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; h [ PROVIDING ] CLARIFYING h THAT A DEDICATION OF
9a A PUBLIC
10 RIGHT-OF-WAY TO A GOVERNMENTAL ENTITY IS h [ NOT ] h SUBJECT TO THE
10a ROLLBACK
11 TAX h [ OR IN LIEU FEES UNDER THE FARMLAND ASSESSMENT ACT ] h ; CLARIFYING
11a 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) h [ through (6) ] AND (5) h , property acquired
63a 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.
98a h (c) PROPERTY ACQUIRED BY A COUNTY, CITY, OR TOWN UNDER THIS SUBSECTION (4) IS
98b SUBJECT TO THE ROLLBACK TAX IMPOSED BY THIS PART IF THE COUNTY, CITY, OR TOWN DOES
98c NOT USE THE PROPERTY FOR A CONSERVATION PURPOSE DESCRIBED IN SECTION 170(h),
98d INTERNAL REVENUE CODE. h
99 (5) h [ If ] EXCEPT AS PROVIDED IN SECTION 59-2-506, IF h a governmental entity acquires
99a 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