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H.B. 75





Chief Sponsor: Jack R. Draxler

Senate Sponsor: ____________

             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
             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

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