First Substitute S.B. 244

Senator Aaron Osmond proposes the following substitute bill:


             1     
MODIFICATIONS TO PROPERTY TAX

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Aaron Osmond

             5     
House Sponsor: Eric K. Hutchings

             6     
             7      LONG TITLE
             8      General Description:
             9           This bill amends provisions related to certain property tax notices.
             10      Highlighted Provisions:
             11          This bill:
             12          .    addresses the contents of certain property tax notices;
             13          .    authorizes a county treasurer to provide certain property tax notices by electronic
             14      mail under certain circumstances if a taxpayer elects to receive the property tax
             15      notice by electronic mail; and
             16          .    makes technical and conforming changes.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23           59-2-327 , as last amended by Laws of Utah 1997, Chapter 360
             24           59-2-506 , as last amended by Laws of Utah 2013, Chapter 322
             25           59-2-913 , as last amended by Laws of Utah 2008, Chapters 61, 231, and 236


             26           59-2-924.1 , as enacted by Laws of Utah 1997, Chapter 53
             27           59-2-1317 , as last amended by Laws of Utah 2013, Chapter 265
             28           59-2-1331 , as last amended by Laws of Utah 2010, Chapter 63
             29           59-2-1705 , as enacted by Laws of Utah 2012, Chapter 197
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 59-2-327 is amended to read:
             33           59-2-327. Assessment roll -- Taxes charged to county treasurer.
             34          (1) The county auditor shall deliver the assessment roll, with the taxes extended, all
             35      orders of the county board of equalization and commission posted, and all relief granted, prior
             36      to the time prescribed in Section 59-2-1317 for [mailing] providing the original tax notice, to
             37      the county treasurer, together with a report of the accumulated total, which shall be considered
             38      to be a preliminary taxes charged amount. [On]
             39          (2) After delivering the corrected assessment roll to the county treasurer, under Section
             40      59-2-326 , the county auditor shall charge the treasurer with the full amount of taxes levied,
             41      except the taxes of rail car companies and state-assessed commercial vehicles, in an account
             42      established for the purpose.
             43          (3) The county auditor shall either report the final taxes charged or report the
             44      adjustments in taxable value and tax amounts from the preliminary taxes charged amount to the
             45      county treasurer for use in settling with all taxing entities under Section 59-2-1365 .
             46          Section 2. Section 59-2-506 is amended to read:
             47           59-2-506. Rollback tax -- Penalty -- Computation of tax -- Procedure -- Lien --
             48      Interest -- Notice -- Collection -- Distribution -- Appeal to county board of equalization.
             49          (1) Except as provided in this section, Section 59-2-506.5 , or Section 59-2-511 , if land
             50      is withdrawn from this part, the land is subject to a rollback tax imposed in accordance with
             51      this section.
             52          (2) (a) An owner shall notify the county assessor that land is withdrawn from this part
             53      within 120 days after the day on which the land is withdrawn from this part.
             54          (b) An owner that fails to notify the county assessor under Subsection (2)(a) that land is
             55      withdrawn from this part is subject to a penalty equal to the greater of:
             56          (i) $10; or


             57          (ii) 2% of the rollback tax due for the last year of the rollback period.
             58          (3) (a) The county assessor shall determine the amount of the rollback tax by
             59      computing the difference for the rollback period described in Subsection (3)(b) between:
             60          (i) the tax paid while the land was assessed under this part; and
             61          (ii) the tax that would have been paid had the property not been assessed under this
             62      part.
             63          (b) For purposes of this section, the rollback period is a time period that:
             64          (i) begins on the later of:
             65          (A) the date the land is first assessed under this part; or
             66          (B) five years preceding the day on which the county assessor mails the notice required
             67      by Subsection (5); and
             68          (ii) ends the day on which the county assessor mails the notice required by Subsection
             69      (5).
             70          (4) (a) The county treasurer shall:
             71          (i) collect the rollback tax; and
             72          (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
             73      on the property has been satisfied by:
             74          (A) preparing a document that certifies that the rollback tax lien on the property has
             75      been satisfied; and
             76          (B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
             77      for recordation.
             78          (b) The rollback tax collected under this section shall:
             79          (i) be paid into the county treasury; and
             80          (ii) be paid by the county treasurer to the various taxing entities pro rata in accordance
             81      with the property tax levies for the current year.
             82          (5) (a) The county assessor shall mail to an owner of the land that is subject to a
             83      rollback tax a notice that:
             84          (i) the land is withdrawn from this part;
             85          (ii) the land is subject to a rollback tax under this section; and
             86          (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
             87      30 days after the day on which the county assessor mails the notice.


