Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 200 Second Substitute (2018GS)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 3/22/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• transfers certain functions related to aeronautics from the State Tax Commission to the Department of Transportation;
• grants rulemaking authority to the Department of Transportation;
• permits the Department of Transportation to assess the value of certain aircraft;
• requires an aircraft without a valid airworthiness certificate to apply for a certificate of registration; and
• makes technical changes.

Every vote on this bill

Bill text

AERONAUTICS AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
Walt Brooks
LONG TITLE
General Description:
This bill amends provisions related to aeronautics.
Highlighted Provisions:
This bill:
▸ transfers certain functions related to aeronautics from the State Tax Commission to
the Department of Transportation;
▸ grants rulemaking authority to the Department of Transportation;
▸ permits the Department of Transportation to assess the value of certain aircraft;
▸ requires an aircraft without a valid airworthiness certificate to apply for a certificate
of registration; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
9-7-401
, as last amended by Laws of Utah 2005, Chapters 217 and 244
59-2-407
, as last amended by Laws of Utah 2005, Chapters 217 and 244
59-2-924.2
, as last amended by Laws of Utah 2016, Chapter 350
59-7-614
, as last amended by Laws of Utah 2016, Third Special Session, Chapter 1
59-10-1014
, as last amended by Laws of Utah 2017, Chapter 33
72-10-109
, as last amended by Laws of Utah 2017, Chapter 364
72-10-110
, as last amended by Laws of Utah 2016, Chapters 224 and 333
72-10-112
, as last amended by Laws of Utah 2016, Chapter 333
ENACTS:
72-10-110.5
, Utah Code Annotated 1953
REPEALS:
59-2-404
, as last amended by Laws of Utah 2008, Chapter 206
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
9-7-401
 is amended to read:
9-7-401.
Tax for establishment and maintenance of public library -- City library
fund.
(1) A city governing body may establish and maintain a public library.
(2) For this purpose, cities may levy annually a tax not to exceed .001 of taxable value
of taxable property in the city. The tax is in addition to all taxes levied by cities and is not
limited by the levy limitation imposed on cities by law. However, if bonds are issued for
purchasing a site, or constructing or furnishing a building, then taxes sufficient for the payment
of the bonds and any interest may be levied.
(3) The taxes described in Subsection (2) shall:
(a) be levied and collected in the same manner as other general taxes of the city; and
(b) constitute a fund to be known as the city library fund.
(4) The city library fund shall receive a portion of:
[
(a) the uniform fee imposed by Section 
59-2-404
 in accordance with the procedures
established in Section 
59-2-404
;
]
[
(b)
] 
(a)
 the statewide uniform fee imposed by Section 
59-2-405
 in accordance with the
procedures established in Section 
59-2-405
;
[
(c)
] 
(b)
 the statewide uniform fee imposed by Section 
59-2-405.1
 in accordance with
the procedures established in Section 
59-2-405.1
;
[
(d)
] 
(c)
 the uniform statewide fee imposed by Section 
59-2-405.2
 in accordance with
the procedures established in Section 
59-2-405.2
; [
and
]
[
(e)
] 
(d)
 the uniform statewide fee imposed by Section 
59-2-405.3
 in accordance with
the procedures established in Section 
59-2-405.3
[
.
]
; and
(e) the uniform fee imposed by Section 
72-10-110.5
 in accordance with the procedures
established in Section 
72-10-110.5
.
Section 2. Section 
59-2-407
 is amended to read:
Part 4. Assessment of Transitory Personal Property and Interstate Carriers
59-2-407.
Administration of uniform fees.
(1) (a) Except as provided in Subsection 
59-2-405
(4) or 
59-2-405.3
(4), the uniform fee
authorized in Sections [
59-2-404
,
] 
59-2-405
, [
and
] 
59-2-405.3
, and 
72-10-110.5
 shall be
assessed at the same time and in the same manner as ad valorem personal property taxes under
Chapter 2, Part 13, Collection of Taxes, except that in listing personal property subject to the
uniform fee with real property as permitted by Section 
59-2-1302
, the assessor or, if this duty
has been reassigned in an ordinance under Section 
17-16-5.5
, the treasurer shall list only the
amount of the uniform fee due, and not the taxable value of the property subject to the uniform
fee.
(b) Except as provided in Subsection 
59-2-405.1
[
(4)
]
(5)
, the uniform fee imposed by
Section 
59-2-405.1
 shall be assessed at the time of:
(i) registration as defined in Section 
41-1a-102
; and
(ii) renewal of registration.
(c) Except as provided in Subsection 
59-2-405.2
[
(4)
]
(5)
, the uniform statewide fee
imposed by Section 
59-2-405.2
 shall be assessed at the time of:
(i) registration as defined in Section 
41-1a-102
; and
(ii) renewal of registration.
(2) The remedies for nonpayment of the uniform fees authorized by Sections
[
59-2-404
,
] 
59-2-405
, 
59-2-405.1
, 
59-2-405.2
, [
and
] 
59-2-405.3
, and 
72-10-110.5
 shall be the
same as those provided in Chapter 2, Part 13, Collection of Taxes, for nonpayment of ad
valorem personal property taxes.
Section 3. Section 
59-2-924.2
 is amended to read:
59-2-924.2.
Adjustments to the calculation of a taxing entity's certified tax rate.
(1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
in accordance with Section 
59-2-924
.
