UT
Utah House Bill HB0528

Utah 2025 Regular Session

Utah House Bill HB0528 Compare Versions

OldNewDifferences
1-03-03 07:13 1st Sub. (Buff) H.B. 528
2-Ken Ivory proposes the following substitute bill:
1+02-19 13:42 H.B. 528
32 1
43 Tax Payments with Precious Metals
54 2025 GENERAL SESSION
65 STATE OF UTAH
76 Chief Sponsor: Ken Ivory
87 Senate Sponsor:
98 2
109
1110 3
1211 LONG TITLE
1312 4
1413 General Description:
1514 5
1615 This bill modifies provisions related to tax payments.
1716 6
1817 Highlighted Provisions:
1918 7
2019 This bill:
2120 8
2221 ▸ allows a person to pay in gold mining severance taxes and income taxes;
2322 9
2423 ▸ for specified years, provides:
2524 10
2625 ● a reduced severance tax rate for taxpayers who pay in gold; and
2726 11
2827 ● a nonrefundable income tax credit for mine operators who pay in gold; and
2928 12
3029 ▸ makes technical and conforming changes.
3130 13
3231 Money Appropriated in this Bill:
3332 14
3433 None
3534 15
3635 Other Special Clauses:
3736 16
38-This bill provides a special effective date.
37+None
3938 17
4039 Utah Code Sections Affected:
4140 18
4241 AMENDS:
4342 19
4443 51-9-306, as last amended by Laws of Utah 2024, Chapter 25
4544 20
4645 51-9-307, as last amended by Laws of Utah 2024, Chapter 25
4746 21
4847 59-1-403, as last amended by Laws of Utah 2024, Chapters 25, 35
4948 22
49+59-5-201, as last amended by Laws of Utah 1990, Chapter 287
50+23
5051 59-5-202, as last amended by Laws of Utah 2024, Chapter 25
51-23
52+24
5253 59-5-203, as last amended by Laws of Utah 2024, Chapter 25
53-24
54+25
5455 59-5-207, as last amended by Laws of Utah 2024, Chapter 25
55-25
56+26
5657 59-5-215, as last amended by Laws of Utah 2024, Chapter 25
57-26
58+27
5859 59-7-504, as last amended by Laws of Utah 2021, Chapter 367
59-27
60+28
6061 59-7-532, as last amended by Laws of Utah 2022, Chapter 456
61-28
62+29
6263 59-7-536, as renumbered and amended by Laws of Utah 1993, Chapter 169
63-29
64+30
6465 59-10-514, as last amended by Laws of Utah 2021, Chapter 367
65-1st Sub. H.B. 528 1st Sub. (Buff) H.B. 528 03-03 07:13
66-30
66+ H.B. 528 H.B. 528 02-19 13:42
67+31
6768 59-10-520, as renumbered and amended by Laws of Utah 1987, Chapter 2
68-31
69+32
6970 59-10-544, as last amended by Laws of Utah 2022, Chapter 456
70-32
71+33
7172 65A-6-4, as last amended by Laws of Utah 2024, Chapter 25
72-33
73+34
7374 65A-17-306, as enacted by Laws of Utah 2024, Chapter 25
74-34
75+35
7576 ENACTS:
76-35
77+36
7778 59-7-627, Utah Code Annotated 1953
78-36
79+37
7980 59-10-1048, Utah Code Annotated 1953
80-37
81+38
8182
82-38
83+39
8384 Be it enacted by the Legislature of the state of Utah:
84-39
85+40
8586 Section 1. Section 51-9-306 is amended to read:
86-40
87+41
8788 51-9-306 . Deposit of certain severance tax revenue for specified state agencies.
88-41
89+42
8990 (1) As used in this section:
90-42
91+43
9192 (a) "Aggregate annual revenue" means the aggregate annual revenue collected in a fiscal
92-43
93+44
9394 year from the taxes imposed under Title 59, Chapter 5, Severance Tax on Oil, Gas,
94-44
95+45
9596 and Mining, after subtracting the amounts required to be distributed under Sections
96-45
97+46
9798 51-9-305, 59-5-116, and 59-5-119 and under Subsection [59-5-202(5)(c)]
98-46
99+47
99100 59-5-202(7)(c).
100-47
101+48
101102 (b) "Aggregate annual mining revenue" means the aggregate annual revenue collected in
102-48
103+49
103104 a fiscal year from taxes imposed under Title 59, Chapter 5, Part 2, Mining Severance
104-49
105+50
105106 Tax, after subtracting the amounts required to be distributed under Section 51-9-305
106-50
107+51
107108 and under Subsection [59-5-202(5)(c)] 59-5-202(7)(c).
108-51
109+52
109110 (c) "Aggregate annual oil and gas revenue" means the aggregate annual revenue
110-52
111+53
111112 collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Part 1, Oil
112-53
113+54
113114 and Gas Severance Tax, after subtracting the amounts required to be distributed
114-54
115+55
115116 under Sections 51-9-305, 59-5-116, and 59-5-119.
116-55
117+56
117118 (d) "Average aggregate annual revenue" means the three-year rolling average of the
118-56
119+57
119120 aggregate annual revenue collected in a fiscal year from the taxes imposed under
120-57
121+58
121122 Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining:
122-58
123+59
123124 (i) after subtracting the amounts required to be distributed under Sections 51-9-305,
124-59
125+60
125126 59-5-116, and 59-5-119 and under Subsection [59-5-202(5)(c)] 59-5-202(7)(c); and
126-60
127+61
127128 (ii) ending in the fiscal year immediately preceding the fiscal year of a deposit
128-61
129+62
129130 required by this section.
130-62
131+63
131132 (e) "Average aggregate annual mining revenue" means the three-year rolling average of
132-63
133+64
133134 the aggregate annual revenue collected in a fiscal year from the taxes imposed under
134-- 2 - 03-03 07:13 1st Sub. (Buff) H.B. 528
135-64
135+- 2 - 02-19 13:42 H.B. 528
136+65
136137 Title 59, Chapter 5, Part 2, Mining Severance Tax:
137-65
138+66
138139 (i) after subtracting the amounts required to be distributed under Section 51-9-305
139-66
140+67
140141 and under Subsection [59-5-202(5)(c)] 59-5-202(7)(c); and
141-67
142+68
142143 (ii) ending in the fiscal year immediately preceding the fiscal year of a deposit
143-68
144+69
144145 required by this section.
145-69
146+70
146147 (f) "Average aggregate annual oil and gas revenue" means the three-year rolling average
147-70
148+71
148149 of the aggregate annual revenue collected in a fiscal year from the taxes imposed
149-71
150+72
150151 under Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax:
151-72
152+73
152153 (i) after subtracting the amounts required to be distributed under Sections 51-9-305,
153-73
154+74
154155 59-5-116, and 59-5-119; and
155-74
156+75
156157 (ii) ending in the fiscal year immediately preceding the fiscal year of a deposit
157-75
158+76
158159 required by this section.
159-76
160+77
160161 (2) After making the deposits of oil and gas severance tax revenue as required under
161-77
162+78
162163 Sections 59-5-116 and 59-5-119 and making the credits under Section 51-9-305, for a
163-78
164+79
164165 fiscal year beginning on or after July 1, 2021, the State Tax Commission shall annually
165-79
166+80
166167 make the following deposits:
167-80
168+81
168169 (a) to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in
169-81
170+82
170171 Section 19-2a-106, the following average aggregate annual revenue:
171-82
172+83
172173 (i) 2.75% of the first $50,000,000 of the average aggregate annual revenue;
173-83
174+84
174175 (ii) 1% of the next $50,000,000 of the average aggregate annual revenue; and
175-84
176+85
176177 (iii) .5% of the average aggregate annual revenue that exceeds $100,000,000;
177-85
178+86
178179 (b) to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created in
179-86
180+87
180181 Section 19-5-126, the following average aggregate annual revenue:
181-87
182+88
182183 (i) .4% of the first $50,000,000 of the average aggregate annual revenue;
183-88
184+89
184185 (ii) .15% of the next $50,000,000 of the average aggregate annual revenue; and
185-89
186+90
186187 (iii) .08% of the average aggregate annual revenue that exceeds $100,000,000;
187-90
188+91
188189 (c) to the Division of Oil, Gas, and Mining Restricted Account, created in Section
189-91
190+92
190191 40-6-23, the following:
191-92
192+93
192193 (i)(A) 11.5% of the first $50,000,000 of the average aggregate annual mining
193-93
194+94
194195 revenue;
195-94
196+95
196197 (B) 3% of the next $50,000,000 of the average aggregate annual mining revenue;
197-95
198+96
198199 and
199-96
200+97
200201 (C) 1% of the average aggregate annual mining revenue that exceeds
201-97
202+98
202203 $100,000,000; and
203-- 3 - 1st Sub. (Buff) H.B. 528 03-03 07:13
204-98
204+- 3 - H.B. 528 02-19 13:42
205+99
205206 (ii)(A) 18% of the first $50,000,000 of the average aggregate annual oil and gas
206-99
207+100
207208 revenue;
208-100
209+101
209210 (B) 3% of the next $50,000,000 of the average aggregate annual oil and gas
210-101
211+102
211212 revenue; and
212-102
213+103
213214 (C) 1% of the average aggregate annual oil and gas revenue that exceeds
214-103
215+104
215216 $100,000,000; and
216-104
217+105
217218 (d) to the Utah Geological Survey Restricted Account, created in Section 79-3-403, the
218-105
219+106
219220 following average aggregate annual revenue:
220-106
221+107
221222 (i) 2.5% of the first $50,000,000 of the average aggregate annual revenue;
222-107
223+108
223224 (ii) 1% of the next $50,000,000 of the average aggregate annual revenue; and
224-108
225+109
225226 (iii) .5% of the average aggregate annual revenue that exceeds $100,000,000.
226-109
227+110
227228 (3) If the money collected in a fiscal year from the taxes imposed under Title 59, Chapter 5,
228-110
229+111
229230 Severance Tax on Oil, Gas, and Mining, is insufficient to make the deposits required by
230-111
231+112
231232 Subsection (2), the State Tax Commission shall deposit money collected in the fiscal
232-112
233+113
233234 year as follows:
234-113
235+114
235236 (a) to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in
236-114
237+115
237238 Section 19-2a-106, the following revenue:
238-115
239+116
239240 (i) 2.75% of the first $50,000,000 of the aggregate annual revenue;
240-116
241+117
241242 (ii) 1% of the next $50,000,000 of the aggregate annual revenue; and
242-117
243+118
243244 (iii) .5% of the aggregate annual revenue that exceeds $100,000,000;
244-118
245+119
245246 (b) to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created in
246-119
247+120
247248 Section 19-5-126, the following revenue:
248-120
249+121
249250 (i) .4% of the first $50,000,000 of the aggregate annual revenue;
250-121
251+122
251252 (ii) .15% of the next $50,000,000 of the aggregate annual revenue; and
252-122
253+123
253254 (iii) .08% of the aggregate annual revenue that exceeds $100,000,000;
254-123
255+124
255256 (c) to the Division of Oil, Gas, and Mining Restricted Account, created in Section
256-124
257+125
257258 40-6-23, the following:
258-125
259+126
259260 (i)(A) 11.5% of the first $50,000,000 of the aggregate annual mining revenue;
260-126
261+127
261262 (B) 3% of the next $50,000,000 of the aggregate annual mining revenue; and
262-127
263+128
263264 (C) 1% of the aggregate annual mining revenue that exceeds $100,000,000; and
264-128
265+129
265266 (ii)(A) 18% of the first $50,000,000 of the aggregate annual oil and gas revenue;
266-129
267+130
267268 (B) 3% of the next $50,000,000 of the aggregate annual oil and gas revenue; and
268-130
269+131
269270 (C) 1% of the aggregate annual oil and gas revenue that exceeds $100,000,000;
270-131
271+132
271272 and
272-- 4 - 03-03 07:13 1st Sub. (Buff) H.B. 528
273-132
273+- 4 - 02-19 13:42 H.B. 528
274+133
274275 (d) to the Utah Geological Survey Restricted Account, created in Section 79-3-403, the
275-133
276+134
276277 following revenue:
277-134
278+135
278279 (i) 2.5% of the first $50,000,000 of the aggregate annual revenue;
279-135
280+136
280281 (ii) 1% of the next $50,000,000 of the aggregate annual revenue; and
281-136
282+137
282283 (iii) .5% of the aggregate annual revenue that exceeds $100,000,000.
283-137
284+138
284285 (4) The severance tax revenues deposited under this section into restricted accounts for the
285-138
286+139
286287 state agencies specified in Subsection (2) and appropriated from the restricted accounts
287-139
288+140
288289 offset and supplant General Fund appropriations used to pay the costs of programs or
289-140
290+141
290291 projects administered by the state agencies that are primarily related to oil, gas, and
291-141
292+142
292293 mining.
293-142
294+143
294295 Section 2. Section 51-9-307 is amended to read:
295-143
296+144
296297 51-9-307 . New Severance Tax Revenue Special Revenue Fund.
297-144
298+145
298299 (1) As used in this section:
299-145
300+146
300301 (a) "Fund" means the New Severance Tax Revenue Special Revenue Fund created in
301-146
302+147
302303 this section.
303-147
304+148
304305 (b) "New revenue" means revenue collected above $100,000,000 from the taxes imposed
305-148
306+149
306307 under Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining, after subtracting
307-149
308+150
308309 the amounts required to be distributed under Sections 51-9-305, 51-9-306, 59-5-116,
309-150
310+151
310311 59-5-119, and 59-5-121 and under Subsection [59-5-202(5)(c)] 59-5-202(7)(c).
311-151
312+152
312313 (2) There is created a special revenue fund known as the "New Severance Tax Revenue
313-152
314+153
314315 Special Revenue Fund" that consists of:
315-153
316+154
316317 (a) money deposited by the State Tax Commission in accordance with this section; and
317-154
318+155
318319 (b) interest earned on the money in the fund.
319-155
320+156
320321 (3) Beginning July 1, 2021, the State Tax Commission shall deposit into the fund 100% of
321-156
322+157
322323 new revenue until the new revenue equals or exceeds $200,000,000 in a fiscal year.
323-157
324+158
324325 Section 3. Section 59-1-403 is amended to read:
325-158
326+159
326327 59-1-403 . Confidentiality -- Exceptions -- Penalty -- Application to property tax.
