H.J.R. 1 Enrolled

1

RESOLUTION REGARDING PROPERTY TAX
2 ON PERSONAL PROPERTY
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: John Dougall
6 Senate Sponsor: John W. Hickman
7
8 LONG TITLE
9 General Description:
10 This joint resolution of the Legislature proposes to amend the Utah Constitution to
11 revise provisions relating to the taxation of personal property.
12 Highlighted Provisions:
13 This resolution proposes to amend the Utah Constitution to:
14 . authorize the Legislature to provide a property tax exemption for tangible personal
15 property that would generate an inconsequential amount of revenue.
16 Special Clauses:
17 This resolution directs the lieutenant governor to submit this proposal to voters.
18 This resolution provides a contingent effective date of January 1, 2007 for this proposal.
19 Utah Constitution Sections Affected:
20 AMENDS:
21 ARTICLE XIII, SECTION 3
22
23 Be it resolved by the Legislature of the state of Utah, two-thirds of all members elected to each
24 of the two houses voting in favor thereof:
25 Section 1. It is proposed to amend Utah Constitution Article XIII, Section 3, to read:
26 Article XIII, Section 3. [Property tax exemptions.]
27 (1) The following are exempt from property tax:
28 (a) property owned by the State;
29 (b) property owned by a public library;

30 (c) property owned by a school district;
31 (d) property owned by a political subdivision of the State, other than a school district,
32 and located within the political subdivision;
33 (e) property owned by a political subdivision of the State, other than a school district,
34 and located outside the political subdivision unless the Legislature by statute authorizes the
35 property tax on that property;
36 (f) property owned by a nonprofit entity used exclusively for religious, charitable, or
37 educational purposes;
38 (g) places of burial not held or used for private or corporate benefit;
39 (h) farm equipment and farm machinery as defined by statute; and
40 (i) water rights, reservoirs, pumping plants, ditches, canals, pipes, flumes, power
41 plants, and transmission lines to the extent owned and used by an individual or corporation to
42 irrigate land that is:
43 (i) within the State; and
44 (ii) owned by the individual or corporation, or by an individual member of the
45 corporation.
46 (2) (a) The Legislature may by statute exempt the following from property tax:
47 (i) tangible personal property constituting inventory present in the State on January 1
48 and held for sale in the ordinary course of business;
49 (ii) tangible personal property present in the State on January 1 and held for sale or
50 processing and shipped to a final destination outside the State within 12 months;
51 (iii) subject to Subsection (2)(b), property to the extent used to generate and deliver
52 electrical power for pumping water to irrigate lands in the State;
53 (iv) up to 45% of the fair market value of residential property, as defined by statute;
54 [and]
55 (v) household furnishings, furniture, and equipment used exclusively by the owner of
56 that property in maintaining the owner's home[.]; and
57 (vi) tangible personal property that, if subject to property tax, would generate an

58 inconsequential amount of revenue.
59 (b) The exemption under Subsection (2)(a)(iii) shall accrue to the benefit of the users
60 of pumped water as provided by statute.
61 (3) The following may be exempted from property tax as provided by statute:
62 (a) property owned by a disabled person who, during military training or a military
63 conflict, was disabled in the line of duty in the military service of the United States or the State;
64 and
65 (b) property owned by the unmarried surviving spouse or the minor orphan of a person
66 who:
67 (i) is described in Subsection (3)(a); or
68 (ii) during military training or a military conflict, was killed in action or died in the line
69 of duty in the military service of the United States or the State.
70 (4) The Legislature may by statute provide for the remission or abatement of the taxes
71 of the poor.
72 Section 2. Submittal to voters.
73 The lieutenant governor is directed to submit this proposed amendment to the voters of
74 the state at the next regular general election in the manner provided by law.
75 Section 3. Effective date.
76 If the amendment proposed by this joint resolution is approved by a majority of those
77 voting on it at the next regular general election, the amendment shall take effect on January 1,
78 2007.