HB 362 — Tax Payments with Gold

(d) Notwithstanding any other provision of state law, a person described in Subsection -(2)(a) 6may -not 02-23divulge 16:51or 1stmake Sub.known in any manner any information gained by that person from any return filed with the commission to the extent that the disclosure is prohibited under federal law.

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362 (2)(a) may not divulge or make known in any manner any information gained by that person from any return filed with the commission to the extent that the disclosure is prohibited under federal law.

(4)(a)(4) (a) Notwithstanding Subsection (2) and for purposes of administration, the commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, provide for a reciprocal exchange of information with:

(b) Notwithstanding Subsection (2) and for all taxes except individual income tax and corporate franchise tax, the commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and other written statements with the federal government, any other state, any of the political subdivisions of another state, or any political subdivision of this state, except as limited by Sections 59-12-209 and - 7 - HB0362 compared with HB0362S01 59-12-210, if the political subdivision, other state, or the federal government grant substantially similar privileges to this state.

(d) Notwithstanding Subsection (2), the commission shall provide to the director of the -Division 7of -Environmental 1stResponse Sub.and Remediation, as defined in Section 19-6-402, as requested by the director of the Division of Environmental Response and Remediation, any records, returns, or other information filed with the commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5 regarding the environmental assurance program participation fee.

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362 02-23 16:51 Division of Environmental Response and Remediation, as defined in Section 19-6-402, as requested by the director of the Division of Environmental Response and Remediation, any records, returns, or other information filed with the commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5 regarding the environmental assurance program participation fee.

and - 8 - HB0362 compared with HB0362S01 (ii) upon request, provide to any person data reported to the commission under Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).

(i) Notwithstanding Subsection (2), the commission shall, at the request of a committee of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's Office of Planning and Budget, provide to the committee or office the total amount of revenue collected by the commission under Chapter 24, Radioactive Waste Facility -Tax 8Act, -for 02-23the 16:51time 1stperiod Sub.specified by the committee or office.

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362 Tax Act, for the time period specified by the committee or office.

(l)(i)(l) (i) Notwithstanding Subsection (2), the commission shall provide the Office of Recovery Services within the Department of Health and Human Services any relevant information obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer who has become obligated to the Office of Recovery Services.

(m)(i)(m) (i) Notwithstanding Subsection (2), upon request from the state court administrator, the commission shall provide to the state court administrator, the name, address, telephone number, county of residence, and social security number on resident returns filed under Chapter 10, Individual Income Tax Act.

(n)(i)(n) (i) As used in this Subsection (4)(n):

- 9 - HB0362 compared with HB0362S01 (B) "Other tax information" means information gained by the commission that is required to be attached to or included in a return filed with the commission except for a return filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.

(ii)(A)(ii) (A) Notwithstanding Subsection (2) and except as provided in Subsection (4)(n)(ii)(B) or (C), the commission shall at the request of GOEO provide to GOEO all income tax information.

(B) For purposes of a request for income tax information made under Subsection -(4)(n)(ii)(A), 9GOEO -may 1stnot Sub.request and the commission may not provide to GOEO a person's address, name, social security number, or taxpayer identification number.

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362 02-23 16:51 (4)(n)(ii)(A), GOEO may not request and the commission may not provide to GOEO a person's address, name, social security number, or taxpayer identification number.

(iii)(A)(iii) (A) Notwithstanding Subsection (2) and except as provided in Subsection (4)(n)(iii)(B), the commission shall at the request of GOEO provide to GOEO other tax information.

(v)(A)(v) (A) A person may not request tax information from GOEO under Title 63G, Chapter 2, Government Records Access and Management Act, or this section, if GOEO received the tax information from the commission in accordance with this Subsection (4)(n).

(B) GOEO may not provide to a person that requests tax information in accordance with Subsection (4)(n)(v)(A)(4) (n)(v)(A) any tax information other than the tax information GOEO provides in accordance with Subsection (4)(n)(iv).

- 10 - HB0362 compared with HB0362S01 (i) the following relating to an agreement sales and use tax:

(p) Notwithstanding Subsection (2), the commission may provide information -concerning 10a -taxpayer's 02-23state 16:51income 1sttax Sub.return or state income tax withholding information to the Driver License Division if the Driver License Division:

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362 concerning a taxpayer's state income tax return or state income tax withholding information to the Driver License Division if the Driver License Division:

- 11 - HB0362 compared with HB0362S01 (u) Notwithstanding Subsection (2), the commission shall provide a report regarding any access line provider that is over 90 days delinquent in payment to the commission of amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges, to[ ] the board of the Utah Communications Authority created in Section 63H-7a-201.

