Tax Payments with Gold

47
51-9-306
51-9-307
59-1-403
59-5-202
59-5-203
59-5-207
59-5-215
59-5-306
65A-6-4
65A-17-306
67-3-23
67-4-19
0
Tax Payments with Gold
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ken Ivory
Senate Sponsor: Ann Millner
LONG TITLE
General Description:
This bill addresses tax payments.
Highlighted Provisions:
This bill:
allows certain mine owners and operators to use gold to pay mining severance taxes;
for specified years, provides a nonrefundable tax credit for a mine owner or operator who
uses gold to pay mining severance taxes; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
51-9-306
Effective
01/01/28
, as last amended by Laws of Utah 2024, Chapter 25
51-9-307
Effective
01/01/28
, as last amended by Laws of Utah 2024, Chapter 25
59-1-403
Effective
01/01/28
Partially Repealed
07/01/29
, as last amended by Laws of
Utah 2025, Chapters 182, 323, 400, and 498
59-5-202
Effective
01/01/28
, as last amended by Laws of Utah 2024, Chapter 25
59-5-203
Effective
01/01/28
, as last amended by Laws of Utah 2025, Chapter 151
59-5-207
Effective
01/01/28
, as last amended by Laws of Utah 2024, Chapter 25
59-5-215
Effective
01/01/28
, as last amended by Laws of Utah 2024, Chapter 25
65A-6-4
Effective
01/01/28
, as last amended by Laws of Utah 2025, Chapter 151
65A-17-306
Effective
01/01/28
, as enacted by Laws of Utah 2024, Chapter 25
67-4-19
Effective
01/01/28
, as last amended by Laws of Utah 2025, Chapter 186
ENACTS:
59-5-306
Effective
01/01/28
, Utah Code Annotated 1953
67-3-23
Effective
01/01/28
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
51-9-306
is amended to read:
51-9-306
Effective
01/01/28
. Deposit of certain severance tax revenue for
specified state agencies.
(1)
As used in this section:
(a)
"Aggregate annual revenue" means the aggregate annual revenue collected in a fiscal
year from the taxes imposed under Title 59, Chapter 5, Severance Tax on Oil, Gas,
and Mining, after subtracting the amounts required to be distributed under Sections
51-9-305
,
59-5-116
, and
59-5-119
and under Subsection
59-5-202
(5)(c)
59-2-202(6)(c)
.
(b)
"Aggregate annual mining revenue" means the aggregate annual revenue collected in
a fiscal year from taxes imposed under Title 59, Chapter 5, Part 2, Mining Severance
Tax, after subtracting the amounts required to be distributed under Section
51-9-305

and under Subsection
59-5-202(5)(c)
59-5-202(6)(c)
.
(c)
"Aggregate annual oil and gas revenue" means the aggregate annual revenue
collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Part 1, Oil
and Gas Severance Tax, after subtracting the amounts required to be distributed
under Sections
51-9-305
,
59-5-116
, and
59-5-119
.
(d)
"Average aggregate annual revenue" means the three-year rolling average of the
aggregate annual revenue collected in a fiscal year from the taxes imposed under
Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining:
(i)
after subtracting the amounts required to be distributed under Sections
51-9-305
,
59-5-116
, and
59-5-119
and under Subsection
59-5-202(5)(c)
59-5-202(6)(c)
; and
(ii)
ending in the fiscal year immediately preceding the fiscal year of a deposit
required by this section.
(e)
"Average aggregate annual mining revenue" means the three-year rolling average of
the aggregate annual revenue collected in a fiscal year from the taxes imposed under
Title 59, Chapter 5, Part 2, Mining Severance Tax:
(i)
after subtracting the amounts required to be distributed under Section
51-9-305

and under Subsection
59-5-202
(5)(c)
59-5-202(6)(c)
; and
(ii)
ending in the fiscal year immediately preceding the fiscal year of a deposit
required by this section.
(f)
"Average aggregate annual oil and gas revenue" means the three-year rolling average
of the aggregate annual revenue collected in a fiscal year from the taxes imposed
under Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax:
(i)
after subtracting the amounts required to be distributed under Sections
51-9-305
,
59-5-116
, and
59-5-119
; and
(ii)
ending in the fiscal year immediately preceding the fiscal year of a deposit
required by this section.
(2)
After making the deposits of oil and gas severance tax revenue as required under
Sections
59-5-116
and
59-5-119
and making the credits under Section
51-9-305
, for a
fiscal year beginning on or after July 1, 2021, the State Tax Commission shall annually
make the following deposits:
(a)
to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in
Section
19-2a-106
, the following average aggregate annual revenue:
(i)
2.75% of the first $50,000,000 of the average aggregate annual revenue;
(ii)
1% of the next $50,000,000 of the average aggregate annual revenue; and
(iii)
.5% of the average aggregate annual revenue that exceeds $100,000,000;
(b)
to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created in
Section
19-5-126
, the following average aggregate annual revenue:
(i)
.4% of the first $50,000,000 of the average aggregate annual revenue;
(ii)
.15% of the next $50,000,000 of the average aggregate annual revenue; and
(iii)
.08% of the average aggregate annual revenue that exceeds $100,000,000;
(c)
to the Division of Oil, Gas, and Mining Restricted Account, created in Section
40-6-23
, the following:
(i)
(A)
11.5% of the first $50,000,000 of the average aggregate annual mining
revenue;
(B)
3% of the next $50,000,000 of the average aggregate annual mining revenue;
and
(C)
1% of the average aggregate annual mining revenue that exceeds
$100,000,000; and
(ii)
(A)
18% of the first $50,000,000 of the average aggregate annual oil and gas
revenue;
(B)
3% of the next $50,000,000 of the average aggregate annual oil and gas
revenue; and
(C)
1% of the average aggregate annual oil and gas revenue that exceeds
$100,000,000; and
(d)
to the Utah Geological Survey Restricted Account, created in Section
79-3-403
, the
following average aggregate annual revenue:
(i)
2.5% of the first $50,000,000 of the average aggregate annual revenue;
(ii)
1% of the next $50,000,000 of the average aggregate annual revenue; and
(iii)
.5% of the average aggregate annual revenue that exceeds $100,000,000.
(3)
If the money collected in a fiscal year from the taxes imposed under Title 59, Chapter 5,
Severance Tax on Oil, Gas, and Mining, is insufficient to make the deposits required by
Subsection (2), the State Tax Commission shall deposit money collected in the fiscal
year as follows:
(a)
to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in
Section
19-2a-106
, the following revenue:
(i)
2.75% of the first $50,000,000 of the aggregate annual revenue;
(ii)
1% of the next $50,000,000 of the aggregate annual revenue; and
(iii)
.5% of the aggregate annual revenue that exceeds $100,000,000;
(b)
to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created in
Section
19-5-126
, the following revenue:
(i)
.4% of the first $50,000,000 of the aggregate annual revenue;
(ii)
.15% of the next $50,000,000 of the aggregate annual revenue; and
(iii)
.08% of the aggregate annual revenue that exceeds $100,000,000;
(c)
to the Division of Oil, Gas, and Mining Restricted Account, created in Section
40-6-23
, the following:
(i)
(A)
11.5% of the first $50,000,000 of the aggregate annual mining revenue;
(B)
3% of the next $50,000,000 of the aggregate annual mining revenue; and
(C)
1% of the aggregate annual mining revenue that exceeds $100,000,000; and
(ii)
(A)
18% of the first $50,000,000 of the aggregate annual oil and gas revenue;
(B)
3% of the next $50,000,000 of the aggregate annual oil and gas revenue; and
(C)
1% of the aggregate annual oil and gas revenue that exceeds $100,000,000;
and
(d)
to the Utah Geological Survey Restricted Account, created in Section
79-3-403
, the
following revenue:
(i)
2.5% of the first $50,000,000 of the aggregate annual revenue;
(ii)
1% of the next $50,000,000 of the aggregate annual revenue; and
(iii)
.5% of the aggregate annual revenue that exceeds $100,000,000.
