§ 59-2-1111. Exemption of property used for irrigation purposes -- Exemption of a nonprofit entity's property used for water purposes.

(1) Water rights, ditches, canals, reservoirs, power plants, pumping plants, transmission lines, pipes, and flumes owned and used by individuals or corporations for irrigating land within the state owned by those individuals or corporations, or by the individual members of the corporation, are exempt from taxation to the extent that they are owned and used for irrigation purposes.

(2)

(a) As used in this Subsection (2) and for purposes of Article XIII, Section 3 of the Utah Constitution:

(i) "Domestic water" means water used for a residential or commercial application, including the outdoor watering of vegetation.

(ii) "Other water infrastructure" means property, other than a reservoir, pumping plant, ditch, canal, pipe, or flume, whose use is physically necessary in the production, treatment, storage, or distribution of water.

(b) If owned by a nonprofit entity and used within the state to irrigate land, provide domestic water, or provide water to a public water supplier, the following are exempt from taxation:

(i) a water right;

(ii) a reservoir, pumping plant, ditch, canal, pipe, and flume; and

(iii) other water infrastructure.

(c) Land occupied by a reservoir, ditch, canal, or pipe that is exempt under Subsection (2)(b)(ii) is exempt if the land is owned by the nonprofit entity that owns the reservoir, ditch, canal, or pipe.

(d) Land immediately adjacent to a reservoir, ditch, canal, or pipe that is exempt under Subsection (2)(b)(ii) is exempt if the land is:

(i) owned by the nonprofit entity that owns the adjacent reservoir, ditch, canal, or pipe; and

(ii) reasonably necessary for the maintenance or for otherwise supporting the operation of the reservoir, ditch, canal, or pipe.

Amended by Chapter 50, 2010 General Session