H.B. 259 Enrolled

1

PROPERTY TAX AMENDMENTS
2 2010 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Wayne A. Harper
5 Senate Sponsor: Wayne L. Niederhauser
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to property tax.
10 Highlighted Provisions:
11 This bill:
12 . moves the authority to fill a vacancy in the office of county assessor from the
13 county executive to the county legislative body;
14 . modifies the time at which certain qualifications for a county assessor in a county
15 of the first, second, or third class are determined;
16 . expands a requirement to conduct an annual update of property values using a mass
17 appraisal system so that the requirement applies to assessors in counties of the
18 third, fourth, fifth, and sixth class in addition to county assessors in first and
19 second class counties;
20 . modifies the distribution of certain funds from the multicounty assessing and
21 collecting levy;
22 . modifies a provision relating to a property tax notice that the county auditor is
23 required to provide;
24 . modifies the time within which a taxpayer may file an appeal relating to the value
25 of personal property;
26 . prohibits a person from claiming a homestead exemption for property acquired as a
27 result of criminal activity; and
28 . modifies provisions relating to the multicounty assessing and collecting levy.
29 Monies Appropriated in this Bill:

30 None
31 Other Special Clauses:
32 None
33 Utah Code Sections Affected:
34 AMENDS:
35 17-17-2, as last amended by Laws of Utah 2009, Chapter 271
36 59-2-303.1, as last amended by Laws of Utah 2008, Chapter 301
37 59-2-306, as last amended by Laws of Utah 2008, Chapter 61
38 59-2-919.1, as last amended by Laws of Utah 2009, Chapter 204
39 59-2-924, as last amended by Laws of Utah 2009, Chapters 152, 204, 356, and 388
40 59-2-1005, as last amended by Laws of Utah 2005, Chapters 217 and 244
41 59-2-1601, as enacted by Laws of Utah 2008, Chapter 330
42 59-2-1602, as last amended by Laws of Utah 2009, Chapters 204 and 271
43 59-2-1603, as last amended by Laws of Utah 2009, Chapter 271
44 59-2-1606, as enacted by Laws of Utah 2009, Chapter 271
45 78B-5-503, as renumbered and amended by Laws of Utah 2008, Chapter 3
46
47 Be it enacted by the Legislature of the state of Utah:
48 Section 1. Section 17-17-2 is amended to read:
49 17-17-2. Assessor to be state qualified -- Vacancy -- Filling vacancy.
50 (1) (a) Except as provided in Subsection (1)(b), in addition to the requirements of
51 Section 17-16-1 , any person elected to the office of county assessor after November 1, 1993,
52 shall be a state-licensed or state-certified appraiser as defined in Title 61, Chapter 2b, Real
53 Estate Appraiser Licensing and Certification Act, prior to the expiration of 36 months from the
54 day on which his term of office begins.
55 (b) Notwithstanding Subsection (1)(a), a county assessor of a county of the first
56 through third class shall be a state-licensed or state-certified appraiser as defined in Title 61,
57 Chapter 2b, Real Estate Appraiser Licensing and Certification Act, prior to [taking] filing for

58 office if the county assessor is:
59 (i) elected to the office of county assessor on or after January 1, 2010; or
60 (ii) selected to fill the vacancy of a county assessor as described in Subsection (2).
61 (2) (a) If an assessor fails to meet the requirement of this section, the assessor's office
62 is automatically vacant.
63 (b) (i) [In the event of] (A) If a vacancy occurs under this section, the county
64 [executive] legislative body shall fill the vacancy in the manner provided [for] in Sections
65 17-53-104 and 20A-1-508 . [However, a]
66 (B) A person selected to fill the vacancy [must] shall be a state-licensed or
67 state-certified appraiser [within six months after] before assuming the office of county
68 assessor.
69 (ii) If a state-licensed or state-certified appraiser cannot be found to fill a vacancy
70 which resulted from the requirements of this section, the county [executive] legislative body
71 may contract with a state-licensed or state-certified appraiser from outside the county to fill
72 the remainder of the term in the office of county assessor.
73 Section 2. Section 59-2-303.1 is amended to read:
74 59-2-303.1. Mandatory cyclical appraisals.
75 (1) For purposes of this section:
76 (a) "Corrective action" includes:
77 (i) factoring pursuant to Section 59-2-704 ;
78 (ii) notifying the state auditor that the county failed to comply with the requirements
79 of this section; or
80 (iii) filing a petition for a court order requiring a county to take action.
81 (b) "Mass appraisal system" means a computer assisted mass appraisal system that:
82 (i) a county assessor uses to value real property; and
83 (ii) includes at least the following system features:
84 (A) has the ability to update all parcels of real property located within the county each
85 year;

86 (B) can be programmed with specialized criteria;
87 (C) provides uniform and equal treatment of parcels within the same class of real
88 property throughout the county; and
89 (D) annually updates all parcels of residential real property within the county using
90 accepted valuation methodologies as determined by rule.
91 (c) "Property review date" means the date a county assessor completes a detailed
92 review of the property characteristics of a parcel of real property in accordance with
93 Subsection (3)(a).
94 (2) (a) The county assessor shall annually update property values of property as
95 provided in Section 59-2-301 based on a systematic review of current market data.
96 (b) The county assessor [of a county of the first or second class] shall conduct the
97 annual update described in Subsection (2)(a) by using a mass appraisal system on or before the
98 following:
99 (i) for a county of the first class, January 1, 2009; [and]
100 (ii) for a county of the second class, January 1, 2011[.];
101 (iii) for a county of the third class, January 1, 2014; and
102 (iv) for a county of the fourth, fifth, or sixth class, January 1, 2015.
103 (c) The county assessor and the commission shall jointly certify that the county's mass
104 appraisal system meets the requirements:
105 (i) described in Subsection (1)(b); and
106 (ii) of the commission.
107 (3) (a) In addition to the requirements in Subsection (2), the county assessor shall
108 complete a detailed review of property characteristics for each property at least once every five
109 years.
110 (b) The county assessor shall maintain on the county's computer system, a record of
111 the last property review date for each parcel of real property located within the county
112 assessor's county.
113 (4) (a) The commission shall take corrective action if the commission determines that:

