03-03 07:13 1st Sub. (Buff) H.B. 528
Ken Ivory proposes the following substitute bill:
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Tax Payments with Precious Metals
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ken Ivory
Senate Sponsor:
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LONG TITLE
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General Description:
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This bill modifies provisions related to tax payments.
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Highlighted Provisions:
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This bill:
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▸ allows a person to pay in gold mining severance taxes and income taxes;
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▸ for specified years, provides:
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● a reduced severance tax rate for taxpayers who pay in gold; and
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● a nonrefundable income tax credit for mine operators who pay in gold; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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51-9-306, as last amended by Laws of Utah 2024, Chapter 25
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51-9-307, as last amended by Laws of Utah 2024, Chapter 25
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59-1-403, as last amended by Laws of Utah 2024, Chapters 25, 35
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59-5-202, as last amended by Laws of Utah 2024, Chapter 25
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59-5-203, as last amended by Laws of Utah 2024, Chapter 25
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59-5-207, as last amended by Laws of Utah 2024, Chapter 25
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59-5-215, as last amended by Laws of Utah 2024, Chapter 25
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59-7-504, as last amended by Laws of Utah 2021, Chapter 367
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59-7-532, as last amended by Laws of Utah 2022, Chapter 456
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59-7-536, as renumbered and amended by Laws of Utah 1993, Chapter 169
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59-10-514, as last amended by Laws of Utah 2021, Chapter 367
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59-10-520, as renumbered and amended by Laws of Utah 1987, Chapter 2
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59-10-544, as last amended by Laws of Utah 2022, Chapter 456
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65A-6-4, as last amended by Laws of Utah 2024, Chapter 25
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65A-17-306, as enacted by Laws of Utah 2024, Chapter 25
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ENACTS:
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59-7-627, Utah Code Annotated 1953
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59-10-1048, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 51-9-306 is amended to read:
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51-9-306 . Deposit of certain severance tax revenue for specified state agencies.
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(1) As used in this section:
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(a) "Aggregate annual revenue" means the aggregate annual revenue collected in a fiscal
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year from the taxes imposed under Title 59, Chapter 5, Severance Tax on Oil, Gas,
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and Mining, after subtracting the amounts required to be distributed under Sections
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51-9-305, 59-5-116, and 59-5-119 and under Subsection [59-5-202(5)(c)]
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59-5-202(7)(c).
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(b) "Aggregate annual mining revenue" means the aggregate annual revenue collected in
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a fiscal year from taxes imposed under Title 59, Chapter 5, Part 2, Mining Severance
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Tax, after subtracting the amounts required to be distributed under Section 51-9-305
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and under Subsection [59-5-202(5)(c)] 59-5-202(7)(c).
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(c) "Aggregate annual oil and gas revenue" means the aggregate annual revenue
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collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Part 1, Oil
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and Gas Severance Tax, after subtracting the amounts required to be distributed
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under Sections 51-9-305, 59-5-116, and 59-5-119.
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(d) "Average aggregate annual revenue" means the three-year rolling average of the
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aggregate annual revenue collected in a fiscal year from the taxes imposed under
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Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining:
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(i) after subtracting the amounts required to be distributed under Sections 51-9-305,
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59-5-116, and 59-5-119 and under Subsection [59-5-202(5)(c)] 59-5-202(7)(c); and
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(ii) ending in the fiscal year immediately preceding the fiscal year of a deposit
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required by this section.
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(e) "Average aggregate annual mining revenue" means the three-year rolling average of
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the aggregate annual revenue collected in a fiscal year from the taxes imposed under
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Title 59, Chapter 5, Part 2, Mining Severance Tax:
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(i) after subtracting the amounts required to be distributed under Section 51-9-305
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and under Subsection [59-5-202(5)(c)] 59-5-202(7)(c); and
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(ii) ending in the fiscal year immediately preceding the fiscal year of a deposit
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required by this section.
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(f) "Average aggregate annual oil and gas revenue" means the three-year rolling average
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of the aggregate annual revenue collected in a fiscal year from the taxes imposed
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under Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax:
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(i) after subtracting the amounts required to be distributed under Sections 51-9-305,
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59-5-116, and 59-5-119; and
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(ii) ending in the fiscal year immediately preceding the fiscal year of a deposit
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required by this section.
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(2) After making the deposits of oil and gas severance tax revenue as required under
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Sections 59-5-116 and 59-5-119 and making the credits under Section 51-9-305, for a
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fiscal year beginning on or after July 1, 2021, the State Tax Commission shall annually
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make the following deposits:
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(a) to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in
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Section 19-2a-106, the following average aggregate annual revenue:
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(i) 2.75% of the first $50,000,000 of the average aggregate annual revenue;
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(ii) 1% of the next $50,000,000 of the average aggregate annual revenue; and
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(iii) .5% of the average aggregate annual revenue that exceeds $100,000,000;
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(b) to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created in
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Section 19-5-126, the following average aggregate annual revenue:
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(i) .4% of the first $50,000,000 of the average aggregate annual revenue;
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(ii) .15% of the next $50,000,000 of the average aggregate annual revenue; and
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(iii) .08% of the average aggregate annual revenue that exceeds $100,000,000;
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(c) to the Division of Oil, Gas, and Mining Restricted Account, created in Section
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40-6-23, the following:
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(i)(A) 11.5% of the first $50,000,000 of the average aggregate annual mining
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revenue;
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(B) 3% of the next $50,000,000 of the average aggregate annual mining revenue;
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and
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(C) 1% of the average aggregate annual mining revenue that exceeds
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$100,000,000; and
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(ii)(A) 18% of the first $50,000,000 of the average aggregate annual oil and gas
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revenue;
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(B) 3% of the next $50,000,000 of the average aggregate annual oil and gas
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revenue; and
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(C) 1% of the average aggregate annual oil and gas revenue that exceeds
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$100,000,000; and
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(d) to the Utah Geological Survey Restricted Account, created in Section 79-3-403, the
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following average aggregate annual revenue:
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(i) 2.5% of the first $50,000,000 of the average aggregate annual revenue;
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(ii) 1% of the next $50,000,000 of the average aggregate annual revenue; and
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(iii) .5% of the average aggregate annual revenue that exceeds $100,000,000.
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(3) If the money collected in a fiscal year from the taxes imposed under Title 59, Chapter 5,
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Severance Tax on Oil, Gas, and Mining, is insufficient to make the deposits required by
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Subsection (2), the State Tax Commission shall deposit money collected in the fiscal
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year as follows:
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(a) to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in
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Section 19-2a-106, the following revenue:
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(i) 2.75% of the first $50,000,000 of the aggregate annual revenue;
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(ii) 1% of the next $50,000,000 of the aggregate annual revenue; and
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(iii) .5% of the aggregate annual revenue that exceeds $100,000,000;
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(b) to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created in
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Section 19-5-126, the following revenue:
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(i) .4% of the first $50,000,000 of the aggregate annual revenue;
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(ii) .15% of the next $50,000,000 of the aggregate annual revenue; and
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(iii) .08% of the aggregate annual revenue that exceeds $100,000,000;
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(c) to the Division of Oil, Gas, and Mining Restricted Account, created in Section
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40-6-23, the following:
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(i)(A) 11.5% of the first $50,000,000 of the aggregate annual mining revenue;
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(B) 3% of the next $50,000,000 of the aggregate annual mining revenue; and
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(C) 1% of the aggregate annual mining revenue that exceeds $100,000,000; and
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(ii)(A) 18% of the first $50,000,000 of the aggregate annual oil and gas revenue;
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(B) 3% of the next $50,000,000 of the aggregate annual oil and gas revenue; and
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(C) 1% of the aggregate annual oil and gas revenue that exceeds $100,000,000;
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and
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(d) to the Utah Geological Survey Restricted Account, created in Section 79-3-403, the
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following revenue:
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(i) 2.5% of the first $50,000,000 of the aggregate annual revenue;
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(ii) 1% of the next $50,000,000 of the aggregate annual revenue; and
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(iii) .5% of the aggregate annual revenue that exceeds $100,000,000.
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(4) The severance tax revenues deposited under this section into restricted accounts for the
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state agencies specified in Subsection (2) and appropriated from the restricted accounts
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offset and supplant General Fund appropriations used to pay the costs of programs or
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projects administered by the state agencies that are primarily related to oil, gas, and
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mining.
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Section 2. Section 51-9-307 is amended to read:
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51-9-307 . New Severance Tax Revenue Special Revenue Fund.
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(1) As used in this section:
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(a) "Fund" means the New Severance Tax Revenue Special Revenue Fund created in
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this section.
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(b) "New revenue" means revenue collected above $100,000,000 from the taxes imposed
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under Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining, after subtracting
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the amounts required to be distributed under Sections 51-9-305, 51-9-306, 59-5-116,
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59-5-119, and 59-5-121 and under Subsection [59-5-202(5)(c)] 59-5-202(7)(c).
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(2) There is created a special revenue fund known as the "New Severance Tax Revenue
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Special Revenue Fund" that consists of:
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(a) money deposited by the State Tax Commission in accordance with this section; and
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(b) interest earned on the money in the fund.
