What Valar's projects would pay in Carbon County, and who would get the money

The laws that could lower or raise what Valar pays, and where the money goes

These Utah laws apply to any business in Valar's position. Of Valar's yearly property taxes, only the land tax could be $0, if the lease does not give exclusive possession; buildings and machinery Valar owned would always be taxed, so its yearly property tax could be $0 only while nothing is built. No Valar tax incentive, tax abatement or development agreement was found in the county commission's notices through September 16, 2026.

Tap a law to open its full description; tap it again to close it.

Could lower what Valar pays

• A lease without exclusive possession pays no land taxUtah Code 59-4-101, 59-4-103

  State land is not taxed. A business using it for profit pays a 'privilege tax' instead, equal to the property tax the land would pay. But if the lease does not give the business exclusive possession, the right to use the land as its own, no privilege tax is owed at all.

  Not settled: the lease's wording was not found in public records. Without exclusive possession it pays $0; with it, about $4,047 to $7,624 a year for the county, the school district and the other local taxing bodies together, if the assessor treats the unbuilt land as used in Valar's business and values it at the $750-an-acre appraisal.

  What the law says

  No privilege tax is owed on a lease, permit or easement that does not give the user exclusive possession (the right to occupy and use the land as its own). The landlord keeping rights to enter, inspect or approve improvements does not by itself defeat exclusive possession.

  Here: Exclusive possession is the main open condition: without it the lease pays $0; with it, about $4,046.76-$7,624.32 a year if the assessor treats the unbuilt land as used in connection with Valar's business and values it at the $750 appraisal.

  On the public record: Not found in public records: the lease's possession clause; no signed lease is on record. The board memo does not use the word 'exclusive'; the lease's own terms will decide it.

• Machinery is taxed on a shrinking share of its costTax Commission percent-good schedules; Utah Code 59-2-102(19)(c)(iii)

  Machinery the county values is taxed on a smaller share of its cost each year as it ages: for production machinery, 97% in its first year, down to 11% by year 11. What happens after the last listed year could not be obtained.

  The State's table for power-plant equipment was not obtained, so the figures here use the tables for other machinery.

  What the law says

  Manufacturing machinery is personal property, valued at its cost times a 'percent good' factor that falls with age. A business's personal property is fully exempt if its total in the county is $25,000 or less (indexed to inflation); above that, only certain items (supplies, inventory, small non-critical items) are exempt.

  Here: Valar's machinery would lose taxable value each year: 97% of cost in its first year to 11% by year 11 for machinery (Class 8); 97% to 9% by year 19 for long-life property (Class 16). The $25,000 exemption would not apply to a plant this size.

  On the public record: Not obtained: the schedule for power-generating equipment (Class 27) and what applies after the last listed year; the 2026 classification guide prints neither, and no copy of the Tax Commission's separate 2026 valuation schedules is kept here.

• A 2027 rule on new buildingsUtah Code 59-2-924 as in force from January 1, 2027, (1)(u)(ii)(E)

  From 2027, if a new building the county values adds no floor space 'related to residential or commercial use', its value does not count as 'new growth' (new value that brings in extra money instead of lowering rates). If that covers Valar's buildings, their value would lower everyone's tax rate, Valar's included, as they are built, so the county and schools would gain less.

  Not settled: no Tax Commission guidance was found in the records read (its rules and property-tax web pages were not reviewed), and whether a reactor or fuel plant counts as 'commercial use' is open. In the campus case the county's main property taxes would gain about $857,000 a year if the rule never applies and about $604,000 if it always does.

  What the law says

  New growth counts new real-property value, and centrally assessed value above a three-year average. From 2027, a new structure that adds no 'new building area related to residential or commercial use' is left out; the same clause also deals with increases on property assessed the year before as partly finished new growth. For this rule, assessors may not use permit value for construction in progress.

  Here: If the 2027 rule covers Valar's industrial buildings, their value lowers everyone's certified rate as they are built instead of adding revenue for the taxing bodies.