(2) Beginning January 1, 1997, if a taxing entity receives increased revenues from
uniform fees on tangible personal property under Section [
59-2-404
,
] 
59-2-405
, 
59-2-405.1
,
59-2-405.2
, [
or
] 
59-2-405.3
, or 
72-10-110.5
 as a result of any county imposing a sales and use
tax under Chapter 12, Part 11, County Option Sales and Use Tax, the taxing entity shall
decrease its certified tax rate to offset the increased revenues.
(3) (a) Beginning July 1, 1997, if a county has imposed a sales and use tax under
Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
(i) decreased on a one-time basis by the amount of the estimated sales and use tax
revenue to be distributed to the county under Subsection 
59-12-1102
(3); and
(ii) increased by the amount necessary to offset the county's reduction in revenue from
uniform fees on tangible personal property under Section [
59-2-404
,
] 
59-2-405
, 
59-2-405.1
,
59-2-405.2
, [
or
] 
59-2-405.3
, or 
72-10-110.5
 as a result of the decrease in the certified tax rate
under Subsection (3)(a)(i).
(b) The commission shall determine estimates of sales and use tax distributions for
purposes of Subsection (3)(a).
(4) Beginning January 1, 1998, if a municipality has imposed an additional resort
communities sales and use tax under Section 
59-12-402
, the municipality's certified tax rate
shall be decreased on a one-time basis by the amount necessary to offset the first 12 months of
estimated revenue from the additional resort communities sales and use tax imposed under
Section 
59-12-402
.
(5) (a) This Subsection (5) applies to each county that:
(i) establishes a countywide special service district under Title 17D, Chapter 1, Special
Service District Act, to provide jail service, as provided in Subsection 
17D-1-201
(10); and
(ii) levies a property tax on behalf of the special service district under Section
17D-1-105
.
(b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be
decreased by the amount necessary to reduce county revenues by the same amount of revenues
that will be generated by the property tax imposed on behalf of the special service district.
(ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
levy on behalf of the special service district under Section 
17D-1-105
.
(6) (a) As used in this Subsection (6):
(i) "Annexing county" means a county whose unincorporated area is included within a
public safety district by annexation.
(ii) "Annexing municipality" means a municipality whose area is included within a
public safety district by annexation.
(iii) "Equalized public safety protection tax rate" means the tax rate that results from:
(A) calculating, for each participating county and each participating municipality, the
property tax revenue necessary:
(I) in the case of a fire district, to cover all of the costs associated with providing fire
protection, paramedic, and emergency services:
(Aa) for a participating county, in the unincorporated area of the county; and
(Bb) for a participating municipality, in the municipality; or
(II) in the case of a police district, to cover all the costs:
(Aa) associated with providing law enforcement service:
(Ii) for a participating county, in the unincorporated area of the county; and
(IIii) for a participating municipality, in the municipality; and
(Bb) that the police district board designates as the costs to be funded by a property
tax; and
(B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
participating counties and all participating municipalities and then dividing that sum by the
aggregate taxable value of the property, as adjusted in accordance with Section 
59-2-913
:
(I) for participating counties, in the unincorporated area of all participating counties;
and
(II) for participating municipalities, in all the participating municipalities.
(iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
Area Act:
(A) created to provide fire protection, paramedic, and emergency services; and
(B) in the creation of which an election was not required under Subsection
17B-1-214
(3)(c).
(v) "Participating county" means a county whose unincorporated area is included
within a public safety district at the time of the creation of the public safety district.
(vi) "Participating municipality" means a municipality whose area is included within a
public safety district at the time of the creation of the public safety district.
(vii) "Police district" means a service area under Title 17B, Chapter 2a, Part 9, Service
Area Act, within a county of the first class:
(A) created to provide law enforcement service; and
(B) in the creation of which an election was not required under Subsection
17B-1-214
(3)(c).
(viii) "Public safety district" means a fire district or a police district.
(ix) "Public safety service" means:
(A) in the case of a public safety district that is a fire district, fire protection,
paramedic, and emergency services; and
(B) in the case of a public safety district that is a police district, law enforcement
service.
(b) In the first year following creation of a public safety district, the certified tax rate of
each participating county and each participating municipality shall be decreased by the amount
of the equalized public safety tax rate.
(c) In the first budget year following annexation to a public safety district, the certified
tax rate of each annexing county and each annexing municipality shall be decreased by an
amount equal to the amount of revenue budgeted by the annexing county or annexing
municipality:
(i) for public safety service; and
(ii) in:
(A) for a taxing entity operating under a January 1 through December 31 fiscal year,
the prior calendar year; or
(B) for a taxing entity operating under a July 1 through June 30 fiscal year, the prior
fiscal year.
(d) Each tax levied under this section by a public safety district shall be considered to
be levied by:
(i) each participating county and each annexing county for purposes of the county's tax
limitation under Section 
59-2-908
; and
(ii) each participating municipality and each annexing municipality for purposes of the
municipality's tax limitation under Section 
10-5-112
, for a town, or Section 
10-6-133
, for a
city.
(e) The calculation of a public safety district's certified tax rate for the year of
annexation shall be adjusted to include an amount of revenue equal to one half of the amount
of revenue budgeted by the annexing entity for public safety service in the annexing entity's
prior fiscal year if:
(i) the public safety district operates on a January 1 through December 31 fiscal year;
(ii) the public safety district approves an annexation of an entity operating on a July 1
through June 30 fiscal year; and
(iii) the annexation described in Subsection (6)(e)(ii) takes effect on July 1.
