Download Zipped Introduced WordPerfect HB0075S02.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

Second Substitute H.B. 75

Senator Todd Weiler proposes the following substitute bill:


             1     
PROPERTY TAXATION OF LOW-INCOME HOUSING

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Jack R. Draxler

             5     
Senate Sponsor: Lyle W. Hillyard

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill makes changes to property tax provisions related to low-income housing.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires the owner of property subject to a low-income housing covenant to
             13      annually provide certain information to a county assessor;
             14          .    provides for assessment when the required information is not provided;
             15          .    provides for a penalty for failure to provide certain information to an assessor;
             16          .    provides authority to waive, reduce, or compromise the penalty in certain
             17      circumstances; and
             18          .    makes technical and conforming changes.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill takes effect on January 1, 2013.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          59-2-301.3, as enacted by Laws of Utah 2003, Chapter 113


             26     
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 59-2-301.3 is amended to read:
             29           59-2-301.3. Definitions -- Assessment of real property subject to a low-income
             30      housing covenant.
             31          (1) As used in this section:
             32          (a) "low-income housing covenant" means an agreement:
             33          (i) between:
             34          (A) the Utah Housing Corporation; and
             35          (B) an owner of real property upon which residential rental housing is located; and
             36          (ii) in which the owner described in Subsection (1)(a)(i)(B) agrees to limit the amount
             37      of rent that a renter may be charged for the residential rental housing; and
             38          (b) "residential rental housing" means housing that:
             39          (i) is used:
             40          (A) for residential purposes; and
             41          (B) as a primary residence; and
             42          (ii) is rental property.
             43          (2) [In assessing the fair market value of real property that is subject to a low-income
             44      housing covenant, a] A county assessor shall [include as part of the assessment], in determining
             45      the fair market value of real property subject to a low-income housing covenant, take into
             46      account all relevant factors that affect the fair market value of the property, including:
             47          (a) the information provided in Subsection (3); and
             48          (b) any effects the low-income housing covenant may have on the fair market value of
             49      the real property.
             50          (3) (a) Except as provided in Subsection (3)(b), to have a county assessor take into
             51      account a low-income housing covenant under Subsection (2), the owner of a property subject
             52      to a low-income housing covenant shall, by April 30 of each year, provide to the county
             53      assessor:
             54          (i) a signed statement from the property owner that the project continues to meet the
             55      requirements of the low-income housing covenant;
             56          (ii) a financial operating statement for the property for the prior year;


             57          (iii) rent rolls for the property for the prior year; and
             58          (iv) federal and commercial financing terms and agreements for the property.
             59          (b) If the April 30 described in Subsection (3)(a) falls within the first twelve months
             60      after a low-income housing operation begins on the property, a property owner shall provide
             61      estimates of the information required by Subsections (3)(a)(ii) through (iv).
             62          (4) If the owner of a property subject to a low-income housing covenant fails to meet
             63      the requirements of Subsection (3):
             64          (a) the assessor shall:
             65          (i) make a record of the failure to meet the requirements of Subsection (3); and
             66          (ii) make an estimate of the fair market value of the property in accordance with
             67      Subsection (2) based on information available to the assessor; and
             68          (b) subject to Subsection (5), the owner shall pay a penalty equal to the greater of:
             69          (i) $250; or
             70          (ii) 5% of the tax due on the property for that year.
             71          (5) (a) Only one penalty per year may be imposed per housing project subject to a
             72      low-income housing covenant.
             73          (b) Upon making a record of the action, and upon reasonable cause shown, an assessor
             74      may waive, reduce, or compromise the penalty imposed under Subsection (4)(b).
             75          Section 2. Effective date.
             76          This bill takes effect on January 1, 2013.


[Bill Documents][Bills Directory]