(4)
The severance tax revenues deposited under this section into restricted accounts for the
state agencies specified in Subsection
(2)
and appropriated from the restricted accounts
offset and supplant General Fund appropriations used to pay the costs of programs or
projects administered by the state agencies that are primarily related to oil, gas, and
mining.
Section 2. Section
51-9-307
is amended to read:
51-9-307
Effective
01/01/28
. New Severance Tax Revenue Special Revenue
Fund.
(1)
As used in this section:
(a)
"Fund" means the New Severance Tax Revenue Special Revenue Fund created in
this section.
(b)
"New revenue" means revenue collected above $100,000,000 from the taxes imposed
under Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining, after subtracting
the amounts required to be distributed under Sections
51-9-305
,
51-9-306
,
59-5-116
,
59-5-119
, and
59-5-121
and under Subsection
59-5-202
(5)(c)
59-5-202(6)(c)
.
(2)
There is created a special revenue fund known as the "New Severance Tax

Revenue
Special Revenue Fund" that consists of:
(a)
money deposited by the State Tax Commission in accordance with this section; and
(b)
interest earned on the money in the fund.
(3)
Beginning July 1, 2021, the State Tax Commission shall deposit into the fund 100% of
new revenue until the new revenue equals or exceeds $200,000,000 in a fiscal year.
Section 3. Section
59-1-403
is amended to read:
59-1-403
Effective
01/01/28
Partially Repealed
07/01/29
. Confidentiality --
Exceptions -- Penalty -- Application to property tax.
(1)
As used in this section:
(a)
"Distributed tax, fee, or charge" means a tax, fee, or charge:
(i)
the commission administers under:
(A)
this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax
Act;
(B)
Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(C)
Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(D)
Section
19-6-805
;
(E)
Section
63H-1-205
; or
(F)
Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
Charges; and
(ii)
with respect to which the commission distributes the revenue collected from the
tax, fee, or charge to a qualifying jurisdiction.
(b)
"GOEO" means the Governor's Office of Economic Opportunity created in Section
63N-1a-301
.
(c)
"Qualifying jurisdiction" means:
(i)
a county, city, or town;
(ii)
the military installation development authority created in Section
63H-1-201
;
(iii)
the Utah Inland Port Authority created in Section
11-58-201
; or
(iv)
the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
.
(2)
(a)
Any of the following may not divulge or make known in any manner any
information gained by that person from any return filed with the commission:
(i)
a tax commissioner;
(ii)
an agent, clerk, or other officer or employee of the commission; or
(iii)
a representative, agent, clerk, or other officer or employee of any county, city, or
town.
(b)
An official charged with the custody of a return filed with the commission is not
required to produce the return or evidence of anything contained in the return in any
action or proceeding in any court, except:
(i)
in accordance with judicial order;
(ii)
on behalf of the commission in any action or proceeding under:
(A)
this title; or
(B)
other law under which persons are required to file returns with the
commission;
(iii)
on behalf of the commission in any action or proceeding to which the
commission is a party; or
(iv)
on behalf of any party to any action or proceeding under this title if the report or
facts shown by the return are directly involved in the action or proceeding.
(c)
Notwithstanding Subsection
(2)(b)
, a court may require the production of, and may
admit in evidence, any portion of a return or of the facts shown by the return, as are
specifically pertinent to the action or proceeding.
(d)
Notwithstanding any other provision of state law, a person described in Subsection
(2)(a)
may not divulge or make known in any manner any information gained by that
person from any return filed with the commission to the extent that the disclosure is
prohibited under federal law.
(3)
This section does not prohibit:
(a)
a person or that person's duly authorized representative from receiving a copy of any
return or report filed in connection with that person's own tax;
(b)
the publication of statistics as long as the statistics are classified to prevent the
identification of particular reports or returns; and
(c)
the inspection by the attorney general or other legal representative of the state of the
report or return of any taxpayer:
(i)
who brings action to set aside or review a tax based on the report or return;
(ii)
against whom an action or proceeding is contemplated or has been instituted
under this title; or
(iii)
against whom the state has an unsatisfied money judgment.
(4)
(a)
Notwithstanding Subsection
(2)
and for purposes of administration, the
commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, provide for a reciprocal exchange of information
with:
(i)
the United States Internal Revenue Service; or
(ii)
the revenue service of any other state.
(b)
Notwithstanding Subsection
(2)
and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, made in accordance with Title
63G, Chapter 3, Utah Administrative Rulemaking Act, share information gathered
from returns and other written statements with the federal government, any other
state, any of the political subdivisions of another state, or any political subdivision of
this state, except as limited by Sections
59-12-209
and
59-12-210
, if the political
subdivision, other state, or the federal government grant substantially similar
privileges to this state.
(c)
Notwithstanding Subsection
(2)
and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, provide for the issuance of
information concerning the identity and other information of taxpayers who have
failed to file tax returns or to pay any tax due.
(d)
Notwithstanding Subsection
(2)
, the commission shall provide to the director of the
Division of Environmental Response and Remediation, as defined in Section
19-6-402
, as requested by the director of the Division of Environmental Response
and Remediation, any records, returns, or other information filed with the
commission under Chapter 13, Motor and Special Fuel Tax Act, or Section
19-6-410.5
regarding the environmental assurance program participation fee.
(e)
Notwithstanding Subsection
(2)
, at the request of any person the commission shall
provide that person sales and purchase volume data reported to the commission on a
report, return, or other information filed with the commission under:
(i)
Chapter 13, Part 2, Motor Fuel; or
(ii)
Chapter 13, Part 4, Aviation Fuel.
(f)
Notwithstanding Subsection
(2)
, upon request from a tobacco product manufacturer,
as defined in Section
59-22-202
, the commission shall report to the manufacturer:
(i)
the quantity of cigarettes, as defined in Section
59-22-202
, produced by the
manufacturer and reported to the commission for the previous calendar year under
Section
59-14-407
; and
(ii)
the quantity of cigarettes, as defined in Section
59-22-202
, produced by the
manufacturer for which a tax refund was granted during the previous calendar
year under Section
59-14-401
and reported to the commission under Subsection
59-14-401(1)(a)(v)
.
(g)
Notwithstanding Subsection
(2)
, the commission shall notify manufacturers,
distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is
prohibited from selling cigarettes to consumers within the state under Subsection
59-14-210(2)
.
(h)
Notwithstanding Subsection
(2)
, the commission may:
(i)
provide to the Division of Consumer Protection within the Department of
Commerce and the attorney general data:
(A)
reported to the commission under Section
59-14-212
; or
(B)
related to a violation under Section
59-14-211
; and
(ii)
upon request, provide to any person data reported to the commission under
Subsections
59-14-212(1)(a)
through
(c)
and Subsection
59-14-212(1)(g)
.
(i)
Notwithstanding Subsection
(2)
, the commission shall, at the request of a committee
of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's
Office of Planning and Budget, provide to the committee or office the total amount of
revenue collected by the commission under Chapter 24, Radioactive Waste Facility
Tax Act, for the time period specified by the committee or office.
(j)
Notwithstanding Subsection
(2)
, the commission shall make the directory required by
Section
59-14-603
available for public inspection.
(k)
Notwithstanding Subsection
(2)
, the commission may share information with federal,
state, or local agencies as provided in Subsection
59-14-606(3)
.
(l)
(i)
Notwithstanding Subsection
(2)
, the commission shall provide the Office of
Recovery Services within the Department of Health and Human Services any
relevant information obtained from a return filed under Chapter 10, Individual
Income Tax Act, regarding a taxpayer who has become obligated to the Office of
Recovery Services.