             88          (b) (i) The rollback tax is due and payable on the day the county assessor mails the
             89      notice required by Subsection (5)(a).
             90          (ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
             91      is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
             92      the county assessor mails the notice required by Subsection (5)(a).
             93          (6) (a) Subject to Subsection (6)(b), the following are a lien on the land assessed under
             94      this part:
             95          (i) the rollback tax; and
             96          (ii) interest imposed in accordance with Subsection (7).
             97          (b) The lien described in Subsection (6)(a) shall:
             98          (i) arise upon the imposition of the rollback tax under this section;
             99          (ii) end on the day on which the rollback tax and interest imposed in accordance with
             100      Subsection (7) are paid in full; and
             101          (iii) relate back to the first day of the rollback period described in Subsection (3)(b).
             102          (7) (a) A delinquent rollback tax under this section shall accrue interest:
             103          (i) from the date of delinquency until paid; and
             104          (ii) at the interest rate established under Section 59-2-1331 and in effect on January 1
             105      of the year in which the delinquency occurs.
             106          (b) A rollback tax that is delinquent on September 1 of any year shall be included on
             107      the notice required by Section 59-2-1317 , along with interest calculated on that delinquent
             108      amount through November 30 of the year in which the county treasurer provides the notice
             109      under Section 59-2-1317 [is mailed].
             110          (8) (a) Land that becomes ineligible for assessment under this part only as a result of an
             111      amendment to this part is not subject to the rollback tax if the owner of the land notifies the
             112      county assessor that the land is withdrawn from this part in accordance with Subsection (2).
             113          (b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
             114      an event other than an amendment to this part, whether voluntary or involuntary, is subject to
             115      the rollback tax.
             116          (9) Except as provided in Section 59-2-511 , land that becomes exempt from taxation
             117      under Utah Constitution Article XIII, Section 3, is not subject to the rollback tax if the land
             118      meets the requirements of Section 59-2-503 to be assessed under this part.


             119          (10) Land that becomes ineligible for assessment under this part only as a result of a
             120      split estate mineral rights owner exercising the right to extract a mineral is not subject to the
             121      rollback tax:
             122          (a) (i) for the portion of the land required by a split estate mineral rights owner to
             123      extract a mineral if, after the split estate mineral rights owner exercises the right to extract a
             124      mineral, the portion of the property that remains in agricultural production still meets the
             125      acreage requirements of Section 59-2-503 for assessment under this part; or
             126          (ii) for the entire acreage that would otherwise qualify for assessment under this part if,
             127      after the split estate mineral rights owner exercises the right to extract a mineral, the entire
             128      acreage that would otherwise qualify for assessment under this part no longer meets the acreage
             129      requirements of Section 59-2-503 for assessment under this part only due to the extraction of
             130      the mineral by the split estate mineral rights owner; and
             131          (b) for the period of time that the property described in Subsection (10)(a) is ineligible
             132      for assessment under this part due to the extraction of a mineral by the split estate mineral
             133      rights owner.
             134          (11) (a) Subject to Subsection (11)(b), an owner of land may appeal to the county
             135      board of equalization:
             136          (i) a decision by a county assessor to withdraw land from assessment under this part; or
             137          (ii) the imposition of a rollback tax under this section.
             138          (b) An owner shall file an appeal under Subsection (11)(a) no later than 45 days after
             139      the day on which the county assessor mails the notice required by Subsection (5).
             140          Section 3. Section 59-2-913 is amended to read:
             141           59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
             142      statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
             143      establishing tax levies -- Format of statement.
             144          (1) As used in this section, "budgeted property tax revenues" does not include property
             145      tax revenue received by a taxing entity from personal property that is:
             146          (a) assessed by a county assessor in accordance with Part 3, County Assessment; and
             147          (b) semiconductor manufacturing equipment.
             148          (2) (a) The legislative body of each taxing entity shall file a statement as provided in
             149      this section with the county auditor of the county in which the taxing entity is located.


