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Senate backs five-year depreciation for certain refinery pollution-control equipment
Summary
Senate passed SB 174 to change tax treatment of pollution-control equipment at refineries with a five‑year depreciation schedule (phasing value toward zero) and an administrative petition process; sponsor said the change aligns with federal IRS rules.
The Utah Senate approved SB 174 on Feb. 16, a measure that adjusts property-tax treatment for certain pollution-control equipment at refineries in Salt Lake and Davis counties. Sponsor Senator Vickers said that under current State Tax Commission Rule 33 such equipment is taxed at a 50% personal-property rate, and the bill would move to a five-year depreciation schedule (starting at an 80% value and declining to zero) for equipment purchased to meet federal or state pollution-control requirements and that has no intrinsic production value.
Senator Vickers said the provision follows IRS guidance allowing the fair market value of qualifying equipment to be reduced to zero and that parties could petition the Tax Commission to adjust fair market value up or down at any time. No floor opposition was recorded on the transcript and the bill passed on final reading; the clerk reported 27 yea, 0 nay, 2 absent and the measure will be sent to the House.
Next steps: the measure moves to the House; tax commission procedures and any petitions would follow implementation if the bill becomes law.
