2006 Utah Code - 59-23-6 — Action for collection of royalty -- Action for refund or credit of royalty.

     59-23-6.   Action for collection of royalty -- Action for refund or credit of royalty.
     (1) (a) Except as provided in Subsections (2) through (5), the commission shall assess a brine shrimp royalty under this chapter within three years after a royalty payer files a return.
     (b) Except as provided in Subsections (2) through (5), if the commission does not assess a royalty under this chapter within the three-year period provided in Subsection (1)(a), the commission may not commence a proceeding to collect the royalty.
     (2) Notwithstanding Subsection (1), the commission may assess a royalty at any time if a royalty payer:
     (a) files a false or fraudulent return with intent to evade; or
     (b) does not file a return.
     (3) Notwithstanding Subsection (1), beginning on July 1, 1998, the commission may extend the period to make an assessment or to commence a proceeding to collect the royalty under this chapter if:
     (a) the three-year period under Subsection (1) has not expired; and
     (b) the commission and the royalty payer sign a written agreement:
     (i) authorizing the extension; and
     (ii) providing for the length of the extension.
     (4) If the commission delays an audit at the request of a royalty payer, the commission may make an assessment as provided in Subsection (5) if:
     (a) the royalty payer subsequently refuses to agree to an extension request by the commission; and
     (b) the three-year period under Subsection (1) expires before the commission completes the audit.
     (5) An assessment under Subsection (4) shall be:
     (a) for the time period for which the commission could not make an assessment because of the expiration of the three-year period; and
     (b) in an amount equal to the difference between:
     (i) the commission's estimate of the amount of royalty the royalty payer would have been assessed for the time period described in Subsection (5)(a); and
     (ii) the amount of royalty the royalty payer actually paid for the time period described in Subsection (5)(a).
     (6) (a) Except as provided in Subsection (6)(b), the commission may not make a credit or refund unless the royalty payer files a claim with the commission within three years of the date of overpayment.
     (b) Notwithstanding Subsection (6)(a), beginning on July 1, 1998, the commission shall extend the period for a royalty payer to file a claim under Subsection (6)(a) if:
     (i) the three-year period under Subsection (6)(a) has not expired; and
     (ii) the commission and the royalty payer sign a written agreement:
     (A) authorizing the extension; and
     (B) providing for the length of the extension.

Amended by Chapter 299, 1998 General Session