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(3) Beginning July 1, 2021, the State Tax Commission shall deposit into the fund 100% of
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new revenue until the new revenue equals or exceeds $200,000,000 in a fiscal year.
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Section 3. Section 59-1-403 is amended to read:
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59-1-403 . Confidentiality -- Exceptions -- Penalty -- Application to property tax.
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(1) As used in this section:
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(a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
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(i) the commission administers under:
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(A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax
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Act;
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(B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
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(C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
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(D) Section 19-6-805;
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(E) Section 63H-1-205; or
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(F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
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Charges; and
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(ii) with respect to which the commission distributes the revenue collected from the
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tax, fee, or charge to a qualifying jurisdiction.
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(b) "Qualifying jurisdiction" means:
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(i) a county, city, or town;
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(ii) the military installation development authority created in Section 63H-1-201; or
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(iii) the Utah Inland Port Authority created in Section 11-58-201.
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(2)(a) Any of the following may not divulge or make known in any manner any
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information gained by that person from any return filed with the commission:
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(i) a tax commissioner;
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(ii) an agent, clerk, or other officer or employee of the commission; or
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(iii) a representative, agent, clerk, or other officer or employee of any county, city, or
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town.
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(b) An official charged with the custody of a return filed with the commission is not
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required to produce the return or evidence of anything contained in the return in any
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action or proceeding in any court, except:
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(i) in accordance with judicial order;
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(ii) on behalf of the commission in any action or proceeding under:
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(A) this title; or
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(B) other law under which persons are required to file returns with the
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commission;
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(iii) on behalf of the commission in any action or proceeding to which the
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commission is a party; or
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(iv) on behalf of any party to any action or proceeding under this title if the report or
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facts shown by the return are directly involved in the action or proceeding.
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(c) Notwithstanding Subsection (2)(b), a court may require the production of, and may
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admit in evidence, any portion of a return or of the facts shown by the return, as are
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specifically pertinent to the action or proceeding.
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(3) This section does not prohibit:
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(a) a person or that person's duly authorized representative from receiving a copy of any
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return or report filed in connection with that person's own tax;
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(b) the publication of statistics as long as the statistics are classified to prevent the
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identification of particular reports or returns; and
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(c) the inspection by the attorney general or other legal representative of the state of the
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report or return of any taxpayer:
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(i) who brings action to set aside or review a tax based on the report or return;
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(ii) against whom an action or proceeding is contemplated or has been instituted
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under this title; or
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(iii) against whom the state has an unsatisfied money judgment.
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(4)(a) Notwithstanding Subsection (2) and for purposes of administration, the
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commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
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Administrative Rulemaking Act, provide for a reciprocal exchange of information
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with:
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(i) the United States Internal Revenue Service; or
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(ii) the revenue service of any other state.
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(b) Notwithstanding Subsection (2) and for all taxes except individual income tax and
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corporate franchise tax, the commission may by rule, made in accordance with Title
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63G, Chapter 3, Utah Administrative Rulemaking Act, share information gathered
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from returns and other written statements with the federal government, any other
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state, any of the political subdivisions of another state, or any political subdivision of
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this state, except as limited by Sections 59-12-209 and 59-12-210, if the political
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subdivision, other state, or the federal government grant substantially similar
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privileges to this state.
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(c) Notwithstanding Subsection (2) and for all taxes except individual income tax and
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corporate franchise tax, the commission may by rule, in accordance with Title 63G,
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Chapter 3, Utah Administrative Rulemaking Act, provide for the issuance of
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information concerning the identity and other information of taxpayers who have
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failed to file tax returns or to pay any tax due.
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(d) Notwithstanding Subsection (2), the commission shall provide to the director of the
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Division of Environmental Response and Remediation, as defined in Section
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19-6-402, as requested by the director of the Division of Environmental Response
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and Remediation, any records, returns, or other information filed with the
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commission under Chapter 13, Motor and Special Fuel Tax Act, or Section
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19-6-410.5 regarding the environmental assurance program participation fee.
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(e) Notwithstanding Subsection (2), at the request of any person the commission shall
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provide that person sales and purchase volume data reported to the commission on a
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report, return, or other information filed with the commission under:
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(i) Chapter 13, Part 2, Motor Fuel; or
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(ii) Chapter 13, Part 4, Aviation Fuel.
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(f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer,
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as defined in Section 59-22-202, the commission shall report to the manufacturer:
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(i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
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manufacturer and reported to the commission for the previous calendar year under
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Section 59-14-407; and
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(ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
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manufacturer for which a tax refund was granted during the previous calendar
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year under Section 59-14-401 and reported to the commission under Subsection
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59-14-401(1)(a)(v).
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(g) Notwithstanding Subsection (2), the commission shall notify manufacturers,
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distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is
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prohibited from selling cigarettes to consumers within the state under Subsection
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59-14-210(2).
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(h) Notwithstanding Subsection (2), the commission may:
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(i) provide to the Division of Consumer Protection within the Department of
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Commerce and the attorney general data:
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(A) reported to the commission under Section 59-14-212; or
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(B) related to a violation under Section 59-14-211; and
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(ii) upon request, provide to any person data reported to the commission under
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Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
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(i) Notwithstanding Subsection (2), the commission shall, at the request of a committee
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of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's
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Office of Planning and Budget, provide to the committee or office the total amount of
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revenues collected by the commission under Chapter 24, Radioactive Waste Facility
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Tax Act, for the time period specified by the committee or office.
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(j) Notwithstanding Subsection (2), the commission shall make the directory required by
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Section 59-14-603 available for public inspection.
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(k) Notwithstanding Subsection (2), the commission may share information with federal,
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state, or local agencies as provided in Subsection 59-14-606(3).
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(l)(i) Notwithstanding Subsection (2), the commission shall provide the Office of
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Recovery Services within the Department of Health and Human Services any
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relevant information obtained from a return filed under Chapter 10, Individual
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Income Tax Act, regarding a taxpayer who has become obligated to the Office of
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Recovery Services.
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(ii) The information described in Subsection (4)(l)(i) may be provided by the Office
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of Recovery Services to any other state's child support collection agency involved
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in enforcing that support obligation.
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(m)(i) Notwithstanding Subsection (2), upon request from the state court
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administrator, the commission shall provide to the state court administrator, the
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name, address, telephone number, county of residence, and social security number
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on resident returns filed under Chapter 10, Individual Income Tax Act.
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(ii) The state court administrator may use the information described in Subsection
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(4)(m)(i) only as a source list for the master jury list described in Section
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78B-1-106.
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(n)(i) As used in this Subsection (4)(n):
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(A) "GOEO" means the Governor's Office of Economic Opportunity created in
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Section 63N-1a-301.
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(B) "Income tax information" means information gained by the commission that is
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required to be attached to or included in a return filed with the commission
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under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10,
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Individual Income Tax Act.
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(C) "Other tax information" means information gained by the commission that is
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required to be attached to or included in a return filed with the commission
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except for a return filed under Chapter 7, Corporate Franchise and Income
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Taxes, or Chapter 10, Individual Income Tax Act.
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(D) "Tax information" means income tax information or other tax information.
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(ii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
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(4)(n)(ii)(B) or (C), the commission shall at the request of GOEO provide to
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GOEO all income tax information.
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(B) For purposes of a request for income tax information made under Subsection
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(4)(n)(ii)(A), GOEO may not request and the commission may not provide to
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GOEO a person's address, name, social security number, or taxpayer
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identification number.
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(C) In providing income tax information to GOEO, the commission shall in all
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instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
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(iii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
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(4)(n)(iii)(B), the commission shall at the request of GOEO provide to GOEO
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other tax information.
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(B) Before providing other tax information to GOEO, the commission shall redact
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or remove any name, address, social security number, or taxpayer identification
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number.
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(iv) GOEO may provide tax information received from the commission in accordance
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with this Subsection (4)(n) only:
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(A) as a fiscal estimate, fiscal note information, or statistical information; and
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(B) if the tax information is classified to prevent the identification of a particular
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return.
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(v)(A) A person may not request tax information from GOEO under Title 63G,
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Chapter 2, Government Records Access and Management Act, or this section,
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if GOEO received the tax information from the commission in accordance with
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this Subsection (4)(n).
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(B) GOEO may not provide to a person that requests tax information in
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accordance with Subsection (4)(n)(v)(A) any tax information other than the tax
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information GOEO provides in accordance with Subsection (4)(n)(iv).
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(o) Notwithstanding Subsection (2), the commission may provide to the governing board
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of the agreement or a taxing official of another state, the District of Columbia, the
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United States, or a territory of the United States:
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(i) the following relating to an agreement sales and use tax:
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(A) information contained in a return filed with the commission;
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(B) information contained in a report filed with the commission;
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(C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
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(D) a document filed with the commission; or
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(ii) a report of an audit or investigation made with respect to an agreement sales and
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use tax.
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(p) Notwithstanding Subsection (2), the commission may provide information
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concerning a taxpayer's state income tax return or state income tax withholding
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information to the Driver License Division if the Driver License Division:
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(i) requests the information; and
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(ii) provides the commission with a signed release form from the taxpayer allowing
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the Driver License Division access to the information.
