1     
SUBDIVISION BASE PARCEL TAX AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: R. Curt Webb

5     
Senate Sponsor: Daniel W. Thatcher

6     

7     LONG TITLE
8     Committee Note:
9          The Political Subdivisions Interim Committee recommended this bill.
10     General Description:
11          This bill modifies provisions of the Property Tax Act relating to subdivided lots.
12     Highlighted Provisions:
13          This bill:
14          ▸     defines terms;
15          ▸     addresses the payment of property tax on a base parcel that is subdivided into one or
16     more parcels;
17          ▸     modifies the requirements for a notice of property tax delinquency;
18          ▸     describes the procedure by which an owner of a portion of a base parcel whose
19     property tax is delinquent may redeem the owner's portion of the base parcel; and
20          ▸     makes technical and conforming changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          59-2-102, as last amended by Laws of Utah 2015, Chapters 133, 198, and 287
28          59-2-1332.5, as last amended by Laws of Utah 2015, Chapter 201
29          59-2-1346, as last amended by Laws of Utah 1995, Chapter 181
30          59-7-302, as last amended by Laws of Utah 2014, Chapters 65 and 398
31     ENACTS:
32          59-2-1331.5, Utah Code Annotated 1953
33     

34     Be it enacted by the Legislature of the state of Utah:
35          Section 1. Section 59-2-102 is amended to read:
36          59-2-102. Definitions.
37          As used in this chapter and title:
38          (1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
39     engaging in dispensing activities directly affecting agriculture or horticulture with an
40     airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
41     rotorcraft's use for agricultural and pest control purposes.
42          (2) "Air charter service" means an air carrier operation which requires the customer to
43     hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
44     trip.
45          (3) "Air contract service" means an air carrier operation available only to customers
46     who engage the services of the carrier through a contractual agreement and excess capacity on
47     any trip and is not available to the public at large.
48          (4) "Aircraft" is as defined in Section 72-10-102.
49          (5) (a) Except as provided in Subsection (5)(b), "airline" means an air carrier that:
50          (i) operates:
51          (A) on an interstate route; and
52          (B) on a scheduled basis; and
53          (ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
54     regularly scheduled route.
55          (b) "Airline" does not include an:
56          (i) air charter service; or
57          (ii) air contract service.
58          (6) "Assessment roll" means a permanent record of the assessment of property as
59     assessed by the county assessor and the commission and may be maintained manually or as a
60     computerized file as a consolidated record or as multiple records by type, classification, or
61     categories.
62          (7) "Base parcel" means a parcel of property that was legally:
63          (a) subdivided into two or more lots, parcels, or other divisions of land; or
64          (b) (i) combined with one or more other parcels of property; and
65          (ii) subdivided into two or more lots, parcels, or other divisions of land.
66          [(7)] (8) (a) "Certified revenue levy" means a property tax levy that provides an amount
67     of ad valorem property tax revenue equal to the sum of:
68          (i) the amount of ad valorem property tax revenue to be generated statewide in the
69     previous year from imposing a school minimum basic tax rate, as specified in Section
70     53A-17a-135, or multicounty assessing and collecting levy, as specified in Section 59-2-1602;
71     and
72          (ii) the product of:
73          (A) new growth, as defined in:
74          (I) Section 59-2-924; and
75          (II) rules of the commission; and
76          (B) the school minimum basic tax rate or multicounty assessing and collecting levy
77     certified by the commission for the previous year.
78          (b) For purposes of this Subsection [(7)] (8), "ad valorem property tax revenue" does
79     not include property tax revenue received by a taxing entity from personal property that is:
80          (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
81          (ii) semiconductor manufacturing equipment.
82          (c) For purposes of calculating the certified revenue levy described in this Subsection
83     [(7)] (8), the commission shall use:
84          (i) the taxable value of real property assessed by a county assessor contained on the
85     assessment roll;
86          (ii) the taxable value of real and personal property assessed by the commission; and
87          (iii) the taxable year end value of personal property assessed by a county assessor
88     contained on the prior year's assessment roll.
