DAR File No. 27739

Tax Commission, Auditing

R865-16R

Severance Tax

FIVE-YEAR NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

DAR File No.: 27739
Filed: 03/08/2005, 03:38
Received by: NL

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 59-2-203 indicates how taxable value shall be determined for purposes of imposing the mining severance tax of 2.6% of taxable value. This section also 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 affiliates 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 comments have been received in the last five years.

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

The rule establishes authority and promulgates processes both required by statute and is necessary in the determination of fair market value. The rule is necessary to ensure that the measurement of taxable value is consistent among the different tax payers, 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 Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

Authorized by:

Pam Hendrickson, Commissioner

ADDITIONAL INFORMATION

PLEASE NOTE:

• Please see the DISCLAIMER regarding information available from state web pages.

For questions regarding the content or application of this rule, please contact Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.