7 LONG TITLE
8 General Description:
9 This bill provides for the exemption of tangible personal property from property tax,
10 except for certain tangible personal property.
11 Highlighted Provisions:
12 This bill:
13 ▸ provides for the exemption of tangible personal property from property tax, except
14 for certain tangible personal property;
15 ▸ repeals existing provisions relating to the exemption of certain tangible personal
16 property from property tax; and
17 ▸ makes technical and conforming changes.
18 Money Appropriated in this Bill:
20 Other Special Clauses:
21 This bill provides a special effective date.
22 Utah Code Sections Affected:
24 59-2-102, as last amended by Laws of Utah 2018, Chapters 415 and 456
25 59-2-103.5, as last amended by Laws of Utah 2014, Chapter 65
26 59-2-108, as last amended by Laws of Utah 2013, Chapter 248
27 59-2-1115, as last amended by Laws of Utah 2013, Chapters 19 and 147
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 59-2-102 is amended to read:
31 59-2-102. Definitions.
32 As used in this chapter and title:
33 (1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
34 engaging in dispensing activities directly affecting agriculture or horticulture with an
35 airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
36 rotorcraft's use for agricultural and pest control purposes.
37 (2) "Air charter service" means an air carrier operation that requires the customer to
38 hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
40 (3) "Air contract service" means an air carrier operation available only to customers
41 that engage the services of the carrier through a contractual agreement and excess capacity on
42 any trip and is not available to the public at large.
43 (4) "Aircraft" means the same as that term is defined in Section 72-10-102.
44 (5) (a) Except as provided in Subsection (5)(b), "airline" means an air carrier that:
45 (i) operates:
46 (A) on an interstate route; and
47 (B) on a scheduled basis; and
48 (ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
49 regularly scheduled route.
50 (b) "Airline" does not include an:
51 (i) air charter service; or
52 (ii) air contract service.
53 (6) "Assessment roll" means a permanent record of the assessment of property as
54 assessed by the county assessor and the commission and may be maintained manually or as a
55 computerized file as a consolidated record or as multiple records by type, classification, or
57 (7) "Base parcel" means a parcel of property that was legally:
58 (a) subdivided into two or more lots, parcels, or other divisions of land; or
59 (b) (i) combined with one or more other parcels of property; and
60 (ii) subdivided into two or more lots, parcels, or other divisions of land.
61 (8) (a) "Certified revenue levy" means a property tax levy that provides an amount of
62 ad valorem property tax revenue equal to the sum of:
63 (i) the amount of ad valorem property tax revenue to be generated statewide in the
64 previous year from imposing a multicounty assessing and collecting levy, as specified in
65 Section 59-2-1602; and
66 (ii) the product of:
67 (A) eligible new growth, as defined in Section 59-2-924; and
68 (B) the multicounty assessing and collecting levy certified by the commission for the
69 previous year.
70 (b) For purposes of this Subsection (8), "ad valorem property tax revenue" does not
71 include property tax revenue received by a taxing entity from personal property that is:
72 (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
73 (ii) semiconductor manufacturing equipment.
74 (c) For purposes of calculating the certified revenue levy described in this Subsection
75 (8), the commission shall use:
76 (i) the taxable value of real property assessed by a county assessor contained on the
77 assessment roll;
78 (ii) the taxable value of real and personal property assessed by the commission; and
79 (iii) the taxable year end value of personal property assessed by a county assessor
80 contained on the prior year's assessment roll.
81 (9) "County-assessed commercial vehicle" means:
82 (a) any commercial vehicle, trailer, or semitrailer that is not apportioned under Section
83 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or property in
84 furtherance of the owner's commercial enterprise;
85 (b) any passenger vehicle owned by a business and used by its employees for
86 transportation as a company car or vanpool vehicle; and
87 (c) vehicles that are:
88 (i) especially constructed for towing or wrecking, and that are not otherwise used to
89 transport goods, merchandise, or people for compensation;
90 (ii) used or licensed as taxicabs or limousines;
91 (iii) used as rental passenger cars, travel trailers, or motor homes;
92 (iv) used or licensed in this state for use as ambulances or hearses;
93 (v) especially designed and used for garbage and rubbish collection; or
94 (vi) used exclusively to transport students or their instructors to or from any private,
95 public, or religious school or school activities.