-(w) 11Notwithstanding -Subsection 1st(2), Sub.the commission may, upon request, provide to the Department of Workforce Services any information received under Chapter 10, Part 4, Withholding of Tax, that is relevant to the duties of the Department of Workforce Services.

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362 02-23 16:51 (w) Notwithstanding Subsection (2), the commission may, upon request, provide to the Department of Workforce Services any information received under Chapter 10, Part 4, Withholding of Tax, that is relevant to the duties of the Department of Workforce Services.

(y)(i)(y) (i) Notwithstanding Subsection (2), the commission shall provide to each qualifying jurisdiction the collection data necessary to verify the revenue collected by the commission for a distributed tax, fee, or charge collected within the qualifying jurisdiction.

(iii)(A)(iii) (A) To obtain the information described in Subsection (4)(y)(ii), the chief executive officer or the chief executive officer's designee of the qualifying jurisdiction shall submit a written request to the commission that states the specific information sought and how the qualifying jurisdiction intends to use the information.

and - 12 - HB0362 compared with HB0362S01 (B) subject to the confidentiality requirements of this section.

(aa) Notwithstanding Subsection (2), the commission shall inform the Department of -Workforce 12Services, -as 02-23soon 16:51as 1stpracticable, Sub.whether an individual claimed and is entitled to claim a federal earned income tax credit for the year requested by the Department of Workforce Services if:

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362 Workforce Services, as soon as practicable, whether an individual claimed and is entitled to claim a federal earned income tax credit for the year requested by the Department of Workforce Services if:

(bb)(i)(bb) (i) As used in this Subsection (4)(bb), "unclaimed property administrator" means the administrator or the administrator's agent, as those terms are defined in Section 67-4a-102.

(ii)(A)(ii) (A) Notwithstanding Subsection (2), upon request from the unclaimed property administrator and to the extent allowed under federal law, the commission shall provide the unclaimed property administrator the name, address, telephone number, county of residence, and social security number or federal employer identification number on any return filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.

(B) The unclaimed property administrator may use the information described in Subsection (4)(bb)(ii)(A)(4)(bb)(ii) (A) only for the purpose of returning unclaimed property to the property's owner in accordance with Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act.

- 13 - HB0362 compared with HB0362S01 (dd) Notwithstanding Subsection (2), the commission may provide to the Division of Finance within the Department of Government Operations any information necessary to facilitate a payment from the commission to a taxpayer, including:

(i) the name of the taxpayer entitled to the payment or any other person legally -authorized 13to -receive 1stthe Sub.payment;

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362 02-23 16:51 authorized to receive the payment;

(5)(a)(5) (a) Each report and return shall be preserved for at least three years.

(6)(a)- 14 - HB0362 compared with HB0362S01 (6) (a) Any individual who violates this section is guilty of a class A misdemeanor.

(c) Notwithstanding Subsection (6)(a) or (b), GOEO, when requesting information in accordance with Subsection (4)(n)(iii), or an individual who requests information in accordance with Subsection (4)(n)(v):(4) (n)(v):

-(i) 14is -not 02-23guilty 16:51of 1sta Sub.class A misdemeanor;

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362 (i) is not guilty of a class A misdemeanor;

59-5-20259-5-202. (Effective 01/01/28).

The owner of the metals or metalliferous minerals that are stockpiled shall report to the commission annually, in a - 15 - HB0362 compared with HB0362S01 form acceptable to the commission, the amount of metalliferous minerals so stockpiled.

(4) These taxes are in addition to all other taxes provided by law and are delinquent, unless otherwise deferred, on June 1 next succeeding the calendar year when the metalliferous -mineral 15is -produced 1stand Sub.sold or delivered.

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362 02-23 16:51 mineral is produced and sold or delivered.

[(5)] (6)(a)(6) (a) As used in this Subsection [(5)] (6):

(i) for a Great Salt Lake extraction operator that is not a party or a third-party beneficiary to a voluntary agreement for water rights with an approved beneficial use by a division as defined in Section - 16 - HB0362 compared with HB0362S01 73-3-30, a severance tax equal to 7.8% of the taxable value of Great Salt Lake elements or minerals or metalliferous compounds sold or otherwise disposed of;

(ii) for a Great Salt Lake extraction operator that is not a party or a third-party beneficiary to a voluntary agreement for water rights with an approved beneficial use by a division as defined in Section 73-3-30, but does not use evaporative concentrations of Great Salt Lake brines in any stage of the extractive process, a -severance 16tax -equal 02-23to 16:512.6% 1stof Sub.the taxable value of Great Salt Lake elements or minerals or metalliferous compounds sold or otherwise disposed of;[ or] (iii) for a Great Salt Lake extraction operator that is a party or a third-party beneficiary to a voluntary agreement for water rights with an approved beneficial use by a division as defined in Section 73-3-30:

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362 severance tax equal to 2.6% of the taxable value of Great Salt Lake elements or minerals or metalliferous compounds sold or otherwise disposed of;[ or] (iii) for a Great Salt Lake extraction operator that is a party or a third-party beneficiary to a voluntary agreement for water rights with an approved beneficial use by a division as defined in Section 73-3-30:

(c)(i)(c) (i) Subject to Subsection [(5)(c)(ii)] (6)(c)(ii), the Division of Finance shall deposit the incremental revenue in accordance with Section 51-9-305.

- 17 - HB0362 compared with HB0362S01 (d) This Subsection [(5)] (6) may not be interpreted to:

(e) A person extracting metalliferous minerals, including a metalliferous compound, -from 17the -brine 1stof Sub.the Great Salt Lake is subject to the payment of a royalty agreement under Section 65A-6-4 and the payment of a severance tax under this part.

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362 02-23 16:51 from the brine of the Great Salt Lake is subject to the payment of a royalty agreement under Section 65A-6-4 and the payment of a severance tax under this part.

59-5-20359-5-203. (Effective 01/01/28).

(b)(i)(b) (i) For purposes of a Great Salt Lake extraction operator, as defined in Section 59-5-202, if metals, metalliferous minerals, or metalliferous compounds are not sold, but are otherwise disposed of, the gross proceeds shall be the multiple of the recoverable units of finished or unfinished metals, or of the finished or unfinished metals contained in the metalliferous minerals or metalliferous compounds shipped, and the average daily price per unit of contained metals as quoted by an established authority for market prices of metals for the period during which the tax imposed by this chapter is due.

(c)(i)- 18 - HB0362 compared with HB0362S01 (c) (i) If the metals, metalliferous mineral products, or metalliferous compounds are not actually sold but are shipped, transported, or delivered out of state, the gross proceeds shall be the multiple of the recoverable units of finished metals, or of the finished metals contained in the metalliferous minerals or metalliferous compounds shipped, and the average daily price per unit of contained metals as -quoted 18by -an 02-23established 16:51authority 1stfor Sub.market prices of metals for the period during which the tax imposed by this chapter is due.

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362 quoted by an established authority for market prices of metals for the period during which the tax imposed by this chapter is due.

- 19 - HB0362 compared with HB0362S01 Section 6.

59-5-20759-5-207. (Effective 01/01/28).

(1) The tax imposed by this chapter is due and payable on or before June 1 of the year next -succeeding 19the -calendar 1styear Sub.when the mineral is produced and sold or delivered.

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362 02-23 16:51 succeeding the calendar year when the mineral is produced and sold or delivered.

(5)(a)(5) (a) If the taxpayer fails to report and pay any tax when due, the taxpayer is subject to the penalties provided under Section 59-1-401, unless otherwise provided in Subsection (6).

(9) For purposes of a Great Salt Lake extraction operator under Subsection [59-5-202(5)] 59-5-202(6), the Division of Forestry, Fire, and State Lands shall provide the commission by January 15 of each - 20 - HB0362 compared with HB0362S01 year the information required by Section 65A-17-306, that the commission shall use to determine the amount due and payable on June 1 of the year next succeeding the calendar year.

59-5-21559-5-215. (Effective 01/01/28).

Disposition of taxes collected -- Credit to General -Fund. 20 - 02-23 16:51 1st Sub.

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362 Fund.

Section 59-5-3068 is enacted to read:

59-5-30659-5-306. (Effective 01/01/28).

- 21 - HB0362 compared with HB0362S01 (xxi) hafnium;

-(xxvii) 21lithium; - 1st Sub.

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362 02-23 16:51 (xxvii) lithium;

- 22 - HB0362 compared with HB0362S01 (lii) tin;

-(b) 22"Qualified -taxpayer" 02-23means 16:51a 1sttaxpayer Sub.who:

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362 (b) "Qualified taxpayer" means a taxpayer who:

(3)(a)(3) (a) If the qualified taxpayer owns or operates a mine on January 1, 2028, the qualified taxpayer may claim a tax credit under this section for a taxable year that begins on or after January 1, 2028, and before January 1, 2033.

65A-6-465A-6-4. (Effective 01/01/28).

- 23 - HB0362 compared with HB0362S01 (ii) a trace element or mineral;

-(vi) 23europium; - 1st Sub.

