Is personal property brought into Utah temporarily, like broadcast equipment for the 2002 Winter Olympics, subject to Utah property tax?

Plain-English summary

A county assessor's office asked the Utah State Tax Commission how property tax would apply to the flood of equipment coming into the state for the 2002 Winter Olympics — broadcast gear, communications and timing equipment, outside seating, temporary manufactured housing, and venue-specific equipment, much of it leased short-term and owned by domestic or foreign broadcasters.

The Commission's answer turns entirely on timing. Property physically present in Utah on January 1 (the "lien date") is taxable under § 59-2-103, full stop. Property that shows up after January 1 is instead governed by the transitory personal property rules (§§ 59-2-401, -402): it's taxable only if it stays in Utah for 90 consecutive days in that calendar year, per Utah Admin. Rule R884-24P-65 ("Rule 65"). "Transitory" means used or operated primarily somewhere other than the owner's fixed place of business — which describes traveling broadcast trucks, portable timing systems, and similar Olympic-support gear.

Because Olympic-related equipment predictably repeats year after year for recurring international events, the Commission told the assessor it's reasonable to presume all such property is transitory, putting the burden on the property owner to prove otherwise if they disagree.

Foreign-government-owned property gets a separate, narrower path to exemption: it must (1) actually be used by that country's official mission or delegation (not just owned by the government), and (2) belong to a country that has a bilateral reciprocation program with the United States (meaning U.S. government property gets the same tax break in that country). Both conditions must be checked country-by-country, and the Commission suggested assessors loop in the State Department's Office of Foreign Missions once a likely candidate is identified.

What this means for you

County assessors handling large temporary events

If your county hosts a recurring event that draws in outside equipment — broadcast trucks, temporary seating, staging — you can treat that equipment as presumptively "transitory" and require the owner to affirmatively prove it doesn't meet the 90-consecutive-day threshold, rather than tracking down every piece of gear yourself.

Event organizers, broadcasters, and equipment owners

If you're bringing equipment into Utah for a short-term event, the number that matters is 90 consecutive days in the calendar year. Stay under that (and don't have anything present on January 1), and the equipment isn't subject to Utah property tax at all. Cross that line, and it's taxed as transitory personal property — at least 25% of a full year's assessment under § 59-2-402.

Foreign broadcasters and delegations

Government ownership alone doesn't exempt equipment. You need both official-mission use and an actual U.S.-recognized reciprocity arrangement with your home country — worth confirming in advance rather than assuming exemption.

Common questions

Q: My company's equipment arrives in Utah in November for a one-time event and leaves in December. Do I owe Utah property tax on it?
A: Only if it's present in Utah for 90 consecutive days during that calendar year, per Rule R884-24P-65. If it leaves before hitting that threshold, it isn't taxable as transitory personal property.

Q: What if the property is already in Utah on January 1?
A: Then the 90-day transitory test doesn't apply — it's taxable under the ordinary lien-date rule of § 59-2-103, regardless of how briefly it stays afterward.

Q: Is equipment owned by a foreign government's TV network automatically tax-exempt?
A: No. It's exempt only if it's used by that country's official mission or delegation and the U.S. has a bilateral tax-reciprocity arrangement with that country. Absent both, it's taxable like any other transitory or lien-date property.

Q: Can I rely on this opinion for my own equipment or event?
A: Not automatically — this is one Commission's opinion issued to one requester based on facts about the 2002 Olympics. It shows how the transitory-property rules work, but your specific facts (what the property is, how long it stays, who owns it) control the outcome.

Citations and references

Statutes and rules:

• Utah Code Ann. § 59-2-103 (property present on the lien date is taxable)
• Utah Code Ann. § 59-2-401 (assessment of transitory personal property)
• Utah Code Ann. § 59-2-402 (minimum 25% assessment; underlies the 90-day rule)
• Utah Admin. Rule R884-24P-65 ("Rule 65": defines transitory personal property and the 90-consecutive-day threshold)

Source

• Landing page: https://tax.utah.gov/commission/rulings/
• Original page: https://files.tax.utah.gov/tax/commission/ruling/00-004.htm

Original ruling text

REQUEST LETTER

00‑004

Response February 28, 2001

January 20, 2000

Pam Hendrickson, Chair

Utah State Tax Commission

210 North 1950 West

Salt Lake City, Utah 84134

Re: Request for Advisory Opinion

Dear Commissioner Hendrickson;

As a result of several inquiries to our office, we are requesting an advisory opinion from the Tax Commission regarding the taxable status of personal property which will be brought into the state to accommodate the 2002 Olympics. There will be a substantial amount of broadcast equipment, both from national and international media concerns, communications equipment, timing equipment, outside seating, the possibility of manufactured housing, in addition to special equipment used at the individual venues. The property also may be subject to short‑term lease agreements.

Under normal circumstances all tangible, non‑exempt personal property present in STATE as of January 1 is taxable. It is the intention of this office to assess all property, which is not otherwise exempt, to its owner and which has situs as of January 1, 2002. Our concerns relate to the following issues:

1. If the property enters the state after the lien date, is it subject to a transitory assessment? For example, the media may use broadcast equipment which may or may not be mounted on a vehicle, but is moved about on a regular basis to feed a signal from various sporting events throughout the year. When it arrives in STATE to broadcast Olympic events, does that equipment fit the definition of "transitory property@?

