No. 40978 (5-year Review): Rule R865-16R. Severance Tax

DAR File No.: 40978
Filed: 11/10/2016 10:01:29 AM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 59-5-203 indicates how taxable value shall be determined for purposes of imposing the mining severance tax of 2.6% of taxable value. The section requires the Tax Commission to establish a rule setting forth an established authority for market prices of metals and a process for determining the value of metals sold between affiliated companies where a bona fide sale has not taken place.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

No written comments have been received.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

Section R865-16R-1 establishes authority and promulgates processes both required by statute and necessary in the determination of fair market value. The section is necessary to ensure that the measurement of taxable value is consistent among the different taxpayers, thereby ensuring that all pay their fair share of tax. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY, UT 84134

Direct questions regarding this rule to:

• Christa Johnson at the above address, by phone at 801-297-3901, by FAX at 801-297-3907, or by Internet E-mail at [e-mail]

Effective:

11/10/2016

Authorized by:

Rebecca Rockwell, Commissioner

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