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First Substitute H.B. 219

Representative Gage Froerer proposes the following substitute bill:




Chief Sponsor: Gage Froerer

Senate Sponsor: Wayne L. Niederhauser

             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions in the Property Tax Act related to the imposition and
             10      payment of delinquent taxes.
             11      Highlighted Provisions:
             12          This bill:
             13          .    increases the penalty imposed on delinquent property taxes from 2% to 2.5%;
             14          .    provides that the penalty is only 1% if the delinquent property taxes and the penalty
             15      are paid by a specified date;
             16          .    provides that the interest rate that attaches to delinquent taxes and the penalty be:
             17              .    no less than 7%; and
             18              .    no more than 10%; and
             19          .    makes technical changes.
             20      Monies Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          This bill has retrospective operation to January 1, 2010.
             24      Utah Code Sections Affected:
             25      AMENDS:

             26          59-2-1331, as last amended by Laws of Utah 2007, Chapter 306
             28      Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 59-2-1331 is amended to read:
             30           59-2-1331. Date tax is delinquent -- Penalty -- Interest -- Payments -- Refund of
             31      prepayment.
             32          (1) (a) Except as provided in Subsection (1)(b), all taxes, unless otherwise specifically
             33      provided for under Section 59-2-1332 , or other law, unpaid or postmarked after November 30
             34      of each year following the date of levy, are delinquent, and the county treasurer shall close the
             35      treasurer's office for the posting of current year tax payments until a delinquent list has been
             36      prepared.
             37          (b) Notwithstanding Subsection (1)(a), if November 30 falls on a Saturday, Sunday, or
             38      holiday:
             39          (i) the date of the next following day that is not a Saturday, Sunday, or holiday shall be
             40      substituted in Subsection (1)(a) and Subsection 59-2-1332 (1) for November 30; and
             41          (ii) the date of the day occurring 30 days after the date under Subsection (1)(b)(i) shall
             42      be substituted in Subsection 59-2-1332 (1) for December 30.
             43          (2) (a) [For] Except as provided in Subsection (2)(e), for each parcel, all delinquent
             44      taxes on each separately assessed parcel are subject to a penalty of [2%] 2.5% of the amount of
             45      the delinquent taxes or $10, whichever is greater.
             46          (b) Unless the delinquent taxes, together with the penalty, are paid before January [16]
             47      31, the amount of taxes and penalty shall bear interest on a per annum basis from the January 1
             48      immediately following the delinquency date.
             49          (c) [For] Except as provided in Subsection (2)(d), for purposes of Subsection (2)(b),
             50      the interest rate is equal to the sum of:
             51          (i) 6%; and
             52          (ii) the federal funds rate target:
             53          (A) established by the Federal Open Markets Committee; and
             54          (B) that exists on the January 1 immediately following the date of delinquency.
             55          (d) The interest rate described in Subsection (2)(c) may not be:
             56          (i) less than 7%; or

             57          (ii) more than 10%.
             58          (e) The penalty described in Subsection (2)(a) shall be 1% of the amount of the
             59      delinquent taxes or $10, whichever is greater, if all delinquent taxes and the penalty are paid on
             60      or before the January 31 immediately following the delinquency date.
             61          (3) If the delinquency exceeds one year, the amount of taxes and penalties for that year
             62      and all succeeding years shall bear interest until settled in full through redemption or tax sale.
             63      The interest rate to be applied shall be calculated for each year as established under Subsection
             64      (2) and shall apply on each individual year's delinquency until paid.
             65          (4) The county treasurer may accept and credit on account against taxes becoming due
             66      during the current year, at any time before or after the tax rates are adopted, but not subsequent
             67      to the date of delinquency, either:
             68          (a) payments in amounts of not less than $10; or
             69          (b) the full amount of the unpaid tax.
             70          (5) (a) At any time before the county treasurer mails the tax notice described in Section
             71      59-2-1317 , the county treasurer may refund amounts accepted and credited on account against
             72      taxes becoming due during the current year.
             73          (b) Upon recommendation by the county treasurer, the county legislative body shall
             74      adopt rules or ordinances to implement the provisions of this Subsection (5).
             75          Section 2. Retrospective operation.
             76          This bill has retrospective operation to January 1, 2010.

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