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7 This joint resolution of the Legislature proposes to amend the Revenue and Taxation Article
8 of the Utah Constitution. This joint resolution modernizes the makeup of County Boards
9 of Equalization to accommodate current county governmental structure. This joint
10 resolution clarifies and reorganizes provisions relating to revenue and taxation and makes
11 technical changes. This joint resolution directs the lieutenant governor to submit the
12 proposal to voters and provides an effective date.
13 This resolution proposes to change the Utah Constitution as follows:
15 ARTICLE XIII, SECTION 1
17 ARTICLE XIII, SECTION 4
18 ARTICLE XIII, SECTION 7
19 ARTICLE XXII, SECTION 5
20 REPEALS AND REENACTS:
21 ARTICLE XIII, SECTION 2
22 ARTICLE XIII, SECTION 3
23 ARTICLE XIII, SECTION 5
24 ARTICLE XIII, SECTION 6
25 ARTICLE XIII, SECTION 8
27 ARTICLE XIII, SECTION 9
28 ARTICLE XIII, SECTION 10
29 ARTICLE XIII, SECTION 11
30 ARTICLE XIII, SECTION 12
31 ARTICLE XIII, SECTION 13
32 ARTICLE XIII, SECTION 14
33 Be it resolved by the Legislature of the state of Utah, two-thirds of all members elected to each of
34 the two houses voting in favor thereof:
35 Section 1. It is proposed to amend Utah Constitution Article XIII, Section 1, to read:
36 Article XIII, Section 1. [Fiscal year.]
37 The Legislature shall by statute establish the fiscal year of the State.
38 Section 2. It is proposed to repeal and reenact Utah Constitution Article XIII, Section 2,
39 to read:
40 Article XIII, Section 2. [Property Tax.]
95 (1) So that each person and corporation pays a tax in proportion to the fair market value
96 of his, her, or its tangible property, all tangible property in the State that is not exempt under the
97 laws of the United States or under this Constitution shall be:
98 (a) assessed at a uniform and equal rate in proportion to its fair market value, to be
99 ascertained as provided by law; and
100 (b) taxed at a uniform and equal rate.
101 (2) Each corporation and person in the State or doing business in the State is subject to
102 taxation on the tangible property owned or used by the corporation or person within the boundaries
103 of the State or local authority levying the tax.
104 (3) The Legislature may provide by statute that land used for agricultural purposes be
105 assessed based on its value for agricultural use.
106 (4) The Legislature may by statute determine the manner and extent of taxing livestock.
107 (5) The Legislature may by statute determine the manner and extent of taxing or exempting
108 intangible property, except that any property tax on intangible property may not exceed .005 of its
109 fair market value. If any intangible property is taxed under the property tax, the income from that
110 property may not also be taxed.
111 (6) Tangible personal property required by law to be registered with the State before it is
112 used on a public highway or waterway, on public land, or in the air may be exempted from
113 property tax by statute. If the Legislature exempts tangible personal property from property tax
114 under this Subsection (6), it shall provide for the payment of uniform statewide fees or uniform
115 statewide rates of assessment or taxation on that property in lieu of the property tax. The fair
116 market value of any property exempted under this Subsection (6) shall be considered part of the
117 State tax base for determining the debt limitation under Article XIV.
118 Section 3. It is proposed to repeal and reenact Utah Constitution Article XIII, Section 3,
119 to read:
120 Article XIII, Section 3. [Property tax exemptions.]
130 (1) The following are exempt from property tax:
131 (a) property owned by the State;
132 (b) property owned by a public library;
133 (c) property owned by a school district;
134 (d) property owned by a political subdivision of the State, other than a school district, and
135 located within the political subdivision;
136 (e) property owned by a political subdivision of the State, other than a school district, and
137 located outside the political subdivision unless the Legislature by statute authorizes the property
138 tax on that property;
139 (f) property owned by a nonprofit entity used exclusively for religious, charitable, or
140 educational purposes;
141 (g) places of burial not held or used for private or corporate benefit;
142 (h) farm equipment and farm machinery as defined by statute; and
143 (i) water rights, reservoirs, pumping plants, ditches, canals, pipes, flumes, power plants,
144 and transmission lines to the extent owned and used by an individual or corporation to irrigate land
145 that is:
146 (i) within the State; and
147 (ii) owned by the individual or corporation, or by an individual member of the corporation.