             150          (b) The auditor shall annually transmit the statement to the commission:
             151          (i) before June 22; or
             152          (ii) with the approval of the commission, on a subsequent date prior to the date
             153      [established] required by Section 59-2-1317 for the county treasurer to provide the notice under
             154      Section 59-2-1317 [for mailing tax notices].
             155          (c) The statement shall contain the amount and purpose of each levy fixed by the
             156      legislative body of the taxing entity.
             157          (3) For purposes of establishing the levy set for each of a taxing entity's applicable
             158      funds, the legislative body of the taxing entity shall calculate an amount determined by dividing
             159      the budgeted property tax revenues, specified in a budget which has been adopted and
             160      approved prior to setting the levy, by the amount calculated under Subsections
             161      59-2-924 (3)(c)(ii)(A) through (C).
             162          (4) The format of the statement under this section shall:
             163          (a) be determined by the commission; and
             164          (b) cite any applicable statutory provisions that:
             165          (i) require a specific levy; or
             166          (ii) limit the property tax levy for any taxing entity.
             167          (5) The commission may require certification that the information submitted on a
             168      statement under this section is true and correct.
             169          Section 4. Section 59-2-924.1 is amended to read:
             170           59-2-924.1. Definitions -- Commission authorized to adjust taxing entity's
             171      certified rate for clerical error -- Requirements -- Amount of adjustment.
             172          (1) For purposes of this section:
             173          (a) "Clerical error" means the following in an assessment roll:
             174          (i) an omission;
             175          (ii) an error; or
             176          (iii) a defect in form.
             177          (b) "Year" means the period beginning on January 1 and ending on December 31
             178      during which there is a clerical error on the taxing entity's assessment roll.
             179          (2) The commission shall adjust a taxing entity's certified tax rate as provided in
             180      Subsection (3) if the county legislative body in which the taxing entity is located certifies to the


             181      commission in writing that:
             182          (a) the taxing entity's assessment roll contained a clerical error;
             183          (b) the county adjusted the clerical error on the assessment roll;
             184          (c) the taxing entity's actual collections for the year were different than the taxing
             185      entity's budgeted collections for the year; and
             186          (d) the taxing entity notified the county legislative body of the clerical error after the
             187      county treasurer [mailed] provided the tax notices under Section 59-2-1317 , but no later than
             188      60 days after the day on which the county treasurer made the final annual settlement with the
             189      taxing entity under Section 59-2-1365 .
             190          (3) (a) The adjustment under Subsection (2) is an amount equal to the lesser of:
             191          (i) the difference between the taxing entity's budgeted collections for the year and the
             192      taxing entity's actual collections for the year; or
             193          (ii) the amount of the clerical error.
             194          (b) The commission shall make an adjustment under Subsection (2) no later than 90
             195      days after the day on which the county treasurer made the final annual settlement with the
             196      taxing entity under Section 59-2-1365 .
             197          Section 5. Section 59-2-1317 is amended to read:
             198           59-2-1317. Tax notice -- Contents of notice -- Procedures and requirements for
             199      providing notice.
             200          (1) [The] Subject to the other provisions of this section, the county treasurer shall:
             201          (a) collect the taxes; and
             202          (b) [furnish] provide a notice to each taxpayer[, except those taxpayers under Sections
             203      59-2-1302 and 59-2-1307 , by mail, postage prepaid, or leave at the taxpayer's residence or
             204      usual place of business, if known, a notice stating] that contains the following:
             205          (i) the kind and value of property assessed to the taxpayer;
             206          (ii) the street address of the property, if available to the county;
             207          (iii) that the property may be subject to a detailed review in the next year under Section
             208      59-2-303.1 ;
             209          (iv) the amount of taxes levied;
             210          (v) a separate statement of the taxes levied only on a certain kind or class of property
             211      for a special purpose;


             212          [(v)] (vi) property tax information pertaining to taxpayer relief, options for payment of
             213      taxes, and collection procedures;
             214          [(vi)] (vii) if applicable, the amount of an assessment assessed in accordance with
             215      Section 11-42-401 ;
             216          (viii) the date the taxes are due;
             217          (ix) the street address at which the taxes may be paid;
             218          (x) the date on which the taxes are delinquent;
             219          (xi) the penalty imposed on delinquent taxes;
             220          [(vii)] (xii) other information specifically authorized to be included on the notice under
             221      [Title 59, Chapter 2, Property Tax Act] this chapter; and
             222          [(viii)] (xiii) other property tax information approved by the commission.
             223          (2) For any property for which property taxes are delinquent, [the treasurer shall stamp
             224      on] the notice described in Subsection (1) shall state, "Prior taxes are delinquent on this
             225      parcel."
             226          [(3) The notice shall:]
             227          [(a) separately state all taxes levied only on a certain kind or class of property for a
             228      special purpose;]
             229          [(b) have printed or stamped on it when and where the taxes are payable;]
             230          [(c) state the date on which the taxes will be delinquent; and]
             231          [(d) state the penalty provided by law.]
             232          [(4) (a) The notice shall be mailed by November 1.]
             233          (3) Except as provided in Subsection (4), the county treasurer shall:
             234          (a) mail the notice required by this section, postage prepaid; or
             235          (b) leave the notice required by this section at the taxpayer's residence or usual place of
             236      business, if known.
             237          (4) (a) Subject to the other provisions of this Subsection (4), a county treasurer may, at
             238      the county treasurer's discretion, provide the notice required by this section by electronic mail if
             239      a taxpayer makes an election, according to procedures determined by the county treasurer, to
             240      receive the notice by electronic mail.
             241          (b) A taxpayer may revoke an election to receive the notice required by this section by
             242      electronic mail if the taxpayer provides written notice to the treasurer on or before October 1.


