Utah State
Tax
Commission
Annual Report
2012 - 2013 Fiscal Year
Letter to the Governor
Table of Contents
Commission Office
Administration
Sales Tax
Income Tax
Property Tax
Revenue Collections
1
13
23
33
61
Other Taxes and Fees
Legislative Summary
69
Letter to the Governor
3
71
Commission Office
1
The Utah State Tax Commission, creat-
ed in 1931, consists of four members, not more
than two of whom may belong to the same
political party. Members are appointed by the
Governor with consent of the Senate. Utah law
requires that membership of the Commission-
represent composite skills in accounting, law,
auditing, property assessment, management
and fi nance.
The Tax Commission collects most of the
state tax revenues and supervises the admin-
istration of general property tax that provides
a signifi cant percentage of the revenue for the
operation of local governments in Utah.
The Commission comprises seven oper-
ating divisions under the general supervision
of an executive director who is appointed by the
Commission after consultation with the Gover-
nor and confi rmation by the Legislature.
Tax Commissioners are also involved
with quasi-judicial hearings on tax matters.
Taxpayers who disagree with tax decisions
made by Commission employees and/or county
boards of equalizations may appeal to the Com-
mission. The appeals offi ce receives and hears
appeals and conducts hearings in compliance
with formal rules approved by the Commission.
The Commission has fi nal review authority of
the appeals process, but the decision can be ap-
pealed to District Court or the Utah Supreme
Court.
Over the years, State law has given the
Commission numerous specifi c powers and du-
ties for carrying out the broad powers outlined
in the Constitution. These include the author-
ity to do the following:
- Require information from State and lo-
cal offi cials
- Subpoena witnesses to testify and pro-
duce records and documents
- Supervise and direct the work of local
tax offi cials
- Direct proceedings, actions and pros-
ecutions to enforce state tax laws
- Prescribe forms relating to the assess-
ment and collection of state and local taxes,
and
- Extend or reconvene sessions of county
boards of equalization.
Commissioners R. Bruce Johnson,
D’Arcy Dixon, Michael Cragun
and Robert Pero are appointed
by the Governor to hear appeals
and conduct hearings on state tax
matters.
2
Appealed Cases by Type
Appealed tax Cases
Locally Assessed
982 - 35.7%
Centrally Assessed
69 - 2.5%
Motor Vehicles
21 - 0.8%
All Others
17 - 0.6%
Refund Requests
121 - 4.4%
*Audit
1,344 - 48.9%
Revocation
73 - 2.7%
Penalty and Interest
78 - 2.8%
Salesperson
License
45 - 1.6%
*Includes individual income, sales and
use tax, corporate income tax, fuel taxes,
severance tax, and cigarette and tobacco
products tax.
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1,687
2,751
3,108
3,235
3,284
3,819
2,351
1,593
1,694
1,727
1,668
This chart shows the trend in the number of apealed cases fi led at the Tax Commission
since fi scal year 2003.
Fiscal Years
Administration
3
The Utah State Tax Commission collects and distributes over
$7.6 billion in state and local revenues. The primary Tax Commission
responsibilities include the following:
* Process revenue, returns and update taxpayer information
* Audit tax returns and other information for accuracy and
compliance
* Collect delinquent taxes
* Assist taxpayers with compliance and resolve account issues
* Register and issue titles for motor vehicles and motor carriers
* Regulate the automobile sales industry and enforce motor
vehicle laws, including vehicle fraud and stolen vehicles
The Tax Commission employs about 750 people in seven divi-
sions to carry out these responsibilities. The Tax Commission Offi ce is
located at 210 North 1950 West in Salt Lake City.
#1 Timely Service
A. Revenue Deposits
Importance: The timely collection and deposit of revenues in state accounts is critical for
state investment purposes and to provide funds for government services.
Action: State guidelines require all deposits of funds within 72 hours of receipt. Our goal
is to deposit funds within 24 hours of receipt and withn 72 hours during peak return periods.
This goal is met 98 percent of the time.
Barry C. Conover
Executive Director
B. Income Tax Refunds
Importance: The public expects and relies on timely income tax refunds. Technological
advancements, including electronic fi ling options, have reduced the time taxpayers wait to re-
ceive state income tax refunds.
Action: Timeliness of refunds generally depends on how early the taxpayer fi les the re-
turn. Income tax refunds are targeted to be processed within 15 days of receipt which occurs
95 percent of the time. Exceptions occur when there are edits or errors. Those returns are then
marked for review.
C. Citizen Telephone Assistance
Importance: Since citizens are required by law to fi le tax returns and register their vehi-
cles, we provide timely quality responses to all telephone inquiries in order to assist people with
their transactions.
Action: The Taxpayer Services and Motor Vehicles divisions both assist citizens who
contact the Tax Commission by telephone. The Taxpayer Services Division is at the center of ad-
dressing and solving specifi c taxpayer questions. Employees provide customer service and main-
tain front-line contact with the public on tax issues. This division also provides phone assistance,
collects delinquent taxes and encourages future compliance with tax laws.
The Division of Motor Vehicles answers all vehicle-related questions from citizens. Charts
on the succeeding page illustrate the number of calls and the response to those calls.
D. DMV Wait Times
Importance: Citizens visiting Division of Motor Vehicles offi ces deserve effi cient service
in the least amount of time. The chart below shows the average wait times for large state-oper-
ated motor vehicle offi ces. These include all Wasatch Front offi ces. Wait times vary signifi cantly
from offi ce to offi ce depending on the day of the week, day of the month and time of day. Due to
these considerations, the Division of Motor Vehicles’ focus continues to be on wait time trends
rather than specifi c daily wait times.
Action: The Division of Motor Vehicles’ goal is to keep the average wait time shorter than
20 minutes and no longer than 30 minutes during peak periods. To reach this goal, the division
utilizes seasonal employees to meet customer service demands during peak periods. Monthly
wait times recorded by electronic management systems are used to monitor the average wait
time as well as the maximum average time.
Maximum Average Wait Time
(Peak Busy Days of Month)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Average Wait Time
Minutes
49:35
41:03
38.28
42:15
50:27
9:02
5:04
5:23
7:10
6:27
This chart shows wait times at Wasatch Front DMV offi ces during peak periods and overall averages.
4
Taxpayer Services Telephone Assistance
DMV Telephone Assistance
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
320,485
353,489
251,123
315,390
249,484
274,296
294,860
289,041
502,761
545,894
553,819
509,296
524,575
545,079
485,034
491,846
Total Calls
Calls Answered by Staff
Total Calls
Calls Answered by Staff
This chart compares the total number of taxpayer assistance telephone calls to the number of tax-
payer assistance telephone calls answered by a staff member.
This chart compares the total number of DMV assistance telephone calls to the number of DMV as-
sistance telephone calls answered by a staff member.
5
#2 Electronic Filing and Payment Options
A. Income Tax Returns
Importance: The Tax Commission continues to use technological advancements and
alternative methods of fi ling income tax returns to keep pace with a growing population and
economy. Over one million income tax returns are fi led annually and we continue to encourage
electronic fi ling. Utah taxpayers have three electronic fi ling options available:
1) Commercial software packages
2) Modernized Electronic Filing (MEF) with the IRS and
3) Taxpayer Access Point (TAP), the state’s online option
The chart below shows the changes in these three options over the past 10 years.
Action: We continue to promote the use of electronic fi ling options and expect the in-
creased popularity of these options to continue. This helps offset the increase in the number of
taxpayers fi ling returns due to Utah’s population growth and other factors.
B. Motor Vehicle Transactions
Importance: All motor vehicles, off-highway vehicles and watercraft operating in Utah
must be licensed and registered by the Division of Motor Vehicles (DMV). Some transactions,
such as the issuance of a title on a new vehicle, must be completed in a DMV offi ce since docu-
mentation is required. However, many transactions, including most renewals, can be completed
electronically or by contracted third parties. Third parties include authorized commercial deal-
ers, inspection stations and other contracted parties that can complete DMV transactions.
Action: We encourage citizens to complete renewal transactions through the Internet,
mail and authorized inspection stations. Use of these options has allowed the division to meet
the demands of the growing population for a number of years. The charts on the following pages
show growth in different types of renewal transactions and the increase in the total number of
renewals.
Income Tax Returns Electronic Filing
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
380,429
1,113,811
Combined *JELF, Modern Electronic with IRS and Internet w/Commercial Software
Online Taxpayer Access Point (TAP)
Paper Filing
35,364
561,990
219,034
59,204
654,582
433,145
25,489
This chart shows the trends of the various electronic fi ling options for State income fi lers.
6
* JELF stands for “Joint Electronic Filing” of federal and state income tax returns.
dmv Renewal Transactions
dmv Renewal Trend
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1,010,429
425,277
75,764
0
Offi
ce/Counter
Internet (Renewal Expre
ss)
On-the-Spot an
d Third Party
Mail
99,622
562,676
614,616
874,278
1,485,001
2,151,1922,170,134
This chart shows the trend in renewals over the past 10 years at the Division of Motor Vehicles.
7
This chart shows trends in various DMV renewal options over the past 10 years.
2006 2007 2008 2009 2010 2011 2012 2013 2014
Imaging
January 2007 to May 2007
Sales and Use Tax
March 2007 to January 2008
Witholding, Corporate,
Streamlined Sales Tax,
IFTA, IRP & FSU
April 2008 to March 2009
Motor Vehicle and
Motor Vehicle Enforceme
nt
June 2012 to October 2013
Taxpayer Access Portal
April 2009 to December 2009
Fuels and Other Taxes
January 2010 to October 2010
Miscellaneous Taxes
Phase II
June 2011 to December 2011
Miscellaneous Taxes
Phase III
January 2012 to June 2012
Remittance Processing
And Imaging
November 2013 to
November 2014
Miscellaneous Taxes
Phase I
January 2010 to June 2011
#3 Quality Systems and Business Processes
Importance: The state’s tax and motor vehicle administration
processes rely heavily on automated computer systems. They are used
to accurately record and retain information provided by citizens for
millions of tax and motor vehicle transactions each year. On a daily
basis, these systems are used to record large volumes of transactions
and distribute multiple types of revenue and fees to hundreds of dif-
ferent state and local funds. Computer systems are used extensively
by Tax Commission employees who help ensure that citizens pay their
fair share of the cost of fi nancing state and local government pro-
grams.
Action: With the support of the Governor and Legislature, the
Tax Commission began a long-term project in 2006 to systematically
replace its many aged and individually developed computer systems. This multi-year project has
integrated agency systems using one core processing program, benefi ting from use of the same
core functionality as each of the aged systems is converted. This resulted in improved agency ef-
fi c iency, improved customer service, enhanced citizens compliance and more fl exibility to make
system changes as the state’s tax and motor vehicle system laws are modifi ed. Imaging and pay-
ment processing updates will be completed by fi scal year 2015.
The old computer systems have been converted to the new system in strategic phases.
Benefi ts being realized from the systems already converted to the new core processing system
include the following:
• Consistent data entry, review and update screens across all converted systems
• Imaging options for improved customer service and internal review
• Image retention for all system communications to taxpayers
• One core system used for accounting, distribution and billing
• Online citizen access for information updates
• Improved report and case management tools
• Consistent user view of account information
• Enhanced electronic fi ling options
• Real time transaction processes
• Core system functions updated
• Improved employee training
• Improved audit selection
• Tax evasion more easily identifi ed
• Improved data security features
• Citizen compliance enhanced
Scott Smith
Assistant
Executive Director
8
Individual Income Tax
April 2006 to January 2007
Citizen and Business Benefi ts
• Enhanced electronic fi ling options allow online access, review and update of personal
and business account information
• Returns and registration processes can be completed online
• Real-time processing of most transactions
• Images of documents for improved customer service
• System retains functions of most transactions
• Effective government services are provided by the Tax Commission using one core sys-
tem, for various functions using the same accounting, distribution and billing processes
for converted functions
9
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Organization Of
Utah State Tax Commission
Administration Mission
Our mission is to collect revenue for the State of Utah and local governments
and to equitably administer tax and assigned motor vehicle laws.
Do It Right the First Time
Effectively communicate and build
working relationships with all customers
Better Tools for Better Results
Deliver quality products and services
Allow Great People to do Great Work
Create and maintain a work environment
where people excel and productivity is enhanced
10
Operating Divisions
Craig Sandberg, Director
Denny Lytle, Director
Dee Talbot, Director
Property Tax
• Appraises and audits
all centrally assessed
properties including
mines, utilities, airlines,
railroads, motor carriers
and telecommunication
providers
• Administers Truth-
in-Taxation law among
counties, cities, towns and
special service districts
• Works with local offi -
cials to assure equitable
and accurate assessments
Taxpayer Services
• Maintains front-line
contact with the public
• Provides direct custom-
er service to individuals
• Collects delinquent
taxes and encourages
compliance
• Administers waiver of
penalty/interest and of-
fers-in-compromise pro-
grams
• Offers tax education
classes and workshops on
state taxes to businesses
Auditing
• Audits all state taxes
and local taxes as admin-
istered by the Tax Com-
mission.