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(q) Notwithstanding Subsection (2), the commission shall provide to the Utah
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Communications Authority, or a division of the Utah Communications Authority, the
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information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
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63H-7a-502.
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(r) Notwithstanding Subsection (2), the commission shall provide to the Utah
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Educational Savings Plan information related to a resident or nonresident individual's
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contribution to a Utah Educational Savings Plan account as designated on the
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resident or nonresident's individual income tax return as provided under Section
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59-10-1313.
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(s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
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Sections 26B-3-106 and 26B-3-903, the commission shall provide an eligibility
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worker with the Department of Health and Human Services or its designee with the
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adjusted gross income of an individual if:
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(i) an eligibility worker with the Department of Health and Human Services or its
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designee requests the information from the commission; and
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(ii) the eligibility worker has complied with the identity verification and consent
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provisions of Sections 26B-3-106 and 26B-3-903.
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(t) Notwithstanding Subsection (2), the commission may provide to a county, as
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determined by the commission, information declared on an individual income tax
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return in accordance with Section 59-10-103.1 that relates to eligibility to claim a
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residential exemption authorized under Section 59-2-103.
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(u) Notwithstanding Subsection (2), the commission shall provide a report regarding any
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access line provider that is over 90 days delinquent in payment to the commission of
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amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid
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Wireless Telecommunications Service Charges, to the board of the Utah
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Communications Authority created in Section 63H-7a-201.
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(v) Notwithstanding Subsection (2), the commission shall provide the Department of
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Environmental Quality a report on the amount of tax paid by a radioactive waste
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facility for the previous calendar year under Section 59-24-103.5.
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(w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
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Department of Workforce Services any information received under Chapter 10, Part
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4, Withholding of Tax, that is relevant to the duties of the Department of Workforce
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Services.
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(x) Notwithstanding Subsection (2), the commission may provide the Public Service
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Commission or the Division of Public Utilities information related to a seller that
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collects and remits to the commission a charge described in Subsection 69-2-405(2),
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including the seller's identity and the number of charges described in Subsection
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69-2-405(2) that the seller collects.
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(y)(i) Notwithstanding Subsection (2), the commission shall provide to each
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qualifying jurisdiction the collection data necessary to verify the revenue collected
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by the commission for a distributed tax, fee, or charge collected within the
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qualifying jurisdiction.
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(ii) In addition to the information provided under Subsection (4)(y)(i), the
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commission shall provide a qualifying jurisdiction with copies of returns and other
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information relating to a distributed tax, fee, or charge collected within the
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qualifying jurisdiction.
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(iii)(A) To obtain the information described in Subsection (4)(y)(ii), the chief
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executive officer or the chief executive officer's designee of the qualifying
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jurisdiction shall submit a written request to the commission that states the
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specific information sought and how the qualifying jurisdiction intends to use
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the information.
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(B) The information described in Subsection (4)(y)(ii) is available only in official
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matters of the qualifying jurisdiction.
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(iv) Information that a qualifying jurisdiction receives in response to a request under
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this subsection is:
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(A) classified as a private record under Title 63G, Chapter 2, Government Records
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Access and Management Act; and
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(B) subject to the confidentiality requirements of this section.
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(z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic
396
Beverage Services Commission, upon request, with taxpayer status information
397
related to state tax obligations necessary to comply with the requirements described
398
in Section 32B-1-203.
399
(aa) Notwithstanding Subsection (2), the commission shall inform the Department of
400
Workforce Services, as soon as practicable, whether an individual claimed and is
401
entitled to claim a federal earned income tax credit for the year requested by the
402
Department of Workforce Services if:
403
(i) the Department of Workforce Services requests this information; and
- 12 - 03-03 07:13 1st Sub. (Buff) H.B. 528
404
(ii) the commission has received the information release described in Section
405
35A-9-604.
406
(bb)(i) As used in this Subsection (4)(bb), "unclaimed property administrator" means
407
the administrator or the administrator's agent, as those terms are defined in Section
408
67-4a-102.
409
(ii)(A) Notwithstanding Subsection (2), upon request from the unclaimed property
410
administrator and to the extent allowed under federal law, the commission shall
411
provide the unclaimed property administrator the name, address, telephone
412
number, county of residence, and social security number or federal employer
413
identification number on any return filed under Chapter 7, Corporate Franchise
414
and Income Taxes, or Chapter 10, Individual Income Tax Act.
415
(B) The unclaimed property administrator may use the information described in
416
Subsection (4)(bb)(ii)(A) only for the purpose of returning unclaimed property
417
to the property's owner in accordance with Title 67, Chapter 4a, Revised
418
Uniform Unclaimed Property Act.
419
(iii) The unclaimed property administrator is subject to the confidentiality provisions
420
of this section with respect to any information the unclaimed property
421
administrator receives under this Subsection (4)(bb).
422
(cc) Notwithstanding Subsection (2), the commission may, upon request, disclose a
423
taxpayer's state individual income tax information to a program manager of the Utah
424
Fits All Scholarship Program under Section 53F-6-402 if:
425
(i) the taxpayer consents in writing to the disclosure;
426
(ii) the taxpayer's written consent includes the taxpayer's name, social security
427
number, and any other information the commission requests that is necessary to
428
verify the identity of the taxpayer; and
429
(iii) the program manager provides the taxpayer's written consent to the commission.
430
(dd) Notwithstanding Subsection (2), the commission may provide to the Division of
431
Finance within the Department of Government Operations any information necessary
432
to facilitate a payment from the commission to a taxpayer, including:
433
(i) the name of the taxpayer entitled to the payment or any other person legally
434
authorized to receive the payment;
435
(ii) the taxpayer identification number of the taxpayer entitled to the payment;
436
(iii) the payment identification number and amount of the payment;
437
(iv) the tax year to which the payment applies and date on which the payment is due;
- 13 - 1st Sub. (Buff) H.B. 528 03-03 07:13
438
(v) a mailing address to which the payment may be directed; and
439
(vi) information regarding an account at a depository institution to which the
440
payment may be directed, including the name of the depository institution, the
441
type of account, the account number, and the routing number for the account.
442
(ee) Notwithstanding Subsection (2), the commission shall provide the total amount of
443
revenues collected by the commission under Subsection [59-5-202(5)] 59-5-202(7):
444
(i) at the request of a committee of the Legislature, the Office of the Legislative
445
Fiscal Analyst, or the Governor's Office of Planning and Budget, to the committee
446
or office for the time period specified by the committee or office; and
447
(ii) to the Division of Finance for purposes of the Division of Finance administering
448
Subsection [59-5-202(5)] 59-5-202(7).
449
(ff) Notwithstanding Subsection (2), the commission may provide the Department of
450
Agriculture and Food with information from a return filed in accordance with
451
Chapter 31, Cannabinoid Licensing and Tax Act.
452
(5)(a) Each report and return shall be preserved for at least three years.
453
(b) After the three-year period provided in Subsection (5)(a) the commission may
454
destroy a report or return.
455
(6)(a) Any individual who violates this section is guilty of a class A misdemeanor.
456
(b) If the individual described in Subsection (6)(a) is an officer or employee of the state,
457
the individual shall be dismissed from office and be disqualified from holding public
458
office in this state for a period of five years thereafter.
459
(c) Notwithstanding Subsection (6)(a) or (b), GOEO, when requesting information in
460
accordance with Subsection (4)(n)(iii), or an individual who requests information in
461
accordance with Subsection (4)(n)(v):
462
(i) is not guilty of a class A misdemeanor; and
463
(ii) is not subject to:
464
(A) dismissal from office in accordance with Subsection (6)(b); or
465
(B) disqualification from holding public office in accordance with Subsection
466
(6)(b).
467
(d) Notwithstanding Subsection (6)(a) or (b), for a disclosure of information to the
468
Office of the Legislative Auditor General in accordance with Title 36, Chapter 12,
469
Legislative Organization, an individual described in Subsection (2):
470
(i) is not guilty of a class A misdemeanor; and
471
(ii) is not subject to:
- 14 - 03-03 07:13 1st Sub. (Buff) H.B. 528
472
(A) dismissal from office in accordance with Subsection (6)(b); or
473
(B) disqualification from holding public office in accordance with Subsection
474
(6)(b).
475
(7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
476
Section 4. Section 59-5-202 is amended to read:
477
59-5-202 . Severance tax -- Rate -- Computation -- Annual exemption.
478
(1) A person engaged in the business of mining or extracting metalliferous minerals in this
479
state shall pay to the state a severance tax equal to [2.6% of ]the taxable value of all
480
metals or metalliferous minerals sold or otherwise disposed of[.] , multiplied by:
481
(a) 2.6%; or
482
(b) 2.47%, if:
483
(i) the person pays the severance tax in gold as provided in this section; and
484
(ii)(A) for a person who owns or operates a mine on January 1, 2027, the
485
severance tax is for a taxable year that begins on or after January 1, 2027, and
486
before January 1, 2032; or
487
(B) for a person who does not own or operate a mine as of January 1, 2027, the
488
severance tax is for a taxable year that begins on or after January 1, 2027, and
489
before January 1, 2042.
