Second Substitute H.B. 54

Senator Howard A. Stephenson proposes the following substitute bill:

1 PROPERTY TAX AND APPRAISER AMENDMENTS
2 2013 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Gage Froerer
5 Senate Sponsor: Howard A. Stephenson
6
7 LONG TITLE
8 General Description:
9 This bill makes changes related to property appraiser licensing requirements and
10 property tax appeals.
11 Highlighted Provisions:
12 This bill:
13 . establishes requirements related to county property tax appeal hearing officers;
14 . addresses the consideration and weighing of evidence in a property tax appeal;
15 . defines terms;
16 . allows a person to present evidence or provide property tax information on behalf of
17 another person in a property tax appeal under certain circumstances;
18 . addresses the duties of a county relative to a property tax appeal;
19 . exempts certain persons presenting evidence or providing property tax information
20 from appraiser licensing provisions in certain circumstances;
21 . addresses contingent fees;
22 . prohibits the use of certain terms by a person providing a price estimate or property
23 tax information for a property tax appeal; and
24 . makes technical and conforming changes.
25 Money Appropriated in this Bill:

26 None
27 Other Special Clauses:
28 None
29 Utah Code Sections Affected:
30 AMENDS:
31 59-2-1001, as last amended by Laws of Utah 1993, Chapter 227
32 59-2-1004, as last amended by Laws of Utah 2012, Chapter 85
33 59-2-1006, as last amended by Laws of Utah 1992, Chapter 288
34 61-2g-301, as last amended by Laws of Utah 2012, Chapters 166 and 384
35 61-2g-406, as renumbered and amended by Laws of Utah 2011, Chapter 289
36 61-2g-407, as renumbered and amended by Laws of Utah 2011, Chapter 289
37 ENACTS:
38 59-2-1017, Utah Code Annotated 1953
39
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 59-2-1001 is amended to read:
42 59-2-1001. County board of equalization -- Public hearings -- Hearing officers --
43 Notice of decision -- Rulemaking.
44 (1) The county legislative body is the county board of equalization and the county
45 auditor is the clerk of the county board of equalization.
46 (2) The county board of equalization shall adjust and equalize the valuation and
47 assessment of the real and personal property within the county, subject to regulation and
48 control by the commission, as prescribed by law. The county board of equalization shall meet
49 and hold public hearings each year to examine the assessment roll and equalize the assessment
50 of property in the county, including the assessment for general taxes of all taxing entities
51 located in the county.
52 [(3) For the purpose of this chapter, the county board of equalization may appoint
53 hearing officers for the purpose of examining applicants and witnesses. The hearing officers]
54 (3) (a) Except as provided in Subsection (3)(d), a county board of equalization may:
55 (i) appoint an appraiser licensed in accordance with Title 61, Chapter 2g, Real Estate
56 Appraiser Licensing and Certification Act, as a hearing officer for the purpose of examining an

57 applicant or a witness; or
58 (ii) appoint an individual who is not licensed in accordance with Title 61, Chapter 2g,
59 Real Estate Appraiser Licensing and Certification Act, as a hearing officer for the purpose of
60 examining an applicant or a witness if the county board of equalization determines that the
61 individual has competency relevant to the work of a hearing officer, including competency in:
62 (A) real estate;
63 (B) finance;
64 (C) economics;
65 (D) public administration; or
66 (E) law.
67 (b) Except as provided in Subsection (3)(d), beginning on January 1, 2014, a county
68 board of equalization may only allow an individual to serve as a hearing officer for the
69 purposes of examining an applicant or a witness if the individual has completed a course the
70 commission:
71 (i) develops in accordance with Subsection (3)(c)(i); or
72 (ii) approves in accordance with Subsection (3)(c)(ii).
73 (c) (i) On or before January 1, 2014, the commission shall develop a hearing officer
74 training course that includes training in property valuation and administrative law.
75 (ii) In addition to the course the commission develops in accordance with Subsection
76 (3)(c)(i), the commission may approve a hearing officer training course provided by a county or
77 a private entity if the course includes training in property valuation and administrative law.
78 (d) A county board of equalization may not appoint a person employed by an assessor's
79 office as a hearing officer.
80 (e) A hearing officer shall transmit [their] the hearing officer's findings to the board,
81 where a quorum shall be required for final action upon any application for exemption, deferral,
82 reduction, or abatement.
83 (4) The clerk of the board of equalization shall notify the taxpayer, in writing, of any
84 decision of the board. The decision shall include any adjustment in the amount of taxes due on
85 the property resulting from a change in the taxable value and shall be considered the corrected
86 tax notice.
87 (5) During the session of the board, the assessor or any deputy whose testimony is