• Determines that taxes
due have been reported
properly
• Provides education to
taxpayers on proper tax
reporting
• Enhances voluntary
taxpayer compliance
Administration Division
•Drafts legislation and rules
•Oversees implementation of tax laws
•Investigates and prosecutes tax crimes
•Provides daily oversight and support of all divisions
•Distributes revenues to state and local governments
•Develops and manages budgeting and accounting functions
•Oversees Division of Human Resources and Department of Technology Services
11
Dennis Ritz, Director
Brad Simpson, Director Kent Jorgensen, Director
Processing
Division
• Designs all Tax Com-
mission publications,
forms and instructions for
Internet access
• Deposited $7 billion in
gross revenues received
by the State Tax Commis-
sion
• Processed 1,443,467
electronic tax returns,
775,475 paper returns
and imaged 4,068,913
motor vehicle documents
Division Of
Motor Vehicles
• Collected $461 million
in taxes and fees
• Processed a total of
4,465,957 transactions
which included 2,759,167
vehicle registrations
• Trains staff of contract-
ed counties to administer
motor vehicle programs
for the state
•Provides vehicle iden-
tifi cation services to law
enforcement, fi nancial
institutions and individu-
als throughout the state
Motor Vehicle
Enforcement
• Investigates auto theft
and other vehicle-related
crimes throughout the
state
• Regulates the automo-
bile sales industry
• Recovered 555 sto-
len vehicles, valued at
$3,869,249
• Handled 2,336 com-
plaints and cases; fi led
584 criminal counts
• Protects Utah citizens
from motor vehicle com-
merce fraud
- Personal income, corporate franchise
and income and gross receipts taxes
- Sales and use taxes, including numer-
ous local option taxes
- Tobacco, telecommunications, insur-
ance and other taxes
- Oil, gas and mining severance taxes
- Centrally assessed property taxes
- Motor vehicle registration fees
- Employer withholding taxes
- Various fuel taxes
The Tax Commission administers these taxes and fees
12
Revenue Collections
13
Tax Revenues
The Utah economy continued to
strengthen in fi scal year 2013 as evidenced by
growth in major state revenues. Net collections
by the Tax Commission grew 11.5 percent in
fi s cal year 2013 to $7.68 billion from $6.89 bil-
lion in fi scal year 2012.
Utah non-farm wages rose 5.8 percent
in calendar year 2012, an indication of an
improving labor market. The Utah unemploy-
ment rate also declined from 6.9 percent in
2011 to 5.7 percent in 2012. Stock market
gains, double-digit corporate profi ts, positive
consumer sentiment, available fi nancing, a
stable housing market and strong motor ve-
hicle sales contributed to the growth in tax
revenues.
The state seems poised to continue on a
path of moderate recovery going into FY 2014.
General and Education Fund
Major sources of unrestricted tax revenue
within the General and Education Funds
increased 10.3 percent in FY2013, exceeding
the February forecast of 5.9 percent. The nine
major tax revenue sources contained here are
sales and use, income, corporate franchise,
insurance, beer, cigarette, tobacco, oil and gas,
and mining severance taxes. They comprise 95
percent of revenue (excluding federal funds) in
the General and Education Fund.
Individual Income and
Corporate Franchise Taxes
Individual income taxes grew $392.6
million or 16 percent in FY2013. Federal tax
changes caused certain individuals to acceler-
ate income into tax year 2012 (FY2013) rather
than future years to avoid higher tax rates on
capital gains and dividends.
Withholding taxes grew 7.5 percent to
$2,313.7 million, gross fi nal payments jumped
nearly 34 percent to $922 million and refunds
which totaled $383.7 million remained fl at at
0.6 percent.
Corporate tax collections fi nished the
year up 25.8 percent, outpacing the 16.3 per-
cent growth forecast in February 2013 as
healthy business profi ts and restrained costs
contributed to robust growth. Mineral produc-
tion withholding fell 8 percent, from $28.3 mil-
lion in FY2012 to $26.1 million in FY2013.
Sales Tax
The largest general fund “free” revenue
source, sales and use taxes, grew 2.1 percent to
$1,615.9 million in FY2013 as the impact of in-
creasing Transportation Fund earmarks were
felt. A total of $422.1 million of sales taxes
were earmarked for transportation, water, nat-
ural resources and other purposes in FY2013.
State sales tax revenue, before earmarks, grew
6.4 percent.
Total gross taxable sales, services and
use tax purchases rose 7.8 percent in calen-
dar year 2012. Taxable purchases and sales
by businesses, including transportation and
warehousing, increased 6.9 percent in calendar
year 2012 following a 9.1 percent increase in
2011. This growth is evidence of a recovering
economy in 2012 fueled by a favorable interest
rate climate and improving sentiment.
Wholesale durable and nondurable
goods, which accounted for 42 percent of busi-
ness equipment purchases and sales, increased
16 percent in 2012. This follows an 11.7 growth
rate in 2011. The manufacturing category post-
ed more moderate growth, rising 3.1 percent in
calendar year 2012. Mining and construction
purchases posted 13.4 and 14.9 percent gains,
respectively.
In general, all categories in the business
equipment sector recorded positive gains with
the exception of utilities, wholesale electronic
markets, and transportation and warehous-
ing which declined 0.9, 49.1, and 54.7 percent,
respectively, following gains in 2011.
(Continued on following page)
(Continued from preceeding page)
Retail Trade
The retail trade sector increased 7.9
percent in calendar year 2012 with all catego-
ries in this sector experiencing growth. Retail
motor vehicle dealer sales led this sector with
sales increasing 13.2 percent as ease of fi nanc-
ing, pent-up demand and an improving econo-
my helped boost sales in 2012.
General merchandise and clothing store
sales grew 4.9 and 12.4 percent, respectively.
This is perhaps the result of a stronger labor
market and improving consumer confi dence.
In calendar year 2012, building and garden,
furniture and electronic and appliance store
sales rose 12.2, 2.5 and 4.4 percent, respective-
ly, assisted by a recovery in the housing mar-
ket. In calendar year 2012, food and beverage
store sales increased 3.8 percent.
The taxable services sector consists of
consumer spending on food services, drinking
establishments, amusement, hotels, resorts,
rental cars, personal/fi nancial services, and
business/consumer spending on computers and
equipment.
The service sector rose 7.8 percent in
calendar year 2012. Accommodation and food
services, which includes restaurants, increased
7.5 and 6.7 percent, respectively. Arts, enter-
tainment and recreation services rose nearly 11
percent in 2012. Information services increased
almost 12 percent in calendar year 2012. Pro-
fessional, scientifi c and technical services
jumped 21.1 percent. The fi nance and insur-
ance category, however, fell 4.4 percent.
Private motor vehicle sales grew 3.4 percent
in calendar year 2012.
Severance and Excise Taxes
Oil and gas and mining severance taxes
combined fell 22.9 percent in fi scal year 2013
as declines in prices and production were re-
fl e cted in lower tax revenue. Beer, cigarette
and tobacco taxes fell 3.6 percent in fi scal year
2013. Beer taxes were fl at and tobacco taxes
were down only 1 percent; however, cigarette
tax revenue declined 4.5 percent.
Major sources of unrestricted revenue in the
Transportation Fund grew 0.7 percent in fi s-
cal year 2013. Motor vehicle registration fees
and motor fuel taxes rose 4.5 and 1.5 percent,
respectively. Special fuel taxes, which include
revenue from diesel fuel, fell 2.6 percent.
The Transportation Fund, however, receives
signifi cant revenue from earmarks and other
restricted funds. Consequently total tax rev-
enues and fees in the Transportation Fund,
including earmarks, rose 11.3 percent to $960
million. In FY 2013 additional money to the
Transportation Fund came from legislation
passed in 2011 earmarking 30 percent of future
growth in sales tax revenue for transporta-
tion, starting in fi scal year 2013. An additional
$74.4 million came from this source. In fi scal
year 2013 a total of $391.82 million in sales tax
revenue was earmarked for transportation.
Revenue Collections
14
Revenue Collection by Fund
Fiscal Year 2013
Education Fund
$3,256,160,460
42.4%
Trust and Agency Fund
$1,269,213,016
16.5%
Transportation Fund
(Includes Restricted Funds)
$959,935,252
12.5%
All Others
(Includes Dedicated Credits,
Enterprise Funds,
General Fund Restricted
and Special Revenues)
$268,126,573
3.5%
General Fund
(Not Including General Fund Restricted)
$1,924,890,840
25.1%
$7,678,326,140
Total Net Revenue Collected - Fiscal Year 2013
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Major Revenue Sources
(In Millions of Dollars)
These fi ve major revenue sources represent about 72 pecent of all tax revenue received by the state.
See the following six pages for detailed information on specifi c tax revenue sources.
Corporate Franchise Tax
$338,173,415
6.11%
Local Sales and Use Tax
$474,430,572
8.57%
Motor Fuel Tax
$256,867,039
4.64%
State Sales
and Use Tax
$1,615,936,497
29.18%
Individual Income Tax
$2,852,022,185
51.50%
16
General Fund
Total Collected - $1,924,890,840
Transportation Fund
Total Collected - $959,935,252
State Sales and Use
$1,615,936,497
83.9%
Mining Severance
$16,940,927 - 0.9%
Beer
$8,422,487 - 0.4%
Insurance Premiums
$89,591,912 - 4.7%
Oil and Gas Severance
$53,164,253 - 2.8%
Multi-Channel Video
$26,929,692 - 1.4%
Cigarette and Tobacco
$112,458,464 - 5.8%
Other
$1,446,607 - 0.1%
Transportation Projects
$41,763,016 - 4.4%
Proportional Registration
$15,882,183 - 1.7%
Critical Needs Highway
$100,563,390 - 10.5%
Motor Vehicle Control
$4,975,089 - 0.5%
Motor
Fuels
$256,867,039
26.8%
Highway Use
$11,158,168 - 1.2%
Motor
Vehicle
Registration
$37,307,029 - 3.9%
Aviation Fuel
$6,335,884 - 0.7%
Public Transportation
Highway System
$31,585,108 - 3.3%
Special Fuels
$101,360,289 - 10.6%
Motor Vehicle Investment
Transportation Fund/
MV Registration Fee
$147,463,998 - 15.4%
Local Corridor Preservation
$18,291,310 - 1.9%
All Others
$9,818,773 - 1%
Centennial Highway, 1/64th
and Registration Fees
$176,563,976 - 18.4%
17
Education Fund
Total Collected - $3,256,160,460
Trust and Agency Fund
Total Collected - $1,269,213,016
Mineral Production Withholding
$26,075,556
0.8%
All Others
$59,074,784 - 4.7%
Corporate Franchise
$338,173,415
10.4%
Individual Income
$2,852,022,185
87.6%
Driver Education Fees
$5,202,744
0.2%
Wine and Liquor
$34,686,560
1.1%
County Option/
Fixed Guideway
$16,583,170- 1.3%
Public Transit
$196,666,230 - 15.5%
Municipal Telecommunications
$36,898,007 - 2.9%
County ZAP
$30,696,717 - 2.4%
Emergency Phone
$21,647,234 - 1.7%
Transient Room
$39,226,854 - 3.1%
Insurance Premium/Employers
Reinsurance/Uninsured Employers
$13,526,952 - 1.1%
Local Sales and Use
$474,430,572 - 37.4%
Resort Communities
$14,388,889 - 1.1%
County Option Sales
$118,619,062 - 9.3%
Motor Vehicle County Collections
$168,790,051 - 13.3%
Insurance Premium/Firefi ghters Pension
$12,514,672 - 1.0%
Highway Sales and Use
$13,024,439 - 1%
Tourism, Recreation, Cultural, Convention
$53,125,383 - 4.2%
18
Net Revenue Comparison
(Fiscal Years 2012 and 2013/TC-23 Report)
Dedicated Credits
Education Fund
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Net Revenue Comparison
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General Fund
Restricted General Fund
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Net Revenue Comparison
(Fiscal Years 2012 and 2013/TC-23 Report)
Special Revenues Fund
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Trust and Agency Fund
Net Revenue Comparison
(Fiscal Years 2012 and 2013/TC-23 Report)
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22
Income and Franchise Tax
Individual income taxes and corporate
franchise and income taxes in Utah, as speci-
fi e d in the Utah Constitution, are used strictly
to fund public and higher education.
The tax rate under the “single rate” is 5
percent and most taxpayers are able to claim
one or more non-refundable credits, including a
taxpayer tax credit and a retirement tax credit.
