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H.B. 155

             1     

PROPERTY TAXES - FARMLAND

             2     
ASSESSMENT ACT

             3     
2002 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Thomas V. Hatch

             6      This act modifies the Property Tax Act to amend the Farmland Assessment Act. The act
             7      defines terms, clarifies when land qualifies under or is withdrawn from the Farmland
             8      Assessment Act, and modifies provisions related to the rollback tax. The act addresses the
             9      process for applying for assessment under the Farmland Assessment Act. The act modifies
             10      provisions related to one-time payments in lieu of the rollback tax. The act addresses
             11      qualification for assessment under the Farmland Assessment Act if land is located in more
             12      than one county. This act takes effect on January 1, 2003.
             13      This act affects sections of Utah Code Annotated 1953 as follows:
             14      AMENDS:
             15          59-2-502, as last amended by Chapter 241, Laws of Utah 2001
             16          59-2-503, as last amended by Chapter 175, Laws of Utah 2000
             17          59-2-504, as repealed and reenacted by Chapter 235, Laws of Utah 1992
             18          59-2-505, as renumbered and amended by Chapter 4, Laws of Utah 1987
             19          59-2-506, as last amended by Chapter 236, Laws of Utah 1995
             20          59-2-508, as last amended by Chapter 86, Laws of Utah 2000
             21          59-2-509, as last amended by Chapter 9, Laws of Utah 2001
             22          59-2-511, as last amended by Chapter 175, Laws of Utah 2000
             23          59-2-512, as renumbered and amended by Chapter 4, Laws of Utah 1987
             24      ENACTS:
             25          59-2-506.5, Utah Code Annotated 1953
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 59-2-502 is amended to read:


             28           59-2-502. Definitions.
             29          As used in this part:
             30          (1) "Actively devoted to agricultural use" means that the land in agricultural use produces
             31      in excess of 50% of the average agricultural production per acre:
             32          (a) as determined under Section 59-2-503 ; and
             33          (b) for:
             34          (i) the given type of land; and
             35          (ii) the given county or area.
             36          (2) "Conservation easement rollback tax" means the tax imposed under Section
             37      59-2-506.5 .
             38          [(1)] (3) "Land in agricultural use" means:
             39          (a) land devoted to the raising of useful plants and animals with a reasonable expectation
             40      of profit, including:
             41          (i) forages and sod crops;
             42          (ii) grains and feed crops;
             43          (iii) livestock as defined in Section 59-2-102 ;
             44          (iv) trees and fruits; or
             45          (v) vegetables, nursery, floral, and ornamental stock; or
             46          (b) land devoted to and meeting the requirements and qualifications for payments or other
             47      compensation under a crop-land retirement program with an agency of the state or federal
             48      government.
             49          [(2)] (4) "Platted" means land in which:
             50          (a) parcels of ground are laid out and mapped by their boundaries, course, and extent; and
             51          (b) the plat has been approved as provided in Section 10-9-805 or 17-27-805 .
             52          [(3) "Rollback" means the period preceding the withdrawal of the land from the provisions
             53      of this part or the change in use of the land, not to exceed five years, during which the land is
             54      valued, assessed, and taxed under this part.]
             55          (5) "Rollback tax" means the tax imposed under Section 59-2-506 .
             56          (6) "Withdrawn from this part" means that land that has been assessed under this part is
             57      no longer assessed under this part for any reason including that:
             58          (a) an owner voluntarily requests that the land be withdrawn from this part;


             59          (b) the land is no longer actively devoted to agricultural use;
             60          (c) (i) the land has a change in ownership; and
             61          (ii) (A) the new owner fails to apply for assessment under this part as required by Section
             62      59-2-509 ; or
             63          (B) (I) an owner applies for assessment under this part as required by Section 59-2-509 ;
             64      and
             65          (II) the land does not meet the requirements of this part to be assessed under this part;
             66          (d) (i) the legal description of the land changes; and
             67          (ii) (A) an owner fails to apply for assessment under this part as required by Section
             68      59-2-509 ; or
             69          (B) (I) an owner applies for assessment under this part as required by Section 59-2-509 ;
             70      and
             71          (II) the land does not meet the requirements of this part to be assessed under this part;
             72          (e) if required by the county assessor, the owner of the land:
             73          (i) fails to file a new application as provided in Subsection 59-2-508 (3); or
             74          (ii) fails to file a signed statement as provided in Subsection 59-2-508 (3); or
             75          (f) except as provided in Section 59-2-503 , the land fails to meet a requirement of Section
             76      59-2-503 .
             77          Section 2. Section 59-2-503 is amended to read:
             78           59-2-503. Qualifications for agricultural use assessment.
             79          (1) For general property tax purposes, land may be assessed [based] on the basis of the
             80      value [which] that the land has for agricultural use if the land:
             81          (a) is not less than five contiguous acres in area, except [where] that land may be assessed
             82      on the basis of the value that the land has for agricultural use:
             83          (i) if:
             84          (A) the land is devoted to agricultural use in conjunction with other eligible acreage in the
             85      same county; and
             86          (B) subject to Subsection (6), the land and the other eligible acreage described in
             87      Subsection (1)(a)(i)(A) have identical legal ownership; or
             88          (ii) as provided under Subsection (4); and
             89          (b) except as provided in Subsection (5):