114 (i) a county assessor has not satisfactorily followed the current mass appraisal
115 standards, as provided by law;
116 (ii) the sales-assessment ratio, coefficients of dispersion, or other statistical measures
117 of appraisal performance related to the studies required by Section 59-2-704 are not within the
118 standards provided by law; or
119 (iii) the county assessor has failed to comply with the requirements of this section.
120 (b) If a county assessor fails to comply with the requirements of this section for one
121 year, the commission shall assist the county assessor in fulfilling the requirements of
122 Subsections (2) and (3).
123 (c) If a county assessor fails to comply with the requirements of this section for two
124 consecutive years, the county will lose the county's allocation of the revenue generated
125 statewide from the imposition of the multicounty assessing and collecting levy authorized in
126 Sections 59-2-1602 and 59-2-1603 .
127 (d) If a county loses its allocation of the revenue generated statewide from the
128 imposition of the multicounty assessing and collecting levy described in Subsection (4)(c), the
129 revenue the county would have received shall[:] be distributed to the Multicounty Appraisal
130 Trust created by interlocal agreement by all counties in the state.
131 [(i) be retained in the Property Tax Valuation Agency Fund for that calendar year;
132 and]
133 [(ii) be distributed the following calendar year in accordance with Section 59-2-1603 .]
134 (5) (a) On or before July 1, 2008, the county assessor shall prepare a five-year plan to
135 comply with the requirements of Subsections (2) and (3).
136 (b) The plan shall be available in the county assessor's office for review by the public
137 upon request.
138 (c) The plan shall be annually reviewed and revised as necessary.
139 (6) (a) A county assessor shall create, maintain, and regularly update a database
140 containing the following information that the county assessor may use to enhance the county's
141 ability to accurately appraise and assess property on an annual basis:

142 (i) fee and other appraisals;
143 (ii) property characteristics and features;
144 (iii) property surveys;
145 (iv) sales data; and
146 (v) any other data or information on sales, studies, transfers, changes to property, or
147 property characteristics.
148 (b) A county assessor shall submit a report to the commission on or before September
149 1 stating the progress of the county assessor to meet the requirements of Subsection (6)(a).
150 (c) The commission shall report to the Revenue and Taxation Interim Committee on or
151 before the October interim meeting concerning the information received from the county
152 assessors pursuant to Subsection (6)(b).
153 Section 3. Section 59-2-306 is amended to read:
154 59-2-306. Statements by taxpayers -- Power of assessors respecting statements.
155 (1) (a) The county assessor may request a signed statement from any person setting
156 forth all the real and personal property assessable by the assessor which is owned, possessed,
157 managed, or under the control of the person at 12 noon on January 1.
158 (b) A request under Subsection (1)(a) shall include a notice of the procedure under
159 Section 59-2-1005 for appealing the value of the personal property.
160 (2) (a) Except as provided in Subsection (2)(b) or (c), a signed statement described in
161 Subsection (1) shall be filed on or before May 15 of the year the statement described in
162 Subsection (1) is requested by the county assessor.
163 (b) For a county of the first class, the signed statement described in Subsection (1)
164 shall be filed on the later of:
165 (i) 60 days after requested by the assessor; or
166 (ii) on or before May 15 of the year the statement described in Subsection (1) is
167 requested by the county assessor if, by resolution, the county legislative body of that county
168 adopts the deadline described in Subsection (2)(a).
169 (c) If a county assessor requests a signed statement described in Subsection (1) on or

170 after March 16, the person shall file the signed statement within 60 days after requested by the
171 assessor.
172 (3) The signed statement shall include the following:
173 (a) all property belonging to, claimed by, or in the possession, control, or management
174 of the person, any firm of which the person is a member, or any corporation of which the
175 person is president, secretary, cashier, or managing agent;
176 (b) the county in which the property is located or in which it is taxable; and, if taxable
177 in the county in which the signed statement was made, also the city, town, school district, road
178 district, or other taxing district in which it is located or taxable; and
179 (c) all lands in parcels or subdivisions not exceeding 640 acres each, the sections and
180 fractional sections of all tracts of land containing more than 640 acres which have been
181 sectionized by the United States Government, and the improvements on those lands.
182 (4) Every assessor may subpoena and examine any person in any county in relation to
183 any signed statement but may not require that person to appear in any county other than the
184 county in which the subpoena is served.
185 Section 4. Section 59-2-919.1 is amended to read:
186 59-2-919.1. Notice of property valuation and tax changes.
187 (1) In addition to the notice requirements of Section 59-2-919 , the county auditor, on
188 or before July 22 of each year, shall notify, by mail, each owner of real estate as defined in
189 Section 59-2-102 who is listed on the assessment roll.
190 (2) The notice described in Subsection (1) shall:
191 (a) be sent to all owners of real property by mail not less than 10 days before the day
192 on which:
193 (i) the county board of equalization meets; and
194 (ii) the taxing entity holds a public hearing on the proposed increase in the certified
195 tax rate;
196 (b) be printed on a form that is:
197 (i) approved by the commission; and