89          [(8)] (9) "County-assessed commercial vehicle" means:
90          (a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
91     Section 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or
92     property in furtherance of the owner's commercial enterprise;
93          (b) any passenger vehicle owned by a business and used by its employees for
94     transportation as a company car or vanpool vehicle; and
95          (c) vehicles that are:
96          (i) especially constructed for towing or wrecking, and that are not otherwise used to
97     transport goods, merchandise, or people for compensation;
98          (ii) used or licensed as taxicabs or limousines;
99          (iii) used as rental passenger cars, travel trailers, or motor homes;
100          (iv) used or licensed in this state for use as ambulances or hearses;
101          (v) especially designed and used for garbage and rubbish collection; or
102          (vi) used exclusively to transport students or their instructors to or from any private,
103     public, or religious school or school activities.
104          [(9)] (10) (a) Except as provided in Subsection [(9)] (10)(b), for purposes of Section
105     59-2-801, "designated tax area" means a tax area created by the overlapping boundaries of only
106     the following taxing entities:
107          (i) a county; and
108          (ii) a school district.
109          (b) Notwithstanding Subsection [(9)] (10)(a), "designated tax area" includes a tax area
110     created by the overlapping boundaries of:
111          (i) the taxing entities described in Subsection [(9)] (10)(a); and
112          (ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
113     and the boundaries of the city or town are identical; or
114          (B) a special service district if the boundaries of the school district under Subsection
115     [(9)] (10)(a) are located entirely within the special service district.
116          [(10)] (11) "Eligible judgment" means a final and unappealable judgment or order
117     under Section 59-2-1330:
118          (a) that became a final and unappealable judgment or order no more than 14 months
119     prior to the day on which the notice required by Section 59-2-919.1 is required to be mailed;
120     and
121          (b) for which a taxing entity's share of the final and unappealable judgment or order is
122     greater than or equal to the lesser of:
123          (i) $5,000; or
124          (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
125     previous fiscal year.
126          [(11)] (12) (a) "Escaped property" means any property, whether personal, land, or any
127     improvements to the property, subject to taxation and is:
128          (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
129     to the wrong taxpayer by the assessing authority;
130          (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
131     comply with the reporting requirements of this chapter; or
132          (iii) undervalued because of errors made by the assessing authority based upon
133     incomplete or erroneous information furnished by the taxpayer.
134          (b) Property that is undervalued because of the use of a different valuation
135     methodology or because of a different application of the same valuation methodology is not
136     "escaped property."
137          [(12)] (13) "Fair market value" means the amount at which property would change
138     hands between a willing buyer and a willing seller, neither being under any compulsion to buy
139     or sell and both having reasonable knowledge of the relevant facts. For purposes of taxation,
140     "fair market value" shall be determined using the current zoning laws applicable to the property
141     in question, except in cases where there is a reasonable probability of a change in the zoning
142     laws affecting that property in the tax year in question and the change would have an
143     appreciable influence upon the value.
144          [(13)] (14) "Farm machinery and equipment," for purposes of the exemption provided
145     under Section 59-2-1101, means tractors, milking equipment and storage and cooling facilities,
146     feed handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters,
147     tillage tools, scales, combines, spreaders, sprayers, haying equipment, including balers and
148     cubers, and any other machinery or equipment used primarily for agricultural purposes; but
149     does not include vehicles required to be registered with the Motor Vehicle Division or vehicles
150     or other equipment used for business purposes other than farming.
151          [(14)] (15) "Geothermal fluid" means water in any form at temperatures greater than
152     120 degrees centigrade naturally present in a geothermal system.
153          [(15)] (16) "Geothermal resource" means:
154          (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
155     and
156          (b) the energy, in whatever form, including pressure, present in, resulting from, created
157     by, or which may be extracted from that natural heat, directly or through a material medium.
158          [(16)] (17) (a) "Goodwill" means:
159          (i) acquired goodwill that is reported as goodwill on the books and records:
160          (A) of a taxpayer; and
161          (B) that are maintained for financial reporting purposes; or
162          (ii) the ability of a business to:
163          (A) generate income:
164          (I) that exceeds a normal rate of return on assets; and
165          (II) resulting from a factor described in Subsection [(16)] (17)(b); or
166          (B) obtain an economic or competitive advantage resulting from a factor described in
167     Subsection [(16)] (17)(b).
168          (b) The following factors apply to Subsection [(16)] (17)(a)(ii):
169          (i) superior management skills;
170          (ii) reputation;
171          (iii) customer relationships;
172          (iv) patronage; or
173          (v) a factor similar to Subsections [(16)] (17)(b)(i) through (iv).
