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7 LONG TITLE
8 General Description:
9 This bill addresses taxation related to radioactive waste facilities.
10 Highlighted Provisions:
11 This bill:
12 ▸ creates a new tax rate for certain uncontainerized, unprocessed class A waste;
13 ▸ includes certain radioactive waste facility tax revenue in the calculation of a
14 taxpayer's high cost infrastructure development tax credit; and
15 ▸ makes technical changes.
16 Money Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 This bill provides a special effective date.
20 Utah Code Sections Affected:
21 AMENDS:
22 59-24-103.5, as last amended by Laws of Utah 2005, Chapter 10
23 79-6-602, as last amended by Laws of Utah 2023, Chapter 473
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25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 59-24-103.5 is amended to read:
27 59-24-103.5. Radioactive waste disposal, processing, and recycling facility tax.
28 (1) On and after July 1, 2003, there is imposed a tax on a radioactive waste facility, or a
29 processing or recycling facility, as provided in this chapter.
30 (2) The tax is equal to the sum of the following amounts:
31 (a) 12% of the gross receipts of a radioactive waste facility derived from the disposal of
32 containerized class A waste;
33 (b) 10% of the gross receipts of a radioactive waste facility derived from the disposal
34 of processed class A waste;
35 (c) except as provided in Subsection (2)(e), 5% of the gross receipts of a radioactive
36 waste facility derived from the disposal of uncontainerized, unprocessed class A waste from a
37 governmental entity or an agent of a governmental entity:
38 (i) pursuant to a contract entered into on or after April 30, 2001;
39 (ii) pursuant to a contract substantially modified on or after April 30, 2001;
40 (iii) pursuant to a contract renewed or extended on or after April 30, 2001; or
41 (iv) not pursuant to a contract;
42 (d) except as provided in Subsection (2)(e), 5% of the gross receipts of a radioactive
43 waste facility derived from the disposal of uncontainerized, unprocessed class A waste received
44 by the facility from an entity other than a governmental entity or an agent of a governmental
45 entity;
46 (e) .5% of the gross receipts of a radioactive waste facility derived from the disposal of
47 uncontainerized, unprocessed class A waste received by the facility if the uncontainerized,
48 unprocessed class A waste does not exceed 10% of the radioactive concentration limit for class
49 A waste as defined in 10 C.F.R. Sec. 61.55;
50 [
51 disposal of mixed waste, other than the mixed waste described in Subsection [
52 received from:
53 (i) an entity other than a governmental entity or an agent of a governmental entity; or
54 (ii) a governmental entity or an agent of a governmental entity:
55 (A) pursuant to a contract entered into on or after April 30, 2005;
56 (B) pursuant to a contract substantially modified on or after April 30, 2005;
57 (C) pursuant to a contract renewed or extended on or after April 30, 2005; or
58 (D) not pursuant to a contract;
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60 disposal of mixed waste:
61 (i) (A) received from an entity other than a governmental entity or an agent of a
62 governmental entity; or
63 (B) received from a governmental entity or an agent of a governmental entity:
64 (I) pursuant to a contract entered into on or after April 30, 2005;
65 (II) pursuant to a contract substantially modified on or after April 30, 2005;
66 (III) pursuant to a contract renewed or extended on or after April 30, 2005; or
67 (IV) not pursuant to a contract; and
68 (ii) that contains a higher radionuclide concentration level than the mixed waste
69 received by any radioactive waste facility in the state [
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71 waste facility for disposal or reprocessing; and
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73 facility for disposal.
74 (3) For purposes of the tax imposed by this section, a fraction of a cubic foot is
75 considered to be a full cubic foot.
76 (4) Except as provided in Subsections [
77 by this section does not apply to radioactive waste containing material classified as hazardous
78 waste under 40 C.F.R. Part 261.
79 Section 2. Section 79-6-602 is amended to read:
80 79-6-602. Definitions.