96 (10) (a) Except as provided in Subsection (10)(b), for purposes of Section 59-2-801,
97 "designated tax area" means a tax area created by the overlapping boundaries of only the
98 following taxing entities:
99 (i) a county; and
100 (ii) a school district.
101 (b) "Designated tax area" includes a tax area created by the overlapping boundaries of
102 the taxing entities described in Subsection (10)(a) and:
103 (i) a city or town if the boundaries of the school district under Subsection (10)(a) and
104 the boundaries of the city or town are identical; or
105 (ii) a special service district if the boundaries of the school district under Subsection
106 (10)(a) are located entirely within the special service district.
107 (11) "Eligible judgment" means a final and unappealable judgment or order under
108 Section 59-2-1330:
109 (a) that became a final and unappealable judgment or order no more than 14 months
110 before the day on which the notice described in Section 59-2-919.1 is required to be provided;
112 (b) for which a taxing entity's share of the final and unappealable judgment or order is
113 greater than or equal to the lesser of:
114 (i) $5,000; or
115 (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
116 previous fiscal year.
117 (12) (a) "Escaped property" means any property, whether personal, land, or any
118 improvements to the property, that is subject to taxation and is:
119 (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
120 to the wrong taxpayer by the assessing authority;
121 (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
122 comply with the reporting requirements of this chapter; or
123 (iii) undervalued because of errors made by the assessing authority based upon
124 incomplete or erroneous information furnished by the taxpayer.
125 (b) "Escaped property" does not include property that is undervalued because of the use
126 of a different valuation methodology or because of a different application of the same valuation
128 (13) "Fair market value" means the amount at which property would change hands
129 between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
130 and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
131 market value" shall be determined using the current zoning laws applicable to the property in
132 question, except in cases where there is a reasonable probability of a change in the zoning laws
133 affecting that property in the tax year in question and the change would have an appreciable
134 influence upon the value.
135 (14) (a) "Farm machinery and equipment," for purposes of the exemption provided
136 under Section 59-2-1101, means tractors, milking equipment and storage and cooling facilities,
137 feed handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters,
138 tillage tools, scales, combines, spreaders, sprayers, haying equipment, including balers and
139 cubers, and any other machinery or equipment used primarily for agricultural purposes.
140 (b) "Farm machinery and equipment" does not include vehicles required to be
141 registered with the Motor Vehicle Division or vehicles or other equipment used for business
142 purposes other than farming.
143 (15) "Geothermal fluid" means water in any form at temperatures greater than 120
144 degrees centigrade naturally present in a geothermal system.
145 (16) "Geothermal resource" means:
146 (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
148 (b) the energy, in whatever form, including pressure, present in, resulting from, created
149 by, or which may be extracted from that natural heat, directly or through a material medium.
150 (17) (a) "Goodwill" means:
151 (i) acquired goodwill that is reported as goodwill on the books and records that a
152 taxpayer maintains for financial reporting purposes; or
153 (ii) the ability of a business to:
154 (A) generate income that exceeds a normal rate of return on assets and that results from
155 a factor described in Subsection (17)(b); or
156 (B) obtain an economic or competitive advantage resulting from a factor described in
157 Subsection (17)(b).
158 (b) The following factors apply to Subsection (17)(a)(ii):
159 (i) superior management skills;
160 (ii) reputation;
161 (iii) customer relationships;
162 (iv) patronage; or
163 (v) a factor similar to Subsections (17)(b)(i) through (iv).
164 (c) "Goodwill" does not include:
165 (i) the intangible property described in Subsection (21)(a) or (b);
166 (ii) locational attributes of real property, including:
167 (A) zoning;
168 (B) location;
169 (C) view;
170 (D) a geographic feature;
171 (E) an easement;
172 (F) a covenant;
173 (G) proximity to raw materials;
174 (H) the condition of surrounding property; or
175 (I) proximity to markets;
176 (iii) value attributable to the identification of an improvement to real property,
178 (A) reputation of the designer, builder, or architect of the improvement;
179 (B) a name given to, or associated with, the improvement; or
180 (C) the historic significance of an improvement; or
181 (iv) the enhancement or assemblage value specifically attributable to the interrelation
182 of the existing tangible property in place working together as a unit.
