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First Substitute H.B. 305

Representative Wayne A. Harper proposes the following substitute bill:


             1     
PROPERTY TAX AMENDMENTS

             2     
2002 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Wayne A. Harper

             5      This act amends the Property Tax Act to address when applications, statements, or other
             6      filings are required for an exemption from taxation or a reduction in value. This act makes
             7      technical changes. The act takes effect on January 1, 2003, and provides for retrospective
             8      operation under certain circumstances.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      AMENDS:
             11          59-2-1101, as last amended by Chapters 221 and 310, Laws of Utah 2001
             12          59-2-1102, as last amended by Chapter 86, Laws of Utah 2000
             13      ENACTS: s
             14          59-2-103.5, Utah Code Annotated 1953
             15      Be it enacted by the Legislature of the state of Utah:
             16          Section 1.
Section 59-2-103.5 is enacted to read:
             17          59-2-103.5. Procedures to obtain an exemption for residential property.
             18          (1) Subject to the other provisions of this section, a county legislative body may by
             19      ordinance require that in order for residential property to be allowed a residential exemption in
             20      accordance with Section 59-2-103 , an owner of the residential property shall file with the county
             21      board of equalization a statement:

             21a      S     ( a) ON A FORM PRESCRIBED BY THE COMMISSION BY RULE;
             22           [ (a) ] (b) s signed by all of the owners of the residential property; S [ and ]
             23          [ (b) ] (c) s certifying that the residential property is residential property S [ . ] ; AND
             23a           d) CONTAINING OTHER INFORMATION AS REQUIRED BY THE COMMISSION BY RULE. s
             24          (2) (a) Subject to Section 59-2-103 and except as provided in Subsection (3), a county
             25      board of equalization shall allow an owner described in Subsection (1) a residential exemption for


             26      the residential property described in Subsection (1) if:
             27          (i) the county legislative body enacts the ordinance described in Subsection (1); and
             28          (ii) the county board of equalization determines that the requirements of Subsection (1)
             29      are met.
             30          (b) A county board of equalization may require an owner of the residential property
             31      described in Subsection (1) to file the statement described in Subsection (1) only if:
             32          (i) that residential property was ineligible for the residential exemption authorized under
             33      Section 59-2-103 during the calendar year immediately preceding the calendar year for which the
             34      owner is seeking to claim the residential exemption for that residential property;
             35          (ii) an ownership interest in that residential property changes; or
             36          (iii) the county board of equalization determines that there is reason to believe that that
             37      residential property no longer qualifies for the residential exemption in accordance with Section
             38      59-2-103 .
             39          (3) Notwithstanding Subsection (2)(a), if a county legislative body does not enact an
             40      ordinance requiring an owner to file a statement in accordance with this section, the county board
             41      of equalization:
             42          (a) may not require an owner to file a statement for residential property to be eligible for
             43      a residential exemption in accordance with Section 59-2-103 ; and
             44          (b) shall allow a residential exemption for residential property in accordance with Section
             45      59-2-103 .
             45a      S     (4)(a) IN ACCORDANCE WITH TITLE 63, CHAPTER 46a, UTAH ADMINISTRATIVE RULEMAKING
             45b      ACT, THE COMMISSION SHALL MAKE RULES PROVIDING:
             45c          (i) THE FORM FOR THE STATEMENT DESCRIBED IN SUBSECTION (1); AND
             45d          (ii) THE CONTENTS OF THE FORM FOR THE STATEMENT DESCRIBED IN SUBSECTION (1).
             45e          (b) THE COMMISSION SHALL MAKE THE FORM DESCRIBED IN SUBSECTION (4)(a)
             45f      AVAILABLE TO COUNTIES. s
             46          Section 2. Section 59-2-1101 is amended to read:
             47           59-2-1101. Exemption of certain property -- Proportional payments for
             48      government-owned property -- County legislative body authority to adopt rules or
             49      ordinances.
             50          (1) (a) [The] Except as provided in Subsection (1)(b), the exemptions, deferrals, and
             51      abatements authorized by this part may be allowed only if the claimant is the owner of the property
             52      as of January 1 of the year the exemption is claimed[, unless].
             53          (b) Notwithstanding Subsection (1)(a), if the claimant is a federal, state, or political
             54      subdivision entity under Subsection (2)(a), (b), or (c), [in which case] the entity shall collect and
             55      pay a proportional tax based upon the length of time that the property was not owned by the entity.
             56          (2) The following property is exempt from taxation:


             57          (a) property exempt under the laws of the United States;
             58          (b) property of the state, school districts, and public libraries;
             59          (c) property of counties, cities, towns, special districts, and all other political subdivisions
             60      of the state, except as provided in Title 11, Chapter 13, Interlocal Cooperation Act;
             61          (d) property owned by a nonprofit entity which is used exclusively for religious, charitable,
             62      or educational purposes;
             63          (e) places of burial not held or used for private or corporate benefit;
             64          (f) farm equipment and machinery; and
             65          (g) intangible property.
             66          [(3) (a) The owner who receives exempt status for property, if required by the commission,
             67      shall file a signed statement, on or before March 1 each year, certifying the use to which the
             68      property has been placed during the past year. The signed statement shall contain the following
             69      information in summary form:]
             70          [(i) identity of the individual who signed the statement;]
             71          [(ii) the basis of the signer's knowledge of the use of the property;]
             72          [(iii) authority to make the signed statement on behalf of the owner;]
             73          [(iv) county where property is located; and]
             74          [(v) nature of use of the property.]
             75          [(b) If the signed statement is not filed within the time limits prescribed by the county, the
             76      exempt status may, after notice and hearing, be revoked and the property then placed on the tax
             77      rolls.]
             78          [(4) The] (3) A county legislative body may adopt rules or ordinances to:
             79          (a) effectuate the exemptions, deferrals, abatements, or other relief from taxation provided
             80      in this part; and
             81          (b) designate one or more persons to perform the functions given the county under this
             82      part.
             83          Section 3. Section 59-2-1102 is amended to read:
             84           59-2-1102. Determination of exemptions by board of equalization -- Appeal --
             85      Application for exemption -- Exceptions.
             86          (1) (a) [The] For property assessed under Part 3, County Assessment, the county board of
             87      equalization may, after giving notice in a manner prescribed by rule, determine whether certain


