H.J.R. 6

1

RESOLUTION LIMITING PROPERTY TAX ON
2 PRIMARY RESIDENCE
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: David L. Hogue
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This joint resolution of the Legislature proposes to amend the Utah Constitution to
11 enact a provision relating to property tax on primary residences.
12 Highlighted Provisions:
13 This resolution proposes to amend the Utah Constitution to:
14 . provide that a retired, elderly person on a moderate or lower, fixed income may not
15 be required to pay more property tax on the person's primary residence than was
16 assessed against that person's same primary residence in the previous year; and
17 . require the Legislature to define and implement that provision.
18 Special Clauses:
19 This resolution directs the lieutenant governor to submit this proposal to voters.
20 This resolution provides a contingent effective date of January 1, 2007 for this proposal.
21 Utah Constitution Sections Affected:
22 AMENDS:
23 ARTICLE XIII, SECTION 2
24
25 Be it resolved by the Legislature of the state of Utah, two-thirds of all members elected to each
26 of the two houses voting in favor thereof:
27 Section 1. It is proposed to amend Utah Constitution Article XIII, Section 2, to read:

28 Article XIII, Section 2. [Property tax.]
29 (1) So that each person and corporation pays a tax in proportion to the fair market
30 value of his, her, or its tangible property, all tangible property in the State that is not exempt
31 under the laws of the United States or under this Constitution shall be:
32 (a) assessed at a uniform and equal rate in proportion to its fair market value, to be
33 ascertained as provided by law; and
34 (b) taxed at a uniform and equal rate.
35 (2) Each corporation and person in the State or doing business in the State is subject to
36 taxation on the tangible property owned or used by the corporation or person within the
37 boundaries of the State or local authority levying the tax.
38 (3) The Legislature may provide by statute that land used for agricultural purposes be
39 assessed based on its value for agricultural use.
40 (4) The Legislature may by statute determine the manner and extent of taxing livestock.
41 (5) The Legislature may by statute determine the manner and extent of taxing or
42 exempting intangible property, except that any property tax on intangible property may not
43 exceed .005 of its fair market value. If any intangible property is taxed under the property tax,
44 the income from that property may not also be taxed.
45 (6) Tangible personal property required by law to be registered with the State before it
46 is used on a public highway or waterway, on public land, or in the air may be exempted from
47 property tax by statute. If the Legislature exempts tangible personal property from property tax
48 under this Subsection (6), it shall provide for the payment of uniform statewide fees or uniform
49 statewide rates of assessment or taxation on that property in lieu of the property tax. The fair
50 market value of any property exempted under this Subsection (6) shall be considered part of the
51 State tax base for determining the debt limitation under Article XIV.
52 (7) (a) Notwithstanding Subsection (1), a retired, elderly person on a moderate or
53 lower, fixed income may not be required to pay more property tax on the person's primary
54 residence in any tax year than was assessed against that person's same primary residence the
55 previous tax year.
56 (b) The Legislature shall by statute define and implement the provisions of Subsection
57 (7)(a).
58 Section 2. Submittal to voters.

59 The lieutenant governor is directed to submit this proposed amendment to the voters of
60 the state at the next regular general election in the manner provided by law.
61 Section 3. Effective date.
62 If the amendment proposed by this joint resolution is approved by a majority of those
63 voting on it at the next regular general election, the amendment shall take effect on January 1,
64 2007.




Legislative Review Note
as of 12-5-05 9:58 AM

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