             90          (i) is actively devoted to agricultural use; and
             91          [(c)] (ii) has been actively devoted to agricultural use for at least two successive years
             92      immediately preceding the tax year [in issue] for which the land is being assessed under this part.
             93          [(2) (a) For the purpose of Subsection (1), "actively devoted to agricultural use" means that
             94      the land produces in excess of 50% of the average agricultural production per acre for the given
             95      type of land and the given county or area. (b) For the purpose of determining production levels]
             96          (2) In determining whether land is actively devoted to agricultural use, production per acre
             97      for a given county or area and a given type of land shall be determined by using the first applicable
             98      of the following [established authorities shall be used]:
             99          [(i)] (a) production levels reported in the current publication of the Utah Agricultural
             100      Statistics;
             101          [(ii)] (b) current crop budgets developed and published by Utah State University; and
             102          [(iii)] (c) other acceptable standards of agricultural production designated by the
             103      commission by rule adopted in accordance with Title 63, Chapter 46a, Utah Administrative
             104      Rulemaking Act.
             105          (3) Land may [also] be assessed [based] on [its] the basis of the land's agricultural value
             106      if the land [is]:
             107          (a) is subject to the privilege tax imposed by Section 59-4-101 ;
             108          (b) is owned by the state or any of [its] the state's political subdivisions; and
             109          (c) meets the requirements of Subsection (1).
             110          (4) [The] Notwithstanding Subsection (1)(a), the commission or a county board of
             111      equalization may grant a waiver of the acreage limitation for land upon:
             112          (a) appeal by the owner; and
             113          (b) submission of proof that:
             114          [(a)] (i) 80% or more of the owner's, purchaser's, or lessee's income is derived from
             115      agricultural products produced on the property in question; or
             116          [(b) (i)] (ii) (A) the failure to meet the acreage requirement arose solely as a result of an
             117      acquisition by a governmental entity by:
             118          (I) eminent domain; or
             119          (II) the threat or imminence of an eminent domain proceeding;
             120          [(ii)] (B) the land is actively devoted to agricultural use [as defined in Subsection (2)]; and


             121          [(iii)] (C) no change occurs in the ownership of the land.
             122          (5) (a) [The] Notwithstanding Subsection (1)(b), the commission or a county board of
             123      equalization may grant a waiver of the [agricultural production requirements] requirement that the
             124      land is actively devoted to agricultural use for the tax year [in issue] for which the land is being
             125      assessed under this part upon:
             126          (i) appeal by the owner; and
             127          (ii) submission of proof that:
             128          [(a)] (A) the land was [valued] assessed on the basis of agricultural use for at least two
             129      years immediately preceding that tax year; and
             130          [(b)] (B) the failure to meet the agricultural production requirements for that tax year was
             131      due to no fault or act of the owner, purchaser, or lessee.
             132          [(6)] (b) As used in Subsection (5)[(b)] (a), "fault" does not include [any of the following]:
             133          [(a)] (i) intentional planting of crops or trees which, because of the maturation period, do
             134      not give the owner, purchaser, or lessee a reasonable opportunity to satisfy the production [level
             135      requirement] levels required for land actively devoted to agricultural use; or
             136          [(b)] (ii) implementation of a [bona-fide] bona fide range improvement program, crop
             137      rotation program, or other similar accepted cultural practices which do not give the owner,
             138      purchaser, or lessee a reasonable opportunity to satisfy the production [level requirement] levels
             139      required for land actively devoted to agricultural use.
             140          (6) (a) For purposes of Subsection (1)(a)(i)(B), the land and the other eligible acreage
             141      described in Subsection (1)(a)(i)(B) are considered to have identical legal ownership regardless
             142      of whether the one or more persons that have a beneficial ownership in the land and the other
             143      eligible acreage:
             144          (i) own the land and the other eligible acreage; or
             145          (ii) are beneficiaries of a trust if the land and the other eligible acreage are held in trust.
             146          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             147      commission may by rule define what constitutes:
             148          (i) a beneficial interest; and
             149          (ii) consistent with Subsection (1) and this Subsection (6), identical legal ownership.
             150          Section 3. Section 59-2-504 is amended to read:
             151           59-2-504. Exclusions from designation as agricultural use -- Exception.


