 2015, Chapter 201
27 59-2-1346, as last amended by Laws of Utah 1995, Chapter 181
28 59-7-302, as last amended by Laws of Utah 2014, Chapters 65 and 398
30 59-2-1331.5, Utah Code Annotated 1953
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 59-2-102 is amended to read:
34 59-2-102. Definitions.
35 As used in this chapter and title:
36 (1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
37 engaging in dispensing activities directly affecting agriculture or horticulture with an
38 airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
39 rotorcraft's use for agricultural and pest control purposes.
40 (2) "Air charter service" means an air carrier operation which requires the customer to
41 hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
43 (3) "Air contract service" means an air carrier operation available only to customers
44 who engage the services of the carrier through a contractual agreement and excess capacity on
45 any trip and is not available to the public at large.
46 (4) "Aircraft" is as defined in Section 72-10-102.
47 (5) (a) Except as provided in Subsection (5)(b), "airline" means an air carrier that:
48 (i) operates:
49 (A) on an interstate route; and
50 (B) on a scheduled basis; and
51 (ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
52 regularly scheduled route.
53 (b) "Airline" does not include an:
54 (i) air charter service; or
55 (ii) air contract service.
56 (6) "Assessment roll" means a permanent record of the assessment of property as
57 assessed by the county assessor and the commission and may be maintained manually or as a
58 computerized file as a consolidated record or as multiple records by type, classification, or
60 (7) "Base parcel" means a parcel of property that was legally:
61 (a) subdivided into two or more lots, parcels, or other divisions of land; or
62 (b) (i) combined with one or more other parcels of property; and
63 (ii) subdivided into two or more lots, parcels, or other divisions of land.
65 of ad valorem property tax revenue equal to the sum of:
66 (i) the amount of ad valorem property tax revenue to be generated statewide in the
67 previous year from imposing a school minimum basic tax rate, as specified in Section
68 53A-17a-135, or multicounty assessing and collecting levy, as specified in Section 59-2-1602;
70 (ii) the product of:
71 (A) new growth, as defined in:
72 (I) Section 59-2-924; and
73 (II) rules of the commission; and
74 (B) the school minimum basic tax rate or multicounty assessing and collecting levy
75 certified by the commission for the previous year.
76 (b) For purposes of this Subsection [
77 not include property tax revenue received by a taxing entity from personal property that is:
78 (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
79 (ii) semiconductor manufacturing equipment.
80 (c) For purposes of calculating the certified revenue levy described in this Subsection
82 (i) the taxable value of real property assessed by a county assessor contained on the
83 assessment roll;
84 (ii) the taxable value of real and personal property assessed by the commission; and
85 (iii) the taxable year end value of personal property assessed by a county assessor
86 contained on the prior year's assessment roll.
88 (a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
89 Section 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or
90 property in furtherance of the owner's commercial enterprise;
91 (b) any passenger vehicle owned by a business and used by its employees for
92 transportation as a company car or vanpool vehicle; and
93 (c) vehicles that are:
94 (i) especially constructed for towing or wrecking, and that are not otherwise used to
95 transport goods, merchandise, or people for compensation;
96 (ii) used or licensed as taxicabs or limousines;
97 (iii) used as rental passenger cars, travel trailers, or motor homes;
98 (iv) used or licensed in this state for use as ambulances or hearses;
99 (v) especially designed and used for garbage and rubbish collection; or
100 (vi) used exclusively to transport students or their instructors to or from any private,
101 public, or religious school or school activities.
103 59-2-801, "designated tax area" means a tax area created by the overlapping boundaries of only
104 the following taxing entities:
105 (i) a county; and
106 (ii) a school district.
107 (b) Notwithstanding Subsection [
108 created by the overlapping boundaries of:
109 (i) the taxing entities described in Subsection [
110 (ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
111 and the boundaries of the city or town are identical; or
112 (B) a special service district if the boundaries of the school district under Subsection
115 under Section 59-2-1330:
116 (a) that became a final and unappealable judgment or order no more than 14 months
117 prior to the day on which the notice required by Section 59-2-919.1 is required to be mailed;
119 (b) for which a taxing entity's share of the final and unappealable judgment or order is
120 greater than or equal to the lesser of:
121 (i) $5,000; or
122 (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
123 previous fiscal year.