198 (ii) uniform in content in all counties in the state; and
199 (c) contain for each property:
200 (i) the assessor's determination of the value of the property;
201 (ii) the date the county board of equalization will meet to hear complaints on the
202 valuation;
203 (iii) itemized tax information for all applicable taxing entities[, including a separate
204 statement for the minimum school levy under Section 53A-17a-135 ]:
205 (A) stating:
206 [(A)] (I) (Aa) the dollar amount [the taxpayer would have paid based on last year's
207 rate] of the taxpayer's liability for the property in the prior year; and
208 [(B)] (Bb) the dollar amount of the taxpayer's liability under the current rate; and
209 (II) for a taxing entity that proposes a tax increase that is subject to the notice and
210 hearing requirements of Section 59-2-919 :
211 (Aa) the dollar amount of the taxpayer's liability if the proposed increase is approved;
212 (Bb) the difference between the dollar amount of the taxpayer's liability if the
213 proposed increase is approved and the dollar amount of the taxpayer's liability under the
214 current rate, placed in close proximity to the information under Subsection (2)(c)(v); and
215 (Cc) the percentage increase that the dollar amount of the taxpayer's liability under the
216 proposed tax rate represents as compared to the dollar amount of the taxpayer's liability under
217 the current tax rate; and
218 (iv) the tax impact on the property;
219 (v) the time and place of the required public hearing for each entity;
220 (vi) property tax information pertaining to:
221 (A) taxpayer relief;
222 (B) options for payment of taxes; and
223 (C) collection procedures;
224 (vii) information specifically authorized to be included on the notice under Title 59,
225 Chapter 2, Property Tax Act;

226 (viii) the last property review date of the property as described in Subsection
227 59-2-303.1 (1)(c); and
228 (ix) other property tax information approved by the commission.
229 Section 5. Section 59-2-924 is amended to read:
230 59-2-924. Report of valuation of property to county auditor and commission --
231 Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of
232 certified tax rate -- Rulemaking authority -- Adoption of tentative budget.
233 (1) Before June 1 of each year, the county assessor of each county shall deliver to the
234 county auditor and the commission the following statements:
235 (a) a statement containing the aggregate valuation of all taxable real property assessed
236 by a county assessor in accordance with Part 3, County Assessment, for each taxing entity;
237 and
238 (b) a statement containing the taxable value of all personal property assessed by a
239 county assessor in accordance with Part 3, County Assessment, from the prior year end values.
240 (2) The county auditor shall, on or before June 8, transmit to the governing body of
241 each taxing entity:
242 (a) the statements described in Subsections (1)(a) and (b);
243 (b) an estimate of the revenue from personal property;
244 (c) the certified tax rate; and
245 (d) all forms necessary to submit a tax levy request.
246 (3) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
247 property tax revenues for a taxing entity as were budgeted by that taxing entity for the prior
248 year.
249 (b) For purposes of this Subsection (3):
250 (i) "Ad valorem property tax revenues" do not include:
251 (A) interest;
252 (B) penalties; and
253 (C) revenue received by a taxing entity from personal property that is:

254 (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
255 (II) semiconductor manufacturing equipment.
256 (ii) "Aggregate taxable value of all property taxed" means:
257 (A) the aggregate taxable value of all real property assessed by a county assessor in
258 accordance with Part 3, County Assessment, for the current year;
259 (B) the aggregate taxable year end value of all personal property assessed by a county
260 assessor in accordance with Part 3, County Assessment, for the prior year; and
261 (C) the aggregate taxable value of all real and personal property assessed by the
262 commission in accordance with Part 2, Assessment of Property, for the current year.
263 (c) (i) Except as otherwise provided in this section, the certified tax rate shall be
264 calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
265 taxing entity by the amount calculated under Subsection (3)(c)(ii).
266 (ii) For purposes of Subsection (3)(c)(i), the legislative body of a taxing entity shall
267 calculate an amount as follows:
268 (A) calculate for the taxing entity the difference between:
269 (I) the aggregate taxable value of all property taxed; and
270 (II) any redevelopment adjustments for the current calendar year;
271 (B) after making the calculation required by Subsection (3)(c)(ii)(A), calculate an
272 amount determined by increasing or decreasing the amount calculated under Subsection
273 (3)(c)(ii)(A) by the average of the percentage net change in the value of taxable property for
274 the equalization period for the three calendar years immediately preceding the current calendar
275 year;
276 (C) after making the calculation required by Subsection (3)(c)(ii)(B), calculate the
277 product of:
278 (I) the amount calculated under Subsection (3)(c)(ii)(B); and
279 (II) the percentage of property taxes collected for the five calendar years immediately
280 preceding the current calendar year; and
281 (D) after making the calculation required by Subsection (3)(c)(ii)(C), calculate an

282 amount determined by subtracting from the amount calculated under Subsection (3)(c)(ii)(C)
283 any new growth as defined in this section:
284 (I) within the taxing entity; and
285 (II) for the following calendar year:
286 (Aa) for new growth from real property assessed by a county assessor in accordance
287 with Part 3, County Assessment and all property assessed by the commission in accordance
288 with Section 59-2-201 , the current calendar year; and
289 (Bb) for new growth from personal property assessed by a county assessor in
290 accordance with Part 3, County Assessment, the prior calendar year.
291 (iii) For purposes of Subsection (3)(c)(ii)(A), the aggregate taxable value of all
292 property taxed:
293 (A) except as provided in Subsection (3)(c)(iii)(B) or (3)(c)(ii)(C), is as defined in
294 Subsection (3)(b)(ii);
295 (B) does not include the total taxable value of personal property contained on the tax
296 rolls of the taxing entity that is:
297 (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
298 (II) semiconductor manufacturing equipment; and
299 (C) for personal property assessed by a county assessor in accordance with Part 3,
300 County Assessment, the taxable value of personal property is the year end value of the
301 personal property contained on the prior year's tax rolls of the entity.
302 (iv) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
303 January 1, 2007, the value of taxable property does not include the value of personal property
304 that is:
305 (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
306 County Assessment; and
307 (B) semiconductor manufacturing equipment.
308 (v) For purposes of Subsection (3)(c)(ii)(C)(II), for calendar years beginning on or
309 after January 1, 2007, the percentage of property taxes collected does not include property

