Do out-of-state buses brought into Utah temporarily for a major event need Utah vehicle registration, license plates, or Utah property tax?

Plain-English summary

Utah's Division of Motor Vehicles asked the Tax Commission for policy guidance on how to handle the roughly 1,200+ buses that private companies and out-of-state transit systems were bringing into Utah for a large event, identified only as "the EVENT" throughout the redacted ruling (the specific event is not named in the available text). The buses fell into several categories: donated "spectator" buses transporting ticketholders for free, leased spectator buses, and coach buses carrying media and sponsors for pay. The Commission addressed registration, property tax, and license plates for all of them.

Registration: Buses simply "warehoused" in Utah before the event don't need to register at all. A bus driven into Utah can get a 96-hour temporary registration at the border. Under Utah Code Ann. § 41-1a-202(2)(a), a bus owned by a nonresident and properly registered in its home state doesn't need Utah registration — this covered most of the out-of-state buses, including 65 buses from a state with no registration/plating requirements of its own (those were treated as "properly registered" there by virtue of full compliance with that state's law). But buses owned by companies that are already Utah residents don't qualify for the nonresident exemption, even if registered elsewhere — and 12 new buses arriving straight from the factory with no home-state registration at all had to register in Utah. Any bus that did have to register for three months or less qualified for a reduced fee (30% of the normal registration fee) under § 41-1a-1207.

Property tax: All these buses count as "transitory personal property" under Utah Admin. Rule R884-24P-65. The tax treatment forks on whether a bus is:

• "County-assessed" (§ 59-2-201(8)) — e.g., a bus donated for free ticketholder transport, not used "for hire" — which is only taxed proportionally after 90 consecutive days in Utah (§ 59-2-402(1)); since none of these buses stayed that long, they escaped Utah property tax entirely.
• "State-assessed" (§ 59-2-201(29)(a)) — any bus used to transport passengers, freight, or property for hire — which owes Utah ad valorem property tax immediately upon arrival unless the owner shows current-year property tax was already paid to another state (§ 59-2-201(2)(b)). If a bus is removed from Utah before year-end, the owner can get a refund of the proportionate unused share (§ 59-2-402(5)).

License plates: Only required where Utah registration itself is required — no separate plating obligation exists.

What this means for you

Event organizers and transportation companies bringing vehicles into Utah temporarily

Whether you owe Utah registration, plates, or property tax does NOT simply depend on how briefly your vehicles are in the state — it depends on (1) whether the owner is a Utah resident, (2) whether the vehicle is properly registered elsewhere, and (3) whether the vehicle is used "for hire" (state-assessed, taxed on arrival) versus free/non-commercial use (county-assessed, taxed only after 90 days). Plan differently for a fleet of donated free-shuttle buses than for a fleet of paid charter coaches.

Businesses that are Utah residents bringing in out-of-state-registered vehicles

The nonresident registration exemption (§ 41-1a-202(2)(a)) does not protect you if you're a Utah resident business, even if your vehicles carry valid out-of-state plates — you may still need to register them in Utah.

Accountants and tax professionals

This ruling is a good template for any temporary-fleet-in-Utah property tax question: identify state-assessed vs. county-assessed status first (turns on for-hire use, not vehicle type), then apply the 90-day proportional-assessment threshold only to county-assessed vehicles, and remember the § 59-2-402(5) refund mechanism for state-assessed vehicles removed before year-end.

Common questions

Q: Does a short stay in Utah automatically exempt my vehicle from Utah property tax?
A: Only if it's "county-assessed" (not used for hire) and stays under 90 consecutive days. "State-assessed" (for-hire) vehicles owe Utah property tax on arrival regardless of how briefly they stay, subject to a proportionate refund if removed before year-end.

Q: My out-of-state vehicle isn't required to be registered or plated in its home state at all — does that cause a problem in Utah?
A: Not necessarily. The Commission treated buses that were in full legal compliance with a home state that has no registration/plating requirement as "properly registered" there, so the Utah nonresident exemption still applied.

Q: Does this ruling apply to my situation?
A: A private letter ruling binds the Commission only as to the taxpayer and facts it addresses. It's a useful illustration of how the state-assessed/county-assessed and nonresident-registration rules interact, but confirm your own facts with a tax professional.