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362 02-23 16:51 (vi) europium;

(2)(a)(2) (a) Mineral leases, including oil, gas, and hydrocarbon leases, may be issued for prospecting, exploring, developing, and producing minerals covering any portion of state lands or the reserved mineral interests of the state.

(b)(i)(b) (i) Leases may be issued for different types of minerals on the same land.

- 24 - HB0362 compared with HB0362S01 (ii) If leases are issued for different types of minerals on the same land, the leases shall include stipulations for simultaneous operations, except that for leases related to the Great Salt Lake the leases shall include stipulations for simultaneous operations that will not interfere with, impede, limit, or require changes to pre-existing rights.

(3)(a)(3) (a) Each mineral lease issued by the division shall provide for an annual rental of not less than $1 per acre per year, except that a mineral lease issued by the division -involving 24the -extraction 02-23of 16:51a 1stGreat Sub.Salt Lake element or mineral from brines in the Great Salt Lake shall provide for an annual rental of not less than $100 per acre per year.

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362 involving the extraction of a Great Salt Lake element or mineral from brines in the Great Salt Lake shall provide for an annual rental of not less than $100 per acre per year.

(5)(a)(5) (a) In addition to the requirements of Chapter 17, Part 3, Mineral or Element Extraction, and subject to the other provisions of this Subsection (5), for a mineral lease or royalty agreement involving the extraction of Great Salt Lake elements and minerals from brines in the Great Salt Lake, the division shall ensure that the following terms, as applicable, are included:

- 25 - HB0362 compared with HB0362S01 (ii) a provision authorizing the division to curtail or limit Great Salt Lake element or mineral production at any time the condition of the Great Salt Lake reaches the emergency trigger, as defined in Section 65A-17-101;

(A) the acreage subject to the mineral lease by the acreage the operator does not use to extract a Great Salt Lake element or mineral during the primary term of the mineral lease under conditions that do not constitute waste, as defined in -Section 2565A-17-101; - 1st Sub.

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362 02-23 16:51 Section 65A-17-101;

(c)(i)(c) (i) If the volume of water that the operator may divert from the Great Salt Lake is reduced under Subsection (5)(a)(v), the division shall pursue a judicial action to declare all or a portion of the water right forfeited under Subsection 73-1-4(2).

- 26 - HB0362 compared with HB0362S01 (ii) If the division secures the reduction under this Subsection (5)(c), the division shall petition the state engineer to order a reversal of the application approval in accordance with the terms of the reduction or forfeiture of the water right.

(6)(a)(6) (a) Before issuing a royalty agreement under Subsection (2)(d), the division may require an operator to engage in a feasibility assessment and may issue a royalty agreement without compliance of Subsection (5)(a) if the agreement:

(7)(a)(7) (a) Upon nomination from a prospective operator, the division shall by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establish a royalty rate and calculation methodology for a Great Salt Lake element or -mineral 26that: - 02-23 16:51 1st Sub.

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362 mineral that:

- 27 - HB0362 compared with HB0362S01 (v) provides a reduced royalty rate from the royalty rate under Subsection (7)(a)(iii) if the prospective operator for the extraction of lithium demonstrates to the satisfaction of the division that the prospective operator has an agreement with a person who will process or manufacture a product in this state, exclusive of any primary or secondary lithium processing or manufacturing, using the lithium extracted by the prospective operator;

(d) An operator who as of July 1, 2020, had a mineral lease with the division but not a -royalty 27agreement -and 1stwho Sub.is subject to a severance tax under Subsection [59-5-202(5)] 59-5-202(6) shall pay a royalty under this section in addition to the severance tax.

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362 02-23 16:51 royalty agreement and who is subject to a severance tax under Subsection [59-5-202 (5)] 59-5-202(6) shall pay a royalty under this section in addition to the severance tax.

(8)(a)(8) (a) Except as provided in Subsection (8)(b), an operator who extracts a Great Salt Lake element or mineral from tailings from the production of Great Salt Lake elements or minerals from brines in the Great Salt Lake is subject to this section to the same extent as an operator producing a Great Salt Lake element or mineral from brines in the Great Salt Lake.

- 28 - HB0362 compared with HB0362S01 (b) An operator that, as of May 3, 2023, has an agreement to recover a Great Salt Lake element or mineral from existing tailings, discarded material, end-use products, or waste products produced from the evaporation and processing of Great Salt Lake brines is not subject to this section, except as to the payment of royalties set by the division under Subsection (7)(a).

(10)(a)(10) (a) In the issuance of royalty agreements for the extraction of lithium from the Great Salt Lake, the division shall prioritize applicants that do not use evaporative concentration of Great Salt Lake brines in any stage of the extractive process.