310 taxes collected from personal property that is:
311 (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
312 County Assessment; and
313 (B) semiconductor manufacturing equipment.
314 (vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
315 January 1, 2009, the value of taxable property does not include the value of personal property
316 that is within the taxing entity assessed by a county assessor in accordance with Part 3, County
317 Assessment.
318 (vii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
319 the commission may prescribe rules for calculating redevelopment adjustments for a calendar
320 year.
321 (viii) (A) (I) For purposes of Subsection (3)(c)(i), for a calendar year beginning on or
322 after January 1, 2010, a taxing entity's ad valorem property tax revenues budgeted for the prior
323 year shall be decreased by an amount of revenue equal to the five-year average of the most
324 recent prior five years of redemptions as reported on the county treasurer's final annual
325 settlement required under Subsection 59-2-1365 (2).
326 (II) A decrease under Subsection (3)(c)(viii)(A)(I) does not apply to the multicounty
327 assessing and collecting levy authorized in Subsection 59-2-1602 (2)(a), the certified revenue
328 levy, or the minimum basic tax rate established in Section 53A-17a-135 .
329 (B) For the calendar year beginning on January 1, 2010 and ending on December 31,
330 2010, a taxing entity is exempt from the notice and public hearing provisions of Section
331 59-2-919 if the taxing entity budgets an increased amount of ad valorem property tax revenue
332 equal to or less than the taxing entity's five-year average of the most recent prior five years of
333 redemptions as reported on the county treasurer's final annual settlement required under
334 Subsection 59-2-1365 (2).
335 (d) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
336 the commission shall make rules determining the calculation of ad valorem property tax
337 revenues budgeted by a taxing entity.

338 (ii) For purposes of Subsection (3)(d)(i), ad valorem property tax revenues budgeted
339 by a taxing entity shall be calculated in the same manner as budgeted property tax revenues are
340 calculated for purposes of Section 59-2-913 .
341 (e) The certified tax rates for the taxing entities described in this Subsection (3)(e)
342 shall be calculated as follows:
343 (i) except as provided in Subsection (3)(e)(ii), for new taxing entities the certified tax
344 rate is zero;
345 (ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
346 (A) in a county of the first, second, or third class, the levy imposed for municipal-type
347 services under Sections 17-34-1 and 17-36-9 ; and
348 (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
349 purposes and such other levies imposed solely for the municipal-type services identified in
350 Section 17-34-1 and Subsection 17-36-3 (22); and
351 (iii) for debt service voted on by the public, the certified tax rate shall be the actual
352 levy imposed by that section, except that the certified tax rates for the following levies shall be
353 calculated in accordance with Section 59-2-913 and this section:
354 (A) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-127 ,
355 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , and 53A-17a-145 ; and
356 (B) levies to pay for the costs of state legislative mandates or judicial or administrative
357 orders under Section 59-2-1604 .
358 (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
359 established at that rate which is sufficient to generate only the revenue required to satisfy one
360 or more eligible judgments, as defined in Section 59-2-102 .
361 (ii) The ad valorem property tax revenue generated by the judgment levy shall not be
362 considered in establishing the taxing entity's aggregate certified tax rate.
363 (g) The ad valorem property tax revenue generated by the capital outlay levy described
364 in Section 53A-16-107 within a taxing entity in a county of the first class:
365 (i) may not be considered in establishing the school district's aggregate certified tax

366 rate; and
367 (ii) shall be included by the commission in establishing a certified tax rate for that
368 capital outlay levy determined in accordance with the calculation described in Subsection
369 59-2-913 (3).
370 (4) (a) For the purpose of calculating the certified tax rate, the county auditor shall
371 use:
372 (i) the taxable value of real property assessed by a county assessor contained on the
373 assessment roll;
374 (ii) the taxable value of real and personal property assessed by the commission; and
375 (iii) the taxable year end value of personal property assessed by a county assessor
376 contained on the prior year's assessment roll.
377 (b) For purposes of Subsection (4)(a)(i), the taxable value of real property on the
378 assessment roll does not include new growth as defined in Subsection (4)(c).
379 (c) "New growth" means:
380 (i) the difference between the increase in taxable value of the following property of the
381 taxing entity from the previous calendar year to the current year:
382 (A) real property assessed by a county assessor in accordance with Part 3, County
383 Assessment; and
384 (B) property assessed by the commission under Section 59-2-201 ; plus
385 (ii) the difference between the increase in taxable year end value of personal property
386 of the taxing entity from the year prior to the previous calendar year to the previous calendar
387 year; minus
388 (iii) the amount of an increase in taxable value described in Subsection (4)(e).
389 (d) For purposes of Subsection (4)(c)(ii), the taxable value of personal property of the
390 taxing entity does not include the taxable value of personal property that is:
391 (i) contained on the tax rolls of the taxing entity if that property is assessed by a
392 county assessor in accordance with Part 3, County Assessment; and
393 (ii) semiconductor manufacturing equipment.

394 (e) Subsection (4)(c)(iii) applies to the following increases in taxable value:
395 (i) the amount of increase to locally assessed real property taxable values resulting
396 from factoring, reappraisal, or any other adjustments; or
397 (ii) the amount of an increase in the taxable value of property assessed by the
398 commission under Section 59-2-201 resulting from a change in the method of apportioning the
399 taxable value prescribed by:
400 (A) the Legislature;
401 (B) a court;
402 (C) the commission in an administrative rule; or
403 (D) the commission in an administrative order.
404 (f) For purposes of Subsection (4)(a)(ii), the taxable year end value of personal
405 property on the prior year's assessment roll does not include:
406 (i) new growth as defined in Subsection (4)(c); or
407 (ii) the total taxable year end value of personal property contained on the prior year's
408 tax rolls of the taxing entity that is:
409 (A) assessed by a county assessor in accordance with Part 3, County Assessment; and
410 (B) semiconductor manufacturing equipment.
411 (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
412 (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
413 auditor of:
414 (i) its intent to exceed the certified tax rate; and
415 (ii) the amount by which it proposes to exceed the certified tax rate.
416 (c) The county auditor shall notify property owners of any intent to levy a tax rate that
417 exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1 .
418 Section 6. Section 59-2-1005 is amended to read:
419 59-2-1005. Procedures for appeal of personal property valuation -- Time for
420 appeal -- Hearing -- Decision -- Appeal to commission.
421 [(1) For personal property assessed by a county assessor in accordance with Section

422 59-2-301 , the county legislative body shall include with the signed statement required by
423 Section 59-2-306 a notice of procedures for an appeal relating to the value of the personal
424 property.]
425 [(2) (a) If personal property is subject to a fee in lieu of tax or the uniform tax under
426 Article XIII, Sec. 2, Utah Constitution, and the fee or tax is based upon the value of the
427 property, the basis of the value may be appealed to the commission.]
428 [(b) For the personal property described in Subsection (2)(a), a taxpayer]
429 (1)(a) A taxpayer owning personal property assessed by a county assessor under
430 Section 59-2-301 may make an appeal relating to the value of the personal property by filing
431 an application with the county legislative body no later than [30]:
432 (i) the expiration of the time allowed under Section 59-2-306 for filing a signed
433 statement, if the county assessor requests a signed statement under Section 59-2-306 ; or
434 (ii) 60 days after the mailing of the tax notice, for each other taxpayer.
435 [(3) (a) After giving reasonable notice, the]
436 (b) A county legislative body shall:
437 (i) after giving reasonable notice, hear an appeal filed [in accordance with] under
438 Subsection [(2)] (1)(a); and
439 (ii) render a written decision on the appeal within 60 days after receiving the appeal.
440 [(b) The written decision described in Subsection (3)(a) shall be rendered no later than
441 60 days after receipt of the appeal.]
442 [(4)] (c) If [any] the taxpayer is dissatisfied with a county legislative body decision
443 [rendered in accordance with] under Subsection [(3) by the county legislative body] (1)(b), the
444 taxpayer may file an appeal with the commission in accordance with Section 59-2-1006 .
445 [(5) For personal property assessed by the commission in accordance with Section
446 59-2-201 , a taxpayer may make an appeal relating to the personal property in accordance with
447 Section 59-2-1007 .]
448 (2) A taxpayer owning personal property subject to a fee in lieu of tax or a uniform tax
449 under Article XIII, Section 2 of the Utah Constitution that is based on the value of the property

450 may appeal the basis of the value by filing an appeal with the commission within 30 days after
451 the mailing of the tax notice.
452 Section 7. Section 59-2-1601 is amended to read:
453 59-2-1601. Definitions.
454 As used in this part:
455 (1) "Contributing county" means a county that:
456 (a) retains less revenue from the imposition of the multicounty assessing and
457 collecting levy within the county pursuant to Section 59-2-1603 than it collects; and
458 (b) transmits a portion of the revenue collected from the imposition of the multicounty
459 assessing and collecting levy to the Property Tax Valuation Agency Fund pursuant to Section
460 59-2-1603 .
461 (2) "Contributing county surplus revenue" means an amount equal to the difference
462 between the following:
463 (a) the revenue collected by a county from imposing the multicounty assessing and
464 collecting levy during a calendar year; and
465 (b) the county's multicounty assessing and collecting allocation as calculated in
466 accordance with Subsection 59-2-1603 (3).
467 (3) "County additional property tax" means the property tax levy described in
468 Subsection 59-2-1602 (4).
469 (4) "Fund" means the Property Tax Valuation Agency Fund created in Section
470 59-2-1602 .
471 (5) "Maximum county contribution" means an amount equal to the following:
472 (a) for a county of the first class, [$500,000] $300,000;
473 (b) for a county of the second class, [$250,000] $100,000;
474 (c) for a county of the third class, [$250,000; and] $100,000;
475 (d) for a county of the fourth class, [$100,000.] $50,000; and
476 (e) for a county of the fifth or sixth class, $0.
477 (6) "Minimum county contribution" means an amount equal to the following:

478 (a) for a county of the first class, [$250,000] $300,000; and
479 (b) for a county of the second or third class, [$100,000] $0.
480 (7) "Multicounty assessing and collecting allocation" means the revenue to which a
481 county is entitled [to retain] from the statewide imposition of the multicounty assessing and
482 collecting levy, as determined in accordance with the calculation described in Subsection
483 59-2-1603 (3).
484 (8) "Multicounty assessing and collecting levy" means a property tax rate not to
485 exceed .0002 per dollar of taxable value levied in accordance with Section 59-2-1602 .
486 (9) (a) "Parcel" means an identifiable contiguous unit of real property that is treated as
487 separate for valuation or zoning purposes and includes any improvements on that unit of real
488 property.
489 (b) "Parcel" or "other parcel" does not include an item of personal property.
490 (10) "Receiving county" means a county that:
491 (a) receives a disbursement from the Property Tax Valuation Agency Fund in
492 accordance with Section 59-2-1603 ; and
493 (b) levies a county additional property tax of at least .0003 per dollar of taxable value
494 in accordance with Subsection 59-2-1602 (4).
495 Section 8. Section 59-2-1602 is amended to read:
496 59-2-1602. Property Tax Valuation Agency Fund -- Creation -- Statewide levy --
497 Additional county levy permitted.
498 (1) (a) There is created the Property Tax Valuation Agency Fund, to be funded by the
499 revenue collected from the multicounty assessing and collecting levy as provided in
500 Subsection (3)(c) and Section 59-2-1603 .
501 (b) The purpose of the multicounty assessing and collecting levy required under
502 Subsection (2) and the disbursement formulas established in Section 59-2-1603 is to promote
503 the:
504 (i) accurate valuation of property;
505 (ii) establishment and maintenance of uniform assessment levels within and among

