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H.B. 129

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CENTRALLY ASSESSED TAXPAYERS AMENDMENTS

2    
1997 GENERAL SESSION

3    
STATE OF UTAH

4    
Sponsor: Raymond W. Short

5    AN ACT RELATING TO THE PROPERTY TAX ACT; PROVIDING FOR THE TREATMENT
6    OF OBJECTIONS TO COMMISSION ASSESSMENTS BY PROPERTY OWNERS OR
7    COUNTIES; PROVIDING PROCEDURES FOR COUNTIES TO HOLD DISPUTED
8    AMOUNTS IN ESCROW, INVEST THE DISPUTED AMOUNTS, AND DISTRIBUTE THE
9    AMOUNTS AFTER A FINAL DECISION; PROVIDING FOR THE TREATMENT OF
10    AMOUNTS RELEASED FROM ESCROW AS PROPERTY TAX REVENUES; PROVIDING
11    PROCEDURES FOR PROPERTY OWNERS TO PAY DISPUTED AMOUNTS;
12    PROVIDING PROCEDURES FOR ADJUDICATING DISPUTES; MODIFYING CERTAIN
13    PROPERTY TAX NOTICES AND STATEMENTS; MAKING TECHNICAL CHANGES;
14    AND PROVIDING FOR RETROSPECTIVE OPERATION.
15    This act affects sections of Utah Code Annotated 1953 as follows:
16    AMENDS:
17         53A-19-105, as last amended by Chapter 79, Laws of Utah 1996
18         59-1-601, as last amended by Chapter 248, Laws of Utah 1993
19         59-2-802, as last amended by Chapter 3, Laws of Utah 1988
20         59-2-803, as last amended by Chapter 3, Laws of Utah 1988
21         59-2-913, as last amended by Chapter 35, Laws of Utah 1992
22         59-2-921, as last amended by Chapter 3, Laws of Utah 1988
23         59-2-924, as last amended by Chapters 286, 321 and 326, Laws of Utah 1996
24         59-2-1007, as last amended by Chapter 348, Laws of Utah 1995
25         59-2-1317, as last amended by Chapters 181 and 278, Laws of Utah 1995
26         59-2-1328, as last amended by Chapter 41, Laws of Utah 1990
27         59-2-1330, as last amended by Chapters 41 and 188, Laws of Utah 1990

1    Be it enacted by the Legislature of the state of Utah:
2        Section 1. Section 53A-19-105 is amended to read:
3         53A-19-105. School district interfund transfers.
4        (1) A school district shall spend revenues only within the fund for which they were
5    originally authorized, levied, collected, or appropriated.
6        (2) Except as otherwise provided in this section, school district interfund transfers of
7    residual equity are prohibited.
8        (3) The State Board of Education may authorize school district interfund transfers of
9    residual equity when a district states its intent to create a new fund or expand, contract, or liquidate
10    an existing fund.
11        (4) The State Board of Education may also authorize school district interfund transfers of
12    residual equity for a financially distressed district if the board determines the following:
13        (a) the district has a significant deficit in its maintenance and operations fund caused by
14    circumstances not subject to the administrative decisions of the district;
15        (b) the deficit cannot be reasonably reduced under Section 53A-19-104; and
16        (c) without the transfer, the school district will not be capable of meeting statewide
17    educational standards adopted by the State Board of Education.
18        (5) The board shall develop standards for defining and aiding financially distressed school
19    districts under this section in accordance with Title 63, Chapter 46a, Utah Administrative
20    Rulemaking Act.
21        (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
22    and reported in the debt service fund.
23        (b) Debt service levies under Subsection 59-2-924(2)(a)(iv)(C) that are [exempted from]
24    not subject to the certified tax rate hearing requirements [under Subsection 59-2-924(2)(a)(iii)] of
25    Sections 59-2-918 and 59-2-919 may not be used for any purpose other than retiring general
26    obligation debt.
27        (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal year
28    shall be used in subsequent years for general obligation debt retirement.
29        (d) Any amounts left in the debt service fund after all general obligation debt has been
30    retired may be transferred to the capital projects fund upon completion of the budgetary hearing
31    process required under Section 53A-19-102.