490
(2) If the metals or metalliferous minerals are shipped outside the state, this constitutes a
491
sale, and the finished metals or the recoverable units of finished metals from the
492
metalliferous minerals shipped are subject to the severance tax. If the metals or
493
metalliferous minerals are stockpiled, the tax is not applicable until they are sold or
494
shipped out of state. For purposes of the tax imposed by this chapter, uranium
495
concentrates shall be considered to be finished metals. The owner of the metals or
496
metalliferous minerals that are stockpiled shall report to the commission annually, in a
497
form acceptable to the commission, the amount of metalliferous minerals so stockpiled.
498
Metals or metalliferous minerals that are stockpiled for more than two years, however,
499
are subject to the severance tax.
500
(3) An annual exemption from the payment of the tax imposed by this chapter upon the first
501
$50,000 in gross value of the metalliferous mineral is allowed to each mine.
502
(4) These taxes are in addition to all other taxes provided by law and are delinquent, unless
503
otherwise deferred, on June 1 next succeeding the calendar year when the metalliferous
504
mineral is produced and sold or delivered.
505
(5)(a) A person may pay the severance tax imposed under this section by remitting to the
- 15 - 1st Sub. (Buff) H.B. 528 03-03 07:13
506
state treasurer an amount of gold equivalent in value to the taxes owed.
507
(b) The state treasurer shall calculate the value of gold remitted under this Subsection (5)
508
as of the day immediately preceding the day on which the person remits the gold and
509
based on an internationally recognized benchmark gold price, as determined by the
510
state treasurer.
511
(c) The state treasurer may not accept gold, unless the gold satisfies internationally
512
recognized investment grade purity standards, as determined by the state treasurer.
513
(6) When the state treasurer receives gold under Subsection (5), the state treasurer shall
514
notify:
515
(a) the commission of the payment, including any information the commission requests;
516
and
517
(b) the Division of Finance of the value of the gold received.
518
[(5)] (7)(a) As used in this Subsection [(5)] (7):
519
(i) "Great Salt Lake element or mineral" means a metalliferous mineral, metal, ore,
520
chloride compound, potash, or salt mined or extracted from the brines of the Great
521
Salt Lake.
522
(ii) "Great Salt Lake elevation" means the same as that term is defined in Section
523
65A-17-101.
524
(iii) "Great Salt Lake extraction operator" means a person whois engaged in the
525
business of mining or extracting Great Salt Lake elements or minerals or
526
metalliferous compounds from the brine of the Great Salt Lake.
527
(iv) For purposes of each tax imposed under Subsection [(5)(b)] (7)(b), "incremental
528
revenue" means the difference between the sum of the revenue collected for the
529
fiscal year from each of the tax rates imposed under Subsection [(5)(b)] (7)(b) and
530
the revenue collected for the fiscal year from the tax rate imposed under
531
Subsection (1).
532
(v) "Metalliferous compound" means a metalliferous mineral or a chloride compound
533
or salt containing a metalliferous mineral.
534
(b) Notwithstanding the exclusion for chloride compounds or salts from the definition of
535
metalliferous minerals under Section 59-5-201and in lieu of the severance tax
536
imposed under Subsection (1), beginning with calendar year 2025, a Great Salt Lake
537
extraction operator shall pay to the state a severance tax in accordance with the
538
following:
539
(i) for a Great Salt Lake extraction operator that is not a party or a third-party
- 16 - 03-03 07:13 1st Sub. (Buff) H.B. 528
540
beneficiary to a voluntary agreement for water rights with an approved beneficial
541
use by a division as defined in Section 73-3-30, a severance tax equal to 7.8% of
542
the taxable value of Great Salt Lake elements or minerals or metalliferous
543
compounds sold or otherwise disposed of;
544
(ii) for a Great Salt Lake extraction operator that is not a party or a third-party
545
beneficiary to a voluntary agreement for water rights with an approved beneficial
546
use by a division as defined in Section 73-3-30, but does not use evaporative
547
concentrations of Great Salt Lake brines in any stage of the extractive process, a
548
severance tax equal to 2.6% of the taxable value of Great Salt Lake elements or
549
minerals or metalliferous compounds sold or otherwise disposed of; or
550
(iii) for a Great Salt Lake extraction operator that is a party or a third-party
551
beneficiary to a voluntary agreement for water rights with an approved beneficial
552
use by a division as defined in Section 73-3-30:
553
(A) a severance tax equal to 2.6% of the taxable value of Great Salt Lake elements
554
or minerals sold or otherwise disposed of, if the Great Salt Lake elements or
555
minerals are extracted during a calendar year when the Great Salt Lake
556
elevation recorded pursuant to Section 65A-17-306 was at or above 4,198 feet
557
in the prior calendar year; or
558
(B) a severance tax does not apply to the taxable value of Great Salt Lake
559
elements or minerals sold or otherwise disposed of, if those Great Salt Lake
560
elements or minerals are sold or otherwise disposed of in a calendar year when
561
the Great Salt Lake elevation recorded pursuant to Section 65A-17-306 was
562
below 4,198 feet in the prior calendar year; and
563
(iv) notwithstanding Subsection [(5)(b)(iii)] (7)(b)(iii), for a Great Salt Lake
564
extraction operator that is a party or third-party beneficiary to a voluntary
565
agreement for water rights with an approved beneficial use by a division as
566
defined in Section 73-3-30, a severance tax equal to 2.6% of the taxable value of a
567
metalliferous compound sold or otherwise disposed of under a royalty agreement
568
issued under Subsection 65A-6-4(2)(d), entered into on or after May 1, 2024.
569
(c)(i) Subject to Subsection [(5)(c)(ii)] (7)(c)(ii), the Division of Finance shall deposit
570
the incremental revenue in accordance with Section 51-9-305.
571
(ii) The Division of Finance shall consider the incremental revenue required to be
572
deposited under Subsection [(5)(c)(i)] (7)(c)(i) to be the first revenue collected
573
under this chapter for the fiscal year.
- 17 - 1st Sub. (Buff) H.B. 528 03-03 07:13
574
(iii) The Division of Finance shall deposit the incremental revenue that remains after
575
making the deposit required by Subsection [(5)(c)(i)] (7)(c)(i) into the Sovereign
576
Lands Management Account created in Section 65A-5-1.
577
(d) This Subsection [(5)] (7) may not be interpreted to:
578
(i) excuse a person from paying a severance tax in accordance with the other
579
provisions of this part; or
580
(ii) void a mineral lease or royalty agreement.
581
(e) A person extracting metalliferous minerals, including a metalliferous compound,
582
from the brine of the Great Salt Lake is subject to the payment of a royalty agreement
583
under Section 65A-6-4 and the payment of a severance tax under this part.
584
Section 5. Section 59-5-203 is amended to read:
585
59-5-203 . Determining taxable value.
586
(1) Except as provided in Subsection (3), the basis for computing the gross proceeds, prior
587
to those deductions or adjustments specified in this chapter, in determining the taxable
588
value of the metals, metalliferous minerals, or metalliferous compounds, as defined in
589
Subsection [59-5-202(5)] 59-5-202(7), sold or otherwise disposed of, in the order of
590
priority, is as follows:
591
(a) If the metals, metalliferous mineral products, or metalliferous compounds are
592
actually sold, the value of those metals, metalliferous mineral products, or
593
metalliferous compounds shall be the gross amount the producer receives from that
594
sale, provided that the metals, metalliferous mineral products, or metalliferous
595
compounds are sold under a bona fide contract of sale between unaffiliated parties.
596
In the case of a sale of uranium concentrates, gross proceeds shall be the gross
597
amount the producer receives from the sale of processed uranium concentrate or
598
"yellowcake," provided that the uranium concentrate is sold under a bona fide
599
contract of sale between unaffiliated parties.
600
(b)(i) For purposes of a Great Salt Lake extraction operator, as defined in Section
601
59-5-202, if metals, metalliferous minerals, or metalliferous compounds are not
602
sold, but are otherwise disposed of, the gross proceeds shall be the multiple of the
603
recoverable units of finished or unfinished metals, or of the finished or unfinished
604
metals contained in the metalliferous minerals or metalliferous compounds
605
shipped, and the average daily price per unit of contained metals as quoted by an
606
established authority for market prices of metals for the period during which the
607
tax imposed by this chapter is due.
- 18 - 03-03 07:13 1st Sub. (Buff) H.B. 528
608
(ii) The established authority or authorities under this Subsection (1)(b) shall be
609
designated by the commission by rule adopted in accordance with Title 63G,
610
Chapter 3, Utah Administrative Rulemaking Act.
611
(c)(i) If the metals, metalliferous mineral products, or metalliferous compounds are
612
not actually sold but are shipped, transported, or delivered out of state, the gross
613
proceeds shall be the multiple of the recoverable units of finished metals, or of the
614
finished metals contained in the metalliferous minerals or metalliferous
615
compounds shipped, and the average daily price per unit of contained metals as
616
quoted by an established authority for market prices of metals for the period
617
during which the tax imposed by this chapter is due.
