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First Substitute H.B. 305
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:
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
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:
22 (a) signed by all of the owners of the residential property; and
23 (b) certifying that the residential property is residential property.
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 .
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
50 (1) (a) [
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[
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), [
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.
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
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) [
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 [
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 [
99 board of equalization's intent to revoke the exemption on or before April 1.
100 (3) (a) [
101 may not be made under this part in the value of property and [
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[
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. [
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, [
113 the application. [
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 [
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)(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 Subsections 59-2-1101 (2)(d) through (f), a county board of 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 Subsections 59-2-1101 (2)(d) through (f) 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 Subsections
148 59-2-1101 (2)(d) through (f), 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
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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