H.J.R. 10

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RESOLUTION AMENDING PROPERTY TAX VALUATION
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Ron Bigelow
5 A JOINT RESOLUTION OF THE LEGISLATURE PROPOSING TO AMEND THE UTAH
6 CONSTITUTION; AMENDING THE REVENUE AND TAXATION ARTICLE;
7 PROVIDING FOR SIZE DETERMINATION OF VALUATION OF CERTAIN TANGIBLE
8 PROPERTY; AND PROVIDING AN EFFECTIVE DATE.
9 This resolution proposes to change the Utah Constitution as follows:
10 AMENDS:
11 ARTICLE XIII, SECTION 2
12 ARTICLE XIII, SECTION 3
13 Be it resolved by the Legislature of the state of Utah, two-thirds of all members elected to each of
14 the two houses voting in favor thereof:
15 Section 1. It is proposed to amend Utah Constitution Article XIII, Section 2, to read:
16 Article XIII, Section 2. [Tangible property to be taxed -- Value ascertained --
17 Exemptions -- Remittance or abatement of taxes of poor -- Intangible property -- Legislature
18 to provide annual tax for state.]
19 (1) All tangible property in the state, not exempt under the laws of the United States, or
20 under this Constitution, shall be taxed at a uniform and equal rate in proportion to its value, to be
21 ascertained as provided by [law] statute.
22 (2) Value shall be ascertained on residential and commercial property based on the square
23 footage of the liveable or useable space and on unimproved real property based on its acreage as
24 provided by statute.
25 [(2)] (3) The following are property tax exemptions:
26 (a) the property of the state, school districts, and public libraries;
27 (b) the property of counties, cities, towns, special districts, and all other political

1 subdivisions of the state, except that to the extent and in the manner provided by the Legislature
2 the property of a county, city, town, special district, or other political subdivision of the state
3 located outside of its geographic boundaries as defined by law may be subject to the ad valorem
4 property tax;
5 (c) property owned by a nonprofit entity which is used exclusively for religious, charitable,
6 or educational purposes;
7 (d) places of burial not held or used for private or corporate benefit; and
8 (e) farm equipment and farm machinery as defined by statute. This exemption shall be
9 implemented over a period of time as provided by statute.
10 [(3)] (4) Tangible personal property present in Utah on January 1, held for sale or
11 processing and which is shipped to final destination outside this state within twelve months may
12 be deemed by law to have acquired no situs in Utah for purposes of ad valorem property taxation
13 and may be exempted by law from such taxation, whether manufactured, processed or produced
14 or otherwise originating within or without the state.
15 [(4)] (5) Tangible personal property present in Utah on January 1, held for sale in the
16 ordinary course of business and which constitutes the inventory of any retailer, or wholesaler or
17 manufacturer or farmer, or livestock raiser may be deemed for purposes of ad valorem property
18 taxation to be exempted.
19 [(5)] (6) Water rights, ditches, canals, reservoirs, power plants, pumping plants,
20 transmission lines, pipes and flumes owned and used by individuals or corporations for irrigating
21 land within the state owned by such individuals or corporations, or the individual members thereof,
22 shall be exempted from taxation to the extent that they shall be owned and used for such purposes.
23 [(6)] (7) Power plants, power transmission lines and other property used for generating and
24 delivering electrical power, a portion of which is used for furnishing power for pumping water for
25 irrigation purposes on lands in the state of Utah, may be exempted from taxation to the extent that
26 such property is used for such purposes. These exemptions shall accrue to the benefit of the users
27 of water so pumped under such regulations as the Legislature may prescribe.
28 [(7)] (8) The taxes of the poor may be remitted or abated at such times and in such manner
29 as may be provided by [law] statute.
30 [(8)] (9) The Legislature may provide by law for the exemption from taxation: of not to
31 exceed 45% of the fair market value of residential property as defined by law; and all household

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1 furnishings, furniture, and equipment used exclusively by the owner thereof at his place of abode
2 in maintaining a home for himself and family.
3 [(9)] (10) Property owned by disabled persons who were disabled in the line of duty during
4 any war, international conflict, or military training in the military service of the United States or
5 of the state of Utah and by the unmarried surviving spouses and minor orphans of such disabled
6 persons or of persons who during any war, international conflict, or military training in the military
7 service of the United States or the state of Utah were killed in action or died in the line of duty as
8 a result of such service may be exempted as the Legislature may provide.
9 [(10)] (11) Intangible property may be exempted from taxation as property or it may be
10 taxed as property in such manner and to such extent as the Legislature may provide, but if taxed
11 as property the income therefrom shall not also be taxed. Provided that if intangible property is
12 taxed as property the rate thereof shall not exceed five mills on each dollar of valuation.
13 [(11)] (12) The Legislature shall provide by law for an annual tax sufficient, with other
14 sources of revenue, to defray the estimated ordinary expenses of the state for each fiscal year. For
15 the purpose of paying the state debt, if any there be, the Legislature shall provide for levying a tax
16 annually, sufficient to pay the annual interest and to pay the principal of such debt, within twenty
17 years from the final passage of the law creating the debt.
18 Section 2. It is proposed to amend Utah Constitution Article XIII, Section 3, to read:
19 Article XIII, Section 3. [Assessment and taxation of tangible property -- Livestock
20 -- Land used for agricultural purposes.]
21 (1) The Legislature shall provide by law a uniform and equal rate of assessment on all
22 tangible property in the state, according to its value in money, except as otherwise provided in
23 Section 2 of this Article. Certain tangible property in the state shall be assessed according to its
24 value determined on the square footage or acreage of the tangible property as provided in Section
25 2 of this Article. The Legislature shall prescribe by law such provisions as shall secure a just
26 valuation for taxation of such property, so that every person and corporation shall pay a tax in
27 proportion to the value of his, her, or its tangible property, provided that the Legislature may
28 determine the manner and extent of taxing livestock.
29 (2) Land used for agricultural purposes may, as the Legislature prescribes, be assessed
30 according to its value for agricultural use without regard to the value it may have for other
31 purposes.

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1 Section 3. Submittal to electors.
2 The lieutenant governor is directed to submit this proposed amendment to the electors of
3 the state of Utah at the next general election in the manner provided by law.
4 Section 4. Effective date.
5 If approved by the electors of the state, the amendment proposed by this joint resolution
6 shall take effect on January 1, 1999.




Legislative Review Note
as of 1-28-97 2:57 PM

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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