327-159
328+160
328329 (1) As used in this section:
329-160
330+161
330331 (a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
331-161
332+162
332333 (i) the commission administers under:
333-162
334+163
334335 (A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax
335-163
336+164
336337 Act;
337-164
338+165
338339 (B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
339-165
340+166
340341 (C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
341-- 5 - 1st Sub. (Buff) H.B. 528 03-03 07:13
342-166
342+- 5 - H.B. 528 02-19 13:42
343+167
343344 (D) Section 19-6-805;
344-167
345+168
345346 (E) Section 63H-1-205; or
346-168
347+169
347348 (F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
348-169
349+170
349350 Charges; and
350-170
351+171
351352 (ii) with respect to which the commission distributes the revenue collected from the
352-171
353+172
353354 tax, fee, or charge to a qualifying jurisdiction.
354-172
355+173
355356 (b) "Qualifying jurisdiction" means:
356-173
357+174
357358 (i) a county, city, or town;
358-174
359+175
359360 (ii) the military installation development authority created in Section 63H-1-201; or
360-175
361+176
361362 (iii) the Utah Inland Port Authority created in Section 11-58-201.
362-176
363+177
363364 (2)(a) Any of the following may not divulge or make known in any manner any
364-177
365+178
365366 information gained by that person from any return filed with the commission:
366-178
367+179
367368 (i) a tax commissioner;
368-179
369+180
369370 (ii) an agent, clerk, or other officer or employee of the commission; or
370-180
371+181
371372 (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
372-181
373+182
373374 town.
374-182
375+183
375376 (b) An official charged with the custody of a return filed with the commission is not
376-183
377+184
377378 required to produce the return or evidence of anything contained in the return in any
378-184
379+185
379380 action or proceeding in any court, except:
380-185
381+186
381382 (i) in accordance with judicial order;
382-186
383+187
383384 (ii) on behalf of the commission in any action or proceeding under:
384-187
385+188
385386 (A) this title; or
386-188
387+189
387388 (B) other law under which persons are required to file returns with the
388-189
389+190
389390 commission;
390-190
391+191
391392 (iii) on behalf of the commission in any action or proceeding to which the
392-191
393+192
393394 commission is a party; or
394-192
395+193
395396 (iv) on behalf of any party to any action or proceeding under this title if the report or
396-193
397+194
397398 facts shown by the return are directly involved in the action or proceeding.
398-194
399+195
399400 (c) Notwithstanding Subsection (2)(b), a court may require the production of, and may
400-195
401+196
401402 admit in evidence, any portion of a return or of the facts shown by the return, as are
402-196
403+197
403404 specifically pertinent to the action or proceeding.
404-197
405+198
405406 (3) This section does not prohibit:
406-198
407+199
407408 (a) a person or that person's duly authorized representative from receiving a copy of any
408-199
409+200
409410 return or report filed in connection with that person's own tax;
410-- 6 - 03-03 07:13 1st Sub. (Buff) H.B. 528
411-200
411+- 6 - 02-19 13:42 H.B. 528
412+201
412413 (b) the publication of statistics as long as the statistics are classified to prevent the
413-201
414+202
414415 identification of particular reports or returns; and
415-202
416+203
416417 (c) the inspection by the attorney general or other legal representative of the state of the
417-203
418+204
418419 report or return of any taxpayer:
419-204
420+205
420421 (i) who brings action to set aside or review a tax based on the report or return;
421-205
422+206
422423 (ii) against whom an action or proceeding is contemplated or has been instituted
423-206
424+207
424425 under this title; or
425-207
426+208
426427 (iii) against whom the state has an unsatisfied money judgment.
427-208
428+209
428429 (4)(a) Notwithstanding Subsection (2) and for purposes of administration, the
429-209
430+210
430431 commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
431-210
432+211
432433 Administrative Rulemaking Act, provide for a reciprocal exchange of information
433-211
434+212
434435 with:
435-212
436+213
436437 (i) the United States Internal Revenue Service; or
437-213
438+214
438439 (ii) the revenue service of any other state.
439-214
440+215
440441 (b) Notwithstanding Subsection (2) and for all taxes except individual income tax and
441-215
442+216
442443 corporate franchise tax, the commission may by rule, made in accordance with Title
443-216
444+217
444445 63G, Chapter 3, Utah Administrative Rulemaking Act, share information gathered
445-217
446+218
446447 from returns and other written statements with the federal government, any other
447-218
448+219
448449 state, any of the political subdivisions of another state, or any political subdivision of
449-219
450+220
450451 this state, except as limited by Sections 59-12-209 and 59-12-210, if the political
451-220
452+221
452453 subdivision, other state, or the federal government grant substantially similar
453-221
454+222
454455 privileges to this state.
455-222
456+223
456457 (c) Notwithstanding Subsection (2) and for all taxes except individual income tax and
457-223
458+224
458459 corporate franchise tax, the commission may by rule, in accordance with Title 63G,
459-224
460+225
460461 Chapter 3, Utah Administrative Rulemaking Act, provide for the issuance of
461-225
462+226
462463 information concerning the identity and other information of taxpayers who have
463-226
464+227
464465 failed to file tax returns or to pay any tax due.
465-227
466+228
466467 (d) Notwithstanding Subsection (2), the commission shall provide to the director of the
467-228
468+229
468469 Division of Environmental Response and Remediation, as defined in Section
469-229
470+230
470471 19-6-402, as requested by the director of the Division of Environmental Response
471-230
472+231
472473 and Remediation, any records, returns, or other information filed with the
473-231
474+232
474475 commission under Chapter 13, Motor and Special Fuel Tax Act, or Section
475-232
476+233
476477 19-6-410.5 regarding the environmental assurance program participation fee.
477-233
478+234
478479 (e) Notwithstanding Subsection (2), at the request of any person the commission shall
479-- 7 - 1st Sub. (Buff) H.B. 528 03-03 07:13
480-234
480+- 7 - H.B. 528 02-19 13:42
481+235
481482 provide that person sales and purchase volume data reported to the commission on a
482-235
483+236
483484 report, return, or other information filed with the commission under:
484-236
485+237
485486 (i) Chapter 13, Part 2, Motor Fuel; or
486-237
487+238
487488 (ii) Chapter 13, Part 4, Aviation Fuel.
488-238
489+239
489490 (f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer,
490-239
491+240
491492 as defined in Section 59-22-202, the commission shall report to the manufacturer:
492-240
493+241
493494 (i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
494-241
495+242
495496 manufacturer and reported to the commission for the previous calendar year under
496-242
497+243
497498 Section 59-14-407; and
498-243
499+244
499500 (ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
500-244
501+245
501502 manufacturer for which a tax refund was granted during the previous calendar
502-245
503+246
503504 year under Section 59-14-401 and reported to the commission under Subsection
504-246
505+247
505506 59-14-401(1)(a)(v).
506-247
507+248
507508 (g) Notwithstanding Subsection (2), the commission shall notify manufacturers,
508-248
509+249
509510 distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is
510-249
511+250
511512 prohibited from selling cigarettes to consumers within the state under Subsection
512-250
513+251
513514 59-14-210(2).
514-251
515+252
515516 (h) Notwithstanding Subsection (2), the commission may:
516-252
517+253
517518 (i) provide to the Division of Consumer Protection within the Department of
518-253
519+254
519520 Commerce and the attorney general data:
520-254
521+255
521522 (A) reported to the commission under Section 59-14-212; or
522-255
523+256
523524 (B) related to a violation under Section 59-14-211; and
524-256
525+257
525526 (ii) upon request, provide to any person data reported to the commission under
526-257
527+258
527528 Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
528-258
529+259
529530 (i) Notwithstanding Subsection (2), the commission shall, at the request of a committee
530-259
531+260
531532 of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's
532-260
533+261
533534 Office of Planning and Budget, provide to the committee or office the total amount of
534-261
535+262
535536 revenues collected by the commission under Chapter 24, Radioactive Waste Facility
536-262
537+263
537538 Tax Act, for the time period specified by the committee or office.
538-263
539+264
539540 (j) Notwithstanding Subsection (2), the commission shall make the directory required by
540-264
541+265
541542 Section 59-14-603 available for public inspection.
542-265
543+266
543544 (k) Notwithstanding Subsection (2), the commission may share information with federal,
544-266
545+267
545546 state, or local agencies as provided in Subsection 59-14-606(3).
546-267
547+268
547548 (l)(i) Notwithstanding Subsection (2), the commission shall provide the Office of
548-- 8 - 03-03 07:13 1st Sub. (Buff) H.B. 528
549-268
549+- 8 - 02-19 13:42 H.B. 528
550+269
550551 Recovery Services within the Department of Health and Human Services any
551-269
552+270
552553 relevant information obtained from a return filed under Chapter 10, Individual
553-270
554+271
554555 Income Tax Act, regarding a taxpayer who has become obligated to the Office of
555-271
556+272
556557 Recovery Services.
557-272
558+273
558559 (ii) The information described in Subsection (4)(l)(i) may be provided by the Office
559-273
560+274
560561 of Recovery Services to any other state's child support collection agency involved
561-274
562+275
562563 in enforcing that support obligation.
563-275
564+276
564565 (m)(i) Notwithstanding Subsection (2), upon request from the state court
565-276
566+277
566567 administrator, the commission shall provide to the state court administrator, the
567-277
568+278
568569 name, address, telephone number, county of residence, and social security number
569-278
570+279
570571 on resident returns filed under Chapter 10, Individual Income Tax Act.
571-279
572+280
572573 (ii) The state court administrator may use the information described in Subsection
573-280
574+281
574575 (4)(m)(i) only as a source list for the master jury list described in Section
575-281
576+282
576577 78B-1-106.
577-282
578+283
578579 (n)(i) As used in this Subsection (4)(n):
579-283
580+284
580581 (A) "GOEO" means the Governor's Office of Economic Opportunity created in
581-284
582+285
582583 Section 63N-1a-301.
583-285
584+286
584585 (B) "Income tax information" means information gained by the commission that is
585-286
586+287
586587 required to be attached to or included in a return filed with the commission
587-287
588+288
588589 under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10,
589-288
590+289
590591 Individual Income Tax Act.
591-289
592+290
592593 (C) "Other tax information" means information gained by the commission that is
593-290
594+291
594595 required to be attached to or included in a return filed with the commission
595-291
596+292
596597 except for a return filed under Chapter 7, Corporate Franchise and Income
597-292
598+293
598599 Taxes, or Chapter 10, Individual Income Tax Act.
599-293
600+294
600601 (D) "Tax information" means income tax information or other tax information.
601-294
602+295
602603 (ii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
603-295
604+296
604605 (4)(n)(ii)(B) or (C), the commission shall at the request of GOEO provide to
605-296
606+297
606607 GOEO all income tax information.
607-297
608+298
608609 (B) For purposes of a request for income tax information made under Subsection
609-298
610+299
610611 (4)(n)(ii)(A), GOEO may not request and the commission may not provide to
611-299
612+300
612613 GOEO a person's address, name, social security number, or taxpayer
613-300
614+301
614615 identification number.
615-301
616+302
616617 (C) In providing income tax information to GOEO, the commission shall in all
617-- 9 - 1st Sub. (Buff) H.B. 528 03-03 07:13
618-302
618+- 9 - H.B. 528 02-19 13:42
619+303
619620 instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
620-303
621+304
621622 (iii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
622-304
623+305
623624 (4)(n)(iii)(B), the commission shall at the request of GOEO provide to GOEO
624-305
625+306
625626 other tax information.
626-306
627+307
627628 (B) Before providing other tax information to GOEO, the commission shall redact
628-307
629+308
629630 or remove any name, address, social security number, or taxpayer identification
630-308
631+309
631632 number.
632-309
633+310
633634 (iv) GOEO may provide tax information received from the commission in accordance
634-310
635+311
635636 with this Subsection (4)(n) only:
636-311
637+312
637638 (A) as a fiscal estimate, fiscal note information, or statistical information; and
638-312
639+313
639640 (B) if the tax information is classified to prevent the identification of a particular
640-313
641+314
641642 return.
642-314
643+315
643644 (v)(A) A person may not request tax information from GOEO under Title 63G,
644-315
645+316
645646 Chapter 2, Government Records Access and Management Act, or this section,
646-316
647+317
647648 if GOEO received the tax information from the commission in accordance with
648-317
649+318
649650 this Subsection (4)(n).
650-318
651+319
651652 (B) GOEO may not provide to a person that requests tax information in
652-319
653+320
653654 accordance with Subsection (4)(n)(v)(A) any tax information other than the tax
654-320
655+321
655656 information GOEO provides in accordance with Subsection (4)(n)(iv).
656-321
657+322
657658 (o) Notwithstanding Subsection (2), the commission may provide to the governing board
658-322
659+323
659660 of the agreement or a taxing official of another state, the District of Columbia, the
660-323
661+324
661662 United States, or a territory of the United States:
662-324
663+325
663664 (i) the following relating to an agreement sales and use tax:
664-325
665+326
665666 (A) information contained in a return filed with the commission;
666-326
667+327
667668 (B) information contained in a report filed with the commission;
668-327
669+328
669670 (C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
670-328
671+329
671672 (D) a document filed with the commission; or
672-329
673+330
673674 (ii) a report of an audit or investigation made with respect to an agreement sales and
674-330
675+331
675676 use tax.
676-331
677+332
677678 (p) Notwithstanding Subsection (2), the commission may provide information
678-332
679+333
679680 concerning a taxpayer's state income tax return or state income tax withholding
680-333
681+334
681682 information to the Driver License Division if the Driver License Division:
682-334
683+335
683684 (i) requests the information; and
684-335
685+336
685686 (ii) provides the commission with a signed release form from the taxpayer allowing
686-- 10 - 03-03 07:13 1st Sub. (Buff) H.B. 528
687-336
687+- 10 - 02-19 13:42 H.B. 528
688+337
688689 the Driver License Division access to the information.
689-337
690+338
690691 (q) Notwithstanding Subsection (2), the commission shall provide to the Utah
691-338
692+339
692693 Communications Authority, or a division of the Utah Communications Authority, the
693-339
694+340
694695 information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
695-340
696+341
696697 63H-7a-502.
697-341
698+342
698699 (r) Notwithstanding Subsection (2), the commission shall provide to the Utah
699-342
700+343
700701 Educational Savings Plan information related to a resident or nonresident individual's
701-343
702+344
702703 contribution to a Utah Educational Savings Plan account as designated on the
703-344
704+345
704705 resident or nonresident's individual income tax return as provided under Section
705-345
706+346
706707 59-10-1313.
707-346
708+347
708709 (s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
709-347
710+348
710711 Sections 26B-3-106 and 26B-3-903, the commission shall provide an eligibility
711-348
712+349
712713 worker with the Department of Health and Human Services or its designee with the
713-349
714+350
714715 adjusted gross income of an individual if:
715-350
716+351
716717 (i) an eligibility worker with the Department of Health and Human Services or its
717-351
718+352
718719 designee requests the information from the commission; and
719-352
720+353
720721 (ii) the eligibility worker has complied with the identity verification and consent
721-353
722+354
722723 provisions of Sections 26B-3-106 and 26B-3-903.