174          (c) "Goodwill" does not include:
175          (i) the intangible property described in Subsection [(20)] (21)(a) or (b);
176          (ii) locational attributes of real property, including:
177          (A) zoning;
178          (B) location;
179          (C) view;
180          (D) a geographic feature;
181          (E) an easement;
182          (F) a covenant;
183          (G) proximity to raw materials;
184          (H) the condition of surrounding property; or
185          (I) proximity to markets;
186          (iii) value attributable to the identification of an improvement to real property,
187     including:
188          (A) reputation of the designer, builder, or architect of the improvement;
189          (B) a name given to, or associated with, the improvement; or
190          (C) the historic significance of an improvement; or
191          (iv) the enhancement or assemblage value specifically attributable to the interrelation
192     of the existing tangible property in place working together as a unit.
193          [(17)] (18) "Governing body" means:
194          (a) for a county, city, or town, the legislative body of the county, city, or town;
195          (b) for a local district under Title 17B, Limited Purpose Local Government Entities -
196     Local Districts, the local district's board of trustees;
197          (c) for a school district, the local board of education; or
198          (d) for a special service district under Title 17D, Chapter 1, Special Service District
199     Act:
200          (i) the legislative body of the county or municipality that created the special service
201     district, to the extent that the county or municipal legislative body has not delegated authority
202     to an administrative control board established under Section 17D-1-301; or
203          (ii) the administrative control board, to the extent that the county or municipal
204     legislative body has delegated authority to an administrative control board established under
205     Section 17D-1-301.
206          [(18)] (19) (a) For purposes of Section 59-2-103:
207          (i) "household" means the association of persons who live in the same dwelling,
208     sharing its furnishings, facilities, accommodations, and expenses; and
209          (ii) "household" includes married individuals, who are not legally separated, that have
210     established domiciles at separate locations within the state.
211          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
212     commission may make rules defining the term "domicile."
213          [(19)] (20) (a) Except as provided in Subsection [(19)] (20)(c), "improvement" means a
214     building, structure, fixture, fence, or other item that is permanently attached to land, regardless
215     of whether the title has been acquired to the land, if:
216          (i) (A) attachment to land is essential to the operation or use of the item; and
217          (B) the manner of attachment to land suggests that the item will remain attached to the
218     land in the same place over the useful life of the item; or
219          (ii) removal of the item would:
220          (A) cause substantial damage to the item; or
221          (B) require substantial alteration or repair of a structure to which the item is attached.
222          (b) "Improvement" includes:
223          (i) an accessory to an item described in Subsection [(19)] (20)(a) if the accessory is:
224          (A) essential to the operation of the item described in Subsection [(19)] (20)(a); and
225          (B) installed solely to serve the operation of the item described in Subsection [(19)]
226     (20)(a); and
227          (ii) an item described in Subsection [(19)] (20)(a) that:
228          (A) is temporarily detached from the land for repairs; and
229          (B) remains located on the land.
230          (c) Notwithstanding Subsections [(19)] (20)(a) and (b), "improvement" does not
231     include:
232          (i) an item considered to be personal property pursuant to rules made in accordance
233     with Section 59-2-107;
234          (ii) a moveable item that is attached to land:
235          (A) for stability only; or
236          (B) for an obvious temporary purpose;
237          (iii) (A) manufacturing equipment and machinery; or
238          (B) essential accessories to manufacturing equipment and machinery;
239          (iv) an item attached to the land in a manner that facilitates removal without substantial
240     damage to:
241          (A) the land; or
242          (B) the item; or
243          (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
244     transportable factory-built housing unit is considered to be personal property under Section
245     59-2-1503.
246          [(20)] (21) "Intangible property" means:
247          (a) property that is capable of private ownership separate from tangible property,
248     including:
249          (i) money;
250          (ii) credits;
251          (iii) bonds;
252          (iv) stocks;
253          (v) representative property;
254          (vi) franchises;
255          (vii) licenses;
256          (viii) trade names;
257          (ix) copyrights; and
258          (x) patents;
259          (b) a low-income housing tax credit;
260          (c) goodwill; or
261          (d) a renewable energy tax credit or incentive, including:
262          (i) a federal renewable energy production tax credit under Section 45, Internal Revenue
263     Code;
264          (ii) a federal energy credit for qualified renewable electricity production facilities under
265     Section 48, Internal Revenue Code;
266          (iii) a federal grant for a renewable energy property under American Recovery and
267     Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
268          (iv) a tax credit under Subsection 59-7-614(5).
