H.B. 182

1

PROPERTY TAX - HOME OWNER EXEMPTION
2 MODIFICATION
3 2010 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Gage Froerer
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill makes changes to the residential property tax exemption.
11 Highlighted Provisions:
12 This bill:
13 . changes certain qualifications for the residential property tax exemption;
14 . establishes procedures for certain residential properties to receive the exemption;
15 . provides a penalty for making a false statement to obtain a residential property tax
16 exemption; and
17 . makes technical changes.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill takes effect January 1, 2011.
22 Utah Code Sections Affected:
23 AMENDS:
24 59-2-103, as last amended by Laws of Utah 2004, Chapters 90 and 281
25 59-2-103.5, as last amended by Laws of Utah 2008, Chapter 382
26
27 Be it enacted by the Legislature of the state of Utah:

28 Section 1. Section 59-2-103 is amended to read:
29 59-2-103. Rate of assessment of property -- Residential property.
30 (1) All tangible taxable property located within the state shall be assessed and taxed at
31 a uniform and equal rate on the basis of its fair market value, as valued on January 1, unless
32 otherwise provided by law.
33 [(2) Subject to Subsections (3) and (4), beginning on January 1, 1995, the fair market
34 value of residential property located within the state shall be reduced by 45%, representing a
35 residential exemption allowed under Utah Constitution Article XIII, Section 2.]
36 (2) (a) As allowed under Utah Constitution, Article XIII, Section 3, and subject to
37 Subsections (2)(b) and (c), the taxable value of residential property, as defined in Section
38 59-2-102 , is the amount remaining after applying an exemption consisting of a 45% reduction
39 to the property's fair market value.
40 [(3) No] (b) (i) Except as provided in Subsection (2)(b)(ii), no more than one acre of
41 land per residential unit [may qualify] qualifies for the residential exemption under Subsection
42 (2)(a).
43 (ii) A residential property consisting of more than one acre of land per residential unit
44 qualifies for the residential exemption under Subsection (2)(a) if:
45 (A) the amount of land per residential unit is six acres or less; and
46 (B) the property is prohibited from being subdivided by:
47 (I) an applicable county or municipal ordinance; or
48 (II) an applicable covenant, condition, or restriction recorded with the county recorder.
49 [(4) (a) Except as provided in Subsection (4)(b)(ii), beginning on January 1, 2005 , the
50 residential exemption in Subsection (2) is limited to one primary residence per household.]
51 [(b)] (c) [An owner of multiple residential properties located within the state is allowed
52 a] A residential exemption under Subsection (2)(a) is allowed for:
53 (i) [subject to Subsection (4)(a), the] one owner-occupied primary residence [of the
54 owner] per household; and
55 (ii) each residential property that is the primary residence of a tenant.
56 Section 2. Section 59-2-103.5 is amended to read:
57 59-2-103.5. Procedures to obtain an exemption for residential property.
58 (1) (a) Subject to the other provisions of this section, a county [legislative body may by

59 ordinance require that in order for residential property to be allowed] assessor may, prior to
60 allowing a residential exemption in accordance with Section 59-2-103 , require an owner of
61 [the] residential property [shall] to file with the county [board of equalization a] assessor the
62 statement[:] described in Subsection (2) if:
63 (i) the residential property is sold;
64 (ii) the residential property meets the qualifications of Subsection 59-2-103 (2)(b)(ii); or
65 (iii) the county assessor determines that there is reason to believe that the residential
66 property does not qualify for the residential exemption under Section 59-2-103 .
67 (b) A county assessor shall allow a residential exemption for residential property that
68 meets the qualifications of Subsection 59-2-103 (2)(b)(ii) if the owner files with the county
69 assessor:
70 (i) the statement described in Subsection (2); and
71 (ii) a copy of the applicable:
72 (A) county or municipal ordinance; or
73 (B) covenant, condition, or restriction recorded with the county recorder.
74 (c) For purposes of Subsection (1)(a)(i), the commission shall, in accordance with Title
75 63G, Chapter 3, Utah Administrative Rulemaking Act, make a rule to exclude from the term
76 "sold" instances where a legal transfer of title occurs, but no bona fide sale occurs.
77 (2) A statement under Subsection (1) shall:
78 (a) be on a form prescribed by the commission by rule;
79 (b) be signed by all of the owners of the residential property;
80 (c) [certifying] certify that the residential property is residential property; and
81 (d) [containing] contain other information as required by the commission by rule.
82 [(2) (a) Subject to Section 59-2-103 and except as provided in Subsection (3), a county
83 board of equalization shall allow an owner described in Subsection (1) a residential exemption
84 for the residential property described in Subsection (1) if: (i) the county legislative body enacts
85 the ordinance described in Subsection (1); and (ii) the county board of equalization determines
86 that the requirements of Subsection (1) are met.]
87 [(b) A county board of equalization may require an owner of the residential property
88 described in Subsection (1) to file the statement described in Subsection (1) only if:]
89 [(i) that residential property was ineligible for the residential exemption authorized

90 under Section 59-2-103 during the calendar year immediately preceding the calendar year for
91 which the owner is seeking to claim the residential exemption for that residential property;]
92 [(ii) an ownership interest in that residential property changes; or]
93 [(iii) the county board of equalization determines that there is reason to believe that
94 that residential property no longer qualifies for the residential exemption in accordance with
95 Section 59-2-103 .]
96 [(3) Notwithstanding Subsection (2)(a), if a county legislative body does not enact an
97 ordinance requiring an owner to file a statement in accordance with this section, the county
98 board of equalization:]
99 [(a) may not require an owner to file a statement for residential property to be eligible
100 for a residential exemption in accordance with Section 59-2-103 ; and]
101 [(b) shall allow a residential exemption for residential property in accordance with
102 Section 59-2-103 .]
103 (3) If a county assessor does not allow a residential property owner a residential
104 exemption under this section, the property owner may file an application to appeal with the
105 county board of equalization as provided in Section 59-2-1004 .
106 (4) (a) A property owner shall pay the penalty described in Subsection (4)(b) for each
107 tax year the property owner:
108 (i) knowingly provides false information on the statement described in Subsection (2);
109 or
110 (ii) falsely claims the owner's property is residential property that qualifies for the
111 residential exemption in Section 59-2-103 .
112 (b) The penalty for a violation under Subsection (4)(a) is an amount equal to the sum
113 of:
114 (i) the property tax that would have been due on the property without the residential
115 exemption for the tax year in which the property owner received the residential exemption and
116 violated Subsection (4)(a); and
117 (ii) 10% of the amount described in Subsection (4)(b)(i).
118 [(4)] (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
119 Act, the commission shall make rules providing[: (i)] the form and contents for the statement
120 described in Subsection [(1); and] (2).

121 [(ii) the contents of the form for the statement described in Subsection (1).]
122 (b) The commission shall make the form described in Subsection [(4)] (5)(a) available
123 to counties.
124 Section 3. Effective date.
125 This bill takes effect January 1, 2011.




Legislative Review Note
as of 2-3-10 10:43 AM

Office of Legislative Research and General Counsel