148 (2) (a) The Legislature may by statute exempt the following from property tax:
149 (i) tangible personal property constituting inventory present in the State on January 1 and
150 held for sale in the ordinary course of business;
151 (ii) tangible personal property present in the State on January 1 and held for sale or
152 processing and shipped to a final destination outside the State within 12 months;
153 (iii) subject to Subsection (2)(b), property to the extent used to generate and deliver
154 electrical power for pumping water to irrigate lands in the State;
155 (iv) up to 45% of the fair market value of residential property, as defined by statute;
156 (v) household furnishings, furniture, and equipment used exclusively by the owner of that
157 property in maintaining the owner's home;
158 (vi) property owned by a disabled person who, during military training or a military
159 conflict, was disabled in the line of duty in the military service of the United States or the State;
161 (vii) property owned by the unmarried surviving spouse or the minor orphan of a person
163 (A) is described in Subsection (2)(a)(vi); or
164 (B) during military training or a military conflict, was killed in action or died in the line
165 of duty in the military service of the United States or the State.
166 (b) The exemption under Subsection (2)(a)(iii) shall accrue to the benefit of the users of
167 pumped water as provided by statute.
168 (3) The Legislature may by statute provide for the remission or abatement of the taxes of
169 the poor.
170 Section 4. It is proposed to enact Utah Constitution Article XIII, Section 4, to read:
171 Article XIII, Section 4. [Other taxes.]
172 (1) Nothing in this Constitution may be construed to prevent the Legislature from
173 providing by statute for taxes other than the property tax and for deductions, exemptions, and
174 offsets from those other taxes.
175 (2) In a statute imposing an income tax, the Legislature may:
176 (a) define the amount on which the tax is imposed by reference to a provision of the laws
177 of the United States as from time to time amended; and
178 (b) modify or provide exemptions to a provision referred to in Subsection (2)(a).
179 Section 5. It is proposed to repeal and reenact Utah Constitution Article XIII, Section 5,
180 to read:
181 Article XIII, Section 5. [Use and amount of taxes and expenditures.]
190 (1) The Legislature shall provide by statute for an annual tax sufficient, with other
191 revenues, to defray the estimated ordinary expenses of the State for each fiscal year.
192 (2) (a) For any fiscal year, the Legislature may not make an appropriation or authorize an
193 expenditure if the State's expenditure exceeds the total tax provided for by statute and applicable
194 to the particular appropriation or expenditure.
195 (b) Subsection (2)(a) does not apply to an appropriation or expenditure to suppress
196 insurrection, defend the State, or assist in defending the United States in time of war.
197 (3) For any debt of the State, the Legislature shall provide by statute for an annual tax
198 sufficient to pay:
199 (a) the annual interest; and
200 (b) the principal within 20 years after the final passage of the statute creating the debt.
201 (4) Except as provided in Article X, Section 5, Subsection (5)(a), the Legislature may not
202 impose a tax for the purpose of a political subdivision of the State, but may by statute authorize
203 political subdivisions of the State to assess and collect taxes for their own purposes.
204 (5) All revenue from taxes on intangible property or from a tax on income shall be used
205 to support the systems of public education and higher education as defined in Article X, Section
207 (6) Proceeds from fees, taxes, and other charges related to the operation of motor vehicles
208 on public highways and proceeds from an excise tax on liquid motor fuel used to propel those
209 motor vehicles shall be used for:
210 (a) statutory refunds and adjustments and costs of collection and administration;
211 (b) the construction, maintenance, and repair of State and local roads, including payment
212 for property taken for or damaged by rights-of-way and for associated administrative costs;
213 (c) driver education;
214 (d) enforcement of state motor vehicle and traffic laws; and
215 (e) the payment of the principal of and interest on any obligation of the State or a city or
216 county, issued for any of the purposes set forth in Subsection (6)(b) and to which any of the fees,
217 taxes, or other charges described in this Subsection (6) have been pledged, including any paid to
218 the State or a city or county, as provided by statute.
219 (7) Fees and taxes on tangible personal property imposed under Section 2, Subsection (6)
220 of this article are not subject to Subsection (6) of this Section 5 and shall be distributed to the
221 taxing districts in which the property is located in the same proportion as that in which the revenue
222 collected from real property tax is distributed.
