§ 59-2-1103. State lands exemption -- Exceptions to exemption.

(1) Lands to which title remains in the state, which are held or occupied by any person under a contract of sale or lease from the state, are exempt from taxation.

(2) This section does not exempt the taxation of:

(a) improvements on state lands;

(b)

(i) any interest in state lands to the extent of money paid or due in part payment of the purchase price, regardless of whether an extension of payment was granted prior to the levying of this tax; or

(ii) any interest remaining in the state in state lands after subtracting amounts paid or due in part payment of the purchase price as provided in Subsection (2)(b)(i) under a contract of sale that is subject to the privilege tax under Subsection 59-4-101(1)(b); or

(c) land otherwise subject to the privilege tax under Section 59-4-101.

(3)

(a) If final payment has been made under Subsection (1) on state lands, the contract of sale shall be regarded as passing title to the purchaser or assignee.

(b) The state agency from which the interest was purchased shall certify the receipt of final payment to the commission.

(4) Any tax levied on the interest of a purchaser of state lands before title passes to the purchaser or assignee shall be collected in the same manner as taxes on personal property.

(5) The interest of a purchaser of state lands is subject to sale for delinquent taxes in the same manner as personal property.

(6)

(a) If any interest in state lands is sold for delinquent taxes, the officer making the sale shall issue a certificate of sale.

(b) When filed with the state agency from which the interest was purchased, the certificate or certified copy operates as an assignment of the interest of the original purchaser or assignee to the purchaser at the tax sale.

Amended by Chapter 155, 1996 General Session