(7) (a) The base taxable value under Section 
17C-1-102
 shall be reduced for any year
to the extent necessary to provide a community reinvestment agency established under Title
17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act,
with approximately the same amount of money the agency would have received without a
reduction in the county's certified tax rate, calculated in accordance with Section 
59-2-924
, if:
(i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
(ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
previous year; and
(iii) the decrease results in a reduction of the amount to be paid to the agency under
Section 
17C-1-403
 or 
17C-1-404
.
(b) The base taxable value under Section 
17C-1-102
 shall be increased in any year to
the extent necessary to provide a community reinvestment agency with approximately the same
amount of money as the agency would have received without an increase in the certified tax
rate that year if:
(i) in that year the base taxable value under Section 
17C-1-102
 is reduced due to a
decrease in the certified tax rate under Subsection (2) or (3)(a); and
(ii) the certified tax rate of a city, school district, local district, or special service
district increases independent of the adjustment to the taxable value of the base year.
(c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
the amount of money allocated and, when collected, paid each year to a community
reinvestment agency established under Title 17C, Limited Purpose Local Government Entities -
Community Reinvestment Agency Act, for the payment of bonds or other contract
indebtedness, but not for administrative costs, may not be less than that amount would have
been without a decrease in the certified tax rate under Subsection (2) or (3)(a).
(8) (a) For the calendar year beginning on January 1, 2014, the calculation of a county
assessing and collecting levy shall be adjusted by the amount necessary to offset:
(i) any change in the certified tax rate that may result from amendments to Part 16,
Multicounty Assessing and Collecting Levy, in Laws of Utah 2014, Chapter 270, Section 3;
and
(ii) the difference in the amount of revenue a taxing entity receives from or contributes
to the Property Tax Valuation Agency Fund, created in Section 
59-2-1602
, that may result from
amendments to Part 16, Multicounty Assessing and Collecting Levy, in Laws of Utah 2014,
Chapter 270, Section 3.
(b) A taxing entity is not required to comply with the notice and public hearing
requirements in Section 
59-2-919
 for an adjustment to the county assessing and collecting levy
described in Subsection (8)(a).
Section 4. Section 
59-7-614
 is amended to read:
59-7-614.
Renewable energy systems tax credits -- Definitions -- Certification --
Rulemaking authority.
(1) As used in this section:
(a) (i) "Active solar system" means a system of equipment that is capable of:
(A) collecting and converting incident solar radiation into thermal, mechanical, or
electrical energy; and
(B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a separate
apparatus to storage or to the point of use.
(ii) "Active solar system" includes water heating, space heating or cooling, and
electrical or mechanical energy generation.
(b) "Biomass system" means a system of apparatus and equipment for use in:
(i) converting material into biomass energy, as defined in Section 
59-12-102
; and
(ii) transporting the biomass energy by separate apparatus to the point of use or storage.
(c) "Commercial energy system" means a system that is:
(i) (A) an active solar system;
(B) a biomass system;
(C) a direct use geothermal system;
(D) a geothermal electricity system;
(E) a geothermal heat pump system;
(F) a hydroenergy system;
(G) a passive solar system; or
(H) a wind system;
(ii) located in the state; and
(iii) used:
(A) to supply energy to a commercial unit; or
(B) as a commercial enterprise.
(d) "Commercial enterprise" means an entity, the purpose of which is to produce
electrical, mechanical, or thermal energy for sale from a commercial energy system.
(e) (i) "Commercial unit" means a building or structure that an entity uses to transact
business.
(ii) Notwithstanding Subsection (1)(e)(i):
(A) with respect to an active solar system used for agricultural water pumping or a
wind system, each individual energy generating device is considered to be a commercial unit;
or
(B) if an energy system is the building or structure that an entity uses to transact
business, a commercial unit is the complete energy system itself.
(f) "Direct use geothermal system" means a system of apparatus and equipment that
enables the direct use of geothermal energy to meet energy needs, including heating a building,
an industrial process, and aquaculture.
(g) "Geothermal electricity" means energy that is:
(i) contained in heat that continuously flows outward from the earth; and
(ii) used as a sole source of energy to produce electricity.
(h) "Geothermal energy" means energy generated by heat that is contained in the earth.
(i) "Geothermal heat pump system" means a system of apparatus and equipment that:
(i) enables the use of thermal properties contained in the earth at temperatures well
below 100 degrees Fahrenheit; and
(ii) helps meet heating and cooling needs of a structure.
(j) "Hydroenergy system" means a system of apparatus and equipment that is capable
of:
(i) intercepting and converting kinetic water energy into electrical or mechanical
energy; and
(ii) transferring this form of energy by separate apparatus to the point of use or storage.
(k) "Office" means the Office of Energy Development created in Section 
63M-4-401
.
(l) (i) "Passive solar system" means a direct thermal system that utilizes the structure of
a building and its operable components to provide for collection, storage, and distribution of
heating or cooling during the appropriate times of the year by utilizing the climate resources
available at the site.
(ii) "Passive solar system" includes those portions and components of a building that
are expressly designed and required for the collection, storage, and distribution of solar energy.
(m) (i) "Principal recovery portion" means the portion of a lease payment that
constitutes the cost a person incurs in acquiring a commercial energy system.
(ii) "Principal recovery portion" does not include:
(A) an interest charge; or
(B) a maintenance expense.
