H.B. 324

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Wed, Mar 2, 2005 at 10:21 PM by rday. --> PLEASE NOTE:
THIS DOCUMENT INCLUDES BOTH THE BILL AND ALSO A TRANSMITTAL LETTER THAT CONTAINS PASSED AMENDMENTS BUT NOT INCORPORATED INTO THE BILL.

March 2, 2005


Mr. Speaker:

The Senate passed, upon reconsideration, as amended, H.B. 324, TAXABLE VALUE ADJUSTMENT FOR PROPERTY DAMAGED BY A NATURAL DISASTER, by Representative B. Last, and it is transmitted for further consideration and with the following amendments:
1. Page 1, Line 17 Delete "40%" and reinstate "30%"

2. Page 2a, Line 58 Delete "40%" and reinstate "30%"
Lilac House Floor
Amendments 2-22-2005

3. Page 3, Line 74 Delete "40%" and reinstate "30%"
Lilac House Floor
Amendments 2-22-2005

Respectfully,



Annette B. Moore
Secretary of the Senate


16 hb0324.wpd 10:11 pm TRV/rday

This document includes House Committee Amendments incorporated into the bill on Thu, Feb 17, 2005 at 3:53 PM by chopkin. --> This document includes House Floor Amendments incorporated into the bill on Tue, Feb 22, 2005 at 11:14 AM by ddonat. --> This document includes House Floor Amendments (CORRECTED) incorporated into the bill on Wed, Feb 23, 2005 at 12:15 PM by chopkin. --> 1 TAXABLE VALUE ADJUSTMENT FOR
2 PROPERTY DAMAGED BY A NATURAL
3 DISASTER
4 2005 GENERAL SESSION
5 STATE OF UTAH
6 Sponsor: Bradley G. Last
7
8 LONG TITLE
9 General Description:
10 This bill amends the Property Tax Act to provide a H. [ tax ] valuation. H adjustment
10a for property
11 damaged by a natural disaster.
12 Highlighted Provisions:
13 This bill:
13a H. . provides that, before completing and delivering the assessment book to the
13b county auditor, the assessor shall adjust the assessment of property in the assessment book to
13c reflect an adjustment in the taxable value of any property damaged by natural disaster if the
13d adjustment is made by the county board of equalization on or before May 15; .H
14 . defines terms;
15 . grants rulemaking authority to the State Tax Commission;
16 . provides a property H. [ tax ] valuation .H adjustment for property damaged
16a by a natural disaster, if the
17 damage causes a decrease in taxable value of at least H. [ 30% ] 40% .H ;
18 . establishes application and hearing procedures for a county board of equalization to
19 determine whether the owner of property is entitled to the tax adjustment provided
20 in this bill; and
21 . provides for an appeal of a decision rendered by a county board of equalization
22 regarding the H. [ tax ] valuation .H adjustment provided in this bill.
23 Monies Appropriated in this Bill:
24 None

25 Other Special Clauses:
26 H. [ None ] This bill provides retrospective operation. .H
27 Utah Code Sections Affected:
27a H. AMENDED:
27b 59-2-311, as last amended by Chapters 75 and 86, Laws of Utah 2000 .H

28 ENACTS:
29 59-2-1004.5, Utah Code Annotated 1953
30
31 Be it enacted by the Legislature of the state of Utah:
31a H. Section 1. Section 59-2-311 is amended to read:
31b 59-2-311. Completion and delivery of assessment book -- Signed statement required --
31c Contents of signed statement H. -- Adjustment of assessment in assessment book .H .
31d H. (1) .H Prior to May 22 each year, the assessor shall complete and deliver the
31e assessment book to the county auditor.
31f H. (2) .H The assessor shall subscribe and sign a statement in the assessment book
31g substantially as follows:
31h I, ____, the assessor of ____ County, do swear that before May 22, _______(year), I made
31i diligent inquiry and examination, and either personally or by deputy, established the value of
31j all of the property within the county subject to assessment by me; that the property has been
31k assessed on the assessment book equally and uniformly according to the best of my
31l judgment, information, and belief at its fair market value; that I have faithfully complied with
31m all the duties imposed on the assessor under the revenue laws including the requirements of
31n Section 59-2-303.1; and that I have not imposed any unjust or double assessments through
31o malice or ill will or otherwise, or allowed anyone to escape a just and equal assessment
31p through favor or reward, or otherwise.
31q (3) Before completing and delivering the assessment book under Subsection (1),
31r the assessor shall adjust the assessment of property in the assessment book to
31s reflect an adjustment in the taxable value of any property if the adjustment in
31t taxable value is made:
31u (a) by the county board of equalization under Section 59-2-1004.5; and
31v (b) on or before May 15. .H
32 Section H. [ 1 ] 2 .H . Section 59-2-1004.5 is enacted to read:
33 59-2-1004.5. Tax adjustment for decrease in taxable value caused by a natural
34 disaster.
35 (1) For purposes of this section:
36 (a) "natural disaster" means:
37 (i) an explosion;
38 (ii) fire;
39 (iii) a flood;