(ii)
The information described in Subsection
(4)(l)(i)
may be provided by the Office
of Recovery Services to any other state's child support collection agency involved
in enforcing that support obligation.
(m)
(i)
Notwithstanding Subsection
(2)
, upon request from the state court
administrator, the commission shall provide to the state court administrator, the
name, address, telephone number, county of residence, and social security number
on resident returns filed under Chapter 10, Individual Income Tax Act.
(ii)
The state court administrator may use the information described in Subsection
(4)(m)(i)
only as a source list for the master jury list described in Section
78B-1-106
.
(n)
(i)
As used in this Subsection
(4)(n)
:
(A)
"Income tax information" means information gained by the commission that is
required to be attached to or included in a return filed with the commission
under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10,
Individual Income Tax Act.
(B)
"Other tax information" means information gained by the commission that is
required to be attached to or included in a return filed with the commission
except for a return filed under Chapter 7, Corporate Franchise and Income
Taxes, or Chapter 10, Individual Income Tax Act.
(C)
"Tax information" means income tax information or other tax information.
(ii)
(A)
Notwithstanding Subsection
(2)
and except as provided in Subsection
(4)(n)(ii)(B)
or
(C)
, the commission shall at the request of GOEO provide to
GOEO all income tax information.
(B)
For purposes of a request for income tax information made under Subsection
(4)(n)(ii)(A)
, GOEO may not request and the commission may not provide to
GOEO a person's address, name, social security number, or taxpayer
identification number.
(C)
In providing income tax information to GOEO, the commission shall in all
instances protect the privacy of a person as required by Subsection
(4)(n)(ii)(B)
.
(iii)
(A)
Notwithstanding Subsection
(2)
and except as provided in Subsection
(4)(n)(iii)(B)
, the commission shall at the request of GOEO provide to GOEO
other tax information.
(B)
Before providing other tax information to GOEO, the commission shall redact
or remove any name, address, social security number, or taxpayer identification
number.
(iv)
GOEO may provide tax information received from the commission in accordance
with this Subsection
(4)(n)
only:
(A)
as a fiscal estimate, fiscal note information, or statistical information; and
(B)
if the tax information is classified to prevent the identification of a particular
return.
(v)
(A)
A person may not request tax information from GOEO under Title 63G,
Chapter 2, Government Records Access and Management Act, or this section,
if GOEO received the tax information from the commission in accordance with
this Subsection
(4)(n)
.
(B)
GOEO may not provide to a person that requests tax information in
accordance with Subsection
(4)(n)(v)(A)
any tax information other than the tax
information GOEO provides in accordance with Subsection
(4)(n)(iv)
.
(o)
Notwithstanding Subsection
(2)
, the commission may provide to the governing board
of the agreement or a taxing official of another state, the District of Columbia, the
United States, or a territory of the United States:
(i)
the following relating to an agreement sales and use tax:
(A)
information contained in a return filed with the commission;
(B)
information contained in a report filed with the commission;
(C)
a schedule related to Subsection
(4)(o)(i)(A)
or
(B)
; or
(D)
a document filed with the commission; or
(ii)
a report of an audit or investigation made with respect to an agreement sales and
use tax.
(p)
Notwithstanding Subsection
(2)
, the commission may provide information
concerning a taxpayer's state income tax return or state income tax withholding
information to the Driver License Division if the Driver License Division:
(i)
requests the information; and
(ii)
provides the commission with a signed release form from the taxpayer allowing
the Driver License Division access to the information.
(q)
Notwithstanding Subsection
(2)
, the commission shall provide to the Utah
Communications Authority, or a division of the Utah Communications Authority, the
information requested by the authority under Sections
63H-7a-302
,
63H-7a-402
, and
63H-7a-502
.
(r)
Notwithstanding Subsection
(2)
, the commission shall provide to the Utah
Educational Savings Plan information related to a resident or nonresident individual's
contribution to a Utah Educational Savings Plan account as designated on the
resident or nonresident's individual income tax return as provided under Section
59-10-1313
.
(s)
Notwithstanding Subsection
(2)
, for the purpose of verifying eligibility under
Sections
26B-3-106
and
26B-3-903
, the commission shall provide an eligibility
worker with the Department of Health and Human Services or its designee with the
adjusted gross income of an individual if:
(i)
an eligibility worker with the Department of Health and Human Services or its
designee requests the information from the commission; and
(ii)
the eligibility worker has complied with the identity verification and consent
provisions of Sections
26B-3-106
and
26B-3-903
.
(t)
Notwithstanding Subsection
(2)
, the commission may provide to a county, as
determined by the commission, information declared on an individual income tax
return in accordance with Section
59-10-103.1
that relates to eligibility to claim a
residential exemption authorized under Section
59-2-103
.
(u)
Notwithstanding Subsection
(2)
, the commission shall provide a report regarding any
access line provider that is over 90 days delinquent in payment to the commission of
amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid
Wireless Telecommunications Service Charges, to

the board of the Utah
Communications Authority created in Section
63H-7a-201
.
(v)
Notwithstanding Subsection
(2)
, the commission shall provide the Department of
Environmental Quality a report on the amount of tax paid by a radioactive waste
facility for the previous calendar year under Section
59-24-103.5
.
(w)
Notwithstanding Subsection
(2)
, the commission may, upon request, provide to the
Department of Workforce Services any information received under Chapter 10, Part
4, Withholding of Tax, that is relevant to the duties of the Department of Workforce
Services.
(x)
Notwithstanding Subsection
(2)
, the commission may provide the Public Service
Commission or the Division of Public Utilities information related to a seller that
collects and remits to the commission a charge described in Subsection
69-2-405(2)
,
including the seller's identity and the number of charges described in Subsection
69-2-405(2)
that the seller collects.
(y)
(i)
Notwithstanding Subsection
(2)
, the commission shall provide to each
qualifying jurisdiction the collection data necessary to verify the revenue collected
by the commission for a distributed tax, fee, or charge collected within the
qualifying jurisdiction.
(ii)
In addition to the information provided under Subsection
(4)(y)(i)
, the
commission shall provide a qualifying jurisdiction with copies of returns and other
information relating to a distributed tax, fee, or charge collected within the
qualifying jurisdiction.
(iii)
(A)
To obtain the information described in Subsection
(4)(y)(ii)
, the chief
executive officer or the chief executive officer's designee of the qualifying
jurisdiction shall submit a written request to the commission that states the
specific information sought and how the qualifying jurisdiction intends to use
the information.
(B)
The information described in Subsection
(4)(y)(ii)
is available only in official
matters of the qualifying jurisdiction.
(iv)
Information that a qualifying jurisdiction receives in response to a request under
this subsection is:
(A)
classified as a private record under Title 63G, Chapter 2, Government Records
Access and Management Act; and
(B)
subject to the confidentiality requirements of this section.
(z)
Notwithstanding Subsection
(2)
, the commission shall provide the Alcoholic
Beverage Services Commission, upon request, with taxpayer status information
related to state tax obligations necessary to comply with the requirements described
in Section
32B-1-203
.
(aa)
Notwithstanding Subsection
(2)
, the commission shall inform the Department of
Workforce Services, as soon as practicable, whether an individual claimed and is
entitled to claim a federal earned income tax credit for the year requested by the
Department of Workforce Services if:
(i)
the Department of Workforce Services requests this information; and
(ii)
the commission has received the information release described in Section
35A-9-604
.
(bb)
(i)
As used in this Subsection
(4)(bb)
, "unclaimed property administrator" means
the administrator or the administrator's agent, as those terms are defined in Section
67-4a-102
.
(ii)
(A)
Notwithstanding Subsection
(2)
, upon request from the unclaimed property
administrator and to the extent allowed under federal law, the commission shall
provide the unclaimed property administrator the name, address, telephone
number, county of residence, and social security number or federal employer
identification number on any return filed under Chapter 7, Corporate Franchise
and Income Taxes, or Chapter 10, Individual Income Tax Act.