506 counties; and
507 (iii) efficient administration of the property tax system, including the costs of
508 assessment, collection, and distribution of property taxes.
509 (c) Income derived from the investment of money in the fund created in this
510 Subsection (1) shall be deposited in and become part of the fund.
511 (2) (a) Annually, each county shall impose a multicounty assessing and collecting levy
512 not to exceed .0002 per dollar of taxable value as authorized by the Legislature as provided in
513 Subsection (2)(b).
514 (b) Subject to Subsections (2)(c), (2)(d), and (5), in order to fund the Property Tax
515 Valuation Agency Fund, the Legislature shall authorize the amount of the multicounty
516 assessing and collecting levy.
517 (c) Except as provided in Subsection (2)(d)(i)[(B)], the multicounty assessing and
518 collecting levy may not exceed the certified revenue levy as defined in Section 59-2-102 ,
519 unless:
520 (i) the Legislature authorizes a multicounty assessing and collecting levy that exceeds
521 the certified revenue levy; and
522 (ii) the state complies with the notice requirements of Section 59-2-926 .
523 (d) (i) For a calendar year beginning on or after January 1, [2009, the Legislature:]
524 2010, the multicounty assessing and collecting levy for a county of the first class is adjusted to
525 be the same rate as for a county of the second, third, fourth, fifth, or sixth class.
526 [(A) shall add an additional .000010 per dollar of taxable value to the amount it
527 authorizes for the multicounty assessing and collecting levy:]
528 [(I) described in Subsection (2)(b); and]
529 [(II) imposed in a county of the second through sixth class; and]
530 [(B) is exempt from the]
531 (ii) The notice requirements of Section 59-2-926 [for the revenue generated within a
532 county of the second through sixth class by the .000010 per dollar of taxable value described
533 in Subsection (2)(d)(i)(A)] do not apply to the rate adjustment under Subsection (2)(d)(i).

534 [(ii) The revenue generated by the additional .000010 per dollar of taxable value of the
535 multicounty assessing and collecting levy imposed within a county of the second through sixth
536 class shall be distributed to the counties as described in Section 59-2-1606 .]
537 (3) (a) The multicounty assessing and collecting levy authorized by the Legislature
538 under Subsection (2) shall be separately stated on the tax notice as a multicounty assessing and
539 collecting levy.
540 (b) The multicounty assessing and collecting levy authorized by the Legislature under
541 Subsection (2) is:
542 (i) exempt from the provisions of Sections 17C-1-403 and 17C-1-404 ;
543 (ii) in addition to and exempt from the maximum levies allowable under Section
544 59-2-908 ; and
545 (iii) exempt from the notice requirements of Section 59-2-919 .
546 (c) (i) Each contributing county shall transmit quarterly to the state treasurer the
547 portion of the multicounty assessing and collecting levy which is above the amount to which
548 that county is entitled to under Section 59-2-1603 .
549 (ii) The revenue transmitted under Subsection (3)(c)(i) shall be transmitted no later
550 than the tenth day of the month following the end of the quarter in which the revenue is
551 collected.
552 (iii) If revenue transmitted under Subsection (3)(c)(i) is transmitted after the tenth day
553 of the month following the end of the quarter in which the revenue is collected, the county
554 shall pay an interest penalty at the rate of 10% each year until the revenue is transmitted.
555 (iv) Each contributing county that transmits to the state treasurer a portion of the
556 multicounty assessing and collecting levy in accordance with Subsection (3)(c)(i) shall levy
557 sufficient property taxes to fund its county assessing and collecting budgets.
558 (d) The state treasurer shall deposit in the fund the:
559 (i) revenue transmitted to the fund by contributing counties;
560 (ii) interest accrued from that levy; and
561 (iii) penalties received under Subsection (3)(c)(iii).

562 (4) (a) A county may levy a county additional property tax in accordance with this
563 Subsection (4).
564 (b) A receiving county may not receive funds from the Property Tax Valuation Agency
565 Fund unless the receiving county levies a county additional property tax of at least .0003 per
566 dollar of taxable value of taxable property as reported by each county.
567 (c) The county additional property tax described in Subsection (4)(a) shall be levied by
568 the county and stated on the tax notice as a county assessing and collecting levy.
569 (d) The purpose of the county additional property tax established in this Subsection
570 (4) is to promote the:
571 (i) accurate valuation of property;
572 (ii) establishment and maintenance of uniform assessment levels within and among
573 counties; and
574 (iii) efficient administration of the property tax system, including the costs of
575 assessment, collection, and distribution of property taxes.
576 (e) A county additional property tax levy established in Subsection (4)(a) is:
577 (i) exempt from the provisions of Sections 17C-1-403 and 17C-1-404 ;
578 (ii) in addition to and exempt from the maximum levies allowable under Section
579 59-2-908 ; and
580 (iii) beginning on January 1, 2009:
581 (A) for a county that was designated as a receiving county by the state auditor during
582 the prior calendar year, subject to the notice and public hearing provisions of Section 59-2-919
583 only if the county additional property tax levied by that county levy is raised to a rate in excess
584 of .0003; and
585 (B) except as provided in Subsection (4)(f), for a county that was designated as a
586 contributing county by the state auditor during the prior calendar year, subject to the notice
587 and public hearing provisions of Section 59-2-919 .
588 (f) A county additional property tax levy in a county that was not a receiving county
589 during the prior year shall be subject to the notice and public hearing provisions described in