183 (18) "Governing body" means:
184 (a) for a county, city, or town, the legislative body of the county, city, or town;
185 (b) for a local district under Title 17B, Limited Purpose Local Government Entities -
186 Local Districts, the local district's board of trustees;
187 (c) for a school district, the local board of education; or
188 (d) for a special service district under Title 17D, Chapter 1, Special Service District
190 (i) the legislative body of the county or municipality that created the special service
191 district, to the extent that the county or municipal legislative body has not delegated authority
192 to an administrative control board established under Section 17D-1-301; or
193 (ii) the administrative control board, to the extent that the county or municipal
194 legislative body has delegated authority to an administrative control board established under
195 Section 17D-1-301.
196 (19) (a) For purposes of Section 59-2-103:
197 (i) "household" means the association of individuals who live in the same dwelling,
198 sharing its furnishings, facilities, accommodations, and expenses; and
199 (ii) "household" includes married individuals, who are not legally separated, that have
200 established domiciles at separate locations within the state.
201 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
202 commission may make rules defining the term "domicile."
203 (20) (a) Except as provided in Subsection (20)(c), "improvement" means a building,
204 structure, fixture, fence, or other item that is permanently attached to land, regardless of
205 whether the title has been acquired to the land, if:
206 (i) (A) attachment to land is essential to the operation or use of the item; and
207 (B) the manner of attachment to land suggests that the item will remain attached to the
208 land in the same place over the useful life of the item; or
209 (ii) removal of the item would:
210 (A) cause substantial damage to the item; or
211 (B) require substantial alteration or repair of a structure to which the item is attached.
212 (b) "Improvement" includes:
213 (i) an accessory to an item described in Subsection (20)(a) if the accessory is:
214 (A) essential to the operation of the item described in Subsection (20)(a); and
215 (B) installed solely to serve the operation of the item described in Subsection (20)(a);
217 (ii) an item described in Subsection (20)(a) that is temporarily detached from the land
218 for repairs and remains located on the land.
219 (c) "Improvement" does not include:
220 (i) an item considered to be personal property pursuant to rules made in accordance
221 with Section 59-2-107;
222 (ii) a moveable item that is attached to land for stability only or for an obvious
223 temporary purpose;
224 (iii) (A) manufacturing equipment and machinery; or
225 (B) essential accessories to manufacturing equipment and machinery;
226 (iv) an item attached to the land in a manner that facilitates removal without substantial
227 damage to the land or the item; or
228 (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
229 transportable factory-built housing unit is considered to be personal property under Section
231 (21) "Intangible property" means:
232 (a) property that is capable of private ownership separate from tangible property,
234 (i) money;
235 (ii) credits;
236 (iii) bonds;
237 (iv) stocks;
238 (v) representative property;
239 (vi) franchises;
240 (vii) licenses;
241 (viii) trade names;
242 (ix) copyrights; and
243 (x) patents;
244 (b) a low-income housing tax credit;
245 (c) goodwill; or
246 (d) a renewable energy tax credit or incentive, including:
247 (i) a federal renewable energy production tax credit under Section 45, Internal Revenue
249 (ii) a federal energy credit for qualified renewable electricity production facilities under
250 Section 48, Internal Revenue Code;
251 (iii) a federal grant for a renewable energy property under American Recovery and
252 Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
253 (iv) a tax credit under Subsection 59-7-614(5).
254 (22) "Livestock" means:
255 (a) a domestic animal;
256 (b) a fish;
257 (c) a fur-bearing animal;
258 (d) a honeybee; or
259 (e) poultry.
260 (23) "Low-income housing tax credit" means:
261 (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
263 (b) a low-income housing tax credit under Section 59-7-607 or Section 59-10-1010.
264 (24) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
265 (25) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
266 valuable mineral.
267 (26) "Mining" means the process of producing, extracting, leaching, evaporating, or
268 otherwise removing a mineral from a mine.
269 (27) (a) "Mobile flight equipment" means tangible personal property that is owned or
270 operated by an air charter service, air contract service, or airline and:
271 (i) is capable of flight or is attached to an aircraft that is capable of flight; or
272 (ii) is contained in an aircraft that is capable of flight if the tangible personal property
273 is intended to be used:
274 (A) during multiple flights;
275 (B) during a takeoff, flight, or landing; and
276 (C) as a service provided by an air charter service, air contract service, or airline.