             152          (1) [Land shall] Except as provided in Subsection (2), land may not be [classified as
             153      agricultural land actively devoted to agricultural use] assessed under this part if the land is:
             154          [(1)] (a) part of a platted subdivision or planned unit development, with restrictions
             155      prohibiting its use for agricultural purposes with surface improvements in place, whether within
             156      or without a city; or
             157          [(2)] (b) platted with surface improvements in place that are not an integral part of
             158      agricultural use[; or].
             159          [(3) if] (2) (a) If land has been platted with surface improvements in place, [and if] the
             160      land has been [removed] withdrawn from [the farmland assessment rolls] this part, and [if] the
             161      owner is not able to transfer title to the platted property, or continue development of the platted
             162      property due to economic circumstances, or some other reasonable cause, the owner may petition
             163      the county assessor for reinstatement under [the farmland assessment act] this part for assessment
             164      purposes as land in agricultural use without vacating the subdivision plat.
             165          (b) The county assessor may grant the petition for reinstatement described in Subsection
             166      (2)(a) if the land [meets all other agricultural production requirements under this section] is
             167      actively devoted to agricultural use.
             168          [(4)] (3) For purposes of this section, "platted with surface improvements in place" means
             169      any of the following surface improvements are in place:
             170          (a) curb[,];
             171          (b) gutter[,]; or
             172          (c) pavement.
             173          Section 4. Section 59-2-505 is amended to read:
             174           59-2-505. Indicia of value for agricultural use assessment -- Inclusion of fair market
             175      value on tax notice.
             176          [If valuing] (1) (a) The county assessor shall consider only those indicia of value that the
             177      land has for agricultural use as determined by the commission when assessing land [which
             178      qualifies as land actively devoted to agricultural use under the test prescribed by Subsection
             179      59-2-503 (1), and]:
             180          (i) that meets the requirements of Section 59-2-503 to be assessed under this part; and
             181          (ii) for which the owner has:
             182          (A) made a timely application in accordance with Section 59-2-508 for [valuation,]


             183      assessment[, and taxation] under this part for the tax year [in issue, the assessor shall consider only
             184      those indicia of value which the land has for agricultural use as determined by the commission.
             185      The] for which the land is being assessed; and
             186          (B) obtained approval of the application described in Subsection (1)(a)(ii)(A) from the
             187      county assessor.
             188          (b) If land that becomes subject to a conservation easement created in accordance with
             189      Title 57, Chapter 18, Land Conservation Easement Act, meets the requirements of Subsection
             190      (1)(a) for assessment under this part, the county assessor shall consider only those indicia of value
             191      that the land has for agricultural use in accordance with Subsection (1)(a) when assessing the land.
             192          (2) In addition to the value determined in accordance with Subsection (1), the assessor
             193      shall [also] include the fair market value assessment on the [tax] notice described in Subsection
             194      59-2-919 (4).
             195          (3) The county board of equalization shall review the agricultural use value and fair market
             196      value assessments each year as provided under Section 59-2-1001 .
             197          Section 5. Section 59-2-506 is amended to read:
             198           59-2-506. Rollback tax -- Exception for conservation easements -- Penalty -- Lien --
             199      Computation of tax -- Procedure -- Collection -- Distribution.
             200          (1) [(a) If] Except as provided in Section 59-2-506.5 or 59-2-511 , if land [which is or has
             201      been in agricultural use, and is or has been valued, assessed, and taxed under this part, is applied
             202      to a use other than agricultural or is otherwise] is withdrawn from [the provisions of] this part, [it]
             203      the land is subject to [an additional] a rollback tax [referred to as the "rollback tax," and the owner
             204      shall within 180 days after the change in land use notify the county assessor of the change in land
             205      use and pay the rollback tax] imposed in accordance with this section.
             206          [(b) (i) Notwithstanding Subsection (1)(a), the rollback tax does not apply if:]
             207          [(A) land was assessed in the previous year based on the value which it had for
             208      agricultural use and is converted into a conservation easement, as defined in Title 57, Chapter 18,
             209      Land Conservation Easement Act; and]
             210          [(B) the conversion of the land is considered a qualified conservation contribution for
             211      federal purposes under Section 170(h), Internal Revenue Code.]
             212          [(ii) In order to qualify for the exemption from the rollback tax provided for in (1)(b)(i),
             213      the owner of the land shall:]