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1        Section 2. Section 59-1-601 is amended to read:
2         59-1-601. District court jurisdiction.
3        (1) In addition to the jurisdiction granted in Section 63-46b-15, beginning July 1, 1994,
4    the district court shall have jurisdiction to review by trial de novo all decisions issued by the
5    commission after that date resulting from formal adjudicative proceedings.
6        (2) As used in this section, "trial de novo" means an original, independent proceeding, and
7    does not mean a trial de novo on the record.
8        (3) (a) In any appeal [taken after July 1, 1994, from a formal hearing] to the district court
9    pursuant to this section taken after January 1, 1997, the commission shall certify a record of its
10    proceedings to the district court [which record shall be reviewed and considered by the district
11    court. A district court may not, unless the parties otherwise agree in writing, hear witnesses that
12    were not called to testify or consider exhibits that were not presented to the commission at the
13    formal hearing. If the parties do not agree, and a district court determines that additional witnesses
14    should be heard or additional exhibits considered in the interest of justice, the district court shall
15    remand the case to the commission for that purpose].
16        (b) This Subsection (3) supercedes Section 63-46b-16 pertaining to judicial review of
17    formal adjudicative proceedings.
18        Section 3. Section 59-2-802 is amended to read:
19         59-2-802. Statement of commission transmitted to county auditors -- Duties of
20     auditors -- Change of assessment prohibited.
21        (1) The commission shall, before June [1] 8, annually transmit to the county auditor of
22    each county to which an apportionment has been made a statement showing:
23        (a) the property assessed [and];
24        (b) the value of the property, as fixed and apportioned to the tax areas; and
25        (c) the aggregate amount of taxable value placed in dispute by property owners within the
26    county pursuant to Section 59-2-1007.
27        (2) The county auditor shall enter the:
28        (a) statement on the county assessment roll or book [of the county,]; and [enter the]
29        (b) amount of the assessment apportioned to the county in the column of the assessment
30    book or roll which shows for the county the total taxable value of all property [for taxation of the
31    county]. [No]

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1        (3) A county board of equalization may not change any assessment fixed by the
2    commission.
3        Section 4. Section 59-2-803 is amended to read:
4         59-2-803. Statement transmitted by county auditors to governing bodies.
5        (1) The county auditor shall transmit to the governing bodies of taxing entities in which
6    the property is located, or to which any of the value is apportioned, a statement of the valuation
7    of all property as fixed and apportioned by the commission and reported under Section 59-2-802.
8        (2) The statement under Subsection (1) shall contain the aggregate amount of taxable value
9    placed in dispute by property owners within the county pursuant to Section 59-2-1007.
10        (3) The statement shall be transmitted at the same time and in the same manner as the
11    statement is transmitted under Section 59-2-924.
12        Section 5. Section 59-2-913 is amended to read:
13         59-2-913. Statement of amount and purpose of levy -- Filing with county auditor --
14     Transmittal to commission -- Determination of tax basis -- Limits on adjustments -- Format
15     of statement.
16        (1) (a) The governing body of each taxing entity shall file a statement as provided in this
17    section with the county auditor of the county in which the taxing entity is located.
18        (b) The auditor shall annually transmit the statement to the commission:
19        (i) before June 22 [of each year]; or[,]
20        (ii) with the approval of the commission, on a subsequent date prior to the date established
21    under Section 59-2-1317 for [the] mailing [of] tax notices[, showing].
22        (c) The statement shall contain the amount and purpose of each levy fixed by the
23    governing body of the taxing entity.
24        (2) [The basis used by each governing body or board for] (a) For purposes of establishing
25    the levy set for each of a taxing entity's applicable [fund of the taxing entity is determined by
26    dividing] funds, the taxing entity's governing body or board shall:
27        (i) divide the budgeted property tax revenues, specified in a budget which has been [duly]
28    adopted and approved prior to [the] setting [of] the levy, by [the sum of] an amount equal to:
29        (A) the aggregate taxable value of all property taxed[, less]; minus
30        (B) the taxing entity's estimated equalization adjustments in the current [tax] year[,
31    multiplied]; and