The taxpayer tax credit calculation incor-
porates a taxpayer’s federal personal exemptions
and standard deduction or itemized deductions.
The retirement tax credit applies to those age
65 or older or those under age 65 with certain
retirement income. These credits phase out as
income increases. Existing tax credits available
for individual income tax, such as low income
housing, historic preservation, at-home parent,
and others continue under the new single rate
individual income tax.
Corporate Income Tax
The state corporate franchise and income
tax rate is 5 percent of Utah apportioned net
income, with a $100 minimum tax per corpora-
tion.
The gross receipts tax is an in-lieu tax im-
posed on the gross receipts of corporations other
than religious or charitable institutions operat-
ing in the state that are not otherwise required
to pay income or franchise taxes.
A percentage of gross receipts at commer-
cial radioactive waste facilities is imposed on
the different types of waste. These percentages
range from 5 to 12 percent, depending on the
specifi c type of waste.
Individual Income Tax Withholding
An employer must withhold state income
tax from employee earnings if the employer
1) does business in Utah or obtains any in-
come from Utah sources; and
2) pays wages to individuals who perform
services for that employer in the State of Utah.
Employers are liable to withhold taxes on em-
ployee wages using Tax Commission sched-
ules.
Individual
Income Tax
2013 . . . . . . $2,852,022,185
2012 . . . . . . . . . . . . . $2,459,432,168
2011. . . . . . . . . . . . . . $2,298,175,190
2010. . . . . . . . . . . . . . $2,104,592,033
2009. . . . . . . . . . . . . . $2,319,571,988
2008. . . . . . . . . . . . . $2,598,838,985
2007. . . . . . . . . . . . . $2,561,383,572
2006. . . . . . . . . . . . . $2,277,611,642
2005. . . . . . . . . . . . . $1,926,595,614
2004. . . . . . . . . . . . . $1,692,276,665
2003 . . . . . . . . . . . . . $1,572,512,496
2002. . . . . . . . . . . . . $1,605,310,235
2001. . . . . . . . . . . . . $1,705,271,260
2000. . . . . . . . . . . . . .$1,651,448,292
Corporate
Franchise Tax
2013 . . . . . . . $338,173,415
2012. . . . . . . . . . . . . . . . $268,893,788
2011. . . . . . . . . . . . . .$260,739,149
2010. . . . . . . . . . . . . . . $258,444,866
2009 . . . . . . . . . . . . . . . $255,406,131
2008. . . . . . . . . . . . . . . $405,050,475
2007. . . . . . . . . . . . . . . . $414,129,658
2006 . . . . . . . . . . . . . . . $366,625,805
2005 . . . . . . . . . . . . . . $204,186,982
2004 . . . . . . . . . . . . . . . . $158,151,733
2003 . . . . . . . . . . . . . . . $156,310,910
2002 . . . . . . . . . . . . . . . $118,959,730
2001 . . . . . . . . . . . . . . . . $171,095,262
2000 . . . . . . . . . . . . . . . $181,139,188
Mineral
Withholding Tax
2013 . . . . . . . . $26,075,556
2012. . . . . . . . . . . . . .$28,342,125
2011. . . . . . . . . . . . . .$26,691,525
2010. . . . . . . . . . . . . .$24,556,444
2009. . . . . . . . . . . . . .$32,479,957
2008. . . . . . . . . . . . . .$23,831,590
2007. . . . . . . . . . . . . .$23,056,151
2006. . . . . . . . . . . . . .$22,734,690
2005. . . . . . . . . . . . . .$16,736,761
2004. . . . . . . . . . . . . .$17,266,409
2003. . . . . . . . . . . . . .$7,184,720
2002. . . . . . . . . . . . . .$13,219,494
2001. . . . . . . . . . . . . .$19,451,314
2000. . . . . . . . . . . . . .$9,297,881
23
State Income Tax Data
(Based on 2011 Tax Year)
State Income Tax Adjusted Gross Income Data
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% of number of taxpayers in this AGI group
% of state income tax paid by this AGI group
37.84%
2.16%
40.29%
28.32%
14.80%
28.92%
5.56%
20.48%
1.07%
8.30%
0.30%
4.60%
0.13%
7.23%
This chart compares the percentage of taxpayers in adjusted gross income groups with the per-
centage of the total amount of state income tax paid in Utah in the 2011 tax year. For example, the
percentage of taxpayers earning $25,000 or less equals 37.8 percent; however, they paid only 2.16
percent of total state income taxes. On the other end of the spectrum, 0.1 percent of Utah taxpayers
earned more than $1 million and paid 7.23 percent of the total state income taxes.
$25,000
or less
$25,001
to $75,000
$75,001
to $125,000
$125,001
to $250,000
$250,001
to $500,000
$500,001
to $1 million
Greater Than
$1 million
24
State Income Contributions
Historical Total State Income Tax Contributions
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1982 1986 1992 1996 2002 2006 2012
$282,514
$313,003
$253,505
$333,615
$255,260
$206,982
$445,397
25
Corporate Taxes Paid by Taxable Income Groups
(Non-minimum taxpayers)
Minimum Corporate Tax
The state corporate franchise and income tax rate
is 5 percent of Utah apportioned net income, with a
$100 minimum tax per corporation.
For the 2011 tax year, approximately 75 percent
of corporate returns paid the $100 minimum tax
accounting for only 1 percent of total corporate tax
paid.
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*This table represents corporations that pay more than the minimum $100 tax.
State Corporate Taxable Income*
This chart compares the percentage of corporate returns with the percentage of corporate franchise
tax paid by non-minimum taxpayers for tax year 2011. The non-minimum corporate taxpayers pay 99
percent of total corporate franchise tax.
% of number of total taxpayers in this income group
% of number of total state corporate income tax paid in this income group
23.37%
0.12%
30.86%
0.77%
13.48%
0.92%
22.54%
7.55%
7.74%
22.91%
26
2.00%
67.73%
State Corporate Taxes Paid by Industry Groups
States may only tax the portion of income
generated by the corporation within its bor-
ders. The general practice among states is to
divide a corporate’s income based on its rela-
tive presence in a state determined by a statu-
tory formula that includes some combination of
payroll, property and sales.
Many corporations doing business in Utah
use an equally-weighted three-factor formula
comprised of property, payroll and sales or may
elect a formula that double-weights the sales
factor. Other corporations that derive most of
their income from the mining, manufacturing,
transportation and warehousing, fi nance and
insurance or most information sectors, must
use a formula that weights the sales factor
even more heavily. This transitions to a single
sales factor formula begininning in 2013.
This table includes all corporate taxpayers by industry with the number of returns and total tax for
tax year 2011. Professional, scientifi c and technical services, retail trade, manufacturing and manage-
ment of companies and enterprises are the four largest taxpaying industries. Each paid over $34 million
in corporate franchise tax. See pie chart on following page for additional information.
These amounts refl ect the liabilities shown on 2011 returns. Because of payment due dates, refunds,
and other timing differences, these amounts do not equal the tax received in 2011. Moreover, returns
are generally fi led on a calendar year basis, whereas the receipts reported in this report are based on
the State’s fi scal year.
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27
Corporate Franchise Tax by Industry
Major Industry Sectors
*“All Other” Industry Sectors
(6.4% of Total)
Mining - 6.1%
Wholesale Trade - 10.2%
Retail Trade
13.0%
*All Others - 6.4%
(See chart below)
Information - 7.5%
Finance and Insurance - 6.9%
Management of
Companies - 13.2%
Professional,
Scientifi c
and Technical
Services
14.1%
Administrative Support of Waste Management
and Remediation Services - 2.6%
Health Care and
Social Assistance - 1.0%
Utilities - 0.00%
Manufacturing - 18.0%
Agriculture, Forestry,
Fishing and Hunting - 0.2%
Construction 1.1%
Real Estate, Rental
and Leasing - 0.6%
Education
Services - 0.4%
Transportation and
Warehousing - 2.0%
Accomodation and
Food Services - 0.7%
Unknown or
Undisclosable - 1.0%
Other Services
(Except Public
Administraiton)
1.3%
Arts, Entertainment and
Recreation - 0.1%
28
Federal Income Tax Data
(Based on 2011 Tax Year)
Select Return Data
Sources of Income (in millions of dollars)
Wages - 75.35%
Taxable Pensions - 6.60%
Partnerships - 6.39%
Capital Gains - 3.88%
Sole Proprietors - 2.14%
Interest - 1.24%
Dividends - 1.34%
Taxable IRA - 2.11%
Taxable Social Security - 2.17%
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Federal Income Taxes Paid
(By Adjusted Gross Income Groups for 2011 Tax year)
Federal Income Taxes Paid by Utah Taxpayers
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This chart compares the percentage of Utah taxpayers in adjusted gross income groups with the per-
centage of the total amount of federal income tax paid for the 2011 tax year. For example, the number
of those earning less than $25,000 was nearly 40 percent of total Utah tax fi lers; however, they paid less
than 2 percent of federal income taxes. Those who earned over $1 million was one-tenth of one percent
of the number of people fi ling income tax returns from Utah; however they paid over 16 percent of the
total federal income taxes.
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% of federal income tax paid by this AGI group
39.30%
1.68%
39.49%
17.76%
14.28%
20.80%
5.43%
21.80%
1.05%
13.02%
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8.55%
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30
Federal Income Tax County Comparison
The average amount of adjusted gross income (AGI) varies signifi cantly among Utah’s 29
counties. Historically, Summit County residents have the highest AGI, and for the 2011 tax year
it was more than $8,000 higher than Morgan County, second highest. The fi ve lowest average
AGI counties are all located in rural Utah.
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31
32
This page intentionally left blank
Sales Tax
The sales tax was fi rst introduced in Utah as a revenue source in 1933 when property tax
collections dropped dramatically during the Great Depression. The use tax was added in 1937 to
complement the existing sales tax.
The Utah State Tax Commission collects and distributes
all state and local sales and use taxes. The state sales and use tax
of 4.7 percent applies to sales of tangible personal property made
within the state, certain products transferred electronically, sales
of meals, admissions to places of amusement, intrastate commu-
nication, gas and heat utility service, commercial electric service,
hotel and motel accommodations and certain other services.
Retailer licenses are issued without a fee and retailers are
required to collect the tax from customers and remit it to the Tax
Commission. Charges for residential use of electricity and fuel are
taxed at a rate of 2 percent. The state sales tax rate on food and
food ingredients is 1.75 percent. The total sales tax on food, includ-
ing local taxes is 3 percent.
Use tax is imposed on taxable transactions where the pur-
chaser remits the tax directly to the Tax Commission. The two
taxes are compensating taxes, one supplementing the other, but
cannot be applicable to the same transaction. The rate of the tax is
the same.
Utah Code Ann. §59-12-101
FY2013 Revenues/$1,615,936,497
* The $1,615,936,497 total is the general fund unrestricted amount. State law
earmarked an additional $422,118,587
in revenues for natural resource protec-
tion, water, wastewater, transportation and other projects. The total reductions
in unrestricted sales use tax (“earmarks”) are reported in Governor’s Budget
Recommendations Fiscal Year 2015, page 9.)
Local Sales and Use Tax
All counties, cities, and towns in Utah
have adopted ordinances to impose a 1 percent
option of the local sales and use tax. This tax
applies to the purchase price on the same trans-
actions as the state sales and use tax and is
collected in the same manner as the state sales
tax.