(B)
The unclaimed property administrator may use the information described in
Subsection
(4)(bb)(ii)(A)
only for the purpose of returning unclaimed property
to the property's owner in accordance with Title 67, Chapter 4a, Revised
Uniform Unclaimed Property Act.
(iii)
The unclaimed property administrator is subject to the confidentiality provisions
of this section with respect to any information the unclaimed property
administrator receives under this Subsection
(4)(bb)
.
(cc)
Notwithstanding Subsection
(2)
, the commission may, upon request, disclose a
taxpayer's state individual income tax information to a program manager of the Utah
Fits All Scholarship Program under Section
53F-6-402
if:
(i)
the taxpayer consents in writing to the disclosure;
(ii)
the taxpayer's written consent includes the taxpayer's name, social security
number, and any other information the commission requests that is necessary to
verify the identity of the taxpayer; and
(iii)
the program manager provides the taxpayer's written consent to the commission.
(dd)
Notwithstanding Subsection
(2)
, the commission may provide to the Division of
Finance within the Department of Government Operations any information necessary
to facilitate a payment from the commission to a taxpayer, including:
(i)
the name of the taxpayer entitled to the payment or any other person legally
authorized to receive the payment;
(ii)
the taxpayer identification number of the taxpayer entitled to the payment;
(iii)
the payment identification number and amount of the payment;
(iv)
the tax year to which the payment applies and date on which the payment is due;
(v)
a mailing address to which the payment may be directed; and
(vi)
information regarding an account at a depository institution to which the
payment may be directed, including the name of the depository institution, the
type of account, the account number, and the routing number for the account.
(ee)
Notwithstanding Subsection
(2)
, the commission shall provide the total amount of
revenue collected by the commission under Subsection
59-5-202(5)
59-5-202(6)
:
(i)
at the request of a committee of the Legislature, the Office of the Legislative
Fiscal Analyst, or the Governor's Office of Planning and Budget, to the committee
or office for the time period specified by the committee or office; and
(ii)
to the Division of Finance for purposes of the Division of Finance administering
Subsection
59-5-202(5)
59-5-202(6)
.
(ff)
Notwithstanding Subsection
(2)
, the commission may provide the Department of
Agriculture and Food with information from a return filed in accordance with
Chapter 31, Cannabinoid Licensing and Tax Act.
(gg)
Notwithstanding Subsection
(2)
, the commission shall provide the Department of
Workforce Services with the information described in Section
35A-3-105
.
(hh)
Notwithstanding Subsection
(2)
, the commission may provide aggregated
information to the Utah Population Committee, created in Section
63C-20-103
, if the
Utah Population Committee requests the information in accordance with Section
63C-20-105
.
(5)
(a)
Each report and return shall be preserved for at least three years.
(b)
After the three-year period provided in Subsection
(5)(a)
the commission may
destroy a report or return.
(6)
(a)
Any individual who violates this section is guilty of a class A misdemeanor.
(b)
If the individual described in Subsection
(6)(a)
is an officer or employee of the state,
the individual shall be dismissed from office and be disqualified from holding public
office in this state for a period of five years thereafter.
(c)
Notwithstanding Subsection
(6)(a)
or
(b)
, GOEO, when requesting information in
accordance with Subsection
(4)(n)(iii)
, or an individual who requests information in
accordance with Subsection
(4)(n)(v)
:
(i)
is not guilty of a class A misdemeanor; and
(ii)
is not subject to:
(A)
dismissal from office in accordance with Subsection
(6)(b)
; or
(B)
disqualification from holding public office in accordance with Subsection
(6)(b)
.
(d)
Notwithstanding Subsection
(6)(a)
or
(b)
, for a disclosure of information to the
Office of the Legislative Auditor General in accordance with Title 36, Chapter 12,
Legislative Organization, an individual described in Subsection
(2)
:
(i)
is not guilty of a class A misdemeanor; and
(ii)
is not subject to:
(A)
dismissal from office in accordance with Subsection
(6)(b)
; or
(B)
disqualification from holding public office in accordance with Subsection
(6)(b)
.
(7)
Except as provided in Section
59-1-404
, this part does not apply to the property tax.
Section 4. Section
59-5-202
is amended to read:
59-5-202
Effective
01/01/28
. Severance tax -- Rate -- Computation -- Annual
exemption.
(1)
A person engaged in the business of mining or extracting metalliferous minerals in this
state shall pay to the state a severance tax equal to 2.6% of the taxable value of all
metals or metalliferous minerals sold or otherwise disposed of.
(2)
If the metals or metalliferous minerals are shipped outside the state, this constitutes a
sale, and the finished metals or the recoverable units of finished metals from the
metalliferous minerals shipped are subject to the severance tax. If the metals or
metalliferous minerals are stockpiled, the tax is not applicable until they are sold or
shipped out of state. For purposes of the tax imposed by this chapter, uranium
concentrates shall be considered to be finished metals. The owner of the metals or
metalliferous minerals that are stockpiled shall report to the commission annually, in a
form acceptable to the commission, the amount of metalliferous minerals so stockpiled.
Metals or metalliferous minerals that are stockpiled for more than two years, however,
are subject to the severance tax.
(3)
An annual exemption from the payment of the tax imposed by this chapter upon the first
$50,000 in gross value of the metalliferous mineral is allowed to each mine.
(4)
These taxes are in addition to all other taxes provided by law and are delinquent, unless
otherwise deferred, on June 1 next succeeding the calendar year when the metalliferous
mineral is produced and sold or delivered.
(5)
As provided in Section
67-3-23
, a person may pay the severance tax imposed under this
section by remitting to the state treasurer an amount of gold equivalent in value to the
taxes owed.
(5)
(6)
(a)
As used in this Subsection
(5)
(6)
:
(i)
"Great Salt Lake element or mineral" means a metalliferous mineral, metal, ore,
chloride compound, potash, or salt mined or extracted from the brines of the Great
Salt Lake.
(ii)
"Great Salt Lake elevation" means the same as that term is defined in Section
65A-17-101
.
(iii)
"Great Salt Lake extraction operator" means a person who

is engaged in the
business of mining or extracting Great Salt Lake elements or minerals or
metalliferous compounds from the brine of the Great Salt Lake.
(iv)
For purposes of each tax imposed under Subsection
(5)(b)
(6)(b)
, "incremental
revenue" means the difference between the sum of the revenue collected for the
fiscal year from each of the tax rates imposed under Subsection
(5)(b)
(6)(b)
and
the revenue collected for the fiscal year from the tax rate imposed under
Subsection
(1)
.
(v)
"Metalliferous compound" means a metalliferous mineral or a chloride compound
or salt containing a metalliferous mineral.
