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.
Full text of Utah Utah Code § 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., with citation guidance and answers to common questions.
§ 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.
Effective 5/7/2025 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.
(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:
(i)
produced within the state on or after January 1, 2026, and before January 1, 2029; and
(ii)
(A)
saved;
(B)
sold; or
(C)
transported from the field from which the oil or gas was produced.
(b)
The rate of the tax under this chapter is:
(i)
5 cents per barrel of oil described in Subsection (1)(a); and
(ii)
1/4 cent per MCF of gas described in Subsection (1)(a).
(2)
The tax under this chapter does not apply to:
(a)
oil or gas produced by the United States;
(b)
oil or gas produced by the state or a political subdivision of the state;
(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;
(d)
oil or gas produced from a stripper well;
(e)
oil or gas produced from a wildcat well during the first 12 months of well production;
(f)
oil or gas produced from a development well during the first six months of well production; or
(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:
(a)
the shipment constitutes a sale; and
(b)
the oil or gas is subject to the tax imposed by this chapter.
(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:
(i)
sold;
(ii)
transported; or
(iii)
delivered.
(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:
(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;
(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
(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.
Section 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.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 59-32-102?
A common citation format is "Utah Code § 59-32-102" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 59-32-102 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
