H.B. 75

1

PROPERTY TAXATION OF LOW-INCOME HOUSING
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Jack R. Draxler
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill makes changes to low-income housing reporting procedures and related
10 penalties for purposes of property taxation.
11 Highlighted Provisions:
12 This bill:
13 . requires the owner of property subject to a low-income housing covenant to
14 annually provide certain information to a county assessor;
15 . provides for assessment when the required information is not provided;
16 . provides for a penalty for failure to provide certain information to an assessor; and
17 . makes technical and conforming changes.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill takes effect on January 1, 2013.
22 Utah Code Sections Affected:
23 AMENDS:
24 59-2-301.3, as enacted by Laws of Utah 2003, Chapter 113
25
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 59-2-301.3 is amended to read:

28 59-2-301.3. Definitions -- Assessment of real property subject to a low-income
29 housing covenant.
30 (1) As used in this section:
31 (a) "low-income housing covenant" means an agreement:
32 (i) between:
33 (A) the Utah Housing Corporation; and
34 (B) an owner of real property upon which residential rental housing is located; and
35 (ii) in which the owner described in Subsection (1)(a)(i)(B) agrees to limit the amount
36 of rent that a renter may be charged for the residential rental housing; and
37 (b) "residential rental housing" means housing that:
38 (i) is used:
39 (A) for residential purposes; and
40 (B) as a primary residence; and
41 (ii) is rental property.
42 (2) [In assessing the fair market value of real property that is subject to a low-income
43 housing covenant, a] Upon receipt of the information required under Subsection (3), a county
44 assessor shall [include as part of the assessment], in determining the fair market value of real
45 property subject to a low-income housing covenant, take into account all relevant factors that
46 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) To have a county assessor take into account a low-income housing covenant under
51 Subsection (2), the owner of a property subject to a low-income housing covenant shall, by
52 April 30 of each year, provide to the county assessor:
53 (a) an application on a form provided by the assessor;
54 (b) a signed statement from the property owner that the project continues to meet the
55 requirements of the low-income housing covenant;
56 (c) a financial operating statement for the property for the prior year;
57 (d) rent rolls for the property for the prior year; and
58 (e) federal and commercial financing terms and agreements for the property.

59 (4) If the owner of a property subject to a low-income housing covenant fails to meet
60 the requirements of Subsection (3):
61 (a) the assessor shall:
62 (i) make a record of the failure to meet the requirements of Subsection (3); and
63 (ii) make an estimate of the fair market value of the property based on information
64 available to the assessor;
65 (b) the value fixed by the assessor in accordance with Subsection (4)(a)(ii) may not be
66 reduced by the county board of equalization or the commission; and
67 (c) the owner shall pay a penalty equal to the greater of:
68 (i) $250; or
69 (ii) 10% of the tax due on the property for that year.
70 Section 2. Effective date.
71 This bill takes effect on January 1, 2013.




Legislative Review Note
as of 1-20-12 8:12 AM

Office of Legislative Research and General Counsel