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S.B. 148

This document includes Senate Committee Amendments incorporated into the bill on Thu, Feb 27, 2003 at 12:18 PM by rday. -->              1     

PROPERTY TAX - FARMLAND ASSESSMENT

             2     
ACT

             3     
2003 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Thomas V. Hatch

             6      This act modifies the Farmland Assessment Act to define terms and to modify the
             7      qualifications for agricultural use assessment. The act modifies information to be
             8      contained on certain property tax notices. The act changes the time period for an owner
             9      of land to notify the county assessor if land does not meet certain qualifications for
             10      agricultural use assessment. The act modifies provisions relating to the imposition and
             11      collection of the rollback tax, the conservation easement rollback tax, and one-time in lieu
             12      fee payments. The act modifies provisions relating to the imposition of interest for
             13      purposes of the rollback tax and the conservation easement rollback tax. The act
             14      addresses the application requirements for agricultural use assessment. The act
             15      addresses the creation and termination of a lien on certain property. The act addresses
             16      when title may pass to a governmental entity acquiring land subject to agricultural use
             17      assessment. The act makes technical changes. The act takes effect on January 1, 2004.
             18      This act affects sections of Utah Code Annotated 1953 as follows:
             19      AMENDS:
             20          59-2-502, as last amended by Chapter 141, Laws of Utah 2002
             21          59-2-503, as last amended by Chapter 141, Laws of Utah 2002
             22          59-2-504, as last amended by Chapter 141, Laws of Utah 2002
             23          59-2-505, as last amended by Chapter 141, Laws of Utah 2002
             24          59-2-506, as last amended by Chapter 141, Laws of Utah 2002
             25          59-2-506.5, as enacted by Chapter 141, Laws of Utah 2002
             26          59-2-508, as last amended by Chapter 141, Laws of Utah 2002
             27          59-2-511, as last amended by Chapter 141, Laws of Utah 2002




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             28
     Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 59-2-502 is amended to read:
             30           59-2-502. Definitions.
             31          As used in this part:
             32          (1) "Actively devoted to agricultural use" means that the land in agricultural use
             33      produces in excess of 50% of the average agricultural production per acre:
             34          (a) as determined under Section 59-2-503 ; and
             35          (b) for:
             36          (i) the given type of land; and
             37          (ii) the given county or area.
             38          (2) "Conservation easement rollback tax" means the tax imposed under Section
             39      59-2-506.5 .
             40          (3) "Identical legal ownership" means legal ownership held by:
             41          (a) identical legal parties; or
             42          (b) identical legal entities.
             43          [(3)] (4) "Land in agricultural use" means:
             44          (a) land devoted to the raising of useful plants and animals with a reasonable
             45      expectation of profit, including:
             46          (i) forages and sod crops;
             47          (ii) grains and feed crops;
             48          (iii) livestock as defined in Section 59-2-102 ;
             49          (iv) trees and fruits; or
             50          (v) vegetables, nursery, floral, and ornamental stock; or
             51          (b) land devoted to and meeting the requirements and qualifications for payments or
             52      other compensation under a crop-land retirement program with an agency of the state or federal
             53      government.
             54          (5) "Other eligible acreage" means land that is:
             55          (a) five or more contiguous acres;
             56          (b) eligible for assessment under this part; and
             57          (c) (i) located in the same county as land described in Subsection 59-2-503 (1)(a); or
             58          (ii) contiguous across county lines with land described in Subsection 59-2-503 (1)(a) as



