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Third Substitute S.B. 125

Senator Curtis S. Bramble proposes the following substitute bill:


             1     
PROPERTY TAX EXEMPTION AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: Patrick Painter

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies a provision related to property tax exemptions.
             10      Highlighted Provisions:
             11          This bill:
             12          .    specifies that, for purposes of a property tax exemption for property used
             13      exclusively for educational purposes, "educational purposes" includes the physical
             14      or mental teaching, training, or conditioning of competitive athletes by specified
             15      entities;
             16          .    provides that a charter school is considered to be a school district for purposes of a
             17      property tax exemption for property of a school district; and
             18          .    makes technical changes.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill provides an immediate effective date.
             23          This bill has retrospective operation for a taxable year beginning on or after January 1,
             24      2008.
             25      Utah Code Sections Affected:

             26      AMENDS:
             27          59-2-1101, as last amended by Laws of Utah 2007, Chapter 329
             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 59-2-1101 is amended to read:
             31           59-2-1101. Exemption of certain property -- Proportional payments for certain
             32      property -- County legislative body authority to adopt rules or ordinances.
             33          (1) [For purposes of] As used in this section:
             34          (a) "Educational purposes" includes:
             35          (i) the physical or mental teaching, training, or conditioning of competitive athletes by
             36      a national governing body of sport recognized by the United States Olympic Committee that
             37      qualifies as being tax exempt under Section 501(c)(3) of the Internal Revenue Code; and
             38          (ii) an activity in support of or incidental to the teaching, training, or conditioning
             39      described in Subsection (1)(a)(i).
             40          [(a)] (b) "Exclusive use exemption" means a property tax exemption under Subsection
             41      (3)[(d)](a)(iv), for property owned by a nonprofit entity that is used exclusively for religious,
             42      charitable, or educational purposes[;].
             43          [(b)] (c) "Government exemption" means a property tax exemption provided under
             44      Subsection (3)(a)[, (b), or (c); and](i), (ii), or (iii).
             45          [(c)] (d) "Tax relief" means an exemption, deferral, or abatement that is authorized by
             46      this part.
             47          (2) (a) Except as provided in Subsection (2)(b) or (c), tax relief may be allowed only if
             48      the claimant is the owner of the property as of January 1 of the year the exemption is claimed.
             49          (b) Notwithstanding Subsection (2)(a), a claimant shall collect and pay a proportional
             50      tax based upon the length of time that the property was not owned by the claimant if:
             51          (i) the claimant is a federal, state, or political subdivision entity described in
             52      Subsection (3)(a)[, (b), or (c)](i), (ii), or (iii); or
             53          (ii) pursuant to Subsection (3)(d):
             54          (A) the claimant is a nonprofit entity; and
             55          (B) the property is used exclusively for religious, charitable, or educational purposes.
             56          (c) Notwithstanding Subsection (2)(a), a claimant may be allowed a veteran's

             57      exemption in accordance with Sections 59-2-1104 and 59-2-1105 regardless of whether the
             58      claimant is the owner of the property as of January 1 of the year the exemption is claimed if the
             59      claimant is:
             60          (i) the unmarried surviving spouse of:
             61          (A) a deceased disabled veteran as defined in Section 59-2-1104 ; or
             62          (B) a veteran who was killed in action or died in the line of duty as defined in Section
             63      59-2-1104; or
             64          (ii) a minor orphan of:
             65          (A) a deceased disabled veteran as defined in Section 59-2-1104 ; or
             66          (B) a veteran who was killed in action or died in the line of duty as defined in Section
             67      59-2-1104 .
             68          (3) (a) The following property is exempt from taxation:
             69          [(a)] (i) property exempt under the laws of the United States;
             70          [(b)] (ii) property of:
             71          [(i)] (A) the state;
             72          [(ii)] (B) school districts; and
             73          [(iii)] (C) public libraries;
             74          [(c)] (iii) except as provided in Title 11, Chapter 13, Interlocal Cooperation Act,
             75      property of:
             76          [(i)] (A) counties;
             77          [(ii)] (B) cities;
             78          [(iii)] (C) towns;
             79          [(iv)] (D) local districts;
             80          [(v)] (E) special service districts; and
             81          [(vi)] (F) all other political subdivisions of the state;
             82          [(d)] (iv) property owned by a nonprofit entity which is used exclusively for religious,
             83      charitable, or educational purposes;
             84          [(e)] (v) places of burial not held or used for private or corporate benefit;
             85          [(f)] (vi) farm equipment and machinery;
             86          [(g)] (vii) intangible property; and
             87          [(h)] (viii) the ownership interest of an out-of-state public agency, as defined in Section

             88      11-13-103 :
             89          [(i)] (A) if that ownership interest is in property providing additional project capacity,
             90      as defined in Section 11-13-103 ; and
             91          [(ii)] (B) on which a fee in lieu of ad valorem property tax is payable under Section
             92      11-13-302 .
             93          (b) For purposes of a property tax exemption for property of school districts under
             94      Subsection (3)(a)(ii)(B), a charter school under Title 53A, Chapter 1a, Part 5, The Utah Charter
             95      Schools Act, is considered to be a school district.
             96          (4) Subject to Subsection (5), if property that is allowed an exclusive use exemption or
             97      a government exemption ceases to qualify for the exemption because of a change in the
             98      ownership of the property:
             99          (a) the new owner of the property shall pay a proportional tax based upon the period of
             100      time:
             101          (i) beginning on the day that the new owner acquired the property; and
             102          (ii) ending on the last day of the calendar year during which the new owner acquired
             103      the property; and
             104          (b) the new owner of the property and the person from whom the new owner acquires
             105      the property shall notify the county assessor, in writing, of the change in ownership of the
             106      property within 30 days from the day that the new owner acquires the property.
             107          (5) Notwithstanding Subsection (4)(a), the proportional tax described in Subsection
             108      (4)(a):
             109          (a) is subject to any exclusive use exemption or government exemption that the
             110      property is entitled to under the new ownership of the property; and
             111          (b) applies only to property that is acquired after December 31, 2005.
             112          (6) A county legislative body may adopt rules or ordinances to:
             113          (a) effectuate the exemptions, deferrals, abatements, or other relief from taxation
             114      provided in this part; and
             115          (b) designate one or more persons to perform the functions given the county under this
             116      part.
             117          Section 2. Effective date.
             118          If approved by two-thirds of all the members elected to each house, this bill takes effect

             119      upon approval by the governor, or the day following the constitutional time limit of Utah
             120      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             121      the date of veto override.
             122          Section 3. Retrospective operation.
             123          This bill has retrospective operation for a taxable year beginning on or after January 1,
             124      2008.

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