(b)
Notwithstanding the exclusion for chloride compounds or salts from the definition of
metalliferous minerals under Section
59-5-201

and in lieu of the severance tax
imposed under Subsection
(1)
, beginning with calendar year 2025, a Great Salt Lake
extraction operator shall pay to the state a severance tax in accordance with the
following:
(i)
for a Great Salt Lake extraction operator that is not a party or a third-party
beneficiary to a voluntary agreement for water rights with an approved beneficial
use by a division as defined in Section
73-3-30
, a severance tax equal to 7.8% of
the taxable value of Great Salt Lake elements or minerals or metalliferous
compounds sold or otherwise disposed of;
(ii)
for a Great Salt Lake extraction operator that is not a party or a third-party
beneficiary to a voluntary agreement for water rights with an approved beneficial
use by a division as defined in Section
73-3-30
, but does not use evaporative
concentrations of Great Salt Lake brines in any stage of the extractive process, a
severance tax equal to 2.6% of the taxable value of Great Salt Lake elements or
minerals or metalliferous compounds sold or otherwise disposed of;
or
(iii)
for a Great Salt Lake extraction operator that is a party or a third-party
beneficiary to a voluntary agreement for water rights with an approved beneficial
use by a division as defined in Section
73-3-30
:
(A)
a severance tax equal to 2.6% of the taxable value of Great Salt Lake elements
or minerals sold or otherwise disposed of, if the Great Salt Lake elements or
minerals are extracted during a calendar year when the Great Salt Lake
elevation recorded pursuant to Section
65A-17-306
was at or above 4,198 feet
in the prior calendar year; or
(B)
a severance tax does not apply to the taxable value of Great Salt Lake
elements or minerals sold or otherwise disposed of, if those Great Salt Lake
elements or minerals are sold or otherwise disposed of in a calendar year when
the Great Salt Lake elevation recorded pursuant to Section
65A-17-306
was
below 4,198 feet in the prior calendar year; and
(iv)
notwithstanding Subsection
(5)(b)(iii)
(6)(b)(iii)
, for a Great Salt Lake
extraction operator that is a party or third-party beneficiary to a voluntary
agreement for water rights with an approved beneficial use by a division as
defined in Section
73-3-30
, a severance tax equal to 2.6% of the taxable value of a
metalliferous compound sold or otherwise disposed of under a royalty agreement
issued under Subsection
65A-6-4(2)(d)
, entered into on or after May 1, 2024.
(c)
(i)
Subject to Subsection
(5)(c)(ii)
(6)(c)(ii)
, the Division of Finance shall deposit
the incremental revenue in accordance with Section
51-9-305
.
(ii)
The Division of Finance shall consider the incremental revenue required to be
deposited under Subsection
(5)(c)(i)
(6)(c)(i)
to be the first revenue collected
under this chapter for the fiscal year.
(iii)
The Division of Finance shall deposit the incremental revenue that remains after
making the deposit required by Subsection
(5)(c)(i)
(
6)(c)(i)
into the Sovereign
Lands Management Account created in Section
65A-5-1
.
(d)
This Subsection
(5)
(6)
may not be interpreted to:
(i)
excuse a person from paying a severance tax in accordance with the other
provisions of this part; or
(ii)
void a mineral lease or royalty agreement.
(e)
A person extracting metalliferous minerals, including a metalliferous compound,
from the brine of the Great Salt Lake is subject to the payment of a royalty agreement
under Section
65A-6-4
and the payment of a severance tax under this part.
Section 5. Section
59-5-203
is amended to read:
59-5-203
Effective
01/01/28
. Determining taxable value.
(1)
Except as provided in Subsection
(3)
, the basis for computing the gross proceeds, prior
to those deductions or adjustments specified in this chapter, in determining the taxable
value of the metals, metalliferous minerals, or metalliferous compounds, as defined in
Subsection
59-5-202
(5)
59-5-202(6)
, sold or otherwise disposed of, in the order of
priority, is as follows:
(a)
If the metals, metalliferous mineral products, or metalliferous compounds are
actually sold, the value of those metals, metalliferous mineral products, or
metalliferous compounds shall be the gross amount the producer receives from that
sale, provided that the metals, metalliferous mineral products, or metalliferous
compounds are sold under a bona fide contract of sale between unaffiliated parties.
In the case of a sale of uranium concentrates, gross proceeds shall be the gross
amount the producer receives from the sale of processed uranium concentrate or
"yellowcake," provided that the uranium concentrate is sold under a bona fide
contract of sale between unaffiliated parties.
(b)
(i)
For purposes of a Great Salt Lake extraction operator, as defined in Section
59-5-202
, if metals, metalliferous minerals, or metalliferous compounds are not
sold, but are otherwise disposed of, the gross proceeds shall be the multiple of the
recoverable units of finished or unfinished metals, or of the finished or unfinished
metals contained in the metalliferous minerals or metalliferous compounds
shipped, and the average daily price per unit of contained metals as quoted by an
established authority for market prices of metals for the period during which the
tax imposed by this chapter is due.
(ii)
The established authority or authorities under this Subsection
(1)(b)
shall be
designated by the commission by rule adopted in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act.
(c)
(i)
If the metals, metalliferous mineral products, or metalliferous compounds are
not actually sold but are shipped, transported, or delivered out of state, the gross
proceeds shall be the multiple of the recoverable units of finished metals, or of the
finished metals contained in the metalliferous minerals or metalliferous
compounds shipped, and the average daily price per unit of contained metals as
quoted by an established authority for market prices of metals for the period
during which the tax imposed by this chapter is due.
(ii)
The established authority or authorities shall be designated by the commission by
rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act.
(d)
In the case of metals, metalliferous minerals, or metalliferous compounds not sold,
but otherwise disposed of, for which there is no established authority for market
prices of metals for the period during which the tax imposed by this chapter is due,
gross proceeds is determined by allocating to the state the same proportion of the
producer's total sales of metals, metalliferous minerals, or metalliferous compounds
sold or otherwise disposed of as the producer's total Utah costs bear to the total costs
associated with sale or disposal of the metal, metalliferous mineral, or metalliferous
compound.
(e)
In the event of a sale of metals, metalliferous minerals, or metalliferous compounds
between affiliated companies which is not a bona fide sale because the value received
is not proportionate to the fair market value of the metals, metalliferous minerals,
metalliferous compounds or in the event that Subsection
(1)(a)
, (b), (c), or (d) are not
applicable, the commission shall determine the value of such metals, metalliferous
minerals, or metalliferous compounds in an equitable manner by reference to an
objective standard as specified in a rule adopted in accordance with the provisions of
Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(2)
For all metals except beryllium, the taxable value of the metalliferous mineral sold or
otherwise disposed of is 30% of the gross proceeds received for the metals sold or
otherwise disposed of by the producer of the metal.
(3)
Notwithstanding Subsection
(1)
or
(4)
, the taxable value of beryllium sold or otherwise
disposed of by the producer of the beryllium is equal to 125% of the direct mining costs
incurred in mining the beryllium.
(4)
Except as provided in Subsection
(3)
, if the metalliferous mineral sold or otherwise
disposed of is sold or shipped out of state in the form of ore, then the taxable value is
80% of the gross proceeds.
Section 6. Section
59-5-207
is amended to read:
59-5-207
Effective
01/01/28
. Date tax due -- Extensions -- Installment payments
-- Penalty on delinquencies -- Audit.
(1)
The tax imposed by this chapter is due and payable on or before June 1 of the year next
succeeding the calendar year when the mineral is produced and sold or delivered.
(2)
The commission may, for good cause shown upon a written application by the taxpayer,
extend the time of payment of the whole or any part of the tax for a period not to exceed
six months. If an extension is granted, interest at the rate and in the manner prescribed
in Section
59-1-402
shall be charged and added to the amount of the deferred payment
of the tax.
(3)
Every taxpayer subject to this chapter whose total tax obligation for the preceding
calendar year was $3,000 or more shall pay the taxes assessed under this chapter in
quarterly installments. Each installment shall be based on the estimated gross value
received by the taxpayer during the quarter preceding the date on which the installment
is due.
(4)
The quarterly installments are due as follows:
(a)
for January 1 through March 31, on or before June 1;
(b)
for April 1 through June 30, on or before September 1;
(c)
for July 1 through September 30, on or before December 1; and
(d)
for October 1 through December 31, on or before March 1 of the next year.
(5)
(a)
If the taxpayer fails to report and pay any tax when due, the taxpayer is subject to
the penalties provided under Section
59-1-401
, unless otherwise provided in
Subsection
(6)
.
(b)
An underpayment exists if less than 80% of the tax due for a quarter is paid.
(6)
The penalty for failure to pay the tax due or underpayment of tax may not be assessed if
the taxpayer's quarterly tax installment payment equals 25% of the tax reported and paid
by the taxpayer for the preceding taxable year.