             214          [(A) convert the land into a conservation easement in accordance with the requirements
             215      of Title 57, Chapter 18, Land Conservation Easement Act; and]
             216          [(B) within 30 days after the land has been converted into a conservation easement , notify
             217      the county assessor of the change . During the period that land is valued under a conservation
             218      easement, the county assessor shall carry on the county tax roll the value of the land as valued
             219      under the conservation easement and the fair market value of the land.]
             220          [(iii) (A) Except as provided in Subsection (1)(c), if a conservation easement is
             221      terminated in accordance with Section 57-18-5 , the owner of the land shall, within 30 days after
             222      the conservation easement is terminated, notify the county assessor of the termination and pay the
             223      rollback tax as provided for in this part.]
             224          [(B) Property subject to the rollback tax under Subsection (1)(b)(iii) shall be subject to
             225      the penalties, procedures, and requirements of this section.]
             226          [(c) (i) An owner is not subject to the rollback tax under Subsection (1)(b)(iii) if:]
             227          [(A) a conservation easement is terminated under Subsection (1)(b)(iii) ;]
             228          [(B) the owner applies for valuation of the land as land in agricultural use under
             229      Subsection 59-2-508 (1) within 30 days from the day on which the conservation easement is
             230      terminated under Subsection (1)(b)(iii); and]
             231          [(C) the application for valuation as land in agricultural use is approved within two years
             232      from the day on which the application was filed.]
             233          [(ii) If the land does not receive approval for valuation as land in agricultural use within
             234      two years from the day on which the application was filed, the owner of the land shall, within 30
             235      days from the day on which the two-year period expired, notify the county assessor of the
             236      termination of the conservation easement and pay the rollback tax as provided in Subsections
             237      (1)(b)(iii)(A) and (B).]
             238          (2) (a) [Failure of the] An owner [to] shall notify the county assessor [of a change in land
             239      use] that land is withdrawn from this part within 180 days[, and failure to pay rollback taxes
             240      imposed by this section after notification by the assessor that rollback taxes are due, subjects the
             241      owner to a penalty of 100% of the rollback tax due.] after the day on which the land is withdrawn
             242      from this part.
             243          (b) An owner that fails to notify the county assessor under Subsection (2)(a) that land is
             244      withdrawn from this part is subject to a penalty equal to the greater of:


             245          (i) $10; or
             246          (ii) 2% of the rollback tax due for the last year of the rollback period.
             247          [(3) Upon receipt of the notice, the county assessor shall have the following statement
             248      recorded by the county recorder: "On (date) this land became subject to the rollback tax imposed
             249      by Section 59-2-506 ."]
             250          [(4)] (3) The rollback tax is:
             251          (a) a lien [upon] on the land assessed under this part until paid; and [is]
             252          (b) due and payable [at the time of the change in use] on the day the county assessor mails
             253      the notice required by Subsection (6).
             254          [(5)] (4) (a) The county assessor shall determine the amount of the rollback tax by
             255      computing the difference for the rollback period described in Subsection (4)(b) between:
             256          (i) the tax paid while the land was [valued] assessed under this part; and [that which]
             257          (ii) the tax that would have been paid had the property not been [valued] assessed under
             258      this part.
             259          (b) For purposes of this section, the rollback period is a time period that:
             260          (i) begins on the later of:
             261          (A) the date the land is first assessed under this part; or
             262          (B) five years preceding the day on which the county assessor mails the notice required
             263      by Subsection (6); and
             264          (ii) ends the day on which the county assessor mails the notice required by Subsection (6).
             265          (5) (a) The county treasurer shall:
             266          (i) collect the rollback tax; and
             267          (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien on
             268      the property has been satisfied.
             269          (b) The rollback tax collected under this section shall:
             270          (i) be paid into the county treasury; and
             271          (ii) be paid by the county treasurer to the various taxing entities pro rata in accordance with
             272      the property tax levies for the current year.
             273          (6) (a) The county assessor shall mail to an owner of the land that is subject to a rollback
             274      tax a notice that:
             275          (i) the land is withdrawn from this part;