125 improvements to the property, subject to taxation and is:
126 (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
127 to the wrong taxpayer by the assessing authority;
128 (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
129 comply with the reporting requirements of this chapter; or
130 (iii) undervalued because of errors made by the assessing authority based upon
131 incomplete or erroneous information furnished by the taxpayer.
132 (b) Property that is undervalued because of the use of a different valuation
133 methodology or because of a different application of the same valuation methodology is not
134 "escaped property."
136 hands between a willing buyer and a willing seller, neither being under any compulsion to buy
137 or sell and both having reasonable knowledge of the relevant facts. For purposes of taxation,
138 "fair market value" shall be determined using the current zoning laws applicable to the property
139 in question, except in cases where there is a reasonable probability of a change in the zoning
140 laws affecting that property in the tax year in question and the change would have an
141 appreciable influence upon the value.
143 under Section 59-2-1101, means tractors, milking equipment and storage and cooling facilities,
144 feed handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters,
145 tillage tools, scales, combines, spreaders, sprayers, haying equipment, including balers and
146 cubers, and any other machinery or equipment used primarily for agricultural purposes; but
147 does not include vehicles required to be registered with the Motor Vehicle Division or vehicles
148 or other equipment used for business purposes other than farming.
150 120 degrees centigrade naturally present in a geothermal system.
152 (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
154 (b) the energy, in whatever form, including pressure, present in, resulting from, created
155 by, or which may be extracted from that natural heat, directly or through a material medium.
157 (i) acquired goodwill that is reported as goodwill on the books and records:
158 (A) of a taxpayer; and
159 (B) that are maintained for financial reporting purposes; or
160 (ii) the ability of a business to:
161 (A) generate income:
162 (I) that exceeds a normal rate of return on assets; and
163 (II) resulting from a factor described in Subsection [
164 (B) obtain an economic or competitive advantage resulting from a factor described in
165 Subsection [
166 (b) The following factors apply to Subsection [
167 (i) superior management skills;
168 (ii) reputation;
169 (iii) customer relationships;
170 (iv) patronage; or
171 (v) a factor similar to Subsections [
172 (c) "Goodwill" does not include:
173 (i) the intangible property described in Subsection [
174 (ii) locational attributes of real property, including:
175 (A) zoning;
176 (B) location;
177 (C) view;
178 (D) a geographic feature;
179 (E) an easement;
180 (F) a covenant;
181 (G) proximity to raw materials;
182 (H) the condition of surrounding property; or
183 (I) proximity to markets;
184 (iii) value attributable to the identification of an improvement to real property,
186 (A) reputation of the designer, builder, or architect of the improvement;
187 (B) a name given to, or associated with, the improvement; or
188 (C) the historic significance of an improvement; or
189 (iv) the enhancement or assemblage value specifically attributable to the interrelation
190 of the existing tangible property in place working together as a unit.
192 (a) for a county, city, or town, the legislative body of the county, city, or town;
193 (b) for a local district under Title 17B, Limited Purpose Local Government Entities -
194 Local Districts, the local district's board of trustees;
195 (c) for a school district, the local board of education; or
196 (d) for a special service district under Title 17D, Chapter 1, Special Service District
198 (i) the legislative body of the county or municipality that created the special service
199 district, to the extent that the county or municipal legislative body has not delegated authority
200 to an administrative control board established under Section 17D-1-301; or
201 (ii) the administrative control board, to the extent that the county or municipal
202 legislative body has delegated authority to an administrative control board established under
203 Section 17D-1-301.
205 (i) "household" means the association of persons who live in the same dwelling,
206 sharing its furnishings, facilities, accommodations, and expenses; and
207 (ii) "household" includes married individuals, who are not legally separated, that have
208 established domiciles at separate locations within the state.
209 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
210 commission may make rules defining the term "domicile."
212 building, structure, fixture, fence, or other item that is permanently attached to land, regardless
213 of whether the title has been acquired to the land, if:
214 (i) (A) attachment to land is essential to the operation or use of the item; and
215 (B) the manner of attachment to land suggests that the item will remain attached to the
216 land in the same place over the useful life of the item; or
217 (ii) removal of the item would:
218 (A) cause substantial damage to the item; or
219 (B) require substantial alteration or repair of a structure to which the item is attached.