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             59
     provided in Section 59-2-512 .
             60          [(4)] (6) "Platted" means land in which:
             61          (a) parcels of ground are laid out and mapped by their boundaries, course, and extent;
             62      and
             63          (b) the plat has been approved as provided in Section 10-9-805 or 17-27-805 .
             64          [(5)] (7) "Rollback tax" means the tax imposed under Section 59-2-506 .
             65          [(6)] (8) "Withdrawn from this part" means that land that has been assessed under this
             66      part is no longer assessed under this part or eligible for assessment under this part for any
             67      reason including that:
             68          (a) an owner voluntarily requests that the land be withdrawn from this part;
             69          (b) the land is no longer actively devoted to agricultural use;
             70          (c) (i) the land has a change in ownership; and
             71          (ii) (A) the new owner fails to apply for assessment under this part as required by
             72      Section 59-2-509 ; or
             73          (B) (I) an owner applies for assessment under this part as required by Section 59-2-509 ;
             74      and
             75          (II) the land does not meet the requirements of this part to be assessed under this part;
             76          (d) (i) the legal description of the land changes; and
             77          (ii) (A) an owner fails to apply for assessment under this part as required by Section
             78      59-2-509 ; or
             79          (B) (I) an owner applies for assessment under this part as required by Section 59-2-509 ;
             80      and
             81          (II) the land does not meet the requirements of this part to be assessed under this part;
             82          (e) if required by the county assessor, the owner of the land:
             83          (i) fails to file a new application as provided in Subsection 59-2-508 [(3)](4); or
             84          (ii) fails to file a signed statement as provided in Subsection 59-2-508 [(3)](4); or
             85          (f) except as provided in Section 59-2-503 , the land fails to meet a requirement of
             86      Section 59-2-503 .
             87          Section 2. Section 59-2-503 is amended to read:
             88           59-2-503. Qualifications for agricultural use assessment.
             89          (1) For general property tax purposes, land may be assessed on the basis of the value



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             90
     that the land has for agricultural use if the land:
             91          (a) is not less than five contiguous acres in area, except that land may be assessed on
             92      the basis of the value that the land has for agricultural use:
             93          (i) if:
             94          (A) the land is devoted to agricultural use in conjunction with other eligible acreage [in
             95      the same county]; and
             96          (B) [subject to Subsection (6),] the land and the other eligible acreage described in
             97      Subsection (1)(a)(i)(A) have identical legal ownership; or
             98          (ii) as provided under Subsection (4); and
             99          (b) except as provided in Subsection (5):
             100          (i) is actively devoted to agricultural use; and
             101          (ii) has been actively devoted to agricultural use for at least two successive years
             102      immediately preceding the tax year for which the land is being assessed under this part.
             103          (2) In determining whether land is actively devoted to agricultural use, production per
             104      acre for a given county or area and a given type of land shall be determined by using the first
             105      applicable of the following:
             106          (a) production levels reported in the current publication of the Utah Agricultural
             107      Statistics;
             108          (b) current crop budgets developed and published by Utah State University; and
             109          (c) other acceptable standards of agricultural production designated by the commission
             110      by rule adopted in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             111      Act.
             112          (3) Land may be assessed on the basis of the land's agricultural value if the land:
             113          (a) is subject to the privilege tax imposed by Section 59-4-101 ;
             114          (b) is owned by the state or any of the state's political subdivisions; and
             115          (c) meets the requirements of Subsection (1).
             116          (4) Notwithstanding Subsection (1)(a), the commission or a county board of
             117      equalization may grant a waiver of the acreage limitation for land upon:
             118          (a) appeal by the owner; and
             119          (b) submission of proof that:
             120          (i) 80% or more of the owner's, purchaser's, or lessee's income is derived from