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1        (ii) multiply the amount under Subsection (2)(a)(i) by the percentage of property taxes
2    collected for the previous five fiscal years. [The sum of the]
3        (b) For purposes of Subsection (2)(a)(i)(A), the aggregate taxable value of all property
4    taxed includes:
5        [(a)] (i) the total taxable value of the real and personal property contained on the tax rolls;
6    minus
7        (ii) the aggregate amount of value placed in dispute by property owners within the taxing
8    entity pursuant to Section 59-2-1007; and
9        [(b)] (c) the taxable value of any additional personal property estimated by the county
10    assessor to be subject to taxation in the current [tax] year.
11        (3) The aggregate annual amount of all adjustments to an assessment roll under Subsection
12    (2)(b) for a county or school district h [are ] IS h limited to the greater of:
13        (a) 10% of the total value of the real and personal property for the county or school district
14    contained on the assessment roll; or
15        (b) 50% of the aggregate amount of value placed in dispute by property owners within the
16    county or school district pursuant to Section 59-2-1007.
17        (4) An adjustment to a levy under Subsection (2)(b) is h [ exempt from ] SUBJECT TO h the
17a    provisions of
18    Subsection 59-2-914(3).
19        [(3)] (5) The format of the statement under this section shall:
20        (a) be determined by the commission; and [shall]
21        (b) cite any applicable statutory provisions [requiring] that:
22        (i) require a specific levy[, such as school districts, and other provisions which]; or
23        (ii) limit the property tax levy for any taxing entity.
24        (6) The commission may require certification that the information submitted on [the] a
25    statement under this section is true and correct.
26        Section 6. Section 59-2-921 is amended to read:
27         59-2-921. Changes in assessment roll -- Rate adjustments -- Notice -- Amounts
28     released from escrow -- Inclusion as property tax revenues -- Carry forward provisions.
29        [The] (1) On or before September 15 the county board of equalization and, in cases
30    involving the original jurisdiction of the commission or an appeal from the county board of
31    equalization, the commission, shall annually notify each taxing entity of [any change in the
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1    assessment roll which results] the following changes resulting from actions by the commission or
2    the county board of equalization[. An increase in the taxing entity's tax rate above the certified tax
3    rate or that adopted by resolution of the governing body of the taxing entity which is required
4    solely by a reduction of the assessment roll by the commission, county board of equalization, or
5    a court of competent jurisdiction, may be adopted without further notice.]:
6        (a) a change in the taxing entity's assessment roll; and
7        (b) a change in the taxing entity's adopted tax rate.
8        (2) A taxing entity is not required to comply with the public hearing and advertisement
9    requirements of Sections 59-2-918 and 59-2-919 if the commission, the county board of
10    equalization, or a court of competent jurisdiction:
11        (a) changes a taxing entity's adopted tax rate; or
12        (b) (i) makes a reduction in the taxing entity's assessment roll; and
13        (ii) the taxing entity adopts by resolution an increase in its tax rate above the certified tax
14    rate as a result of the reduction under Subsection (2)(b)(i).
15        (3) (a) Subject to the provisions of Subsection (3)(b) and except as provided in Subsection
16    (4), if an appeal under Section 59-2-1007 is resolved on or before September 15, property taxes
17    and accrued interest released from escrow after the appeal is resolved shall, for purposes of:
18        (i) making a certified tax rate adjustment under this section, be included by the taxing
19    entity as property tax revenues for the current year; or
20        (ii) authorizing the following levies, be included by the state as property tax revenues for
21    the current year:
22        (A) Section 53A-17a-135;
23        (B) Section 59-2-906.1; and
24        (C) Section 59-2-901.
25        (b) If, after including property taxes and accrued interest released from escrow as property
26    tax revenues:
27        (i) under Subsection (3)(a)(i), the property taxes and accrued interest exceed the amount
28    of revenues levied by the taxing entity for the current year, for purposes of establishing its certified
29    tax rate in subsequent years, the taxing entity shall carry forward as property tax revenues the
30    excess property taxes and accrued interest until the entire amount of remaining property taxes and
31    accrued interest have been carried forward as property tax revenues; or