2. Other equipment may include computers, communications equipment, timing devices, etc., which could be in place either prior to the lien date or after the lien date. Our assumption is that if the property is not otherwise exempt, it is fully taxable to its owner as of January 1, 2002. However, does property of this nature arriving after the lien date fit the definition of "transitory property"?

3. Broadcast equipment may be brought into the state from foreign broadcast companies and may be privately owned or state owned, the taxation of which may be controlled by federal treaties. Would the Commission provide advice to the counties with respect to the assessment of both privately and state owned foreign property?

Since the Olympic venues will take place in several COUNTY Front Counties, we feel that it would be advisable to establish policies in advance in order to treat this property uniformly

Sincerely,

NAME

NAME RESPONSE LETTER

February 28, 2001

RE: Applying Property Tax on Personal Property Brought into Utah for the 2002 Winter Olympic Games

Dear Mr. NAME

You have requested the Commission to address whether personal property brought into STATE to accommodate the 2002 Winter Olympic Games is subject to property tax. If tangible personal property is present in STATE on January 1, the lien date, it is subject to taxation under '59-2-103. Personal property brought into STATE after the lien date is subject to transitory personal property tax under Utah Code Ann. '59-2-402.

Length of Time in Utah for Transitory
Taxation. Your first question deals
with whether or not personal property is subject to transitory assessment upon
its entering STATE. Utah Code Ann.
�59-2-401 requires the assessment of transitory personal property. Section 59-2-402, however, provides that no
transitory personal property may be assessed at �less than 25% of the full
year�s assessment.� The Commission has
recently adopted Utah Admin. Rule R884-24P-65 (ARule
65"), which interprets these provisions to mean that personal property
entering STATE after the lien date is only taxable if that property is present
in Utah for 90 consecutive days in that calendar year. Accordingly, if personal property is brought
into STATE after the lien date and remains in STATE less than 90 consecutive
days during that calendar year, it will not be subject to STATE transitory
personal property tax.

Property Subject to Transitory Taxation.
You list examples of equipment that may be brought into STATE temporarily for
Olympic Games purposes. The list
includes broadcast, communications, and timing equipment; outside seating;
manufactured housing that serves a temporary purpose; special equipment used at
the individual venues; and computers.
Rule R884-24P-65 defines Atransitory
personal property@ as Aproperty that is used or
operated primarily at a location other than a fixed place of business of the
property owner or lessee.@ As a result, personal property may be taxed
as transitory personal property only if it is used or operated primarily
at a location other than a fixed place of business of the owner. The examples you ask about satisfy the
definition of transitory personal property and may be taxed as such if they are
present in STATE at least 90 consecutive days in a calendar year.

There may be other personal property brought into STATE on a temporary basis for the Olympic Games that is not taxable because it is not transitory. Given the recurring nature of international sporting events in general, and the Olympics in particular, however, we believe you are justified in presuming that all tangible personal property brought into the state in connection with the Olympics is �transitory.� The property owner would then have the burden of showing that any such property does not meet the definition. If the property owner made such a claim, we would be happy to provide additional guidance to you on the basis of the facts and circumstances presented.

Foreign Exemption. You also ask if personal property owned by a
foreign government is exempt from taxation.
For such personal property to be exempt, two conditions must exist. First, the personal property must be used by
the country=s foreign
mission or official delegations. Second, the foreign country and the United
States must participate in a bilateral reciprocation program; i.e., personal
property owned by the United States would be exempt from property tax in that
foreign country.

Foreign
Mission or Official Delegations. In
general, if a foreign country=s
personal property is located in the United States and it is not being used by
that government=s
foreign mission or official delegations, it may be taxed in the United
States. For example, military aircraft
purchased by the Australian Ministry of Defense was deemed to be subject to use
tax in Georgia. However, had the
aircraft been purchased by the Australia Foreign Mission, it would have been
tax-exempt. The broadcast and other equipment
you specifically ask about, if owned by a foreign country, would probably not
be associated with that country=s
foreign mission or its official delegations.
If this is the case, the personal property is subject to taxes imposed
by taxing jurisdictions ( including county governments) in the United
States. Again, it must be determined in
each circumstance whether the personal property is being used by a foreign
mission or official delegation or not, which may require consultation with the
U.S. State Department, Office of Foreign Missions.

Bilateral
Reciprocation Program. Should
personal property owned by a foreign country be used by that country=s foreign mission or
official delegation, it still may be subject to taxation, depending upon the
country that owns it. Under a bilateral
reciprocation program, the United States recognizes that a specific country is
entitled to tax exemptions in the United States only if the United States is
entitled to the same exemptions in that country. Accordingly, whether the property owned by a foreign country and
used by its foreign mission or delegation is exempt from STATE property tax has
to be determined on a country by country basis. Some countries are not exempt from any United States taxes,
others are exempt from all taxes, while most are partially exempt, depending on
which exemptions are offered to the United States. Because of this complexity and because the particular exemptions
provided by other countries are in constant flux, the Office of Foreign Missions
may be best able to determine whether personal property used by a foreign
mission or official delegation is subject to Utah=s
property taxes. We suggest that you
identify all such property when it is brought into your county. Once you have identified the owner of the
property, and established that it is reasonably expected to be present in STATE
for the requisite 90 days, please contact the Property Tax Division. We will then contact the State Department
Office of Foreign Missions on your behalf for further guidance based on the
particular country and the specific owner involved.

Please contact us if you have any other questions.

For the Commission,

Marc B. Johnson

Commissioner

MBJ/KC

00-004