Citations and references

Statutes and rules:

• Utah Code Ann. § 59-2-402(1), (2), (5) (transitory personal property; proportional assessment; refund)
• Utah Code Ann. § 59-2-201(29)(a) (state-assessed vehicle)
• Utah Code Ann. § 59-2-201(8) (county-assessed vehicle)
• Utah Code Ann. § 59-2-201(2)(b) (property tax due unless paid elsewhere)
• Utah Code Ann. § 41-1a-202(1), (2)(a) (nonresident registration exemption)
• Utah Code Ann. § 41-1a-1207 (reduced short-term registration fee)
• Utah Code Ann. § 41-1a-401 (license plate requirement)
• Utah Admin. Rule R884-24P-65 (Rule 65 — transitory personal property)

Source

• Landing page: https://tax.utah.gov/commission/rulings/
• Original PDF: https://files.tax.utah.gov/tax/commission/ruling/01-035.htm

Original ruling text

REQUEST
LETTER

TO: TP REPRESENTATIVE

FROM: NAME

DATE: DATE

NAME, we are in need of an advisory
opinion. We have a few companies who
operate in the State of Utah, who are looking to bring in additional buses for
the EVENT. These are buses for hire and
are not for use by ORGANIZATION. These
buses are not IRP-registered, however they are registered in another
state. How do we register them in Utah? If they come into Utah after DATE and only
stay for the EVENT period of time, do we collect property tax? Do we need to plate them? Do we collect only registration fees?

I would recommend these companies either add
the vehicle to their IRP fleet, if they have one or to start an IRP account if
they do not have one. While this is the
easiest way, I am sure we could force them to open an IRP account if they do
not want one. So for those who do not
want to open an IRP account, I would like for know how we are to register them.

This is similar to the Bus issue ORGANIZATION
is going to ask for an opinion on.

I am out of the office all this week, will
return on Monday. If you or TAXPAYER
REP need to talk with me before that time please call me on my cell PHONE. I will check my messages each day and will
call back.

Thanks

NAME

RESPONSE
LETTER

DATE

RE: Advisory
Opinion Concerning Registration, Taxation, and Plating of Buses During the
EVENT

Dear NAME,

You have requested the Commission to provide policy
guidance to the Division of Motor Vehicles (�division�) on whether it should
register buses that are owned by private companies and brought into Utah during
the EVENT. You also inquire whether
these owners must obtain Utah license plates and pay Utah property taxes. You have indicated in a conversation
subsequent to your request that the buses at issue would weigh over 27,000
pounds. Your request is one piece of a
larger issue involving all buses brought into Utah for the EVENT . As the Division of Motor Vehicle will need
policy guidance from the Commission on how to administer the other bus issues
as well, we will answer your question as part of a broader discussion regarding
all the buses brought into Utah for the EVENT.

Representatives from the Tax Commission recently met with
the ORGANIZATION and received the following information. The buses that will be brought into Utah for
the EVENT include the following types and will be used for different purposes,
as explained below:

1.
ORGANIZATION
Spectator Buses: ORGANIZATION is contracting with
organizations around the country for use of �transit� type buses (buses with
two doors that are easy to load and can accommodate standing passengers). 700 to 800 buses are being brought to Utah
for use during the ORGANIZATION. While
the contracts call for all buses to be in Utah no later than DATE, many of the
buses will arrive after this date.
Until the buses are used next DATE, they are being �warehoused� at
various facilities in Utah. These buses
typically weigh between 26,000 and 30,000 pounds.

Type A:
About 700 buses (118 from COMPANY; 582 from out-of-state transit
systems, with 150 of these already in Utah).
All of these buses will be donated without compensation by municipal
transit systems around the country to ORGANIZATION for use during the EVENT. ORGANIZATION will hire drivers for the
buses, with their salaries and other expenses paid by UDOT with federal
funds. The buses will be used to
transport persons who show a ticket to an EVENT to that event at no charge. Almost all of these buses are already plated
in the state of origin, except for: 1) 65 from STATE where such buses have no
plating, registration, or property tax requirements; and 2) 12 new buses
donated by STATE that are arriving in Utah directly from the factory before
going to STATE. The ones without plates
are being trucked to Utah; ORGANIZATION did not indicate if the other buses
would be trucked or driven to Utah.

Type B:
ORGANIZATION will lease, for $$$$$$ a day, $$$$$$ to $$$$$$ spectator
buses from a private dealer in STATE.
These buses will arrive in Utah with STATE dealer plates, but will be
used in same manner as TYPE A buses.

2.
Media and Sponsor Buses. ORGANIZATION is contracting to lease a number of �coach� buses to
transport the media and ORGAN IZATION sponsors.

Media Buses: ORGANIZATION
is arranging for private companies, such as COMPANY, to provide 300 coach buses
to transport media persons during the EVENT.
The companies will provide their own drivers and will be paid by
ORGANIZATION to transport these persons.
Some of the buses will come from the Utah fleet, while others may come
from out-of-state. No information was
given concerning the registration of these vehicles, but it assumed they will
arrive in Utah with the plates of the origin states on them.