  On the public record: Not settled: no Tax Commission guidance on the 2027 rule was found in the records read (its rules and property-tax web pages were not reviewed), including whether a reactor or fuel plant counts as 'commercial use' and how partly finished buildings are treated; the model runs half its cases each way, which is an assumption, not a forecast.

• Officials can set rates below the defaultUtah Code 59-2-919

  A taxing body, such as the county or the school district, may choose a rate below its default ('certified') rate with no special notice or hearing. That lowers every bill, Valar's included. Going above the default needs a public notice and a hearing, except that, for six years counted from the year before a body first cuts its budget, it may return up to that earlier budget without them.

  In 2024 Carbon County's general levy and its Municipal Services Fund were set slightly below the default; in 2020 the Municipal Services Fund was set above it (0.002587 against 0.000317).

  What the law says

  A taxing body may not levy above its certified rate without public notice and a hearing, except that, within six years counted from the year before it first cuts its budget, it may return up to that earlier budget without them. Levying at or below the certified rate needs no truth-in-taxation notice or hearing.

  Here: If Valar's value lets bodies cut rates, they may do so without the truth-in-taxation notice and hearing; keeping the certified rate is the default, and larger cuts in bills depend on that choice.

  On the public record: Public: the Tax Commission's Report 600 lists certified and adopted rates. In Tax Area 009 in 2020-2025, the only adopted rate above certified was the Municipal Services Fund in 2020; the county's general levy and the Municipal Services Fund were adopted below certified in 2024.

• Sales tax exemptions on equipmentUtah Code 59-12-104(14), (55)

  Machinery, equipment, parts and materials a factory uses to make goods for sale can be exempt from sales tax. A separate exemption for equipment that makes an alternative-energy power plant operational covers purchases only through June 30, 2027, and does not cover items used to construct the plant. This is a one-time sales tax on purchases, not property tax.

  Not settled: whether fuel made for Valar's own reactors counts as an item 'sold'; whether a reactor counts as 'alternative energy' under Utah's definition was not checked. Campus spending is modeled to start in 2028-2033, after that exemption ends. No exemption for building materials was found in the sections read.

  What the law says

  The 1% local sales tax is split half by population and half by where goods are received. Machinery, equipment, parts and materials used to make goods for sale can be exempt; an alternative-energy exemption covers purchases only through June 30, 2027 and does not cover property used to build a new facility.

  Here: Construction purchases delivered to the site could bring the county a one-time sum, up to $4.74 million in the campus case (median upper bound); no exemption for building materials was found in the sections read. It is not property tax and is left out of every total here.

  On the public record: Not settled: whether fuel made for Valar's own reactors is an item 'sold', which decides whether the fuel plant's equipment is exempt.

• State tax credits for new jobs and investmentUtah Code 63N-2-103 to 63N-2-105

  A tax credit cuts a tax bill. Under this law the State can agree in writing to refund a business part of the new state taxes its project brings in, yearly after they are paid, if it meets agreed targets such as new jobs or investment. Offers are tied to a site and can hinge on a local incentive, possibly a property tax one. It is a state tax rebate, not a change to local property tax.

  Valar has one approved for its Emery County project: half of the project's new state taxes for 10 years, up to $106,737,499, which the board called "a 50% rebate in state tax paid". It had not been earned as of late September 2026. No state incentive for the Carbon campus was found as of late September 2026.

  What the law says

  The State may give a business a credit against state taxes under a written agreement, paid only after the business meets agreed targets, such as new jobs or investment, and the new state tax revenue has been paid; it is worth a share of that new revenue. An offer is tied to a site and can depend on a local incentive as well.

  Here: A credit for a Carbon site would lower Valar's state taxes, not local property tax, but a local incentive offered alongside it could be a property tax incentive.

  On the public record: Valar has one approved for its Emery County project: a refundable credit of up to $106,737,499, 50% of new state tax revenue for 10 years, which the board's materials call "site specific and subject to local incentive participation" (Governor's Office of Economic Development board materials, July 9, 2026, pp.4-5). No state incentive for the Carbon campus was found as of late September 2026.

