Tax Commission, Auditing

Rule R865-14W

Mineral Producers' Withholding Tax

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 35604
Filed: 01/03/2012 11:25:17 AM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 59-6-101 defines terms used in this chapter. Section 59-6-102 requires a producer to withhold an amount equal to 5% of payments made for the production of minerals in this state and provides for a credit for a person from whom payment has been withheld. Section 59-6-103 requires producers to file a return with the commission on forms prescribed by the commission. Section 59-6-104 provides that the provisions of the income tax withholding, Title 59, Chapter 10, Part 4, shall apply to this chapter.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

None.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

Section R865-14W-1 defines "working interest owner," "first purchaser," "person," and "producer" with regard to the state mineral producer's withholding tax. Clarifies withholding requirements, who is responsible to pay tax, including unpaid tax, and how claims for credits against the withholding tax should be made. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

• Christa Johnson at the above address, by phone at 801-297-3901, by FAX at 801-297-3907, or by Internet E-mail at cj@utah.gov

Authorized by:

Michael Cragun, Tax Commissioner

Effective:

01/03/2012