723-354
724+355
724725 (t) Notwithstanding Subsection (2), the commission may provide to a county, as
725-355
726+356
726727 determined by the commission, information declared on an individual income tax
727-356
728+357
728729 return in accordance with Section 59-10-103.1 that relates to eligibility to claim a
729-357
730+358
730731 residential exemption authorized under Section 59-2-103.
731-358
732+359
732733 (u) Notwithstanding Subsection (2), the commission shall provide a report regarding any
733-359
734+360
734735 access line provider that is over 90 days delinquent in payment to the commission of
735-360
736+361
736737 amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid
737-361
738+362
738739 Wireless Telecommunications Service Charges, to the board of the Utah
739-362
740+363
740741 Communications Authority created in Section 63H-7a-201.
741-363
742+364
742743 (v) Notwithstanding Subsection (2), the commission shall provide the Department of
743-364
744+365
744745 Environmental Quality a report on the amount of tax paid by a radioactive waste
745-365
746+366
746747 facility for the previous calendar year under Section 59-24-103.5.
747-366
748+367
748749 (w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
749-367
750+368
750751 Department of Workforce Services any information received under Chapter 10, Part
751-368
752+369
752753 4, Withholding of Tax, that is relevant to the duties of the Department of Workforce
753-369
754+370
754755 Services.
755-- 11 - 1st Sub. (Buff) H.B. 528 03-03 07:13
756-370
756+- 11 - H.B. 528 02-19 13:42
757+371
757758 (x) Notwithstanding Subsection (2), the commission may provide the Public Service
758-371
759+372
759760 Commission or the Division of Public Utilities information related to a seller that
760-372
761+373
761762 collects and remits to the commission a charge described in Subsection 69-2-405(2),
762-373
763+374
763764 including the seller's identity and the number of charges described in Subsection
764-374
765+375
765766 69-2-405(2) that the seller collects.
766-375
767+376
767768 (y)(i) Notwithstanding Subsection (2), the commission shall provide to each
768-376
769+377
769770 qualifying jurisdiction the collection data necessary to verify the revenue collected
770-377
771+378
771772 by the commission for a distributed tax, fee, or charge collected within the
772-378
773+379
773774 qualifying jurisdiction.
774-379
775+380
775776 (ii) In addition to the information provided under Subsection (4)(y)(i), the
776-380
777+381
777778 commission shall provide a qualifying jurisdiction with copies of returns and other
778-381
779+382
779780 information relating to a distributed tax, fee, or charge collected within the
780-382
781+383
781782 qualifying jurisdiction.
782-383
783+384
783784 (iii)(A) To obtain the information described in Subsection (4)(y)(ii), the chief
784-384
785+385
785786 executive officer or the chief executive officer's designee of the qualifying
786-385
787+386
787788 jurisdiction shall submit a written request to the commission that states the
788-386
789+387
789790 specific information sought and how the qualifying jurisdiction intends to use
790-387
791+388
791792 the information.
792-388
793+389
793794 (B) The information described in Subsection (4)(y)(ii) is available only in official
794-389
795+390
795796 matters of the qualifying jurisdiction.
796-390
797+391
797798 (iv) Information that a qualifying jurisdiction receives in response to a request under
798-391
799+392
799800 this subsection is:
800-392
801+393
801802 (A) classified as a private record under Title 63G, Chapter 2, Government Records
802-393
803+394
803804 Access and Management Act; and
804-394
805+395
805806 (B) subject to the confidentiality requirements of this section.
806-395
807+396
807808 (z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic
808-396
809+397
809810 Beverage Services Commission, upon request, with taxpayer status information
810-397
811+398
811812 related to state tax obligations necessary to comply with the requirements described
812-398
813+399
813814 in Section 32B-1-203.
814-399
815+400
815816 (aa) Notwithstanding Subsection (2), the commission shall inform the Department of
816-400
817+401
817818 Workforce Services, as soon as practicable, whether an individual claimed and is
818-401
819+402
819820 entitled to claim a federal earned income tax credit for the year requested by the
820-402
821+403
821822 Department of Workforce Services if:
822-403
823+404
823824 (i) the Department of Workforce Services requests this information; and
824-- 12 - 03-03 07:13 1st Sub. (Buff) H.B. 528
825-404
825+- 12 - 02-19 13:42 H.B. 528
826+405
826827 (ii) the commission has received the information release described in Section
827-405
828+406
828829 35A-9-604.
829-406
830+407
830831 (bb)(i) As used in this Subsection (4)(bb), "unclaimed property administrator" means
831-407
832+408
832833 the administrator or the administrator's agent, as those terms are defined in Section
833-408
834+409
834835 67-4a-102.
835-409
836+410
836837 (ii)(A) Notwithstanding Subsection (2), upon request from the unclaimed property
837-410
838+411
838839 administrator and to the extent allowed under federal law, the commission shall
839-411
840+412
840841 provide the unclaimed property administrator the name, address, telephone
841-412
842+413
842843 number, county of residence, and social security number or federal employer
843-413
844+414
844845 identification number on any return filed under Chapter 7, Corporate Franchise
845-414
846+415
846847 and Income Taxes, or Chapter 10, Individual Income Tax Act.
847-415
848+416
848849 (B) The unclaimed property administrator may use the information described in
849-416
850+417
850851 Subsection (4)(bb)(ii)(A) only for the purpose of returning unclaimed property
851-417
852+418
852853 to the property's owner in accordance with Title 67, Chapter 4a, Revised
853-418
854+419
854855 Uniform Unclaimed Property Act.
855-419
856+420
856857 (iii) The unclaimed property administrator is subject to the confidentiality provisions
857-420
858+421
858859 of this section with respect to any information the unclaimed property
859-421
860+422
860861 administrator receives under this Subsection (4)(bb).
861-422
862+423
862863 (cc) Notwithstanding Subsection (2), the commission may, upon request, disclose a
863-423
864+424
864865 taxpayer's state individual income tax information to a program manager of the Utah
865-424
866+425
866867 Fits All Scholarship Program under Section 53F-6-402 if:
867-425
868+426
868869 (i) the taxpayer consents in writing to the disclosure;
869-426
870+427
870871 (ii) the taxpayer's written consent includes the taxpayer's name, social security
871-427
872+428
872873 number, and any other information the commission requests that is necessary to
873-428
874+429
874875 verify the identity of the taxpayer; and
875-429
876+430
876877 (iii) the program manager provides the taxpayer's written consent to the commission.
877-430
878+431
878879 (dd) Notwithstanding Subsection (2), the commission may provide to the Division of
879-431
880+432
880881 Finance within the Department of Government Operations any information necessary
881-432
882+433
882883 to facilitate a payment from the commission to a taxpayer, including:
883-433
884+434
884885 (i) the name of the taxpayer entitled to the payment or any other person legally
885-434
886+435
886887 authorized to receive the payment;
887-435
888+436
888889 (ii) the taxpayer identification number of the taxpayer entitled to the payment;
889-436
890+437
890891 (iii) the payment identification number and amount of the payment;
891-437
892+438
892893 (iv) the tax year to which the payment applies and date on which the payment is due;
893-- 13 - 1st Sub. (Buff) H.B. 528 03-03 07:13
894-438
894+- 13 - H.B. 528 02-19 13:42
895+439
895896 (v) a mailing address to which the payment may be directed; and
896-439
897+440
897898 (vi) information regarding an account at a depository institution to which the
898-440
899+441
899900 payment may be directed, including the name of the depository institution, the
900-441
901+442
901902 type of account, the account number, and the routing number for the account.
902-442
903+443
903904 (ee) Notwithstanding Subsection (2), the commission shall provide the total amount of
904-443
905+444
905906 revenues collected by the commission under Subsection [59-5-202(5)] 59-5-202(7):
906-444
907+445
907908 (i) at the request of a committee of the Legislature, the Office of the Legislative
908-445
909+446
909910 Fiscal Analyst, or the Governor's Office of Planning and Budget, to the committee
910-446
911+447
911912 or office for the time period specified by the committee or office; and
912-447
913+448
913914 (ii) to the Division of Finance for purposes of the Division of Finance administering
914-448
915+449
915916 Subsection [59-5-202(5)] 59-5-202(7).
916-449
917+450
917918 (ff) Notwithstanding Subsection (2), the commission may provide the Department of
918-450
919+451
919920 Agriculture and Food with information from a return filed in accordance with
920-451
921+452
921922 Chapter 31, Cannabinoid Licensing and Tax Act.
922-452
923+453
923924 (5)(a) Each report and return shall be preserved for at least three years.
924-453
925+454
925926 (b) After the three-year period provided in Subsection (5)(a) the commission may
926-454
927+455
927928 destroy a report or return.
928-455
929+456
929930 (6)(a) Any individual who violates this section is guilty of a class A misdemeanor.
930-456
931+457
931932 (b) If the individual described in Subsection (6)(a) is an officer or employee of the state,
932-457
933+458
933934 the individual shall be dismissed from office and be disqualified from holding public
934-458
935+459
935936 office in this state for a period of five years thereafter.
936-459
937+460
937938 (c) Notwithstanding Subsection (6)(a) or (b), GOEO, when requesting information in
938-460
939+461
939940 accordance with Subsection (4)(n)(iii), or an individual who requests information in
940-461
941+462
941942 accordance with Subsection (4)(n)(v):
942-462
943+463
943944 (i) is not guilty of a class A misdemeanor; and
944-463
945+464
945946 (ii) is not subject to:
946-464
947+465
947948 (A) dismissal from office in accordance with Subsection (6)(b); or
948-465
949+466
949950 (B) disqualification from holding public office in accordance with Subsection
950-466
951+467
951952 (6)(b).
952-467
953+468
953954 (d) Notwithstanding Subsection (6)(a) or (b), for a disclosure of information to the
954-468
955+469
955956 Office of the Legislative Auditor General in accordance with Title 36, Chapter 12,
956-469
957+470
957958 Legislative Organization, an individual described in Subsection (2):
958-470
959+471
959960 (i) is not guilty of a class A misdemeanor; and
960-471
961+472
961962 (ii) is not subject to:
962-- 14 - 03-03 07:13 1st Sub. (Buff) H.B. 528
963-472
963+- 14 - 02-19 13:42 H.B. 528
964+473
964965 (A) dismissal from office in accordance with Subsection (6)(b); or
965-473
966+474
966967 (B) disqualification from holding public office in accordance with Subsection
967-474
968+475
968969 (6)(b).
969-475
970+476
970971 (7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
971-476
972-Section 4. Section 59-5-202 is amended to read:
973972 477
973+Section 4. Section 59-5-201 is amended to read:
974+478
975+59-5-201 . Definitions.
976+479
977+ As used in this part:
978+480
979+(1)(a) "Metalliferous minerals" includes any ore, metal, or other substance containing
980+481
981+the following:
982+482
983+(i) aluminum;
984+483
985+(ii) antimony;
986+484
987+(iii) arsenic;
988+485
989+(iv) barium;
990+486
991+(v) beryllium;
992+487
993+(vi) bismuth;
994+488
995+(vii) boron;
996+489
997+(viii) cadmium;
998+490
999+(ix) calcium;
1000+491
1001+(x) cerium;
1002+492
1003+(xi) cesium;
1004+493
1005+(xii) chromium;
1006+494
1007+(xiii) cobalt;
1008+495
1009+(xiv) columbium;
1010+496
1011+(xv) copper;
1012+497
1013+(xvi) gallium;
1014+498
1015+(xvii) germanium;
1016+499
1017+(xviii) gold;
1018+500
1019+(xix) hafnium;
1020+501
1021+(xx) indium;
1022+502
1023+(xxi) iridium;
1024+503
1025+(xxii) iron;
1026+504
1027+(xxiii) lanthanum;
1028+505
1029+(xxiv) lead;
1030+506
1031+(xxv) lithium;
1032+- 15 - H.B. 528 02-19 13:42
1033+507
1034+(xxvi) manganese;
1035+508
1036+(xxvii) mercury;
1037+509
1038+(xxviii) molybdenum;
1039+510
1040+(xxix) nickel;
1041+511
1042+(xxx) osmium;
1043+512
1044+(xxxi) palladium;
1045+513
1046+(xxxii) platinum;
1047+514
1048+(xxxiii) praseodymium;
1049+515
1050+(xxxiv) rare earth metals;
1051+516
1052+(xxxv) rhenium;
1053+517
1054+(xxxvi) rhodium;
1055+518
1056+(xxxvii) rubidium;
1057+519
1058+(xxxviii) ruthenium;
1059+520
1060+(xxxix) samarium;
1061+521
1062+(xl) scandium;
1063+522
1064+(xli) selenium;
1065+523
1066+(xlii) silicon;
1067+524
1068+(xliii) silver;
1069+525
1070+(xliv) sodium;
1071+526
1072+(xlv) strontium;
1073+527
1074+(xlvi) tantalum;
1075+528
1076+(xlvii) tellurium;
1077+529
1078+(xlviii) thallium;
1079+530
1080+(xlix) thorium;
1081+531
1082+(l) tin;
1083+532
1084+(li) titanium;
1085+533
1086+(lii) tungsten;
1087+534
1088+(liii) uranium;
1089+535
1090+(liv) vanadium;
1091+536
1092+(lv) yttrium;
1093+537
1094+(lvi) zinc; or
1095+538
1096+(lvii) zirconium.
1097+539
1098+(b) "Metalliferous minerals" does not include:
1099+540
1100+(i) chloride compounds or salts;
1101+- 16 - 02-19 13:42 H.B. 528
1102+541
1103+(ii) potash;
1104+542
1105+(iii) rock, sand, gravel, and stone products;
1106+543
1107+(iv) gypsum;
1108+544
1109+(v) sulfur or sulfuric acid;
1110+545
1111+(vi) gem stones;
1112+546
1113+(vii) ammonium nitrate;
1114+547
1115+(viii) carbon dioxide;
1116+548
1117+(ix) oil, gas, coal, and all carboniferous materials; or
1118+549
1119+(x) phosphate.
1120+550
1121+(2) "Mine" means an operation for extracting minerals and includes any deposit of valuable
1122+551
1123+metalliferous minerals that are being extracted from a natural deposit, or a secondary
1124+552
1125+source including tails, slag, waste dumps, or other similar secondary source, whether in
1126+553
1127+solution or otherwise.
