S.B. 53 Enrolled

LAND VALUE PROPERTY TAX STUDY
2005 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Howard A. Stephenson
House Sponsor: Wayne A. Harper

LONG TITLE
General Description:
This bill directs the Utah Tax Review Commission to conduct a study relating to land
value property tax systems during the 2005 interim.
Highlighted Provisions:
This bill:
. defines terms;
. directs the Utah Tax Review Commission to, during the 2005 interim, conduct a
study of the desirability and feasibility of implementing a land value property tax
system to be operated concurrent with the state's existing property tax system;
. describes the scope of the study described in the previous paragraph;
. describes the responsibilities of the Utah Tax Review Commission in relation to the
study;
. provides for the creation of a subcommittee to assist in the study; and
. requires the Utah Tax Review Commission to make a final report on the study to the
Revenue and Taxation Interim Committee before November 30, 2005.
Monies Appropriated in this Bill:
There is appropriated from the General Fund for fiscal year 2004-05 only:
. $3,000 to the Senate to pay for the compensation and expenses of senators on a
subcommittee appointed by the commission; and
. $5,000 to the House of Representatives to pay for the compensation and expenses of
representatives on a subcommittee appointed by the commission.
Other Special Clauses:

This bill is repealed on November 30, 2005.
Uncodified Material Affected:
ENACTS UNCODIFIED MATERIAL

Be it enacted by the Legislature of the state of Utah:
Section 1. Study by Utah Tax Review Commission _ Duties _ Creation of
subcommittees.
(1) As used in this bill:
(a) "commission" means the Utah Tax Review Commission created in Section 59-1-901 ;
and
(b) "land value property tax system" means a property tax system where a tax levy is
imposed on the value of land and not improvements to the land.
(2) During the 2005 interim, the commission shall study the desirability and feasibility of
implementing a land value property tax system to be operated concurrent with the state's existing
property tax system.
(3) In conducting the study described in Subsection (2), the commission:
(a) shall study the following subjects relating to a land value property tax system:
(i) the experience of other states that administer land value property tax systems;
(ii) the desirability and feasibility of using revenues from a land value property tax
system to fund highway construction;
(iii) the burden imposed on taxpayers, including the compliance burden;
(iv) the administrative issues for:
(A) county officials; and
(B) the Utah State Tax Commission;
(v) how a land value property tax system will:
(A) affect the existing property tax system;
(B) be operated and administered by county officials with assistance from the Utah State
Tax Commission; and

(C) effect investment spending, including investment spending to improve unimproved
land;
(vi) any proposed amendments to the Utah Constitution that may be necessary to
implement a land value property tax system; and
(vii) any other issue that the commission considers appropriate;
(b) shall estimate the total taxable value under a land value property tax system for:
(i) the state; and
(ii) each political subdivision of the state;
(c) shall include a demonstration of the impact of a land value property tax system on:
(i) revenue; and
(ii) administration;
(d) may receive assistance from a person or organization with expertise in land value
property tax theory and systems; and
(e) subject to Subsection (4), may establish a subcommittee to assist the commission in
completing the study described in Subsection (2).
(4) For the subcommittee described in Subsection (3)(e), the commission shall:
(a) prescribe the subcommittee's duties; and
(b) appoint the members of the subcommittee, which may include one or more:
(i) members of the commission;
(ii) members of the Legislature;
(iii) members of the Utah State Tax Commission;
(iv) employees of the Utah State Tax Commission;
(v) taxpayers;
(vi) tax practitioners;
(vii) members of the public who have an interest or expertise in property tax;
(viii) representatives of political subdivisions that impose a property tax; and
(ix) county officials involved with the administration of the property tax system.
(5) The commission shall make a final report on the study described in Subsection (2),

including any proposed legislation, to the Revenue and Taxation Interim Committee before
November 30, 2005.
Section 2. Appropriation.
There is appropriated from the General Fund for fiscal year 2004-05 only:
(1) $3,000 to the Senate to pay for the compensation and expenses of senators on a
subcommittee appointed by the commission; and
(2) $5,000 to the House of Representatives to pay for the compensation and expenses of
representatives on a subcommittee appointed by the commission.
Section 3. Repeal date.
This bill is repealed on November 30, 2005.