97-001
Response
January 10, 1997
RE:
Request for advisory opinion
Dear
Commissioner XXXXX,
We
respectfully request an advisory opinion on the following issue regarding the
assessment of transitory personal property.
UCA 59-2-402 states, "(1 ) If any
taxable transitory personal property, other than property exempted under Subsection
(2), is brought into the state at any time after the assessment date, a
proportional assessment shall be made in accordance with rules adopted by the
commission based upon the length of time that the property is in the state, but
in no event may the minimum assessment be less than 25% of the full year's
assessment."
Our
question is specific to the definition of the word "transitory". Does
"transitory" mean any tangible personal property brought into
the state after the assessment date other than the specific exceptions
mentioned in the statute, or does "transitory" have a narrower
meaning?
For
instance, if a business relocates to Utah from another state in June, and
brings in furniture, fixtures, and other equipment, is all of their tangible personal
property subject to the proportional transitory assessment at that point in
time?
We
have historically applied the transitory assessment only to construction and
similar equipment which is commonly moved from state to state by its owner. In
this sense," transitory" would more narrowly define property which is
commonly moved about from state to state and exclude other property such as
furniture, computers, manufacturing equipment, etc.
We
look forward to your response.
Sincerely,
XXXXX
XXXXX
County Assessor
XXXXX
XXXXX
County Assessor
2001
S. State Street, Suite N2300
Salt
Lake City, Utah 84190-3329
Re: Ad valorem tax on transitory personal
property
Dear
Mr. XXXXX,
We have received your request for
assistance is defining the application of section
59-2-402
of the Tax Code. We offer the following
guidance:
Section 59-2-402 states that “[i]f
any taxable transitory personal property, other than property exempted under
Subsection (2), is brought into the state at any time after the assessment
date, a proportional assessment shall be made in accordance with rules adopted
by the commission . . . .” (Emphasis added.)
The word “transitory” defines the reach of this section. If the proportional tax applied to any
personal property brought into the state, the word “transitory” would serve no
purpose. Therefore, we define transitory
personal property as a class of personal property that is not only moveable,
but that is moved from place to place as a condition of its use. Exceptions to this definition are those
exemptions set out in subsection (2) of the statute.
Although office furniture is
moveable, it is not normally considered transitory. That is, office furniture is generally intended to remain in one
location over the life of the furniture or so long as the business occupies the
office space.
Thank you for directing this
question to us. If you have other
questions, please let us know.
For
the Commission,
XXXXX,
Commissioner