277 (b) (i) "Mobile flight equipment" does not include a spare part other than a spare
278 engine that is rotated at regular intervals with an engine that is attached to the aircraft.
279 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
280 commission may make rules defining the term "regular intervals."
281 (28) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
282 sand, rock, gravel, and all carboniferous materials.
283 (29) "Part-year residential property" means property that is not residential property on
284 January 1 of a calendar year but becomes residential property after January 1 of the calendar
286 (30) "Personal property" includes:
287 (a) every class of property as defined in Subsection (31) that is the subject of
288 ownership and is not real estate or an improvement;
289 (b) any pipe laid in or affixed to land whether or not the ownership of the pipe is
290 separate from the ownership of the underlying land, even if the pipe meets the definition of an
292 (c) bridges and ferries;
293 (d) livestock; and
294 (e) outdoor advertising structures as defined in Section 72-7-502.
295 (31) (a) "Property" means property that is subject to assessment and taxation according
296 to its value.
297 (b) "Property" does not include intangible property as defined in this section.
298 (32) "Public utility" means:
299 (a) for purposes of this chapter, the operating property of a railroad, gas corporation, oil
300 or gas transportation or pipeline company, coal slurry pipeline company, electrical corporation,
301 telephone corporation, sewerage corporation, or heat corporation where the company performs
302 the service for, or delivers the commodity to, the public generally or companies serving the
303 public generally, or in the case of a gas corporation or an electrical corporation, where the gas
304 or electricity is sold or furnished to any member or consumers within the state for domestic,
305 commercial, or industrial use; and
306 (b) the operating property of any entity or person defined under Section 54-2-1 except
307 water corporations.
320 (a) the possession of, claim to, ownership of, or right to the possession of land;
321 (b) all mines, minerals, and quarries in and under the land, all timber belonging to
322 individuals or corporations growing or being on the lands of this state or the United States, and
323 all rights and privileges appertaining to these; and
324 (c) improvements.
326 a relationship described in Subsection 267(b), Internal Revenue Code, except that the term
327 25% shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code.
328 (b) For purposes of determining if a relationship described in Subsection 267(b),
329 Internal Revenue Code, exists, the ownership of stock shall be determined using the ownership
330 rules in Subsection 267(c), Internal Revenue Code.
332 of the reductions and adjustments under this chapter, means any property used for residential
333 purposes as a primary residence.
334 (b) Subject to Subsection [
335 (i) except as provided in Subsection [
336 furniture, and equipment if the household furnishings, furniture, and equipment are:
337 (A) used exclusively within a dwelling unit that is the primary residence of a tenant;
339 (B) owned by the owner of the dwelling unit that is the primary residence of a tenant;
341 (ii) does not include property used for transient residential use.
342 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
343 commission may by rule define the term "dwelling unit" for purposes of [
344 this Subsection [
346 (a) has a legal right to extract a mineral from property;
347 (b) does not hold more than a 25% interest in:
348 (i) the land surface rights of the property where the wellhead is located; or
349 (ii) an entity with an ownership interest in the land surface rights of the property where
350 the wellhead is located;
351 (c) is not an entity in which the owner of the land surface rights of the property where
352 the wellhead is located holds more than a 25% interest; and
353 (d) does not have a relationship with an owner of the land surface rights of the property
354 where the wellhead is located.
356 (i) any commercial vehicle, trailer, or semitrailer that operates interstate or intrastate to
357 transport passengers, freight, merchandise, or other property for hire; or
358 (ii) any commercial vehicle, trailer, or semitrailer that operates interstate and transports
359 the vehicle owner's goods or property in furtherance of the owner's commercial enterprise.
360 (b) "State-assessed commercial vehicle" does not include vehicles used for hire that are
361 specified in Subsection (9)(c) as county-assessed commercial vehicles.
363 division of a base parcel.
367 of one or more taxing entities.
368 (40) "Taxable value" means fair market value less any applicable reduction allowed for
369 residential property under Section 59-2-103.
371 district, local district under Title 17B, Limited Purpose Local Government Entities - Local
372 Districts, or other political subdivision of the state with the authority to levy a tax on property.
374 as extended on the assessment roll, and may be maintained on the same record or records as the
375 assessment roll or may be maintained on a separate record properly indexed to the assessment
377 (b) "Tax roll" includes tax books, tax lists, and other similar materials.