81 As used in this part:
82 (1) "Applicant" means a person that conducts business in the state and that applies for a
83 tax credit under this part.
84 (2) "Energy delivery project" means a project that is designed to:
85 (a) increase the capacity for the delivery of energy to a user of energy inside or outside
86 the state; or
87 (b) increase the capability of an existing energy delivery system or related facility to
88 deliver energy to a user of energy inside or outside the state.
89 (3) "Fuel standard compliance project" means a project designed to retrofit a fuel
90 refinery in order to make the refinery capable of producing fuel that complies with the United
91 States Environmental Protection Agency's Tier 3 gasoline sulfur standard described in 40
92 C.F.R. Sec. 79.54.
93 (4) "High cost infrastructure project" means a project, including an energy delivery
94 project or a fuel standard compliance project:
95 (a) (i) that expands or creates new industrial, mining, manufacturing, or agriculture
96 activity in the state, not including a retail business;
97 (ii) that involves new investment of at least $50,000,000 in an existing industrial,
98 mining, manufacturing, or agriculture entity, by the entity; or
99 (iii) for the construction of a plant or other facility for the storage or production of fuel
100 used for transportation, electricity generation, or industrial use;
101 (b) that requires or is directly facilitated by infrastructure construction; and
102 (c) for which the cost of infrastructure construction to the entity creating the project is
103 greater than:
104 (i) 10% of the total cost of the project; or
105 (ii) $10,000,000.
106 (5) "Infrastructure" means:
107 (a) an energy delivery project;
108 (b) a railroad as defined in Section 54-2-1;
109 (c) a fuel standard compliance project;
110 (d) a road improvement project;
111 (e) a water self-supply project;
112 (f) a water removal system project;
113 (g) a solution-mined subsurface salt cavern;
114 (h) a project that is designed to:
115 (i) increase the capacity for water delivery to a water user in the state; or
116 (ii) increase the capability of an existing water delivery system or related facility to
117 deliver water to a water user in the state; or
118 (i) an underground mine infrastructure project.
119 (6) (a) "Infrastructure cost-burdened entity" means an applicant that enters into an
120 agreement with the office that qualifies the applicant to receive a tax credit as provided in this
121 part.
122 (b) "Infrastructure cost-burdened entity" includes a pass-through entity taxpayer, as
123 defined in Section 59-10-1402, of a person described in Subsection (6)(a).
124 (7) "Infrastructure-related revenue" means an amount of tax revenue, for an entity
125 creating a high cost infrastructure project, in a taxable year, that is directly attributable to a high
126 cost infrastructure project, under:
127 (a) Subsection 59-24-103.5(2)(e);
128 (b) Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax;
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133 (8) "Office" means the Office of Energy Development created in Section 79-6-401.
134 (9) "Tax credit" means a tax credit under Section 59-7-619 or 59-10-1034.
135 (10) "Tax credit certificate" means a certificate issued by the office to an infrastructure
136 cost-burdened entity that:
137 (a) lists the name of the infrastructure cost-burdened entity;
138 (b) lists the infrastructure cost-burdened entity's taxpayer identification number;
139 (c) lists, for a taxable year, the amount of the tax credit authorized for the infrastructure
140 cost-burdened entity under this part; and
141 (d) includes other information as determined by the office.
142 (11) (a) "Underground mine infrastructure project" means a project that:
143 (i) is designed to create permanent underground infrastructure to facilitate underground
144 mining operations; and
145 (ii) services multiple levels or areas of an underground mine or multiple underground
146 mines.
147 (b) "Underground mine infrastructure project" includes:
148 (i) an underground access or a haulage road, entry, ramp, or decline;
149 (ii) a vertical or incline mine shaft;
150 (iii) a ventilation shaft or an air course; or
151 (iv) a conveyor or a truck haulageway.
152 Section 3. Effective date.
153 This bill takes effect on July 1, 2024.