59-5-203 - Determining taxable value. - Utah Statutes

59-5-203. Determining taxable value.
(1) Except as provided in Subsection (3), the basis for computing the gross proceeds,prior to those deductions or adjustments specified in this chapter, in determining the taxablevalue of the metals or metalliferous minerals sold or otherwise disposed of, in the order ofpriority, is as follows:
(a) If the metals or metalliferous mineral products are actually sold, the value of thosemetals or metalliferous mineral products shall be the gross amount the producer receives fromthat sale, provided that the metals or metalliferous mineral products are sold under a bona fidecontract of sale between unaffiliated parties. In the case of a sale of uranium concentrates, grossproceeds shall be the gross amount the producer receives from the sale of processed uraniumconcentrate or "yellowcake," provided that the uranium concentrate is sold under a bona fidecontract of sale between unaffiliated parties.
(b) If the metals or metalliferous mineral products are not actually sold but are shipped,transported, or delivered out of state, the gross proceeds shall be the multiple of the recoverableunits of finished metals, or of the finished metals contained in the metalliferous mineralsshipped, and the average daily price per unit of contained metals as quoted by an establishedauthority for market prices of metals for the period during which the tax imposed by this chapteris due. The established authority or authorities shall be designated by the commission by ruleadopted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(c) In the case of metals or metalliferous minerals not sold, but otherwise disposed of, forwhich there is no established authority for market prices of metals for the period during whichthe tax imposed by this chapter is due, gross proceeds is determined by allocating to the state thesame proportion of the producer's total sales of metals or metalliferous minerals sold or otherwisedisposed of as the producer's total Utah costs bear to the total costs associated with sale ordisposal of the metal or metalliferous mineral.
(d) In the event of a sale of metals or metalliferous minerals between affiliatedcompanies which is not a bona fide sale because the value received is not proportionate to the fairmarket value of the metals or metalliferous minerals or in the event that Subsection (1)(a), (b), or(c) are not applicable, the commission shall determine the value of such metals or metalliferousminerals in an equitable manner by reference to an objective standard as specified in a ruleadopted in accordance with the provisions of Title 63G, Chapter 3, Utah AdministrativeRulemaking Act.
(2) For all metals except beryllium, the taxable value of the metalliferous mineral sold orotherwise disposed of is 30% of the gross proceeds received for the metals sold or otherwisedisposed of by the producer of the metal.
(3) (a) Beginning on January 1, 1990, through December 31, 2004, for beryllium sold orotherwise disposed of, the taxable value is 20% of the gross proceeds received for the berylliumsold or otherwise disposed of by the producer.
(b) (i) Notwithstanding Subsection (1) or (4) and subject to Subsection (3)(b)(ii),beginning on January 1, 2005, the taxable value of beryllium sold or otherwise disposed of by theproducer of the beryllium is equal to 125% of the direct mining costs incurred in mining theberyllium.
(ii) For an action or proceeding filed on or after January 1, 2005, if the taxable value ofberyllium is calculated under Subsection (3)(a) for purposes of imposing a tax on berylliumunder this part, the taxable value of beryllium calculated under Subsection (3)(a) may not exceed

the taxable value of beryllium calculated under Subsection (3)(b)(i).
(4) Except as provided in Subsection (3), if the metalliferous mineral sold or otherwisedisposed of is sold or shipped out of state in the form of ore, then the taxable value is 80% of thegross proceeds.

Amended by Chapter 382, 2008 General Session