59-4-101 - Tax basis -- Exceptions -- Assessment and collection.
59-4-101. Tax basis -- Exceptions -- Assessment and collection.
(1) (a) Except as provided in Subsections (1)(b) and (c), a tax is imposed on thepossession or other beneficial use enjoyed by any person of any real or personal property whichfor any reason is exempt from taxation, if that property is used in connection with a businessconducted for profit.
(b) Any interest remaining in the state in state lands after subtracting amounts paid ordue in part payment of the purchase price as provided in Subsection 59-2-1103(2)(b)(i) under acontract of sale is subject to taxation under this chapter regardless of whether the property is usedin connection with a business conducted for profit.
(c) The tax imposed under Subsection (1)(a) does not apply to property exempt fromtaxation under Section 59-2-1114.
(2) The tax imposed under this chapter is the same amount that the ad valorem propertytax would be if the possessor or user were the owner of the property. The amount of anypayments which are made in lieu of taxes is credited against the tax imposed on the beneficialuse of property owned by the federal government.
(3) A tax is not imposed under this chapter on the following:
(a) the use of property which is a concession in, or relative to, the use of a public airport,park, fairground, or similar property which is available as a matter of right to the use of thegeneral public;
(b) the use or possession of property by a religious, educational, or charitableorganization;
(c) the use or possession of property if the revenue generated by the possessor or user ofthe property through its possession or use of the property inures only to the benefit of a religious,educational, or charitable organization and not to the benefit of any other person;
(d) the possession or other beneficial use of public land occupied under the terms of anagricultural lease or permit issued by the United States or this state;
(e) the use or possession of any lease, permit, or easement unless the lease, permit, oreasement entitles the lessee or permittee to exclusive possession of the premises to which thelease, permit, or easement relates. Every lessee, permittee, or other holder of a right to remove orextract the mineral covered by the holder's lease, right, permit, or easement except from brines ofthe Great Salt Lake, is considered to be in possession of the premises, notwithstanding the factthat other parties may have a similar right to remove or extract another mineral from the samelands or estates;
(f) the use or possession of property by a public agency, as defined in Section 11-13-103,to the extent that the ownership interest of the public agency in that property is subject to a fee inlieu of ad valorem property tax under Section 11-13-302; or
(g) the possession or beneficial use of public property as a tollway by a private entitythrough a tollway development agreement as defined in Section 72-6-202.
(4) A tax imposed under this chapter is assessed to the possessors or users of the propertyon the same forms, and collected and distributed at the same time and in the same manner, astaxes assessed owners, possessors, or other claimants of property which is subject to ad valoremproperty taxation. The tax is not a lien against the property, and no tax-exempt property may beattached, encumbered, sold, or otherwise affected for the collection of the tax.
Amended by Chapter 36, 2006 General Session