(7)
There shall be no interest added to any estimated tax payments subject to a penalty
under this section.
(8)
The commission may conduct audits to determine whether any tax is owed under this
section.
(9)
For purposes of a Great Salt Lake extraction operator under Subsection
59-5-202
(5)
59-5-202(6)
, the Division of Forestry, Fire, and State Lands shall provide the
commission by January 15 of each year the information required by Section
65A-17-306
,
that the commission shall use to determine the amount due and payable on June 1 of the
year next succeeding the calendar year.
Section 7. Section
59-5-215
is amended to read:
59-5-215
Effective
01/01/28
. Disposition of taxes collected -- Credit to General
Fund.
Except as provided in Section
51-9-305
,
51-9-306
, or
51-9-307
, or Subsection
59-5-202
(5)
or
(6)
, a tax imposed and collected under Section
59-5-202
shall be paid to the commission,
promptly remitted to the state treasurer, and credited to the General Fund.
Section 8. Section
59-5-306
is enacted to read:
59-5-306
Effective
01/01/28
. Nonrefundable tax credit for payment in gold.
(1)
As used in this section:
(a)
"Critical mineral" means:
(i)
aluminum;
(ii)
antimony;
(iii)
arsenic;
(iv)
barite;
(v)
beryllium;
(vi)
bismuth;
(vii)
boron;
(viii)
cerium;
(ix)
cesium;
(x)
chromium;
(xi)
cobalt;
(xii)
copper;
(xiii)
dysprosium;
(xiv)
erbium;
(xv)
europium;
(xvi)
fluorspar;
(xvii)
gadolinium;
(xviii)
gallium;
(xix)
germanium;
(xx)
graphite;
(xxi)
hafnium;
(xxii)
holmium;
(xxiii)
indium;
(xxiv)
iridium;
(xxv)
lanthanum;
(xxvi)
lead;
(xxvii)
lithium;
(xxviii)
lutetium;
(xxix)
magnesium;
(xxx)
manganese;
(xxxi)
metallurgical coal;
(xxxii)
neodymium;
(xxxiii)
nickel;
(xxxiv)
niobium;
(xxxv)
palladium;
(xxxvi)
phosphate;
(xxxvii)
platinum;
(xxxviii)
potash;
(xxxix)
praseodymium;
(xl)
rhenium;
(xli)
rhodium;
(xlii)
rubidium;
(xliii)
ruthenium;
(xliv)
samarium;
(xlv)
scandium;
(xlvi)
silicon;
(xlvii)
silver;
(xlviii)
tantalum;
(xlix)
tellurium;
(l)
terbium;
(li)
thulium;
(lii)
tin;
(liii)
titanium;
(liv)
tungsten;
(lv)
uranium;
(lvi)
vanadium;
(lvii)
ytterbium;
(lviii)
yttrium;
(lix)
zinc; or
(lx)
zirconium.
(b)
"Qualified taxpayer" means a taxpayer who:
(i)
owns or operates a mine as defined in Section
59-5-201
, for extracting:
(A)
gold; and
(B)
one or more critical minerals; and
(ii)
as allowed under Section
67-3-23
, pays in gold the taxes owed under Part 2,
Mining Severance Tax, for the taxable year.
(2)
Subject to Subsection
(3)
, a qualified taxpayer may claim a nonrefundable tax credit
equal to 5% of the qualified taxpayer's liability under Part 2, Mining Severance Tax, for
the taxable year, excluding any credit available under this section.
(3)
(a)
If the qualified taxpayer owns or operates a mine on January 1, 2028, the qualified
taxpayer may claim a tax credit under this section for a taxable year that begins on or
after January 1, 2028, and before January 1, 2033.
(b)
If the qualified taxpayer does not own or operate a mine on January 1, 2028, the
qualified taxpayer may claim a tax credit under this section for a taxable year that
begins on or after January 1, 2028, and before January 1, 2043.
Section 9. Section
65A-6-4
is amended to read:
65A-6-4
Effective
01/01/28
. Mineral leases -- Multiple leases on same land --
Rentals and royalties -- Lease terms -- Great Salt Lake.
(1)
As used in this section:
(a)
"Great Salt Lake element or mineral" means:
(i)
a rare earth element;
(ii)
a trace element or mineral; or
(iii)
a chemical compound that includes a rare earth element or trace element or
mineral.
(b)
"Operator" means, for purposes of provisions applicable to the extraction of a Great
Salt Lake element or mineral, a person qualified to do business in the state who is
pursuing the extraction of a Great Salt Lake element or mineral.
(c)
"Rare earth element" is one of the following ores, minerals, or elements located in
the brines or the sovereign lands of the Great Salt Lake:
(i)
lanthanum;
(ii)
cerium;
(iii)
praseodymium;
(iv)
neodymium;
(v)
samarium;
(vi)
europium;
(vii)
gadolinium;
(viii)
terbium;
(ix)
dysprosium;
(x)
holmium;
(xi)
erbium;
(xii)
thulium;
(xiii)
ytterbium;
(xiv)
lutetium; and
(xv)
yttrium.
(d)
"Trace element or mineral" means an element or mineral that is located in the brines
or the sovereign lands of the Great Salt Lake that is not in production by July 1, 2020,
and for which the state has not received a royalty payment by July 1, 2020.
(2)
(a)
Mineral leases, including oil, gas, and hydrocarbon leases, may be issued for
prospecting, exploring, developing, and producing minerals covering any portion of
state lands or the reserved mineral interests of the state.
(b)
(i)
Leases may be issued for different types of minerals on the same land.
(ii)
If leases are issued for different types of minerals on the same land, the leases
shall include stipulations for simultaneous operations, except that for leases
related to the Great Salt Lake the leases shall include stipulations for simultaneous
operations that will not interfere with, impede, limit, or require changes to
pre-existing rights.
(c)
No more than one lease may be issued for the same resource on the same land.
(d)
The division shall require a separate royalty agreement for extraction of Great Salt
Lake elements or minerals from brines of the Great Salt Lake when:
(i)
a mineral lease, a royalty agreement, or both that are in effect before the operator
seeks to extract a particular Great Salt Lake element or mineral do not expressly
include the right to extract the particular Great Salt Lake element or mineral; or
(ii)
the proposed operation will use brines from the Great Salt Lake, but will not
occupy sovereign lands for the direct production of Great Salt Lake elements or
minerals other than for incidental structures such as pumps and intake and outflow
pipelines.
(3)
(a)
Each mineral lease issued by the division shall provide for an annual rental of not
less than $1 per acre per year, except that a mineral lease issued by the division
involving the extraction of a Great Salt Lake element or mineral from brines in the
Great Salt Lake shall provide for an annual rental of not less than $100 per acre per
year.
(b)
However, a lease may provide for a rental credit, minimum rental, or minimum
royalty upon commencement of production, as prescribed by rule.
(4)
The primary term of a mineral lease may not exceed:
(a)
20 years for oil shale and tar sands; and
(b)
10 years for oil and gas and any other mineral.