269          [(21)] (22) "Livestock" means:
270          (a) a domestic animal;
271          (b) a fish;
272          (c) a fur-bearing animal;
273          (d) a honeybee; or
274          (e) poultry.
275          [(22)] (23) "Low-income housing tax credit" means:
276          (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
277     or
278          (b) a low-income housing tax credit under:
279          (i) Section 59-7-607; or
280          (ii) Section 59-10-1010.
281          [(23)] (24) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and
282     uranium.
283          [(24)] (25) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
284     valuable mineral.
285          [(25)] (26) "Mining" means the process of producing, extracting, leaching, evaporating,
286     or otherwise removing a mineral from a mine.
287          [(26)] (27) (a) "Mobile flight equipment" means tangible personal property that is:
288          (i) owned or operated by an:
289          (A) air charter service;
290          (B) air contract service; or
291          (C) airline; and
292          (ii) (A) capable of flight;
293          (B) attached to an aircraft that is capable of flight; or
294          (C) contained in an aircraft that is capable of flight if the tangible personal property is
295     intended to be used:
296          (I) during multiple flights;
297          (II) during a takeoff, flight, or landing; and
298          (III) as a service provided by an air charter service, air contract service, or airline.
299          (b) (i) "Mobile flight equipment" does not include a spare part other than a spare
300     engine that is rotated:
301          (A) at regular intervals; and
302          (B) with an engine that is attached to the aircraft.
303          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
304     commission may make rules defining the term "regular intervals."
305          [(27)] (28) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal,
306     salts, sand, rock, gravel, and all carboniferous materials.
307          [(28)] (29) "Part-year residential property" means property that is not residential
308     property on January 1 of a calendar year but becomes residential property after January 1 of the
309     calendar year.
310          [(29)] (30) "Personal property" includes:
311          (a) every class of property as defined in Subsection [(30)] (31) that is the subject of
312     ownership and not included within the meaning of the terms "real estate" and "improvements";
313          (b) gas and water mains and pipes laid in roads, streets, or alleys;
314          (c) bridges and ferries;
315          (d) livestock; and
316          (e) outdoor advertising structures as defined in Section 72-7-502.
317          [(30)] (31) (a) "Property" means property that is subject to assessment and taxation
318     according to its value.
319          (b) "Property" does not include intangible property as defined in this section.
320          [(31)] (32) "Public utility," for purposes of this chapter, means the operating property
321     of a railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
322     company, electrical corporation, telephone corporation, sewerage corporation, or heat
323     corporation where the company performs the service for, or delivers the commodity to, the
324     public generally or companies serving the public generally, or in the case of a gas corporation
325     or an electrical corporation, where the gas or electricity is sold or furnished to any member or
326     consumers within the state for domestic, commercial, or industrial use. Public utility also
327     means the operating property of any entity or person defined under Section 54-2-1 except water
328     corporations.
329          [(32)] (33) (a) Subject to Subsection [(32)] (33)(b), "qualifying exempt primary
330     residential rental personal property" means household furnishings, furniture, and equipment
331     that:
332          (i) are used exclusively within a dwelling unit that is the primary residence of a tenant;
333          (ii) are owned by the owner of the dwelling unit that is the primary residence of a
334     tenant; and
335          (iii) after applying the residential exemption described in Section 59-2-103, are exempt
336     from taxation under this chapter in accordance with Subsection 59-2-1115(2).
337          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
338     commission may by rule define the term "dwelling unit" for purposes of this Subsection [(32)]
339     (33) and Subsection [(35)] (36).
340          [(33)] (34) "Real estate" or "real property" includes:
341          (a) the possession of, claim to, ownership of, or right to the possession of land;
342          (b) all mines, minerals, and quarries in and under the land, all timber belonging to
343     individuals or corporations growing or being on the lands of this state or the United States, and
344     all rights and privileges appertaining to these; and
345          (c) improvements.
346          [(34)] (35) "Relationship with an owner of the property's land surface rights" means a
347     relationship described in Subsection 267(b), Internal Revenue Code:
348          (a) except that notwithstanding Subsection 267(b), Internal Revenue Code, the term
349     25% shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code; and
350          (b) using the ownership rules of Subsection 267(c), Internal Revenue Code, for
351     determining the ownership of stock.