590 Subsection (4)(e)(iii)(A) if the county would have been designated as a receiving county
591 during the prior calendar year if the county had levied a county additional property tax of at
592 least .0003 per dollar of taxable value.
593 [(g) For the calendar year that begins on January 1, 2009, a contributing county of the
594 second or third class shall reduce its county additional property tax rate by .000005 per dollar
595 of taxable value.]
596 (5) Subject to Subsection (6), for calendar years beginning on or after January 1, 2007,
597 the amount of the multicounty assessing and collecting levy described in this section shall be
598 reduced by an amount equal to the difference between:
599 (a) the amount of revenue budgeted:
600 (i) by each receiving county for that calendar year; and
601 (ii) for the county additional property tax levy described in Subsection (4)(a); and
602 (b) the amount of revenue budgeted:
603 (i) by each receiving county for the calendar year immediately preceding the calendar
604 year described in Subsection (5)(a)(i); and
605 (ii) for the county additional property tax levy described in Subsection (4)(a).
606 (6) The amounts described in the calculations required by Subsection (5) are exclusive
607 of new growth.
608 Section 9. Section 59-2-1603 is amended to read:
609 59-2-1603. Disbursement of monies in the Property Tax Valuation Agency Fund
610 -- Use of funds.
611 (1) The state auditor shall authorize disbursement of money from the Property Tax
612 Valuation Agency Fund to each receiving county in accordance with this section.
613 (2) Except as provided in Section 59-2-1606 and Subsection 59-2-303.1 (4), money
614 derived from funds transmitted by contributing counties shall be disbursed pro rata to
615 receiving counties of the second through sixth class based upon the number of adjusted parcel
616 units in each county as determined in Subsection (3).
617 (3) (a) The state auditor shall determine the amount of each county's multicounty

618 assessing and collecting allocation in accordance with this Subsection (3).
619 [(b) For a county of the first class, the county's multicounty assessing and collecting
620 allocation shall be 94.5% of the revenue it collects from imposing the multicounty assessing
621 and collecting levy.]
622 [(c)] (b) A [For counties of the second through sixth class, a] county's multicounty
623 assessing and collecting allocation shall be the product of:
624 (i) the county's adjusted parcel ratio; and
625 [(ii) the amount of all revenue generated statewide by the imposition of the
626 multicounty assessing and collecting levy.]
627 (ii) a base unit value of $9.
628 [(d)] (c) For purposes of this section, a county's adjusted parcel ratio shall be
629 determined by multiplying the sum of the following by the county parcel factor:
630 (i) the number of residential parcels multiplied by 2;
631 (ii) the number of commercial parcels multiplied by 4; and
632 (iii) the number of all other parcels multiplied by 1.
633 [(e)] (d) For purposes of this Subsection (3), the county class factor is:
634 (i) 0.8 for a county of the first class;
635 [(i)] (ii) 0.9 for [counties] a county of the second class;
636 [(ii)] (iii) 1.0 for [counties] a county of the third class;
637 [(iii)] (iv) 1.05 for [counties] a county of the fourth class;
638 [(iv)] (v) 1.15 for [counties] a county of the fifth class; and
639 [(v)] (vi) 1.3 for [counties] a county of the sixth class.
640 [(f)] (e) The commission shall provide the state auditor a list of each county's parcel
641 counts described in Subsection (3)[(d)](c).
642 (4) (a) A first class county shall transmit $300,000 to the fund [an amount equal to the
643 greater of the following:].
644 [(i) $250,000; or]
645 [(ii) the lesser of the following:]

646 [(A) 5.5% of the revenue it collects from imposing the multicounty assessing and
647 collecting levy during a calendar year; or]
648 [(B) $500,000.]
649 (b) A second, third, or fourth class contributing county shall transmit to the fund an
650 amount equal to the following:
651 (i) if the contributing county's surplus revenue is equal to or less than the contributing
652 county's minimum county contribution, the minimum county contribution;
653 (ii) if the contributing county's surplus revenue is more than the county's minimum
654 county contribution and less than the county's maximum county contribution, the contributing
655 county's surplus revenue; or
656 (iii) if the contributing county's surplus revenue is equal to or greater than the county's
657 maximum county contribution, the contributing county's maximum county contribution.
658 (5) Money in the Property Tax Valuation Agency Fund on the 10th day of the month
659 following the end of the quarter in which the revenue is collected shall, upon authorization by
660 the state auditor, be transmitted by the state treasurer according to the disbursement formula
661 determined under Subsection (3) no later than five working days after the 10th day of the
662 month following the end of the quarter in which the revenue is collected.
663 (6) If money in the Property Tax Valuation Agency Fund on the 10th day of the month
664 following the end of the quarter in which the revenue is collected is not transmitted to a
665 receiving county within five working days of the 10th day of that month, except as provided
666 for in Subsection (5), income from the investment of that money shall be:
667 (a) deposited in and become part of the Property Tax Valuation Agency Fund; and
668 (b) disbursed to the receiving county in the next quarter.
669 (7) A county shall use money disbursed from the Property Tax Valuation Agency Fund
670 for:
671 (a) establishing and maintaining accurate property valuations and uniform assessment
672 levels as required by Section 59-2-103 ; and
673 (b) improving the efficiency of the property tax system.