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             121
     agricultural products produced on the property in question; or
             122          (ii) (A) the failure to meet the acreage requirement arose solely as a result of an
             123      acquisition by a governmental entity by:
             124          (I) eminent domain; or
             125          (II) the threat or imminence of an eminent domain proceeding;
             126          (B) the land is actively devoted to agricultural use; and
             127          (C) no change occurs in the ownership of the land.
             128          (5) (a) Notwithstanding Subsection (1)(b), the commission or a county board of
             129      equalization may grant a waiver of the requirement that the land is actively devoted to
             130      agricultural use for the tax year for which the land is being assessed under this part upon:
             131          (i) appeal by the owner; and
             132          (ii) submission of proof that:
             133          (A) the land was assessed on the basis of agricultural use for at least two years
             134      immediately preceding that tax year; and
             135          (B) the failure to meet the agricultural production requirements for that tax year was
             136      due to no fault or act of the owner, purchaser, or lessee.
             137          (b) As used in Subsection (5)(a), "fault" does not include:
             138          (i) intentional planting of crops or trees which, because of the maturation period, do
             139      not give the owner, purchaser, or lessee a reasonable opportunity to satisfy the production
             140      levels required for land actively devoted to agricultural use; or
             141          (ii) implementation of a bona fide range improvement program, crop rotation program,
             142      or other similar accepted cultural practices which do not give the owner, purchaser, or lessee a
             143      reasonable opportunity to satisfy the production levels required for land actively devoted to
             144      agricultural use.
             145          [(6) (a) For purposes of Subsection (1)(a)(i)(B), the land and the other eligible acreage
             146      described in Subsection (1)(a)(i)(B) are considered to have identical legal ownership regardless
             147      of whether the one or more persons that have a beneficial ownership in the land and the other
             148      eligible acreage:]
             149          [(i) own the land and the other eligible acreage; or]
             150          [(ii) are beneficiaries of a trust if the land and the other eligible acreage are held in
             151      trust.]



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Senate Committee Amendments 2-27-2003 rd/rlr
             152
         [(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             153      the commission may by rule define what constitutes:]
             154          [(i) a beneficial interest; and]
             155          [(ii) consistent with Subsection (1) and this Subsection (6), identical legal ownership.]
             156          Section 3. Section 59-2-504 is amended to read:
             157           59-2-504. Exclusions from designation as agricultural use -- Exception.
             158          (1) Except as provided in Subsection (2), land may not be assessed under this part if
             159      the land is:
             160          (a) part of a platted subdivision or planned unit development, with restrictions
             161      prohibiting its use for agricultural purposes with surface improvements in place, whether
             162      within or without a city; or
             163          (b) platted with surface improvements in place that are not an integral part of
             164      agricultural use.
             165          (2) (a) If land has been platted with surface improvements in place, the land has been
             166      withdrawn from this part, and the owner is not able to transfer title to the platted property, or
             167      continue development of the platted property due to economic circumstances, or some other
             168      reasonable cause, the owner may petition the county assessor for reinstatement under this part
             169      for assessment purposes as land in agricultural use without vacating the subdivision plat.
             170          (b) The county assessor may grant the petition for reinstatement described in
             171      Subsection (2)(a) if the land is actively devoted to agricultural use.
             172          (3) For purposes of this section[,]:
             173          (a) "platted with surface improvements in place" means [any of the following surface
             174      improvements are in place] that:
             175          (i) land is platted; and
             176          (ii) all surface improvements necessary for the land to be sold as a lot or a unit are in
             177      place:
             178          (A) regardless of whether or not S IT IS s the owner of the land S WHO s puts the surface
             178a      improvements
             179      in place; and
             180          (B) as determined by the:
             181          (I) county legislative body if the land is located in an unincorporated area of the
             182      county;



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             183
         (II) city legislative body if the land is located in a city; or
             184          (III) town legislative body if the land is located in a town; and
             185          (b) "surface improvement" means:
             186          [(a)] (i) a curb;
             187          [(b)] (ii) a gutter; or
             188          [(c)] (iii) pavement.
             189          Section 4. Section 59-2-505 is amended to read:
             190           59-2-505. Indicia of value for agricultural use assessment -- Inclusion of fair
             191      market value on tax notice.
             192          (1) (a) The county assessor shall consider only those indicia of value that the land has
             193      for agricultural use as determined by the commission when assessing land:
             194          (i) that meets the requirements of Section 59-2-503 to be assessed under this part; and
             195          (ii) for which the owner has:
             196          (A) made a timely application in accordance with Section 59-2-508 for assessment
             197      under this part for the tax year for which the land is being assessed; and
             198          (B) obtained approval of the application described in Subsection (1)(a)(ii)(A) from the
             199      county assessor.
             200          (b) If land that becomes subject to a conservation easement created in accordance with
             201      Title 57, Chapter 18, Land Conservation Easement Act, meets the requirements of Subsection
             202      (1)(a) for assessment under this part, the county assessor shall consider only those indicia of
             203      value that the land has for agricultural use in accordance with Subsection (1)(a) when assessing
             204      the land.
             205          (2) In addition to the value determined in accordance with Subsection (1), the [assessor
             206      shall include the] fair market value assessment shall be included on the [notice] notices
             207      described in:
             208          (a) Subsection 59-2-919 (4)[.]; and
             209          (b) Section 59-2-1317 .
             210          (3) The county board of equalization shall review the agricultural use value and fair
             211      market value assessments each year as provided under Section 59-2-1001 .
             212          Section 5. Section 59-2-506 is amended to read:
             213           59-2-506. Rollback tax -- Penalty -- Lien -- Computation of tax -- Procedure --