88 needed shall be present[,] and may make any statement or introduce and examine witnesses on
89 questions before the board.
90 (6) The county board of equalization may make and enforce any rule which is
91 consistent with statute or commission rule[,] and necessary for the government of the board,
92 the preservation of order, and the transaction of business.
93 Section 2. Section 59-2-1004 is amended to read:
94 59-2-1004. Appeal to county board of equalization -- Real property -- Time
95 period for appeal -- Decision of board -- Extensions approved by commission -- Appeal to
96 commission.
97 (1) (a) A taxpayer dissatisfied with the valuation or the equalization of the taxpayer's
98 real property may make an application to appeal by:
99 (i) filing the application with the county board of equalization within the time period
100 described in Subsection (2); or
101 (ii) making an application by telephone or other electronic means within the time
102 period described in Subsection (2) if the county legislative body passes a resolution under
103 Subsection [(5)] (7) authorizing applications to be made by telephone or other electronic
104 means.
105 (b) The contents of the application shall be prescribed by rule of the county board of
106 equalization.
107 (2) (a) Except as provided in Subsection (2)(b), for purposes of Subsection (1), a
108 taxpayer shall make an application to appeal the valuation or the equalization of the taxpayer's
109 real property on or before the later of:
110 (i) September 15 of the current calendar year; or
111 (ii) the last day of a 45-day period beginning on the day on which the county auditor
112 mails the notice under Section 59-2-919.1 .
113 (b) Notwithstanding Subsection (2)(a), in accordance with Title 63G, Chapter 3, Utah
114 Administrative Rulemaking Act, the commission shall make rules providing for circumstances
115 under which the county board of equalization is required to accept an application to appeal that
116 is filed after the time period prescribed in Subsection (2)(a).
117 (3) The owner shall include in the application under Subsection (1)(a)(i) the owner's
118 estimate of the fair market value of the property and any evidence which may indicate that the

119 assessed valuation of the owner's property is improperly equalized with the assessed valuation
120 of comparable properties.
121 (4) In reviewing evidence submitted to a county board of equalization by or on behalf
122 of an owner or a county assessor, the county board of equalization shall consider and weigh:
123 (a) the accuracy, reliability, and comparability of the evidence presented by the owner
124 or the county assessor;
125 (b) if submitted, the sales price of relevant property that was under contract for sale as
126 of the lien date but sold after the lien date;
127 (c) if submitted, the sales offering price of property that was offered for sale as of the
128 lien date but did not sell, including considering and weighing the amount of time for which,
129 and manner in which, the property was offered for sale; and
130 (d) if submitted, other evidence that is relevant to determining the fair market value of
131 the property.
132 [(4)] (5) (a) The county board of equalization shall meet and hold public hearings as
133 prescribed in Section 59-2-1001 .
134 (b) The county board of equalization shall make a decision on each appeal filed in
135 accordance with this section within a 60-day period after the day on which the application is
136 made.
137 (c) The commission may approve the extension of a time period provided for in
138 Subsection [(4)] (5)(b) for a county board of equalization to make a decision on an appeal.
139 (d) Unless the commission approves the extension of a time period under Subsection
140 (5)(c), if a county board of equalization fails to make a decision on an appeal within the time
141 period described in Subsection (5)(b), the county legislative body shall:
142 (i) list the appeal, by property owner and parcel number, on the agenda for the next
143 meeting of the county legislative body that is held after the expiration of the time period
144 described in Subsection (5)(b); and
145 (ii) hear the appeal at the meeting described in Subsection (5)(d)(i).
146 [(d)] (e) The decision of the board shall contain a determination of the valuation of the
147 property based on fair market value, and a conclusion that the fair market value is properly
148 equalized with the assessed value of comparable properties.
149 [(e)] (f) If no evidence is presented before the county board of equalization, it will be