             276          (ii) the land is subject to a rollback tax under this section; and
             277          (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within 30
             278      days after the day on which the county assessor mails the notice.
             279          (b) The rollback tax is delinquent if an owner of the land that is withdrawn from this part
             280      does not pay the rollback tax within 30 days after the day on which the county assessor mails the
             281      notice required by Subsection (6)(a).
             282          [(6) (a) The assessment of the rollback tax imposed by Subsection (1), the attachment of
             283      the lien for these taxes, and the right of the owner or other interested party to review any judgment
             284      of the county board of equalization affecting the rollback tax]
             285          (7) The following shall be governed by the procedures provided for the assessment and
             286      taxation of real property not [valued,] assessed[, or taxed] under this part[.]:
             287          (a) except as provided in this section, the assessment of the rollback tax imposed by
             288      Subsection (1);
             289          (b) the attachment of the lien for the rollback tax; and
             290          (c) the right of an owner or other interested party to review any judgment of the county
             291      board of equalization affecting the rollback tax.
             292          [(b) The rollback tax collected shall be paid into the county treasury and paid by the
             293      treasurer to the various taxing units pro rata in accordance with the levies for the current year.]
             294          [(7)] (8) (a) Land that becomes ineligible for [farmland] assessment [solely] under this part
             295      only as a result of [amendments] an amendment to this part is not subject to the rollback tax. [Any
             296      other change in land use or withdrawal of land]
             297          (b) Land described in Subsection (8)(a) that is withdrawn from [the provisions of] this part
             298      as a result of an event other than an amendment to this part, whether voluntary or involuntary,
             299      [subjects the land] is subject to the rollback tax.
             300          [(8)] (9) [Land which] Except as provided in Section 59-2-511 , land that becomes exempt
             301      from taxation under Utah Constitution Article XIII, Section 2, is [not considered withdrawn from
             302      this part if the land continues to be used for agricultural purposes] not subject to the rollback tax.
             303          Section 6. Section 59-2-506.5 is enacted to read:
             304          59-2-506.5. Conservation easement rollback tax.
             305          (1) (a) Notwithstanding Section 59-2-506 and subject to the requirements of this section,
             306      land is not subject to the rollback tax under Section 59-2-506 , if:


             307          (i) the land becomes subject to a conservation easement created in accordance with Title
             308      57, Chapter 18, Land Conservation Easement Act;
             309          (ii) the creation of the conservation easement described in Subsection (1)(a)(i) is
             310      considered to be a qualified contribution for federal purposes under Section 170(h), Internal
             311      Revenue Code;
             312          (iii) the land was assessed under this part in the tax year preceding the h [ creation of the
             313      conversation easement described in Subsection (1)(a)(i) ] TAX YEAR THAT THE LAND DOES NOT MEET
             313a      THE REQUIREMENTS OF SECTION 59-2-503 h ;
             314          (iv) h AFTER h the creation of the conservation easement described in Subsection (1)(a)(i) h
             314a      [ results in ] , h
             315      the land h [ being ineligible for assessment under this part ] DOES NOT MEET THE REQUIREMENTS
             315a      OF SECTION 59-2-503 h ;
             316           h [ (v) the creation of the conservation easement described in Subsection (1)(a)(i) is the only
             317      cause for the land to be ineligible for assessment under this part
] h
; and
             318           h [ (vi) ] (v) h an owner of the land notifies the county assessor as provided in Subsection
             318a      (1)(b).
             319          (b) An owner of land described in Subsection (1)(a) shall notify the county assessor that
             320      the land meets the requirements of Subsection (1)(a) within 30 days after the day on which the
             321      h [ conservation easement is created in accordance with Subsections (1)(a)(i) and (ii) ] LAND DOES NOT
             321a      MEET THE REQUIREMENTS OF SECTION 59-2-503 h .
             322          (2) (a) Except as provided in Subsection (4), h [ the land described in Subsection (1) is subject
             323      to a conservation easement rollback tax imposed in accordance with this section
] h
if h [ the ] A h
             323a      conservation
             324      easement is terminated in accordance with Section 57-18-5 h [ . ] :
             324a          (i) THE LAND DESCRIBED IN SUBSECTION (1) IS SUBJECT TO A CONSERVATION EASEMENT
             324b      ROLLBACK TAX IMPOSED IN ACCORDANCE WITH THIS SECTION; OR
             324c          (ii) IF THE LAND DESCRIBED IN SUBSECTION (1) IS OWNED BY A GOVERNMENTAL ENTITY
             324d      AS DEFINED IN SECTION 59-2-511, THE LAND IS SUBJECT TO A ONE-TIME IN LIEU FEE PAYMENT
             324e      THAT IS:
             324f          (A) IN AN AMOUNT EQUAL TO THE CONSERVATION EASEMENT ROLLBACK TAX IMPOSED IN
             324g      ACCORDANCE WITH THIS SECTION; AND
             324h           (B) PAID, COLLECTED, AND DISTRIBUTED IN THE SAME MANNER AS THE CONSERVATION
             324i      EASEMENT ROLLBACK TAX IMPOSED IN ACCORDANCE WITH THIS SECTION. h
             325          (b) The conservation easement rollback tax is an amount equal to the h [ sum ] PRODUCT h
             325a      of h [ 1% of ] : h