40 (iv) a storm;
41 (v) a tornado;
42 (vi) winds;
43 (vii) an earthquake;
44 (viii) lightning;
45 (ix) any adverse weather event; or
46 (x) any event similar to an event described in this Subsection (1), as determined by the
47 commission by rule made in accordance with Title 63, Chapter 46a, Utah Administrative
48 Rulemaking Act; and
49 (b) "natural disaster damage" means any physical harm to property caused by a natural
50 disaster.
51 (2) Except as provided in Subsection (3), if, during a calendar year, property sustains a
52 decrease in taxable value that is caused by natural disaster damage, the owner of the property
53 may apply to the county board of equalization for an adjustment in the taxable value of the
54 owner's property as provided in Subsection (4).
55 (3) Notwithstanding Subsection (2), an owner may not receive the H. [ tax ] valuation .H
55a adjustment
56 described in this section if the decrease in taxable value described in Subsection (2) is:
57 (a) due to the intentional action or inaction of the owner; or
58 (b) less than H. [ 30% ] 40% .H of the taxable value of the property described in
58a Subsection (2)

59 before the decrease in taxable value described in Subsection (2).
60 (4) (a) To receive the H. [ tax ] valuation .H adjustment described in Subsection (2),
60a the owner of the
61 property shall file an application for the H. [ tax ] valuation .H adjustment with the county
61a board of equalization
62 on or before the later of:
63 (i) the deadline described in Subsection 59-2-1004 (2); or
64 (ii) 45 days after the day on which the natural disaster damage described in Subsection
65 (2) occurs.
66 (b) The county board of equalization shall hold a hearing:
67 (i) within 30 days of the day on which the application described in Subsection (4)(a) is
68 received by the board of equalization; and
69 (ii) following the procedures and requirements of Section 59-2-1001 .
70 (c) At the hearing described in Subsection (4)(b), the applicant shall have the burden of
71 proving, by a preponderance of the evidence:
72 (i) that the property sustained a decrease in taxable value, that:
73 (A) was caused by natural disaster damage; and
74 (B) is at least H. [ 30% ] 40% .H of the taxable value of the property described in this
74a Subsection
75 (4)(c)(i) before the decrease in taxable value described in this Subsection (4)(c)(i);
76 (ii) the amount of the decrease in taxable value described in Subsection (4)(c)(i); and
77 (iii) that the decrease in taxable value described in Subsection (4)(c)(i) is not due to the
78 action or inaction of the applicant.
79 (d) If the county board of equalization determines that the applicant has met the burden
80 of proof described in Subsection (4)(c), the county board of equalization shall reduce the
81 valuation of the property described in Subsection (4)(c)(i) by an amount equal to the decrease
82 in taxable value of the property multiplied by the percentage of the calendar year remaining
83 after the natural disaster damage occurred.
84 (e) The decision of the board of equalization shall be provided to the applicant, in
85 writing, within 30 days of the day on which the hearing described in Subsection (4)(b) is
86 concluded.
87 (5) An applicant that is dissatisfied with a decision of the board of equalization under
88 this section may appeal that decision under Section 59-2-1006 .
88a H. Section 3. Retrospection operation.

88b This bill provides retrospective operation to January 1, 2005. .H

Legislative Review Note
as of 2-8-05 1:52 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel