98-046
Response
July 7, 1998
February
19, 1998
Dear
Ms. NAME:
The
COMPANY A respectfully requests exemption from the Utah tax on private rail
cars.
Our
request for this exemption is based on the unique use of rail car #####, the
COMPANY A Train, which is:
• A service provided in the public interest by the COMPANY A
• A training car not used for revenue producing transport.
No rail car mileage credit is paid to COMPANY A for this car.
• A Classroom where students actually can go inside to learn
about rail car valves, fittings and emergency response actions and procedures.
• Used to train local emergency response personnel
throughout the United States and Canada.
• A community outreach program, not only to communities
where we make or ship our products but also to communities through which our
products pass.
XXXXX
training is provided free to students -- typically police, fire and emergency medical
personnel.
Approximately 5000 public sector emergency responders receive this training each year.
Additionally, we teach our own employees how to properly handle railroad
tankcars. Not only do we not receive any revenue from #####, we also have a
significant cost associated with the operation of this program.
We
believe that the private rail car tax is not appropriate for this unique
training tool and request an exemption from the tax. Attached is a brochure
that may provide you with more information about ##### and the XXXXX program.
Thank
you for your consideration. We look forward to your agreement with our
position, and no tax on this particular rail car.
Very
truly yours,
NAME
July
7, 1998
NAME
ADDRESS
CITY,
STATE ZIP
RE: Advisory
Opinion - Property Tax Exemption for Private Rail Car
Dear
NAME,
We have received your request for an
exemption from Utah property taxes for a private rail car owned by the COMPANY
A. The rail car is used for safety and
emergency response training and not used for revenue producing transport. We offer the following.
Utah Code Ann. §59-2-1101(2) (copy
enclosed) lists the general property tax exemptions authorized by the Utah
State Legislature. You will notice that
subsection (d) of this statute does provide for the exemption of property used
for educational purposes, but only if that property is owned by a nonprofit
entity. Unfortunately, the rail car at
issue here is owned by the COMPANY A, not a nonprofit entity. While the Commission is aware of and
appreciates the service you provide the public through your educational
efforts, we may only enforce the laws enacted by the Legislature. We may not expand them, even for worthy
purposes such as yours. Thus, should
the rail car be present in the state, it is subject to Utah property taxation
under the current statutes.
Please contact us should you have
any other questions.
For
the Commission,
Joe
B. Pacheco
Commissioner
^^