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1        (ii) under Subsection (3)(a)(ii), the property taxes and accrued interest exceed the amount
2    of revenues authorized to fund the levies described in Subsections (3)(a)(ii)(A) through (C) for the
3    current year, for purposes of authorizing the levies described in Subsections (3)(a)(ii)(A) through
4    (C) in subsequent years, the state shall carry forward as property tax revenues the excess property
5    taxes and accrued interest until the entire amount of remaining property taxes and accrued interest
6    have been carried forward as property tax revenues.
7        (4) If an appeal under Section 59-2-1007 is resolved after September 15, property taxes
8    and accrued interest released from escrow after the appeal is resolved shall be included by the
9    taxing entity or the state as property tax revenues as provided in Subsection (3)(a) and subject to
10    the carry forward provisions of Subsection (3)(b) for the next fiscal year beginning after September
11    15.
12        (5) A rate adjustment under this section for:
13        (a) a taxing entity shall be:
14        (i) made by the county auditor;
15        (ii) aggregated;
16        (iii) reported by the county auditor to the commission; and
17        (iv) certified by the commission.
18        (b) the state shall be made by the commission.
19        Section 7. Section 59-2-924 is amended to read:
20         59-2-924. Report of valuation of property to county auditor and tax commission --
21     Transmittal by auditor to governing bodies -- Certified tax rate -- Adoption of tentative
22     budget.
23        (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the
24    county auditor and the commission the following statements:
25        (i) a statement [showing] containing the aggregate valuation of all taxable property in each
26    taxing entity[, together with]; and
27        (ii) a statement [showing] containing the taxable value of any additional personal property
28    estimated by the county assessor to be subject to taxation in the current [tax] year.
29        (b) The county auditor shall, on or before June 8, transmit [this statement, together with
30    an estimate of the revenue from personal property,] to the governing body of each taxing entity:
31        (i) the statements described in Subsections (1)(a)(i) and (ii);

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1        (ii) an estimate of the revenue from personal property;
2        (iii) the certified tax rate[,]; and
3        (iv) all forms necessary to submit a tax levy request[, to the governing body of each taxing
4    entity].
5        (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad valorem
6    property tax [revenue] revenues for [each] a taxing entity as h [was ] WERE h collected by that
6a    taxing entity for
7    the prior year [by that taxing entity excluding].
8        (ii) (A) For purposes of Subsection (2), "ad valorem property tax revenues" include an
9    amount of property taxes or accrued interest released from escrow as provided in Subsection
10    59-2-921(3) or (4).
11        (B) For purposes of Subsection (2), "ad valorem" property tax revenues do not include:
12        (I) collections from redemptions[,];
13        (II) interest[,]; and
14        (III) penalties. [The]
15        (iii) Except as provided in Subsection (2)(a)(iv), the certified tax rate shall be calculated
16    by dividing the ad valorem property tax revenues collected for the prior year by [that] the taxing
17    entity [excluding collections from redemptions, interest, and penalties] by the taxable value
18    established in accordance with Section 59-2-913 [except for the following].
19        (iv) The certified tax rates for the taxing entities described in this Subsection (2)(a)(iv)
20    shall be calculated as follows:
21        [(i)] (A) except as provided in Subsection (2)(a)[(ii)](iv)(B), for new taxing entities the
22    certified tax rate is zero;
23        [(ii)] (B) for each municipality incorporated on or after July 1, 1996, the certified tax rate
24    is:
25        [(A)] (I) in a county of the first, second, or third class, the levy imposed for municipal-type
26    services under Sections 17-34-1 and 17-36-9; and
27        [(B)] (II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
28    purposes and such other levies imposed solely for the municipal-type services identified in Section
29    17-34-2 and Subsection 17-36-3(24);
30        [(iii)] (C) for debt service voted on by the public, the certified tax rate shall be the actual
31    levy imposed by that section[; however], except that the certified tax rates for the following levies