223 (8) A political subdivision of the State may share its tax and other revenues with another
224 political subdivision of the State as provided by statute.
225 Section 6. It is proposed to repeal and reenact Utah Constitution Article XIII, Section 6,
226 to read:
227 Article XIII, Section 6. [State Tax Commission.]
230 (1) There shall be a State Tax Commission consisting of four members, not more than two
231 of whom may belong to the same political party.
232 (2) With the consent of the Senate, the Governor shall appoint the members of the State
233 Tax Commission for such terms as may be provided by statute.
234 (3) The State Tax Commission shall:
235 (a) administer and supervise the State's tax laws;
236 (b) assess mines and public utilities and have such other powers of original assessment as
237 the Legislature may provide by statute;
238 (c) adjust and equalize the valuation and assessment of property among the counties;
239 (d) as the Legislature provides by statute, review proposed bond issues, revise local tax
240 levies, and equalize the assessment and valuation of property within the counties; and
241 (e) have other powers as may be provided by statute.
242 (4) Notwithstanding the powers granted to the State Tax Commission in this Constitution,
243 the Legislature may by statute authorize any court established under Article VIII to adjudicate,
244 review, reconsider, or redetermine any matter decided by the State Tax Commission relating to
245 revenue and taxation.
246 Section 7. It is proposed to enact Utah Constitution Article XIII, Section 7, to read:
247 Article XIII, Section 7. [County boards of equalization.]
248 (1) In each county, there shall be a county board of equalization consisting of elected
249 county officials as provided by statute.
250 (2) Each county board of equalization shall adjust and equalize the valuation and
251 assessment of the real and personal property within its county, subject to the State Tax
252 Commission's regulation and control as provided by law.
253 (3) The county boards of equalization shall have other powers as may be provided by
255 (4) Notwithstanding the powers granted to the State Tax Commission in this Constitution,
256 the Legislature may by statute authorize any court established under Article VIII to adjudicate,
257 review, reconsider, or redetermine any matter decided by a county board of equalization relating
258 to revenue and taxation.
259 Section 8. It is proposed to repeal and reenact Utah Constitution Article XIII, Section 8,
260 to read:
261 Article XIII, Section 8. [Annual statement.]
265 The State shall publish annually an accurate statement of the receipt and expenditure of
266 public money in a manner provided by statute.
267 Section 9. It is proposed to repeal Utah Constitution Article XIII, Section 9:
268 Article XIII, Section 9. [State expenditure to be kept within revenues.]
275 Section 10. It is proposed to repeal Utah Constitution Article XIII, Section 10:
276 Article XIII, Section 10. [All property taxable where situated.]
280 Section 11. It is proposed to repeal Utah Constitution Article XIII, Section 11:
281 Article XIII, Section 11. [Creation of State Tax Commission -- Membership --
282 Governor to appoint -- Terms -- Duties -- County boards -- Duties.]
308 Section 12. It is proposed to repeal Utah Constitution Article XIII, Section 12:
309 Article XIII, Section 12. [Stamp, income, occupation, license or franchise tax
310 permissible -- Reference to United States laws in imposition of income taxes -- Income or
311 intangible property taxes allocated to public education system and higher education system.]
325 Section 13. It is proposed to repeal Utah Constitution Article XIII, Section 13:
326 Article XIII, Section 13. [Revenue from highway user and motor fuel taxes to be
327 used for highway purposes.]
343 Section 14. It is proposed to repeal Utah Constitution Article XIII, Section 14:
344 Article XIII, Section 14. [Tangible personal property tax exemption.]
358 Section 15. It is proposed to enact Utah Constitution Article XXII, Section 5, to read:
359 Article XXII, Section 5. [Officers may not profit.]
360 Each public officer who makes a profit from public money or uses public money for a
361 purpose not authorized by law shall be guilty of a felony and shall be punished as provided by law,
362 but part of the punishment shall be disqualification to hold public office.
363 Section 16. Submittal to voters.
364 The lieutenant governor is directed to submit this proposed amendment to the voters of the
365 state at the next regular general election in the manner provided by law.
366 Section 17. Effective date.
367 If the amendment proposed by this joint resolution is approved by a majority of those
368 voting on it at the next regular general election, the amendment shall take effect on January 1,
Legislative Review Note
as of 1-8-02 3:00 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.