352          [(35)] (36) (a) Subject to Subsection [(35)] (36)(b), "residential property," for the
353     purposes of the reductions and adjustments under this chapter, means any property used for
354     residential purposes as a primary residence.
355          (b) Subject to Subsection [(35)] (36)(c), "residential property":
356          (i) except as provided in Subsection [(35)] (36)(b)(ii), includes household furnishings,
357     furniture, and equipment if the household furnishings, furniture, and equipment are:
358          (A) used exclusively within a dwelling unit that is the primary residence of a tenant;
359     and
360          (B) owned by the owner of the dwelling unit that is the primary residence of a tenant;
361     and
362          (ii) does not include property used for transient residential use.
363          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
364     commission may by rule define the term "dwelling unit" for purposes of Subsection [(32)] (33)
365     and this Subsection [(35)] (36).
366          [(36)] (37) "Split estate mineral rights owner" means a person who:
367          (a) has a legal right to extract a mineral from property;
368          (b) does not hold more than a 25% interest in:
369          (i) the land surface rights of the property where the wellhead is located; or
370          (ii) an entity with an ownership interest in the land surface rights of the property where
371     the wellhead is located;
372          (c) is not an entity in which the owner of the land surface rights of the property where
373     the wellhead is located holds more than a 25% interest; and
374          (d) does not have a relationship with an owner of the land surface rights of the property
375     where the wellhead is located.
376          [(37)] (38) (a) "State-assessed commercial vehicle" means:
377          (i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
378     to transport passengers, freight, merchandise, or other property for hire; or
379          (ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
380     transports the vehicle owner's goods or property in furtherance of the owner's commercial
381     enterprise.
382          (b) "State-assessed commercial vehicle" does not include vehicles used for hire which
383     are specified in Subsection [(8)] (9)(c) as county-assessed commercial vehicles.
384          (39) "Subdivided lot" means a lot, parcel, or other division of land, that is a division of
385     a base parcel.
386          [(38)] (40) "Taxable value" means fair market value less any applicable reduction
387     allowed for residential property under Section 59-2-103.
388          [(39)] (41) "Tax area" means a geographic area created by the overlapping boundaries
389     of one or more taxing entities.
390          [(40)] (42) "Taxing entity" means any county, city, town, school district, special taxing
391     district, local district under Title 17B, Limited Purpose Local Government Entities - Local
392     Districts, or other political subdivision of the state with the authority to levy a tax on property.
393          [(41)] (43) "Tax roll" means a permanent record of the taxes charged on property, as
394     extended on the assessment roll and may be maintained on the same record or records as the
395     assessment roll or may be maintained on a separate record properly indexed to the assessment
396     roll. It includes tax books, tax lists, and other similar materials.
397          Section 2. Section 59-2-1331.5 is enacted to read:
398          59-2-1331.5. Partial payment of property tax on a base parcel.
399          (1) (a) Subject to Subsection (1)(b), a person may make a payment toward a subdivided
400     lot's proportional share of the property tax on the base parcel before the date on which the
401     property tax is due.
402          (b) A person may make a payment under Subsection (1)(a) only if the record owner of
403     the subdivided lot is a bona fide purchaser.
404          (2) (a) Upon request, the county treasurer shall provide a person:
405          (i) the amount of a subdivided lot's proportional share of the property tax on the base
406     parcel for the current year; or
407          (ii) if the amount described in Subsection (2)(a)(i) is unavailable, a reasonable estimate
408     of a subdivided lot's proportional share of the property tax on the base parcel for the current
409     year.
410          (b) The county treasurer shall calculate a subdivided lot's proportional share of the
411     property tax on the base parcel by comparing:
412          (i) the amount of the value of the base parcel as described in Subsection (2)(b)(ii) that
413     is attributable to the property that comprises the subdivided lot as the property existed on
414     January 1 of the current year; and
415          (ii) the value of the base parcel as it existed on January 1 of the current year.
416          (3) (a) The county treasurer shall send a written notice described in Subsection (3)(b)
417     to the record owner of a subdivided lot if:
418          (i) a person makes a payment under Subsection (1) toward the subdivided lot's
419     proportional share of the property tax on the base parcel; and
420          (ii) as of November 30, there is an outstanding balance on the subdivided lot's
421     proportional share of the property tax on the base parcel.