(n) "Residential energy system" means the following used to supply energy to or for a
residential unit:
(i) an active solar system;
(ii) a biomass system;
(iii) a direct use geothermal system;
(iv) a geothermal heat pump system;
(v) a hydroenergy system;
(vi) a passive solar system; or
(vii) a wind system.
(o) (i) "Residential unit" means a house, condominium, apartment, or similar dwelling
unit that:
(A) is located in the state; and
(B) serves as a dwelling for a person, group of persons, or a family.
(ii) "Residential unit" does not include property subject to a fee under:
[
(A) Section 
59-2-404
;
]
[
(B)
] 
(A)
 Section 
59-2-405
;
[
(C)
] 
(B)
 Section 
59-2-405.1
;
[
(D)
] 
(C)
 Section 
59-2-405.2
; [
or
]
[
(E)
] 
(D)
 Section 
59-2-405.3
[
.
]
; or
(E) Section 
72-10-110.5
.
(p) "Wind system" means a system of apparatus and equipment that is capable of:
(i) intercepting and converting wind energy into mechanical or electrical energy; and
(ii) transferring these forms of energy by a separate apparatus to the point of use, sale,
or storage.
(2) A taxpayer may claim an energy system tax credit as provided in this section
against a tax due under this chapter for a taxable year.
(3) (a) Subject to the other provisions of this Subsection (3), a taxpayer may claim a
nonrefundable tax credit under this Subsection (3) with respect to a residential unit the taxpayer
owns or uses if:
(i) the taxpayer:
(A) purchases and completes a residential energy system to supply all or part of the
energy required for the residential unit; or
(B) participates in the financing of a residential energy system to supply all or part of
the energy required for the residential unit;
(ii) the residential energy system is completed and placed in service on or after January
1, 2007; and
(iii) the taxpayer obtains a written certification from the office in accordance with
Subsection (7).
(b) (i) Subject to Subsections (3)(b)(ii) through (v), the tax credit is equal to 25% of the
reasonable costs of each residential energy system installed with respect to each residential unit
the taxpayer owns or uses.
(ii) A tax credit under this Subsection (3) may include installation costs.
(iii) A taxpayer may claim a tax credit under this Subsection (3) for the taxable year in
which the residential energy system is completed and placed in service.
(iv) If the amount of a tax credit under this Subsection (3) exceeds a taxpayer's tax
liability under this chapter for a taxable year, the amount of the tax credit exceeding the
liability may be carried forward for a period that does not exceed the next four taxable years.
(v) The total amount of tax credit a taxpayer may claim under this Subsection (3) may
not exceed $2,000 per residential unit.
(c) If a taxpayer sells a residential unit to another person before the taxpayer claims the
tax credit under this Subsection (3):
(i) the taxpayer may assign the tax credit to the other person; and
(ii) (A) if the other person files a return under this chapter, the other person may claim
the tax credit under this section as if the other person had met the requirements of this section
to claim the tax credit; or
(B) if the other person files a return under Chapter 10, Individual Income Tax Act, the
other person may claim the tax credit under Section 
59-10-1014
 as if the other person had met
the requirements of Section 
59-10-1014
 to claim the tax credit.
(4) (a) Subject to the other provisions of this Subsection (4), a taxpayer may claim a
refundable tax credit under this Subsection (4) with respect to a commercial energy system if:
(i) the commercial energy system does not use:
(A) wind, geothermal electricity, solar, or biomass equipment capable of producing a
total of 660 or more kilowatts of electricity; or
(B) solar equipment capable of producing 2,000 or more kilowatts of electricity;
(ii) the taxpayer purchases or participates in the financing of the commercial energy
system;
(iii) (A) the commercial energy system supplies all or part of the energy required by
commercial units owned or used by the taxpayer; or
(B) the taxpayer sells all or part of the energy produced by the commercial energy
system as a commercial enterprise;
(iv) the commercial energy system is completed and placed in service on or after
January 1, 2007; and
(v) the taxpayer obtains a written certification from the office in accordance with
Subsection (7).
(b) (i) Subject to Subsections (4)(b)(ii) through (v), the tax credit is equal to 10% of the
reasonable costs of the commercial energy system.
(ii) A tax credit under this Subsection (4) may include installation costs.
(iii) A taxpayer may claim a tax credit under this Subsection (4) for the taxable year in
which the commercial energy system is completed and placed in service.
(iv) A tax credit under this Subsection (4) may not be carried forward or carried back.
(v) The total amount of tax credit a taxpayer may claim under this Subsection (4) may
not exceed $50,000 per commercial unit.
(c) (i) Subject to Subsections (4)(c)(ii) and (iii), a taxpayer that is a lessee of a
commercial energy system installed on a commercial unit may claim a tax credit under this
Subsection (4) if the taxpayer confirms that the lessor irrevocably elects not to claim the tax
credit.
(ii) A taxpayer described in Subsection (4)(c)(i) may claim as a tax credit under this
Subsection (4) only the principal recovery portion of the lease payments.
(iii) A taxpayer described in Subsection (4)(c)(i) may claim a tax credit under this
Subsection (4) for a period that does not exceed seven taxable years after the date the lease
begins, as stated in the lease agreement.