Utah Code Ann. §59-12-101 and 59-12-201
FY2013 Revenues/
$474,430,572
State Sales
And Use Tax
(Net FY94 - FY13)
2013. . . . $1,615,936,497*
2012 . . . . $1,582,530,206
2011 . . . . .$1,601,399,490
2010. . . . $1,402,670,262
2009. . . . . $1,547,472,747
2008 . . . . $1,739,384,630
2007 . . . . $1,857,813,410
2006 . . . . $1,806,264,423
2005. . . . . $1,634,522,084
2004. . . . . $1,501,937,738
2003. . . . . $1,443,974,180
2002. . . . . $1,441,318,271
2001. . . . . . $1,431,419,465
2000. . . . . $1,369,637,021
1999. . . . . $1,316,403,921
1998. . . . . $1,251,765,342
1997. . . . . $1,252,131,165
1996. . . . . $1,162,524,830
1995. . . . $1,055,060,896
1994. . . . . $978,247,622
Local Sales
And Use Tax Collected
(FY94 to FY13)
2013 . . . . . $474,430,572
2012 . . . . . $441,463,981
2011 . . . . . $415,441,413
2010 . . . . . $398,888,385
2009 . . . . . $425,127,553
2008. . . . . . $469,428,948
2007 . . . . . $463,310,356
2006 . . . . . $415,904,148
2005 . . . . . $361,096,500
2004 . . . . . $331,554,140
2003 . . . . . $325,159,963
2002 . . . . . $317,978,847
2001 . . . . . $314,336,985
2000. . . . . $301,728,683
1999. . . . . $284,525,922
1998. . . . . $263,504,219
1997. . . . . $258,148,104
1996. . . . . $225,576,867
1995. . . . . $212,640,426
1994. . . . . $188,542,186
33
Local Sales Tax Distribution
Beaver County
Box Elder County
Cache County
%HDYHU&LW\
0LOIRUG
0LQHUVYLOOH
7RWDO&LWLHVDQG7RZQV
%HDYHU&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
%HDU5LYHU
%ULJKDP
&RULQQH
'HZH\YLOOH
(OZRRG
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6QRZYLOOH
7UHPRQWRQ
:LOODUG
7RWDO&LWLHVDQG7RZQV
%R[(OGHU&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
$PDOJD
&ODUNVWRQ
&RUQLVK
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/HZLVWRQ
/RJDQ
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0LOOYLOOH
1HZWRQ
1RUWK/RJDQ
3DUDGLVH
3URYLGHQFH
5LFKPRQG
5LYHU+HLJKWV
6PLWKILHOG
:HOOVYLOOH
7UHQWRQ
1LEOH\
7RWDO&LWLHVDQG7RZQV
&DFKH&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
34
Local Sales Tax Distribution
Carbon County
Daggett County
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
+HOSHU
3ULFH
6FRILHOG
6XQQ\VLGH
:HOOLQJWRQ
(DVW&DUERQ
7RWDO&LWLHVDQG7RZQV
&DUERQ&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
0DQLOD
7RWDO&LWLHVDQG7RZQV
'DJJHWW&RXQW\
7RWDO&RXQW\&LWLHVDQG7RZQV
Davis County
%RXQWLIXO
&HQWHUYLOOH
&OHDUILHOG
)UXLW+HLJKWV
)DUPLQJWRQ
.D\VYLOOH
/D\WRQ
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6RXWK:HEHU
6XQVHW
6\UDFXVH
:HVW3RLQW
:RRGV&URVV
&OLQWRQ
:HVW%RXQWLIXO
)DOFRQ+LOO'DYLV 1$
7RWDO&LWLHVDQG7RZQV
'DYLV&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
Duchesne County
$OWDPRQW
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0\WRQ
5RRVHYHOW
7DELRQD
7RWDO&LWLHVDQG7RZQV
'XFKHVQH&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
35
Local Sales Tax Distribution
Emery County
Grand County
Juab County
Iron County
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
&DVWOH'DOH
&ODZVRQ
&OHYHODQG
(OPR
(PHU\&LW\
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*UHHQ5LYHU
+XQWLQJWRQ
2UDQJHYLOOH
7RWDO&LWLHVDQG7RZQV
(PHU\&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
Garfield County
$QWLPRQ\
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%U\FH&DQ\RQ
&DQQRQYLOOH
(VFDODQWH
+DWFK
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3DQJXLWFK
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*DUILHOG&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
&DVWOH9DOOH\
0RDE
7RWDO&LWLHVDQG7RZQV
*UDQG&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
&HGDU&LW\
(QRFK
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3DUDJRQDK
3DURZDQ
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7RWDO&LWLHVDQG7RZQV
,URQ&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
(XUHND
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1HSKL
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7RWDO&LWLHVDQG7RZQV
-XDE&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
36
Local Sales Tax Distribution
Rich County
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
Kane County
Millard County
Morgan County
$OWRQ
*OHQGDOH
.DQDE
2UGHUYLOOH
%LJ:DWHU
7RWDO&LWLHVDQG7RZQV
.DQH&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
'HOWD
)LOOPRUH
+LQFNOH\
+ROGHQ
.DQRVK
/HDPLQJWRQ
/\QQG\O
0HDGRZ
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6FLSLR
7RWDO&LWLHVDQG7RZQV
0LOODUG&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
0RUJDQ
7RWDO&LWLHVDQG7RZQV
0RUJDQ&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
Piute County
&LUFOHYLOOH
-XQFWLRQ
.LQJVWRQ
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7RWDO&LWLHVDQG7RZQV
3LXWH&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
*DUGHQ&LW\
/DNHWRZQ
5DQGROSK
:RRGUXII
7RWDO&LWLHVDQG7RZQV
5LFK&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
37
San Juan County
Salt Lake County
Local Sales Tax Distribution
Sanpete County
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
$OWD
%OXIIGDOH
&RWWRQZRRG+HLJKWV
'UDSHU
+HUULPDQ
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7RWDO&LWLHVDQG7RZQV
6DOW/DNH&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
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0RQWLFHOOR
7RWDO&LWLHVDQG7RZQV
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7RWDO&RXQW\&LWLHVDQG7RZQV
&HQWHUILHOG
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*XQQLVRQ
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:DOHV
7RWDO&LWLHVDQG7RZQV
6DQSHWH&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
38
Local Sales Tax Distribution
Tooele County
Uintah County
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
Summit County
Sevier County
$QQDEHOOD
$XURUD
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(OVLQRUH
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6HYLHU&RXQW\8QLQFRUSRUDWHG
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7RWDO&RXQW\&LWLHVDQG7RZQV
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2SKLU
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7RRHOH&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
1DSOHV
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8LQWDK&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
39
Utah County
Local Sales Tax Distribution
Wasatch County
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
$OSLQH
$PHULFDQ)RUN
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(DJOH0RXQWDLQ
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3URYR
6DOHP
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6SULQJYLOOH
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(ON5LGJH
:RRGODQG+LOOV
7RWDO&LWLHVDQG7RZQV
8WDK&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
&KDUOHVWRQ
'DQLHO
+HEHU
,QGHSHQGHQFH
0LGZD\
:DOOVEXUJ
+LGHRXW
7RWDO&LWLHVDQG7RZQV
:DVDWFK&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
40
Local Sales Tax Distribution
Wayne County
Weber County
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
Washington County
$SSOH9DOOH\
(QWHUSULVH
+XUULFDQH
,YLQV
/D9HUNLQ
/HHGV
1HZ+DUPRQ\
5RFNYLOOH
6W*HRUJH
6DQWD&ODUD
6SULQJGDOH
7RTXHUYLOOH
9LUJLQ
:DVKLQJWRQ
+LOGDOH
7RWDO&LWLHVDQG7RZQV
:DVKLQJWRQ&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
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/\PDQ
7RUUH\
7RWDO&LWLHVDQG7RZQV
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7RWDO&RXQW\&LWLHVDQG7RZQV
)DUU:HVW
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8LQWDK
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7RWDO&LWLHVDQG7RZQV
:HEHU&RXQW\8QLQFRUSRUDWHG
7RWDO&RXQW\&LWLHVDQG7RZQV
41
Mass Transit Sales Tax
A county, city, or town may impose mass transit taxes up to .80 percent to fund statuto-
rily specifi ed transit needs.
Utah Code Ann. §59-12-2201
FY2013 Revenues/$196,666,230
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
%ULJKDP
3HUU\
:LOODUG
&DFKH&RXQW\
+\GH3DUN
+\UXP
/HZLVWRQ
/RJDQ
0LOOYLOOH
1RUWK/RJDQ
3URYLGHQFH
5LFKPRQG
5LYHU+HLJKWV
6PLWKILHOG
1LEOH\
'DYLV&RXQW\
6DOW/DNH&RXQW\
6XPPLW&RXQW\
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7RRHOH&RXQW\
7RRHOH
8WDK&RXQW\
$OSLQH
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0DSOHWRQ
2UHP
3D\VRQ
3OHDVDQW*URYH
3URYR
6DOHP
6DQWDTXLQ
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6DUDWRJD6SULQJV
+LJKODQG
6SDQLVK)RUN
6SULQJYLOOH
&HGDU+LOOV
:HEHU&RXQW\
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The amounts collected as shown in the FY2013 Revenues at the top of the page are accrued revenues for the Mass Transit Sales tax. The
revenues shown as a column total refl ect the actual amounts distributed during the fi scal year. The amounts differ due to timing.
42
County Option Sales Tax
2013 . . . $118,619,062
2012. . . . $110,329,024
2011 . . . . $104,012,820
2010. . . . . . $99,858,519
2009 . . . . $106,801,736
2008 . . . . $116,813,830
2007 . . . . $114,633,291
2006 . . . . $102,809,849
2005 . . . . . . $89,475,269
2004 . . . . . . $82,569,380
2003 . . . . . . $81,075,363
2002 . . . . . . $78,993,477
2001 . . . . . . $77,306,326
2000. . . . . $74,014,757
County Option Tax Collected
(Net FY00 - FY13)
All counties in Utah have adopted ordinanc-
es to enforce a .25 percent optional sales and use
tax. This tax applies to the purchase price on the
same transactions as the state sales and use tax
and is collected in the same manner as the state
sales tax. Utah Code Ann. §59-12-1102
FY2013 Revenues/$118,619,062
The amounts collected as shown in the shaded box are accrued rev-
enues for the county option sales tax. The revenues shown refl ect the actual
amounts distributed during the fi scal year. The amounts differ due to
timing.
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
%HDYHU&RXQW\
%R[(OGHU&RXQW\
&DFKH&RXQW\
&DUERQ&RXQW\
'DJJHWW&RXQW\
'DYLV&RXQW\
'XFKHVQH&RXQW\
(PHU\&RXQW\
*DUILHOG&RXQW\
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-XDE&RXQW\
.DQH&RXQW\
0LOODUG&RXQW\
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3LXWH&RXQW\
5LFK&RXQW\
6DOW/DNH&RXQW\
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6DQSHWH&RXQW\
6HYLHU&RXQW\
6XPPLW&RXQW\
7RRHOH&RXQW\
8LQWDK&RXQW\
8WDK&RXQW\
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43
Municipal Highways Sales Tax
A municipality that does not levy the public tran-
sit tax may impose a sales and use tax of 0.30 percent of
the purchase price on transactions subject to the state
sales tax. Voter approval may be required under certain
circumstances. Revenues from this tax must be used for
the construction and maintenance of highways under
the jurisdiction of the municipality. Retailers are re-
sponsible to collect the tax under the same conditions as
the sales and use tax. The Tax Commission collects and
distributes this tax for participating localities. Since
this option tax was fi rst approved in 1998, 25 cities and
towns have imposed the tax.
Utah Code Ann. §59-12-2215
FY2013/$13,024,439
Highways Tax Collected
(Net FY01 to FY13)
2013 . . . . . . . . . . . . $13,024,439
2012.. . . . . . . . . . . . . . . $12,160,309
2011. . . . . . . . . . $10,913,121
2010 . . . . . . . . . . . .$9,861,529
2009 . . . . . . . . . . . $11,608,893
2008 . . . . . . . . . . . $11,956,979
2007 . . . . . . . . . . $11,324,318
2006 . . . . . . . . $10,344,378
2005 . . . . . . . . $8,432,989
2004 . . . . . . . . . . $7,151,822
2003. . . . . . . . . . . . $6,612,983
2002 . . . . . . . . . . . . $6,270,817
2001 . . . . . . . . . $5,744,043
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
3ULFH
:HOOLQJWRQ
5RRVHYHOW
*UHHQ5LYHU
0RDE
%ULDQ+HDG
1HSKL
%ODQGLQJ
0RQWLFHOOR
(SKUDLP
)DLUYLHZ
*XQQLVRQ
0W3OHDVDQW
5LFKILHOG
6DOLQD
1DSOHV
9HUQDO
+HEHU
0LGZD\
+XUULFDQH
,YLQV
/D9HUNLQ
6W*HRUJH
6DQWD&ODUD
:DVKLQJWRQ
The amounts collected as shown in the shaded box are accrued revenues for the
municipal highways sales tax. The revenues shown by community refl ect the actual
amounts distributed during the fi scal year. The amounts differ due to timing.
44
Botanical, Cultural,
Recreational and Zoological Tax
The botanical, cultural and zoological tax, often re-
ferred to as “ZAP” (zoo, arts, and parks) and various oth-
er acronyms, may be imposed at the rate of 0.10 percent
(1/10th of 1 percent) of the purchase price on transactions
taxed under the state’s sales and use tax law. This tax
may be adopted in any county or city in which voters have
approved the tax to fund recreational facilities and botani-
cal, cultural and zoological organizations. Retailers are li-
able to collect the tax under the same conditions as appli-
cable for sales and use tax.
Utah Code Ann. §59-12-701
FY2013 Revenues/$30,696,717
The amounts collected as shown in the shaded box are accrued revenues for the
botanical, cultural, recreational and zoological tax. The revenues shown by community
refl ect the actual amounts distributed during the fi scal year. The amounts differ due to
timing.