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             214
     Collection -- Distribution.
             215          (1) Except as provided in this section, Section 59-2-506.5 , or Section 59-2-511 , if land
             216      is withdrawn from this part, the land is subject to a rollback tax imposed in accordance with
             217      this section.
             218          (2) (a) An owner shall notify the county assessor that land is withdrawn from this part
             219      within [180] 120 days after the day on which the land is withdrawn from this part.
             220          (b) An owner that fails to notify the county assessor under Subsection (2)(a) that land is
             221      withdrawn from this part is subject to a penalty equal to the greater of:
             222          (i) $10; or
             223          (ii) 2% of the rollback tax due for the last year of the rollback period.
             224          [(3) The rollback tax is:]
             225          [(a) a lien on the land assessed under this part until paid; and]
             226          [(b) due and payable on the day the county assessor mails the notice required by
             227      Subsection (6).]
             228          [(4)] (3) (a) The county assessor shall determine the amount of the rollback tax by
             229      computing the difference for the rollback period described in Subsection [(4)] (3)(b) between:
             230          (i) the tax paid while the land was assessed under this part; and
             231          (ii) the tax that would have been paid had the property not been assessed under this
             232      part.
             233          (b) For purposes of this section, the rollback period is a time period that:
             234          (i) begins on the later of:
             235          (A) the date the land is first assessed under this part; or
             236          (B) five years preceding the day on which the county assessor mails the notice required
             237      by Subsection [(6)] (5); and
             238          (ii) ends the day on which the county assessor mails the notice required by Subsection
             239      [(6)] (5).
             240          [(5)] (4) (a) The county treasurer shall:
             241          (i) collect the rollback tax; and
             242          (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
             243      on the property has been satisfied[.] by:
             244          (A) preparing a document that certifies that the rollback tax lien on the property has



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             245
     been satisfied; and
             246          (B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
             247      for recordation.
             248          (b) The rollback tax collected under this section shall:
             249          (i) be paid into the county treasury; and
             250          (ii) be paid by the county treasurer to the various taxing entities pro rata in accordance
             251      with the property tax levies for the current year.
             252          [(6)] (5) (a) The county assessor shall mail to an owner of the land that is subject to a
             253      rollback tax a notice that:
             254          (i) the land is withdrawn from this part;
             255          (ii) the land is subject to a rollback tax under this section; and
             256          (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
             257      30 days after the day on which the county assessor mails the notice.
             258          (b) (i) [The] The rollback tax is due and payable on the day the county assessor mails
             259      the notice required by Subsection (5)(a).
             260          (ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
             261      is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
             262      the county assessor mails the notice required by Subsection [(6)] (5)(a).
             263          [(7) The following shall be governed by the procedures provided for the assessment
             264      and taxation of real property not assessed under this part:]
             265          [(a) except as provided in this section, the assessment of the rollback tax imposed by
             266      Subsection (1);]
             267          [(b) the attachment of the lien for the rollback tax; and]
             268          [(c) the right of an owner or other interested party to review any judgment of the
             269      county board of equalization affecting the rollback tax.]
             270          (6) (a) Subject to Subsection (6)(b), the following are a lien on the land assessed under
             271      this part:
             272          (i) the rollback tax; and
             273          (ii) interest imposed in accordance with Subsection (7).
             274          (b) The lien described in Subsection (6)(a) shall:
             275          (i) arise upon the imposition of the rollback tax under this section;