618
(ii) The established authority or authorities shall be designated by the commission by
619
rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative
620
Rulemaking Act.
621
(d) In the case of metals, metalliferous minerals, or metalliferous compounds not sold,
622
but otherwise disposed of, for which there is no established authority for market
623
prices of metals for the period during which the tax imposed by this chapter is due,
624
gross proceeds is determined by allocating to the state the same proportion of the
625
producer's total sales of metals, metalliferous minerals, or metalliferous compounds
626
sold or otherwise disposed of as the producer's total Utah costs bear to the total costs
627
associated with sale or disposal of the metal or metalliferous mineral.
628
(e) In the event of a sale of metals, metalliferous minerals, or metalliferous compounds
629
between affiliated companies which is not a bona fide sale because the value received
630
is not proportionate to the fair market value of the metals, metalliferous minerals,
631
metalliferous compounds or in the event that Subsection (1)(a), (b), (c), or (d) are not
632
applicable, the commission shall determine the value of such metals, metalliferous
633
minerals, or metalliferous compounds in an equitable manner by reference to an
634
objective standard as specified in a rule adopted in accordance with the provisions of
635
Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
636
(2) For all metals except beryllium, the taxable value of the metalliferous mineral sold or
637
otherwise disposed of is 30% of the gross proceeds received for the metals sold or
638
otherwise disposed of by the producer of the metal.
639
(3) Notwithstanding Subsection (1) or (4), the taxable value of beryllium sold or otherwise
640
disposed of by the producer of the beryllium is equal to 125% of the direct mining costs
641
incurred in mining the beryllium.
- 19 - 1st Sub. (Buff) H.B. 528 03-03 07:13
642
(4) Except as provided in Subsection (3), if the metalliferous mineral sold or otherwise
643
disposed of is sold or shipped out of state in the form of ore, then the taxable value is
644
80% of the gross proceeds.
645
Section 6. Section 59-5-207 is amended to read:
646
59-5-207 . Date tax due -- Extensions -- Installment payments -- Penalty on
647
delinquencies -- Audit.
648
(1) The tax imposed by this chapter is due and payable on or before June 1 of the year next
649
succeeding the calendar year when the mineral is produced and sold or delivered.
650
(2) The commission may, for good cause shown upon a written application by the taxpayer,
651
extend the time of payment of the whole or any part of the tax for a period not to exceed
652
six months. If an extension is granted, interest at the rate and in the manner prescribed
653
in Section 59-1-402 shall be charged and added to the amount of the deferred payment
654
of the tax.
655
(3) Every taxpayer subject to this chapter whose total tax obligation for the preceding
656
calendar year was $3,000 or more shall pay the taxes assessed under this chapter in
657
quarterly installments. Each installment shall be based on the estimated gross value
658
received by the taxpayer during the quarter preceding the date on which the installment
659
is due.
660
(4) The quarterly installments are due as follows:
661
(a) for January 1 through March 31, on or before June 1;
662
(b) for April 1 through June 30, on or before September 1;
663
(c) for July 1 through September 30, on or before December 1; and
664
(d) for October 1 through December 31, on or before March 1 of the next year.
665
(5)(a) If the taxpayer fails to report and pay any tax when due, the taxpayer is subject to
666
the penalties provided under Section 59-1-401, unless otherwise provided in
667
Subsection (6).
668
(b) An underpayment exists if less than 80% of the tax due for a quarter is paid.
669
(6) The penalty for failure to pay the tax due or underpayment of tax may not be assessed if
670
the taxpayer's quarterly tax installment payment equals 25% of the tax reported and paid
671
by the taxpayer for the preceding taxable year.
672
(7) There shall be no interest added to any estimated tax payments subject to a penalty
673
under this section.
674
(8) The commission may conduct audits to determine whether any tax is owed under this
675
section.
- 20 - 03-03 07:13 1st Sub. (Buff) H.B. 528
676
(9) For purposes of a Great Salt Lake extraction operator under Subsection [59-5-202(5)]
677
59-5-202(7), the Division of Forestry, Fire, and State Lands shall provide the
678
commission by January 15 of each year the information required by Section 65A-17-306,
679
that the commission shall use to determine the amount due and payable on June 1 of the
680
year next succeeding the calendar year.
681
Section 7. Section 59-5-215 is amended to read:
682
59-5-215 . Disposition of taxes collected -- Credit to General Fund.
683
(1) Except as provided in Section 51-9-305, 51-9-306, or 51-9-307, or Subsection
684
59-5-202(5) or (7), a tax imposed and collected under Section 59-5-202 shall be paid to
685
the commission, promptly remitted to the state treasurer, and credited to the General
686
Fund.
687
(2) Upon receipt of a notice described in Subsection 59-5-202(6)(b), the Division of
688
Finance shall:
689
(a) credit from the General Fund Budget Reserve Account created in Section 63J-1-312
690
an amount equal to the value of the gold to severance tax revenue collected under this
691
part; and
692
(b) distribute the credited money in the same manner as severance tax revenue collected
693
under this part.
694
Section 8. Section 59-7-504 is amended to read:
695
59-7-504 . Estimated tax payments -- Penalty -- Waiver.
696
(1) Except as provided in Subsection (2), a corporation subject to taxation under this
697
chapter that has a tax liability of $3,000 or more in either the current tax year or the
698
previous tax year shall make a payment of an estimated tax on or before the day on
699
which the corporation is required to make a payment of an estimated tax for the same
700
time period to the federal government.
701
(2) The provisions of Section 6655, Internal Revenue Code, shall govern the payment
702
described in Subsection (1), except that:
703
(a) for the first year a corporation is required to file a return in Utah, that corporation is
704
not subject to Subsection (1) if the corporation makes a payment on or before the due
705
date of the return, without extensions, equal to or greater than the minimum tax
706
required under Section 59-7-104 or 59-7-201;
707
(b) the applicable percentage of the required annual payment, as defined in Section
708
6655, Internal Revenue Code, for annualized income installments, adjusted seasonal
709
installments, and those estimated tax payments based on the current year tax liability
- 21 - 1st Sub. (Buff) H.B. 528 03-03 07:13
710
shall be:
711 Installment Percentage712
1st 22.5
713
2nd 45.0
714
3rd 67.5
715
4th 90.0
716
(c) a large corporation shall be treated as any other corporation for purposes of this
717
section;
718
(d) if a taxpayer elects a different annualization period than the one used for federal
719
purposes, the taxpayer shall make an election with the commission at the same time
720
as provided under Section 6655, Internal Revenue Code; and
721
(e) the due date shall be superseded by the due date for federal estimated payments if
722
modified by other federal action.
723
(3) A penalty shall be added as provided in Section 59-1-401 for any quarterly estimated
724
tax payment that is not made in accordance with this section.
725
(4) There shall be no interest added to any estimated tax payments subject to a penalty
726
under this section.
727
(5)(a)(i) A corporation may pay taxes due under this chapter by remitting to the state
728
treasurer an amount of gold equivalent in value to the tax due.
729
(ii) The state treasurer shall calculate the value of gold remitted under this Subsection
730
(5) as of the day immediately preceding the day on which the person remits the
731
gold and based on an internationally recognized benchmark gold price, as
732
determined by the state treasurer.
733
(iii) The state treasurer may not accept gold, unless the gold satisfies internationally
734
recognized investment grade purity standards, as determined by the state treasurer.
735
(b) When the state treasurer receives gold under this Subsection (5), the state treasurer
736
shall notify:
737
(i) the commission of the payment, including any information the commission
738
requests; and
739
(ii) the Division of Finance of the value of the gold received.
740
Section 9. Section 59-7-532 is amended to read:
741
59-7-532 . Revenue received by commission -- Deposit with state treasurer --
742
Distribution or crediting to Income Tax Fund -- Refund claim payments.
- 22 - 03-03 07:13 1st Sub. (Buff) H.B. 528
743
(1)(a) The commission shall deposit at least quarterly all revenue collected or received
744
by the commission under this chapter with the state treasurer.
745
(b) The commission shall, subject to the refund provisions of this section, distribute or
746
credit, at least quarterly and based on a pro rata share of Income Tax Fund and
747
Uniform School Fund appropriations for the current fiscal year, the revenue
748
described in Subsection (1)(a) to:
749
(i) the Income Tax Fund; and
750
(ii) the Uniform School Fund in accordance with Section 53F-9-201.1.
751
(c) The commission may credit to or draw from the Income Tax Fund and the Uniform
752
School Fund:
753
(i) annually to adjust for differences between estimates and actual amounts; or
754
(ii) in the proportion described in Subsection (1)(b) to issue a refund.
755
(2) The commission shall from time to time certify to the state auditor the amount of any
756
refund authorized by it, the amount of interest computed on it under the provisions of
757
Section 59-7-533, from whom the tax to be refunded was collected, or by whom it was
758
paid, and such refund claims shall be paid in order out of the funds first accruing to the
759
Income Tax Fund from the provisions of this section.
760
(3) Upon receipt of a notice described in Subsection 59-7-504(5)(c), the Division of
761
Finance shall credit from the Income Tax Fund Budget Reserve Account created in
762
Section 63J-1-313 an amount equal to the value of the gold and deposit the money as
763
provided in this section, as though the money were revenue collected or received by the
764
commission under this chapter.