             88      property within the county is exempt from taxation.
             89          (b) The decision of the county board of equalization described in Subsection (1)(a) shall:
             90          (i) be in writing; and [shall]
             91          (ii) include:
             92          (A) a statement of facts; and
             93          (B) the statutory basis for its decision.
             94          (c) A copy of the decision described in Subsection (1)(a) shall be sent on or before May
             95      15 to the person or organization applying for the exemption.
             96          (2) The county board of equalization shall notify an owner of exempt property [owner]
             97      [who] that has previously received an exemption but failed to file [the] an annual statement [as
             98      required under Section 59-2-1101 ] in accordance with Subsection (9)(c) of the [board's] county
             99      board of equalization's intent to revoke the exemption on or before April 1.
             100          (3) (a) [No] Except as provided in Subsection (8) and subject to Subsection (9), a reduction
             101      may not be made under this part in the value of property and [no] an exemption may not be granted
             102      under this part unless the party affected or the party's agent:
             103          (i) makes and files with the county board of equalization a written application for the
             104      reduction or exemption, verified by signed statement[,]; and
             105          (ii) appears before the county board of equalization and shows facts upon which it is
             106      claimed the reduction should be made, or exemption granted. [The]
             107          (b) Notwithstanding Subsection (9), the county board of equalization may waive:
             108          (i) the application or personal appearance requirements of Subsection (3)(a), (4)(b), or
             109      (9)(a); or
             110          (ii) the annual statement requirements of Subsection (9)(c).
             111          (4) (a) Before the county board of equalization grants any application for exemption or
             112      reduction, [it] the county board of equalization may examine on oath the person or agent making
             113      the application. [No]
             114          (b) Except as provided in Subsection (3)(b), a reduction may not be made or exemption
             115      granted unless the person or the agent making the application attends and answers all questions
             116      pertinent to the inquiry.
             117          (5) Upon the hearing of the application the county board of equalization may subpoena any
             118      witnesses, and hear and take any evidence in relation to the pending [subject] application.


             119          (6) The county board of equalization shall hold hearings and render a written decision to
             120      determine any exemption on or before May 1 in each year.
             121          (7) Any property owner dissatisfied with the decision of the county board of equalization
             122      regarding any reduction or exemption may appeal to the commission under Section 59-2-1006 .
             123          (8) Notwithstanding Subsection (3)(a), a county board of equalization may not require an
             124      owner of property to file an application in accordance with this section in order to claim an
             125      exemption for the property under the following:
             126          (i) Subsections 59-2-1101 (2)(a) through (c);
             127          (ii) Subsection 59-2-1101 (2) S (f) OR s (g);
             128          (iii) Section 59-2-1110 ;
             129          (iv) Section 59-2-1111 ;
             130          (v) Section 59-2-1112 ;
             131          (vi) Section 59-2-1113 ; or
             132          (vii) Section 59-2-1114 .
             133          (9) (a) Except as provided in Subsections (3)(b) and (9)(b), for property described in
             134      S [ Subsections ] SUBSECTION s 59-2-1101 (2)(d) S [ through (f) ] OR (e) s , a county board of
             134a      equalization shall require an owner of
             135      that property to file an application in accordance with this section in order to claim an exemption
             136      for that property.
             137          (b) Notwithstanding Subsection (9)(a), a county board of equalization may not require an
             138      owner of property described in S [ Subsections ] SUBSECTION s 59-2-1101 (2)(d) S [ through (f) ] OR
             138a      (e) s to file an application under
             139      Subsection (9)(a) if:
             140          (i) (A) the owner filed an application under Subsection (9)(a); or
             141          (B) the county board of equalization waived the application requirements in accordance
             142      with Subsection (3)(b);
             143          (ii) the county board of equalization determines that the owner may claim an exemption
             144      for that property; and
             145          (iii) the exemption described in Subsection (9)(b)(ii) is in effect.
             146          (c) (i) Except as provided in Subsection (3)(b), for the time period that an owner is granted
             147      an exemption in accordance with this section for property described in S [ Subsections ] SUBSECTION s
             148      59-2-1101 (2)(d) S [ through (f) ] OR (e) s , a county board of equalization shall require the owner to file an
             149      annual statement on a form prescribed by the commission establishing that the property continues


             150      to be eligible for the exemption.
             151          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             152      commission shall make rules providing:
             153          (A) the form for the annual statement required by Subsection (9)(c)(i);
             154          (B) the contents of the form for the annual statement required by Subsection (9)(c)(i); and
             155          (C) procedures and requirements for making the annual statement required by Subsection
             156      (9)(c)(i).
             157          (iii) The commission shall make the form described in Subsection (9)(c)(ii)(A) available
             158      to counties.
             159          Section 4. Effective date -- Retrospective operation.
             160          (1) Subject to Subsection (2), this act takes effect on January 1, 2003.
             161          (2) Sections 59-2-103.5 and 59-2-1102 have retrospective operation for an action or appeal
             162      for which a court of competent jurisdiction, the State Tax Commission, or a county board of
             163      equalization has not issued a final unappealable judgment or order if the retrospective operation
             164      of Sections 59-2-103.5 and 59-2-1102 does not enlarge, eliminate, or destroy a vested right.


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