220 (b) "Improvement" includes:
221 (i) an accessory to an item described in Subsection [
222 (A) essential to the operation of the item described in Subsection [
223 (B) installed solely to serve the operation of the item described in Subsection [
224 (20)(a); and
225 (ii) an item described in Subsection [
226 (A) is temporarily detached from the land for repairs; and
227 (B) remains located on the land.
228 (c) Notwithstanding Subsections [
230 (i) an item considered to be personal property pursuant to rules made in accordance
231 with Section 59-2-107;
232 (ii) a moveable item that is attached to land:
233 (A) for stability only; or
234 (B) for an obvious temporary purpose;
235 (iii) (A) manufacturing equipment and machinery; or
236 (B) essential accessories to manufacturing equipment and machinery;
237 (iv) an item attached to the land in a manner that facilitates removal without substantial
238 damage to:
239 (A) the land; or
240 (B) the item; or
241 (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
242 transportable factory-built housing unit is considered to be personal property under Section
245 (a) property that is capable of private ownership separate from tangible property,
247 (i) money;
248 (ii) credits;
249 (iii) bonds;
250 (iv) stocks;
251 (v) representative property;
252 (vi) franchises;
253 (vii) licenses;
254 (viii) trade names;
255 (ix) copyrights; and
256 (x) patents;
257 (b) a low-income housing tax credit;
258 (c) goodwill; or
259 (d) a renewable energy tax credit or incentive, including:
260 (i) a federal renewable energy production tax credit under Section 45, Internal Revenue
262 (ii) a federal energy credit for qualified renewable electricity production facilities under
263 Section 48, Internal Revenue Code;
264 (iii) a federal grant for a renewable energy property under American Recovery and
265 Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
266 (iv) a tax credit under Subsection 59-7-614(5).
268 (a) a domestic animal;
269 (b) a fish;
270 (c) a fur-bearing animal;
271 (d) a honeybee; or
272 (e) poultry.
274 (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
276 (b) a low-income housing tax credit under:
277 (i) Section 59-7-607; or
278 (ii) Section 59-10-1010.
282 valuable mineral.
284 or otherwise removing a mineral from a mine.
286 (i) owned or operated by an:
287 (A) air charter service;
288 (B) air contract service; or
289 (C) airline; and
290 (ii) (A) capable of flight;
291 (B) attached to an aircraft that is capable of flight; or
292 (C) contained in an aircraft that is capable of flight if the tangible personal property is
293 intended to be used:
294 (I) during multiple flights;
295 (II) during a takeoff, flight, or landing; and
296 (III) as a service provided by an air charter service, air contract service, or airline.
297 (b) (i) "Mobile flight equipment" does not include a spare part other than a spare
298 engine that is rotated:
299 (A) at regular intervals; and
300 (B) with an engine that is attached to the aircraft.
301 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
302 commission may make rules defining the term "regular intervals."
304 salts, sand, rock, gravel, and all carboniferous materials.
306 property on January 1 of a calendar year but becomes residential property after January 1 of the
307 calendar year.
309 (a) every class of property as defined in Subsection [
310 ownership and not included within the meaning of the terms "real estate" and "improvements";
311 (b) gas and water mains and pipes laid in roads, streets, or alleys;
312 (c) bridges and ferries;
313 (d) livestock; and
314 (e) outdoor advertising structures as defined in Section 72-7-502.
316 according to its value.
317 (b) "Property" does not include intangible property as defined in this section.
319 of a railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
320 company, electrical corporation, telephone corporation, sewerage corporation, or heat
321 corporation where the company performs the service for, or delivers the commodity to, the
322 public generally or companies serving the public generally, or in the case of a gas corporation
323 or an electrical corporation, where the gas or electricity is sold or furnished to any member or
324 consumers within the state for domestic, commercial, or industrial use. Public utility also
325 means the operating property of any entity or person defined under Section 54-2-1 except water
328 residential rental personal property" means household furnishings, furniture, and equipment
330 (i) are used exclusively within a dwelling unit that is the primary residence of a tenant;
331 (ii) are owned by the owner of the dwelling unit that is the primary residence of a
332 tenant; and
333 (iii) after applying the residential exemption described in Section 59-2-103, are exempt
334 from taxation under this chapter in accordance with Subsection 59-2-1115(2).