765
Section 10. Section 59-7-536 is amended to read:
766
59-7-536 . Relief in case of suspension or forfeiture.
767
(1)(a) Any corporation which has suffered the suspension or forfeiture referred to in
768
Section 59-7-534 may be relieved from that suspension or forfeiture by applying for
769
that relief in writing, paying the tax and the interest and penalties for nonpayment of
770
which the suspension or forfeiture occurred, and paying a reinstatement fee of $100.
771
If the corporation has done business in this state during the period of such
772
suspension, a tax shall be computed according to this chapter for each year in which
773
the business was done, and the tax shall be added to the delinquency and penalties
774
provided in this section. If the due date of any return required in this section has not
775
passed, a return need not be filed until that due date.
776
(b) Application for revivor may be made by any stockholder or creditor of the
- 23 - 1st Sub. (Buff) H.B. 528 03-03 07:13
777
corporation or by a majority of the surviving trustees or directors, and the same shall
778
be filed with the Division of Corporations and Commercial Code. Upon payment[ to
779
the commission] of the taxes, penalties, and reinstatement fee provided for in this
780
section, the Division of Corporations and Commercial Code shall issue a certificate
781
of revivor, and the applicant shall be revived. The revivor shall be without prejudice
782
to any action, defense, or right which has accrued by reason of the original
783
suspension or forfeiture. The certificate of revivor is prima facie evidence of the
784
revivor.
785
(2) If any corporation has adopted, subsequent to such suspension or forfeiture, any name
786
so closely resembling the name of the reviving corporation as will tend to deceive, then
787
the reviving corporation is entitled to a certificate of revivor pursuant to the terms of this
788
section only upon adopting a new name, and in such case nothing in this section may be
789
construed as permitting the reviving corporation to carry on any business under its
790
former name. The reviving corporation may use its former name or may take the new
791
name only upon filing an application for it with the Division of Corporations and
792
Commercial Code, and upon the issuing of a certificate to such corporation by the
793
Division of Corporations and Commercial Code, setting forth the right of such
794
corporation to take such new name or use its former name as the case may be. The
795
Division of Corporations and Commercial Code may not issue any certificate permitting
796
any corporation to take or use the name of any corporation already organized in this
797
state and which has not suffered a forfeiture, or take or use a name so closely resembling
798
the name of any corporation already organized in this state as will tend to deceive.
799
Section 11. Section 59-7-627 is enacted to read:
800
59-7-627 . Nonrefundable tax credit for payment in gold.
801
(1) As used in this section, "qualified taxpayer" means a taxpayer that:
802
(a) owns or operates a mine as defined in Section 59-5-201; and
803
(b) pays in gold the taxes owed under this chapter for the taxable year, as allowed under
804
Section 59-7-504.
805
(2) Subject to Subsection (3), a qualified taxpayer may claim a nonrefundable tax credit
806
equal to 5% of the qualified taxpayer's liability under this chapter for the taxable year,
807
excluding any credit available under this section.
808
(3)(a) If the qualified taxpayer owns or operates a mine on January 1, 2027, the qualified
809
taxpayer may claim a tax credit under this section for a taxable year that begins on or
810
after January 1, 2027, and before January 1, 2032.
- 24 - 03-03 07:13 1st Sub. (Buff) H.B. 528
811
(b) If the qualified taxpayer does not own or operate a mine on January 1, 2027, the
812
qualified taxpayer may claim a tax credit under this section for a taxable year that
813
begins on or after January 1, 2027, and before January 1, 2042.
814
Section 12. Section 59-10-514 is amended to read:
815
59-10-514 . Return filing requirements -- Rulemaking authority.
816
(1)(a) Subject to Subsection (3) and Section 59-10-518:
817
(i) an individual income tax return filed for a tax imposed in accordance with Part 1,
818
Determination and Reporting of Tax Liability and Information, shall be filed with
819
the commission on or before the day on which a federal individual income tax
820
return is due;
821
(ii) a fiduciary income tax return filed for a tax imposed in accordance with Part 2,
822
Trusts and Estates, shall be filed with the commission on or before the day on
823
which a federal return for estates and trusts is due; or
824
(iii) a return filed in accordance with Section 59-10-507 shall be filed with the
825
commission on or before the later of:
826
(A) the 15th day of the fourth month following the last day of the taxpayer's
827
taxable year; or
828
(B) the day on which the taxpayer is required to file a federal income tax return.
829
(b) Interest accrues from the day on which a return is due under this Subsection (1).
830
(2) A person required to make and file a return under this chapter shall, without assessment,
831
notice, or demand, pay any tax due[:] as provided in Section 59-10-520.
832
[(a) to the commission; and]
833
[(b) before the due date for filing the return, without regard to any extension of time for
834
filing the return.]
835
(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
836
commission may make rules prescribing what constitutes filing a return with the
837
commission.
838
Section 13. Section 59-10-520 is amended to read:
839
59-10-520 . Time and place for paying tax shown on returns.
840
(1) [When] Subject to Subsection (3), when a return of tax is required under this chapter or
841
rules, the person required to make such return shall, without assessment or notice and
842
demand from the commission, pay such tax to the commission office with which the
843
return is filed, and shall pay such tax at the time and place fixed for filing the return
844
(determined without regard to any extension of time).
- 25 - 1st Sub. (Buff) H.B. 528 03-03 07:13
845
(2) In any case where a tax is required to be paid on or before a certain date, or within a
846
certain period, any reference in this chapter to the date fixed for payment of such tax
847
shall be deemed a reference to the last day fixed for such payment (determined without
848
regard to any extension of time for paying the tax).
849
(3)(a)(i) A person may pay the tax due by remitting to the state treasurer an amount
850
of gold equivalent in value to the tax due.
851
(ii) The state treasurer shall calculate the value of gold remitted under this Subsection
852
(3) as of the day immediately preceding the day on which the person remits the
853
gold and based on an internationally recognized benchmark gold price, as
854
determined by the state treasurer.
855
(iii) The state treasurer may not accept gold, unless the gold satisfies internationally
856
recognized investment grade purity standards, as determined by the state treasurer.
857
(b) When the state treasurer receives gold under this Subsection (3), the state treasurer
858
shall notify:
859
(i) the commission of the payment, including any information the commission
860
requests; and
861
(ii) the Division of Finance of the value of the gold received.
862
Section 14. Section 59-10-544 is amended to read:
863
59-10-544 . General powers and duties of the commission -- Deposit, distribution,
864
or credit of revenues -- Refund reverts to state under certain circumstances.
865
(1)(a) The commission shall administer and enforce a tax imposed under this chapter for
866
which purpose it may divide the state into districts in each of which a branch office
867
of the commission may be maintained.
868
(b) A county may not be divided in forming a district.
869
(2)(a) The commission shall deposit at least quarterly all revenue collected or received
870
by the commission under this chapter with the state treasurer.
871
(b) Subject to Sections 59-10-529 and 59-10-531, the commission shall distribute and
872
credit, at least quarterly and based on a pro rata share of Income Tax Fund and
873
Uniform School Fund appropriations for the current fiscal year, the revenue
874
described in Subsection (2)(a) to:
875
(i) the Income Tax Fund; and
876
(ii) the Uniform School Fund in accordance with Section 53F-9-201.1.
877
(c) The commission may credit to or draw from the Income Tax Fund and the Uniform
878
School Fund:
- 26 - 03-03 07:13 1st Sub. (Buff) H.B. 528
879
(i) annually to adjust for differences between estimates and actual amounts; or
880
(ii) in the proportion described in Subsection (2)(b) to issue a refund.
881
(d) If a refund the commission makes is not claimed within two years from the date the
882
commission issues the refund:
883
(i) the refund reverts to the state to be credited to the Income Tax Fund; and
884
(ii) no further claim may be made on the commission for the amount of the refund.
885
(3) Upon receipt of a notice described in Subsection 59-10-520(3)(c), the Division of
886
Finance shall credit from the Income Tax Fund Budget Reserve Account created in
887
Section 63J-1-313 an amount equal to the value of the gold and deposit the money as
888
provided in Subsection (2), as though the money were revenue collected or received by
889
the commission under this chapter.
890
Section 15. Section 59-10-1048 is enacted to read:
891
59-10-1048 . Nonrefundable tax credit for payment in gold.
892
(1) As used in this section, "qualified claimant" means a claimant who:
893
(a) owns or operates a mine as defined in Section 59-5-201; and
894
(b) pays in gold the taxes owed under this chapter for the taxable year, as allowed under
895
Section 59-7-504.
896
(2) Subject to Subsection (3), a qualified claimant may claim a nonrefundable tax credit
897
equal to 5% of the qualified claimant's liability under this chapter for the taxable year,
898
excluding any credit available under this section.
899
(3)(a) If the qualified claimant owns or operates a mine on January 1, 2027, the qualified
900
claimant may claim a tax credit under this section for a taxable year that begins on or
901
after January 1, 2027, and before January 1, 2032.
