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Tax Commission reports 380+ "novel vehicles" and asks Legislature for direction on fees
Summary
The Utah State Tax Commission presented its first annual report on "novel vehicles," identifying more than 380 vehicles currently classified as novel and asking the Legislature whether to retain the nominal $2 annual fee, exempt them from registration, or subject them to regular registration and property taxes.
The Utah State Tax Commission presented its first statutorily required annual report on novel vehicle registrations, reporting that 380‑plus vehicles were currently categorized as novel and asking the Legislature to decide whether to preserve the novel classification, exempt the vehicles from registration or subject them to a regular registration fee.
Jason Gardner, deputy executive director of the Utah State Tax Commission, told the Senate Transportation Interim Committee that the commission defines novel vehicles under Utah Code 41‑27‑301 as vehicles that do not clearly fit an existing category, have unique characteristics that make classification unclear, or fail a reasonable‑person test. Gardner said the commission tends to err on the side of labeling ambiguous vehicles as "novel" because that classification carries appeal rights and misclassification would create administrative burdens.
Gardner identified track sleds (often called "snow dogs") and small K‑class cars and trucks as the most common novel vehicles. He said 149 track sleds and 231 K‑class vehicles were registered in Utah under the novel‑vehicle classification. Under current law, Gardner said, novel vehicles pay $1 for registration and $1 in lieu of property tax (total $2 annually), instead of standard registration and property‑tax charges.
Representative Jake Sawyer asked whether K‑class vehicles currently are registered and whether they operate on public roads. Gardner confirmed that many are registered and may be titled for on‑road or off‑highway use depending on the registration type. Representative Karianne Lisonbee and Representative Thurston discussed the comparatively small counts and expressed a preference for leaving the vehicles in the novel category for now until registries grow enough to warrant legislative changes.
The commission’s report asks the Legislature to choose among keeping the current novel classification, exempting certain vehicles from registration, or setting a specific regular registration fee for those vehicle types. Gardner said the report was presented so the committee could decide whether to pursue legislation.
The committee took no immediate legislative action on the report during the hearing and received Gardner's presentation for committee consideration.