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lilac-February 20, 1997

1    shall be calculated in accordance with Section 59-2-913 h AND THIS SECTION h :
2        [(iv) the exceptions for the levies granted in Subsection (2)(a)(iii) do not include:]
3        [(A)] (I) school leeways provided for under Sections 11-2-7, 53A-16-110, 53A-17a-125,
4    53A-17a-127, 53A-17a-134, 53A-17a-143, 53A-17a-145, and 53A-21-103; and
5        [(B)] (II) levies to pay for the costs of state legislative mandates or judicial or
6    administrative orders under Section 59-2-906.3; [and].
7        [(v) the certified tax rates for the levies listed in Subsection(2)(a)(iv) shall each be
8    calculated in accordance with Section 59-2-913.]
9        (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use the
10    taxable value of property on the assessment roll[, exclusive of new growth].
11        (ii) For purposes for Subsection (4)(b)(i), the taxable value of property on the assessment
12    roll does not include new growth as defined in Subsection (4)(b)(iii).
13        (iii) New growth [is] means:
14        (A) the difference between the increase in taxable value of the taxing entity from the
15    previous calendar year to the current year [less]; minus
16        (B) the amount of increase to locally assessed real property taxable values resulting from
17    factoring, reappraisal, or any other adjustments.
18        [(c) Beginning January 1, 1996, and ending December 31, 1996, if a taxing entity receives
19    increased revenues from uniform fees on tangible personal property under Section 59-2-404 or
20    59-2-405 as a result of the decrease in the minimum basic tax rate under Section 53A-17a-135 by
21    the Legislature during the 1996 Annual General Session, the taxing entity shall decrease its
22    certified tax rate to offset the increased revenues.]
23        (3) (a) [No later than] On or before June 22, each taxing entity shall annually adopt a
24    tentative budget.
25        (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
26    auditor of:
27        (i) its intent to exceed the certified tax rate; and
28        (ii) the amount by which it proposes to exceed the certified tax rate.
29        [(b)] (c) The county auditor shall notify all property owners of any intent to exceed the
30    certified tax rate in accordance with Subsection 59-2-919(2).
31        [(4) (a) Except as provided in Subsection (4)(d), for taxable years beginning January 1,
lilac-February 20, 1997

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1    1995, and ending December 31, 1996, for taxing entities operating on a calendar year basis, and
2    for fiscal years 1995-96 and 1996-97 for taxing entities operating on a fiscal year basis, a taxing
3    entity may not impose a tax rate that exceeds the certified tax rate established in Subsection (2)
4    unless the tax increase is authorized by a majority vote of the governing body and approved by a
5    vote of the people as provided in Subsection (4)(b).]
6        [(b) To obtain voter approval for a tax increase under Subsection (4)(a), the taxing entity
7    shall:]
8        [(i) hold the election on the fourth Tuesday in June; and]
9        [(ii) conduct the election according to the procedures and requirements of Title 20A
10    governing local elections.]
11        [(c) A taxing entity that imposes a tax rate under Subsections (4)(a) and (b) that exceeds
12    the certified rate established in Subsection (2) may not impose a tax rate in excess of the maximum
13    levy permitted by law.]
14        [(d) A school district that increases its tax rate under Section 53A-17a-145 for debt service,
15    the construction or remodeling of school buildings, or the purchase of school sites, buses,
16    equipment, textbooks, and supplies is not subject to the requirements of Subsections (4)(a) and
17    (b).]
18        Section 8. Section 59-2-1007 is amended to read:
19         59-2-1007. Time for application to correct assessment -- Hearings -- Appeals.
20        (1) (a) If the owner of any property assessed by the commission, or any county [with] upon
21    a showing of reasonable cause, objects to the assessment, either party may, on or before June 1,
22    apply to the commission for a hearing.
23        (b) Both [the owner and] the county, upon a showing of reasonable cause, and the owner
24    shall be allowed to be a party at any hearing under this section.
25        (2) The owner or county shall include in the application under Subsection (1)(a):
26        (a) a written statement setting forth the known facts and legal basis supporting a different
27    fair market value than the value assessed by the commission; and
28        (b) the owner's or county's estimate of the fair market value of the property.
29        (3) (a) An owner's or a county's estimate on an application under Subsection (2) of the fair
30    market value of the property may be amended prior to the hearing as provided by rule.
31        (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

