Utah Code 59-2-1114. Exemption of inventory or other tangible personal property held for sale

(1)

Tangible personal property present in Utah on the assessment date, at noon, held for sale in the ordinary course of business or for shipping to a final out-of-state destination within 12 months and which constitutes the inventory of any retailer, wholesaler, distributor, processor, warehouseman, manufacturer, producer, gatherer, transporter, storage provider, farmer, or livestock raiser, is exempt from property taxation.

Terms Used In Utah Code 59-2-1114

Livestock: means :

(a)	a domestic animal;

(b)

a fish;

(c)	a fur-bearing animal;

(d)	a honeybee; or

(e)

poultry. See Utah Code 59-2-102

Person: means :Utah Code 68-3-12.5

Personal property: All property that is not real property.

Personal property: includes :

(a)	every class of property as defined in Subsection (29) that is the subject of ownership and is not real estate or an improvement;

(b)	any pipe laid in or affixed to land whether or not the ownership of the pipe is separate from the ownership of the underlying land, even if the pipe meets the definition of an improvement;

(c)	bridges and ferries;

(d)	livestock; and

(e)

outdoor advertising structures as defined in Section 72-7-502. See Utah Code 59-2-102

Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5

Property: means property that is subject to assessment and taxation according to its value. See Utah Code 59-2-102

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

(2)

This exemption does not apply to:

(a)	inventory which is not otherwise subject to personal property taxation;

(b)

mines;

(c)	natural deposits; or

(d)	a manufactured home or mobile home which is sited at a location where occupancy could take place.

(3)

As used in this section:

(a)

“Assessment date” means:

(i)	for tangible personal property and vehicles other than vehicles described in Subsection (3)(a)(ii), January 1; and

(ii)	for vehicles brought into Utah from out-of-state, the date the vehicles are brought into Utah.

(b)	“Inventory” means all items of tangible personal property described as materials, containers, goods in process, finished goods, severed minerals, and other personal property owned by or in possession of the person claiming the exemption.

(c)

(i)	“Mine” means a natural deposit of either metalliferous or nonmetalliferous valuable mineral.

(ii)	“Mine” does not mean a severed mineral.

(d)	“Natural deposit” means a metalliferous or nonmetalliferous mineral located at or below ground level that has not been severed or extracted from its natural state.

(e)

“Severed mineral” means any mineral that has been previously severed or extracted from a natural deposit including severed or extracted minerals that:

(i)	are stored above, below, or within the ground; and

(ii)	are ultimately recoverable for future sale.

(4)	The commission may adopt rules to implement the inventory exemption.

Amended by Chapter 324, 2010 General Session

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