1128+554
1129+(3) "Mining" means the act, process, or work of extracting minerals from their natural
1130+555
1131+occurring environment or from a mine, and transporting or moving those minerals to the
1132+556
1133+point of processing, use, or sale. "Mining" includes the process of leaching minerals
1134+557
1135+from their naturally occurring deposit.
1136+558
1137+(4) "Ore" means raw materials in their natural state or condition prior to beneficiation or
1138+559
1139+processing, and includes mined raw materials extracted prior to further processing.
1140+560
1141+"Ore" includes any metalliferous material whose metal content is less than 15% and does
1142+561
1143+not include any material whose metal content is 15% or greater.
1144+562
1145+(5) "Spot rate" means the prevailing price in United States dollars per troy ounce of gold, as
1146+563
1147+determined by a recognized financial market or exchange, for immediate settlement
1148+564
1149+transactions.
1150+565
1151+Section 5. Section 59-5-202 is amended to read:
1152+566
9741153 59-5-202 . Severance tax -- Rate -- Computation -- Annual exemption.
975-478
1154+567
9761155 (1) A person engaged in the business of mining or extracting metalliferous minerals in this
977-479
1156+568
9781157 state shall pay to the state a severance tax equal to [2.6% of ]the taxable value of all
979-480
1158+569
9801159 metals or metalliferous minerals sold or otherwise disposed of[.] , multiplied by:
981-481
1160+570
9821161 (a) 2.6%; or
983-482
1162+571
9841163 (b) 2.47%, if:
985-483
1164+572
9861165 (i) the person pays the severance tax in gold as provided in this section; and
987-484
988-(ii)(A) for a person who owns or operates a mine on January 1, 2027, the
989-485
990-severance tax is for a taxable year that begins on or after January 1, 2027, and
991-486
992-before January 1, 2032; or
993-487
994-(B) for a person who does not own or operate a mine as of January 1, 2027, the
995-488
996-severance tax is for a taxable year that begins on or after January 1, 2027, and
997-489
998-before January 1, 2042.
999-490
1166+573
1167+(ii)(A) for a person who operates a mine on January 1, 2026, the severance tax is
1168+574
1169+for a taxable year that begins on or after January 1, 2026, and before January 1,
1170+- 17 - H.B. 528 02-19 13:42
1171+575
1172+2031; or
1173+576
1174+(B) for a person who does not operate a mine as of January 1, 2026, the severance
1175+577
1176+tax is for a taxable year that begins on or after January 1, 2026, and before
1177+578
1178+January 1, 2041.
1179+579
10001180 (2) If the metals or metalliferous minerals are shipped outside the state, this constitutes a
1001-491
1181+580
10021182 sale, and the finished metals or the recoverable units of finished metals from the
1003-492
1183+581
10041184 metalliferous minerals shipped are subject to the severance tax. If the metals or
1005-493
1185+582
10061186 metalliferous minerals are stockpiled, the tax is not applicable until they are sold or
1007-494
1187+583
10081188 shipped out of state. For purposes of the tax imposed by this chapter, uranium
1009-495
1189+584
10101190 concentrates shall be considered to be finished metals. The owner of the metals or
1011-496
1191+585
10121192 metalliferous minerals that are stockpiled shall report to the commission annually, in a
1013-497
1193+586
10141194 form acceptable to the commission, the amount of metalliferous minerals so stockpiled.
1015-498
1195+587
10161196 Metals or metalliferous minerals that are stockpiled for more than two years, however,
1017-499
1197+588
10181198 are subject to the severance tax.
1019-500
1199+589
10201200 (3) An annual exemption from the payment of the tax imposed by this chapter upon the first
1021-501
1201+590
10221202 $50,000 in gross value of the metalliferous mineral is allowed to each mine.
1023-502
1203+591
10241204 (4) These taxes are in addition to all other taxes provided by law and are delinquent, unless
1025-503
1205+592
10261206 otherwise deferred, on June 1 next succeeding the calendar year when the metalliferous
1027-504
1207+593
10281208 mineral is produced and sold or delivered.
1029-505
1209+594
10301210 (5)(a) A person may pay the severance tax imposed under this section by remitting to the
1031-- 15 - 1st Sub. (Buff) H.B. 528 03-03 07:13
1032-506
1211+595
10331212 state treasurer an amount of gold equivalent in value to the taxes owed.
1034-507
1213+596
10351214 (b) The state treasurer shall calculate the value of gold remitted under this Subsection (5)
1036-508
1037-as of the day immediately preceding the day on which the person remits the gold and
1038-509
1039-based on an internationally recognized benchmark gold price, as determined by the
1040-510
1041-state treasurer.
1042-511
1215+597
1216+based on the average spot rate over the three months preceding the day on which the
1217+598
1218+payment is due.
1219+599
10431220 (c) The state treasurer may not accept gold, unless the gold satisfies internationally
1044-512
1221+600
10451222 recognized investment grade purity standards, as determined by the state treasurer.
1046-513
1223+601
10471224 (6) When the state treasurer receives gold under Subsection (5), the state treasurer shall
1048-514
1225+602
10491226 notify:
1050-515
1227+603
10511228 (a) the commission of the payment, including any information the commission requests;
1052-516
1229+604
10531230 and
1054-517
1231+605
10551232 (b) the Division of Finance of the value of the gold received.
1056-518
1233+606
10571234 [(5)] (7)(a) As used in this Subsection [(5)] (7):
1058-519
1235+607
10591236 (i) "Great Salt Lake element or mineral" means a metalliferous mineral, metal, ore,
1060-520
1237+608
10611238 chloride compound, potash, or salt mined or extracted from the brines of the Great
1062-521
1239+- 18 - 02-19 13:42 H.B. 528
1240+609
10631241 Salt Lake.
1064-522
1242+610
10651243 (ii) "Great Salt Lake elevation" means the same as that term is defined in Section
1066-523
1244+611
10671245 65A-17-101.
1068-524
1246+612
10691247 (iii) "Great Salt Lake extraction operator" means a person whois engaged in the
1070-525
1248+613
10711249 business of mining or extracting Great Salt Lake elements or minerals or
1072-526
1250+614
10731251 metalliferous compounds from the brine of the Great Salt Lake.
1074-527
1252+615
10751253 (iv) For purposes of each tax imposed under Subsection [(5)(b)] (7)(b), "incremental
1076-528
1254+616
10771255 revenue" means the difference between the sum of the revenue collected for the
1078-529
1256+617
10791257 fiscal year from each of the tax rates imposed under Subsection [(5)(b)] (7)(b) and
1080-530
1258+618
10811259 the revenue collected for the fiscal year from the tax rate imposed under
1082-531
1260+619
10831261 Subsection (1).
1084-532
1262+620
10851263 (v) "Metalliferous compound" means a metalliferous mineral or a chloride compound
1086-533
1264+621
10871265 or salt containing a metalliferous mineral.
1088-534
1266+622
10891267 (b) Notwithstanding the exclusion for chloride compounds or salts from the definition of
1090-535
1268+623
10911269 metalliferous minerals under Section 59-5-201and in lieu of the severance tax
1092-536
1270+624
10931271 imposed under Subsection (1), beginning with calendar year 2025, a Great Salt Lake
1094-537
1272+625
10951273 extraction operator shall pay to the state a severance tax in accordance with the
1096-538
1274+626
10971275 following:
1098-539
1276+627
10991277 (i) for a Great Salt Lake extraction operator that is not a party or a third-party
1100-- 16 - 03-03 07:13 1st Sub. (Buff) H.B. 528
1101-540
1278+628
11021279 beneficiary to a voluntary agreement for water rights with an approved beneficial
1103-541
1280+629
11041281 use by a division as defined in Section 73-3-30, a severance tax equal to 7.8% of
1105-542
1282+630
11061283 the taxable value of Great Salt Lake elements or minerals or metalliferous
1107-543
1284+631
11081285 compounds sold or otherwise disposed of;
1109-544
1286+632
11101287 (ii) for a Great Salt Lake extraction operator that is not a party or a third-party
1111-545
1288+633
11121289 beneficiary to a voluntary agreement for water rights with an approved beneficial
1113-546
1290+634
11141291 use by a division as defined in Section 73-3-30, but does not use evaporative
1115-547
1292+635
11161293 concentrations of Great Salt Lake brines in any stage of the extractive process, a
1117-548
1294+636
11181295 severance tax equal to 2.6% of the taxable value of Great Salt Lake elements or
1119-549
1296+637
11201297 minerals or metalliferous compounds sold or otherwise disposed of; or
1121-550
1298+638
11221299 (iii) for a Great Salt Lake extraction operator that is a party or a third-party
1123-551
1300+639
11241301 beneficiary to a voluntary agreement for water rights with an approved beneficial
1125-552
1302+640
11261303 use by a division as defined in Section 73-3-30:
1127-553
1304+641
11281305 (A) a severance tax equal to 2.6% of the taxable value of Great Salt Lake elements
1129-554
1306+642
11301307 or minerals sold or otherwise disposed of, if the Great Salt Lake elements or
1131-555
1308+- 19 - H.B. 528 02-19 13:42
1309+643
11321310 minerals are extracted during a calendar year when the Great Salt Lake
1133-556
1311+644
11341312 elevation recorded pursuant to Section 65A-17-306 was at or above 4,198 feet
1135-557
1313+645
11361314 in the prior calendar year; or
1137-558
1315+646
11381316 (B) a severance tax does not apply to the taxable value of Great Salt Lake
1139-559
1317+647
11401318 elements or minerals sold or otherwise disposed of, if those Great Salt Lake
1141-560
1319+648
11421320 elements or minerals are sold or otherwise disposed of in a calendar year when
1143-561
1321+649
11441322 the Great Salt Lake elevation recorded pursuant to Section 65A-17-306 was
1145-562
1323+650
11461324 below 4,198 feet in the prior calendar year; and
1147-563
1325+651
11481326 (iv) notwithstanding Subsection [(5)(b)(iii)] (7)(b)(iii), for a Great Salt Lake
1149-564
1327+652
11501328 extraction operator that is a party or third-party beneficiary to a voluntary
1151-565
1329+653
11521330 agreement for water rights with an approved beneficial use by a division as
1153-566
1331+654
11541332 defined in Section 73-3-30, a severance tax equal to 2.6% of the taxable value of a
1155-567
1333+655
11561334 metalliferous compound sold or otherwise disposed of under a royalty agreement
1157-568
1335+656
11581336 issued under Subsection 65A-6-4(2)(d), entered into on or after May 1, 2024.
1159-569
1337+657
11601338 (c)(i) Subject to Subsection [(5)(c)(ii)] (7)(c)(ii), the Division of Finance shall deposit
1161-570
1339+658
11621340 the incremental revenue in accordance with Section 51-9-305.
1163-571
1341+659
11641342 (ii) The Division of Finance shall consider the incremental revenue required to be
1165-572
1343+660
11661344 deposited under Subsection [(5)(c)(i)] (7)(c)(i) to be the first revenue collected
1167-573
1345+661
11681346 under this chapter for the fiscal year.
1169-- 17 - 1st Sub. (Buff) H.B. 528 03-03 07:13
1170-574
1347+662
11711348 (iii) The Division of Finance shall deposit the incremental revenue that remains after
1172-575
1349+663
11731350 making the deposit required by Subsection [(5)(c)(i)] (7)(c)(i) into the Sovereign
1174-576
1351+664
11751352 Lands Management Account created in Section 65A-5-1.
1176-577
1353+665
11771354 (d) This Subsection [(5)] (7) may not be interpreted to:
1178-578
1355+666
11791356 (i) excuse a person from paying a severance tax in accordance with the other
1180-579
1357+667
11811358 provisions of this part; or
1182-580
1359+668
11831360 (ii) void a mineral lease or royalty agreement.
1184-581
1361+669
11851362 (e) A person extracting metalliferous minerals, including a metalliferous compound,
1186-582
1363+670
11871364 from the brine of the Great Salt Lake is subject to the payment of a royalty agreement
1188-583
1365+671
11891366 under Section 65A-6-4 and the payment of a severance tax under this part.
1190-584
1191-Section 5. Section 59-5-203 is amended to read:
1192-585
1367+672
1368+Section 6. Section 59-5-203 is amended to read:
1369+673
11931370 59-5-203 . Determining taxable value.
1194-586
1371+674
11951372 (1) Except as provided in Subsection (3), the basis for computing the gross proceeds, prior
1196-587
1373+675
11971374 to those deductions or adjustments specified in this chapter, in determining the taxable
1198-588
1375+676
11991376 value of the metals, metalliferous minerals, or metalliferous compounds, as defined in
1200-589
1377+- 20 - 02-19 13:42 H.B. 528
1378+677
12011379 Subsection [59-5-202(5)] 59-5-202(7), sold or otherwise disposed of, in the order of
1202-590
1380+678
12031381 priority, is as follows:
1204-591
1382+679
12051383 (a) If the metals, metalliferous mineral products, or metalliferous compounds are
1206-592
1384+680
12071385 actually sold, the value of those metals, metalliferous mineral products, or
1208-593
1386+681
12091387 metalliferous compounds shall be the gross amount the producer receives from that
1210-594
1388+682
12111389 sale, provided that the metals, metalliferous mineral products, or metalliferous
1212-595
1390+683
12131391 compounds are sold under a bona fide contract of sale between unaffiliated parties.
1214-596
1392+684
12151393 In the case of a sale of uranium concentrates, gross proceeds shall be the gross
1216-597
1394+685
12171395 amount the producer receives from the sale of processed uranium concentrate or
1218-598
1396+686
12191397 "yellowcake," provided that the uranium concentrate is sold under a bona fide
1220-599
1398+687
12211399 contract of sale between unaffiliated parties.
1222-600
1400+688
12231401 (b)(i) For purposes of a Great Salt Lake extraction operator, as defined in Section
1224-601
1402+689
12251403 59-5-202, if metals, metalliferous minerals, or metalliferous compounds are not
1226-602
1404+690
12271405 sold, but are otherwise disposed of, the gross proceeds shall be the multiple of the
1228-603
1406+691
12291407 recoverable units of finished or unfinished metals, or of the finished or unfinished
1230-604
1408+692
12311409 metals contained in the metalliferous minerals or metalliferous compounds
1232-605
1410+693
12331411 shipped, and the average daily price per unit of contained metals as quoted by an
1234-606
1412+694
12351413 established authority for market prices of metals for the period during which the
1236-607
1414+695
12371415 tax imposed by this chapter is due.