Could raise or lower what Valar pays

• Who values the plant: the State or the countyUtah Code 59-2-201(1)(a)

  A reactor selling power to others would likely be valued by the State Tax Commission as part of a utility; one powering only Valar or its tenants, and a fuel plant, would likely be valued by the county, which values machinery on the shrinking schedules above. Both must use full market value. Which one values it decides whether the 2027 rule (county-valued buildings) can lower its tax, whether falling machinery value raises everyone's default rate (State-valued) or only cuts what taxing bodies collect (county-valued), and whether the 7% rule below applies.

  Not settled: no power-sale contract was found in public records, and the Tax Commission could treat Valar's Carbon and Emery property as one unit across county lines.

  What the law says

  The State Tax Commission values mines, public utilities and property operating across county lines, and assigns the value to tax areas by location. An 'electrical corporation' that sells power to others is a public utility; power made only for the producer's own use or its tenants is excluded.

  Here: A Valar reactor selling power to others would likely be centrally assessed; power used only by Valar or its tenants, and a fuel plant, would likely be assessed by the county, unless the Tax Commission treats Valar's Carbon and Emery property as one unit across county lines (not settled). The Tax Commission's 'electric generation' category was $0 in Carbon in 2025; its separate 'electric utility' category was $71,569,257.

  On the public record: Not found in public records: any power-sale contract, or whether Valar will sell power to others. Valar told Trust Lands that site control comes before talks with power buyers ('off-takers').

• Default tax rates reset every yearUtah Code 59-2-924 (truth in taxation)

  Each year Utah sets each taxing body's default rate, its 'certified tax rate', so it brings in the property tax money the body budgeted the year before, plus the tax on new growth such as new buildings. As Valar's buildings, and any of its property the State values, lose value, that rate rises for everyone, Valar included.

  In the campus case, most model runs (the middle 80%) put Valar's own 20-year tax between 4.8% lower and 1.0% higher than if the rate never changed; the most extreme mix of inputs gives 29% lower to 10% higher. Both ranges include runs where the 2027 rule listed above applies, so the two effects should not be added together.

  What the law says

  Each taxing body's certified rate is the property tax revenue it budgeted last year divided by this year's value, leaving out new growth.

  Here: Under the rule through 2026, Valar's first-year value adds revenue at the existing rate; later falls in the value of its buildings, and of anything the State values, raise everyone's rate. In the campus case these dynamics move Valar's own 20-year tax by -4.8% to +1.0% in most model runs (the middle 80%), and by -29% to +10% at the extremes (both include runs where the 2027 rule applies), compared with a rate that never changed.

  On the public record: Not found in public records: Carbon's 2026 certified-rate worksheets (new growth, prior-year revenue) for each taxing body.

Keep Valar paying, or could raise what it pays

• Buildings on state land are still taxedUtah Code 59-2-1101(3), 59-2-1103

  While the State owns the land, the land itself is exempt from property tax, but Valar's use of it can still owe the privilege tax above. Buildings and machinery Valar owned on it would still be taxed to Valar.

  Settled law. This is why a built campus would pay property tax.

  What the law says

  State land under lease is exempt, but improvements on it are not. An improvement is taxable even when the business that owns it does not hold title to the land.

  Here: Reactor buildings, a fuel plant or factories Valar built would be taxed to Valar at full value, even on state land.

  On the public record: Public. The lease requires Valar to remove all improvements if it ends the lease after construction. Not found in public records: whether the assessor would value them as real property or as 'leasehold improvements' (Class 24).

• Buying the landUtah Code 59-2-1101(4)(a), 59-2-1103

  If Valar bought the land, it would pay a share of that year's tax from the purchase date, and then property tax on the land every year like any other land in the county.

  No purchase is on record. Valar may buy all or part of the land at any time under the approved terms. Compared with a lease that pays the privilege tax, the land tax would be about the same; compared with one that pays none, it adds the land's full tax, at most about $7,624 a year at the $750-an-acre appraisal and the highest recent rate (the assessor sets the value).

