Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 23 First Substitute (2016GS)

Sponsor

Rep. Stanard, J.

Final action

Governor Signed 3/29/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• describes exclusive possession as it relates to a privilege tax; and
• makes technical changes.

Every vote on this bill

Bill text

PRIVILEGE TAX AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jon E. Stanard
Senate Sponsor: 
Curtis S. Bramble
LONG TITLE
General Description:
This bill modifies the privilege tax statute.
Highlighted Provisions:
This bill:
▸ describes exclusive possession as it relates to a privilege tax; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides for retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-4-101
, as last amended by Laws of Utah 2015, Chapter 199
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-4-101
 is amended to read:
59-4-101.
Tax basis -- Exceptions -- Assessment and collection.
(1) (a) Except as provided in Subsections (1)(b) [
and
]
, (1)
(c), 
and (3),
 a tax is imposed
on the possession or other beneficial use enjoyed by any person of any real or personal property
[
which
] 
that is exempt
 for any reason [
is exempt
] from taxation, if that property is used in
connection with a business conducted for profit.
(b) Any interest remaining in the state in state lands after subtracting amounts paid or
due in part payment of the purchase price as provided in Subsection 
59-2-1103
(2)(b)(i) under a
contract of sale is subject to taxation under this chapter regardless of whether the property is
used in connection with a business conducted for profit.
(c) The tax imposed under Subsection (1)(a) does not apply to property exempt from
taxation under Section 
59-2-1114
.
(2) 
(a)
 The tax imposed under this chapter is the same amount that the ad valorem
property tax would be if the possessor or user were the owner of the property.
(b)
 The amount of any payments [
which
] 
that
 are made in lieu of taxes is credited
against the tax imposed on the beneficial use of property owned by the federal government.
(3) A tax is not imposed under this chapter on the following:
(a) the use of property [
which
] 
that
 is a concession in, or relative to, the use of a public
airport, park, fairground, or similar property [
which
] 
that
 is available as a matter of right to the
use of the general public;
(b) the use or possession of property by a religious, educational, or charitable
organization;
(c) the use or possession of property if the revenue generated by the possessor or user
of the property through its possession or use of the property inures only to the benefit of a
religious, educational, or charitable organization and not to the benefit of any other person;
(d) the possession or other beneficial use of public land occupied under the terms of an
agricultural lease or permit issued by the United States or this state;
(e) the use or possession of any lease, permit, or easement unless the lease, permit, or
easement entitles the lessee or permittee to exclusive possession of the premises to which the
lease, permit, or easement relates[
. Every lessee, permittee, or other holder of a right to remove
or extract the mineral covered by the holder's lease, right, permit, or easement except from
brines of the Great Salt Lake, is considered to be in possession of the premises,
notwithstanding the fact that other parties may have a similar right to remove or extract another
mineral from the same lands or estates
];
(f) the use or possession of property by a public agency, as defined in Section
11-13-103
, to the extent that the ownership interest of the public agency in that property is
subject to a fee in lieu of ad valorem property tax under Section 
11-13-302
; or
(g) the possession or beneficial use of public property as a tollway by a private entity
through a tollway development agreement as defined in Section 
72-6-202
.
(4) For purposes of Subsection (3)(e):
(a) every lessee, permittee, or other holder of a right to remove or extract the mineral
covered by the holder's lease, right permit, or easement, except from brines of the Great Salt
Lake, is considered to be in possession of the premises, regardless of whether another party has
a similar right to remove or extract another mineral from the same property; and
(b) a lessee, permittee, or holder of an easement still has exclusive possession of the
premises if the owner has the right to enter the premises, approve leasehold improvements, or
inspect the premises.
[
(4)
] 
(5)
 A tax imposed under this chapter is assessed to the possessors or users of the
property on the same forms, and collected and distributed at the same time and in the same
manner, as taxes assessed owners, possessors, or other claimants of property [
which
] 
that
 is
subject to ad valorem property taxation. The tax is not a lien against the property, and no
tax-exempt property may be attached, encumbered, sold, or otherwise affected for the
collection of the tax.
[
(5)
] 
(6)
 Sections 
59-2-301.1
 through 
59-2-301.7
 apply for purposes of assessing a tax
under this chapter.
Section 2. 
Retrospective operation.
This bill has retrospective operation to January 1, 2015.