Constitution Article XIII Section 3

Revenue and Taxation
Section 3
[Property tax exemptions.]

            

Article XIII, Section 3.   [Property tax exemptions.]

            (1) The following are exempt from property tax:

            (a) property owned by the State;

            (b) property owned by a public library;

            (c) property owned by a school district;

            (d) property owned by a political subdivision of the State, other than a school district, and located within the political subdivision;

            (e) property owned by a political subdivision of the State, other than a school district, and located outside the political subdivision unless the Legislature by statute authorizes the property tax on that property;

            (f) property owned by a nonprofit entity used exclusively for religious, charitable, or educational purposes;

            (g) places of burial not held or used for private or corporate benefit;

            (h) farm equipment and farm machinery as defined by statute;

            (i) water rights, reservoirs, pumping plants, ditches, canals, pipes, flumes, power plants, and transmission lines to the extent owned and used by an individual or corporation to irrigate land that is:

            (i) within the State; and

            (ii) owned by the individual or corporation, or by an individual member of the corporation; and

            (j) (i) if owned by a nonprofit entity and used within the State to irrigate land, provide domestic water, as defined by statute, or provide water to a public water supplier:

            (A) water rights; and

            (B) reservoirs, pumping plants, ditches, canals, pipes, flumes, and, as defined by statute, other water infrastructure;

            (ii) land occupied by a reservoir, ditch, canal, or pipe that is exempt under Subsection (1)(j)(i)(B) if the land is owned by the nonprofit entity that owns the reservoir, ditch, canal, or pipe; and

            (iii) land immediately adjacent to a reservoir, ditch, canal, or pipe that is exempt under Subsection (1)(j)(i)(B) if the land is:

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

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

            (2) (a) The Legislature may by statute exempt the following from property tax:

            (i) tangible personal property constituting inventory present in the State on January 1 and held for sale in the ordinary course of business;

            (ii) tangible personal property present in the State on January 1 and held for sale or processing and shipped to a final destination outside the State within 12 months;

            (iii) subject to Subsection (2)(b), property to the extent used to generate and deliver electrical power for pumping water to irrigate lands in the State;

            (iv) up to 45% of the fair market value of residential property, as defined by statute;

            (v) household furnishings, furniture, and equipment used exclusively by the owner of that property in maintaining the owner's home; and

            (vi) tangible personal property that, if subject to property tax, would generate an inconsequential amount of revenue.

            (b) The exemption under Subsection (2)(a)(iii) shall accrue to the benefit of the users of pumped water as provided by statute.

            (3) The following may be exempted from property tax as provided by statute:

            (a) property owned by a disabled person who, during military training or a military conflict, was disabled in the line of duty in the military service of the United States or the State;

            (b) property owned by the unmarried surviving spouse or the minor orphan of a person who:

            (i) is described in Subsection (3)(a); or

            (ii) during military training or a military conflict, was killed in action or died in the line of duty in the military service of the United States or the State; and

            (c) real property owned by a person in the military or the person's spouse, or both, and used as the person's primary residence, if the person serves under an order to federal active duty out of state for at least 200 days in a calendar year or 200 consecutive days.

            (4) The Legislature may by statute provide for the remission or abatement of the taxes of the poor.


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