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First Substitute S.B. 158

Senator Benjamin M. McAdams proposes the following substitute bill:


             1     
DELINQUENT PROPERTY TAX AND UNIFORM FEE

             2     
AMENDMENTS

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Benjamin M. McAdams

             6     
House Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions related to interest rates on delinquent property taxes or
             11      uniform fees.
             12      Highlighted Provisions:
             13          This bill:
             14          .    increases interest rates and interest rate caps on delinquent property taxes or
             15      uniform fees.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          This bill takes effect on January 1, 2013.
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          59-2-1302, as last amended by Laws of Utah 2011, Chapter 163
             23          59-2-1331, as last amended by Laws of Utah 2010, Chapter 63
             24     
             25      Be it enacted by the Legislature of the state of Utah:


             26          Section 1. Section 59-2-1302 is amended to read:
             27           59-2-1302. Assessor or treasurer's duties -- Collection of uniform fees and taxes
             28      on personal property -- Unpaid tax or unpaid uniform fee is a lien -- Delinquency interest
             29      -- Rate.
             30          (1) After the assessor assesses taxes or uniform fees on personal property, the assessor
             31      or, if this duty has been reassigned in an ordinance under Section 17-16-5.5 , the treasurer shall:
             32          (a) list the personal property tax or uniform fee with the real property of the owner in
             33      the manner required by law and as provided under Subsection (3), if the assessor or treasurer,
             34      as the case may be, determines that the real property is sufficient to secure the payment of the
             35      personal property taxes or uniform fees;
             36          (b) immediately collect the taxes or uniform fees due on the personal property; or
             37          (c) on or before the day on which the tax or uniform fee on personal property is due,
             38      obtain from the taxpayer a bond that is:
             39          (i) payable to the county in an amount equal to the amount of the tax or uniform fee
             40      due, plus 20% of the amount of the tax or uniform fee due; and
             41          (ii) conditioned for the payment of the tax or uniform fee on or before November 30.
             42          (2) (a) An unpaid tax as defined in Section 59-1-705 , or unpaid uniform fee upon
             43      personal property listed with the real property is a lien upon the owner's real property as of
             44      noon of January 1 of each year.
             45          (b) An unpaid tax as defined in Section 59-1-705 , or unpaid uniform fee upon personal
             46      property not listed with the real property is a lien upon the owner's personal property as of noon
             47      of January 1 of each year.
             48          (3) The assessor or treasurer, as the case may be, shall make the listing under this
             49      section:
             50          (a) on the record of assessment of the real property; or
             51          (b) by entering a reference showing the record of the assessment of the personal
             52      property on the record of assessment of the real property.
             53          (4) (a) The amount of tax or uniform fee assessed upon personal property is delinquent
             54      if the tax or uniform fee is not paid on the day on which the tax notice or the combined signed
             55      statement and tax notice under Section 59-2-306 is due.
             56          (b) Subject to Subsection (4)(c), delinquent taxes or uniform fees under Subsection


             57      (4)(a) shall bear interest from the date of delinquency until the day on which the delinquent tax
             58      or uniform fee is paid at an interest rate equal to the sum of:
             59          (i) [6%] 8%; and
             60          (ii) the federal funds rate target:
             61          (A) established by the Federal Open Markets Committee; and
             62          (B) that exists on the January 1 immediately preceding the date of delinquency.
             63          (c) The interest rate described in Subsection (4)(b) may not be less than [7%] 8% or
             64      more than [10%] 12%.
             65          (5) A county assessor or treasurer shall deposit all collections of public funds from a
             66      personal property tax or personal property uniform fee no later than once every seven banking
             67      days with:
             68          (a) the state treasurer; or
             69          (b) a qualified depository for the credit of the county.
             70          Section 2. Section 59-2-1331 is amended to read:
             71           59-2-1331. Date tax is delinquent -- Penalty -- Interest -- Payments -- Refund of
             72      prepayment.
             73          (1) (a) Except as provided in Subsection (1)(b), all taxes, unless otherwise specifically
             74      provided for under Section 59-2-1332 , or other law, unpaid or postmarked after November 30
             75      of each year following the date of levy, are delinquent, and the county treasurer shall close the
             76      treasurer's office for the posting of current year tax payments until a delinquent list has been
             77      prepared.
             78          (b) Notwithstanding Subsection (1)(a), if November 30 falls on a Saturday, Sunday, or
             79      holiday:
             80          (i) the date of the next following day that is not a Saturday, Sunday, or holiday shall be
             81      substituted in Subsection (1)(a) and Subsection 59-2-1332 (1) for November 30; and
             82          (ii) the date of the day occurring 30 days after the date under Subsection (1)(b)(i) shall
             83      be substituted in Subsection 59-2-1332 (1) for December 30.
             84          (2) (a) Except as provided in Subsection (2)(e), for each parcel, all delinquent taxes on
             85      each separately assessed parcel are subject to a penalty of 2.5% of the amount of the delinquent
             86      taxes or $10, whichever is greater.
             87          (b) Unless the delinquent taxes, together with the penalty, are paid on or before January


             88      31, the amount of taxes and penalty shall bear interest on a per annum basis from the January 1
             89      immediately following the delinquency date.
             90          (c) Except as provided in Subsection (2)(d), for purposes of Subsection (2)(b), the
             91      interest rate is equal to the sum of:
             92          (i) [6%] 8%; and
             93          (ii) the federal funds rate target:
             94          (A) established by the Federal Open Markets Committee; and
             95          (B) that exists on the January 1 immediately following the date of delinquency.
             96          (d) The interest rate described in Subsection (2)(c) may not be:
             97          (i) less than [7%] 8%; or
             98          (ii) more than [10%] 12%.
             99          (e) The penalty described in Subsection (2)(a) is 1% of the amount of the delinquent
             100      taxes or $10, whichever is greater, if all delinquent taxes and the penalty are paid on or before
             101      the January 31 immediately following the delinquency date.
             102          (3) If the delinquency exceeds one year, the amount of taxes and penalties for that year
             103      and all succeeding years shall bear interest until settled in full through redemption or tax sale.
             104      The interest rate to be applied shall be calculated for each year as established under Subsection
             105      (2) and shall apply on each individual year's delinquency until paid.
             106          (4) The county treasurer may accept and credit on account against taxes becoming due
             107      during the current year, at any time before or after the tax rates are adopted, but not subsequent
             108      to the date of delinquency, either:
             109          (a) payments in amounts of not less than $10; or
             110          (b) the full amount of the unpaid tax.
             111          (5) (a) At any time before the county treasurer mails the tax notice described in Section
             112      59-2-1317 , the county treasurer may refund amounts accepted and credited on account against
             113      taxes becoming due during the current year.
             114          (b) Upon recommendation by the county treasurer, the county legislative body shall
             115      adopt rules or ordinances to implement the provisions of this Subsection (5).
             116          Section 3. Effective date.
             117          This bill takes effect on January 1, 2013.


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