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H.B. 98

             1     

PROPERTY TAX - EXEMPTION FROM

             2     
ROLLBACK TAX AND IN LIEU FEES

             3     
1999 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Wayne A. Harper

             6      AN ACT RELATING TO THE PROPERTY TAX ACT; PROVIDING DEFINITIONS;
             7      PROVIDING THAT CERTAIN ACQUISITIONS OF PROPERTY BY A COUNTY, CITY, OR
             8      TOWN ARE NOT SUBJECT TO THE ROLLBACK TAX OR IN LIEU FEES UNDER THE
             9      FARMLAND ASSESSMENT ACT; PROVIDING THAT A DEDICATION OF A PUBLIC
             10      RIGHT-OF-WAY TO A GOVERNMENTAL ENTITY IS NOT SUBJECT TO THE ROLLBACK
             11      TAX OR IN LIEU FEES UNDER THE FARMLAND ASSESSMENT ACT; CLARIFYING THE
             12      APPLICATION OF THE ROLLBACK TAX AND IN LIEU FEES UNDER THE FARMLAND
             13      ASSESSMENT ACT; AND MAKING TECHNICAL CORRECTIONS.
             14      This act affects sections of Utah Code Annotated 1953 as follows:
             15      AMENDS:
             16          59-2-511, as last amended by Chapter 260, Laws of Utah 1990
             17      Be it enacted by the Legislature of the state of Utah:
             18          Section 1. Section 59-2-511 is amended to read:
             19           59-2-511. Acquisition of farmland by government agency -- Requirements.
             20          [(1) The acquisition by a government agency of land which is being valued, assessed, and
             21      taxed under this part, if there is a change in use, subjects the land so acquired to the rollback tax
             22      imposed by this part, unless:]
             23          (1) For purposes of this section, "governmental entity" means:
             24          (a) the United States;
             25          (b) the state;
             26          (c) a political subdivision of the state, including:
             27          (i) a county;


             28          (ii) a city;
             29          (iii) a town;
             30          (iv) a school district; or
             31          (v) a special district; or
             32          (d) an entity created by the state or the United States, including:
             33          (i) an agency;
             34          (ii) a board;
             35          (iii) a bureau;
             36          (iv) a commission;
             37          (v) a committee;
             38          (vi) a department;
             39          (vii) a division;
             40          (viii) an institution;
             41          (ix) an instrumentality; or
             42          (x) an office.
             43          (2) (a) Except as provided in Subsections (3) through (5), property acquired by a
             44      governmental entity is subject to the rollback tax imposed by this part if:
             45          (i) prior to the governmental entity acquiring the property, the property is:
             46          (A) valued under this part;
             47          (B) assessed under this part; and
             48          (C) taxed under this part; and
             49          (ii) after the governmental entity acquires the property, the property is not actively devoted
             50      to agricultural use.
             51          (b) If property is subject to the rollback tax under Subsection (2)(a):
             52          (i) the owner of record shall pay the rollback tax imposed by this part before title may pass;
             53      and
             54          (ii) prior to the governmental entity acquiring the property, the governmental entity shall:
             55          (A) provide notice of the sale to the county assessor of the county in which the property
             56      is located; and
             57          (B) receive a clearance from the county assessor of the county in which the property is
             58      located stating that:


             59          (I) rollback taxes have been paid; or
             60          (II) the property is not subject to rollback taxes imposed by this part.
             61          (c) A dedication of a public right-of-way to a governmental entity is subject to the rollback
             62      tax.
             63          (3) (a) Except as provided in Subsections (4) through (6), property acquired by a
             64      governmental entity is not subject to the rollback tax imposed by this part, but is subject to a
             65      one-time in lieu fee payment as provided in Subsection (3)(b), if:
             66          [(a)] (i) the [land acquisition is] governmental entity acquires the property by eminent
             67      domain;
             68          [(b)] (ii) (A) the [land] property is under the threat or imminence of eminent domain
             69      proceedings; and
             70          (B) the governmental entity provides written notice of the proceedings to the owner of
             71      record [is notified in writing of the proceedings]; or
             72          [(c) the land]     (iii) the property is donated to [a] the governmental entity[, but excluding
             73      dedications of public rights-of-way].
             74          [(2) The tax shall be paid by the owner of record before title may pass. Prior to payment
             75      by the acquiring agency, it shall notify the county assessor of the county in which the property is
             76      located of the sale and receive a clearance from the assessor that rollback taxes have been paid or
             77      that the property is not subject to the assessment.]
             78          [(3) If land is acquired pursuant to Subsection (1)(a), (b), or (c), the acquiring government
             79      agency shall make a one-time in lieu fee payment to the taxing entity entitled to the rollback tax
             80      in the amount of the rollback tax due and payable.]
             81          (b) (i) If a governmental entity acquires property under Subsection (3)(a), the governmental
             82      entity shall make a one-time in lieu fee payment:
             83          (A) to the county assessor of the county in which the property is located; and
             84          (B) in an amount equal to the amount of rollback tax calculated under Section 59-2-506 .
             85          (ii) A county receiving an in lieu fee payment under Subsection (3)(b)(i) shall distribute
             86      the revenues generated by the payment:
             87          (A) to the taxing entities in which the property is located; and
             88          (B) in the same proportion as the revenue from real property taxes is distributed.
             89          (4) (a) If a county, city, or town acquires property that is to be used for a conservation


             90      purpose described in Section 170(h), Internal Revenue Code:
             91          (i) the property is not subject to the rollback tax imposed by this part; and
             92          (ii) the county, city, or town acquiring the property is not required to make an in lieu fee
             93      payment under Subsection (3)(b).
             94          (b) Subsection (4)(a) applies regardless of whether:
             95          (i) the county, city, or town acquires the property by eminent domain; or
             96          (ii) (A) the property is under the threat or imminence of eminent domain proceedings; and
             97          (B) the county, city, or town provides written notice of the proceedings to the owner of
             98      record.
             99          (5) If a governmental entity acquires property and converts the property into a conservation
             100      easement under Section 59-2-506 :
             101          (a) the property is not subject to the rollback tax imposed by this part; and
             102          (b) the governmental entity acquiring the property is not required to make an in lieu fee
             103      payment under Subsection (3)(b).




Legislative Review Note
    as of 1-25-99 3:11 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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