(5) (a) Subject to the other provisions of this Subsection (5), a taxpayer may claim a
refundable tax credit under this Subsection (5) with respect to a commercial energy system if:
(i) the commercial energy system uses wind, geothermal electricity, or biomass
equipment capable of producing a total of 660 or more kilowatts of electricity;
(ii) (A) the commercial energy system supplies all or part of the energy required by
commercial units owned or used by the taxpayer; or
(B) the taxpayer sells all or part of the energy produced by the commercial energy
system as a commercial enterprise;
(iii) the commercial energy system is completed and placed in service on or after
January 1, 2007; and
(iv) the taxpayer obtains a written certification from the office in accordance with
Subsection (7).
(b) (i) Subject to Subsections (5)(b)(ii) and (iii), a tax credit under this Subsection (5)
is equal to the product of:
(A) 0.35 cents; and
(B) the kilowatt hours of electricity produced and used or sold during the taxable year.
(ii) A tax credit under this Subsection (5) may be claimed for production occurring
during a period of 48 months beginning with the month in which the commercial energy
system is placed in commercial service.
(iii) A tax credit under this Subsection (5) may not be carried forward or carried back.
(c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
unit may claim a tax credit under this Subsection (5) if the taxpayer confirms that the lessor
irrevocably elects not to claim the tax credit.
(6) (a) Subject to the other provisions of this Subsection (6), a taxpayer may claim a
refundable tax credit as provided in this Subsection (6) if:
(i) the taxpayer owns a commercial energy system that uses solar equipment capable of
producing a total of 660 or more kilowatts of electricity;
(ii) (A) the commercial energy system supplies all or part of the energy required by
commercial units owned or used by the taxpayer; or
(B) the taxpayer sells all or part of the energy produced by the commercial energy
system as a commercial enterprise;
(iii) the taxpayer does not claim a tax credit under Subsection (4);
(iv) the commercial energy system is completed and placed in service on or after
January 1, 2015; and
(v) the taxpayer obtains a written certification from the office in accordance with
Subsection (7).
(b) (i) Subject to Subsections (6)(b)(ii) and (iii), a tax credit under this Subsection (6)
is equal to the product of:
(A) 0.35 cents; and
(B) the kilowatt hours of electricity produced and used or sold during the taxable year.
(ii) A tax credit under this Subsection (6) may be claimed for production occurring
during a period of 48 months beginning with the month in which the commercial energy
system is placed in commercial service.
(iii) A tax credit under this Subsection (6) may not be carried forward or carried back.
(c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
unit may claim a tax credit under this Subsection (6) if the taxpayer confirms that the lessor
irrevocably elects not to claim the tax credit.
(7) (a) Before a taxpayer may claim a tax credit under this section, the taxpayer shall
obtain a written certification from the office.
(b) The office shall issue a taxpayer a written certification if the office determines that:
(i) the taxpayer meets the requirements of this section to receive a tax credit; and
(ii) the residential energy system or commercial energy system with respect to which
the taxpayer seeks to claim a tax credit:
(A) has been completely installed;
(B) is a viable system for saving or producing energy from renewable resources; and
(C) is safe, reliable, efficient, and technically feasible to ensure that the residential
energy system or commercial energy system uses the state's renewable and nonrenewable
energy resources in an appropriate and economic manner.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
office may make rules:
(i) for determining whether a residential energy system or commercial energy system
meets the requirements of Subsection (7)(b)(ii); and
(ii) for purposes of a tax credit under Subsection (3) or (4), establishing the reasonable
costs of a residential energy system or a commercial energy system, as an amount per unit of
energy production.
(d) A taxpayer that obtains a written certification from the office shall retain the
certification for the same time period a person is required to keep books and records under
Section 
59-1-1406
.
(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules to address the certification of a tax credit under this section.
(9) A tax credit under this section is in addition to any tax credits provided under the
laws or rules and regulations of the United States.
Section 5. Section 
59-10-1014
 is amended to read:
59-10-1014.
Nonrefundable renewable energy systems tax credits -- Definitions --
Certification -- Rulemaking authority.
(1) As used in this section:
(a) (i) "Active solar system" means a system of equipment that is capable of:
(A) collecting and converting incident solar radiation into thermal, mechanical, or
electrical energy; and
(B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a separate
apparatus to storage or to the point of use.
(ii) "Active solar system" includes water heating, space heating or cooling, and
electrical or mechanical energy generation.
(b) "Biomass system" means a system of apparatus and equipment for use in:
(i) converting material into biomass energy, as defined in Section 
59-12-102
; and
(ii) transporting the biomass energy by separate apparatus to the point of use or storage.
(c) "Direct use geothermal system" means a system of apparatus and equipment that
enables the direct use of geothermal energy to meet energy needs, including heating a building,
an industrial process, and aquaculture.
(d) "Geothermal electricity" means energy that is:
(i) contained in heat that continuously flows outward from the earth; and
(ii) used as a sole source of energy to produce electricity.
(e) "Geothermal energy" means energy generated by heat that is contained in the earth.
(f) "Geothermal heat pump system" means a system of apparatus and equipment that:
(i) enables the use of thermal properties contained in the earth at temperatures well
below 100 degrees Fahrenheit; and
(ii) helps meet heating and cooling needs of a structure.
(g) "Hydroenergy system" means a system of apparatus and equipment that is capable
of:
(i) intercepting and converting kinetic water energy into electrical or mechanical
energy; and
(ii) transferring this form of energy by separate apparatus to the point of use or storage.
(h) "Office" means the Office of Energy Development created in Section 
63M-4-401
.