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             276
         (ii) end on the day on which the rollback tax and interest imposed in accordance with
             277      Subsection (7) are paid in full; and
             278          (iii) relate back to the first day of the rollback period described in Subsection (3)(b).
             279          (7) (a) A delinquent rollback tax under this section shall accrue interest:
             280          (i) from the date of delinquency until paid; and
             281          (ii) at the interest rate established under Section 59-2-1331 and in effect on January 1
             282      of the year in which the delinquency occurs.
             283          (b) A rollback tax that is delinquent on September 1 of any year shall be included on
             284      the notice required by Section 59-2-1317 , along with interest calculated on that delinquent
             285      amount through November 30 of the year in which the notice under Section 59-2-1317 is
             286      mailed.
             287          (8) (a) Land that becomes ineligible for assessment under this part only as a result of an
             288      amendment to this part is not subject to the rollback tax if the owner of the land notifies the
             289      county assessor that the land is withdrawn from this part in accordance with Subsection (2).
             290          (b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
             291      an event other than an amendment to this part, whether voluntary or involuntary, is subject to
             292      the rollback tax.
             293          (9) Except as provided in Section 59-2-511 , land that becomes exempt from taxation
             294      under Utah Constitution Article XIII, Section [2] 3, is not subject to the rollback tax if the land
             295      meets the requirements of Section 59-2-503 to be assessed under this part.
             296          (10) (a) Subject to Subsection (10)(b), an owner of land may appeal to the county
             297      board of equalization:
             298          (i) a decision by a county assessor to withdraw land from assessment under this part; or
             299          (ii) impose a rollback tax under this section.
             300          (b) An owner shall file an appeal under Subsection (10)(a) no later than 45 days after
             301      the day on which the county assessor mails the notice required by Subsection (5).
             302          Section 6. Section 59-2-506.5 is amended to read:
             303           59-2-506.5. Conservation easement rollback tax -- One-time in lieu fee payment --
             304      Computation -- Lien -- Procedure -- Collection -- Distribution.
             305          (1) (a) Notwithstanding Section 59-2-506 and subject to the requirements of this
             306      section, land is not subject to the rollback tax under Section 59-2-506 , if:



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             307
         (i) the land becomes subject to a conservation easement created in accordance with
             308      Title 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 conservation contribution for federal purposes under Section
             311      170(h), Internal Revenue Code;
             312          (iii) the land was assessed under this part in the tax year preceding the tax year that the
             313      land does not meet the requirements of Section 59-2-503 ;
             314          (iv) after the creation of the conservation easement described in Subsection (1)(a)(i),
             315      the land does not meet the requirements of Section 59-2-503 ; and
             316          (v) an owner of the land notifies the county assessor as provided in Subsection (1)(b).
             317          (b) An owner of land described in Subsection (1)(a) shall notify the county assessor
             318      that the land meets the requirements of Subsection (1)(a) within 30 days after the day on which
             319      the land does not meet the requirements of Section 59-2-503 .
             320          (2) (a) Except as provided in Subsection (4), if a conservation easement is terminated
             321      in accordance with Section 57-18-5 :
             322          (i) the land described in Subsection (1) is subject to a conservation easement rollback
             323      tax imposed in accordance with this section; or
             324          (ii) if the land described in Subsection (1) is owned by a governmental entity as defined
             325      in Section 59-2-511 , the land is subject to a one-time in lieu fee payment that is:
             326          (A) in an amount equal to the conservation easement rollback tax imposed in
             327      accordance with this section; and
             328          (B) except as provided in Subsection (2)(b), paid, collected, and distributed in the same
             329      manner as the conservation easement rollback tax imposed in accordance with this section.
             330          (b) Notwithstanding Subsection (2)(a)(ii)(B), a one-time in lieu fee payment under
             331      Subsection (2)(a)(ii) is not a lien on the land described in Subsection (2)(a)(ii).
             332          [(b)] (c) (i) The conservation easement rollback tax is an amount equal to [the product
             333      of: (i)] 20 times the property tax imposed on the land for each year [during the time period that
             334      is the shorter of:] for the rollback period described in Subsection (2)(c)(ii).
             335          [(A) the time period during which the land is subject to a conservation easement
             336      described in Subsection (1); or]
             337          [(B) five years before the county assessor mails the notice required by Subsection