1238-- 18 - 03-03 07:13 1st Sub. (Buff) H.B. 528
1239-608
1416+696
12401417 (ii) The established authority or authorities under this Subsection (1)(b) shall be
1241-609
1418+697
12421419 designated by the commission by rule adopted in accordance with Title 63G,
1243-610
1420+698
12441421 Chapter 3, Utah Administrative Rulemaking Act.
1245-611
1422+699
12461423 (c)(i) If the metals, metalliferous mineral products, or metalliferous compounds are
1247-612
1424+700
12481425 not actually sold but are shipped, transported, or delivered out of state, the gross
1249-613
1426+701
12501427 proceeds shall be the multiple of the recoverable units of finished metals, or of the
1251-614
1428+702
12521429 finished metals contained in the metalliferous minerals or metalliferous
1253-615
1430+703
12541431 compounds shipped, and the average daily price per unit of contained metals as
1255-616
1432+704
12561433 quoted by an established authority for market prices of metals for the period
1257-617
1434+705
12581435 during which the tax imposed by this chapter is due.
1259-618
1436+706
12601437 (ii) The established authority or authorities shall be designated by the commission by
1261-619
1438+707
12621439 rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative
1263-620
1440+708
12641441 Rulemaking Act.
1265-621
1442+709
12661443 (d) In the case of metals, metalliferous minerals, or metalliferous compounds not sold,
1267-622
1444+710
12681445 but otherwise disposed of, for which there is no established authority for market
1269-623
1446+- 21 - H.B. 528 02-19 13:42
1447+711
12701448 prices of metals for the period during which the tax imposed by this chapter is due,
1271-624
1449+712
12721450 gross proceeds is determined by allocating to the state the same proportion of the
1273-625
1451+713
12741452 producer's total sales of metals, metalliferous minerals, or metalliferous compounds
1275-626
1453+714
12761454 sold or otherwise disposed of as the producer's total Utah costs bear to the total costs
1277-627
1455+715
12781456 associated with sale or disposal of the metal or metalliferous mineral.
1279-628
1457+716
12801458 (e) In the event of a sale of metals, metalliferous minerals, or metalliferous compounds
1281-629
1459+717
12821460 between affiliated companies which is not a bona fide sale because the value received
1283-630
1461+718
12841462 is not proportionate to the fair market value of the metals, metalliferous minerals,
1285-631
1463+719
12861464 metalliferous compounds or in the event that Subsection (1)(a), (b), (c), or (d) are not
1287-632
1465+720
12881466 applicable, the commission shall determine the value of such metals, metalliferous
1289-633
1467+721
12901468 minerals, or metalliferous compounds in an equitable manner by reference to an
1291-634
1469+722
12921470 objective standard as specified in a rule adopted in accordance with the provisions of
1293-635
1471+723
12941472 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1295-636
1473+724
12961474 (2) For all metals except beryllium, the taxable value of the metalliferous mineral sold or
1297-637
1475+725
12981476 otherwise disposed of is 30% of the gross proceeds received for the metals sold or
1299-638
1477+726
13001478 otherwise disposed of by the producer of the metal.
1301-639
1479+727
13021480 (3) Notwithstanding Subsection (1) or (4), the taxable value of beryllium sold or otherwise
1303-640
1481+728
13041482 disposed of by the producer of the beryllium is equal to 125% of the direct mining costs
1305-641
1483+729
13061484 incurred in mining the beryllium.
1307-- 19 - 1st Sub. (Buff) H.B. 528 03-03 07:13
1308-642
1485+730
13091486 (4) Except as provided in Subsection (3), if the metalliferous mineral sold or otherwise
1310-643
1487+731
13111488 disposed of is sold or shipped out of state in the form of ore, then the taxable value is
1312-644
1489+732
13131490 80% of the gross proceeds.
1314-645
1315-Section 6. Section 59-5-207 is amended to read:
1316-646
1491+733
1492+Section 7. Section 59-5-207 is amended to read:
1493+734
13171494 59-5-207 . Date tax due -- Extensions -- Installment payments -- Penalty on
1318-647
1495+735
13191496 delinquencies -- Audit.
1320-648
1497+736
13211498 (1) The tax imposed by this chapter is due and payable on or before June 1 of the year next
1322-649
1499+737
13231500 succeeding the calendar year when the mineral is produced and sold or delivered.
1324-650
1501+738
13251502 (2) The commission may, for good cause shown upon a written application by the taxpayer,
1326-651
1503+739
13271504 extend the time of payment of the whole or any part of the tax for a period not to exceed
1328-652
1505+740
13291506 six months. If an extension is granted, interest at the rate and in the manner prescribed
1330-653
1507+741
13311508 in Section 59-1-402 shall be charged and added to the amount of the deferred payment
1332-654
1509+742
13331510 of the tax.
1334-655
1511+743
13351512 (3) Every taxpayer subject to this chapter whose total tax obligation for the preceding
1336-656
1513+744
13371514 calendar year was $3,000 or more shall pay the taxes assessed under this chapter in
1338-657
1515+- 22 - 02-19 13:42 H.B. 528
1516+745
13391517 quarterly installments. Each installment shall be based on the estimated gross value
1340-658
1518+746
13411519 received by the taxpayer during the quarter preceding the date on which the installment
1342-659
1520+747
13431521 is due.
1344-660
1522+748
13451523 (4) The quarterly installments are due as follows:
1346-661
1524+749
13471525 (a) for January 1 through March 31, on or before June 1;
1348-662
1526+750
13491527 (b) for April 1 through June 30, on or before September 1;
1350-663
1528+751
13511529 (c) for July 1 through September 30, on or before December 1; and
1352-664
1530+752
13531531 (d) for October 1 through December 31, on or before March 1 of the next year.
1354-665
1532+753
13551533 (5)(a) If the taxpayer fails to report and pay any tax when due, the taxpayer is subject to
1356-666
1534+754
13571535 the penalties provided under Section 59-1-401, unless otherwise provided in
1358-667
1536+755
13591537 Subsection (6).
1360-668
1538+756
13611539 (b) An underpayment exists if less than 80% of the tax due for a quarter is paid.
1362-669
1540+757
13631541 (6) The penalty for failure to pay the tax due or underpayment of tax may not be assessed if
1364-670
1542+758
13651543 the taxpayer's quarterly tax installment payment equals 25% of the tax reported and paid
1366-671
1544+759
13671545 by the taxpayer for the preceding taxable year.
1368-672
1546+760
13691547 (7) There shall be no interest added to any estimated tax payments subject to a penalty
1370-673
1548+761
13711549 under this section.
1372-674
1550+762
13731551 (8) The commission may conduct audits to determine whether any tax is owed under this
1374-675
1552+763
13751553 section.
1376-- 20 - 03-03 07:13 1st Sub. (Buff) H.B. 528
1377-676
1554+764
13781555 (9) For purposes of a Great Salt Lake extraction operator under Subsection [59-5-202(5)]
1379-677
1556+765
13801557 59-5-202(7), the Division of Forestry, Fire, and State Lands shall provide the
1381-678
1558+766
13821559 commission by January 15 of each year the information required by Section 65A-17-306,
1383-679
1560+767
13841561 that the commission shall use to determine the amount due and payable on June 1 of the
1385-680
1562+768
13861563 year next succeeding the calendar year.
1387-681
1388-Section 7. Section 59-5-215 is amended to read:
1389-682
1564+769
1565+Section 8. Section 59-5-215 is amended to read:
1566+770
13901567 59-5-215 . Disposition of taxes collected -- Credit to General Fund.
1391-683
1568+771
13921569 (1) Except as provided in Section 51-9-305, 51-9-306, or 51-9-307, or Subsection
1393-684
1570+772
13941571 59-5-202(5) or (7), a tax imposed and collected under Section 59-5-202 shall be paid to
1395-685
1572+773
13961573 the commission, promptly remitted to the state treasurer, and credited to the General
1397-686
1574+774
13981575 Fund.
1399-687
1576+775
14001577 (2) Upon receipt of a notice described in Subsection 59-5-202(6)(b), the Division of
1401-688
1578+776
14021579 Finance shall:
1403-689
1580+777
14041581 (a) credit from the General Fund Budget Reserve Account created in Section 63J-1-312
1405-690
1582+778
14061583 an amount equal to the value of the gold to severance tax revenue collected under this
1407-691
1584+- 23 - H.B. 528 02-19 13:42
1585+779
14081586 part; and
1409-692
1587+780
14101588 (b) distribute the credited money in the same manner as severance tax revenue collected
1411-693
1589+781
14121590 under this part.
1413-694
1414-Section 8. Section 59-7-504 is amended to read:
1415-695
1591+782
1592+Section 9. Section 59-7-504 is amended to read:
1593+783
14161594 59-7-504 . Estimated tax payments -- Penalty -- Waiver.
1417-696
1595+784
14181596 (1) Except as provided in Subsection (2), a corporation subject to taxation under this
1419-697
1597+785
14201598 chapter that has a tax liability of $3,000 or more in either the current tax year or the
1421-698
1599+786
14221600 previous tax year shall make a payment of an estimated tax on or before the day on
1423-699
1601+787
14241602 which the corporation is required to make a payment of an estimated tax for the same
1425-700
1603+788
14261604 time period to the federal government.
1427-701
1605+789
14281606 (2) The provisions of Section 6655, Internal Revenue Code, shall govern the payment
1429-702
1607+790
14301608 described in Subsection (1), except that:
1431-703
1609+791
14321610 (a) for the first year a corporation is required to file a return in Utah, that corporation is
1433-704
1611+792
14341612 not subject to Subsection (1) if the corporation makes a payment on or before the due
1435-705
1613+793
14361614 date of the return, without extensions, equal to or greater than the minimum tax
1437-706
1615+794
14381616 required under Section 59-7-104 or 59-7-201;
1439-707
1617+795
14401618 (b) the applicable percentage of the required annual payment, as defined in Section
1441-708
1619+796
14421620 6655, Internal Revenue Code, for annualized income installments, adjusted seasonal
1443-709
1621+797
14441622 installments, and those estimated tax payments based on the current year tax liability
1445-- 21 - 1st Sub. (Buff) H.B. 528 03-03 07:13
1446-710
1623+798
14471624 shall be:
1448-711 Installment Percentage712
1625+799 Installment Percentage800
14491626 1st 22.5
1450-713
1627+801
14511628 2nd 45.0
1452-714
1629+802
14531630 3rd 67.5
1454-715
1631+803
14551632 4th 90.0
1456-716
1633+804
14571634 (c) a large corporation shall be treated as any other corporation for purposes of this
1458-717
1635+805
14591636 section;
1460-718
1637+806
14611638 (d) if a taxpayer elects a different annualization period than the one used for federal
1462-719
1639+807
14631640 purposes, the taxpayer shall make an election with the commission at the same time
1464-720
1641+808
14651642 as provided under Section 6655, Internal Revenue Code; and
1466-721
1643+809
14671644 (e) the due date shall be superseded by the due date for federal estimated payments if
1468-722
1645+810
14691646 modified by other federal action.
1470-723
1647+811
14711648 (3) A penalty shall be added as provided in Section 59-1-401 for any quarterly estimated
1472-724
1649+- 24 - 02-19 13:42 H.B. 528
1650+812
14731651 tax payment that is not made in accordance with this section.
1474-725
1652+813
14751653 (4) There shall be no interest added to any estimated tax payments subject to a penalty
1476-726
1654+814
14771655 under this section.
1478-727
1479-(5)(a)(i) A corporation may pay taxes due under this chapter by remitting to the state
1480-728
1656+815
1657+(5)(a) As used in this Subsection (5), "spot rate" means the prevailing price in United
1658+816
1659+States dollars per troy ounce of gold, as determined by a recognized financial market
1660+817
1661+or exchange, for immediate settlement transactions.
1662+818
1663+(b)(i) A corporation may pay taxes due under this chapter by remitting to the state
1664+819
14811665 treasurer an amount of gold equivalent in value to the tax due.
1482-729
1483-(ii) The state treasurer shall calculate the value of gold remitted under this Subsection
1484-730
1485-(5) as of the day immediately preceding the day on which the person remits the
1486-731
1487-gold and based on an internationally recognized benchmark gold price, as
1488-732
1489-determined by the state treasurer.
1490-733
1666+820
1667+(ii) The state treasurer shall calculate the value of the gold remitted under this
1668+821
1669+Subsection (5) based on the average spot rate over the three months preceding the
1670+822
1671+day on which the payment is due.
1672+823
14911673 (iii) The state treasurer may not accept gold, unless the gold satisfies internationally
1492-734
1674+824
14931675 recognized investment grade purity standards, as determined by the state treasurer.
1494-735
1495-(b) When the state treasurer receives gold under this Subsection (5), the state treasurer
1496-736
1676+825
1677+(c) When the state treasurer receives gold under this Subsection (5), the state treasurer
1678+826
14971679 shall notify:
1498-737
1680+827
14991681 (i) the commission of the payment, including any information the commission
1500-738
1682+828
15011683 requests; and
1502-739
1684+829
15031685 (ii) the Division of Finance of the value of the gold received.
1504-740
1505-Section 9. Section 59-7-532 is amended to read:
1506-741
1686+830
1687+Section 10. Section 59-7-532 is amended to read:
1688+831
15071689 59-7-532 . Revenue received by commission -- Deposit with state treasurer --
1508-742
1690+832
15091691 Distribution or crediting to Income Tax Fund -- Refund claim payments.
1510-- 22 - 03-03 07:13 1st Sub. (Buff) H.B. 528
1511-743
1692+833
15121693 (1)(a) The commission shall deposit at least quarterly all revenue collected or received
1513-744
1694+834
15141695 by the commission under this chapter with the state treasurer.
1515-745
1696+835
15161697 (b) The commission shall, subject to the refund provisions of this section, distribute or
1517-746
1698+836
15181699 credit, at least quarterly and based on a pro rata share of Income Tax Fund and
1519-747
1700+837
15201701 Uniform School Fund appropriations for the current fiscal year, the revenue
1521-748
1702+838
15221703 described in Subsection (1)(a) to:
1523-749
1704+839
15241705 (i) the Income Tax Fund; and
1525-750
1706+840
15261707 (ii) the Uniform School Fund in accordance with Section 53F-9-201.1.
1527-751
1708+841
15281709 (c) The commission may credit to or draw from the Income Tax Fund and the Uniform
1529-752
1710+842
15301711 School Fund:
1531-753
1712+843
15321713 (i) annually to adjust for differences between estimates and actual amounts; or
1533-754
1714+844
15341715 (ii) in the proportion described in Subsection (1)(b) to issue a refund.