(i) (i) "Passive solar system" means a direct thermal system that utilizes the structure of
a building and its operable components to provide for collection, storage, and distribution of
heating or cooling during the appropriate times of the year by utilizing the climate resources
available at the site.
(ii) "Passive solar system" includes those portions and components of a building that
are expressly designed and required for the collection, storage, and distribution of solar energy.
(j) "Photovoltaic system" means an active solar system that generates electricity from
sunlight.
(k) (i) "Principal recovery portion" means the portion of a lease payment that
constitutes the cost a person incurs in acquiring a residential energy system.
(ii) "Principal recovery portion" does not include:
(A) an interest charge; or
(B) a maintenance expense.
(l) "Residential energy system" means the following used to supply energy to or for a
residential unit:
(i) an active solar system;
(ii) a biomass system;
(iii) a direct use geothermal system;
(iv) a geothermal heat pump system;
(v) a hydroenergy system;
(vi) a passive solar system; or
(vii) a wind system.
(m) (i) "Residential unit" means a house, condominium, apartment, or similar dwelling
unit that:
(A) is located in the state; and
(B) serves as a dwelling for a person, group of persons, or a family.
(ii) "Residential unit" does not include property subject to a fee under:
[
(A) Section 
59-2-404
;
]
[
(B)
] 
(A)
 Section 
59-2-405
;
[
(C)
] 
(B)
 Section 
59-2-405.1
;
[
(D)
] 
(C)
 Section 
59-2-405.2
; [
or
]
[
(E)
] 
(D)
 Section 
59-2-405.3
[
.
]
; or
(E) Section 
72-10-110.5
.
(n) "Wind system" means a system of apparatus and equipment that is capable of:
(i) intercepting and converting wind energy into mechanical or electrical energy; and
(ii) transferring these forms of energy by a separate apparatus to the point of use or
storage.
(2) A claimant, estate, or trust may claim an energy system tax credit as provided in
this section against a tax due under this chapter for a taxable year.
(3) For a taxable year beginning on or before December 31, 2021, a claimant, estate, or
trust may claim a nonrefundable tax credit under this section with respect to a residential unit
the claimant, estate, or trust owns or uses if:
(a) the claimant, estate, or trust:
(i) purchases and completes a residential energy system to supply all or part of the
energy required for the residential unit; or
(ii) participates in the financing of a residential energy system to supply all or part of
the energy required for the residential unit;
(b) the residential energy system is installed on or after January 1, 2007; and
(c) the claimant, estate, or trust obtains a written certification from the office in
accordance with Subsection (5).
(4) (a) For a residential energy system, other than a photovoltaic system, the tax credit
described in this section is equal to the lesser of:
(i) 25% of the reasonable costs, including installation costs, of each residential energy
system installed with respect to each residential unit the claimant, estate, or trust owns or uses;
and
(ii) $2,000.
(b) Subject to Subsection (5)(d), for a residential energy system that is a photovoltaic
system, the tax credit described in this section is equal to the lesser of:
(i) 25% of the reasonable costs, including installation costs, of each system installed
with respect to each residential unit the claimant, estate, or trust owns or uses; or
(ii) (A) for a system installed on or after January 1, 2007, but before December 31,
2017, $2,000;
(B) for a system installed on or after January 1, 2018, but on or before December 31,
2018, $1,600;
(C) for a system installed on or after January 1, 2019, but on or before December 31,
2019, $1,200;
(D) for a system installed on or after January 1, 2020, but on or before December 31,
2020, $800; and
(E) for a system installed on or after January 1, 2021, but on or before December 31,
2021, $400.
(c) (i) The office shall determine the amount of the tax credit that a claimant, estate, or
trust may claim and list that amount on the written certification that the office issues under
Subsection (5).
(ii) The claimant, estate, or trust may claim the tax credit in the amount listed on the
written certification that the office issues under Subsection (5).
(d) A claimant, estate, or trust may claim a tax credit under Subsection (3) for the
taxable year in which the residential energy system is installed.
(e) If the amount of a tax credit listed on the written certification exceeds a claimant's,
estate's, or trust's tax liability under this chapter for a taxable year, the claimant, estate, or trust
may carry forward the amount of the tax credit exceeding the liability for a period that does not
exceed the next four taxable years.
(f) A claimant, estate, or trust may claim a tax credit with respect to additional
residential energy systems or parts of residential energy systems for a subsequent taxable year
if the total amount of tax credit the claimant, estate, or trust claims does not exceed $2,000 per
residential unit.
(g) (i) Subject to Subsections (4)(g)(ii) and (iii), a claimant, estate, or trust that leases a
residential energy system installed on a residential unit may claim a tax credit under Subsection
(3) if the claimant, estate, or trust confirms that the lessor irrevocably elects not to claim the tax
credit.
(ii) A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a residential
energy system may claim as a tax credit under Subsection (3) only the principal recovery
portion of the lease payments.
(iii) A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a
residential energy system may claim a tax credit under Subsection (3) for a period that does not
exceed seven taxable years after the date the lease begins, as stated in the lease agreement.
(h) If a claimant, estate, or trust sells a residential unit to another person before the
claimant, estate, or trust claims the tax credit under Subsection (3):
(i) the claimant, estate, or trust may assign the tax credit to the other person; and
(ii) (A) if the other person files a return under Chapter 7, Corporate Franchise and
Income Taxes, the other person may claim the tax credit as if the other person had met the
requirements of Section 
59-7-614
 to claim the tax credit; or
(B) if the other person files a return under this chapter, the other person may claim the
tax credit under this section as if the other person had met the requirements of this section to
claim the tax credit.