378 Section 2. Section 59-2-103.5 is amended to read:
379 59-2-103.5. Procedures to obtain an exemption for residential property --
380 Procedure if property owner or property no longer qualifies to receive a residential
382 (1) For residential property other than part-year residential property, a county
383 legislative body may adopt an ordinance that requires an owner to file an application with the
384 county board of equalization before a residential exemption under Section 59-2-103 may be
385 applied to the value of the residential property if:
386 (a) the residential property was ineligible for the residential exemption during the
387 calendar year immediately preceding the calendar year for which the owner is seeking to have
388 the residential exemption applied to the value of the residential property;
389 (b) an ownership interest in the residential property changes; or
390 (c) the county board of equalization determines that there is reason to believe that the
391 residential property no longer qualifies for the residential exemption.
392 (2) (a) The application described in Subsection (1) shall:
393 (i) be on a form the commission prescribes by rule and makes available to the counties;
394 (ii) be signed by all of the owners of the residential property;
395 (iii) certify that the residential property is residential property; and
396 (iv) contain other information as the commission requires by rule.
397 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
398 commission may make rules prescribing the contents of the form described in Subsection
400 (3) (a) Regardless of whether a county legislative body adopts an ordinance described
401 in Subsection (1), before a residential exemption may be applied to the value of part-year
402 residential property, an owner of the property shall:
403 (i) file the application described in Subsection (2)(a) with the county board of
404 equalization; and
405 (ii) include as part of the application described in Subsection (2)(a) a statement that
407 (A) the date the part-year residential property became residential property;
408 (B) that the part-year residential property will be used as residential property for 183 or
409 more consecutive calendar days during the calendar year for which the owner seeks to obtain
410 the residential exemption; and
411 (C) that the owner, or a member of the owner's household, may not claim a residential
412 exemption for any property for the calendar year for which the owner seeks to obtain the
413 residential exemption, other than the part-year residential property, or as allowed under Section
414 59-2-103 with respect to the primary residence or household furnishings, furniture, and
415 equipment of the owner's tenant.
416 (b) An owner may not obtain a residential exemption for part-year residential property
417 unless the owner files an application under this Subsection (3) on or before November 30 of the
418 calendar year for which the owner seeks to obtain the residential exemption.
419 (c) If an owner files an application under this Subsection (3) on or after May 1 of the
420 calendar year for which the owner seeks to obtain the residential exemption, the county board
421 of equalization may require the owner to pay an application fee of not to exceed $50.
422 (4) Except as provided in Subsection (5), if a property owner no longer qualifies to
423 receive a residential exemption authorized under Section 59-2-103 for the property owner's
424 primary residence, the property owner shall:
425 (a) file a written statement with the county board of equalization of the county in which
426 the property is located:
427 (i) on a form provided by the county board of equalization; and
428 (ii) notifying the county board of equalization that the property owner no longer
429 qualifies to receive a residential exemption authorized under Section 59-2-103 for the property
430 owner's primary residence; and
431 (b) declare on the property owner's individual income tax return under Chapter 10,
432 Individual Income Tax Act, for the taxable year for which the property owner no longer
433 qualifies to receive a residential exemption authorized under Section 59-2-103 for the property
434 owner's primary residence, that the property owner no longer qualifies to receive a residential
435 exemption authorized under Section 59-2-103 for the property owner's primary residence.
436 (5) A property owner is not required to file a written statement or make the declaration
437 described in Subsection (4) if the property owner:
438 (a) changes primary residences;
439 (b) qualified to receive a residential exemption authorized under Section 59-2-103 for
440 the residence that was the property owner's former primary residence; and
441 (c) qualifies to receive a residential exemption authorized under Section 59-2-103 for
442 the residence that is the property owner's current primary residence.
446 residential exemption under Section 59-2-103, a county assessor may require the property
447 owner to file a signed statement described in Section 59-2-306.
455 Section 3. Section 59-2-108 is amended to read:
456 59-2-108. Tangible personal property -- Election for assessment and taxation of
457 noncapitalized personal property according to a schedule -- Determination of taxable
459 (1) As used in this section:
460 (a) (i) "Acquisition cost" means all costs required to put an item of tangible personal
461 property into service; and
462 (ii) includes:
463 (A) the purchase price for a new or used item;
464 (B) the cost of freight and shipping;
465 (C) the cost of installation, engineering, erection, or assembly; and
466 (D) sales and use taxes.