Botanical, Cultural And
Zoological Tax
(Net Collected FY04 to FY13)
2013 . . . . . . . . . .$30,696,717
2012 . . . . . . . . . . . . . . $28,834,681
2011. . . . . . . . . . . . . . . . $26,787,519
2010 . . . . . . . . . . . . . . . $25,850,763
2009 . . . . . . . . . . . . . . . . . . $27,065,125
2008 . . . . . . . . . . . . . . . . . . $31,520,286
2007. . . . . . . . . . . . . $31,881,204
2006. . . . . . . . . . . . $26,242,424
2005 . . . . . . . . . . $19,916,601
2004. . . . . . . . . . $18,448,162
&HQWHUYLOOH
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5RRVHYHOW
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6DOW/DNH&RXQW\
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0RQWLFHOOR
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1$ 1$
*XQQLVRQ
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1$ 1$
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5HGPRQG
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1RWH7D[LPSRVHGHIIHFWLYH
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Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
45
2013 . . . . . . . . . . . $53,125,383
2012 . . . . . . . . . . . . $50,134,347
2011 . . . . . . . . . . . . . $47,351,230
2010 . . . . . . . . . . . . . . $45,258,481
2009 . . . . . . . . . . . . . $45,251,119
2008 . . . . . . . . . . . . $48,002,666
2007 . . . . . . . . . . . . $44,337,297
2006 . . . . . . . . . . . . $45,401,207
2005 . . . . . . . . . . . . $36,255,996
2004 . . . . . . . . . . . . $34,037,735
2003 . . . . . . . . . . . $33,776,470
2002 . . . . . . . . . . . $33,037,909
2001 . . . . . . . . . . . . $32,287,809
Tourism, Recreation, Cultural
And Convention Facilities Tax
Motor Vehicle Leasing Tax
Room Rental Tax
The tourism, recreation, cultural, and convention
facilities tax permits counties to impose any or all of the
following options: 1) Restaurant - A tax of up to 1 per-
cent on all sales of prepared foods and beverages sold
by a restaurant for immediate consumption. 2) Motor
Vehicle Leasing - A tax of up to 3 percent of all short-
term leases and rentals of motor vehicles not exceeding
30 days. There is an exception when the rental vehicle
is replacing a motor vehicle that is being repaired due
to a repair or insurance agreement. Counties that have
imposed the motor vehicle short-term lease and rental
tax may impose an additional 4 percent tax on these ve-
hicles; and 3) Room Rental - A tax of up to 0.50 of 1
percent (one-half of 1 percent) of the rent for every oc-
cupancy of a suite, room or rooms in motels, or similar
public accommodations. Only Salt Lake County imposes
this tax.
Utah Code Ann. §59-12-601
FY2013/$53,125,383
Tourism Tax Collected
(Net FY00 to FY13)
The amounts collected as shown in the shaded box are accrued revenues for the
tourism, recreation, cultural and convention facilities tax. The revenues shown
refl ect the actual amounts distributed during the fi scal year. The amounts differ
due to timing.
'DYLV&RXQW\
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6DOW/DNH&RXQW\
6HYLHU&RXQW\
8LQWDK&RXQW\
8WDK&RXQW\
:DVKLQJWRQ&RXQW\
:HEHU&RXQW\
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
6DOW/DNH&RXQW\
2000 . . . . . . . . . . . . $30,926,333
46
Motor Vehicle Rental Tax
Restaurant Tax
%HDYHU&RXQW\
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Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
The motor vehicle rental tax is a statewide 2.5
percent tax on all short-term leases and rentals of mo-
tor vehicles not exceeding 30 days. There is an excep-
tion for rental vehicles replacing a motor vehicle that
is being repaired due to a repair or insurance agree-
ment or a motor vehicle rented as a personal house-
hold goods moving van. It does not apply to rentals of
vehicles registered by gross vehicle weight in excess of
12,000 pounds.
Utah Code Ann. §59-12-1201
FY2013 Revenues/$4,720,995
Statewide Motor Vehicle
Rental Tax Collected
(Net FY02 - FY13)
2013. . . $4,720,995
2012. . . $4,523,964
2011. . .$4,387,174
2010. . .$4,148,663
2009. . . $3,741,538
2008 . . . $4,933,041
2007 . . . $4,030,263
2006 . . . $4,030,263
2005 . . . $3,320,001
2004 . . . $2,852,060
2003 . . . $3,149,264
2002 . . . $3,510,375
The amounts collected as shown in the shaded box are accrued revenues for the
statewide motor vehicle rental tax. The revenues shown refl ect the actual amounts
distributed during the fi scal year. The amounts shown differ due to timing.
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
6WDWHZLGH0RWRU9HKLFOH5HQWDO
47
Resort Communities Sales Tax
A municipality may levy the resort com-
munities tax if the transient rooms capacity of
the municipality is greater than or equal to 66
percent of its U.S. Census population.
Qualifying municipalities may impose a
tax of up to 1.1 percent of the purchase price on
a transaction subject to the state sales tax. An
additional 0.50 percent may be imposed upon
voter approval, or if a municipality imposed a
license fee or tax based on gross receipts un-
der Section 10-1-203 on or before Jan. 1, 1996.
Those municipalities may impose the addition-
al 0.50 percent with voter approval if they meet
certain statutory criteria. Retailers are liable
for the collection of the taxes. The Commission
collects and distributes the tax for local govern-
mental units.
Utah Code Ann. §59-12-401
FY2013 Revenues/$14,388,889
Resort Communities Tax Collected
(Net FY87 to FY13)
2013. . . . $14,388,889
2012. . . . $13,485,629
2011. . . .$12,691,911
2010. . . . $11,826,984
2009 . . . .$11,675,733
2008 . . . . .$12,926,792
2007 . . . . .$11,716,452
2006 . . . . .$10,609,677
2005 . . . . . .$9,707,339
2004 . . . . . .$7,882,031
2003 . . . . . .$7,684,387
2002 . . . . . .$7,324,859
2001 . . . . . .$7,328,211
2000 . . . . . .$6,764,468
1999 . . . . . .$6,432,922
1998 . . . . . .$4,585,539
1997 . . . . . .$3,975,439
1996 . . . . . .$3,399,742
1995 . . . . . .$3,183,933
1994 . . . . . .$2,506,247
1993 . . . . . .$2,586,230
1992 . . . . . .$2,183,536
1991. . . . . .$2,448,835
1990 . . . . . .$1,659,993
1989 . . . . .$1,243,240
1988. . . . . .$1,556,413
1987. . . . . . $1,366,658
The amounts collected as shown in the shaded box are accrued revenues for the resort communities tax. The
revenues shown by city refl ect the actual amounts distributed during the fi scal year. The amounts differ due to
timing.
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
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48
County Transient Room Tax
The transient room tax is applied
to the rental charge for any suite,
room or rooms in a motel, motor
court, inn, campground or similar
public accommodation for fewer
than 30 consecutive days. A tax of
up to 4.25 percent is in addition to
the applicable sales tax.
Utah Code Ann. §59-12-301
2013 Revenues/$39,226,854
County Transient Room Tax Collected
(Net FY93 to FY13)
2013 . . . $39,226,854
2012. . . $34,937,494
2011 . . . . $26,893,159
2010. . . . $24,007,496
2009 . . . . .$24,445,300
2008 . . . . .$28,652,137
2007 . . . . .$20,294,926
2006 . . . . .$18,105,021
2005 . . . . .$17,521,252
2004 . . . . .$18,486,394
2003 . . . . .$17,489,451
2002 . . . . .$18,486,394
2001 . . . . .$17,489,451
2000 . . . . .$16,342,724
1999 . . . . .$15,429,323
1998 . . . . .$15,036,402
1997 . . . . .$14,948,604
1996 . . . . .$13,364,431
1995 . . . . .$11,784,423
1994 . . . . .$10,826,711
1993 . . . . .$10,051,735
The amounts collected as shown in the shaded box are accrued revenues for the county transient room tax. The revenues
shown by county refl ect the actual amounts distributed during the fi scal year. The amounts differ due to timing.
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
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49
Municipality Transient
Room Sales Tax
A city or town may impose a munici-
pality transient room tax of up to 1 percent of
the rents charged for any suite, room or rooms
in a motel, hotel, motor court, inn, or similar
public accommodation for fewer than 30 days.
An additional transient room tax of 0.5 percent
may be imposed under certain circumstances to
repay bonded or other indebtedness.
Utah Code Ann. §59-12-352 and 353
FY2013 Revenues/$7,017,949
Municipality Transient Room Tax
(Net FY03 to FY13)
2013 . . . . . . . . . . . . . . . . . . .$7,017,949
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,142,971
2011 . . . . . . . . . . . . . . . . . . . . . . . $2,235,428
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . $1,994,816
2009 . . . . . . . . . . . . . . . . . . . . . $1,956,472
2008 . . . . . . . . . . . . . . . . . . . . . $1,721,717
2007 . . . . . . . . . . . . . . . . . . . . . . . $1,223,782
2006 . . . . . . . . . . . . . . . . . . . . . . . $1,089,242
2005 . . . . . . . . . . . . . . . . . . . . . . . $900,145
2004 . . . . . . . . . . . . . . . . . . . . . . $761,964
2003 . . . . . . . . . . . . . . . . . . .$679,520
The amounts collected as shown in the shaded box are accrued revenues for the
municipality transient room tax. The revenues shown by county refl ect the
actual amounts distributed during the fi scal year. The amounts differ due to timing.
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
(Continued on following page)
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50
Municipality Transient
Room Sales Tax
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
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(Continued from previous page)
51
Rural Hospital Sales Tax
Other Local Sales Tax Options
County of 2nd Class Airport, Highway & Transit
City or Town Option Sales Tax
Fixed Guideway sales Tax
Supplemental State Sales and Use Tax
Town Option Sales and Use Tax
A county of the fourth, fi fth or
sixth class (or city within those classes
of counties) may impose a sales tax of up
to 1 percent to fund rural county or city
health care facilities. Facilities located
in fourth (population 11,000 to 31,000),
fi f th (population 4,000 to 11,000) or sixth
class (population less than 4,000) that
are not in Standard Metropolitan Areas
are eligible to impose the tax. Daggett,
Garfi eld, Kane, and Uintah counties as
well as Beaver City impose this tax.
Utah Code Ann. §59-12-801
FY2013 Revenues/$2,951,635
Rural Hospital Tax Collected
(Net FY95 to FY11)
2013 . . . . . . . . $2,951,635
2012 . . . . $2,827,025
2011 . . . . . $2,404,742
2010. . . . . $5,670,159
2009 . . . . .$8,350,545
2008 . . . . .$8,758,427
2007 . . . . .$7,874,753
2006 . . . . .$6,443,531
2005 . . . . .$5,060,736
2004 . . . . .$4,172,178
2003 . . . . .$3,848,322
2002 . . . . .$3,950,749
2001 . . . . .$4,084,883
2000 . . . . .$1,503,135
1999 . . . . .$1,220,444
1998 . . . . .$1,159,936
1997 . . . . .$1,121,861
1996 . . . . .$988,227
1995 . . . . . . . .$742,985
The amounts collected as shown in the shaded box are accrued revenues for the Rural Hospital Tax. The revenues shown by
city refl ect the actual amounts distributed during the fi scal year. The amounts differ due to timing .
Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
To FY2013
% Change
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Community FY2011 FY2012 FY2013
FY2011
To FY2012
% Change
FY2012
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52
Taxable Purchases by Industries
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Industry (NAICS) CY2009 CY2010 CY2011 CY2012 Change
53
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Taxable Purchases by Select Cities
City CY2009 CY2010 CY2011 CY2012 % Change
- Continues on next page -
54
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Taxable Purchases by Select Cities
City CY2009 CY2010 CY2011 CY2012 % Change
- Continues from preceding page -
55
Taxable Purchases by Counties
County CY2009 CY2010 CY2011 CY2012 % Change
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56
Sales Tax Exemptions
57
- Continues on next page -
Utah law exempts certain purchases from the sales and use tax. The follow-
ing are sales tax exemptions by category and include the estimated state sales tax
amounts for fi scal year 2013. These estimates are based on the best information
available, however, in some cases, data is limited or unavailable.