150 presumed that the equalization issue has been met.
151 [(f)] (g) (i) If the fair market value of the property that is the subject of the appeal
152 deviates plus or minus 5% from the assessed value of comparable properties, the valuation of
153 the appealed property shall be adjusted to reflect a value equalized with the assessed value of
154 comparable properties.
155 (ii) Subject to Sections 59-2-301.1 , 59-2-301.2 , 59-2-301.3 , and 59-2-301.4 , equalized
156 value established under Subsection [(4)(f)(i)] (5)(g)(i) shall be the assessed value for property
157 tax purposes until the county assessor is able to evaluate and equalize the assessed value of all
158 comparable properties to bring them all into conformity with full fair market value.
159 [(5)] (6) If any taxpayer is dissatisfied with the decision of the county board of
160 equalization, the taxpayer may file an appeal with the commission as prescribed in Section
161 59-2-1006 .
162 [(6)] (7) A county legislative body may pass a resolution authorizing taxpayers owing
163 taxes on property assessed by that county to file property tax appeals applications under this
164 section by telephone or other electronic means.
165 Section 3. Section 59-2-1006 is amended to read:
166 59-2-1006. Appeal to commission -- Duties of auditor -- Decision by commission.
167 (1) Any person dissatisfied with the decision of the county board of equalization
168 concerning the assessment and equalization of any property, or the determination of any
169 exemption in which the person has an interest, may appeal that decision to the commission by
170 filing a notice of appeal specifying the grounds for the appeal with the county auditor within 30
171 days after the final action of the county board.
172 (2) The auditor shall:
173 (a) file one notice with the commission;
174 (b) certify and transmit to the commission:
175 (i) the minutes of the proceedings of the county board of equalization for the matter
176 appealed;
177 (ii) all documentary evidence received in that proceeding; and
178 (iii) a transcript of any testimony taken at that proceeding that was preserved; and
179 (c) if the appeal is from a hearing where an exemption was granted or denied, certify
180 and transmit to the commission the written decision of the board of equalization as required by

181 Section 59-2-1102 .
182 (3) In reviewing the county board's decision, the commission may:
183 (a) admit additional evidence;
184 (b) issue orders that it considers to be just and proper; and
185 (c) make any correction or change in the assessment or order of the county board of
186 equalization.
187 (4) In reviewing evidence submitted to the commission by or on behalf of an owner or
188 a county, the commission shall consider and weigh:
189 (a) the accuracy, reliability, and comparability of the evidence presented by the owner
190 or the county;
191 (b) if submitted, the sales price of relevant property that was under contract for sale as
192 of the lien date but sold after the lien date;
193 (c) if submitted, the sales offering price of property that was offered for sale as of the
194 lien date but did not sell, including considering and weighing the amount of time for which,
195 and manner in which, the property was offered for sale; and
196 (d) if submitted, other evidence that is relevant to determining the fair market value of
197 the property.
198 [(4)] (5) In reviewing the county board's decision, the commission shall adjust property
199 valuations to reflect a value equalized with the assessed value of other comparable properties
200 if:
201 (a) the issue of equalization of property values is raised; and
202 (b) the commission determines that the property that is the subject of the appeal
203 deviates in value plus or minus 5% from the assessed value of comparable properties.
204 [(5)] (6) The commission shall decide all appeals taken pursuant to this section not
205 later than March 1 of the following year for real property and within 90 days for personal
206 property, and shall report its decision, order, or assessment to the county auditor, who shall
207 make all changes necessary to comply with the decision, order, or assessment.
208 Section 4. Section 59-2-1017 is enacted to read:
209 59-2-1017. Property tax appeal assistance.
210 (1) As used in this section:
211 (a) "Licensed appraiser" means an appraiser licensed in accordance with Title 61,

212 Chapter 2g, Real Estate Appraiser Licensing and Certification Act.
213 (b) "Opinion of value" means an estimate of fair market value that:
214 (i) is made by a licensed appraiser; and
215 (ii) complies with the Uniform Standards of Professional Appraisal Practice
216 promulgated by the Appraisal Standards Board as described in 12 U.S.C. Sec. 3339.
217 (c) "Present evidence" means to present information:
218 (i) to a county board of equalization or the commission; and
219 (ii) related to a property tax appeal made in accordance with this part.
220 (d) "Price estimate" means an estimate:
221 (i) of the price that property would sell for; and
222 (ii) that is not an opinion of value.
223 (e) "Provide property tax information" means to provide information related to a
224 property tax appeal made in accordance with this part to another person.
225 (2) Subject to the other provisions of this section, a person may:
226 (a) present evidence in a property tax appeal on behalf of another person after
227 obtaining permission from that other person; or
228 (b) provide property tax information to another person.
229 (3) For purposes of Subsection (2):
230 (a) only a person who is a licensed appraiser may present or provide an opinion of
231 value; and
232 (b) only a person who is not a licensed appraiser may present or provide a price
233 estimate.
234 (4) (a) A licensed appraiser who presents evidence or provides property tax
235 information in accordance with Subsection (2) is subject to Sections 61-2g-304 , 61-2g-403 ,
236 61-2g-406 , and 62-2g-407 .
237 (b) A person who is not a licensed appraiser, who presents evidence or provides
238 property tax information in accordance with Subsection (2):
239 (i) is subject to Section 61-2g-407 ; and
240 (ii) if the person charges a contingent fee, is subject to Section 61-2g-406 .
241 (5) A county board of equalization or the commission may evaluate the reliability or
242 accuracy of evidence presented or property tax information provided in accordance with