335 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
336 commission may by rule define the term "dwelling unit" for purposes of this Subsection [
337 (33) and Subsection [
339 (a) the possession of, claim to, ownership of, or right to the possession of land;
340 (b) all mines, minerals, and quarries in and under the land, all timber belonging to
341 individuals or corporations growing or being on the lands of this state or the United States, and
342 all rights and privileges appertaining to these; and
343 (c) improvements.
345 relationship described in Subsection 267(b), Internal Revenue Code:
346 (a) except that notwithstanding Subsection 267(b), Internal Revenue Code, the term
347 25% shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code; and
348 (b) using the ownership rules of Subsection 267(c), Internal Revenue Code, for
349 determining the ownership of stock.
351 purposes of the reductions and adjustments under this chapter, means any property used for
352 residential purposes as a primary residence.
353 (b) Subject to Subsection [
354 (i) except as provided in Subsection [
355 furniture, and equipment if the household furnishings, furniture, and equipment are:
356 (A) used exclusively within a dwelling unit that is the primary residence of a tenant;
358 (B) owned by the owner of the dwelling unit that is the primary residence of a tenant;
360 (ii) does not include property used for transient residential use.
361 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
362 commission may by rule define the term "dwelling unit" for purposes of Subsection [
363 and this Subsection [
365 (a) has a legal right to extract a mineral from property;
366 (b) does not hold more than a 25% interest in:
367 (i) the land surface rights of the property where the wellhead is located; or
368 (ii) an entity with an ownership interest in the land surface rights of the property where
369 the wellhead is located;
370 (c) is not an entity in which the owner of the land surface rights of the property where
371 the wellhead is located holds more than a 25% interest; and
372 (d) does not have a relationship with an owner of the land surface rights of the property
373 where the wellhead is located.
375 (i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
376 to transport passengers, freight, merchandise, or other property for hire; or
377 (ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
378 transports the vehicle owner's goods or property in furtherance of the owner's commercial
380 (b) "State-assessed commercial vehicle" does not include vehicles used for hire which
381 are specified in Subsection [
382 (39) "Subdivided lot" means a lot, parcel, or other division of land, that is a division of
383 a base parcel.
385 allowed for residential property under Section 59-2-103.
387 of one or more taxing entities.
389 district, local district under Title 17B, Limited Purpose Local Government Entities - Local
390 Districts, or other political subdivision of the state with the authority to levy a tax on property.
392 extended on the assessment roll and may be maintained on the same record or records as the
393 assessment roll or may be maintained on a separate record properly indexed to the assessment
394 roll. It includes tax books, tax lists, and other similar materials.
395 Section 2. Section 59-2-1331.5 is enacted to read:
396 59-2-1331.5. Partial payment of property tax on a base parcel.
397 (1) (a) Subject to Subsection (1)(b), a person may make a payment toward a subdivided
398 lot's proportional share of the property tax on the base parcel before the date on which the
399 property tax is due.
400 (b) A person may make a payment under Subsection (1)(a) only if the record owner of
401 the subdivided lot is a bona fide purchaser.
402 (2) (a) Upon request, the county treasurer shall provide a person:
403 (i) the amount of a subdivided lot's proportional share of the property tax on the base
404 parcel for the current year; or
405 (ii) if the amount described in Subsection (2)(a)(i) is unavailable, a reasonable estimate
406 of a subdivided lot's proportional share of the property tax on the base parcel for the current
408 (b) The county treasurer shall calculate a subdivided lot's proportional share of the
409 property tax on the base parcel by comparing:
410 (i) the amount of the value of the base parcel as described in Subsection (2)(b)(ii) that
411 is attributable to the property that comprises the subdivided lot as the property existed on
412 January 1 of the current year; and
413 (ii) the value of the base parcel as it existed on January 1 of the current year.
414 (3) (a) The county treasurer shall send a written notice described in Subsection (3)(b)
415 to the record owner of a subdivided lot if:
416 (i) a person makes a payment under Subsection (1) toward the subdivided lot's
417 proportional share of the property tax on the base parcel; and
418 (ii) as of November 30, there is an outstanding balance on the subdivided lot's
419 proportional share of the property tax on the base parcel.