(11) Except in relationship to mineral leases related to the Great Salt Lake, the division -shall 28make -rules 02-23regarding 16:51the 1stcontinuation Sub.of a mineral lease after the primary term has expired, which shall provide that a mineral lease shall continue so long as:

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362 shall make rules regarding the continuation of a mineral lease after the primary term has expired, which shall provide that a mineral lease shall continue so long as:

or (b)(i)(b) - 29 - HB0362 compared with HB0362S01 (i) the lessee is engaged in diligent operations, exploration, research, or development which is reasonably calculated to advance development or production of the mineral covered by the lease from:

(13)(a)(13) (a) The division shall study and analyze each mineral lease and mineral royalty agreement issued on the Great Salt Lake and compare and evaluate whether the mineral leases and royalty agreements are representative of current market conditions.

(14) The division may make rules, in accordance with Title 63G, Chapter 3, Utah -Administrative 29Rulemaking -Act, 1stfor Sub.implementing this section.

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362 02-23 16:51 Administrative Rulemaking Act, for implementing this section.

65A-17-30665A-17-306. (Effective 01/01/28).

- 30 - HB0362 compared with HB0362S01 (b) "Great Salt Lake extraction operator" means the same as that term is defined in Subsection [59-5-202(5)] 59-5-202(6).

(2)(a)(2) (a) A Great Salt Lake extraction operator shall by no later than December 31 of each year certify to the division for purposes of determining a severance tax imposed under Subsection [59-5-202(5)] 59-5-202(6) during the next succeeding calendar year, the information listed in Subsection (2)(b).

(v) whether the Great Salt Lake extraction operator extracted a Great Salt Lake element or mineral when the Great Salt Lake elevation recorded under Subsection (3) is at or above 4,198 feet, and what the Great Salt Lake element or mineral -extracted 30was; - 02-23 16:51 1st Sub.

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362 extracted was;

- 31 - HB0362 compared with HB0362S01 (b) a list of the Great Salt Lake extraction operators who are subject to a severance tax under Subsection [59-5-202(5)] 59-5-202(6);

Section 67-3-2311 is enacted to read:

67-3-2367-3-23. (Effective 01/01/28).

(1)(a){(1) {As used in this section, "Utah gold" means gold that is produced from mineral deposits located within the state.} } (2){(1)} (a) A person may pay taxes due under Title 59, Chapter 5, Part 2, Mining Severance Tax, by remitting to the state treasurer's office an amount of {Utah } gold equivalent in value to the amount of taxes due.

(b) The state treasurer's office shall calculate the value of {Utah } gold remitted under this section:

(i) as of the day {immediately before the day } on which the person remits the {Utah } gold;

and (ii) based on an internationally recognized benchmark gold price, as determined by -the 31state -treasurer's 1stoffice. Sub.

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362 02-23 16:51 the state treasurer's office.

and (ii) the state treasurer's office determines that the gold is {Utah } gold.

(2)(3){(2)} When the state treasurer's office receives {Utah } gold under this section, the state treasurer's office shall:shall {notify} :

- 32 - HB0362 compared with HB0362S01 (a) notify:

(i)(a){(i)} the commission of the payment, including any information the commission requests;

and (ii)(b){(ii)} the Division of Finance of the value of the {Utah } gold received;received{.} ;

(3)(4){(3)} Upon receipt of a notice described in Subsection (3), the Division of Finance shall credit from the General Fund Budget Reserve Account created in Section 63J-1-312 an amount equal to the value of the {Utah } gold and distribute the credited money in the same manner as severance tax revenue collected under Title 59, Chapter 5, Part 2, Mining Severance Tax.

67-4-1967-4-19. (Effective 01/01/28).

(2)(a)(2) (a) Subject to Subsection (2)(b), the state treasurer may invest a portion of public funds in the following accounts in precious metals:

(b)(i)(A)(b) (i) (A) The amount of public funds that the state treasurer may invest in precious metals in an account described in Subsection (2)(a) may not, at the time the investment is made, exceed 10% of the total amount of public funds in -that 32account. - 02-23 16:51 1st Sub.

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362 that account.

- 33 - HB0362 compared with HB0362S01 (iii) Any public funds in an account described in Subsection (2)(a) not invested by the state treasurer in precious metals under this Subsection (2) shall be invested as provided in Title 51, Chapter 7, State Money Management Act.

Effective date.

(1){This } Except as provided in Subsection (2), this bill takes effect for a future taxable year beginning on or after January 1, 2028.

2-13-26 2:09 PM - 3334 -