1     
PROPERTY TAX AND FAIR MARKET VALUE

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Brian M. Greene

5     
Senate Sponsor: ____________

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7     LONG TITLE
8     General Description:
9          This bill modifies the method of valuing property for purposes of the Property Tax Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms; and
13          ▸     addresses the fair market valuation of static property.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          This bill provides a special effective date.
18     Utah Code Sections Affected:
19     ENACTS:
20          59-2-301.8, Utah Code Annotated 1953
21     

22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 59-2-301.8 is enacted to read:
24          59-2-301.8. Assessment of fair market value for static real property.
25          (1) As used in this section:
26          (a) "Average property value appreciation" means the percentage increase in the fair
27     market value of real property that the county assessor assesses for the geographically localized

28     area in which the real property is located and has the same zoning classification in accordance
29     with this part measured from January 1 of the previous year to January 1 of the current year.
30          (b) "Average property value depreciation" means the percentage decrease in the fair
31     market value of real property that the county assessor assesses for the geographically localized
32     area in which the real property is located and has the same zoning classification in accordance
33     with this part measured from January 1 of the previous year to January 1 of the current year.
34          (c) "Geographically localized area" has the same meaning as defined by the
35     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
36     Rulemaking Act.
37          (d) "Static property" means real property that, as of January 1 of the current year:
38          (i) has not been improved since January 1 of the previous year;
39          (ii) is zoned the same as it was zoned on January 1 of the previous year; and
40          (iii) has not been leased or sold since January 1of the previous year.
41          (2) To equalize the valuation and assessment of real property that is static property, and
42     to secure a just valuation for taxation of static property, a county assessor, in assessing the fair
43     market value of static property, shall:
44          (a) include as part of the assessment that the real property is static property; and
45          (b) determine the fair market value of the real property by considering, as a primary
46     factor, the average property value appreciation or the average property value depreciation.
47          Section 2. Effective date.
48          This bill takes effect on January 1, 2017.






Legislative Review Note
Office of Legislative Research and General Counsel