467 (b) (i) "Item of taxable tangible personal property" does not include an improvement to
468 real property or a part that will become an improvement.
469 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
470 commission may make rules defining the term "item of taxable tangible personal property."
471 (c) "Noncapitalized personal property" means an item of tangible personal property:
472 (i) that has an acquisition cost of $1,000 or less; and
473 (ii) with respect to which a deduction is allowed under Section 162 or Section 179,
474 Internal Revenue Code, in the year of acquisition, regardless of whether a deduction is actually
476 (d) "Taxable tangible personal property" means tangible personal property that is
477 subject to taxation under this chapter.
478 (2) (a) A person may make an election for the noncapitalized personal property owned
479 by the person to be assessed and taxed as provided in this section.
480 (b) Except as provided in Subsection (2)(c), a county may not require a person who
481 makes an election under this section to:
482 (i) itemize noncapitalized personal property on the signed statement described in
483 Section 59-2-306; or
484 (ii) track noncapitalized personal property.
485 (c) If a person's noncapitalized personal property for which the person makes an
486 election under this section is examined in accordance with Section 59-2-306, the person shall
487 provide proof of the acquisition cost of the noncapitalized personal property.
488 (3) (a) An election under this section may not be revoked.
489 (b) Except as provided in Subsection (3)(d), if a person makes an election under this
490 section with respect to noncapitalized personal property, the person shall pay taxes on the
491 noncapitalized personal property according to the schedule described in Subsection (4).
492 (c) If a person sells or otherwise disposes of an item of noncapitalized personal
493 property for which the person makes an election under this section prior to the fourth year after
494 acquisition, the person shall continue to pay taxes according to the schedule described in
495 Subsection (4).
496 (d) If a person makes an election under this section for noncapitalized personal
497 property acquired on or before December 31, 2012, at a time after the first year after
498 acquisition, the person shall pay taxes according to the taxable value for the applicable one or
499 more years after acquisition as determined by the schedule described in Subsection (4).
500 (e) If a person makes an election under this section, the person may not appeal the
501 values described in Subsection (4).
502 (4) The taxable value of noncapitalized personal property for which a person makes an
503 election under this section is calculated by applying the percent good factor against the
504 acquisition cost of the noncapitalized personal property as follows:
|505||Noncapitalized Personal Property Schedule|
|506||Year after Acquisition||Percent Good of Acquisition Cost|
|507||First year after acquisition||75%|
|508||Second year after acquisition||50%|
|509||Third year after acquisition||25%|
|510||Fourth year after acquisition||0%|
512 the taxable value of tangible personal property.
513 Section 4. Section 59-2-1115 is amended to read:
514 59-2-1115. Tangible personal property exemption.
531 (1) For purposes of this section, "Tangible personal property" does not include:
533 before it is used:
540 (d) an improvement to real property or a part that will become an improvement.
572 (2) All tangible personal property that is subject to taxation under this chapter is
573 exempt from property taxation except:
574 (a) a power transmission line or other tangible personal property used for generating or
575 delivering electrical power;
576 (b) tangible personal property used to carry out activities associated with the
577 exploitation of a petroleum or natural gas deposit;
578 (c) a petroleum or natural gas pipeline or other tangible personal property used to
579 maintain and facilitate a petroleum or natural gas pipeline; and
580 (d) tangible personal property obtained by the owner in a sale where the circumstances
581 of the sale qualify the tangible personal property for exemption from sales tax under Subsection
582 59-12-104(5), (11), (14), (15), (18), (29), (31), (33), (38), (44), (54), (55), (56), (57), (61), (62),
583 (63), (70), (73), (74), (76), (79), (80), (84), (86), or (88).
585 Act, the commission may make rules to administer this section and provide for uniform
587 Section 5. Contingent effective date.
588 This bill takes effect on January 1, 2021, if the amendment to the Utah Constitution
589 proposed by S.J.R. 3, Proposal to Amend Utah Constitution - Tangible Personal Property Tax
590 Amendments, 2019 General Session, passes the Legislature and is approved by a majority of
591 those voting on it at the next regular general election.