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             338
     (3)(b); and]
             339          [(ii) 20.]
             340          (ii) For purposes of Subsection (2)(c)(i), the rollback period is a time period that:
             341          (A) begins on the later of:
             342          (I) the date the land became subject to a conservation easement; or
             343          (II) five years preceding the day on which the county assessor mails the notice required
             344      by Subsection (3)(a); and
             345          (B) ends the day on which the county assessor mails the notice required by Subsection
             346      (3)(a).
             347          [(c)] (d) An owner shall notify the county assessor that a conservation easement on
             348      land described in Subsection (1) has been terminated in accordance with Section 57-18-5
             349      within 180 days after the day on which the conservation easement is terminated.
             350          [(3) (a) The conservation easement rollback tax under this section is:]
             351          [(i) a lien on the land described in Subsection (1) until paid; and]
             352          [(ii) due and payable on the day the county assessor mails the notice required by
             353      Subsection (3)(b).]
             354          [(b)] (3) (a) If land is subject to a conservation easement rollback tax under Subsection
             355      (2), the county assessor shall mail to an owner of the land a notice that:
             356          (i) the land is subject to a conservation easement rollback tax under this section; and
             357          (ii) the conservation easement rollback tax is delinquent if the owner of the land does
             358      not pay the tax within 30 days after the day on which the county assessor mails the notice.
             359          [(c)] (b) The conservation easement rollback tax is:
             360          (i) due and payable on the day the county assessor mails the notice required by
             361      Subsection (3)(a);
             362          (ii) delinquent if an owner of the land that is subject to the conservation easement
             363      rollback tax does not pay the conservation easement rollback tax within 30 days after the day
             364      on which the county assessor mails the notice required by Subsection (3)[(b).] (a); and
             365          (iii) subject to the same:
             366          (A) interest provisions of Subsection 59-2-506 (7) that apply to the rollback tax; and
             367          (B) notice requirements of Subsection 59-2-506 (7) that apply to the rollback tax.
             368          [(d) The] (c) (i) Except as provided in Subsection (3)(c)(ii), conservation easement



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             369
     rollback tax shall be paid, collected, subject to a lien, and distributed in a manner consistent
             370      with this section and Section 59-2-506 .
             371          (ii) Notwithstanding Subsection (3)(c)(i), a lien under Subsection (3)(c)(i) relates back
             372      to the day on which the conservation easement was terminated.
             373          (4) (a) Notwithstanding Subsection (2), land described in Subsection (2) is not subject
             374      to the conservation easement rollback tax or the one-time in lieu fee payment required by
             375      Subsection (2) if after the conservation easement is terminated in accordance with Section
             376      57-18-5 :
             377          (i) an owner of the land applies for assessment of the land as land in agricultural use
             378      under this part within 30 days after the day on which the conservation easement is terminated;
             379      and
             380          (ii) the application for assessment of the land described in Subsection (4)(a)(i) is
             381      approved within two years after the day on which the application was filed.
             382          (b) Notwithstanding Subsection (4)(a), if the land described in Subsection (4)(a)(i)
             383      does not receive approval for assessment as land in agricultural use under this part within two
             384      years after the day on which the application was filed under Subsection (4)(a), an owner of the
             385      land shall:
             386          (i) within 30 days after the day on which the two-year period expires, notify the county
             387      assessor that the two-year period expired; and
             388          (ii) pay the conservation easement rollback tax or the one-time in lieu fee payment
             389      required by Subsection (2) as provided in this section.
             390          (5) Land subject to a conservation easement created in accordance with Title 57,
             391      Chapter 18, Land Conservation Easement Act, is not subject to a conservation easement
             392      rollback tax or a one-time in lieu fee payment if the land is assessed under this part in
             393      accordance with Section 59-2-505 .
             394          Section 7. Section 59-2-508 is amended to read:
             395           59-2-508. Application -- Signed statement -- Consent to audit and review --
             396      Notice.
             397          (1) If an owner of land eligible for assessment under this part wants the land to be
             398      assessed under this part, the owner shall submit an application to the county assessor of the
             399      county in which the land is located.