See Utah Code Ann. §59-12-104
A. Economic Development Amount
1. Manufacturing machinery and equipment 3-year life. Includes
replacements, NAICS 518112, and energy co-generation facilities $110,000,000
2. Airline food $236,000
3. Airline parts and equipment sold by an aircraft manufacturer
(NAICS 336411 and 336412) for installation, repair or renovation
of an aircraft $534,000
4. Aerospace tools $845,000
5. Motion picture rentals and radio broadcast tapes $56,000
6. Machinery and equipment purchases used by non-live motion picture
and television programs, music videos, commercials or documentaries $207,000
7. Tangible personal property or products primarily used in farming,
including repair of off-road agricultural machinery $38,733,000
8. Sales of hay $9,588,000
9. Sales of aircraft manufactured in the state if title passes in Utah n/a*
10. Electricity sales to ski resorts for all lifts $104,000
11. Ski resort equipment $310,000
12. Steel mill non-durable equipment $311,000
13. Semi-conductor materials including TPP used in Research and
Development <$7,000,000
14. Renewable energy production facilities n/a*
15. Waste energy production facilities n/a*
16. Biomass energy production facilities n/a*
17. Media (fi lm, TV, video) machinery and equipment $294,000
18. Purchases of tangible personal property use in coal-to-liquids,
oil, shale and tar sands technology Research and Development
(July 1, 2006 to June 30, 2016) <$500,000
19. Telecommunications equipment, machinery or software with a
useful economic life of at least 1 year. $8,242,000
20. In-fl ight sales of tangible personal property or product transferred
electronically <$5,000
21. Web search portal $45,000
22. Transportation (taxicabs, public transit fares, intrastate transportation
to an employer’s employee)
1
$5,100,000
58
Sales Tax Exemptions
- Continues from preceding page -
B. Economic Effi ciency Amount
1. Motor and special fuels $248,392,000
2. Aviation fuel $28,496,000
3. Vending machine sales less than $1 of food or beverages $1,886,000
4. Coin operated laundromats (unassisted transactions only) $783,000
5. Coin operated car washing (unassisted transactions only) $736,000
6. Non-resident vehicles $2,142,000
7. Non-resident boats $87,000
8. Occassional sales $8,868,000
9. Tangible personal property trades $2,256,000
10. Exclusive sales of farm produce sold during the harvest season
by the producer $1,964,000
11. Containers, labels, casings $16,391,000
12. Property stored in the state for re-sale n/a*
13. Property brought in by a non-resident for use $2,350,000
14. Property purchased for re-sale or as an ingredient or component
part of manufactured products $31,514,000
15. Property upon which sales tax was paid to another state n/a*
16. Sales of transportation, interstate telephone, telegraph, or
fuel for use in compounding a taxable service $9,191,000
17. Personal property shipped out-of-state and incorporated into
real property $194,000
18. Coin operated amusement devices $967,000
19. 45 percent of new and 100 percent of used manufactured homes $1,176,000
20. Sales of natural gas, electricity, coal, fuel oil for industrial use $24,509,000
21. Pawnbroker repurchases or redemptions $1,927,000
22. Sales of property used in conducting business, if that property
was purchased outside of the state, fi rst used outside the state
and brought into the state n/a*
23. Sales of tangible personal property for maintenance, repair or
overhaul of aircraft not registered in Utah $287,000
- Continues on next page -
Sales Tax Exemptions
- Continues from preceding page -
C. Governmental Amount
1. State government purchases $20,778,000
2. Local government purchases $20,167,000
3. Admissions to college athletic events $1,584,000
4. Sales by state and local photocopies or copies of records $22,000
5. Sales by the Heber Creeper Railroad $4,000
6. Sales of construction material for Salt Lake International Airport n/a*
7. Sales to a public transit district n/a*
8. Textbooks for higher education $106,000
D. Social Service, Health, Charitable and Other Amount
1. Food stamps $7,079,000
2. WIC program food purchases $839,000
3. Meals served by schools, churches $660,000
4. Meals served by nursing homes and hospitals $637,000
5. Pollution control $5,000,000
6. Prescription drugs $58,675,000
7. Oxygen and stoma supplies $124,000
8. Religious or charitable sales greater than $1,000 $6,089,000
9. Religious or charitable purchases less than $1,000 $811,000
10. Newspaper sales or subscriptions $722,000
11. Sales or leases to authorized carriers $1,088,000
12. School and fund raising sales $141,000
13. Home medical equipment and prosthetic devices prescribed
or purchased by a medical facility $670,000
14. Sales by area aging services $1,000
15. Wind, geothermal, solar energy sales n/a*
16. Water in a pipe, conduit, ditch or reservoir n/a*
17. Currency or coinage which is legal tender in the U.S. n/a*
18. Gold, silver, platinum ingots, bars medallions n/a*
19. Prescribed prosthetic devices $3,686,000
20. Manufacturers’ rebates for new vehicles $733,000
21. Direct mail electronic databases $1,202,000
22. Municipal taxes or fees levied on purchaser for enhanced
level of municipal service $9,000
59
* n/a indicates data not available
1
Transportation was excluded from the tax base by HB52, 2006 General Legislative Session
This page intentionally left blank
60
Property Tax
Distribution of 2012 Property Taxes Charged
School Districts
54.49%
$1,418,691,406
Special Districts
13.07%
$340,454,475
Counties
18.12%
$471,822,618
Cities and Towns
14.29%
$372,190,700
In Utah, property taxes are levied at the
local level based on valuations set by county
assessors and - in the case of certain properties
- by the State Tax Commission. Counties col-
lect the taxes and distribute them to the indi-
vidual taxing entities.
The Tax Commission values centrally
assessed property, which includes mines, rail-
roads and utilities that cross county lines. All
monies collected from property tax are distrib-
uted to school districts, local government enti-
ties and special districts.
Real and Personal Property Taxes
Property tax rates are set by local enti-
ties, such as counties, cities, towns, school dis-
tricts and special taxing districts. A statewide
rate is also levied to help fi nance schools in
Utah. Those rates are applied against the tax-
able value of real and personal property, with
the exception of motor vehicles.
Motor Vehicle Fees
Utah motor vehicles - including most
boats, recreation vehicles and trailers - are
subject to a fee-in-lieu of the personal property
tax. Passenger vehicles are assessed using a
fee schedule based on the age of the vehicle.
Boats, trailers and recreational vehicles are
subject to fees based on age, length and other
factors.
61
Property Tax Values and Rates
State Valuations by Class of Property
With the exception of state-assessed
properties, county assessors value all taxable
real property, personal property and motor
vehicles which collectively are referred to as lo-
cally assessed property. The Property Tax Divi-
sion of the State Tax Commission values utili-
ties, mines and railroads, which are referred to
as centrally assessed property.
All taxable property in Utah is valued
at 100 percent of its fair market value, based
upon it location and status as of January 1, of
each year.
Fair market value less any exemptions
equals taxable value and is expressed as a per-
centage of fair market value. Taxable value is
the value against which the tax rate is applied
to compute taxes charged.
Currently, primary residential proper-
ties receive a 45 percent exemption. Primary
residential property is any dwelling used as a
person’s primary residence, including condo-
miniums, apartments and rental property, and
includes up to one acre of land. The taxable
value of all other properties, except some ag-
ricultural land, is assesssed at 100 percent of
fair market value.
Utah motor vehicles are charged a fee-
in-lieu of property taxes.
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Commercial
21.58%
Other Real
10.52%
Personal
5.95%
Motor Vehicles
5.97%
Natural Resources
5.13%
Utilities
5.99%
Primary Residential
44.87%
62
This chart shows the percent of taxes charged by class of property for 2012.
Property Taxes Charged
by Entity Group
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63
Property Taxes Charged By Class
- Continues on next page -
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Prior to 1930, the prop-
erty tax served as the major
source of revenue for both
state and local governmental
operations in Utah. Although
the property tax has become
progressively less important
in Utah fi nances, it still re-
mains the number one source
of revenue for most local
governments.
In some of the larger
cities, however, the prop-
erty tax is gradually being
replaced by the local sales
tax as the principal revenue
producer.
With the exception of
property exempted by the
State Constitution or federal
laws, all tangible property is
subject to the property tax.
After property is valued
for tax purposes either by
the State Tax Commission
or the local county assessor,
local governments using the
value establish the tax rate
to be applied to the property.
Thus, property taxes im-
posed on specifi c properties
are the result of these two
main elements:
1) the value that is placed
on the property for taxing
purposes, and
2) the combined tax rates
that are charged by the
various units of local govern-
ments empowered to levy the
tax.
(This information was obtained
from “State and Local Government
in Utah,” published by the Utah
Foundation, 1992)
=== Locally Assessed ===
64
Property Taxes Charged By Class
- Continued from previous page -
=== Centrally Assessed ===
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65
Centrally Assessed Property
Utah’s 25 Largest Centrally Assessed Companies
Largest Centrally Assessed Companies by County
The Property Tax Division of the State Tax
Commission is responsible for the valuation of
mines, utilites, airlines, telecommunications,
railroads and rail cars.
The market value of multi-state utilities is
determined by unit value. This aproach val-
ues all intra-state or interstate properties as a
unit. The value is allocated to the State of Utah
and then to the counties where the property is
located.
Properties of mining, gas and oil companies
are physically valued to arrive at fair market
value or by capitalizing net revenue.
Listed below are the 25 largest centrally
assessed companies for the 2012 assessment
year based on values established by the State
of Utah. The ranking of these property owners
is as of May 1, 2012 and the values may change
following an appeal.
1. Pacifi corp
2. Kennecott Utah Copper Corporation
3. Intermountain Power Agency
4. Ruby Pipeline, LLC
5. Questar Gas
6. Union Pacifi c Railroad
7. Kern River Gas Transmission Company
8. Kerr-McGee Oil and Gas Onshore, LP
9. Newfi eld Production Company
10. Firstwind - Milford Utah
11. Qwest Corporation (Century Link)
12. Anadarko Uintah Midstream LLC
13. Resolute Natural Resources
14. Questar Pipelines
15. Wolverine Gails and Oil Company, Utah
16. QEP Energy Company
17. Bill Barrett Corporation
18. Verizon Wireless
19. Deseret Generation and Transmission
20. El Paso E&P Company, LP
21. EOG Resources, Inc.
22. ConocoPhillips Company
23. Staker and Parson Companies
24. UNEV Pipeline, LLC
25. QEP Field Services Company (Gathering)
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66
Property Tax Relief
Tax Relief By County
The State of Utah and county govern-
ments provided $29.4 million in property tax
relief to 49,695 individuals in 2012. Tax relief
is administered by county governments. The
state funds property tax relief through the
circuit breaker program and county govern-
ments provide tax relief to the indigent, blind
and veterans. Brief summaries of the property
tax relief categories are discussed on this page.
Details are found in Utah Code Annotated §59-
2-1104 to 1109 and §59-2-1202 to 1220.
Blind
For 2012 up to $11,500 taxable value of
real and/or personal property owned by blind
persons, their unmarried widow or widower,
surviving spouse or minor orphan is exempt
from property taxation.
Indigent
An indigent abatement may be granted
in an amount of 50 percent of the taxes levied,
not to exceed $886 for 2012. An indigent defer-
ral may also be granted for all or any portion of
the tax; however, interest accrues.
Veterans
An exemption of up to $237,949 in tax-
able value on a primary residence or non-busi-
ness personal property may be granted to a
disabled veteran, to the unmarried widow or
widower of the veteran or to minor orphans. An
exemption may also be granted to the widow,
widower or minor orphan of a veteran who was
killed in action or died in the line of duty.
Low-Income Elderly
Elderly and low income or widowed
homeowners and mobile home owners may ap-
ply through the county for Circuit Breaker re-
lief of up to $886 for 2012. Elderly, low income
renters may also be eligible and may apply for
relief to the State Tax Commission.
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Blind
$191,672 - 0.65%
Circuit Breaker
$13,886,896 - 47.25%
Indigent
$1,465,559 - 4.99%
Veterans
$13,845,759- 47.11%
67
68
This page intentionally left blank
Other Taxes and Fees
Cigarette and Tobacco Taxes
Utah imposes a tax of $1.70 per package of 20 cigarettes and $2.125 per package of 25
cigarettes. An additional 35 cents per package of 20 cigarettes and 43.75 cents per package of 25
cigarettes is charged if cigarettes are from a non-participating manufacturer. The tax is gener-
ally paid by wholesalers and distributors who apply tax stamps to packages of cigarettes as pay-
ment of the tax. Cigarettes are also subject to regular state and local sales taxes.
All purchases of cigarettes and tobacco products over the Internet are subject to Utah
state cigarette tax and sales tax. Cigarettes may only be purchases over the Internet by licensed
individuals. Internet retailers are required to provide sales data to the Tax Commission detailing
shipments of cigarettes and tobacco products to Utah consumers. Tobacco products, other than
cigarettes, are taxed at 86 percent of the manufacturer’s sales price delivered to Utah. Moist
snuff is taxed at $1.83 per ounce.
Cigarette licenses and fees are also included in the revenue total in this category.
(59-14-101 to 59-14-611)
FY2013 Revenue - $112,458,465 (General Fund only. Does not include amounts distributed to restricted funds.)
