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House approves SB 174 to change tax valuation for refinery pollution-control equipment
Summary
The Utah House passed SB 174 to allow county assessors to value pollution-control equipment using an accelerated obsolescence schedule modeled on IRS rules, creating a higher first-year valuation that declines to a 6% floor over five years; supporters said it addresses unfair tax burdens on refineries.
The Utah House on March 2 passed Senate Bill 174, a bill that changes how counties value pollution-control equipment at refineries on the Wasatch Front.
Sponsor Representative Val Peterson said the bill was modeled on Internal Revenue Service guidance and is meant to reflect the rapid economic obsolescence of pollution-control equipment. "This bill models the tax evaluation of this equipment after the IRS rule," Peterson said, explaining the proposed schedule: an 80% valuation in the first year after acquisition, declining in 20 percentage-point increments to a 6% floor in the fifth year. He said the change gives county assessors a clearer method and an appeals process for taxpayers.
Representative Joel Briscoe questioned that approach, arguing pollution-control equipment does provide an economic benefit by keeping refineries in compliance with the Clean Air Act and thereby avoiding plant shutdowns. "Without that pollution control equipment, the refineries would be out of compliance with the Clean Air Act," Briscoe said.
Representative Strong said he supported the bill, noting pollution-control equipment often provides air-quality benefits but does not add resale or manufacturing value because the systems are highly customized.
The bill’s sponsor and supporters said the change is limited to equipment purchased to meet state or federal pollution mandates and that the amendment provides an appeal pathway for taxpayers and discretion for assessors.
The House approved SB 174 by a recorded vote of 65 yes to 5 no. The bill will move forward for further Senate consideration as provided by the legislative process.
What’s next: The House vote sends the measure on its procedural path toward final approval and return to the Senate for any further action required under legislative rules.