420 (b) A written notice described in Subsection (3)(a) shall state:
421 (i) the remaining balance owed on the subdivided lot's proportional share of the
422 property tax on the base parcel;
423 (ii) a date, not less than 30 days after the day on which the notice is sent, by which the
424 remaining balance is due; and
425 (iii) that any amount of the balance that is not paid or postmarked by the date described
426 in Subsection (3)(b)(ii) is delinquent and subject to the penalties, interest, and administrative
427 costs described in this chapter.
428 (4) If a person timely pays a subdivided lot's proportional share of the property tax on
429 the base parcel, and the property tax on the base parcel subsequently becomes delinquent, the
430 subdivided lot is not subject to:
431 (a) a lien for the payment of the delinquent property tax on the base parcel; or
432 (b) any penalties, interest, or administrative costs associated with the delinquent
433 property tax on the base parcel.
434 Section 3. Section 59-2-1332.5 is amended to read:
435 59-2-1332.5. Mailing notice of delinquency or publication of delinquent list --
436 Contents -- Notice -- Definitions.
437 (1) The county treasurer shall provide notice of delinquency in the payment of property
439 (a) except as provided in Subsection (4), on or before December 31 of each calendar
440 year; and
441 (b) in a manner described in Subsection (2).
442 (2) A notice of delinquency in the payment of property taxes shall be provided by:
443 (a) (i) mailing a written notice that includes the information described in Subsection
444 (3)(a), postage prepaid, to:
445 (A) [
446 (B) [
447 property taxes are assessed on a base parcel, the record owner of each subdivided lot; and
448 (ii) making available to the public a list of delinquencies in the payment of property
450 (A) by electronic means; and
451 (B) that includes the information required by Subsection (3)(b); or
452 (b) publishing a list of delinquencies in the payment of property taxes:
453 (i) in one issue of a newspaper having general circulation in the county;
454 (ii) that lists each delinquency in alphabetical order by:
455 (A) the last name of the delinquent taxpayer; or
456 (B) if the delinquent taxpayer is a business entity, the name of the business entity; and
457 (iii) that includes the information [
458 (3) (a) A written notice of delinquency in the payment of property taxes described in
459 Subsection (2)(a)(i) shall include:
460 (i) a statement that delinquent taxes are due;
461 (ii) the amount of delinquent taxes due, not including any penalties imposed in
462 accordance with this chapter;
463 (iii) (A) the name of the delinquent taxpayer; or
464 (B) if the delinquent taxpayer is a business entity, the name of the business entity;
465 (iv) (A) a description of the delinquent property; or
466 (B) the property identification number of the delinquent property;
467 (v) a statement that a penalty shall be imposed in accordance with this chapter; and
468 (vi) a statement that interest accrues as of January 1 following the date of the
469 delinquency unless on or before January 31 the following are paid:
470 (A) the delinquent taxes; and
471 (B) the penalty.
472 (b) The list of delinquencies described in Subsection (2)(a)(ii) or (2)(b) shall include:
473 (i) the amount of delinquent taxes due, not including any penalties imposed in
474 accordance with this chapter;
475 (ii) (A) the name of the delinquent taxpayer; or
476 (B) if the delinquent taxpayer is a business entity, the name of the business entity;
477 (iii) (A) a description of the delinquent property; or
478 (B) the property identification number of the delinquent property;
479 (iv) a statement that a penalty shall be imposed in accordance with this chapter; and
480 (v) a statement that interest accrues as of January 1 following the date of the
481 delinquency unless on or before January 31 the following are paid:
482 (A) the delinquent taxes; and
483 (B) the penalty.
484 (4) Notwithstanding Subsection (1)(a), if the county legislative body extends the
485 property tax due date under Subsection 59-2-1332(1), the notice of delinquency in the payment
486 of property taxes shall be provided on or before January 10.