422          (b) A written notice described in Subsection (3)(a) shall state:
423          (i) the remaining balance owed on the subdivided lot's proportional share of the
424     property tax on the base parcel;
425          (ii) a date, not less than 30 days after the day on which the notice is sent, by which the
426     remaining balance is due; and
427          (iii) that any amount of the balance that is not paid or postmarked by the date described
428     in Subsection (3)(b)(ii) is delinquent and subject to the penalties, interest, and administrative
429     costs described in this chapter.
430          (4) If a person timely pays a subdivided lot's proportional share of the property tax on
431     the base parcel, and the property tax on the base parcel subsequently becomes delinquent, the
432     subdivided lot is not subject to:
433          (a) a lien for the payment of the delinquent property tax on the base parcel; or
434          (b) any penalties, interest, or administrative costs associated with the delinquent
435     property tax on the base parcel.
436          Section 3. Section 59-2-1332.5 is amended to read:
437          59-2-1332.5. Mailing notice of delinquency or publication of delinquent list --
438     Contents -- Notice -- Definitions.
439          (1) The county treasurer shall provide notice of delinquency in the payment of property
440     taxes:
441          (a) except as provided in Subsection (4), on or before December 31 of each calendar
442     year; and
443          (b) in a manner described in Subsection (2).
444          (2) A notice of delinquency in the payment of property taxes shall be provided by:
445          (a) (i) mailing a written notice that includes the information described in Subsection
446     (3)(a), postage prepaid, to:
447          (A) [to] each delinquent taxpayer; and
448          (B) [that includes the information required by Subsection (3)(a)] if the delinquent
449     property taxes are assessed on a base parcel, the record owner of each subdivided lot; and
450          (ii) making available to the public a list of delinquencies in the payment of property
451     taxes:
452          (A) by electronic means; and
453          (B) that includes the information required by Subsection (3)(b); or
454          (b) publishing a list of delinquencies in the payment of property taxes:
455          (i) in one issue of a newspaper having general circulation in the county;
456          (ii) that lists each delinquency in alphabetical order by:
457          (A) the last name of the delinquent taxpayer; or
458          (B) if the delinquent taxpayer is a business entity, the name of the business entity; and
459          (iii) that includes the information [required by] described in Subsection (3)(b).
460          (3) (a) A written notice of delinquency in the payment of property taxes described in
461     Subsection (2)(a)(i) shall include:
462          (i) a statement that delinquent taxes are due;
463          (ii) the amount of delinquent taxes due, not including any penalties imposed in
464     accordance with this chapter;
465          (iii) (A) the name of the delinquent taxpayer; or
466          (B) if the delinquent taxpayer is a business entity, the name of the business entity;
467          (iv) (A) a description of the delinquent property; or
468          (B) the property identification number of the delinquent property;
469          (v) a statement that a penalty shall be imposed in accordance with this chapter; and
470          (vi) a statement that interest accrues as of January 1 following the date of the
471     delinquency unless on or before January 31 the following are paid:
472          (A) the delinquent taxes; and
473          (B) the penalty.
474          (b) The list of delinquencies described in Subsection (2)(a)(ii) or (2)(b) shall include:
475          (i) the amount of delinquent taxes due, not including any penalties imposed in
476     accordance with this chapter;
477          (ii) (A) the name of the delinquent taxpayer; or
478          (B) if the delinquent taxpayer is a business entity, the name of the business entity;
479          (iii) (A) a description of the delinquent property; or
480          (B) the property identification number of the delinquent property;
481          (iv) a statement that a penalty shall be imposed in accordance with this chapter; and
482          (v) a statement that interest accrues as of January 1 following the date of the
483     delinquency unless on or before January 31 the following are paid:
484          (A) the delinquent taxes; and
485          (B) the penalty.
486          (4) Notwithstanding Subsection (1)(a), if the county legislative body extends the
487     property tax due date under Subsection 59-2-1332(1), the notice of delinquency in the payment
488     of property taxes shall be provided on or before January 10.
489          (5) (a) In addition to the notice of delinquency in the payment of property taxes
490     required by Subsection (1), a county treasurer may in accordance with this Subsection (5) mail
491     a notice that property taxes are delinquent:
492          (i) to:
493          (A) a delinquent taxpayer;
494          (B) an owner of record of the delinquent property;
495          (C) any other interested party that requests notice; or
496          (D) a combination of Subsections (5)(a)(i)(A) through (C); and
497          (ii) at any time that the county treasurer considers appropriate.