902
(b) If the qualified claimant does not own or operate a mine on January 1, 2027, the
903
qualified claimant may claim a tax credit under this section for a taxable year that
904
begins on or after January 1, 2027, and before January 1, 2042.
905
Section 16. Section 65A-6-4 is amended to read:
906
65A-6-4 . Mineral leases -- Multiple leases on same land -- Rentals and royalties
907
-- Lease terms -- Great Salt Lake.
908
(1) As used in this section:
909
(a) "Great Salt Lake element or mineral" means:
910
(i) a rare earth element;
911
(ii) a trace element or mineral; or
912
(iii) a chemical compound that includes a rare earth element or trace element or
- 27 - 1st Sub. (Buff) H.B. 528 03-03 07:13
913
mineral.
914
(b) "Operator" means, for purposes of provisions applicable to the extraction of a Great
915
Salt Lake element or mineral, a person qualified to do business in the state who is
916
pursuing the extraction of a Great Salt Lake element or mineral.
917
(c) "Rare earth element" is one of the following ores, minerals, or elements located in
918
the brines or the sovereign lands of the Great Salt Lake:
919
(i) lanthanum;
920
(ii) cerium;
921
(iii) praseodymium;
922
(iv) neodymium;
923
(v) samarium;
924
(vi) europium;
925
(vii) gadolinium;
926
(viii) terbium;
927
(ix) dysprosium;
928
(x) holmium;
929
(xi) erbium;
930
(xii) thulium;
931
(xiii) ytterbium;
932
(xiv) lutetium; and
933
(xv) yttrium.
934
(d) "Trace element or mineral" means an element or mineral that is located in the brines
935
or the sovereign lands of the Great Salt Lake that is not in production by July 1, 2020,
936
and for which the state has not received a royalty payment by July 1, 2020.
937
(2)(a) Mineral leases, including oil, gas, and hydrocarbon leases, may be issued for
938
prospecting, exploring, developing, and producing minerals covering any portion of
939
state lands or the reserved mineral interests of the state.
940
(b)(i) Leases may be issued for different types of minerals on the same land.
941
(ii) If leases are issued for different types of minerals on the same land, the leases
942
shall include stipulations for simultaneous operations, except that for leases
943
related to the Great Salt Lake the leases shall include stipulations for simultaneous
944
operations that will not interfere with, impede, limit, or require changes to
945
pre-existing rights.
946
(c) No more than one lease may be issued for the same resource on the same land.
- 28 - 03-03 07:13 1st Sub. (Buff) H.B. 528
947
(d) The division shall require a separate royalty agreement for extraction of Great Salt
948
Lake elements or minerals from brines of the Great Salt Lake when:
949
(i) a mineral lease, a royalty agreement, or both that are in effect before the operator
950
seeks to extract a particular Great Salt Lake element or mineral do not expressly
951
include the right to extract the particular Great Salt Lake element or mineral; or
952
(ii) the proposed operation will use brines from the Great Salt Lake, but will not
953
occupy sovereign lands for the direct production of Great Salt Lake elements or
954
minerals other than for incidental structures such as pumps and intake and outflow
955
pipelines.
956
(3)(a) Each mineral lease issued by the division shall provide for an annual rental of not
957
less than $1 per acre per year, except that a mineral lease issued by the division
958
involving the extraction of a Great Salt Lake element or mineral from brines in the
959
Great Salt Lake shall provide for an annual rental of not less than $100 per acre per
960
year.
961
(b) However, a lease may provide for a rental credit, minimum rental, or minimum
962
royalty upon commencement of production, as prescribed by rule.
963
(4) The primary term of a mineral lease may not exceed:
964
(a) 20 years for oil shale and tar sands; and
965
(b) 10 years for oil and gas and any other mineral.
966
(5)(a) In addition to the requirements of Chapter 17, Part 3, Mineral or Element
967
Extraction, and subject to the other provisions of this Subsection (5), for a mineral
968
lease or royalty agreement involving the extraction of Great Salt Lake elements and
969
minerals from brines in the Great Salt Lake, the division shall ensure that the
970
following terms, as applicable, are included:
971
(i) an extraction operation or extraction method shall adhere to commercially viable
972
technologies that minimize water depletion;
973
(ii) a provision authorizing the division to curtail or limit Great Salt Lake element or
974
mineral production at any time the condition of the Great Salt Lake reaches the
975
emergency trigger, as defined in Section 65A-17-101;
976
(iii) a provision authorizing the division to withdraw lands, operations, extraction
977
methods, or technologies from Great Salt Lake element or mineral production or
978
Great Salt Lake element or mineral operations;
979
(iv) a provision allowing the division to require an existing operator to use
980
commercially viable, innovative technologies to minimize water depletions caused
- 29 - 1st Sub. (Buff) H.B. 528 03-03 07:13
981
by the planned mineral extraction as a condition of continued operations if the
982
technology:
983
(A) has been successfully implemented on a commercial scale in similar
984
circumstances;
985
(B) has been shown to be economically viable; and
986
(C) is reasonably compatible with the operator's overall extraction process; and
987
(v) a provision that provides for the reductions of the following after the primary
988
term of a mineral lease or royalty agreement:
989
(A) the acreage subject to the mineral lease by the acreage the operator does not
990
use to extract a Great Salt Lake element or mineral during the primary term of
991
the mineral lease under conditions that do not constitute waste, as defined in
992
Section 65A-17-101; and
993
(B) the volume of water that the operator may divert from the Great Salt Lake, by
994
the volume of water that the operator does not use during the longer of the
995
primary term of the mineral lease or seven years if the operator fails to use the
996
volume of water for a beneficial use, except if the failure to use the volume of
997
water is as a result of a reduction of water usage under Section 73-33-201 or is
998
excused under Section 73-1-4.
999
(b) If under Subsection (5)(a)(iv) the division requires an existing operator to use a
1000
commercially viable, innovative technology, the division may not require use of a
1001
technology not yet proven to be commercially viable on the Great Salt Lake and may
1002
not require implementation of the technology to begin until after a reasonable period
1003
determined by the division that is at least five years but does not exceed seven years.
1004
(c)(i) If the volume of water that the operator may divert from the Great Salt Lake is
1005
reduced under Subsection (5)(a)(v), the division shall pursue a judicial action to
1006
declare all or a portion of the water right forfeited under Subsection 73-1-4(2).
1007
(ii) If the division secures the reduction under this Subsection (5)(c), the division
1008
shall petition the state engineer to order a reversal of the application approval in
1009
accordance with the terms of the reduction or forfeiture of the water right.
1010
(iii) Nothing in this Subsection (5) modifies or otherwise affects Section 73-1-4 or
1011
73-3-30.
1012
(6)(a) Before issuing a royalty agreement under Subsection (2)(d), the division may
1013
require an operator to engage in a feasibility assessment and may issue a royalty
1014
agreement without compliance of Subsection (5)(a) if the agreement:
- 30 - 03-03 07:13 1st Sub. (Buff) H.B. 528
1015
(i) has a term of 12 months or less; and
1016
(ii) limits use of brines from the Great Salt Lake to a maximum of five acre-feet
1017
during the term of the agreement.
1018
(b) The division may make rules, in accordance with Title 63G, Chapter 3, Utah
1019
Administrative Rulemaking Act, for implementing this Subsection (6).
1020
(7)(a) Upon nomination from a prospective operator, the division shall by rule, made in
1021
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1022
establish a royalty rate and calculation methodology for a Great Salt Lake element or
1023
mineral that:
1024
(i) provides for a full and fair return to the state from the production of the Great Salt
1025
Lake element or mineral;
1026
(ii) is consistent with market royalty rates applicable to the production of the Great
1027
Salt Lake element or mineral or of the production of oil and gas;
1028
(iii) provides a base royalty rate;
1029
(iv) provides a reduced royalty rate from the royalty rate under Subsection (7)(a)(iii)
1030
if the royalty agreement:
1031
(A) relates to a non-evaporative method of producing the Great Salt Lake element
1032
or mineral; or
1033
(B) provides an incentive to use commercially viable, innovative technology to
1034
minimize water depletion and evaporation as determined by the division;
1035
(v) provides a reduced royalty rate from the royalty rate under Subsection (7)(a)(iii) if
1036
the prospective operator for the extraction of lithium demonstrates to the
1037
satisfaction of the division that the prospective operator has an agreement with a
1038
person who will process or manufacture a product in this state, exclusive of any
1039
primary or secondary lithium processing or manufacturing, using the lithium
1040
extracted by the prospective operator; and
1041
(vi) subject to Subsection (7)(e), provides for a royalty rate that is based on the
1042
highest market value prevailing at the time of the sale or disposal of the following:
1043
(A) the Great Salt Lake element or mineral; or
1044
(B) a product the lessee produces from the Great Salt Lake element or mineral.
1045
(b) Before entering into a royalty agreement permitting the extraction of Great Salt Lake
1046
elements or minerals, the operator shall:
1047
(i) demonstrate the proposed operation's commercial viability;
1048
(ii) certify before operation begins that the operator is not negatively impacting the
- 31 - 1st Sub. (Buff) H.B. 528 03-03 07:13
1049
biota or chemistry of the Great Salt Lake; and
1050
(iii) obtain the approval of the division and the Department of Environmental Quality
1051
that the certification supports a finding that the operation will not negatively
1052
impact the biota or chemistry of the Great Salt Lake.