487 (5) (a) In addition to the notice of delinquency in the payment of property taxes
488 required by Subsection (1), a county treasurer may in accordance with this Subsection (5) mail
489 a notice that property taxes are delinquent:
490 (i) to:
491 (A) a delinquent taxpayer;
492 (B) an owner of record of the delinquent property;
493 (C) any other interested party that requests notice; or
494 (D) a combination of Subsections (5)(a)(i)(A) through (C); and
495 (ii) at any time that the county treasurer considers appropriate.
496 (b) A notice mailed in accordance with this Subsection (5):
497 (i) shall include the information required by Subsection (3)(a); and
498 (ii) may include any information that the county treasurer finds is useful to the owner
499 of record of the delinquent property in determining:
500 (A) the status of taxes owed on the delinquent property;
501 (B) any penalty that is owed on the delinquent property;
502 (C) any interest charged under Section 59-2-1331 on the delinquent property; or
503 (D) any related matters concerning the delinquent property.
504 (6) As used in this section, "business entity" means:
505 (a) an association;
506 (b) a corporation;
507 (c) a limited liability company;
508 (d) a partnership;
509 (e) a trust; or
510 (f) a business entity similar to Subsections (6)(a) through (e).
511 Section 4. Section 59-2-1346 is amended to read:
512 59-2-1346. Redemption -- Time allowed.
513 (1) [
514 time [
515 59-2-1351 following the lapse of four years from the date the property tax became delinquent.
517 delinquent taxes, interest, penalties, and administrative costs that have accrued on the property.
518 (3) (a) Subject to Subsection (3)(d), a person may redeem a subdivided lot by paying
519 the county treasurer the subdivided lot's proportional share of the delinquent taxes, interest,
520 penalties, and administrative costs accrued on the base parcel, calculated in accordance with
521 Subsection (3)(b).
522 (b) The county treasurer shall calculate the amount described in Subsection (3)(a) by
524 (i) the amount of the value of the base parcel as described in Subsection (3)(b)(ii) that
525 is attributable to the property that comprises the subdivided lot as the property existed on
526 January 1 of the year in which the delinquent property taxes on the base parcel were assessed;
528 (ii) the value of the base parcel as it existed on January 1 of the year in which the
529 delinquent property taxes on the base parcel were assessed.
530 (c) If the county treasurer does not have sufficient information to calculate the amount
531 described in Subsection (3)(a)(i), upon request from the county treasurer, the county assessor
532 shall provide the county treasurer any information necessary to calculate the amount described
533 in Subsection (3)(a)(i).
534 (d) A person may redeem a subdivided lot under this Subsection (3) only if the record
535 owner of the subdivided lot is a bona fide purchaser.
537 county treasurer shall accept and credit on account for the redemption of property, payments in
538 amounts of not less than $10, except for the final payment, which may be in any amount. For
539 the purpose of computing the amount required for redemption and for the purpose of
540 distributing the payments received on account, all payments shall be applied in the following
542 (a) against the interest and administrative costs accrued on the delinquent tax for the
543 last year included in the delinquent account at the time of payment;
544 (b) against the penalty charged on the delinquent tax for the last year included in the
545 delinquent account at the time of payment;
546 (c) against the delinquent tax for the last year included in the delinquent account at the
547 time of payment;
548 (d) against the interest and administrative costs accrued on the delinquent tax for the
549 next to last year included in the delinquent account at the time of payment;
550 (e) and so on until the full amount of the delinquent taxes, penalties, administrative
551 costs, and interest on the unpaid balances are paid within the period of redemption.
552 Section 5. Section 59-7-302 is amended to read:
553 59-7-302. Definitions -- Determination of when a taxpayer is considered to be a
554 sales factor weighted taxpayer.
555 (1) As used in this part, unless the context otherwise requires:
556 (a) "Aircraft type" means a particular model of aircraft as designated by the
557 manufacturer of the aircraft.
558 (b) "Airline" [
559 (c) "Airline revenue ton miles" means, for an airline, the total revenue ton miles during
560 the airline's tax period.
561 (d) "Business income" means income arising from transactions and activity in the
562 regular course of the taxpayer's trade or business and includes income from tangible and
563 intangible property if the acquisition, management, and disposition of the property constitutes
564 integral parts of the taxpayer's regular trade or business operations.
565 (e) "Commercial domicile" means the principal place from which the trade or business
566 of the taxpayer is directed or managed.