Highway Use Tax/Proportional Registration (41-1a-301)
Proportionally registered vehicles based in a state other than Utah are subject to a high-
way use tax rather than county vehicle registration fees. The tax is based on registered weight.
FY2013 Revenue - $11,158,168 (Transportation Fund)
Insurance Premium Tax (59-9-101 to 59-9-105)
The Insurance Premium tax is:
- 2.25 percent of net premiums
- 1.0 to 4.25 percent of workers compensation insurance as determined by the State
Labor Commission
- 2.26 percent of motor vehicle insurance premiums for motor vehicle liability, unin-
sured motorists and personal injury protection.
- 0.45 percent of title insurance premiums
- An additional .08 percent of life insurance premiums above $100,000
FY2013 Revenue - $89,591,912 (General Fund only. Does not include amounts distributed to restricted funds.)
The following taxes and fees are among the major revenue sources collected and distribut-
ed by the Utah State Tax Commission. Additional revenue information on these and other taxes
and fees is found on pages 17 to 26 of this report.
Aviation Fuel Tax (59-13-401 to 59-13-403)
Aviation fuel is fuel used exclusively for the operation of aircraft. The aviation fuel tax is 9
cents per gallon for non-federally certifi cated air carriers, 4 cents per gallon for federally certifi -
cated air carriers not purchased at an international airport and 2.5 cents per gallon if purchased
at an international airport.
FY2013 Revenue - $6,335,884 (Transportation Fund)
Beer Tax (59-15-101 to 59-15-109)
The beer tax is $12.80 per 31 gallon barrel of beer. Bottled and canned beer are converted
to barrel equivalents on returns. The Department of Alcoholic Beverage Control licenses distrib-
utors and local jurisdictions issue retail licenses.
FY2013 Revenue - $8,422,487 (General Fund)
69
Mining Severance Tax (59-5-201 to 59-5-215)
The mining severance tax is 2.6 percent fo the taxable value of metals or metalliferous minerals.
The taxable value varies according to the type of mineral. This tax applies to extractors of gold,
silver, copper, lead, iron, zinc, tungsten, uranium, vanadium and other metalliferous minerals.
FY2013 Revenue - $16,940,927 (General Fund)
Motor Fuel Tax (59-13-101 to 59-13-212)
Motor fuel is gasoline or gasohol used for any purpose other than the operation of aircraft.
The motor fuel tax in Utah is 24.5 cents per gallon. Importers, refi ners and distributors are liable
to report this tax. Refunds for off-highway agricultural use can be claimed as credit on Utah indi-
vidual income or corporation franchise or income tax returns.
FY2013 Revenue - $256,867,039 (Transportation Fund. Does not include amounts distributed to restricted funds.).
Motor Vehicle Registration Tax (41-1a-1201 to 41-1a-1224)
Fees are applicable for every motor vehicle, combination of vehicles, trailer, semi-trailer or
vintage vehicle operated on public roads or highways. These fees apply to all motor vehicles un-
less they are specifi cally exempt.
FY2013 Revenue - $37,307,029 (Transportation Fund, Class B and C Road Funds
Does not include amounts distributed to restricted funds)
Oil and Gas Conservation Fee (40-6-14 to 40-6-14.5)
The oil and gas conservation fee is 0.2 percent of the value at the well of oil, gas and natu-
ral gas liquids produced and saved, sold or transported from the production sites. It applies to all
interest owners in the well.
FY2013 Revenue - $5,870,532 (Restricted Fund)
Oil and Gas Severance Tax (59-5-101 to 59-5-120)
The oil and gas severance tax applies to all interest owners of oil, gas and natural gas
liquids. It is based on the value at the well of oil and gas produced and saved, sold or transported
from the fi eld where it is produced. The tax rate ranges from 3 to 5 percent based on the value of
the oil or gas and 4 percent for natural gas liquids.
FY2013 Revenue - $53,164,253 (General Fund)
Proportional Registration Fee (41-1a-301)
Any resident or non-resident may proportionally register and license commercial vehicles.
Vehicles that exclusively travel in Utah are not included in any proportional registration applica-
tion. The formula for the fee is based on in-state and total fl eet mileage.
FY2013 Revenue - $15,882,183 (Transportation Fund)
Special Fuel Tax (59-13-301 to 59-13-322)
Special fuel is any fuel used to operate a motor vehicle on Utah public highways that is not
taxed under the category of motor or aviation fuel. Diesel fuel is an example. The special fuel tax
is 24.5 cents per gallon, the same as motor fuel. Compressed natural gas and liquifi ed natural
gas are taxed at a reduced rate of 8.5 cents per gasoline gallon equivalent. Propane and electric-
ity are exempt from the special fuel tax.
FY2013 Revenue - $101,360,289 (Transportation Fund)
70
Legislative Summary
HB 34 Special Group License Plate
Amendments
– Rep. Val Peterson (Ef-
fective Nov. 1, 2013) Authorizes an In God We
Trust special group license plate for an individ-
ual who wants to recognize and honor Ameri-
can freedoms and values.
HB 54 Property Tax and Appraiser
Amendments
– Rep. Gage Froerer (Effec-
tive April 14, 2013) Establishes requirements
for county property tax appeal hearing offi cers;
beginning 01/01/14, provides that a county
BOE may only allow an individual to serve as a
hearing offi cer if the individual has completed
a course the commission has developed or ap-
proved relative to training in property valua-
tion and administrative law; allows a person to
present evidence or provide property tax infor-
mation on behalf of another person in a prop-
erty tax appeal under certain circumstances;
provides that in reviewing evidence, a county
BOE and the commission are to consider and
weigh: (1) the accuracy, reliability and compa-
rability of the evidence presented by the owner
or county, (2) if submitted, the sales price of
relevant property that was under contract for
sale as of the lien date but sold after the lien
date, (3) if submitted, the sales offering price of
property that was offered for sale as of the lien
date but did not sell, including considering and
weighing the amount of time and the manner
in which the property was offered for sale, and
(4) if submitted, other evidence that is relevant
to determining the FMV of the property; es-
tablishes that only a person who is a licensed
appraiser may present an opinion of value and
only a person who is not a licensed appraiser
may present a price estimate; addresses con-
tingent fees for both a licensed appraiser and a
person providing a price estimate.
HB 67 Property Tax Revisions – Rep.
Gage Froerer (Effective Jan. 1, 2014) Applies
the 45 percent primary residential exemp-
tion to household furnishings, furniture and
equipment owned by the owner of the dwelling
unit and used exclusively within a dwelling
unit that is the primary residence of a ten-
ant; increases the property tax exemption for
personal property to $10,000; allows a county
assessor to require the taxpayer to fi le a signed
statement as described in Section 59-2-306 the
fi r st calendar year the taxpayer qualifi es for
the personal property exemption and provides
that after the fi rst year, the signed statement
may only require the taxpayer to certify, under
penalty of perjury, that the taxpayer qualifi es
for the personal property exemption.
HB 74 Property Tax Modifi cations
– Rep. John Mathis (Retrospective to Jan.
1, 2013) Defi nes “split estate mineral rights
owner” and provides that mineral extraction
by a split estate mineral rights owner does not
trigger the rollback tax on the associated land
that has become ineligible for FAA assessment;
in addition, provides that land that became in-
eligible for FAA assessment only as a result of
a split estate mineral rights owner exercising
the right to extract a mineral, qualifi es for FAA
assessment the fi rst year the land resumes be-
ing actively devoted to agricultural use.
HB 79 Motor Vehicle Registration
and Insurance Amendments
– Rep.
Stephen Handy (Effective July 1, 2013) Pro-
vides that a new registration card issued by
the Tax Commission on or after November 1,
2013 for vehicles other than vehicles registered
under Section 41-1a-301, may not display the
address of the owner or the lessee; provides
that a card issued by an insurance company as
evidence of owner’s or operator’s security on or
after July 1, 2014, may not display the owner’s
or operator’s address.
House Bills
71
HB 79 Motor Vehicle Registration
and Insurance Amendments
– Rep.
Stephen Handy (Effective July 1, 2013) Pro-
vides that a new registration card issued by
the Tax Commission on or after November 1,
2013 for vehicles other than vehicles registered
under Section 41-1a-301, may not display the
address of the owner or the lessee; provides
that a card issued by an insurance company as
evidence of owner’s or operator’s security on or
after July 1, 2014, may not display the owner’s
or operator’s address.
HB 86 Property Tax Rate Certifi ca-
tion Date
– Rep. Merrill Nelson (Retro-
spective to Jan. 1, 2013) Provides that if the
governing body of a taxing entity does not
receive the taxing entity’s certifi ed tax rate
at least 7 days prior to June 22, the govern-
ing body shall, within 14 days after receiving
the certifi ed tax rate from the county auditor,
adopt a proposed or fi nal tax rate.
HB 96 Cleaner Burning Fuels Tax
Credits Amendments and Related
Funding
– Rep. Jack Draxler (Effective
Jan. 1, 2014) For the 2014 calendar year, modi-
fi e s eligibility requirements to claim tax credits
for cleaner burning fuels; allows the corporate
credit to be taken against a gross receipts tax
liability under Title 59, Chapter 8; requires
transfers from the General Fund into the Edu-
cation Fund in the amount by which the tax
credit claimed exceeds $500,000.
HB 112 Assessment of Property if
Threatened or Endangered Species
is Present
– Rep. Michael Noel (Effective
Jan. 1, 2014) Requires a county assessor to
consider in the county assessor’s determination
of the fair market value of property whether a
threatened or endangered species is present.
HB 145 Youth Organization Re-
stricted Accounts and Income Tax
Contributions – Rep. Steve Eliason
(Retrospective to January 1, 2013) Creates the
Youth Development Organization Restricted
Account and the Youth Character Organization
Restricted Account; provides for the distribu-
tion of amounts deposited into the accounts;
enacts an income tax contribution for a youth
development organization and for a youth char-
acter organization; provides that if the sum of
the collections from the contributions do not
meet a threshold amount, the Tax Commission
shall remove the designation for the contribu-
tions from the individual income tax return.
HB 210 Motor Vehicle Emission
Amendments
– Rep. Edward Redd (Effec-
tive March 26, 2013) Provides that if a county
legislative body enacts, changes, or repeals the
local emissions compliance fee, the enactment,
change, or repeal takes effect on January 1 (in-
stead of July 1) if the Tax Commission receives
notice prior to Oct. 1 (instead of April 1).
HB 291 Motor Vehicle Safety Inspection
Amendments
– Rep. Jeremy Peterson (Ef-
fective May 14, 2013) Changes the amount of
time that a motor vehicle has to receive and
pass a safety inspection from 6 to 11 months,
if required in the current year, for the motor
vehicle to be eligible for a temporary permit is-
sued by a licensed motor vehicle dealer.
HB 300 Retention of Sales and Use
Tax Collections by Certain Remote
Sellers
– Rep. Steve Eliason (Effective Jan.
1, 2014) Authorizes remote sellers who volun-
tarily collect a sales and use tax to retain 18%
of the sales and use taxes the remote sellers
would otherwise remit to the Tax Commission;
provides that a seller that takes the 18% seller
discount may not take the 1.31% seller dis-
count; allows the commission to require a seller
that takes this discount to fi le electronically;
prohibits a seller from taking the 18 percent
seller discount if Congress or the U.S. Supreme
Court requires the seller to collect and remit
sales taxes.
72
HB 325 Military Installation Develop-
ment Authority Amendments
– Rep.
Brad Dee (Effective July 1, 2013) Provides
that if a military installation development
authority (MIDA) levies a resort communities
tax, the actual number of permanent residents
within the project area shall be used as part
of the tax determination, and provides that
the resort communities tax may be imposed if
there are no permanent residents; provides for
payment by a consumer of a municipal energy
tax directly to the authority, if the consumer’s
energy supplier is not required under federal
law to collect the tax; allows a MIDA to levy a
MIDA energy tax on an energy supplier within
a project area based on the delivered value of
the energy; allows an energy supplier to re-
cover an amount equal to its MIDA energy tax
from its customers; provides that a MIDA en-
ergy tax is offset by any municipal energy tax
paid by that customer on the same delivered
value.
HB 379 Rental Company Registra-
tion Amendments
– Rep. Daniel McCay
(Effective May 14, 2013) Authorizes an alterna-
tive special registration card and registration
decals for license plates to be issued for a motor
vehicle that is owned by a rental company and
maintained in the rental company’s rental
fl e et; provides that the alternative special
registration card and registration decals for
license plates are valid for the life of the motor
vehicle while the motor vehicle is maintained
in the rental fl eet; requires an owner of a mo-
tor vehicle that receives the alternative special
registration card and registration decals for
license plates issued to renew the registration
and comply with all the prerequisites for reg-
istration or registration renewal; and provides
that if the registration renewal requirements
are not complied with, the registration is sus-
pended or revoked.