1053
(c) A new mineral lease for a Great Salt Lake element or mineral in production in the
1054
Great Salt Lake as of May 3, 2023, is subject to new royalty rates due to emergent
1055
technologies.
1056
(d) An operator who as of July 1, 2020, had a mineral lease with the division but not a
1057
royalty agreement and who is subject to a severance tax under Subsection [59-5-202
1058
(5)] 59-5-202(7) shall pay a royalty under this section in addition to the severance tax.
1059
(e) The royalty rate described in Subsection (7)(a)(vi) may not be reassessed during the
1060
primary term of an initial royalty agreement issued under this section, but may be
1061
reassessed upon the conclusion of the primary term.
1062
(8)(a) Except as provided in Subsection (8)(b), an operator who extracts a Great Salt
1063
Lake element or mineral from tailings from the production of Great Salt Lake
1064
elements or minerals from brines in the Great Salt Lake is subject to this section to
1065
the same extent as an operator producing a Great Salt Lake element or mineral from
1066
brines in the Great Salt Lake.
1067
(b) An operator that, as of May 3, 2023, has an agreement to recover a Great Salt Lake
1068
element or mineral from existing tailings, discarded material, end-use products, or
1069
waste products produced from the evaporation and processing of Great Salt Lake
1070
brines is not subject to this section, except as to the payment of royalties set by the
1071
division under Subsection (7)(a). The division shall make rules, in accordance with
1072
Title 63G, Chapter 3, Utah Administrative Rulemaking Act, regarding the issuance
1073
and termination of a royalty agreement for mineral extraction from tailings, discarded
1074
material, end-use products, or waste products produced from the evaporation and
1075
processing of Great Salt Lake brines.
1076
(c) An operator that, as of May 3, 2023, has an underlying agreement to recover a Great
1077
Salt Lake element or mineral shall obtain an additional agreement for any additional
1078
Great Salt Lake element or mineral produced from the tailings, discarded material,
1079
end-use products, or waste products newly produced under the underlying agreement.
1080
The additional agreement is subject to this section.
1081
(9) The division shall annually report to the Natural Resources, Agriculture, and
1082
Environmental Quality Appropriations Subcommittee regarding the amount of money
- 32 - 03-03 07:13 1st Sub. (Buff) H.B. 528
1083
collected under this section from royalties provided for in Subsection (7).
1084
(10)(a) In the issuance of royalty agreements for the extraction of lithium from the Great
1085
Salt Lake, the division shall prioritize applicants that do not use evaporative
1086
concentration of Great Salt Lake brines in any stage of the extractive process.
1087
(b) The division may make rules, in accordance with Title 63G, Chapter 3, Utah
1088
Administrative Rulemaking Act, creating a process for implementing this Subsection
1089
(10).
1090
(11) Except in relationship to mineral leases related to the Great Salt Lake, the division
1091
shall make rules regarding the continuation of a mineral lease after the primary term has
1092
expired, which shall provide that a mineral lease shall continue so long as:
1093
(a) the mineral covered by the lease is being produced in paying quantities from:
1094
(i) the leased premises;
1095
(ii) lands pooled, communitized, or unitized with the leased premises; or
1096
(iii) lands constituting an approved mining or drilling unit with respect to the leased
1097
premises; or
1098
(b)(i) the lessee is engaged in diligent operations, exploration, research, or
1099
development which is reasonably calculated to advance development or
1100
production of the mineral covered by the lease from:
1101
(A) the leased premises;
1102
(B) lands pooled, communitized, or unitized with the leased premises; or
1103
(C) lands constituting an approved mining or drilling unit with respect to the
1104
leased premises; and
1105
(ii) the lessee pays a minimum royalty.
1106
(12) For the purposes of Subsection (11), diligent operations with respect to oil, gas, and
1107
other hydrocarbon leases may include cessation of operations not in excess of 90 days in
1108
duration.
1109
(13)(a) The division shall study and analyze each mineral lease and mineral royalty
1110
agreement issued on the Great Salt Lake and compare and evaluate whether the
1111
mineral leases and royalty agreements are representative of current market
1112
conditions. As part of this study, the division shall:
1113
(i) make the following determinations for mineral leases:
1114
(A) whether the entire surface area described within the mineral lease is being
1115
used; and
1116
(B) whether the annual lease payments are representative of current market
- 33 - 1st Sub. (Buff) H.B. 528 03-03 07:13
1117
conditions; and
1118
(ii) for royalty agreements, perform studies and comparative analyses to determine
1119
whether the state is receiving royalty rates consistent with current market
1120
conditions.
1121
(b) By no later than the 2023 November interim meeting, the division shall report the
1122
division's findings of the study required by this Subsection (13) to the Natural
1123
Resources, Agriculture, and Environment Interim Committee.
1124
(14) The division may make rules, in accordance with Title 63G, Chapter 3, Utah
1125
Administrative Rulemaking Act, for implementing this section.
1126
(15) The provisions in this section related to extraction of a Great Salt Lake element or
1127
mineral under a mineral lease or royalty agreement apply to a mineral lease or royalty
1128
agreement in effect on May 1, 2024, and any mineral lease or royalty agreement entered
1129
into after May 1, 2024.
1130
Section 17. Section 65A-17-306 is amended to read:
1131
65A-17-306 . Certification of eligibility for tax rates.
1132
(1) As used in this section:
1133
(a) "Great Salt Lake element or mineral" means the same as that term is defined in
1134
Subsection [59-5-202(5)] 59-5-202(7).
1135
(b) "Great Salt Lake extraction operator" means the same as that term is defined in
1136
Subsection [59-5-202(5)] 59-5-202(7).
1137
(2)(a) A Great Salt Lake extraction operator shall by no later than December 31 of each
1138
year certify to the division for purposes of determining a severance tax imposed
1139
under Subsection [59-5-202(5)] 59-5-202(7) during the next succeeding calendar year,
1140
the information listed in Subsection (2)(b).
1141
(b) The Great Salt Lake extraction operator shall certify the following for the calendar
1142
year ending on the date the Great Salt Lake extraction operator submits the
1143
certification for purposes of determining a severance tax imposed during the next
1144
succeeding calendar year:
1145
(i) the Great Salt Lake extraction operator's name;
1146
(ii) the Great Salt Lake extraction operator's tax identification number;
1147
(iii) whether at the time a Great Salt Lake element or mineral is extracted, the Great
1148
Salt Lake extraction operator is a party or a third-party beneficiary to a voluntary
1149
agreement for water rights with an approved beneficial use by a division as
1150
defined in Section 73-3-30;
- 34 - 03-03 07:13 1st Sub. (Buff) H.B. 528
1151
(iv) if the Great Salt Lake extraction operator is not a party or third-party beneficiary
1152
to a voluntary agreement for water rights with an approved beneficial use by a
1153
division as defined in Section 73-3-30, whether the Great Salt Lake extraction
1154
operator uses evaporative concentrations of Great Salt Lake brines in any stage of
1155
the Great Salt Lake extraction operator's extractive process;
1156
(v) whether the Great Salt Lake extraction operator extracted a Great Salt Lake
1157
element or mineral when the Great Salt Lake elevation recorded under Subsection
1158
(3) is at or above 4,198 feet, and what the Great Salt Lake element or mineral
1159
extracted was; and
1160
(vi) other information as determined by the division by rule made in accordance with
1161
Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1162
(c) A Great Salt Lake extraction operator shall submit the certification on a form
1163
provided by the division and approved by the State Tax Commission.
1164
(3) The division shall record the Great Salt Lake elevation for purposes of this section and
1165
Subsection [59-5-202(5)] 59-5-202(7) as of June 15 to be applied during the next
1166
succeeding calendar year.
1167
(4) The division shall forward to the State Tax Commission by no later than January 15 of
1168
the year for which the severance tax shall be determined:
1169
(a) the Great Salt Lake elevation level recorded under Subsection (3);
1170
(b) a list of the Great Salt Lake extraction operators who are subject to a severance tax
1171
under Subsection [59-5-202(5)] 59-5-202(7);
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(c) the Great Salt Lake extraction operator's tax identification number for each Great
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Salt Lake extraction operator listed in Subsection (4)(b); and
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(d) for each Great Salt Lake extraction operator subject to a severance tax under
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Subsection [59-5-202(5)] 59-5-202(7):
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(i) each Great Salt Lake element or mineral or metalliferous compound extracted by
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the Great Salt Lake extraction operator that is subject to the severance tax; and
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(ii) the rate of severance tax that is to be imposed under Subsection [59-5-202(5)]
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59-5-202(7).
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(5) The division may audit a certification submitted under this section for completeness and
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accuracy.
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(6) The division may take an enforcement action against a Great Salt Lake extraction
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operator who violates this section.
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Section 18. Effective Date.
- 35 - 1st Sub. (Buff) H.B. 528 03-03 07:13
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This bill takes effect for a future taxable year beginning on or after January 1, 2027.
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