             243          (c) A revocation of an election under this section does not relieve a taxpayer of the
             244      duty to pay a tax due under this chapter on or before the due date for paying the tax.
             245          (d) A county treasurer shall provide the notice required by this section using a method
             246      described in Subsection (3), until a taxpayer makes a new election in accordance with this
             247      Subsection (4), if:
             248          (i) the taxpayer revokes an election in accordance with Subsection (4)(b) to receive the
             249      notice required by this section by electronic mail; or
             250          (ii) the county treasurer finds that the taxpayer's electronic mail address is invalid.
             251          (e) A person is considered to be taxpayer for purposes of this Subsection (4) regardless
             252      of whether the property that is the subject of the notice required by this section is exempt from
             253      taxation.
             254          (5) (a) The county treasurer shall provide the notice required by this section to a
             255      taxpayer on or before November 1.
             256          (b) The county treasurer shall keep on file in the county treasurer's office the
             257      information set forth in the notice.
             258          (c) The county treasurer is not required to mail [out] a tax receipt acknowledging
             259      payment.
             260          (6) This section does not apply to property taxed under Section 59-2-1302 or
             261      59-2-1307 .
             262          Section 6. Section 59-2-1331 is amended to read:
             263           59-2-1331. Date tax is delinquent -- Penalty -- Interest -- Payments -- Refund of
             264      prepayment.
             265          (1) (a) Except as provided in Subsection (1)(b), all taxes, unless otherwise specifically
             266      provided for under Section 59-2-1332 , or other law, unpaid or postmarked after November 30
             267      of each year following the date of levy, are delinquent, and the county treasurer shall close the
             268      treasurer's office for the posting of current year tax payments until a delinquent list has been
             269      prepared.
             270          (b) Notwithstanding Subsection (1)(a), if November 30 falls on a Saturday, Sunday, or
             271      holiday:
             272          (i) the date of the next following day that is not a Saturday, Sunday, or holiday shall be
             273      substituted in Subsection (1)(a) and Subsection 59-2-1332 (1) for November 30; and


             274          (ii) the date of the day occurring 30 days after the date under Subsection (1)(b)(i) shall
             275      be substituted in Subsection 59-2-1332 (1) for December 30.
             276          (2) (a) Except as provided in Subsection (2)(e), for each parcel, all delinquent taxes on
             277      each separately assessed parcel are subject to a penalty of 2.5% of the amount of the delinquent
             278      taxes or $10, whichever is greater.
             279          (b) Unless the delinquent taxes, together with the penalty, are paid on or before January
             280      31, the amount of taxes and penalty shall bear interest on a per annum basis from the January 1
             281      immediately following the delinquency date.
             282          (c) Except as provided in Subsection (2)(d), for purposes of Subsection (2)(b), the
             283      interest rate is equal to the sum of:
             284          (i) 6%; and
             285          (ii) the federal funds rate target:
             286          (A) established by the Federal Open Markets Committee; and
             287          (B) that exists on the January 1 immediately following the date of delinquency.
             288          (d) The interest rate described in Subsection (2)(c) may not be:
             289          (i) less than 7%; or
             290          (ii) more than 10%.
             291          (e) The penalty described in Subsection (2)(a) is 1% of the amount of the delinquent
             292      taxes or $10, whichever is greater, if all delinquent taxes and the penalty are paid on or before
             293      the January 31 immediately following the delinquency date.
             294          (3) If the delinquency exceeds one year, the amount of taxes and penalties for that year
             295      and all succeeding years shall bear interest until settled in full through redemption or tax sale.
             296      The interest rate to be applied shall be calculated for each year as established under Subsection
             297      (2) and shall apply on each individual year's delinquency until paid.
             298          (4) The county treasurer may accept and credit on account against taxes becoming due
             299      during the current year, at any time before or after the tax rates are adopted, but not subsequent
             300      to the date of delinquency, either:
             301          (a) payments in amounts of not less than $10; or
             302          (b) the full amount of the unpaid tax.
             303          (5) (a) At any time before the county treasurer [mails] provides the tax notice described
             304      in Section 59-2-1317 , the county treasurer may refund amounts accepted and credited on