(5)
(a)
In addition to the requirements of Chapter 17, Part 3, Mineral or Element
Extraction, and subject to the other provisions of this Subsection
(5)
, for a mineral
lease or royalty agreement involving the extraction of Great Salt Lake elements and
minerals from brines in the Great Salt Lake, the division shall ensure that the
following terms, as applicable, are included:
(i)
an extraction operation or extraction method shall adhere to commercially viable
technologies that minimize water depletion;
(ii)
a provision authorizing the division to curtail or limit Great Salt Lake element or
mineral production at any time the condition of the Great Salt Lake reaches the
emergency trigger, as defined in Section
65A-17-101
;
(iii)
a provision authorizing the division to withdraw lands, operations, extraction
methods, or technologies from Great Salt Lake element or mineral production or
Great Salt Lake element or mineral operations;
(iv)
a provision allowing the division to require an existing operator to use
commercially viable, innovative technologies to minimize water depletions caused
by the planned mineral extraction as a condition of continued operations if the
technology:
(A)
has been successfully implemented on a commercial scale in similar
circumstances;
(B)
has been shown to be economically viable; and
(C)
is reasonably compatible with the operator's overall extraction process; and
(v)
a provision that provides for the reductions of the following after the primary
term of a mineral lease or royalty agreement:
(A)
the acreage subject to the mineral lease by the acreage the operator does not
use to extract a Great Salt Lake element or mineral during the primary term of
the mineral lease under conditions that do not constitute waste, as defined in
Section
65A-17-101
; and
(B)
the volume of water that the operator may divert from the Great Salt Lake, by
the volume of water that the operator does not use during the longer of the
primary term of the mineral lease or seven years if the operator fails to use the
volume of water for a beneficial use, except if the failure to use the volume of
water is as a result of a reduction of water usage under Section
73-33-201
or is
excused under Section
73-1-4
.
(b)
If under Subsection
(5)(a)(iv)
the division requires an existing operator to use a
commercially viable, innovative technology, the division may not require use of a
technology not yet proven to be commercially viable on the Great Salt Lake and may
not require implementation of the technology to begin until after a reasonable period
determined by the division that is at least five years but does not exceed seven years.
(c)
(i)
If the volume of water that the operator may divert from the Great Salt Lake is
reduced under Subsection
(5)(a)(v)
, the division shall pursue a judicial action to
declare all or a portion of the water right forfeited under Subsection
73-1-4(2)
.
(ii)
If the division secures the reduction under this Subsection
(5)(c)
, the division
shall petition the state engineer to order a reversal of the application approval in
accordance with the terms of the reduction or forfeiture of the water right.
(iii)
Nothing in this Subsection
(5)
modifies or otherwise affects Section
73-1-4
or
73-3-30
.
(6)
(a)
Before issuing a royalty agreement under Subsection
(2)(d)
, the division may
require an operator to engage in a feasibility assessment and may issue a royalty
agreement without compliance of Subsection
(5)(a)
if the agreement:
(i)
has a term of 12 months or less; and
(ii)
requires a minimum use of five acre-feet of brines from the Great Salt Lake
during the term of the agreement.
(b)
Subsection
(6)(a)(ii)
requiring a minimum use of five acre-feet of brines from the
Great Salt Lake does not apply to an operator who filed an application with the
division for a feasibility assessment before January 1, 2025.
(c)
The division may make rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, for implementing this Subsection
(6)
.
(7)
(a)
Upon nomination from a prospective operator, the division shall by rule, made in
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
establish a royalty rate and calculation methodology for a Great Salt Lake element or
mineral that:
(i)
provides for a full and fair return to the state from the production of the Great Salt
Lake element or mineral;
(ii)
is consistent with market royalty rates applicable to the production of the Great
Salt Lake element or mineral or of the production of oil and gas;
(iii)
provides a base royalty rate;
(iv)
provides a reduced royalty rate from the royalty rate under Subsection
(7)(a)(iii)

if the royalty agreement:
(A)
relates to a non-evaporative method of producing the Great Salt Lake element
or mineral; or
(B)
provides an incentive to use commercially viable, innovative technology to
minimize water depletion and evaporation as determined by the division;
(v)
provides a reduced royalty rate from the royalty rate under Subsection
(7)(a)(iii)
if
the prospective operator for the extraction of lithium demonstrates to the
satisfaction of the division that the prospective operator has an agreement with a
person who will process or manufacture a product in this state, exclusive of any
primary or secondary lithium processing or manufacturing, using the lithium
extracted by the prospective operator; and
(vi)
subject to Subsection
(7)(e)
, provides for a royalty rate that is based on the
highest market value prevailing at the time of the sale or disposal of the following:
(A)
the Great Salt Lake element or mineral; or
(B)
a product the lessee produces from the Great Salt Lake element or mineral.
(b)
Before entering into a royalty agreement permitting the extraction of Great Salt Lake
elements or minerals, the operator shall:
(i)
demonstrate the proposed operation's commercial viability;
(ii)
certify before operation begins that the operator is not negatively impacting the
biota or chemistry of the Great Salt Lake; and
(iii)
obtain the approval of the division and the Department of Environmental Quality
that the certification supports a finding that the operation will not negatively
impact the biota or chemistry of the Great Salt Lake.
(c)
A new mineral lease for a Great Salt Lake element or mineral in production in the
Great Salt Lake as of May 3, 2023, is subject to new royalty rates due to emergent
technologies.
(d)
An operator who as of July 1, 2020, had a mineral lease with the division but not a
royalty agreement and who is subject to a severance tax under Subsection
59-5-202
(5)
59-5-202(6)
shall pay a royalty under this section in addition to the severance tax.
(e)
The royalty rate described in Subsection
(7)(a)(vi)
may not be reassessed during the
primary term of an initial royalty agreement issued under this section, but may be
reassessed upon the conclusion of the primary term.
(8)
(a)
Except as provided in Subsection
(8)(b)
, an operator who extracts a Great Salt
Lake element or mineral from tailings from the production of Great Salt Lake
elements or minerals from brines in the Great Salt Lake is subject to this section to
the same extent as an operator producing a Great Salt Lake element or mineral from
brines in the Great Salt Lake.
(b)
An operator that, as of May 3, 2023, has an agreement to recover a Great Salt Lake
element or mineral from existing tailings, discarded material, end-use products, or
waste products produced from the evaporation and processing of Great Salt Lake
brines is not subject to this section, except as to the payment of royalties set by the
division under Subsection
(7)(a)
. The division shall make rules, in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act, regarding the issuance
and termination of a royalty agreement for mineral extraction from tailings, discarded
material, end-use products, or waste products produced from the evaporation and
processing of Great Salt Lake brines.
(c)
An operator that, as of May 3, 2023, has an underlying agreement to recover a Great
Salt Lake element or mineral shall obtain an additional agreement for any additional
Great Salt Lake element or mineral produced from the tailings, discarded material,
end-use products, or waste products newly produced under the underlying agreement.
The additional agreement is subject to this section.
(9)
The division shall annually report to the Natural Resources, Agriculture, and
Environmental Quality Appropriations Subcommittee regarding the amount of money
collected under this section from royalties provided for in Subsection
(7)
.
(10)
(a)
In the issuance of royalty agreements for the extraction of lithium from the Great
Salt Lake, the division shall prioritize applicants that do not use evaporative
concentration of Great Salt Lake brines in any stage of the extractive process.
(b)
The division may make rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, creating a process for implementing this Subsection
(10)
.
(11)
Except in relationship to mineral leases related to the Great Salt Lake, the division
shall make rules regarding the continuation of a mineral lease after the primary term has
expired, which shall provide that a mineral lease shall continue so long as:
(a)
the mineral covered by the lease is being produced in paying quantities from:
(i)
the leased premises;
(ii)
lands pooled, communitized, or unitized with the leased premises; or
(iii)
lands constituting an approved mining or drilling unit with respect to the leased
premises; or
(b)
(i)
the lessee is engaged in diligent operations, exploration, research, or
development which is reasonably calculated to advance development or
production of the mineral covered by the lease from:
(A)
the leased premises;
(B)
lands pooled, communitized, or unitized with the leased premises; or
(C)
lands constituting an approved mining or drilling unit with respect to the
leased premises; and
(ii)
the lessee pays a minimum royalty.
(12)
For the purposes of Subsection
(11)
, diligent operations with respect to oil, gas, and
other hydrocarbon leases may include cessation of operations not in excess of 90 days in
duration.