             325b           h (i) h the
             326      property tax imposed on the land for each year during the time period that is the shorter of:
             327           h [ (i) ] (A) h the time period during which the land is subject to a conservation easement
             327a      described
             328      in Subsection (1); or
             329           h [ (ii) ] (B) h five years before the county assessor mails the notice required by Subsection
             329a      (3)(b) h ; AND
             329b          (ii) 20 h .
             330          (c) An owner shall notify the county assessor that a conservation easement on land
             331      described in Subsection (1) has been terminated in accordance with Section 57-18-5 within 180
             332      days after the day on which the conservation easement is terminated.
             333          (3) (a) The conservation easement rollback tax under this section is:
             334          (i) a lien on the land described in Subsection (1) until paid; and
             335          (ii) due and payable on the day the county assessor mails the notice required by Subsection
             336      (3)(b).
             337          (b) If land is subject to a conservation easement rollback tax under Subsection (2), the


             338      county assessor shall mail to an owner of the land a notice that:
             339          (i) the land is subject to a conservation easement rollback tax under this section; and
             340          (ii) the conservation easement rollback tax is delinquent if the owner of the land does not
             341      pay the tax within 30 days after the day on which the county assessor mails the notice.
             342          (c) The conservation easement rollback h TAX h is delinquent if an owner of the land that is
             342a      subject
             343      to the conservation easement rollback tax does not pay the conservation easement rollback tax
             344      within 30 days after the day on which the county assessor mails the notice required by Subsection
             345      (3)(b).
             346          (d) The conservation easement rollback tax shall be paid, collected, and distributed in a
             347      manner consistent with this section and Section 59-2-506 .
             348          (4) (a) Notwithstanding Subsection (2), land described in Subsection (2) is not subject to
             349      the conservation easement rollback tax h OR THE ONE-TIME IN LIEU FEE PAYMENT REQUIRED BY
             349a      SUBSECTION (2) h if after the conservation easement is terminated in
             350      accordance with Section 57-18-5 :
             351          (i) an owner of the land applies for assessment of the land as land in agricultural use under
             352      this part within 30 days after the day on which the conservation easement is terminated; and
             353          (ii) the application for assessment of the land described in Subsection (4)(a)(i) is approved
             354      within two years after the day on which the application was filed.
             355          (b) Notwithstanding Subsection (4)(a), if the land described in Subsection (4)(a)(i) does
             356      not receive approval for assessment as land in agricultural use under this part within two years after
             357      the day on which the application was filed under Subsection (4)(a), an owner of the land shall:
             358          (i) within 30 days after the day on which the two-year period expires, notify the county
             359      assessor that the two-year period expired; and
             360          (ii) pay the conservation easement rollback tax h OR THE ONE-TIME IN LIEU FEE PAYMENT
             360a      REQUIRED BY SUBSECTION (2) h as provided in this section.
             361          (5) Land subject to a conservation easement created in accordance with Title 57, Chapter
             362      18, Land Conservation Easement Act, is not subject to a conservation easement rollback tax h OR A
             362a      ONE-TIME IN LIEU FEE PAYMENT h if the
             363      land is assessed under this part in accordance with Section 59-2-505 .
             364          Section 7. Section 59-2-508 is amended to read:
             365           59-2-508. Application -- Consent to audit and review -- Purchaser's or lessee's signed
             366      statement.
             367          (1) [The] If an owner of land eligible for [valuation as land in agricultural use must]
             368      assessment under this part wants the land to be assessed under this part, the owner shall submit an


             369      application to the county assessor of the county in which the land is located.
             370          (2) [Any] An application [for valuation, assessment, and taxation of land in agricultural
             371      use] required by Subsection (1) shall:
             372          (a) be on a form [prescribed]:
             373          (i) approved by the commission; and
             374          (ii) provided [for the use of the applicants] to an owner:
             375          (A) by the county assessor; and
             376          (B) at the request of an owner;
             377          (b) provide for the reporting of information [pertinent] related to this part;
             378          (c) be [filed prior to March 1] submitted by:
             379          (i) May 1 of the tax year in which [valuation] assessment under [this part] Subsection (1)
             380      is requested[; however, any application submitted after January 1 is subject to a $25 late fee;] if
             381      the land was not assessed under this part in the year before the application is submitted; or
             382          (ii) by the date otherwise required by this part for land that prior to the application being
             383      submitted has been assessed under this part;
             384          (d) be signed by all of the owners of the land that under the application would be assessed
             385      under this part;
             386          [(d)] (e) be accompanied by the prescribed fees made payable to the county treasurer; and
             387          [(e)] (f) be recorded by the county recorder.
             388          (3) (a) Once the application for [valuation as land in agricultural use] assessment described
             389      in Subsection (1) has been approved, the county may [elect to either]:
             390          [(a)] (i) require the owner to submit a new application or a signed statement [verifying]:
             391          (A) by written request of the county assessor; and
             392          (B) that verifies that the land qualifies for [valuation under this part every five years if
             393      requested in writing by the county assessor] assessment under this part; or
             394          [(b)] (ii) except as provided in Subsection (3)(b), require no additional signed statement
             395      or application for [valuation as agricultural land, but require that the assessor be notified when a
             396      change in the land use or land ownership occurs] assessment under this part.
             397          (b) Notwithstanding Subsection (3)(a), a county shall require that an owner provide notice
             398      if land is withdrawn from this part:
             399          (i) as provided in Section 59-2-506 ; or