             305      account against taxes becoming due during the current year.
             306          (b) Upon recommendation by the county treasurer, the county legislative body shall
             307      adopt rules or ordinances to implement the provisions of this Subsection (5).
             308          Section 7. Section 59-2-1705 is amended to read:
             309           59-2-1705. Rollback tax -- Penalty -- Computation of tax -- Procedure -- Lien --
             310      Interest -- Notice -- Collection -- Distribution -- Appeal to county board of equalization.
             311          (1) Except as provided in this section or Section 59-2-1710 , land that is withdrawn
             312      from this part is subject to a rollback tax imposed as provided in this section.
             313          (2) (a) An owner shall notify the county assessor that land is withdrawn from this part
             314      within 120 days after the day on which the land is withdrawn from this part.
             315          (b) An owner who fails to notify the county assessor under Subsection (2)(a) that land
             316      is withdrawn from this part is subject to a penalty equal to the greater of:
             317          (i) $10; or
             318          (ii) 2% of the rollback tax due for the last year of the rollback period.
             319          (3) (a) The county assessor shall determine the amount of the rollback tax by
             320      computing the difference for the rollback period described in Subsection (3)(b) between:
             321          (i) the tax paid while the land was assessed under this part; and
             322          (ii) the tax that would have been paid had the property not been assessed under this
             323      part.
             324          (b) For purposes of this section, the rollback period is a time period that:
             325          (i) begins on the later of:
             326          (A) the date the land is first assessed under this part; or
             327          (B) 10 years preceding the day on which the county assessor mails the notice required
             328      by Subsection (5); and
             329          (ii) ends the day on which the county assessor mails the notice required by Subsection
             330      (5).
             331          (4) (a) The county treasurer shall:
             332          (i) collect the rollback tax; and
             333          (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
             334      on the property has been satisfied by:
             335          (A) preparing a document that certifies that the rollback tax lien on the property has


             336      been satisfied; and
             337          (B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
             338      for recording.
             339          (b) The rollback tax collected under this section shall:
             340          (i) be paid into the county treasury; and
             341          (ii) be paid by the county treasurer to the various taxing entities pro rata in accordance
             342      with the property tax levies for the current year.
             343          (5) (a) The county assessor shall mail to an owner of the land that is subject to a
             344      rollback tax a notice that:
             345          (i) the land is withdrawn from this part;
             346          (ii) the land is subject to a rollback tax under this section; and
             347          (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
             348      30 days after the day on which the county assessor mails the notice.
             349          (b) (i) The rollback tax is due and payable on the day the county assessor mails the
             350      notice required by Subsection (5)(a).
             351          (ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
             352      is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
             353      the county assessor mails the notice required by Subsection (5)(a).
             354          (6) (a) Subject to Subsection (6)(b), the rollback tax and interest imposed under
             355      Subsection (7) are a lien on the land assessed under this part.
             356          (b) The lien described in Subsection (6)(a) shall:
             357          (i) arise upon the imposition of the rollback tax under this section;
             358          (ii) end on the day on which the rollback tax and interest imposed under Subsection (7)
             359      are paid in full; and
             360          (iii) relate back to the first day of the rollback period described in Subsection (3)(b).
             361          (7) (a) A delinquent rollback tax under this section shall accrue interest:
             362          (i) from the date of delinquency until paid; and
             363          (ii) at the interest rate established under Section 59-2-1331 and in effect on January 1
             364      of the year in which the delinquency occurs.
             365          (b) A rollback tax that is delinquent on September 1 of any year shall be included on
             366      the notice required by Section 59-2-1317 , along with interest calculated on that delinquent


             367      amount through November 30 of the year in which the county treasurer provides the notice
             368      under Section 59-2-1317 [is mailed].
             369          (8) (a) Land that becomes ineligible for assessment under this part only as a result of an
             370      amendment to this part is not subject to the rollback tax if the owner of the land notifies the
             371      county assessor that the land is withdrawn from this part in accordance with Subsection (2).
             372          (b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
             373      an event other than an amendment to this part, whether voluntary or involuntary, is subject to
             374      the rollback tax.
             375          (9) Except as provided in Section 59-2-1710 , land that becomes exempt from taxation
             376      under Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land
             377      meets the requirements of Section 59-2-1703 to be assessed under this part.
             378          (10) (a) Subject to Subsection (10)(b), an owner of land may appeal to the county
             379      board of equalization:
             380          (i) a decision by a county assessor to withdraw land from assessment under this part; or
             381          (ii) the imposition of a rollback tax under this section.
             382          (b) An owner shall file an appeal under Subsection (10)(a) no later than 45 days after
             383      the day on which the county assessor mails the notice required by Subsection (5).


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