HJR 4 Joint Resolution on Remote
Sales –
Rep. Steve Eliason (Effective May
14, 2013) Urges the U.S. Congress to pass S.
336 and H.R. 684, known as the Marketplace
Fairness Act, which would permit states that
enact certain tax simplifi cation and uniformity
standards to require retailers whose sales to
consumers in the state exceed a minimum
threshold to collect applicable sales taxes on
sales in the state.
Senate Bills
SB 1 Public Education Base Budget
– Sen. Howard Stephenson (Effective July
1, 2013) Sets the estimated minimum basic tax
rate at .001691 for fi scal year 2013-14; this is
an estimated rate for 2013-14 that will bring in
$294,092,000 in revenues, an increase from the
$289,021,900 for 2012-13.
SB 31 Special Needs Adoption Cred-
it – Sen. Wayne Harper (Retrospective to
Jan. 1, 2013) Modifi es the refundable income
tax credit for the adoption of a child who has
a special need to allow the credit for an adop-
tion for which the adoption order is issued on
or after 1/1/13; provides that the order must
be issued by a court of competent jurisdiction
of this state or another state, or by a foreign
country; if the adoption order is issued by a
court of competent jurisdiction in this state or
another state, the claimant must be a resident
of this state on the date the order is issued; for
a foreign adoption, the adoption must be reg-
istered in this state; provides that the credit
may not exceed $1,000 per return.
SB 33 Sales and Use Tax Revisions
– Sen. Howard Stephenson (Effective July 1,
2013) Enacts a sales and use tax exemption for
sales of tangible personal property used in the
preparation of prepared food if the ownership
of the seller and the ownership of the purchas-
er are identical, and the seller or purchaser
paid a sales tax on that tangible personal prop-
erty prior to making the sale; enacts a sales
and use tax exemption for purchases of
(Continues on next page)
73
SB 33 Sales and Use Tax Revisions
(Continues from previous page)
machinery and equipment if: (1) the purchaser
is an establishment described in NAICS Sub
sector 713, (2) the machinery or equipment has
an economic life of 3 or more years and is used
by a person who pays admission or user fees to
the purchaser of the machinery or equipment,
and (3) 51% or more of the purchaser’s sales
revenue for the previous calendar quarter is
admission or user fees subject to sales tax.
SB 35 Property Taxation of Business
Personal Property
– Sen. Wayne Harper
(Effective Jan. 1, 2014) Increases the property
tax exemption for personal property to $10,000
aggregate FMV per county; allows a county
assessor to require the taxpayer to fi le a signed
statement as described in Section 59-2-306 the
fi r st calendar year the taxpayer qualifi es for
the personal property exemption and provides
that after the fi rst year, the taxpayer is only re-
quired to certify, under penalty of perjury, that
the taxpayer qualifi es for the exemption.
SB 36 Cigarette and Tobacco Tax and Li-
censing
– Sen. Wayne Harper (Effective July
1, 2013) Provides that a cigarette produced
from a cigarette rolling machine shall be taxed
at the same rate as a cigarette; provides that
the tax on a cigarette produced from a cigarette
rolling machine shall be paid on a return fi led
quarterly with the commission; provides for
a credit or refund of tax for a cigarette rolling
machine operator if a tobacco tax has already
been paid on product placed into the cigarette
rolling machine; enacts the Cigarette Rolling
Machine Operators Act, including: requiring
the certifi cation and renewal of certifi cation of
cigarette rolling machine operators by the Tax
Commission, providing procedures and require-
ments for a cigarette rolling machine operator
to obtain certifi cation or renewal of certifi ca-
tion, requiring a cigarette rolling machine op-
erator to make certain reports to the Tax Com-
mission, requiring a cigarette rolling machine
operator to maintain a secure meter on a ciga-
rette rolling machine, addressing the denial or
revocation of certifi cation of a cigarette rolling
machine operator, and addressing appeals.
SB 48 Special Group License Plate Revi-
sions
– Sen. Peter Knudson (Effective May
14, 2013) Repeals the provision that prohibits
the Motor Vehicle Division from issuing a type
of support special group license plate to a new
applicant beginning on January 1 after a three
consecutive year period for which that type of
support special group license plate had fewer
than 500 license plates issued each year, if the
support special group license plate type: (1)
was issued prior to January 1, 2012, and (2)
had fewer than 500 license plates issued each
year for a three consecutive year time period
that begins on July 1.
SB 58 Amendments to Sales and Use
Tax
– Sen. Wayne Harper (Effective July 1,
2013) Addresses the disposition of state and
local sales tax revenues collected as a result of
Congressional or U.S. Supreme Court action
requiring current non-nexus sellers to collect
sales tax; provides that if one of the above-de-
scribed actions occurs, the report the commis-
sion is required to make to the Revenue and
Taxation Interim Committee shall state the
amount of revenue collected at the time of the
report, and estimate the state and local sales
tax rate reduction that would offset the rev-
enue estimated to be collected for the current
and next fi scal year; requires the Division of
Finance to separately account for the state and
local sales tax revenue collected as a result of
the Congressional or U.S. Supreme Court ac-
tion.
SB 84 Sales and Use Tax Exemption
for Short-Term Lodging Consum-
ables
– Sen. Stuart Adams (Effective July 1,
2013) Defi nes short-term lodging consumables
and provides a sales and use tax exemption for
the purchase of short-term lodging consum-
ables by a business that provides accommoda-
tions and services.
74
SB 124 Sales and Use Tax Exemp-
tions for Database Access
– Sen.
Wayne Harper (Effective July 1, 2013) Enacts
a sales and use tax exemption for amounts paid
or charged to access a database if the primary
purpose for accessing the database is to view or
retrieve data from the database; defi nes digital
audiowork, digital audio-visual work, and digi-
tal book, and clarifi es that the sales tax exemp-
tion does not include amounts paid or charged
for a digital audiowork, digital audio-visual
work, or digital book.
SB 141 Education Contribution on
Tax Returns
– Sen. Daniel Thatcher
(Retrospective to Jan. 1, 2013) Provides an
individual income tax contribution for the
Invest More for Education Account; creates a
restricted account known as the Invest More
for Education Account, including providing
funding for the account, and providing that the
Legislature may appropriate money from the
account for the support of the public education
system; provides that if the collections from the
contribution do not meet a threshold amount,
the Tax Commission shall remove the designa-
tion for the contribution from the individual
income tax return.
SB 171 Sales and Use Tax Exemp-
tion for Electronic Financial Pay-
ment Services
– Sen. Howard Stephen-
son (Effective July 1, 2013) Enacts a sales and
use tax exemption for the purchase or lease of
machinery and equipment, or normal operating
repair or replacement parts, with a 3-year eco-
nomic life that are used in the operation of an
electronic fi nancial payment service; defi nes an
electronic fi nancial service as an establishment
within NAICS Code 522320.
SB 193 Vehicle Registration Amend-
ments – Sen. Scott Jenkins (Effective May
14, 2013) Requires the Motor Vehicle Division
to provide a credit against the fees and taxes
charged to a person registering a street-legal
all-terrain vehicle if the street-legal all-ter-
rain vehicle was registered as an off-highway
vehicle upon being purchased from a licensed
dealer, and not more than 30 days have passed
since the division issued the off-highway ve-
hicle registration.
SB 196 License Plate Reader
Amendments
– Sen. Scott Weiler (Ef-
fective May 14, 2013) Specifi es circumstances
when an automatic license plate reader sys-
tem may be used by a person or governmental
entity; provides that captured plate data is a
protected record under the Government Re-
cords Access and Management Act; provides
that captured plate data may only be shared
for specifi ed purposes, may only be preserved
for 9 months, and may only be disclosed pursu-
ant to a disclosure order or a warrant; prohib-
its a person from selling captured plate data
for any purpose; establishes procedures for a
governmental entity to submit a preservation
request for captured plate data; and provides a
penalty for violating the provisions relating to
automatic license plate reader systems.
SB 222 Transportation Amendments
– Sen. Wayne Harper (Effective May 14,
2013) Provides that beginning on the date the
Motor Vehicle Division has implement the divi-
sion’s GenTax system, the requirement to pass
a safety inspection annually or obtain a valid
annual federal inspection only applies to a mo-
tor vehicle with a gross vehicle weight rating of
10,001 pounds or more if the motor vehicle is a
commercial vehicle.
SB 225 Immigration Trigger Dates
– Sen. Curtis Bramble (Effective May 14,
2013) Extends the program start date under
the Utah Immigration Accountability and
Enforcement Act from July 1, 2013 to July 1,
2015; and extends the start date for the Utah
Pilot Sponsored Resident Immigrant Program
Act from July 1, 2013 to July 1, 2015.
75
SB 238 Property Tax Amendments
– Sen. Curtis Bramble (Effective Jan. 1,
2014) Modifi es the property tax exemption for
property owned by a nonprofi t entity used ex-
clusively for religious, charitable, or education-
al purposes to provide that a nonprofi t entity
includes an entity if the: (1) entity is treated
as a disregarded entity for federal income tax
purposes; (2) entity is wholly owned by, and
controlled under the direction of, a nonprofi t
entity; and (3) net earnings and profi ts of the
entity irrevocably inure to the benefi t of a non-
profi t entity; provides that a county legislative
body may reduce the value of a property, or is-
sue a refund of property taxes paid, on a prop-
erty for which an appeal has not been fi led if:
(1) the county BOE, the commission, or a court
reduces the value of the property, (2) the prop-
erty is assessed in the next calendar year at a
value that is at least 5 times greater than the
value established at the time of the valuation
reduction, and (3) the county legislative body
determines that the assessed value exceeds fair
market value.
SB 247 Amendments to Revenue and
Taxation – Sen. Wayne Harper (Effective
July 1, 2013) (Effective July 1, 2013) repeals
Articles III, IV and IX of the Multistate Tax
Compact; repeals Utah’s membership in the
MTC effective June 30, 2014, and on July 1,
2014, allows Utah to participate in the MTC
audit and nexus programs.
SB 249 Salvage and Nonrepairable Ve-
hicle Amendments – Sen. Stephen Urqu-
hart (Effective May 14, 2013) Provides that a
vehicle that has been issued a nonrepairable
certifi cate may not be registered; requires an
operator of a motor vehicle auction, for a ve-
hicle with a salvage certifi cate purchased at a
motor vehicle auction, to electronically apply
for a salvage certifi cate of title and provide evi-
dence of compliance with certain requirements;
provides that a vehicle sold at or through a mo-
tor vehicle auction to an out-of-state purchaser
with a nonrepairable or salvage certifi cate
may not be certifi cated in Utah until the ve-
hicle has been certifi cated out-of-state; prohib-
its a person who has been convicted of any law
relating to motor vehicle commerce or motor
vehicle fraud from purchasing a vehicle with a
salvage or nonrepairable certifi cate; provides
that a person or purchaser who is not licensed
as a salvage vehicle buyer: (1) may not bid on
or purchase more than fi ve salvage vehicles
with a nonrepairable or salvage certifi cate in
any 12-month period, (2) may not offer for sale,
sell, or exchange more than two vehicles with
a salvage certifi cate in any 12-month period
to a person not licensed as a salvage vehicle
buyer or crusher, or (3) may not offer for sale,
sell, or exchange a vehicle with a nonrepairable
certifi cate to a person not licensed as a salvage
vehicle buyer or a crusher; provides penalties
for the knowing or intentional concealment, re-
moval, destruction, or alteration of a disclosure
statement or of a branded certifi cate of title;
establishes a private cause of action for owners
who violate the requirement to disclose that a
vehicle is a salvage vehicle.
SB 250 Sales and Use Tax Exemp-
tion for Sales of a Fuel Cell – Sen.
Ralph Okerlund (Effective April 1, 2013)
Defi nes “fuel cell” and provides a sales and use
tax exemption for sales of a fuel cell.
SB 269 Property Tax Revisions – Sen.
John Valentine (Effective May 5, 2013) Au-
thorizes a taxing entity to levy a property tax
that exceeds a maximum levy if the tax rate
the taxing entity imposes is at or below the
taxing entity’s certifi ed tax rate.
76
The following Tax Commission employees
prepared information for this annual report:
Leslee Katayama
Eric Cropper
jacoba larsen
Economic and Statistical Unit
Scott Stevens
Chief Financial Officer
Julie Alsop
Budget and Planning manager
Staff members
Property Tax Division
Lynn Solarcyzk
Director of legislative and
Government Affairs
Charlie Roberts
Editor and
Public Information Officer
Please direct any comments or questions to
Charlie Roberts at charlie@utah.gov or 801 297-3910
Utah State Tax Commission
210 North 1950 West
Salt Lake City, UT 84134
1 800 662-4335 or 801 297-2200
www.tax.utah.gov