  What the law says

  When state land is sold, the buyer pays a share of that year's tax from the sale date. Under an installment contract, the buyer's paid share is taxed as property and the State's remaining share pays privilege tax each year until the last payment.

  Here: Valar may buy all or part of the land at any time, and must first buy any part to be used for storing radioactive waste (Trust Lands sets which part); the approved terms do not allow spent fuel to be stored on trust land. The purchase-year tax would be a part-year share, about $7,624 for a full year at the $750 appraisal and the highest rate; the assessor sets the value. After that the land is taxed like any other.

  On the public record: No purchase is on record. The staff table prices a year-10 purchase at $10,164,109; that money would go to Trust Lands for the school trust, not the county.

Limit what Carbon County may offer Valar, and could send its tax to the State

• State energy zonesUtah Code 79-6-1104

  Carbon County or a city may not give financial incentives to a nuclear power project outside a state electrical energy development zone, unless its project area plan was approved before July 1, 2026. If the land were put in such a zone, the added property tax would go to a State fund instead of local budgets, unless an agreement shared it.

  No zone covering the lease land, and no project area plan approved before July 1, 2026, was found as of late September 2026. With a zone and no sharing agreement, the county's main property taxes would gain $0 instead of about $717,000 a year in the campus case.

  What the law says

  A county or city may not offer financial incentives to a nuclear baseload power project outside a designated zone, unless the project's area plan was approved before July 1, 2026. Counties and Trust Lands may apply for a zone; the zone's added property tax then goes to a State fund, subject to agreements.

  Here: Carbon County (or a city) may not give financial incentives to a reactor outside a designated zone, unless a project area plan was approved before July 1, 2026 (none found). If the land were put in a designated zone, the county general levies' gain in the campus case would fall from $717,000 a year to $0 without an allocation agreement.

  On the public record: No zone covering the lease land was found (as of late September 2026).

• Critical minerals zonesUtah Code 79-10-401, 79-10-403

  A similar kind of state zone for mining and processing critical minerals, with the same limit on county incentives outside a zone unless a project area plan was approved before May 6, 2026. The lease's stated purpose includes critical mineral refining. Whether uranium or a fuel plant qualifies depends on an official list. In such a zone, the added property tax would go to a State account instead of local budgets, unless an agreement shared it.

  No zone covering the lease land was found as of late September 2026.

  What the law says

  The same structure for critical-mineral extraction or processing projects: no county incentives outside a designated zone unless a project area plan was approved before May 6, 2026, and Trust Lands may propose zones.

  Here: The lease's stated purpose includes critical mineral refining. Whether uranium or a fuel plant qualifies depends on the federal or state council list.

  On the public record: No zone covering the lease land was found (as of late September 2026).

Would not change Valar's tax bill, but would send the money somewhere other than the usual taxing bodies

• Inland Port project areasUtah Code 11-58-601(4), 11-58-603(5)

  In an Inland Port project area, the Utah Inland Port Authority can receive up to 75% of the added property tax for 25 years, and its board can add up to 15 more years. Its board can also pay part of that money back to a business, after the business builds or hires, as an incentive.

  The lease land is not in the Castle Country project area; the Inland Port Authority counts Valar's Emery County land inside it, though Emery County voted in May 2026 to remove that parcel and the records disagree. With the full 75%, the county's main property taxes would gain about $179,000 a year instead of $717,000 in the campus case.

  What the law says

  In an Inland Port project area, for parcels outside the Port Authority's own jurisdictional land, the Authority receives up to 75% of the added property tax (the share is set by its board in the project area plan) for 25 years from the date set for each parcel; the board may extend this up to 15 more years. The Authority may also pay a business, after it performs, a share of the property tax it receives from that business's parcel, as a recruitment incentive.

  Here: With the maximum 75% capture, the campus case's county general gain would fall from $717k to $179k a year.