1535-755
1716+845
15361717 (2) The commission shall from time to time certify to the state auditor the amount of any
1537-756
1718+- 25 - H.B. 528 02-19 13:42
1719+846
15381720 refund authorized by it, the amount of interest computed on it under the provisions of
1539-757
1721+847
15401722 Section 59-7-533, from whom the tax to be refunded was collected, or by whom it was
1541-758
1723+848
15421724 paid, and such refund claims shall be paid in order out of the funds first accruing to the
1543-759
1725+849
15441726 Income Tax Fund from the provisions of this section.
1545-760
1727+850
15461728 (3) Upon receipt of a notice described in Subsection 59-7-504(5)(c), the Division of
1547-761
1729+851
15481730 Finance shall credit from the Income Tax Fund Budget Reserve Account created in
1549-762
1731+852
15501732 Section 63J-1-313 an amount equal to the value of the gold and deposit the money as
1551-763
1733+853
15521734 provided in this section, as though the money were revenue collected or received by the
1553-764
1735+854
15541736 commission under this chapter.
1555-765
1556-Section 10. Section 59-7-536 is amended to read:
1557-766
1737+855
1738+Section 11. Section 59-7-536 is amended to read:
1739+856
15581740 59-7-536 . Relief in case of suspension or forfeiture.
1559-767
1741+857
15601742 (1)(a) Any corporation which has suffered the suspension or forfeiture referred to in
1561-768
1743+858
15621744 Section 59-7-534 may be relieved from that suspension or forfeiture by applying for
1563-769
1745+859
15641746 that relief in writing, paying the tax and the interest and penalties for nonpayment of
1565-770
1747+860
15661748 which the suspension or forfeiture occurred, and paying a reinstatement fee of $100.
1567-771
1749+861
15681750 If the corporation has done business in this state during the period of such
1569-772
1751+862
15701752 suspension, a tax shall be computed according to this chapter for each year in which
1571-773
1753+863
15721754 the business was done, and the tax shall be added to the delinquency and penalties
1573-774
1755+864
15741756 provided in this section. If the due date of any return required in this section has not
1575-775
1757+865
15761758 passed, a return need not be filed until that due date.
1577-776
1759+866
15781760 (b) Application for revivor may be made by any stockholder or creditor of the
1579-- 23 - 1st Sub. (Buff) H.B. 528 03-03 07:13
1580-777
1761+867
15811762 corporation or by a majority of the surviving trustees or directors, and the same shall
1582-778
1763+868
15831764 be filed with the Division of Corporations and Commercial Code. Upon payment[ to
1584-779
1765+869
15851766 the commission] of the taxes, penalties, and reinstatement fee provided for in this
1586-780
1767+870
15871768 section, the Division of Corporations and Commercial Code shall issue a certificate
1588-781
1769+871
15891770 of revivor, and the applicant shall be revived. The revivor shall be without prejudice
1590-782
1771+872
15911772 to any action, defense, or right which has accrued by reason of the original
1592-783
1773+873
15931774 suspension or forfeiture. The certificate of revivor is prima facie evidence of the
1594-784
1775+874
15951776 revivor.
1596-785
1777+875
15971778 (2) If any corporation has adopted, subsequent to such suspension or forfeiture, any name
1598-786
1779+876
15991780 so closely resembling the name of the reviving corporation as will tend to deceive, then
1600-787
1781+877
16011782 the reviving corporation is entitled to a certificate of revivor pursuant to the terms of this
1602-788
1783+878
16031784 section only upon adopting a new name, and in such case nothing in this section may be
1604-789
1785+879
16051786 construed as permitting the reviving corporation to carry on any business under its
1606-790
1787+- 26 - 02-19 13:42 H.B. 528
1788+880
16071789 former name. The reviving corporation may use its former name or may take the new
1608-791
1790+881
16091791 name only upon filing an application for it with the Division of Corporations and
1610-792
1792+882
16111793 Commercial Code, and upon the issuing of a certificate to such corporation by the
1612-793
1794+883
16131795 Division of Corporations and Commercial Code, setting forth the right of such
1614-794
1796+884
16151797 corporation to take such new name or use its former name as the case may be. The
1616-795
1798+885
16171799 Division of Corporations and Commercial Code may not issue any certificate permitting
1618-796
1800+886
16191801 any corporation to take or use the name of any corporation already organized in this
1620-797
1802+887
16211803 state and which has not suffered a forfeiture, or take or use a name so closely resembling
1622-798
1804+888
16231805 the name of any corporation already organized in this state as will tend to deceive.
1624-799
1625-Section 11. Section 59-7-627 is enacted to read:
1626-800
1806+889
1807+Section 12. Section 59-7-627 is enacted to read:
1808+890
16271809 59-7-627 . Nonrefundable tax credit for payment in gold.
1628-801
1810+891
16291811 (1) As used in this section, "qualified taxpayer" means a taxpayer that:
1630-802
1631-(a) owns or operates a mine as defined in Section 59-5-201; and
1632-803
1633-(b) pays in gold the taxes owed under this chapter for the taxable year, as allowed under
1634-804
1812+892
1813+(a) is a mine as defined in Section 59-5-201; and
1814+893
1815+(b) pays in gold the taxes owed under this chapter for the fiscal year, as allowed under
1816+894
16351817 Section 59-7-504.
1636-805
1637-(2) Subject to Subsection (3), a qualified taxpayer may claim a nonrefundable tax credit
1638-806
1639-equal to 5% of the qualified taxpayer's liability under this chapter for the taxable year,
1640-807
1641-excluding any credit available under this section.
1642-808
1643-(3)(a) If the qualified taxpayer owns or operates a mine on January 1, 2027, the qualified
1644-809
1645-taxpayer may claim a tax credit under this section for a taxable year that begins on or
1646-810
1647-after January 1, 2027, and before January 1, 2032.
1648-- 24 - 03-03 07:13 1st Sub. (Buff) H.B. 528
1649-811
1650-(b) If the qualified taxpayer does not own or operate a mine on January 1, 2027, the
1651-812
1652-qualified taxpayer may claim a tax credit under this section for a taxable year that
1653-813
1654-begins on or after January 1, 2027, and before January 1, 2042.
1655-814
1656-Section 12. Section 59-10-514 is amended to read:
1657-815
1818+895
1819+(2) A qualified taxpayer may claim a nonrefundable tax credit equal to 5% of the taxes
1820+896
1821+owed under this chapter for the taxable year as follows:
1822+897
1823+(a) for a mine in operation on January 1, 2026, a taxable year that begins on or after
1824+898
1825+January 1, 2026, and before January 1, 2031; or
1826+899
1827+(b) for a mine that is not in operation on January 1, 2026, a taxable year that begins on
1828+900
1829+or after January 1, 2026, and before January 1, 2041.
1830+901
1831+Section 13. Section 59-10-514 is amended to read:
1832+902
16581833 59-10-514 . Return filing requirements -- Rulemaking authority.
1659-816
1834+903
16601835 (1)(a) Subject to Subsection (3) and Section 59-10-518:
1661-817
1836+904
16621837 (i) an individual income tax return filed for a tax imposed in accordance with Part 1,
1663-818
1838+905
16641839 Determination and Reporting of Tax Liability and Information, shall be filed with
1665-819
1840+906
16661841 the commission on or before the day on which a federal individual income tax
1667-820
1842+907
16681843 return is due;
1669-821
1844+908
16701845 (ii) a fiduciary income tax return filed for a tax imposed in accordance with Part 2,
1671-822
1846+909
16721847 Trusts and Estates, shall be filed with the commission on or before the day on
1673-823
1848+910
16741849 which a federal return for estates and trusts is due; or
1675-824
1850+911
16761851 (iii) a return filed in accordance with Section 59-10-507 shall be filed with the
1677-825
1852+912
16781853 commission on or before the later of:
1679-826
1854+913
16801855 (A) the 15th day of the fourth month following the last day of the taxpayer's
1681-827
1856+- 27 - H.B. 528 02-19 13:42
1857+914
16821858 taxable year; or
1683-828
1859+915
16841860 (B) the day on which the taxpayer is required to file a federal income tax return.
1685-829
1861+916
16861862 (b) Interest accrues from the day on which a return is due under this Subsection (1).
1687-830
1863+917
16881864 (2) A person required to make and file a return under this chapter shall, without assessment,
1689-831
1865+918
16901866 notice, or demand, pay any tax due[:] as provided in Section 59-10-520.
1691-832
1867+919
16921868 [(a) to the commission; and]
1693-833
1869+920
16941870 [(b) before the due date for filing the return, without regard to any extension of time for
1695-834
1871+921
16961872 filing the return.]
1697-835
1873+922
16981874 (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1699-836
1875+923
17001876 commission may make rules prescribing what constitutes filing a return with the
1701-837
1877+924
17021878 commission.
1703-838
1704-Section 13. Section 59-10-520 is amended to read:
1705-839
1879+925
1880+Section 14. Section 59-10-520 is amended to read:
1881+926
17061882 59-10-520 . Time and place for paying tax shown on returns.
1707-840
1883+927
17081884 (1) [When] Subject to Subsection (3), when a return of tax is required under this chapter or
1709-841
1885+928
17101886 rules, the person required to make such return shall, without assessment or notice and
1711-842
1887+929
17121888 demand from the commission, pay such tax to the commission office with which the
1713-843
1889+930
17141890 return is filed, and shall pay such tax at the time and place fixed for filing the return
1715-844
1891+931
17161892 (determined without regard to any extension of time).
1717-- 25 - 1st Sub. (Buff) H.B. 528 03-03 07:13
1718-845
1893+932
17191894 (2) In any case where a tax is required to be paid on or before a certain date, or within a
1720-846
1895+933
17211896 certain period, any reference in this chapter to the date fixed for payment of such tax
1722-847
1897+934
17231898 shall be deemed a reference to the last day fixed for such payment (determined without
1724-848
1899+935
17251900 regard to any extension of time for paying the tax).
1726-849
1727-(3)(a)(i) A person may pay the tax due by remitting to the state treasurer an amount
1728-850
1729-of gold equivalent in value to the tax due.
1730-851
1731-(ii) The state treasurer shall calculate the value of gold remitted under this Subsection
1732-852
1733-(3) as of the day immediately preceding the day on which the person remits the
1734-853
1735-gold and based on an internationally recognized benchmark gold price, as
1736-854
1737-determined by the state treasurer.
1738-855
1901+936
1902+(3)(a) As used in this Subsection (3), "spot rate" means the prevailing price in United
1903+937
1904+States dollars per troy ounce of gold, as determined by a recognized financial market
1905+938
1906+or exchange, for immediate settlement transactions.
1907+939
1908+(b)(i) A person may pay the tax due by remitting to the state treasurer an amount of
1909+940
1910+gold equivalent in value to the tax due.
1911+941
1912+(ii) The state treasurer shall calculate the value of the gold remitted under this
1913+942
1914+Subsection (3) based on the average spot rate over the three months preceding the
1915+943
1916+day on which the tax is due.
1917+944
17391918 (iii) The state treasurer may not accept gold, unless the gold satisfies internationally
1740-856
1919+945
17411920 recognized investment grade purity standards, as determined by the state treasurer.
1742-857
1743-(b) When the state treasurer receives gold under this Subsection (3), the state treasurer
1744-858
1921+946
1922+(c) When the state treasurer receives gold under this Subsection (3), the state treasurer
1923+947
17451924 shall notify:
1746-859
1925+- 28 - 02-19 13:42 H.B. 528
1926+948
17471927 (i) the commission of the payment, including any information the commission
1748-860
1928+949
17491929 requests; and
1750-861
1930+950
17511931 (ii) the Division of Finance of the value of the gold received.
1752-862
1753-Section 14. Section 59-10-544 is amended to read:
1754-863
1932+951
1933+Section 15. Section 59-10-544 is amended to read:
1934+952
17551935 59-10-544 . General powers and duties of the commission -- Deposit, distribution,
1756-864
1936+953
17571937 or credit of revenues -- Refund reverts to state under certain circumstances.
1758-865
1938+954
17591939 (1)(a) The commission shall administer and enforce a tax imposed under this chapter for
1760-866
1940+955
17611941 which purpose it may divide the state into districts in each of which a branch office
1762-867
1942+956
17631943 of the commission may be maintained.
1764-868
1944+957
17651945 (b) A county may not be divided in forming a district.
1766-869
1946+958
17671947 (2)(a) The commission shall deposit at least quarterly all revenue collected or received
1768-870
1948+959
17691949 by the commission under this chapter with the state treasurer.
1770-871
1950+960
17711951 (b) Subject to Sections 59-10-529 and 59-10-531, the commission shall distribute and
1772-872
1952+961
17731953 credit, at least quarterly and based on a pro rata share of Income Tax Fund and
1774-873
1954+962
17751955 Uniform School Fund appropriations for the current fiscal year, the revenue
1776-874
1956+963
17771957 described in Subsection (2)(a) to:
1778-875
1958+964
17791959 (i) the Income Tax Fund; and
1780-876
1960+965
17811961 (ii) the Uniform School Fund in accordance with Section 53F-9-201.1.
1782-877
1962+966
17831963 (c) The commission may credit to or draw from the Income Tax Fund and the Uniform
1784-878
1964+967
17851965 School Fund:
1786-- 26 - 03-03 07:13 1st Sub. (Buff) H.B. 528
1787-879
1966+968
17881967 (i) annually to adjust for differences between estimates and actual amounts; or
1789-880
1968+969
17901969 (ii) in the proportion described in Subsection (2)(b) to issue a refund.
1791-881
1970+970
17921971 (d) If a refund the commission makes is not claimed within two years from the date the
1793-882
1972+971
17941973 commission issues the refund:
1795-883
1974+972
17961975 (i) the refund reverts to the state to be credited to the Income Tax Fund; and
1797-884
1976+973
17981977 (ii) no further claim may be made on the commission for the amount of the refund.
1799-885
1978+974
18001979 (3) Upon receipt of a notice described in Subsection 59-10-520(3)(c), the Division of
1801-886
1980+975
18021981 Finance shall credit from the Income Tax Fund Budget Reserve Account created in
1803-887
1982+976
18041983 Section 63J-1-313 an amount equal to the value of the gold and deposit the money as
1805-888
1984+977
18061985 provided in Subsection (2), as though the money were revenue collected or received by
1807-889
1986+978
18081987 the commission under this chapter.
1809-890
1810-Section 15. Section 59-10-1048 is enacted to read:
1811-891
1988+979
1989+Section 16. Section 59-10-1048 is enacted to read:
1990+980
18121991 59-10-1048 . Nonrefundable tax credit for payment in gold.