674 [(8) If collections from the statewide imposition of the multicounty assessing and
675 collecting levy are less than the amount of revenue the levy was expected to generate in a
676 calendar year, the state auditor shall pro rata:]
677 [(a) decrease each receiving county's multicounty assessing and collecting allocation;
678 and]
679 [(b) for each contributing county that did not transmit its maximum county
680 contribution to the fund during the same calendar year, increase the contributing county's
681 contribution to the fund.]
682 (8) The state auditor shall reallocate any surplus or deficit from the allocation under
683 Subsection (3) between all receiving counties based on their adjusted parcel counts.
684 (9) A receiving county may not receive more than $200,000 total from an allocation
685 under Subsection (3).
686 [(9)] (10) If money remains in the fund after all allocations have been distributed to
687 receiving counties in a calendar year, the state auditor shall retain the money in the fund for
688 distribution the following calendar year.
689 Section 10. Section 59-2-1606 is amended to read:
690 59-2-1606. CAMA system funding for counties -- Disbursements to the
691 Multicounty Appraisal Trust -- Use of funds.
692 (1) As used in this section:
693 (a) "CAMA" means computer assisted mass appraisal.
694 (b) "CAMA fee rate" means:
695 (i) $1.50 for the calendar year that begins on January 1, 2009; and
696 (ii) for a calendar year beginning on or after January 1, 2010, the $1.50 described in
697 Subsection (1)(b)(i) may be increased each year up to 2% at the discretion of the Multicounty
698 Appraisal Trust.
699 (c) (i) "County parcel count" means the total number of residential parcels,
700 commercial parcels, and other parcels within a county.
701 (ii) "County parcel count" does not include a county's parcel factor as described in

702 Subsection 59-2-1603 (3)[(d)](c).
703 (d) "Factored parcel count" means the product of:
704 (i) a county's parcel count; and
705 (ii) the county's class factor described in Subsection 59-2-1603 (3)[(e)](d).
706 (e) "Multicounty Appraisal Trust" means the Multicounty Appraisal Trust created by
707 interlocal agreement by all 29 counties in the state.
708 (2) For a calendar year beginning on or after January 1, 2009, before determining the
709 amount of each county's multicounty assessing and collecting allocation in accordance with
710 Subsection 59-2-1603 (3), the state auditor shall disburse to the Multicounty Appraisal Trust
711 an amount of revenue equal to the product of:
712 (a) the sum of the factored parcel counts for all second through sixth class counties;
713 and
714 (b) the CAMA fee rate.
715 (3) (a) The funds described in Subsection (2) shall be used to provide funding for a
716 statewide CAMA system that will promote:
717 (i) the accurate valuation of property;
718 (ii) the establishment and maintenance of uniform assessment levels among counties
719 within the state; and
720 (iii) efficient administration of the property tax system, including the costs of
721 assessment, collection, and distribution of property taxes.
722 (b) The Multicounty Appraisal Trust shall determine which projects shall be funded
723 and oversee the administration of a statewide CAMA system.
724 Section 11. Section 78B-5-503 is amended to read:
725 78B-5-503. Homestead exemption -- Definitions -- Excepted obligations -- Water
726 rights and interests -- Conveyance -- Sale and disposition -- Property right for federal
727 tax purposes.
728 (1) For purposes of this section:
729 (a) "Household" means a group of persons related by blood or marriage living together

730 in the same dwelling as an economic unit, sharing furnishings, facilities, accommodations, and
731 expenses.
732 (b) "Mobile home" is as defined in Section 57-16-3 .
733 (c) "Primary personal residence" means a dwelling or mobile home, and the land
734 surrounding it, not exceeding one acre, as is reasonably necessary for the use of the dwelling
735 or mobile home, in which the individual and the individual's household reside.
736 (d) "Property" means:
737 (i) a primary personal residence;
738 (ii) real property; or
739 (iii) an equitable interest in real property awarded to a person in a divorce decree by a
740 court.
741 (2) (a) An individual is entitled to a homestead exemption consisting of property in
742 this state in an amount not exceeding:
743 (i) $5,000 in value if the property consists in whole or in part of property which is not
744 the primary personal residence of the individual; or
745 (ii) $20,000 in value if the property claimed is the primary personal residence of the
746 individual.
747 (b) If the property claimed as exempt is jointly owned, each joint owner is entitled to a
748 homestead exemption; however
749 (i) for property exempt under Subsection (2)(a)(i), the maximum exemption may not
750 exceed $10,000 per household; or
751 (ii) for property exempt under Subsection (2)(a)(ii), the maximum exemption may not
752 exceed $40,000 per household.
753 (c) A person may claim a homestead exemption in either or both of the following:
754 (i) one or more parcels of real property together with appurtenances and
755 improvements; or
756 (ii) a mobile home in which the claimant resides.
757 (d) A person may not claim a homestead exemption for property that the person

758 acquired as a result of criminal activity.
759 (3) A homestead is exempt from judicial lien and from levy, execution, or forced sale
760 except for:
761 (a) statutory liens for property taxes and assessments on the property;
762 (b) security interests in the property and judicial liens for debts created for the
763 purchase price of the property;
764 (c) judicial liens obtained on debts created by failure to provide support or
765 maintenance for dependent children; and
766 (d) consensual liens obtained on debts created by mutual contract.
767 (4) (a) Except as provided in Subsection (4)(b), water rights and interests, either in the
768 form of corporate stock or otherwise, owned by the homestead claimant are exempt from
769 execution to the extent that those rights and interests are necessarily employed in supplying
770 water to the homestead for domestic and irrigating purposes.
771 (b) Those water rights and interests are not exempt from calls or assessments and sale
772 by the corporations issuing the stock.
773 (5) (a) When a homestead is conveyed by the owner of the property, the conveyance
774 may not subject the property to any lien to which it would not be subject in the hands of the
775 owner.
776 (b) The proceeds of any sale, to the amount of the exemption existing at the time of
777 sale, is exempt from levy, execution, or other process for one year after the receipt of the
778 proceeds by the person entitled to the exemption.
779 (6) The sale and disposition of one homestead does not prevent the selection or
780 purchase of another.
781 (7) For purposes of any claim or action for taxes brought by the United States Internal
782 Revenue Service, a homestead exemption claimed on real property in this state is considered
783 to be a property right.