(5) (a) Before a claimant, estate, or trust may claim a tax credit under this section, the
claimant, estate, or trust shall obtain a written certification from the office.
(b) The office shall issue a claimant, estate, or trust a written certification if the office
determines that:
(i) the claimant, estate, or trust meets the requirements of this section to receive a tax
credit; and
(ii) the office determines that the residential energy system with respect to which the
claimant, estate, or trust seeks to claim a tax credit:
(A) has been completely installed;
(B) is a viable system for saving or producing energy from renewable resources; and
(C) is safe, reliable, efficient, and technically feasible to ensure that the residential
energy system uses the state's renewable and nonrenewable energy resources in an appropriate
and economic manner.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
office may make rules:
(i) for determining whether a residential energy system meets the requirements of
Subsection (5)(b)(ii); and
(ii) for purposes of determining the amount of a tax credit that a claimant, estate, or
trust may receive under Subsection (4), establishing the reasonable costs of a residential energy
system, as an amount per unit of energy production.
(d) A claimant, estate, or trust that obtains a written certification from the office shall
retain the certification for the same time period a person is required to keep books and records
under Section 
59-1-1406
.
(6) A tax credit under this section is in addition to any tax credits provided under the
laws or rules and regulations of the United States.
(7) A purchaser of one or more solar units that claims a tax credit under Section
59-10-1024
 for the purchase of the one or more solar units may not claim a tax credit under this
section for that purchase.
Section 6. Section 
72-10-109
 is amended to read:
72-10-109.
Certificate of registration of aircraft required -- Exceptions.
(1) (a) A person may not operate, pilot, or navigate, or cause or authorize to be
operated, piloted, or navigated within this state any civil aircraft [
located
] 
domiciled
 in this
state unless the aircraft has a current certificate of registration issued by [
this state through the
county in which the aircraft is located
] 
the department
.
(b) [
This
] 
The
 restriction 
described in Subsection (1)(a)
 does not apply to aircraft
licensed by a foreign country with which the United States has a reciprocal agreement covering
the operations of the registered aircraft or to a non-passenger-carrying flight solely for
inspection or test purposes authorized by the Federal Aviation Administration to be made
without the certificate of registration.
(2) Aircraft 
centrally
 assessed by the State Tax Commission are exempt from the state
registration requirement under Subsection (1).
(3) Unmanned aircraft as defined in Section 
72-14-102
 are exempt from the state
registration requirement under Subsection (1).
Section 7. Section 
72-10-110
 is amended to read:
72-10-110.
Aircraft registration information requirements -- Registration fee --
Administration -- Partial year registration.
(1) All applications for aircraft registration shall contain:
(a) a description of the aircraft, including:
(i) the manufacturer or builder;
(ii) the 
Federal Aviation Administration
 aircraft registration number, type, year of
manufacture, or if an experimental aircraft, the year the aircraft was completed and certified for
air worthiness by an inspector of the Federal Aviation Administration; and
(iii) gross weight;
(b) the name and address of the owner of the aircraft; and
(c) where the aircraft is located, or the address where the aircraft is usually used or
based.
(2) (a) Except as provided in Subsection (3), at the time application is made for
registration or renewal of registration of an aircraft under this chapter, an annual registration
fee of 0.4% of the average wholesale value of the aircraft shall be paid.
(b) For purposes of calculating the 
average wholesale
 value of [
the
] 
an
 aircraft under
Subsection (2)(a) or (3)(d), the [
State Tax Commission
] 
department
 shall use the average
wholesale value as stated in the Aircraft Bluebook Price Digest.
(c) For an aircraft not listed in the Aircraft Bluebook Price Digest, the department shall
calculate the average wholesale value of the aircraft using common industry standards.
(d) (i) An owner of an aircraft may challenge the department's calculation of the
average wholesale value of the aircraft.
(ii) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to establish a process for challenging the department's
calculation under Subsection (2)(d)(i).
(3) (a) An annual registration fee of $100 is imposed on [
the following aircraft
] 
an
aircraft that is used
:
[
(i) an aircraft not listed in the Aircraft Bluebook Price Digest;
]
[
(ii) an experimental aircraft; or
]
[
(iii) an aircraft that is used:
]
[
(A)
] 
(i)
 exclusively by an entity that is exempt from federal income taxation under
Section 501(c)(3), Internal Revenue Code, and exempt from property taxation under Title 59,
Chapter 2, Property Tax Act; and
[
(B)
] 
(ii)
 for the emergency transportation of medical patients for at least 95% of its
flight time.
(b) An annual registration fee is imposed on an aircraft [
] 
 years or older equal to
the lesser of:
(i) $100; or
(ii) the annual registration fee provided for under Subsection (2)(a).
[
(c) An aircraft that
]
(c) (i) Except as provided in Subsection (3)(c)(iii), an owner of an aircraft shall apply
for a certificate of registration described in Section 
72-10-109
, if the aircraft:
(A) is in the manufacture, construction, fabrication, assembly, or repair process;
(B) is not complete; and
(C)
 does not have a valid airworthiness certificate [
for a period of six months or more:
(i) may not apply for a certificate of registration required under Section 
72-10-109
; and
]
.
(ii) 
An aircraft described in Subsection (3)(c)(i)
 is exempt from [
an
] 
the
 annual
registration fee [
until the aircraft has a valid airworthiness certificate.