(13)
(a)
The division shall study and analyze each mineral lease and mineral royalty
agreement issued on the Great Salt Lake and compare and evaluate whether the
mineral leases and royalty agreements are representative of current market
conditions. As part of this study, the division shall:
(i)
make the following determinations for mineral leases:
(A)
whether the entire surface area described within the mineral lease is being
used; and
(B)
whether the annual lease payments are representative of current market
conditions; and
(ii)
for royalty agreements, perform studies and comparative analyses to determine
whether the state is receiving royalty rates consistent with current market
conditions.
(b)
By no later than the 2023 November interim meeting, the division shall report the
division's findings of the study required by this Subsection
(13)
to the Natural
Resources, Agriculture, and Environment Interim Committee.
(14)
The division may make rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, for implementing this section.
(15)
The provisions in this section related to extraction of a Great Salt Lake element or
mineral under a mineral lease or royalty agreement apply to a mineral lease or royalty
agreement in effect on May 1, 2024, and any mineral lease or royalty agreement entered
into after May 1, 2024.
Section 10. Section
65A-17-306
is amended to read:
65A-17-306
Effective
01/01/28
. Certification of eligibility for tax rates.
(1)
As used in this section:
(a)
"Great Salt Lake element or mineral" means the same as that term is defined in
Subsection
59-5-202
(5)
59-5-202(6)
.
(b)
"Great Salt Lake extraction operator" means the same as that term is defined in
Subsection
59-5-202
(5)
59-5-202(6)
.
(2)
(a)
A Great Salt Lake extraction operator shall by no later than December 31 of each
year certify to the division for purposes of determining a severance tax imposed
under Subsection
59-5-202
(5)
59-5-202(6)
during the next succeeding calendar year,
the information listed in Subsection
(2)(b)
.
(b)
The Great Salt Lake extraction operator shall certify the following for the calendar
year ending on the date the Great Salt Lake extraction operator submits the
certification for purposes of determining a severance tax imposed during the next
succeeding calendar year:
(i)
the Great Salt Lake extraction operator's name;
(ii)
the Great Salt Lake extraction operator's tax identification number;
(iii)
whether at the time a Great Salt Lake element or mineral is extracted, the Great
Salt Lake extraction operator is a party or a third-party beneficiary to a voluntary
agreement for water rights with an approved beneficial use by a division as
defined in Section
73-3-30
;
(iv)
if the Great Salt Lake extraction operator is not a party or third-party beneficiary
to a voluntary agreement for water rights with an approved beneficial use by a
division as defined in Section
73-3-30
, whether the Great Salt Lake extraction
operator uses evaporative concentrations of Great Salt Lake brines in any stage of
the Great Salt Lake extraction operator's extractive process;
(v)
whether the Great Salt Lake extraction operator extracted a Great Salt Lake
element or mineral when the Great Salt Lake elevation recorded under Subsection
(3)
is at or above 4,198 feet, and what the Great Salt Lake element or mineral
extracted was; and
(vi)
other information as determined by the division by rule made in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(c)
A Great Salt Lake extraction operator shall submit the certification on a form
provided by the division and approved by the State Tax Commission.
(3)
The division shall record the Great Salt Lake elevation for purposes of this section and
Subsection
59-5-202
(5)
59-5-202(6)
as of June 15 to be applied during the next
succeeding calendar year.
(4)
The division shall forward to the State Tax Commission by no later than January 15 of
the year for which the severance tax shall be determined:
(a)
the Great Salt Lake elevation level recorded under Subsection
(3)
;
(b)
a list of the Great Salt Lake extraction operators who are subject to a severance tax
under Subsection
59-5-202
(5)
59-5-202(6)
;
(c)
the Great Salt Lake extraction operator's tax identification number for each Great
Salt Lake extraction operator listed in Subsection
(4)(b)
; and
(d)
for each Great Salt Lake extraction operator subject to a severance tax under
Subsection
59-5-202
(5)
59-5-202(6)
:
(i)
each Great Salt Lake element or mineral or metalliferous compound extracted by
the Great Salt Lake extraction operator that is subject to the severance tax; and
(ii)
the rate of severance tax that is to be imposed under Subsection
59-5-202
(5)
59-5-202(6)
.
(5)
The division may audit a certification submitted under this section for completeness and
accuracy.
(6)
The division may take an enforcement action against a Great Salt Lake extraction
operator who violates this section.
Section 11. Section
67-3-23
is enacted to read:
67-3-23
Effective
01/01/28
. Collection of tax payments in gold.
(1)
(a)
A person may pay taxes due under Title 59, Chapter 5, Part 2, Mining Severance
Tax, by remitting to the state treasurer's office an amount of gold equivalent in value
to the amount of taxes due.
(b)
The state treasurer's office shall calculate the value of gold remitted under this
section:
(i)
as of the day on which the person remits the gold; and
(ii)
based on an internationally recognized benchmark gold price, as determined by
the state treasurer's office.
(c)
The state treasurer's office may not accept gold under this section, unless:
(i)
the gold satisfies internationally recognized investment grade purity standards, as
determined by the state treasurer's office; and
(ii)
the state treasurer's office determines that the gold is gold.
(d)
The taxpayer shall pay any transactional costs resulting from paying taxes in gold
under this section.
(2)
When the state treasurer's office receives gold under this section, the state treasurer's
office shall:
(a)
notify:
(i)
the commission of the payment, including any information the commission
requests; and
(ii)
the Division of Finance of the value of the gold received; and
(b)
deposit the gold into the General Fund Budget Reserve Account, created in Section
63J-1-312.
(3)
Upon receipt of a notice described in Subsection
(3)
, the Division of Finance shall credit
from the General Fund Budget Reserve Account created in Section
63J-1-312
an amount
equal to the value of the gold and distribute the credited money in the same manner as
severance tax revenue collected under Title 59, Chapter 5, Part 2, Mining Severance Tax.
Section 12. Section
67-4-19
is amended to read:
67-4-19
Effective
01/01/28
. Investments of public funds in precious metals by
state treasurer -- Precious metals study and report to Legislature.
(1)
As used in this section, "precious metal" means the same as that term is defined in
Section
61-1-13
.
(2)
(a)
Subject to Subsection (2)(b), the state treasurer may invest a portion of public
funds in the following accounts in precious metals:
(i)
the State Disaster Recovery Restricted Account, created in Section
53-2a-603
;
(ii)
the General Fund Budget Reserve Account, created in Section
63J-1-312
;
(iii)
the Income Tax Fund Budget Reserve Account, created in Section
63J-1-313
; and
(iv)
the Medicaid Growth Reduction and Budget Stabilization Account, created in
Section
63J-1-315
.
(b)
(i)
(A)
The amount of public funds that the state treasurer may invest in
precious metals in an account described in Subsection (2)(a) may not, at the
time the investment is made, exceed 10% of the total amount of public funds in
that account.
(B)
Gold deposited into the General Fund Budget Reserve Account, created in
Section 63J-1-312, in accordance with Section 67-3-23 does not court towards
the limitation described in Subsection (2)(b)(i)(A).
(ii)
The requirements of Subsections
51-7-14
(2) and (3) apply to the state treasurer's
investments in precious metals under Subsection (2)(a).
(iii)
Any public funds in an account described in Subsection (2)(a) not invested by
the state treasurer in precious metals under this Subsection (2) shall be invested as
provided in Title 51, Chapter 7, State Money Management Act.
(3)
The state treasurer may deduct any administrative costs incurred by investing in
precious metals under Subsection (2)(a), including delivery and vaulting costs, from
earnings generated by the investments in the funds described in Subsections
(2)(a)(i)

through (iv).
Section 13.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect for a future taxable year
beginning on or after
January 1, 2028
.
(2)
The actions affecting the following sections take effect on
January 1, 2028
:
(a)
Section 67-3-23
Effective
01/01/28
; and
(b)
Section 67-4-19
Effective
01/01/28
.
2-13-26 2:09 PM