1813-892
1992+981
18141993 (1) As used in this section, "qualified claimant" means a claimant who:
1815-893
1816-(a) owns or operates a mine as defined in Section 59-5-201; and
1817-894
1818-(b) pays in gold the taxes owed under this chapter for the taxable year, as allowed under
1819-895
1994+- 29 - H.B. 528 02-19 13:42
1995+982
1996+(a) is a mine as defined in Section 59-5-201; and
1997+983
1998+(b) pays in gold the taxes owed under this chapter for the fiscal year, as allowed under
1999+984
18202000 Section 59-7-504.
1821-896
1822-(2) Subject to Subsection (3), a qualified claimant may claim a nonrefundable tax credit
1823-897
1824-equal to 5% of the qualified claimant's liability under this chapter for the taxable year,
1825-898
1826-excluding any credit available under this section.
1827-899
1828-(3)(a) If the qualified claimant owns or operates a mine on January 1, 2027, the qualified
1829-900
1830-claimant may claim a tax credit under this section for a taxable year that begins on or
1831-901
1832-after January 1, 2027, and before January 1, 2032.
1833-902
1834-(b) If the qualified claimant does not own or operate a mine on January 1, 2027, the
1835-903
1836-qualified claimant may claim a tax credit under this section for a taxable year that
1837-904
1838-begins on or after January 1, 2027, and before January 1, 2042.
1839-905
1840-Section 16. Section 65A-6-4 is amended to read:
1841-906
2001+985
2002+(2) A qualified claimant may claim a nonrefundable tax credit equal to 5% of the taxes
2003+986
2004+owed under this chapter for the taxable year as follows:
2005+987
2006+(a) for a mine in operation on January 1, 2026, a taxable year that begins on or after
2007+988
2008+January 1, 2026, and before January 1, 2031; or
2009+989
2010+(b) for a mine that is not in operation on January 1, 2026, a taxable year that begins on
2011+990
2012+or after January 1, 2026, and before January 1, 2041.
2013+991
2014+Section 17. Section 65A-6-4 is amended to read:
2015+992
18422016 65A-6-4 . Mineral leases -- Multiple leases on same land -- Rentals and royalties
1843-907
2017+993
18442018 -- Lease terms -- Great Salt Lake.
1845-908
2019+994
18462020 (1) As used in this section:
1847-909
2021+995
18482022 (a) "Great Salt Lake element or mineral" means:
1849-910
2023+996
18502024 (i) a rare earth element;
1851-911
2025+997
18522026 (ii) a trace element or mineral; or
1853-912
2027+998
18542028 (iii) a chemical compound that includes a rare earth element or trace element or
1855-- 27 - 1st Sub. (Buff) H.B. 528 03-03 07:13
1856-913
2029+999
18572030 mineral.
1858-914
2031+1000
18592032 (b) "Operator" means, for purposes of provisions applicable to the extraction of a Great
1860-915
2033+1001
18612034 Salt Lake element or mineral, a person qualified to do business in the state who is
1862-916
2035+1002
18632036 pursuing the extraction of a Great Salt Lake element or mineral.
1864-917
2037+1003
18652038 (c) "Rare earth element" is one of the following ores, minerals, or elements located in
1866-918
2039+1004
18672040 the brines or the sovereign lands of the Great Salt Lake:
1868-919
2041+1005
18692042 (i) lanthanum;
1870-920
2043+1006
18712044 (ii) cerium;
1872-921
2045+1007
18732046 (iii) praseodymium;
1874-922
2047+1008
18752048 (iv) neodymium;
1876-923
2049+1009
18772050 (v) samarium;
1878-924
2051+1010
18792052 (vi) europium;
1880-925
2053+1011
18812054 (vii) gadolinium;
1882-926
2055+1012
18832056 (viii) terbium;
1884-927
2057+1013
18852058 (ix) dysprosium;
1886-928
2059+1014
18872060 (x) holmium;
1888-929
2061+1015
18892062 (xi) erbium;
1890-930
2063+- 30 - 02-19 13:42 H.B. 528
2064+1016
18912065 (xii) thulium;
1892-931
2066+1017
18932067 (xiii) ytterbium;
1894-932
2068+1018
18952069 (xiv) lutetium; and
1896-933
2070+1019
18972071 (xv) yttrium.
1898-934
2072+1020
18992073 (d) "Trace element or mineral" means an element or mineral that is located in the brines
1900-935
2074+1021
19012075 or the sovereign lands of the Great Salt Lake that is not in production by July 1, 2020,
1902-936
2076+1022
19032077 and for which the state has not received a royalty payment by July 1, 2020.
1904-937
2078+1023
19052079 (2)(a) Mineral leases, including oil, gas, and hydrocarbon leases, may be issued for
1906-938
2080+1024
19072081 prospecting, exploring, developing, and producing minerals covering any portion of
1908-939
2082+1025
19092083 state lands or the reserved mineral interests of the state.
1910-940
2084+1026
19112085 (b)(i) Leases may be issued for different types of minerals on the same land.
1912-941
2086+1027
19132087 (ii) If leases are issued for different types of minerals on the same land, the leases
1914-942
2088+1028
19152089 shall include stipulations for simultaneous operations, except that for leases
1916-943
2090+1029
19172091 related to the Great Salt Lake the leases shall include stipulations for simultaneous
1918-944
2092+1030
19192093 operations that will not interfere with, impede, limit, or require changes to
1920-945
2094+1031
19212095 pre-existing rights.
1922-946
2096+1032
19232097 (c) No more than one lease may be issued for the same resource on the same land.
1924-- 28 - 03-03 07:13 1st Sub. (Buff) H.B. 528
1925-947
2098+1033
19262099 (d) The division shall require a separate royalty agreement for extraction of Great Salt
1927-948
2100+1034
19282101 Lake elements or minerals from brines of the Great Salt Lake when:
1929-949
2102+1035
19302103 (i) a mineral lease, a royalty agreement, or both that are in effect before the operator
1931-950
2104+1036
19322105 seeks to extract a particular Great Salt Lake element or mineral do not expressly
1933-951
2106+1037
19342107 include the right to extract the particular Great Salt Lake element or mineral; or
1935-952
2108+1038
19362109 (ii) the proposed operation will use brines from the Great Salt Lake, but will not
1937-953
2110+1039
19382111 occupy sovereign lands for the direct production of Great Salt Lake elements or
1939-954
2112+1040
19402113 minerals other than for incidental structures such as pumps and intake and outflow
1941-955
2114+1041
19422115 pipelines.
1943-956
2116+1042
19442117 (3)(a) Each mineral lease issued by the division shall provide for an annual rental of not
1945-957
2118+1043
19462119 less than $1 per acre per year, except that a mineral lease issued by the division
1947-958
2120+1044
19482121 involving the extraction of a Great Salt Lake element or mineral from brines in the
1949-959
2122+1045
19502123 Great Salt Lake shall provide for an annual rental of not less than $100 per acre per
1951-960
2124+1046
19522125 year.
1953-961
2126+1047
19542127 (b) However, a lease may provide for a rental credit, minimum rental, or minimum
1955-962
2128+1048
19562129 royalty upon commencement of production, as prescribed by rule.
1957-963
2130+1049
19582131 (4) The primary term of a mineral lease may not exceed:
1959-964
2132+- 31 - H.B. 528 02-19 13:42
2133+1050
19602134 (a) 20 years for oil shale and tar sands; and
1961-965
2135+1051
19622136 (b) 10 years for oil and gas and any other mineral.
1963-966
2137+1052
19642138 (5)(a) In addition to the requirements of Chapter 17, Part 3, Mineral or Element
1965-967
2139+1053
19662140 Extraction, and subject to the other provisions of this Subsection (5), for a mineral
1967-968
2141+1054
19682142 lease or royalty agreement involving the extraction of Great Salt Lake elements and
1969-969
2143+1055
19702144 minerals from brines in the Great Salt Lake, the division shall ensure that the
1971-970
2145+1056
19722146 following terms, as applicable, are included:
1973-971
2147+1057
19742148 (i) an extraction operation or extraction method shall adhere to commercially viable
1975-972
2149+1058
19762150 technologies that minimize water depletion;
1977-973
2151+1059
19782152 (ii) a provision authorizing the division to curtail or limit Great Salt Lake element or
1979-974
2153+1060
19802154 mineral production at any time the condition of the Great Salt Lake reaches the
1981-975
2155+1061
19822156 emergency trigger, as defined in Section 65A-17-101;
1983-976
2157+1062
19842158 (iii) a provision authorizing the division to withdraw lands, operations, extraction
1985-977
2159+1063
19862160 methods, or technologies from Great Salt Lake element or mineral production or
1987-978
2161+1064
19882162 Great Salt Lake element or mineral operations;
1989-979
2163+1065
19902164 (iv) a provision allowing the division to require an existing operator to use
1991-980
2165+1066
19922166 commercially viable, innovative technologies to minimize water depletions caused
1993-- 29 - 1st Sub. (Buff) H.B. 528 03-03 07:13
1994-981
2167+1067
19952168 by the planned mineral extraction as a condition of continued operations if the
1996-982
2169+1068
19972170 technology:
1998-983
2171+1069
19992172 (A) has been successfully implemented on a commercial scale in similar
2000-984
2173+1070
20012174 circumstances;
2002-985
2175+1071
20032176 (B) has been shown to be economically viable; and
2004-986
2177+1072
20052178 (C) is reasonably compatible with the operator's overall extraction process; and
2006-987
2179+1073
20072180 (v) a provision that provides for the reductions of the following after the primary
2008-988
2181+1074
20092182 term of a mineral lease or royalty agreement:
2010-989
2183+1075
20112184 (A) the acreage subject to the mineral lease by the acreage the operator does not
2012-990
2185+1076
20132186 use to extract a Great Salt Lake element or mineral during the primary term of
2014-991
2187+1077
20152188 the mineral lease under conditions that do not constitute waste, as defined in
2016-992
2189+1078
20172190 Section 65A-17-101; and
2018-993
2191+1079
20192192 (B) the volume of water that the operator may divert from the Great Salt Lake, by
2020-994
2193+1080
20212194 the volume of water that the operator does not use during the longer of the
2022-995
2195+1081
20232196 primary term of the mineral lease or seven years if the operator fails to use the
2024-996
2197+1082
20252198 volume of water for a beneficial use, except if the failure to use the volume of
2026-997
2199+1083
20272200 water is as a result of a reduction of water usage under Section 73-33-201 or is
2028-998
2201+- 32 - 02-19 13:42 H.B. 528
2202+1084
20292203 excused under Section 73-1-4.
2030-999
2204+1085
20312205 (b) If under Subsection (5)(a)(iv) the division requires an existing operator to use a
2032-1000
2206+1086
20332207 commercially viable, innovative technology, the division may not require use of a
2034-1001
2208+1087
20352209 technology not yet proven to be commercially viable on the Great Salt Lake and may
2036-1002
2210+1088
20372211 not require implementation of the technology to begin until after a reasonable period
2038-1003
2212+1089
20392213 determined by the division that is at least five years but does not exceed seven years.
2040-1004
2214+1090
20412215 (c)(i) If the volume of water that the operator may divert from the Great Salt Lake is
2042-1005
2216+1091
20432217 reduced under Subsection (5)(a)(v), the division shall pursue a judicial action to
2044-1006
2218+1092
20452219 declare all or a portion of the water right forfeited under Subsection 73-1-4(2).
2046-1007
2220+1093
20472221 (ii) If the division secures the reduction under this Subsection (5)(c), the division
2048-1008
2222+1094
20492223 shall petition the state engineer to order a reversal of the application approval in
2050-1009
2224+1095
20512225 accordance with the terms of the reduction or forfeiture of the water right.
2052-1010
2226+1096
20532227 (iii) Nothing in this Subsection (5) modifies or otherwise affects Section 73-1-4 or
2054-1011
2228+1097
20552229 73-3-30.
2056-1012
2230+1098
20572231 (6)(a) Before issuing a royalty agreement under Subsection (2)(d), the division may
2058-1013
2232+1099
20592233 require an operator to engage in a feasibility assessment and may issue a royalty
2060-1014
2234+1100
20612235 agreement without compliance of Subsection (5)(a) if the agreement:
2062-- 30 - 03-03 07:13 1st Sub. (Buff) H.B. 528
2063-1015
2236+1101
20642237 (i) has a term of 12 months or less; and
2065-1016
2238+1102
20662239 (ii) limits use of brines from the Great Salt Lake to a maximum of five acre-feet
2067-1017
2240+1103
20682241 during the term of the agreement.
2069-1018
2242+1104
20702243 (b) The division may make rules, in accordance with Title 63G, Chapter 3, Utah
2071-1019
2244+1105
20722245 Administrative Rulemaking Act, for implementing this Subsection (6).
2073-1020
2246+1106
20742247 (7)(a) Upon nomination from a prospective operator, the division shall by rule, made in
2075-1021
2248+1107
20762249 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2077-1022
2250+1108
20782251 establish a royalty rate and calculation methodology for a Great Salt Lake element or
2079-1023
2252+1109
20802253 mineral that:
2081-1024
2254+1110
20822255 (i) provides for a full and fair return to the state from the production of the Great Salt
2083-1025
2256+1111
20842257 Lake element or mineral;
2085-1026
2258+1112
20862259 (ii) is consistent with market royalty rates applicable to the production of the Great
2087-1027
2260+1113
20882261 Salt Lake element or mineral or of the production of oil and gas;
2089-1028
2262+1114
20902263 (iii) provides a base royalty rate;
2091-1029
2264+1115
20922265 (iv) provides a reduced royalty rate from the royalty rate under Subsection (7)(a)(iii)
2093-1030
2266+1116
20942267 if the royalty agreement:
2095-1031
2268+1117
20962269 (A) relates to a non-evaporative method of producing the Great Salt Lake element
2097-1032
2270+- 33 - H.B. 528 02-19 13:42
2271+1118
20982272 or mineral; or
2099-1033
2273+1119
21002274 (B) provides an incentive to use commercially viable, innovative technology to
2101-1034
2275+1120
21022276 minimize water depletion and evaporation as determined by the division;
2103-1035
2277+1121
21042278 (v) provides a reduced royalty rate from the royalty rate under Subsection (7)(a)(iii) if
2105-1036
2279+1122
21062280 the prospective operator for the extraction of lithium demonstrates to the
2107-1037
2281+1123
21082282 satisfaction of the division that the prospective operator has an agreement with a
2109-1038
2283+1124
21102284 person who will process or manufacture a product in this state, exclusive of any
2111-1039
2285+1125
21122286 primary or secondary lithium processing or manufacturing, using the lithium
2113-1040
2287+1126
21142288 extracted by the prospective operator; and
2115-1041
2289+1127
21162290 (vi) subject to Subsection (7)(e), provides for a royalty rate that is based on the
2117-1042
2291+1128
21182292 highest market value prevailing at the time of the sale or disposal of the following:
2119-1043
2293+1129
21202294 (A) the Great Salt Lake element or mineral; or
2121-1044
2295+1130
21222296 (B) a product the lessee produces from the Great Salt Lake element or mineral.