] 
described in Subsection
(2)(a).
(iii) The registration requirement described in Subsection (3)(c)(i) does not apply to an
aircraft that, in accordance with Section 
59-12-104
, is exempt from the taxes imposed under
Title 59, Chapter 12, Sales and Use Tax Act.
(d) An annual registration fee of .25% of the average wholesale value of the aircraft is
imposed on an aircraft if the aircraft is:
(i) used by an air charter service for air charter; and
(ii) owned by a person other than the air charter service.
(e) The annual registration fee required in this section is due on December 31 of each
year.
(4) (a) The [
State Tax Commission
] 
department
 shall provide a registration card to an
owner of an aircraft if:
(i) the owner complies with the registration requirements of this section; and
(ii) the owner of the aircraft states that the aircraft has a valid airworthiness certificate.
(b) An owner of an aircraft shall carry the registration card in the registered aircraft.
(5) The registration fees assessed under this chapter shall be collected by the [
State Tax
Commission
] 
department
 to be distributed as provided in Subsection (6).
(6) After deducting the costs of administering all aircraft registrations under this
chapter, the [
State Tax Commission
] 
department
 shall deposit all remaining aircraft registration
fees in the Aeronautics Restricted Account created by Section 
72-2-126
.
(7) Aircraft which are 
initially
 registered under this chapter for less than a full calendar
year shall be charged a registration fee which is reduced in proportion to the fraction of the
calendar year during which the aircraft is registered in this state.
(8) (a) For purposes of this section, 
an
 aircraft based at the owner's airport means an
aircraft that is hangared, tied down, or parked at an owner's airport for a plurality of the year.
(b) Semi-annually, an owner or operator of an airport open to public use
, or of an
airport that receives grant funding from the state,
 shall provide a list of all aircraft based at the
owner's airport to the [
Utah Division of Aeronautics
] 
department
.
(9) [
(a) The Utah Division of Aeronautics
] 
The department
 shall maintain a statewide
database of all aircraft based within the state.
[
(b) On or before October 1 of each year, the Utah Division of Aeronautics shall
provide the State Tax Commission with the data the State Tax Commission requires from the
database described in Subsection (9)(a).
]
[
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may by rule define the contents of the database described in Subsection (9)(a).
]
[
(d) The State Tax Commission shall annually provide the Utah Division of
Aeronautics a list of all aircraft registered in this state.
]
(10) The [
State Tax Commission
] 
department
 may suspend or revoke a registration if
[
it
] 
the department
 determines that the required fee has not been paid and the fee is not paid
upon reasonable notice and demand.
Section 8. Section 
72-10-110.5
 is enacted to read:
 72-10-110.5.
Uniform fee on aircraft -- Collection of fee by department --
Distribution of fees.
(1) In accordance with Utah Constitution, Article XIII, Section 2, Subsection (6),
beginning on January 1, 2009, an aircraft required to be registered with the state is:
(a) exempt from the tax imposed by Section 
59-2-103
; and
(b) in lieu of the tax imposed by Section 
59-2-103
, subject to a uniform statewide fee
of $25, assessed in accordance with Section 
59-2-407
.
(2) (a) The department shall collect the uniform fee and distribute the uniform fee to
the county in which the aircraft is based.
(b) A based aircraft is an aircraft that is hangared, tied down, parked, or domiciled in
the state for a plurality of the year.
(3) (a) The uniform fees received by a county under Subsection (2) shall be distributed
to each taxing entity within the county in the same proportion in which revenues collected from
the ad valorem property tax are distributed.
(b) Each taxing entity described in Subsection (3)(a) that receives revenues from the
uniform fee imposed by this section shall distribute the revenues in the same proportion in
which revenues collected from the ad valorem property tax are distributed.
(4) The remedies for nonpayment of the uniform fee described in this section are as
described in Section 
59-2-407
.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
department may make rules to implement this section.
Section 9. Section 
72-10-112
 is amended to read:
72-10-112.
Failure to register -- Penalty -- Compliance audits and inspections --
Rulemaking.
(1) Failure to register any aircraft required to be registered with the state [
in the county
in which the aircraft is located
] subjects the owners of the aircraft to the same penalties
provided for motor vehicles under Sections 
41-1a-1101
, 
41-1a-1301
, and 
41-1a-1307
.
(2) (a) The [
division
] 
department
 shall conduct compliance audits and inspections as
needed to enforce state laws related to the registration of aircraft.
(b) The [
division
] 
department
 shall coordinate with airport operators to determine and
verify accurate reporting of aircraft that are based within the state for the purpose of
administering and enforcing state aircraft registration laws.
(3) (a) In addition to the penalties described in Subsection (1), the [
division
]
department
 may impose a fine of 10% of the registration fee for the first month and 5% of the
registration fee for each subsequent month an aircraft is operated in violation of Section
72-10-109
.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
[
division
] 
department
 shall makes rules establishing procedures for the enforcement of state
aircraft registration laws and the administration of penalties described in this section.
(c) The [
division
] 
department
 shall comply with the procedures and requirements of
Title 63G, Chapter 4, Administrative Procedures Act, in all adjudicative proceedings conducted
for the enforcement of penalties under this section.
Section 10. 
Repealer.
This bill repeals:
Section 
59-2-404
,
Uniform fee on aircraft -- Collection of fee by commission --
Distribution of fees.
Section 11. 
Effective date.
This bill takes effect on January 1, 2019.