567 (f) "Compensation" means wages, salaries, commissions, and any other form of
568 remuneration paid to employees for personal services.
569 (g) (i) Except as provided in Subsection (1)(g)(ii), "mobile flight equipment" is as
570 defined in Section 59-2-102.
571 (ii) "Mobile flight equipment" does not include:
572 (A) a spare engine; or
573 (B) tangible personal property described in Subsection 59-2-102[
575 (I) air charter service; or
576 (II) air contract service.
577 (h) "Nonbusiness income" means all income other than business income.
578 (i) "Revenue ton miles" is determined in accordance with 14 C.F.R. Part 241.
579 (j) "Sales" means all gross receipts of the taxpayer not allocated under Sections
580 59-7-306 through 59-7-310.
581 (k) Subject to Subsection (2), "sales factor weighted taxpayer" means:
582 (i) for a taxpayer that is not a unitary group, regardless of the number of economic
583 activities the taxpayer performs, a taxpayer having greater than 50% of the taxpayer's total sales
584 everywhere generated by economic activities performed by the taxpayer if the economic
585 activities are classified in a NAICS code of the 2002 or 2007 North American Industry
586 Classification System of the federal Executive Office of the President, Office of Management
587 and Budget, except for:
588 (A) a NAICS code within NAICS Sector 21, Mining;
589 (B) a NAICS code within NAICS Industry Group 2212, Natural Gas Distribution;
590 (C) a NAICS code within NAICS Sector 31-33, Manufacturing;
591 (D) a NAICS code within NAICS Sector 48-49, Transportation and Warehousing;
592 (E) a NAICS code within NAICS Sector 51, Information, except for NAICS Subsector
593 519, Other Information Services; or
594 (F) a NAICS code within NAICS Sector 52, Finance and Insurance; or
595 (ii) for a taxpayer that is a unitary group, a taxpayer having greater than 50% of the
596 taxpayer's total sales everywhere generated by economic activities performed by the taxpayer if
597 the economic activities are classified in a NAICS code of the 2002 or 2007 North American
598 Industry Classification System of the federal Executive Office of the President, Office of
599 Management and Budget, except for:
600 (A) a NAICS code within NAICS Sector 21, Mining;
601 (B) a NAICS code within NAICS Industry Group 2212, Natural Gas Distribution;
602 (C) a NAICS code within NAICS Sector 31-33, Manufacturing;
603 (D) a NAICS code within NAICS Sector 48-49, Transportation and Warehousing;
604 (E) a NAICS code within NAICS Sector 51, Information, except for NAICS Subsector
605 519, Other Information Services; or
606 (F) a NAICS code within NAICS Sector 52, Finance and Insurance.
607 (l) "State" means any state of the United States, the District of Columbia, the
608 Commonwealth of Puerto Rico, any territory or possession of the United States, and any
609 foreign country or political subdivision thereof.
610 (m) "Transportation revenue" means revenue an airline earns from:
611 (i) transporting a passenger or cargo; or
612 (ii) from miscellaneous sales of merchandise as part of providing transportation
614 (n) "Utah revenue ton miles" means, for an airline, the total revenue ton miles within
615 the borders of this state:
616 (i) during the airline's tax period; and
617 (ii) from flight stages that originate or terminate in this state.
618 (2) The following apply to Subsection (1)(k):
619 (a) (i) Subject to the other provisions of this Subsection (2), a taxpayer shall for each
620 taxable year determine whether the taxpayer is a sales factor weighted taxpayer.
621 (ii) A taxpayer shall make the determination required by Subsection (2)(a)(i) before the
622 due date for filing the taxpayer's return under this chapter for the taxable year, including
624 (iii) For purposes of making the determination required by Subsection (2)(a)(i), total
625 sales everywhere include only the total sales everywhere:
626 (A) as determined in accordance with this part; and
627 (B) made during the taxable year for which a taxpayer makes the determination
628 required by Subsection (2)(a)(i).
629 (b) A taxpayer that files a return as a unitary group for a taxable year is considered to
630 be a unitary group for that taxable year.
631 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
632 commission may define the term "economic activity" consistent with the use of the term
633 "activity" in the 2007 North American Industry Classification System of the federal Executive
634 Office of the President, Office of Management and Budget.