H.J.R. 2 Enrolled

1

JOINT RESOLUTION ON PROPERTY TAX
2 EXEMPTION FOR WATER FACILITIES
3 2010 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Patrick Painter
6 Senate Sponsor: Howard A. Stephenson
7
8 LONG TITLE
9 General Description:
10 This joint resolution of the Legislature proposes to amend the Utah Constitution to
11 enact a property tax exemption related to certain property associated with water.
12 Highlighted Provisions:
13 This resolution proposes to amend the Utah Constitution to:
14 . enact a property tax exemption for:
15 . certain property owned by a nonprofit entity and used within the State to
16 irrigate land, provide domestic water, or provide water to a public water
17 supplier;
18 . land occupied by certain exempt facilities if the land is owned by the nonprofit
19 entity that owns the facilities; and
20 . land adjacent to those facilities if the land is owned by the nonprofit entity that
21 owns the facilities and is reasonably necessary for the maintenance or for
22 otherwise supporting the operation of the facilities.
23 Special Clauses:
24 This resolution directs the lieutenant governor to submit this proposal to voters.
25 This resolution provides a contingent effective date of January 1, 2011 for this
26 proposal.
27 Utah Constitution Sections Affected:
28 AMENDS:
29 ARTICLE XIII, SECTION 3

30
31 Be it resolved by the Legislature of the state of Utah, two-thirds of all members elected to
32 each of the two houses voting in favor thereof:
33 Section 1. It is proposed to amend Utah Constitution Article XIII, Section 3, to read:
34 Article XIII, Section 3. [Property tax exemptions.]
35 (1) The following are exempt from property tax:
36 (a) property owned by the State;
37 (b) property owned by a public library;
38 (c) property owned by a school district;
39 (d) property owned by a political subdivision of the State, other than a school district,
40 and located within the political subdivision;
41 (e) property owned by a political subdivision of the State, other than a school district,
42 and located outside the political subdivision unless the Legislature by statute authorizes the
43 property tax on that property;
44 (f) property owned by a nonprofit entity used exclusively for religious, charitable, or
45 educational purposes;
46 (g) places of burial not held or used for private or corporate benefit;
47 (h) farm equipment and farm machinery as defined by statute; [and]
48 (i) water rights, reservoirs, pumping plants, ditches, canals, pipes, flumes, power
49 plants, and transmission lines to the extent owned and used by an individual or corporation to
50 irrigate land that is:
51 (i) within the State; and
52 (ii) owned by the individual or corporation, or by an individual member of the
53 corporation[.]; and
54 (j) (i) if owned by a nonprofit entity and used within the State to irrigate land, provide
55 domestic water, as defined by statute, or provide water to a public water supplier:
56 (A) water rights; and
57 (B) reservoirs, pumping plants, ditches, canals, pipes, flumes, and, as defined by

58 statute, other water infrastructure;
59 (ii) land occupied by a reservoir, ditch, canal, or pipe that is exempt under Subsection
60 (1)(j)(i)(B) if the land is owned by the nonprofit entity that owns the reservoir, ditch, canal, or
61 pipe; and
62 (iii) land immediately adjacent to a reservoir, ditch, canal, or pipe that is exempt under
63 Subsection (1)(j)(i)(B) if the land is:
64 (A) owned by the nonprofit entity that owns the adjacent reservoir, ditch, canal, or
65 pipe; and
66 (B) reasonably necessary for the maintenance or for otherwise supporting the
67 operation of the reservoir, ditch, canal, or pipe.
68 (2) (a) The Legislature may by statute exempt the following from property tax:
69 (i) tangible personal property constituting inventory present in the State on January 1
70 and held for sale in the ordinary course of business;
71 (ii) tangible personal property present in the State on January 1 and held for sale or
72 processing and shipped to a final destination outside the State within 12 months;
73 (iii) subject to Subsection (2)(b), property to the extent used to generate and deliver
74 electrical power for pumping water to irrigate lands in the State;
75 (iv) up to 45% of the fair market value of residential property, as defined by statute;
76 (v) household furnishings, furniture, and equipment used exclusively by the owner of
77 that property in maintaining the owner's home; and
78 (vi) tangible personal property that, if subject to property tax, would generate an
79 inconsequential amount of revenue.
80 (b) The exemption under Subsection (2)(a)(iii) shall accrue to the benefit of the users
81 of pumped water as provided by statute.
82 (3) The following may be exempted from property tax as provided by statute:
83 (a) property owned by a disabled person who, during military training or a military
84 conflict, was disabled in the line of duty in the military service of the United States or the
85 State; and

86 (b) property owned by the unmarried surviving spouse or the minor orphan of a person
87 who:
88 (i) is described in Subsection (3)(a); or
89 (ii) during military training or a military conflict, was killed in action or died in the
90 line of duty in the military service of the United States or the State.
91 (4) The Legislature may by statute provide for the remission or abatement of the taxes
92 of the poor.
93 Section 2. Submittal to voters.
94 The lieutenant governor is directed to submit this proposed amendment to the voters of
95 the state at the next regular general election in the manner provided by law.
96 Section 3. Effective date.
97 If the amendment proposed by this joint resolution is approved by a majority of those
98 voting on it at the next regular general election, the amendment shall take effect on January 1,
99 2011.