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             400
         (2) An application required by Subsection (1) shall:
             401          (a) be on a form:
             402          (i) approved by the commission; and
             403          (ii) provided to an owner:
             404          (A) by the county assessor; and
             405          (B) at the request of an owner;
             406          (b) provide for the reporting of information related to this part;
             407          (c) be submitted by:
             408          (i) May 1 of the tax year in which assessment under Subsection (1) is requested if the
             409      land was not assessed under this part in the year before the application is submitted; or
             410          (ii) by the date otherwise required by this part for land that prior to the application
             411      being submitted has been assessed under this part;
             412          (d) be signed by all of the owners of the land that under the application would be
             413      assessed under this part;
             414          (e) be accompanied by the prescribed fees made payable to the county [treasurer]
             415      recorder; [and]
             416          (f) include a certification by an owner that the facts set forth in the application or
             417      signed statement are true;
             418          (g) include a statement that the application constitutes consent by the owners of the
             419      land to the creation of a lien upon the land as provided in this part; and
             420          [(f)] (h) be recorded by the county recorder.
             421          (3) The application required by Subsection (2) constitutes consent by the owners of the
             422      land to the creation of a lien upon the land as provided in this part.
             423          [(3)] (4) (a) Once the application for assessment described in Subsection (1) has been
             424      approved, the county may:
             425          (i) require the owner to submit a new application or a signed statement:
             426          (A) by written request of the county assessor; and
             427          (B) that verifies that the land qualifies for assessment under this part; or
             428          (ii) except as provided in Subsection [(3)] (4)(b), require no additional signed
             429      statement or application for assessment under this part.
             430          (b) Notwithstanding Subsection [(3)] (4)(a), a county shall require that an owner



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             431
     provide notice if land is withdrawn from this part:
             432          (i) as provided in Section 59-2-506 ; or
             433          (ii) for land that is subject to a conservation easement created in accordance with
             434      Section 59-2-506.5 , as provided in Section 59-2-506.5 .
             435          (c) An application or signed statement required under Subsection [(3)] (4)(a) shall be
             436      submitted by the date specified in the written request of the county assessor for the application
             437      or signed statement.
             438          [(4)] (5) A certification [by an owner that the facts set forth in the application or signed
             439      statement are true] under Subsection (2)(f) is considered as if made under oath and subject to
             440      the same penalties as provided by law for perjury.
             441          [(5)] (6) (a) All owners applying for participation under this part and all purchasers or
             442      lessees signing statements under Subsection [(6)] (7) are considered to have given their consent
             443      to field audit and review by:
             444          (i) the commission;
             445          (ii) the county assessor; or
             446          (iii) the commission and the county assessor.
             447          (b) The consent described in Subsection [(5)] (6)(a) is a condition to the acceptance of
             448      any application or signed statement.
             449          [(6)] (7) Any owner of land eligible for assessment under this part because a purchaser
             450      or lessee actively devotes the land to agricultural use as required by Section 59-2-503 , may
             451      qualify the land for assessment under this part by submitting with the application required
             452      under Subsection (2), a signed statement from that purchaser or lessee certifying those facts
             453      that would be necessary to meet the requirements of Section 59-2-503 for assessment under
             454      this part.
             455          Section 8. Section 59-2-511 is amended to read:
             456           59-2-511. Acquisition of land by governmental entity -- Requirements -- Rollback
             457      tax -- One-time in lieu fee payment.
             458          (1) For purposes of this section, "governmental entity" means:
             459          (a) the United States;
             460          (b) the state;
             461          (c) a political subdivision of the state, including:



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             462
         (i) a county;
             463          (ii) a city;
             464          (iii) a town;
             465          (iv) a school district; or
             466          (v) a special district; or
             467          (d) an entity created by the state or the United States, including:
             468          (i) an agency;
             469          (ii) a board;
             470          (iii) a bureau;
             471          (iv) a commission;
             472          (v) a committee;
             473          (vi) a department;
             474          (vii) a division;
             475          (viii) an institution;
             476          (ix) an instrumentality; or
             477          (x) an office.
             478          (2) (a) Except as provided in Subsections (3) and (4), land acquired by a governmental
             479      entity is subject to the rollback tax imposed by this part if:
             480          (i) prior to the governmental entity acquiring the land, the land is assessed under this
             481      part; and
             482          (ii) after the governmental entity acquires the land, the land does not meet the
             483      requirements of Section 59-2-503 for assessment under this part.
             484          (b) A person dedicating a public right-of-way to a governmental entity shall pay the
             485      rollback tax imposed by this part if:
             486          (i) a portion of the public right-of-way is located within a subdivision as defined in
             487      Section 10-9-103 ; or
             488          (ii) in exchange for the dedication, the person dedicating the public right-of-way
             489      receives:
             490          (A) money; or
             491          (B) other consideration.
             492          (3) (a) Except as provided in Subsection (4), land acquired by a governmental entity is



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             493
     not subject to the rollback tax imposed by this part, but is subject to a one-time in lieu fee
             494      payment as provided in Subsection (3)(b), if:
             495          (i) the governmental entity acquires the land by eminent domain;
             496          (ii) (A) the land is under the threat or imminence of eminent domain proceedings; and
             497          (B) the governmental entity provides written notice of the proceedings to the owner; or
             498          (iii) the land is donated to the governmental entity.
             499          (b) (i) If a governmental entity acquires land under Subsection (3)(a)(iii), the
             500      governmental entity shall make a one-time in lieu fee payment:
             501          (A) to the county treasurer of the county in which the land is located; and
             502          (B) in an amount equal to the amount of rollback tax calculated under Section
             503      59-2-506 .
             504          (ii) If a governmental entity acquires land under Subsection (3)(a)(i) or (3)(a)(ii), the
             505      governmental entity shall make a one-time in lieu fee payment:
             506          (A) to the county treasurer of the county in which the land is located; and
             507          (B) (I) if the land remaining after the acquisition by the governmental entity meets the
             508      requirements of Section 59-2-503 , in an amount equal to the rollback tax under Section
             509      59-2-506 on the land acquired by the governmental entity; or
             510          (II) if the land remaining after the acquisition by the governmental entity is less than
             511      five acres, in an amount equal to the rollback tax under Section 59-2-506 on the land acquired
             512      by the governmental entity and the land remaining after the acquisition by the governmental
             513      entity.
             514          (iii) For purposes of Subsection (3)(b)(ii), "land remaining after the acquisition by the
             515      governmental entity" includes other eligible acreage [described in Subsection
             516      59-2-503 (1)(a)(i)] that is used in conjunction with the land remaining after the acquisition by
             517      the governmental entity.
             518          (c) A county receiving an in lieu fee payment under Subsection (3)(b) shall distribute
             519      the revenues generated by the payment:
             520          (i) to the taxing entities in which the land is located; and
             521          (ii) in the same proportion as the revenue from real property taxes is distributed.
             522          (4) Except as provided in Section 59-2-506.5 , if land acquired by a governmental entity
             523      is made subject to a conservation easement in accordance with Section 59-2-506.5 :



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             524
         (a) the land is not subject to the rollback tax imposed by this part; and
             525          (b) the governmental entity acquiring the land is not required to make an in lieu fee
             526      payment under Subsection (3)(b).
             527          (5) If a governmental entity acquires land subject to assessment under this part, title to
             528      the land may not pass to the governmental entity until the following are paid to the county
             529      treasurer:
             530          (a) any tax due under this part;
             531          (b) any one-time in lieu fee payment due under this part; and
             532          (c) any interest due under this part.
             533          Section 9. Effective date.
             534          This act takes effect on January 1, 2004.





Legislative Review Note
    as of 2-19-03 4:03 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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