H.B. 360

1

PROPERTY TAX EXEMPTION
2 2004 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: James A. Ferrin
5
6 LONG TITLE
7 General Description:
8 This bill modifies the Property Tax Act to provide an exemption for property used,
9 controlled, and possessed by a school district or charter school.
10 Highlighted Provisions:
11 This bill:
12 . provides that property that is not owned but is used, controlled, and possessed by a
13 school district or charter school is exempt from property tax.
14 Monies Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 This bill provides an effective date.
18 Utah Code Sections Affected:
19 AMENDS:
20 59-2-1101, as last amended by Chapters 169 and 286, Laws of Utah 2002
21
22 Be it enacted by the Legislature of the state of Utah:
23 Section 1. Section 59-2-1101 is amended to read:
24 59-2-1101. Exemption of certain property -- Proportional payments for
25 government-owned property -- County legislative body authority to adopt rules or
26 ordinances.
27 (1) (a) Except as provided in Subsection (1)(b), the exemptions, deferrals, and

28 abatements authorized by this part may be allowed only if the claimant is:
29 (i) the owner of the property as of January 1 of the year the exemption is claimed[.]; or
30 (ii) for purposes of Subsection (2)(i), the school district or charter school that uses,
31 controls, and possesses the property as of January 1 of the year the exemption is claimed.
32 (b) Notwithstanding Subsection (1)(a), if the claimant is a federal, state, or political
33 subdivision entity under Subsection (2)(a), (b), or (c), the entity shall collect and pay a
34 proportional tax based upon the length of time that the property was not owned by the entity.
35 (2) The following property is exempt from taxation:
36 (a) property exempt under the laws of the United States;
37 (b) property of the state, school districts, and public libraries;
38 (c) property of counties, cities, towns, special districts, and all other political
39 subdivisions of the state, except as provided in Title 11, Chapter 13, Interlocal Cooperation
40 Act;
41 (d) property owned by a nonprofit entity which is used exclusively for religious,
42 charitable, or educational purposes;
43 (e) places of burial not held or used for private or corporate benefit;
44 (f) farm equipment and machinery;
45 (g) intangible property; [and]
46 (h) the ownership interest of an out-of-state public agency, as defined in Section
47 11-13-103 , in property providing additional project capacity, as defined in Section 11-13-103 ,
48 on which a fee in lieu of ad valorem property tax is payable under Section 11-13-302 [.]; and
49 (i) in addition to property that is exempt under Subsection (2)(b), property that is not
50 owned but is used, controlled, and possessed by a school district or charter school.
51 (3) A county legislative body may adopt rules or ordinances to:
52 (a) effectuate the exemptions, deferrals, abatements, or other relief from taxation
53 provided in this part; and
54 (b) designate one or more persons to perform the functions given the county under this
55 part.
56 Section 2. Effective date.
57 This bill takes effect on January 1, 2005, only if H.J.R. 26, Resolution Providing
58 Property Tax Exemption, is passed by the Legislature during the 2004 General Session and

59 approved by the voters at the 2004 regular general election.




Legislative Review Note
as of 2-9-04 8:07 AM

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

Office of Legislative Research and General Counsel