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1    commission may make rules governing the procedures for amending an estimate of fair market
2    value under Subsection (3)(a).
3        (4) (a) On or before August 1, the commission shall conduct a scheduling conference with
4    all parties to a hearing under this section.
5        (b) At the scheduling conference under Subsection (4)(a), the commission shall establish
6    dates for:
7        (i) the completion of discovery;
8        (ii) the filing of prehearing motions; and
9        (iii) conducting a hearing on the protest.
10        [(3)] (5) (a) The commission shall [set a time for hearing the objection and] render a
11    written decision no later than [October 1. At the hearing] 120 days after:
12        (i) the hearing is completed; and
13        (ii) all posthearing briefs are submitted.
14        (b) Any applications not resolved by the commission within a two-year period from the
15    date of filing are considered to be denied, unless the parties stipulate to a different time period for
16    resolving an application.
17        (c) Notwithstanding Section 63-46b-14, a party may appeal to the district court for de novo
18    proceedings pursuant to Section 59-1-601 within 30 days from the day on which an application
19    is considered to be denied.
20        (6) At the hearing on the application, the commission may increase, lower, or sustain the
21    assessment if:
22        (a) the commission finds an error in the assessment; or
23        (b) it is necessary to equalize the assessment with other similarly assessed property.
24        [(4)] (7) (a) (i) [If the commission proposes to adjust an assessment which was made
25    pursuant to Section 59-2-201, the] The commission shall [furnish] send notice[, sent] by first-class
26    mail[, of its intent] to the county auditor if:
27        (A) the commission proposes to adjust [the] an assessment [to the county auditor of any
28    county whose] which was made pursuant to Section 59-2-201;
29        (B) the county's tax revenues may be affected by the commission's decision [if]; and
30        (C) the county has not already been made a party pursuant to Subsection (1).
31        (ii) The notice sent by the commission under Subsection (7)(a)(i) shall request the county

