Utah § 59-5-103.1 - Valuation of oil or gas -- Deductions.

Full text of Utah Utah Code § 59-5-103.1 — Valuation of oil or gas -- Deductions., with citation guidance and answers to common questions.

§ 59-5-103.1. Valuation of oil or gas -- Deductions.

Effective 3/28/2016
59-5-103.1.  Valuation of oil or gas -- Deductions.
(1)
(a) For purposes of the tax imposed under Section 59-5-102 and subject to Subsection (2), the value of oil or gas shall be determined at the first point closest to the well at which the fair market value for the oil or gas may be determined by:
(i) a sale pursuant to an arm's-length contract; or
(ii) for a sale other than a sale described in Subsection (1)(a)(i), comparison to other sales of oil or gas.
(b) For purposes of determining the fair market value of oil or gas under this Subsection (1), a person subject to a tax under Section 59-5-102 may deduct:
(i) all processing costs from the value of oil or gas, including processing costs attributable to the value of oil and gas that is exempt from taxation under Section 59-5-102; and
(ii) except as provided in Subsection (1)(c), all transportation costs from the value of oil or gas, including transportation costs attributable to the value of oil and gas that is exempt from taxation under Section 59-5-102.
(c) The deduction for transportation costs may not exceed 50% of the value of the oil or gas.
(2) Subsection (1)(a)(ii) applies to a sale of oil or gas between:
(a) a parent company and a subsidiary company;
(b) companies wholly owned or partially owned by a common parent company; or
(c) companies otherwise affiliated.


Amended by Chapter 324, 2016 General Session

Source: official Utah text · Last verified 2026-08-27

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Frequently Asked Questions About Utah § 59-5-103.1

What does Utah Code § 59-5-103.1 cover?

Section 59-5-103.1 ("Valuation of oil or gas -- Deductions.") 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 § 59-5-103.1?

A common citation format is "Utah Code § 59-5-103.1" (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 § 59-5-103.1 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.

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