498          (b) A notice mailed in accordance with this Subsection (5):
499          (i) shall include the information required by Subsection (3)(a); and
500          (ii) may include any information that the county treasurer finds is useful to the owner
501     of record of the delinquent property in determining:
502          (A) the status of taxes owed on the delinquent property;
503          (B) any penalty that is owed on the delinquent property;
504          (C) any interest charged under Section 59-2-1331 on the delinquent property; or
505          (D) any related matters concerning the delinquent property.
506          (6) As used in this section, "business entity" means:
507          (a) an association;
508          (b) a corporation;
509          (c) a limited liability company;
510          (d) a partnership;
511          (e) a trust; or
512          (f) a business entity similar to Subsections (6)(a) through (e).
513          Section 4. Section 59-2-1346 is amended to read:
514          59-2-1346. Redemption -- Time allowed.
515          (1) [(a)] Property may be redeemed on behalf of the record owner by any person at any
516     time [prior to] before the tax sale which shall be held in May or June as provided in Section
517     59-2-1351 following the lapse of four years from the date the property tax became delinquent.
518          [(b)] (2) A person may redeem property by paying to the county [treasury] treasurer all
519     delinquent taxes, interest, penalties, and administrative costs that have accrued on the property.
520          (3) (a) Subject to Subsection (3)(d), a person may redeem a subdivided lot by paying
521     the county treasurer the subdivided lot's proportional share of the delinquent taxes, interest,
522     penalties, and administrative costs accrued on the base parcel, calculated in accordance with
523     Subsection (3)(b).
524          (b) The county treasurer shall calculate the amount described in Subsection (3)(a) by
525     comparing:
526          (i) the amount of the value of the base parcel as described in Subsection (3)(b)(ii) that
527     is attributable to the property that comprises the subdivided lot as the property existed on
528     January 1 of the year in which the delinquent property taxes on the base parcel were assessed;
529     and
530          (ii) the value of the base parcel as it existed on January 1 of the year in which the
531     delinquent property taxes on the base parcel were assessed.
532          (c) If the county treasurer does not have sufficient information to calculate the amount
533     described in Subsection (3)(a)(i), upon request from the county treasurer, the county assessor
534     shall provide the county treasurer any information necessary to calculate the amount described
535     in Subsection (3)(a)(i).
536          (d) A person may redeem a subdivided lot under this Subsection (3) only if the record
537     owner of the subdivided lot is a bona fide purchaser.
538          [(2)] (4) At any time [prior to] before the expiration of the period of redemption the
539     county treasurer shall accept and credit on account for the redemption of property, payments in
540     amounts of not less than $10, except for the final payment, which may be in any amount. For
541     the purpose of computing the amount required for redemption and for the purpose of
542     distributing the payments received on account, all payments shall be applied in the following
543     order:
544          (a) against the interest and administrative costs accrued on the delinquent tax for the
545     last year included in the delinquent account at the time of payment;
546          (b) against the penalty charged on the delinquent tax for the last year included in the
547     delinquent account at the time of payment;
548          (c) against the delinquent tax for the last year included in the delinquent account at the
549     time of payment;
550          (d) against the interest and administrative costs accrued on the delinquent tax for the
551     next to last year included in the delinquent account at the time of payment;
552          (e) and so on until the full amount of the delinquent taxes, penalties, administrative
553     costs, and interest on the unpaid balances are paid within the period of redemption.
554          Section 5. Section 59-7-302 is amended to read:
555          59-7-302. Definitions -- Determination of when a taxpayer is considered to be a
556     sales factor weighted taxpayer.
557          (1) As used in this part, unless the context otherwise requires:
558          (a) "Aircraft type" means a particular model of aircraft as designated by the
559     manufacturer of the aircraft.
560          (b) "Airline" [is as] means the same as that term is defined in Section 59-2-102.
561          (c) "Airline revenue ton miles" means, for an airline, the total revenue ton miles during
562     the airline's tax period.
563          (d) "Business income" means income arising from transactions and activity in the
564     regular course of the taxpayer's trade or business and includes income from tangible and
565     intangible property if the acquisition, management, and disposition of the property constitutes
566     integral parts of the taxpayer's regular trade or business operations.
567          (e) "Commercial domicile" means the principal place from which the trade or business
568     of the taxpayer is directed or managed.