             400          (ii) for land that is subject to a conservation easement created in accordance with Section
             401      59-2-506.5 , as provided in Section 59-2-506.5 .
             402          (c) An application or signed statement required under Subsection (3)(a) shall be submitted
             403      by the date specified in the written request of the county assessor for the application or signed
             404      statement.
             405          (4) A certification by [the] an owner that the facts set forth in the application or signed
             406      statement are true is considered as if made under oath and subject to the same penalties as provided
             407      by law for perjury.
             408          (5) (a) All owners applying for participation under this part and all purchasers or lessees
             409      signing statements under Subsection (6) are considered to have given their consent to field audit
             410      and review by [both]:
             411          (i) the commission [and];
             412          (ii) the county assessor[. This]; or
             413          (iii) the commission and the county assessor.
             414          (b) The consent described in Subsection (5)(a) is a condition to the acceptance of any
             415      application or signed statement.
             416          (6) Any owner of [lands] land eligible for [valuation,] assessment[, and taxation] under
             417      this part [due to the use of that land by, and the agricultural production qualifications of,] because
             418      a purchaser or lessee actively devotes the land to agricultural use as required by Section 59-2-503 ,
             419      may qualify [those lands] the land for assessment under this part by submitting[, together] with the
             420      application required under Subsection (2), a signed statement from that purchaser or lessee
             421      certifying those facts [relative to the use of the land and the purchaser's or lessee's agricultural
             422      production of the land which] that would be necessary [for qualification of those lands] to meet
             423      the requirements of Section 59-2-503 for assessment under this part.
             424          Section 8. Section 59-2-509 is amended to read:
             425           59-2-509. Change of ownership or legal description.
             426          [Continuance of valuation, assessment, and taxation under this part depends upon
             427      continuance of the land in agricultural use and compliance]
             428          (1) Subject to the other provisions of this section, land assessed under this part may
             429      continue to be assessed under this part if the land continues to comply with the [other]
             430      requirements of this part, [and not upon continuance in] regardless of whether the land continues


             431      to have:
             432          (a) the same owner [of title to the land]; or
             433          (b) legal description. [Liability for]
             434          (2) Notwithstanding Subsection (1), land described in Subsection (1) is subject to the
             435      rollback tax [attaches when a change in use or other withdrawal of the land occurs, but not when]
             436      as provided in Section 59-2-506 if the land is withdrawn from this part.
             437          (3) Notwithstanding Subsection (1), land is withdrawn from this part if:
             438          (a) there is a change in:
             439          (i) the ownership [of the title takes place, if the new owner both: (1) continues the land in
             440      agricultural use under the conditions prescribed in this part; and] of the land; or
             441          (ii) the legal description of the land; and
             442          (b) after a change described in Subsection (3)(a):
             443          (i) the land does not meet the requirements of Section 59-2-503 ; or
             444          [(2) files] (ii) an owner of the land fails to submit a new application for [valuation,]
             445      assessment[, and taxation] as provided in Section 59-2-508 .
             446          (4) An application required by this section shall be submitted within 120 days after the day
             447      on which there is a change described in Subsection (3)(a).
             448          Section 9. Section 59-2-511 is amended to read:
             449           59-2-511. Acquisition of land by governmental entity -- Requirements.
             450          (1) For purposes of this section, "governmental entity" means:
             451          (a) the United States;
             452          (b) the state;
             453          (c) a political subdivision of the state, including:
             454          (i) a county;
             455          (ii) a city;
             456          (iii) a town;
             457          (iv) a school district; or
             458          (v) a special district; or
             459          (d) an entity created by the state or the United States, including:
             460          (i) an agency;
             461          (ii) a board;