Sponsor Buses: ORGANIZATION is arranging for a private company, COMPANY, to
provide 200 coach buses to transport ORGANIZATION sponsors during the
EVENT. The companies will provide their
own drivers and will be paid by ORGANIZATION to transport representatives of
its sponsors. Although we do not know
where the buses will come from, it is assumed they will arrive in Utah with the
plates of the origin states on them.

A. Registration. None of the buses that arrive this year will
be �used� in Utah during date. They
will be �warehoused� until DATE.
Accordingly, there is no need to register them in Utah for DATE. Any bus being driven into Utah to the
warehouse site can obtain a 96-hour temporary registration at the border to
enter the state. Should any bus not be
warehoused in DATE, registration may be required, as set forth in Section II.A.
below.

B. Property Taxes. While buses warehoused in Utah during DATE
are not subject to registration, they may be subject to property tax.[1] Under Utah Admin. Rule 884-24P-65 (�Rule 65�),
any bus would be considered �transitory personal property,� which is defined as
�tangible personal property that is used or operated primarily at a location
other than a fixed place of business of the property owner or lessee.�

Transitory
personal property is usually subject to a proportional assessment once it has
been in Utah 90 consecutive days in a calendar year if it arrives in the state
after DATE. Utah Code Ann.
�59-2-402(1); Section C of Rule 65.
However, under Section 59-2-402(2), certain transitory personal property
is not subject to proportional assessment, including �state-assessed
vehicles.� If a bus subject to Utah�s
property tax is determined to be a �state-assessed vehicle,� it is subject to
ad valorem property taxes upon its arrival in Utah. Thus, different tax consequences arise for a bus that is deemed a
�state-assessed vehicle� versus those for one deemed a �county-assessed
vehicle.�

A
�state-assessed vehicle� is defined in Utah Code Ann. �59-2-201(29)(a) as:

(i)
any commercial vehicle, trailer, or semitrailer which operates interstate or
intrastate to transport passengers, freight, merchandise, or other property for
hire; or

(ii)
any commercial vehicle, trailer, or semitrailer which operates interstate and
transports the vehicle owner's goods or property in furtherance of the owner's
commercial enterprise.

A
�county-assessed vehicle� is defined in Section 59-2-201(8) to include:

(a)
any commercial vehicle, trailer, or semitrailer which is not apportioned under
Section 41-1a-301 and is not operated interstate to transport the vehicle
owner's goods or property in furtherance of the owner's commercial
enterprise;

(b)
any passenger vehicle owned by a business and used by its employees for
transportation as a company car or vanpool vehicle; and

(c)
vehicles which are:

(i)
especially constructed for towing or wrecking, and which are not otherwise used
to transport goods, merchandise, or people for compensation;

(ii)
used or licensed as taxicabs or limousines;

(iii)
used as rental passenger cars, travel trailers, or motor homes;

(iv)
used or licensed in this state for use as ambulances or hearses;

(v)
especially designed and used for garbage and rubbish collection; or

(vi)
used exclusively to transport students or their instructors to or from any
private, public, or religious school or school activities.

From
these definitions, the Commission has determined that any bus whose use is
donated to, and then used by, ORGANIZATION to transport passengers for free is
a �county-assessed� vehicle for two reasons.
First, it is not used �for hire� as required under the definition for
�state-assessed vehicle;� and second, because it is not apportioned under IRP
and is not used transport goods or property, such a bus meets the definition of
�county assessed vehicle� under subsection (8)(a) above. Accordingly, Type A Spectator buses
described earlier will be considered �county-assessed� buses for purposes of
property tax and, as transitory personal property, will be subject to proportional
assessment. As none of the buses
brought in from out-of-state will be in Utah for 90 consecutive days in DATE,
they will not be subject DATE Utah property tax.

However,
all other buses brought into the state will be considered �state-assessed vehicles�
because they will be used to transport passengers for hire. This will include the Type B Spectator buses
leased from the STATE dealer, as well as the Media and ORGANIZATION buses
leased from COMPANY, COMPANY, and other entities. Utah Code Ann. �59-2-201(2)(b) requires the collection of
property taxes unless current year property taxes have been paid to another
state.

At
issue is whether a state-assessed bus brought into Utah that has paid no
property taxes in another state because the other state does not impose
property tax must pay Utah property taxes upon its arrival. In this instance, the owner has paid all
taxes or fees imposed by the other state; in this instance, zero. The current practice is that taxes must
have been paid to another state for the current year. If no property taxes have been paid, Utah
taxes are due. Accordingly, any
�state-assessed vehicle� that arrives in Utah in DATE is subject to Utah�s ad
valorem property tax unless it shows evidence that DATE taxes were paid to another
state.[2]

A.
Registration: Utah Code
Ann. �41-1a-202(2)(a) provides that registration in Utah is not required for
any:

vehicle registered in another state and owned by a nonresident of the state or operating under a temporary registration permit issued by the division or a dealer authorized by this chapter, driven or moved upon a highway in conformance with the provisions of this chapter relating to manufacturers, transporters, dealers, lien holders, or interstate vehicles[.]