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1    to show good cause why the commission should not adjust the assessment by providing a written
2    statement:
3        (A) setting forth the known facts and legal basis[,]; and
4        (B) within 30 days from the postmarked date of the notice[, why the assessment should
5    not be adjusted].
6        (b) If a county files a response to the commission's request, the commission shall:
7        (i) hold a hearing or take [such] other appropriate action [as it considers appropriate] to
8    consider the good cause alleged by the county; and [shall then]
9        (ii) issue a written decision increasing, lowering, or sustaining the h [ county's ] h assessment
10    [with respect to such county].
11        (c) If a county does not file a response to the request issued by the commission within 30
12    days, the commission shall adjust the assessment and send a copy of its written decision [to that
13    effect] to the affected county.
14        [(5)] (8) The provisions in Subsection [(4)] (7) do not limit the rights of any county as
15    outlined in Subsection (1).
16        Section 9. Section 59-2-1317 is amended to read:
17         59-2-1317. Index of property owners -- Tax notice.
18        (1) (a) Upon receipt of the assessment roll, the county treasurer shall index the names of
19    all property owners shown by the assessment roll.
20        (b) The commission shall prescribe a form of index which shall be uniform in all the
21    counties throughout the state.
22        (2) [(a)] The treasurer shall [proceed to]:
23        (a) collect the taxes; and
24        (b) furnish to each taxpayer, except those taxpayers under Sections 59-2-1302 and
25    59-2-1307, by mail, postage prepaid, or leave at the taxpayer's residence or usual place of business,
26    if known, a notice [containing] stating:
27        (i) the kind and value of property assessed to the taxpayer, including the amount of value
28    placed in dispute by the property owner pursuant to Section 59-2-1007;
29        (ii) the street address of the property, [where] if applicable;
30        (iii) [if] that the property [is] may be subject to a detailed review in the next year under
31    Section 59-2-303.1;
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1        (iv) the amount of [tax] taxes levied[; and], including the amount of taxes levied on the
2    amount of value placed in dispute by the property owner pursuant to Section 59-2-1007; and
3        [(v) for notices applicable to the 1995 ad valorem tax year, the following statement:]
4        ["The 1995 Utah State Legislature and the governor reduced the minimum basic tax rate
5    and took other legislative action for property taxpayers statewide, resulting in a (the amount of the
6    statewide reduction determined by the commission under Subsection (2)(c)) property tax reduction.
7    Without this reduction, property taxes on an average home valued at $100,000 would have
8    increased by an additional (amount)."]
9        [(b) The notice shall set out] (v) the aggregate amount of taxes to be paid for state, county,
10    city, town, school, and other purposes.
11        [(c) (i) The commission shall determine the amount of the statewide reduction on or before
12    June 22, 1995, for purposes of the notice required under Subsection (2)(a)(v).]
13        [(ii) The amount of the statewide reduction under Subsection (2)(c)(i) shall be no less than
14    $122,000,000.]
15        (3) For any property [on] for which [a] property [tax delinquency exists] taxes are
16    delinquent, the treasurer shall stamp on the notice "Prior taxes are delinquent on this parcel."
17        (4) The notice shall [set out]:
18        (a) separately state all taxes levied only on a certain kind or class of property for a special
19    purpose [or purposes, and shall];
20        (b) have printed or stamped on it the effective rate of taxation for each purpose for which
21    taxes have been levied[,];
22        (c) state when and where the taxes are payable[,];
23        (d) state the date on which the taxes will be delinquent[,]; and
24        (e) state the penalty provided by law.
25        [(4)] (5) (a) The notice shall be mailed by November 1.
26        (b) The notice shall be in duplicate form and the county treasurer [need] is not required
27    to mail out a tax receipt acknowledging payment.
28        [(5)] (6) After the county treasurer mails the tax notices [have been mailed], the county
29    treasurer shall make available the assessment roll, map books, and statements to the clerk of the
30    county board of equalization.
31        Section 10. Section 59-2-1328 is amended to read:

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1         59-2-1328. Payment under protest -- Judgment for recovery -- Payment -- Tax levy.
2        (1) (a) If it is determined in any action that a tax, or any portion of the tax, paid under
3    protest, was unlawfully collected, a judgment for recovery of the tax plus interest as provided by
4    law, together with costs of action, shall be entered in favor of the taxpayer.
5        (b) Upon being presented a duly authenticated copy of the judgment, the proper officer or
6    officers of the state, county, or municipality whose officers collected or received the tax shall audit
7    and allow the judgment, and cause a warrant to be drawn for the amount recovered by the
8    judgment.
9        (c) If the judgment is obtained against a county, and any portion of the taxes included in
10    the judgment are state, district, school, or other taxes levied by a taxing entity which have been or
11    may be paid over to the state or to any school district or other taxing entity by the county, the
12    proper officer or officers of the state, school district, or other taxing entity shall, upon demand by
13    the county, cause a warrant to be drawn upon the treasurer of the state, school district, or other
14    taxing entity in favor of the county for the amount of the taxes received, together with interest as
15    provided by law and an equitable portion of the costs of the action.
16        (2) (a) Each taxing entity may levy a tax to pay its share of the judgment under Subsection
17    (1).
18        (b) This levy is in addition to, and exempt from, the maximum levy established for the
19    taxing entity[, but the taxing entity shall meet] and is exempt from the requirements of Sections
20    [59-2-912 through 59-2-924] 59-2-918 and 59-2-919.
21        Section 11. Section 59-2-1330 is amended to read:
22         59-2-1330. Payment of property taxes -- Unlawful collection by county -- Liability
23     of state or taxing entity -- Treatment of disputed taxes.
24        (1) Unless otherwise specifically provided by statute, property taxes shall be paid directly
25    to the county assessor or the treasurer when due.
26        (2) If the commission or a court of competent jurisdiction orders a reduction in the amount
27    of any tax levied against any property for tax purposes, the taxpayer shall be reimbursed under
28    Subsection [(2)] (3).
29        [(2) When] (3) (a) The state and any taxing entity which has received property taxes or
30    any portion of property taxes is liable to a judgment debtor for the amount the state or the taxing
31    entity received plus interest as provided in Subsection (3)(b) if:

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1        (i) the taxes are collected by the authorized officer of any county[, and];
2        (ii) a taxpayer obtains a judgment or final order from the county board of equalization or
3    [State Tax] the commission [is obtained] against the county or [its] an authorized officer of the
4    county establishing that the taxes have been unlawfully collected[,]; and
5        (iii) any portion of the taxes has been paid [over] to the state or to any taxing entity by the
6    county or its authorized officer[, the state and any taxing entity which has received the taxes or any
7    part of the taxes shall be liable to the judgment debtor for the amount so received plus interest].
8        (b) Interest under Subsection (3)(a) shall accrue:
9        (i) at a rate equal to the rate earned by the county[,];
10        (ii) (A) on the amount of taxes received from the time [of receiving] the state or a taxing
11    entity received the taxes[,]; and
12        (B) for an equitable portion of the costs of action.
13        [(3)] (4) (a) Each taxing entity may levy a tax to pay its share of the judgment or final
14    order under Subsection [(2). This] (3) if:
15        (i) the judgment or final order is issued no later than 15 days prior to the date the levy is
16    set under Subsection 59-2-924(2)(a); and
17        (ii) the amount of the judgment levy is included on the notice under Section h [59-2-1317 ]
17a     59-2-919 h .
18        (b) The levy under Subsection (4)(a) is:
19        (i) in addition to, and exempt from, the maximum levy established for the taxing entity[,
20    but the taxing entity shall meet]; and
21        (ii) exempt from the requirements of Sections [59-2-912 through 59-2-924] 59-2-918 and
22    59-2-919 h EXCEPT FOR SECTION 59-2-919(4) h .
23        (5) (a) An owner of property assessed by the commission that has filed a valuation protest
24    pursuant to Section 59-2-1007 and has not received a final decision on that protest shall pay, on
25    or before the date of delinquency, the full amount of taxes due.
26        (b) The property owner shall designate with the payment under Subsection (5)(a):
27        (i) the amount of valuation in dispute; and
28        (ii) the amount of the taxes levied on the disputed value as shown on the tax notice under
29    Section 59-2-1317.
30        (c) Subject to the provisions of Subsection (4)(d), and except as provided in Subsection
31    (4)(e), the county treasurer shall hold in escrow the disputed taxes and invest them with the
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1    county's other investment funds.
2        (d) Notwithstanding Subsection (4)(c), if the aggregate amount of all adjustments to the
3    tax rolls of any county or school district is limited in any year pursuant to Subsection 59-2-913(3),
4    the treasurer shall, on or before December 31 of that year, release from escrow to the affected
5    county or school district an amount equal to the difference between the:
6        (i) budgeted property tax revenues determined for purposes of Subsection 59-2-913(2);
7    and
8        (ii) property tax revenues assessed on the aggregate amount of the taxable value contained
9    on the tax rolls not disputed by property owners within the county pursuant to Section 59-2-1007.
10        (e) By written agreement between the county treasurer and the property owner the property
11    owner's disputed taxes may be placed in another institution and invested in compliance with the
12    provisions of Title 51, Chapter 7, State Money Management Act.
13        (f) A property owner that pays the full amount of taxes due under Subsection (5)(a) is not
14    required to pay penalties or interest on a disputed tax unless:
15        (i) a final decision is entered establishing a value greater than the value stated on the
16    disclosure notice under Section 59-2-1317; and
17        (ii) the property owner fails to pay the additional tax liability within a 45-day period after
18    the county bills the property owner for the additional tax.
19        (g) The county treasurer shall refund all amounts due to a property owner within 45 days
20    of the issuance of a final unappealed decision.
21        Section 12. Retrospective operation.
22        This act has retrospective operation to January 1, 1997.




Legislative Review Note
    as of 2-6-97 11:19 AM

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

Office of Legislative Research and General Counsel


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