S.B. 58

1

STUDY ON RESIDENTIAL PROPERTY TAX
2 AMENDMENTS
3 1998 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Howard A. Stephenson
6 Howard C. Nielson
7 Robert M. Muhlestein
8 Mike Dmitrich
Joseph L. Hull
Eddie P. Mayne
Blaze D. Wharton
Craig L. Taylor
Nathan C. Tanner
L. Steven Poulton

9 AN ACT RELATING TO REVENUE AND TAXATION; REQUIRING THE REVENUE AND
10 TAXATION INTERIM COMMITTEE TO PREPARE LEGISLATION TO PROVIDE FOR
11 THE IMPLEMENTATION OF S.J.R. 2 BY STATUTE; AND PRESCRIBING THE
12 STATUTORY PROVISIONS TO BE CONTAINED IN THE LEGISLATION PREPARED BY
13 THE REVENUE AND TAXATION INTERIM COMMITTEE.
14 This act enacts uncodified material.
15 Be it enacted by the Legislature of the state of Utah:
16 Section 1. Revenue and Taxation Interim Committee study and legislation
17 requirement -- Content of legislation.
18 (1) S.J.R. 2, Residential Property Tax Amendments Resolution, amends the property tax
19 exemption for residential property provided in Utah Constitution Article XIII, Section 2 to
20 authorize an exemption for residential property of not to exceed a statewide average of 45% of fair
21 market value as provided by statute.
22 (2) The Legislature finds that because of the complexity of the property tax system,
23 implementing S.J.R. 2 by statute requires a comprehensive review and revision of the property tax
24 provisions. To provide for the implementation of S.J.R. 2 by statute, the Revenue and Taxation
25 Interim Committee shall, on or before the November 1998 interim meeting, review the statutory
26 provisions relating to property taxation and prepare legislation for the 1999 Annual General
27 Session containing the following provisions:

1 (a) a provision that on January 1, 1999, for property tax purposes:
2 (i) all residential property in the state shall be valued at fair market value; and
3 (ii) primary residences shall be subject to an exemption of 45% of fair market value as the
4 Revenue and Taxation Interim Committee provides;
5 (b) a provision that if a person acquires residential property after January 1, 1999, the
6 residential property shall be valued:
7 (i) on the date the residential property is acquired; and
8 (ii) in an amount equal to:
9 (A) fair market value; or
10 (B) the percentage of fair market value the Revenue and Taxation Interim Committee
11 determines to be necessary to achieve an exemption for residential property of not to exceed a
12 statewide average of 45% of fair market value;
13 (c) a provision exempting from the valuation requirements under Subsection (2)(b) an
14 acquisition of residential property by a person:
15 (i) living with a spouse in the residential property at the time of the spouse's death; and
16 (ii) who acquires the residential property as a result of the spouse's death;
17 (d) a provision that beginning on January 1, 2000, residential property shall be adjusted
18 for inflation or deflation on a statewide or regional basis, subject to limits on the amount of the
19 adjustment established by the Revenue and Taxation Interim Committee to achieve an exemption
20 for residential property of not to exceed a statewide average of 45% of fair market value;
21 (e) a provision authorizing an exemption for a person acquiring residential property for
22 the first time in an amount equal to the portion of fair market value the Revenue and Taxation
23 Interim Committee determines to be necessary to achieve an exemption for residential property
24 of not to exceed a statewide average of 45% of fair market value; and
25 (f) any other provisions the Revenue and Taxation Interim Committee determines to be
26 necessary to accomplish the purposes of S.J.R. 2.


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Legislative Review Note
as of 2-2-98 1:06 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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