569          (f) "Compensation" means wages, salaries, commissions, and any other form of
570     remuneration paid to employees for personal services.
571          (g) (i) Except as provided in Subsection (1)(g)(ii), "mobile flight equipment" is as
572     defined in Section 59-2-102.
573          (ii) "Mobile flight equipment" does not include:
574          (A) a spare engine; or
575          (B) tangible personal property described in Subsection 59-2-102[(26)] (27) owned by
576     an:
577          (I) air charter service; or
578          (II) air contract service.
579          (h) "Nonbusiness income" means all income other than business income.
580          (i) "Revenue ton miles" is determined in accordance with 14 C.F.R. Part 241.
581          (j) "Sales" means all gross receipts of the taxpayer not allocated under Sections
582     59-7-306 through 59-7-310.
583          (k) Subject to Subsection (2), "sales factor weighted taxpayer" means:
584          (i) for a taxpayer that is not a unitary group, regardless of the number of economic
585     activities the taxpayer performs, a taxpayer having greater than 50% of the taxpayer's total sales
586     everywhere generated by economic activities performed by the taxpayer if the economic
587     activities are classified in a NAICS code of the 2002 or 2007 North American Industry
588     Classification System of the federal Executive Office of the President, Office of Management
589     and Budget, except for:
590          (A) a NAICS code within NAICS Sector 21, Mining;
591          (B) a NAICS code within NAICS Industry Group 2212, Natural Gas Distribution;
592          (C) a NAICS code within NAICS Sector 31-33, Manufacturing;
593          (D) a NAICS code within NAICS Sector 48-49, Transportation and Warehousing;
594          (E) a NAICS code within NAICS Sector 51, Information, except for NAICS Subsector
595     519, Other Information Services; or
596          (F) a NAICS code within NAICS Sector 52, Finance and Insurance; or
597          (ii) for a taxpayer that is a unitary group, a taxpayer having greater than 50% of the
598     taxpayer's total sales everywhere generated by economic activities performed by the taxpayer if
599     the economic activities are classified in a NAICS code of the 2002 or 2007 North American
600     Industry Classification System of the federal Executive Office of the President, Office of
601     Management and Budget, except for:
602          (A) a NAICS code within NAICS Sector 21, Mining;
603          (B) a NAICS code within NAICS Industry Group 2212, Natural Gas Distribution;
604          (C) a NAICS code within NAICS Sector 31-33, Manufacturing;
605          (D) a NAICS code within NAICS Sector 48-49, Transportation and Warehousing;
606          (E) a NAICS code within NAICS Sector 51, Information, except for NAICS Subsector
607     519, Other Information Services; or
608          (F) a NAICS code within NAICS Sector 52, Finance and Insurance.
609          (l) "State" means any state of the United States, the District of Columbia, the
610     Commonwealth of Puerto Rico, any territory or possession of the United States, and any
611     foreign country or political subdivision thereof.
612          (m) "Transportation revenue" means revenue an airline earns from:
613          (i) transporting a passenger or cargo; or
614          (ii) from miscellaneous sales of merchandise as part of providing transportation
615     services.
616          (n) "Utah revenue ton miles" means, for an airline, the total revenue ton miles within
617     the borders of this state:
618          (i) during the airline's tax period; and
619          (ii) from flight stages that originate or terminate in this state.
620          (2) The following apply to Subsection (1)(k):
621          (a) (i) Subject to the other provisions of this Subsection (2), a taxpayer shall for each
622     taxable year determine whether the taxpayer is a sales factor weighted taxpayer.
623          (ii) A taxpayer shall make the determination required by Subsection (2)(a)(i) before the
624     due date for filing the taxpayer's return under this chapter for the taxable year, including
625     extensions.
626          (iii) For purposes of making the determination required by Subsection (2)(a)(i), total
627     sales everywhere include only the total sales everywhere:
628          (A) as determined in accordance with this part; and
629          (B) made during the taxable year for which a taxpayer makes the determination
630     required by Subsection (2)(a)(i).
631          (b) A taxpayer that files a return as a unitary group for a taxable year is considered to
632     be a unitary group for that taxable year.
633          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
634     commission may define the term "economic activity" consistent with the use of the term
635     "activity" in the 2007 North American Industry Classification System of the federal Executive
636     Office of the President, Office of Management and Budget.




Legislative Review Note
Office of Legislative Research and General Counsel