243 Subsection (2).
244 Section 5. Section 61-2g-301 is amended to read:
245 61-2g-301. License or certification required.
246 (1) Except as provided in Subsection (2), it is unlawful for a person to prepare, for
247 valuable consideration, an appraisal, an appraisal report, a certified appraisal report, or perform
248 a consultation service relating to real estate or real property in this state without first being
249 licensed or certified in accordance with this chapter.
250 (2) This section does not apply to:
251 (a) a principal broker, associate broker, or sales agent as defined by Section 61-2f-102
252 licensed by this state who, in the ordinary course of the broker's or sales agent's business, gives
253 an opinion:
254 (i) regarding the value of real estate;
255 (ii) to a potential seller or third-party recommending a listing price of real estate; or
256 (iii) to a potential buyer or third-party recommending a purchase price of real estate;
257 (b) an employee of a company who states an opinion of value or prepares a report
258 containing value conclusions relating to real estate or real property solely for the company's
259 use;
260 (c) an official or employee of a government agency while acting solely within the scope
261 of the official's or employee's duties, unless otherwise required by Utah law;
262 (d) an auditor or accountant who states an opinion of value or prepares a report
263 containing value conclusions relating to real estate or real property while performing an audit;
264 (e) an individual, except an individual who is required to be licensed or certified under
265 this chapter, who states an opinion about the value of property in which the person has an
266 ownership interest;
267 (f) an individual who states an opinion of value if no consideration is paid or agreed to
268 be paid for the opinion and no other party is reasonably expected to rely on the individual's
269 appraisal expertise;
270 (g) an individual, such as a researcher or a secretary, who does not render significant
271 professional assistance, as defined by the board, in arriving at a real estate appraisal analysis,
272 opinion, or conclusion; [or]
273 (h) an attorney authorized to practice law in any state who, in the course of the

274 attorney's practice or tax appeal services, uses an appraisal report governed by this chapter or
275 who states an opinion of the value of real estate[.]; or
276 (i) a person who is not an appraiser who presents or provides a price estimate,
277 evidence, or property tax information solely for a property tax appeal in accordance with
278 Section 59-2-1017 .
279 (3) An opinion of value or report containing value conclusions exempt under
280 Subsection (2) may not be referred to as an appraisal.
281 (4) Except as provided in Subsection (2), to prepare or cause to be prepared in this state
282 an appraisal, an appraisal report, or a certified appraisal report, an individual shall:
283 (a) apply in writing for licensure or certification as provided in this chapter in the form
284 [as] the division may prescribe; and
285 (b) become licensed or certified under this chapter.
286 Section 6. Section 61-2g-406 is amended to read:
287 61-2g-406. Contingent fees.
288 (1) A person licensed or certified under this chapter who enters into an agreement to
289 perform an appraisal may not accept a contingent fee.
290 (2) A person who presents or provides a price estimate or property tax information in
291 accordance with Section 59-2-1017 , or a person who is licensed or certified under this chapter
292 who enters into an agreement to provide consultation services, may be paid a fixed fee or a
293 contingent fee.
294 (3) (a) If a person who presents or provides a price estimate or property tax information
295 in accordance with Section 59-2-1017 , or a person who is licensed or certified under this
296 chapter, enters into an agreement to perform consultation services for a contingent fee, this fact
297 shall be clearly stated in each oral statement.
298 (b) In addition to the requirements of Subsection (3)(a), if a person who presents or
299 provides a price estimate or property tax information in accordance with Section 59-2-1017 , or
300 a person who is licensed or certified under this chapter, prepares a written consultation report
301 or summary, letter of transmittal, or certification statement for a contingent fee, the person shall
302 clearly state in the price estimate property tax information, report, summary, letter of
303 transmittal, or certification statement that the report is prepared under a contingent fee
304 arrangement.

305 Section 7. Section 61-2g-407 is amended to read:
306 61-2g-407. Consultation reports -- Restrictions on use of terms.
307 A person who presents or provides a price estimate or property tax information in
308 accordance with Section 59-2-1017 , or prepares a written or oral consultation report, may not
309 refer to the price estimate, property tax information, or consultation report as an appraisal, an
310 appraisal report, or in any manner that may be interpreted as referring to an appraisal or an
311 appraisal report.

[Bill Documents]