Utah § 59-32-102 Imposition of local impact mitigation tax -- Rate  -- Exemptions -- Shipment out-of-state -- Stockpiling -- Relation to other taxes -- Prohibition on county imposition of oil or gas mitigation fee.

Utah Statutes

§ 59-32-102 — Imposition of local impact mitigation tax -- Rate -- Exemptions -- Shipment out-of-state -- Stockpiling -- Relation to other taxes -- Prohibition on county imposition of oil or gas mitigation fee.

Utah·Title 59 Revenue and Taxation·Ch. 59-32 Local Impact Mitigation Tax Act

(1)(1)(a) Except as provided in Subsection (2), a local impact mitigation tax is imposed at the rate specified in Subsection (1)(b) on the total volume of oil and gas that is:

(1)(a)(i) produced within the state on or after January 1, 2026, and before January 1, 2029; and

(1)(a)(ii) (1)(a)(ii)(A) saved;

(1)(a)(ii)(B) sold; or

(1)(a)(ii)(C) transported from the field from which the oil or gas was produced.

(1)(b) The rate of the tax under this chapter is:

(1)(b)(i) 5 cents per barrel of oil described in Subsection (1)(a); and

(1)(b)(ii) 1/4 cent per MCF of gas described in Subsection (1)(a).

(2)The tax under this chapter does not apply to:

(2)(a) oil or gas produced by the United States;

(2)(b) oil or gas produced by the state or a political subdivision of the state;

(2)(c) oil or gas pro

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(1) (1)(a) Except as provided in Subsection (2), a local impact mitigation tax is imposed at the rate specified in Subsection (1)(b) on the total volume of oil and gas that is:
(1)(a)(i) produced within the state on or after January 1, 2026, and before January 1, 2029; and
(1)(a)(ii) (1)(a)(ii)(A) saved;
(1)(a)(ii)(B) sold; or
(1)(a)(ii)(C) transported from the field from which the oil or gas was produced.
(1)(b) The rate of the tax under this chapter is:
(1)(b)(i) 5 cents per barrel of oil described in Subsection (1)(a); and
(1)(b)(ii) 1/4 cent per MCF of gas described in Subsection (1)(a).
(2) The tax under this chapter does not apply to:
(2)(a) oil or gas produced by the United States;
(2)(b) oil or gas produced by the state or a political subdivision of the state;
(2)(c) oil or gas produced by an Indian or Indian tribe as defined in Section 9-9-101 from land under the jurisdiction of the United States;
(2)(d) oil or gas produced from a stripper well;
(2)(e) oil or gas produced from a wildcat well during the first 12 months of well production;
(2)(f) oil or gas produced from a development well during the first six months of well production; or
(2)(g) gas produced or consumed for the purpose of processing oil or gas to a marketable state by removing natural gas liquids or contaminants.
(3) If oil or gas is shipped outside the state:
(3)(a) the shipment constitutes a sale; and
(3)(b) the oil or gas is subject to the tax imposed by this chapter.
(4) (4)(a) Except as provided in Subsection (4)(b), if oil or gas is stockpiled, the tax under this chapter is not imposed until the oil or gas is:
(4)(a)(i) sold;
(4)(a)(ii) transported; or
(4)(a)(iii) delivered.
(4)(b) If oil or gas is stockpiled for more than two years, the oil or gas is subject to the tax imposed by this chapter.
(5) The tax under this chapter:
(5)(a) is separate from and in addition to all other taxes provided by law, including the severance tax imposed under Chapter 5, Part 1, Oil and Gas Severance Tax;
(5)(b) does not affect the requirements applicable to the severance tax imposed under Chapter 5, Part 1, Oil and Gas Severance Tax, including the requirements for the disposition of severance tax revenue under Sections 59-5-116 and 59-5-119; and
(5)(c) is not a severance tax for purposes of Utah Constitution, Article XIII, Section 5, Subsection (9).
(6) Unless specifically authorized by statute, a county may not impose an oil or gas mitigation fee.

Utah § 59-32-102 (Imposition of local impact mitigation tax -- Rate -- Exemptions -- Shipment out-of-state -- Stockpiling -- Relation to other taxes -- Prohibition on county imposition of oil or gas mitigation fee.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.