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S.B. 220 Enrolled

                 

CONDOMINIUM OWNERSHIP ACT

                 
1999 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Michael G. Waddoups

                  AN ACT RELATING TO THE CONDOMINIUM OWNERSHIP ACT; PROVIDING THE
                  MANNER BY WHICH TIMESHARE INTERESTS ARE TO BE VALUED FOR PROPERTY
                  TAX PURPOSES; MAKING TECHNICAL CHANGES; AND PROVIDING FOR
                  RETROSPECTIVE OPERATION.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      57-8-27, as last amended by Chapter 73, Laws of Utah 1987
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 57-8-27 is amended to read:
                       57-8-27. Separate taxation.
                      (1) Each unit and its percentage of undivided interest in the common areas and facilities
                  shall be [deemed] considered to be a parcel and shall be subject to separate assessment and
                  taxation by each assessing unit and special district for all types of taxes authorized by law,
                  including [but not limited to,] ad valorem levies and special assessments. Neither the building or
                  buildings, the property, nor any of the common areas and facilities may be considered a parcel.
                      In the event any of the interests in real property made subject to this chapter by the
                  declaration are leasehold interests, if the lease creating these interests is of record in the office of
                  the county recorder, if the balance of the term remaining under the lease is at least 40 years at the
                  time the leasehold interest is made subject to this chapter, if units are situated or are to be situated
                  on or within the real property covered by the lease, and if the lease provides that the lessee shall
                  pay all taxes and assessments imposed by governmental authority, then until ten years prior to the
                  date that the leasehold is to expire or until the lease is terminated, whichever first occurs, all taxes
                  and assessments on the real property covered by the lease shall be levied against the owner of the
                  lessee's interest. If the owner of the reversion under the lease has executed the declaration and
                  record of survey map, until ten years prior to the date that the leasehold is to expire, or until the


                  lease is terminated, whichever first occurs, all taxes and assessments on the real property covered
                  by the lease shall be separately levied against the unit owners having an interest in the lease, with
                  each unit owner for taxation purposes being considered the owner of a parcel consisting of his
                  undivided condominium interest in the fee of the real property affected by the lease.
                      (2) No forfeiture or sale of the improvements or the property as a whole for delinquent real
                  estate taxes, special assessments, or charges shall divest or in anywise affect the title to an individual
                  unit if the real estate taxes or duly levied share of the assessments and charges on the individual unit
                  are currently paid.
                      (3) Any exemption from taxes that may exist on real property or the ownership of the
                  property may not be denied by virtue of the submission of the property to this chapter.
                      (4) Timeshare interests and timeshare estates, as defined in Subsection 57-19-2 (17), may
                  not be separately taxed but shall be valued, assessed, and taxed at the unit level. The value of
                  timeshare interests and timeshare estates, for purposes of ad valorem taxation, shall be determined
                  by valuing the real property interest associated with the timeshare interest or timeshare estate,
                  exclusive of the value of any intangible property and rights associated with the acquisition,
                  operation, ownership, and use of the timeshare interest or timeshare estate, including the fees and
                  costs associated with the sale of timeshare interests and timeshare estates that exceed those fees and
                  costs normally incurred in the sale of other similar properties, the fees and costs associated with the
                  operation, ownership, and use of timeshare interests and timeshare estates, vacation exchange rights,
                  vacation conveniences and services, club memberships, and any other intangible rights and benefits
                  available to a timeshare unit owner. Nothing in this section shall be construed as requiring the
                  assessment of any real property interest associated with a timeshare interest or timeshare estate at
                  less than its fair market value. Notice of assessment, delinquency, sale, or any other purpose
                  required by law is considered sufficient for all purposes if the notice is given to the management
                  committee.
                      Section 2. Retrospective operation.
                      This act has retrospective operation to January 1, 1999.

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