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S.B. 220 Enrolled
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 [
taxation by each assessing unit and special district for all types of taxes authorized by law,
including [
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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