2123-1045
2297+1131
21242298 (b) Before entering into a royalty agreement permitting the extraction of Great Salt Lake
2125-1046
2299+1132
21262300 elements or minerals, the operator shall:
2127-1047
2301+1133
21282302 (i) demonstrate the proposed operation's commercial viability;
2129-1048
2303+1134
21302304 (ii) certify before operation begins that the operator is not negatively impacting the
2131-- 31 - 1st Sub. (Buff) H.B. 528 03-03 07:13
2132-1049
2305+1135
21332306 biota or chemistry of the Great Salt Lake; and
2134-1050
2307+1136
21352308 (iii) obtain the approval of the division and the Department of Environmental Quality
2136-1051
2309+1137
21372310 that the certification supports a finding that the operation will not negatively
2138-1052
2311+1138
21392312 impact the biota or chemistry of the Great Salt Lake.
2140-1053
2313+1139
21412314 (c) A new mineral lease for a Great Salt Lake element or mineral in production in the
2142-1054
2315+1140
21432316 Great Salt Lake as of May 3, 2023, is subject to new royalty rates due to emergent
2144-1055
2317+1141
21452318 technologies.
2146-1056
2319+1142
21472320 (d) An operator who as of July 1, 2020, had a mineral lease with the division but not a
2148-1057
2321+1143
21492322 royalty agreement and who is subject to a severance tax under Subsection [59-5-202
2150-1058
2323+1144
21512324 (5)] 59-5-202(7) shall pay a royalty under this section in addition to the severance tax.
2152-1059
2325+1145
21532326 (e) The royalty rate described in Subsection (7)(a)(vi) may not be reassessed during the
2154-1060
2327+1146
21552328 primary term of an initial royalty agreement issued under this section, but may be
2156-1061
2329+1147
21572330 reassessed upon the conclusion of the primary term.
2158-1062
2331+1148
21592332 (8)(a) Except as provided in Subsection (8)(b), an operator who extracts a Great Salt
2160-1063
2333+1149
21612334 Lake element or mineral from tailings from the production of Great Salt Lake
2162-1064
2335+1150
21632336 elements or minerals from brines in the Great Salt Lake is subject to this section to
2164-1065
2337+1151
21652338 the same extent as an operator producing a Great Salt Lake element or mineral from
2166-1066
2339+- 34 - 02-19 13:42 H.B. 528
2340+1152
21672341 brines in the Great Salt Lake.
2168-1067
2342+1153
21692343 (b) An operator that, as of May 3, 2023, has an agreement to recover a Great Salt Lake
2170-1068
2344+1154
21712345 element or mineral from existing tailings, discarded material, end-use products, or
2172-1069
2346+1155
21732347 waste products produced from the evaporation and processing of Great Salt Lake
2174-1070
2348+1156
21752349 brines is not subject to this section, except as to the payment of royalties set by the
2176-1071
2350+1157
21772351 division under Subsection (7)(a). The division shall make rules, in accordance with
2178-1072
2352+1158
21792353 Title 63G, Chapter 3, Utah Administrative Rulemaking Act, regarding the issuance
2180-1073
2354+1159
21812355 and termination of a royalty agreement for mineral extraction from tailings, discarded
2182-1074
2356+1160
21832357 material, end-use products, or waste products produced from the evaporation and
2184-1075
2358+1161
21852359 processing of Great Salt Lake brines.
2186-1076
2360+1162
21872361 (c) An operator that, as of May 3, 2023, has an underlying agreement to recover a Great
2188-1077
2362+1163
21892363 Salt Lake element or mineral shall obtain an additional agreement for any additional
2190-1078
2364+1164
21912365 Great Salt Lake element or mineral produced from the tailings, discarded material,
2192-1079
2366+1165
21932367 end-use products, or waste products newly produced under the underlying agreement.
2194-1080
2368+1166
21952369 The additional agreement is subject to this section.
2196-1081
2370+1167
21972371 (9) The division shall annually report to the Natural Resources, Agriculture, and
2198-1082
2372+1168
21992373 Environmental Quality Appropriations Subcommittee regarding the amount of money
2200-- 32 - 03-03 07:13 1st Sub. (Buff) H.B. 528
2201-1083
2374+1169
22022375 collected under this section from royalties provided for in Subsection (7).
2203-1084
2376+1170
22042377 (10)(a) In the issuance of royalty agreements for the extraction of lithium from the Great
2205-1085
2378+1171
22062379 Salt Lake, the division shall prioritize applicants that do not use evaporative
2207-1086
2380+1172
22082381 concentration of Great Salt Lake brines in any stage of the extractive process.
2209-1087
2382+1173
22102383 (b) The division may make rules, in accordance with Title 63G, Chapter 3, Utah
2211-1088
2384+1174
22122385 Administrative Rulemaking Act, creating a process for implementing this Subsection
2213-1089
2386+1175
22142387 (10).
2215-1090
2388+1176
22162389 (11) Except in relationship to mineral leases related to the Great Salt Lake, the division
2217-1091
2390+1177
22182391 shall make rules regarding the continuation of a mineral lease after the primary term has
2219-1092
2392+1178
22202393 expired, which shall provide that a mineral lease shall continue so long as:
2221-1093
2394+1179
22222395 (a) the mineral covered by the lease is being produced in paying quantities from:
2223-1094
2396+1180
22242397 (i) the leased premises;
2225-1095
2398+1181
22262399 (ii) lands pooled, communitized, or unitized with the leased premises; or
2227-1096
2400+1182
22282401 (iii) lands constituting an approved mining or drilling unit with respect to the leased
2229-1097
2402+1183
22302403 premises; or
2231-1098
2404+1184
22322405 (b)(i) the lessee is engaged in diligent operations, exploration, research, or
2233-1099
2406+1185
22342407 development which is reasonably calculated to advance development or
2235-1100
2408+- 35 - H.B. 528 02-19 13:42
2409+1186
22362410 production of the mineral covered by the lease from:
2237-1101
2411+1187
22382412 (A) the leased premises;
2239-1102
2413+1188
22402414 (B) lands pooled, communitized, or unitized with the leased premises; or
2241-1103
2415+1189
22422416 (C) lands constituting an approved mining or drilling unit with respect to the
2243-1104
2417+1190
22442418 leased premises; and
2245-1105
2419+1191
22462420 (ii) the lessee pays a minimum royalty.
2247-1106
2421+1192
22482422 (12) For the purposes of Subsection (11), diligent operations with respect to oil, gas, and
2249-1107
2423+1193
22502424 other hydrocarbon leases may include cessation of operations not in excess of 90 days in
2251-1108
2425+1194
22522426 duration.
2253-1109
2427+1195
22542428 (13)(a) The division shall study and analyze each mineral lease and mineral royalty
2255-1110
2429+1196
22562430 agreement issued on the Great Salt Lake and compare and evaluate whether the
2257-1111
2431+1197
22582432 mineral leases and royalty agreements are representative of current market
2259-1112
2433+1198
22602434 conditions. As part of this study, the division shall:
2261-1113
2435+1199
22622436 (i) make the following determinations for mineral leases:
2263-1114
2437+1200
22642438 (A) whether the entire surface area described within the mineral lease is being
2265-1115
2439+1201
22662440 used; and
2267-1116
2441+1202
22682442 (B) whether the annual lease payments are representative of current market
2269-- 33 - 1st Sub. (Buff) H.B. 528 03-03 07:13
2270-1117
2443+1203
22712444 conditions; and
2272-1118
2445+1204
22732446 (ii) for royalty agreements, perform studies and comparative analyses to determine
2274-1119
2447+1205
22752448 whether the state is receiving royalty rates consistent with current market
2276-1120
2449+1206
22772450 conditions.
2278-1121
2451+1207
22792452 (b) By no later than the 2023 November interim meeting, the division shall report the
2280-1122
2453+1208
22812454 division's findings of the study required by this Subsection (13) to the Natural
2282-1123
2455+1209
22832456 Resources, Agriculture, and Environment Interim Committee.
2284-1124
2457+1210
22852458 (14) The division may make rules, in accordance with Title 63G, Chapter 3, Utah
2286-1125
2459+1211
22872460 Administrative Rulemaking Act, for implementing this section.
2288-1126
2461+1212
22892462 (15) The provisions in this section related to extraction of a Great Salt Lake element or
2290-1127
2463+1213
22912464 mineral under a mineral lease or royalty agreement apply to a mineral lease or royalty
2292-1128
2465+1214
22932466 agreement in effect on May 1, 2024, and any mineral lease or royalty agreement entered
2294-1129
2467+1215
22952468 into after May 1, 2024.
2296-1130
2297-Section 17. Section 65A-17-306 is amended to read:
2298-1131
2469+1216
2470+Section 18. Section 65A-17-306 is amended to read:
2471+1217
22992472 65A-17-306 . Certification of eligibility for tax rates.
2300-1132
2473+1218
23012474 (1) As used in this section:
2302-1133
2475+1219
23032476 (a) "Great Salt Lake element or mineral" means the same as that term is defined in
2304-1134
2477+- 36 - 02-19 13:42 H.B. 528
2478+1220
23052479 Subsection [59-5-202(5)] 59-5-202(7).
2306-1135
2480+1221
23072481 (b) "Great Salt Lake extraction operator" means the same as that term is defined in
2308-1136
2482+1222
23092483 Subsection [59-5-202(5)] 59-5-202(7).
2310-1137
2484+1223
23112485 (2)(a) A Great Salt Lake extraction operator shall by no later than December 31 of each
2312-1138
2486+1224
23132487 year certify to the division for purposes of determining a severance tax imposed
2314-1139
2488+1225
23152489 under Subsection [59-5-202(5)] 59-5-202(7) during the next succeeding calendar year,
2316-1140
2490+1226
23172491 the information listed in Subsection (2)(b).
2318-1141
2492+1227
23192493 (b) The Great Salt Lake extraction operator shall certify the following for the calendar
2320-1142
2494+1228
23212495 year ending on the date the Great Salt Lake extraction operator submits the
2322-1143
2496+1229
23232497 certification for purposes of determining a severance tax imposed during the next
2324-1144
2498+1230
23252499 succeeding calendar year:
2326-1145
2500+1231
23272501 (i) the Great Salt Lake extraction operator's name;
2328-1146
2502+1232
23292503 (ii) the Great Salt Lake extraction operator's tax identification number;
2330-1147
2504+1233
23312505 (iii) whether at the time a Great Salt Lake element or mineral is extracted, the Great
2332-1148
2506+1234
23332507 Salt Lake extraction operator is a party or a third-party beneficiary to a voluntary
2334-1149
2508+1235
23352509 agreement for water rights with an approved beneficial use by a division as
2336-1150
2510+1236
23372511 defined in Section 73-3-30;
2338-- 34 - 03-03 07:13 1st Sub. (Buff) H.B. 528
2339-1151
2512+1237
23402513 (iv) if the Great Salt Lake extraction operator is not a party or third-party beneficiary
2341-1152
2514+1238
23422515 to a voluntary agreement for water rights with an approved beneficial use by a
2343-1153
2516+1239
23442517 division as defined in Section 73-3-30, whether the Great Salt Lake extraction
2345-1154
2518+1240
23462519 operator uses evaporative concentrations of Great Salt Lake brines in any stage of
2347-1155
2520+1241
23482521 the Great Salt Lake extraction operator's extractive process;
2349-1156
2522+1242
23502523 (v) whether the Great Salt Lake extraction operator extracted a Great Salt Lake
2351-1157
2524+1243
23522525 element or mineral when the Great Salt Lake elevation recorded under Subsection
2353-1158
2526+1244
23542527 (3) is at or above 4,198 feet, and what the Great Salt Lake element or mineral
2355-1159
2528+1245
23562529 extracted was; and
2357-1160
2530+1246
23582531 (vi) other information as determined by the division by rule made in accordance with
2359-1161
2532+1247
23602533 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
2361-1162
2534+1248
23622535 (c) A Great Salt Lake extraction operator shall submit the certification on a form
2363-1163
2536+1249
23642537 provided by the division and approved by the State Tax Commission.
2365-1164
2538+1250
23662539 (3) The division shall record the Great Salt Lake elevation for purposes of this section and
2367-1165
2540+1251
23682541 Subsection [59-5-202(5)] 59-5-202(7) as of June 15 to be applied during the next
2369-1166
2542+1252
23702543 succeeding calendar year.
2371-1167
2544+1253
23722545 (4) The division shall forward to the State Tax Commission by no later than January 15 of
2373-1168
2546+- 37 - H.B. 528 02-19 13:42
2547+1254
23742548 the year for which the severance tax shall be determined:
2375-1169
2549+1255
23762550 (a) the Great Salt Lake elevation level recorded under Subsection (3);
2377-1170
2551+1256
23782552 (b) a list of the Great Salt Lake extraction operators who are subject to a severance tax
2379-1171
2553+1257
23802554 under Subsection [59-5-202(5)] 59-5-202(7);
2381-1172
2555+1258
23822556 (c) the Great Salt Lake extraction operator's tax identification number for each Great
2383-1173
2557+1259
23842558 Salt Lake extraction operator listed in Subsection (4)(b); and
2385-1174
2559+1260
23862560 (d) for each Great Salt Lake extraction operator subject to a severance tax under
2387-1175
2561+1261
23882562 Subsection [59-5-202(5)] 59-5-202(7):
2389-1176
2563+1262
23902564 (i) each Great Salt Lake element or mineral or metalliferous compound extracted by
2391-1177
2565+1263
23922566 the Great Salt Lake extraction operator that is subject to the severance tax; and
2393-1178
2567+1264
23942568 (ii) the rate of severance tax that is to be imposed under Subsection [59-5-202(5)]
2395-1179
2569+1265
23962570 59-5-202(7).
2397-1180
2571+1266
23982572 (5) The division may audit a certification submitted under this section for completeness and
2399-1181
2573+1267
24002574 accuracy.
2401-1182
2575+1268
24022576 (6) The division may take an enforcement action against a Great Salt Lake extraction
2403-1183
2577+1269
24042578 operator who violates this section.
2405-1184
2406-Section 18. Effective Date.
2407-- 35 - 1st Sub. (Buff) H.B. 528 03-03 07:13
2408-1185
2409-This bill takes effect for a future taxable year beginning on or after January 1, 2027.
2410-- 36 -
2579+1270
2580+Section 19. Effective Date.
2581+1271
2582+This bill takes effect on May 7, 2025.
2583+- 38 -