  On the public record: The lease land is not in the Castle Country project area (Amendment 3, May 2026); the Inland Port Authority counts Valar's Emery acreage inside it, though Emery County voted on May 19, 2026 to remove that parcel and the records disagree.

• Community reinvestment project areasUtah Code 17C-1-102(64)

  In a community reinvestment project area, the tax on value above a starting level can go to a community reinvestment agency instead of the taxing bodies. Other parts of the law, not read for this page, set how much.

  None was found covering the land as of late September 2026: the county's tax map puts the parcel in district 9, 'County Outside'.

  What the law says

  In a community reinvestment project area, the tax on value above a starting base (the tax increment) can be sent to the community reinvestment agency instead of the taxing bodies; how much is set under other parts of Title 17C (not read for this page).

  Here: None was found covering the land as of late September 2026: the county's tax map puts the parcel in district 9, 'County Outside', not a redevelopment area.

  On the public record: Public: the county's tax-district map. The assessor's tax-roll entry would confirm it.

• The State's basic school tax and school aidUtah Code 53F-2-301(5)

  Part of every school tax is a basic levy the State sets. When a district's property value grows, the State cuts its school aid by what that levy brings in, so the district keeps none of that part.

  Settled law. It is why Carbon School District would keep only part of the school tax Valar paid.

  What the law says

  Every district must levy the state-set minimum basic rate. The State pays each district the cost of its basic program minus what that levy raises.

  Here: The basic-levy part of Valar's school tax (18% to 20.4% of the school rate) would cut state aid to Carbon School District dollar for dollar; in effect it goes to the State.

  On the public record: Public. The district's 2026 rate and levy parts were not found.

• State top-up for local school taxesUtah Code 53F-2-601

  The State adds money to some of a district's own school levies. As local property value rises, it pays less of that top-up.

  The district's 2026-2027 calculation was not obtained.

  What the law says

  The State guarantees a set amount per weighted pupil unit (a per-student funding unit adjusted for need) for up to 20 increments of a district's voted and board levies. Read with 53F-2-601(7), it pays less as local value rises; a separate 'excess funds' payment in the same subsection is being phased out by FY2029.

  Here: Valar's value would reduce Carbon School District's guarantee money, by up to 0.002 times Valar's value a year, capped at what the district receives ($567,933 to $1,963,609 a year, depending on which columns are counted).

  On the public record: Not obtained: the district's FY2026-FY2027 guarantee calculation.

• 7% of new state-valued tax goes to the StateUtah Code 59-2-924.5

  From 2026, each year 7% of the tax on growth in property the State values (its value above the average of the previous three years) goes to the State; the next year the taxing body counts all of that growth in its budget.

  It would apply only to Valar property the State values: at most 2.9% of Valar's tax in any case modeled.

  What the law says

  From 2026, 7% of each taxing body's revenue from centrally assessed new growth goes to the State (to the Species Protection Account from 2027).

  Here: Applies only to Valar property that is centrally assessed; at most 2.9% of Valar's tax in any case modeled.

  On the public record: Public.

Other laws on this page

• Privilege taxUtah Code 59-4-101(1)(a), (2)(a), (3)(a)

  What the law says

  A business that uses tax-exempt property for profit pays a tax equal to the property tax it would owe if it owned the property. It is collected and shared out like property tax.

  Here: Valar's use of the leased land, if taxable, would owe acres x $750 x the Tax Area 009 rate: $4,046.76 a year (480 acres at the lowest 2020-2025 rate) up to $7,624.32 (640 acres at the highest), shared by every taxing body by its rate.

  On the public record: The rule is public. The county assessor sets the land's value for this tax; the only public figure is the $750-an-acre appraisal.

• Value and the home exemptionUtah Code 59-2-103(2)-(3); 59-2-102(13), (40)

  What the law says

  Property is taxed on its fair market value as of January 1. A primary residence gets a 45% exemption; business and industrial property gets none.

  Here: Valar's property would be taxed on 100% of its value; a home on 55%.

  On the public record: Public.