If a vehicle is owned by a nonresident and is registered in another state, Utah registration is not necessary. Thus, the Type A Spectator buses owned by out-of-state municipalities will not need to register in Utah if they are properly registered in their respective �home� states. The 65 buses from STATE are not required to be registered under STATE law. Because they are in full compliance with the laws of their home state, they are deemed to be properly registered in that state and, as a result, need not be registered in Utah.

Similarly, Type B Spectator buses, Media buses, or ORGANIZATION Sponsor buses will not need be registered in Utah if their owner is a Utah nonresident and they are properly registered in another state. Thus, if the Type B buses owned by the STATE dealer are registered in STATE and the dealer is not considered a Utah resident as defined in Section 41-1a-202(1), then those buses are not required to be registered in Utah. On the other hand, 12 of the Type A Spectator buses are arriving in Utah directly from the factory. Though they may be owned by a Utah nonresident, they must be registered in Utah if they have not been properly registered in another state.

Some of the companies bringing in buses for the EVENT are already Utah residents, such as COMPANY. Subsequently, their buses do not qualify for the exemption from registration even if they are properly registered in another state. Nevertheless, it appears that the buses brought in from another state will remain in Utah for no more than three months in DATE. If so, any bus that is required to be registered in Utah will qualify for the reduced registration fee as provided for in Utah Code Ann. �41-1a-1207. This section allows a vehicle exceeding 12,000 pounds to be registered for less than a 12-month period. If such a vehicle is registered for three months or less, the registration fee is 30% of the regular registration fee.

B.
Property Taxes.
Whether a �county-assessed vehicle� or a �state-assessed vehicle,� any
bus in Utah on DATE, is subject to the entire yearly property tax assessment.
However, because buses are transitory personal property, Section 59-2-402(5)
allows an owner who has paid property taxes and removes the bus from the state
prior to DATE to receive a refund of a proportionate share of the taxes. Since all or most of the buses brought into
Utah for the EVENT will be in Utah for less than three months in DATE, they
will probably all be subject to the proportionate refund. As the circumstances involving the EVENT are
unique and all parties already know the proportionate amount of taxes that will
be due, the Commission sees no need to require ORGANIZATION to pay the taxes
for the full year �upfront� and then receive a refund when the buses are
removed. Accordingly, the Commission
intends to work with ORGANIZATION, the counties, and the division to implement
a procedure for ORGANIZATION to account for and pay only the amount of
proportionate taxes that will be due instead of requiring payment of the entire
tax amount and refunding the majority of it in the future.

For buses brought into Utah after DATE, taxation differs for �county-assessed vehicles� and �state-assessed vehicles.� These differences were explained earlier in the section discussing taxation of vehicles brought into Utah in DATE, with the guidelines offered in that section also applicable to buses brought into Utah after DATE.

III. License Plates. Utah license
plates are only required on those vehicles registered in Utah. Utah Code Ann. �41-1a-401. Accordingly, any bus required to be
registered in Utah subject to the above policy guidelines will also need to
display a Utah license plate. If Utah
registration is not required, then there is no requirement to display a Utah
license plate. Nevertheless, buses such
as the 65 Type A Spectator buses from STATE are neither required to be plated
in STATE nor required to be registered and plated in Utah. Because they have no plates of any sort,
such buses may attract inquiries from law enforcement personnel. To forego such additional inquiries, the
Commission recommends that the division, upon request from ORGANIZATION, issue
some type of temporary registration as a courtesy to ORGANIZATION for any bus
not required to be registered in Utah, but which does not have a license plate.

We understand that ORGANIZATION can direct any calls
regarding the implementation of these guidelines to you at PHONE. The Commission appreciates your attention in
administering these concerns.

For
the Commission,

Marc
B. Johnson

Commissioner

MBJ/KC

01-035

[1] For purposes of discussion, all buses
discussed in this opinion are assumed not to be part of an International
Registration Plan (�IRP�) fleet. Were
the buses part of such a fleet, registration and property tax issues would be
automatically handled through the IRP reporting guidelines and apportionment of
the fees paid under that program.

[2] Should a state-assessed vehicle that is
transitory personal property be subject to Utah property taxes, Section 59-2-402(5)
would allow for a refund of a proportionate amount of taxes paid should that
vehicle be removed from Utah before December.