             462          (iii) a bureau;
             463          (iv) a commission;
             464          (v) a committee;
             465          (vi) a department;
             466          (vii) a division;
             467          (viii) an institution;
             468          (ix) an instrumentality; or
             469          (x) an office.
             470          (2) (a) Except as provided in Subsections (3) and (4), [property] land acquired by a
             471      governmental entity is subject to the rollback tax imposed by this part if:
             472          (i) prior to the governmental entity acquiring the [property] land, the [property] land is[:
             473      (A) valued under this part; (B)] assessed under this part; and
             474          [(C) taxed under this part; and]
             475          (ii) after the governmental entity acquires the [property] land, the [property is] land does
             476      not [actively devoted to agricultural use] meet the requirements of Section 59-2-503 .
             477          [(b) If property is subject to the rollback tax under Subsection (2)(a):]
             478          [(i) the owner of record shall pay the rollback tax imposed by this part before title may
             479      pass; and]
             480          [(ii) prior to the governmental entity acquiring the property , the governmental entity
             481      shall:]
             482          [(A) provide notice of the sale to the county assessor of the county in which the property
             483      is located; and]
             484          [(B) receive a clearance from the county assessor of the county in which the property is
             485      located stating that:]
             486          [(I) rollback taxes have been paid; or]
             487          [(II) the property is not subject to rollback taxes imposed by this part.]
             488          [(c)] (b) A person dedicating a public right-of-way to a governmental entity shall pay the
             489      rollback tax imposed by this part if:
             490          (i) a portion of the public right-of-way is located within a subdivision as defined in Section
             491      10-9-103 ; or
             492          (ii) in exchange for the dedication, the person dedicating the public right-of-way receives:


             493          (A) money; or
             494          (B) other consideration.
             495          (3) (a) Except as provided in Subsection (4), [property] land acquired by a governmental
             496      entity is not subject to the rollback tax imposed by this part, but is subject to a one-time in lieu fee
             497      payment as provided in Subsection (3)(b), if:
             498          (i) the governmental entity acquires the [property] land by eminent domain;
             499          (ii) (A) the [property] land is under the threat or imminence of eminent domain
             500      proceedings; and
             501          (B) the governmental entity provides written notice of the proceedings to the owner [of
             502      record]; or
             503          (iii) the [property] land is donated to the governmental entity.
             504          (b) (i) If a governmental entity acquires [property] land under Subsection (3)(a)(iii), the
             505      governmental entity shall make a one-time in lieu fee payment:
             506          (A) to the county [assessor] treasurer of the county in which the [property] land is located;
             507      and
             508          (B) in an amount equal to the amount of rollback tax calculated under Section 59-2-506 .
             509          (ii) If a governmental entity acquires [property] land under Subsection (3)(a)(i) or
             510      (3)(a)(ii), the governmental entity shall make a one-time in lieu fee payment:
             511          (A) to the county [assessor] treasurer of the county in which the [property] land is located;
             512      and
             513          (B) (I) if the land remaining after the acquisition [is five acres or more when used in
             514      conjunction with other qualifying acreage, then] by the governmental entity meets the requirements
             515      of Section 59-2-503 , in an amount equal to the rollback tax under Section 59-2-506 on the land
             516      acquired by the governmental entity; or
             517          (II) if the land remaining after the acquisition by the governmental entity is less than five
             518      acres [when used in conjunction with other qualifying acreage, then], in an amount equal to the
             519      rollback tax under Section 59-2-506 on the land acquired by the governmental entity and the
             520      [remaining, nonqualifying] land remaining after the acquisition by the governmental entity.
             521          (iii) For purposes of Subsection (3)(b)(ii), "land remaining after the acquisition by the
             522      governmental entity" includes other eligible acreage described in Subsection 59-2-503 (1)(a)(i) that
             523      is used in conjunction with the land remaining after the acquisition by the governmental entity.


             524          (c) A county receiving an in lieu fee payment under Subsection (3)(b) shall distribute the
             525      revenues generated by the payment:
             526          (i) to the taxing entities in which the [property] land is located; and
             527          (ii) in the same proportion as the revenue from real property taxes is distributed.
             528          (4) Except as provided in Section [ 59-2-506 ] 59-2-506.5 , if land acquired by a
             529      governmental entity [acquires property and converts the property into] is made subject to a
             530      conservation easement [under] in accordance with Section [ 59-2-506 ] 59-2-506.5 :
             531          (a) the [property] land is not subject to the rollback tax imposed by this part; and
             532          (b) the governmental entity acquiring the [property] land is not required to make an in lieu
             533      fee payment under Subsection (3)(b).
             534          Section 10. Section 59-2-512 is amended to read:
             535           59-2-512. Land located in more than one county.
             536          [Where] (1) If contiguous land in agricultural use in one ownership is located in more than
             537      one county, compliance with [the requirements of] this part:
             538          (a) shall be determined on the basis of the total area and [income] production of [that] the
             539      contiguous land[,]; and
             540          (b) is not determined on the basis of the area or [income] production of land [which] that
             541      is located in [any] one particular county.
             542          (2) If land in agricultural use in one ownership is located in more than one county but the
             543      land is not contiguous across county lines, compliance with the requirements of this part shall be
             544      determined on the basis of the total area and production of the land in each county.
             545          Section 11. Effective date.
             546          This act takes effect on January 1, 2003.




Legislative Review Note
    as of 2-4-02 2:06 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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