Utah Code 11-59-207. Annual fee in lieu of property tax

11-59-207. Annual fee in lieu of property tax.

(1)

As used in this section:

Authority: means the Point of the Mountain State Land Authority, created in Section 11-59-201. See Utah Code 11-59-102
Land: includes :Utah Code 68-3-12.5
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
Person: means :Utah Code 68-3-12.5
Point of the mountain state land: means the approximately 700 acres of state-owned land in Draper, including land used for the operation of a state correctional facility until completion of the new correctional facility and state-owned land in the vicinity of the current state correctional facility. See Utah Code 11-59-102
Property: includes both real and personal property. See Utah Code 68-3-12.5
real property: includes :Utah Code 68-3-12.5
Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

(a)

“Annual fee” means a fee:

(i)	that is levied and collected each year, as provided in this section; and

(ii)	in an amount that is the equivalent of the cumulative real property tax that would be levied and collected on leased property by all taxing entities if the leased property were not exempt property.

(b)	“Exempt property” means real property that is exempt from ad valorem property tax because the real property is owned by the state.

(c)	“Lease agreement” means an agreement by which a private person leases from the state real property that is part of the point of the mountain state land.

(d)

(i)

“Leased property” means real property that:

(A)	is part of the point of the mountain state land;

(B)	is leased by a private person; and

(C)	would be subject to ad valorem property tax if the real property were owned by the private person.

(ii)	“Leased property” includes attachments and other improvements to the real property that would be included in an assessment of the value of the real property if the real property were not exempt property.

(e)	“Leased property value” means the value that leased property would have if the leased property were subject to ad valorem property tax.

(f)	“Lessee” means a private person that leases property that is part of the point of the mountain state land under a lease agreement.

(2)	Beginning January 1 of the year immediately following the execution of a lease agreement, a lessee under the lease agreement shall pay an annual fee with respect to the leased property that is the subject of the lease agreement.

(3)

In a county in which the point of the mountain state land is located:

(a)	the county assessor shall determine the leased property value of leased property that is subject to an annual fee as though the leased property were subject to ad valorem property tax;

(b)	the county treasurer shall collect an annual fee in the same way and at the same time that the treasurer would collect ad valorem property tax on the leased property if the leased property were subject to ad valorem property tax;

(c)	the county may retain an administrative fee for collecting and distributing the annual fee in the same amount that would apply if the leased property were not exempt property; and

(d)	the county treasurer shall distribute to the authority all revenue from an annual fee on leased property in the same way and at the same time as the treasurer distributes ad valorem property tax revenue to taxing entities in accordance with Section 59-2-1365.

(4)	Leased property is not subject to a privilege tax under Title 59, Chapter 4, Privilege Tax.

Enacted by Chapter 237, 2022 General Session