1     
COMMON AREA ASSESSMENT AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Gage Froerer

5     
Senate Sponsor: Lyle W. Hillyard

6     

7     LONG TITLE
8     General Description:
9          This bill amends a provision related to assessment of property by a county assessor.
10     Highlighted Provisions:
11          This bill:
12          ▸     allows a county assessor to consider that a property is a common area or facility
13     when assessing the fair market value of property.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          None
18     Utah Code Sections Affected:
19     AMENDS:
20          59-2-301.1, as last amended by Laws of Utah 2011, Chapter 157
21     

22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 59-2-301.1 is amended to read:
24          59-2-301.1. Assessment of property subject to a conservation easement --
25     Assessment of golf course or hunting club.
26          (1) In assessing the fair market value of property subject to a conservation easement
27     under Title 57, Chapter 18, Land Conservation Easement Act, a county assessor shall consider

28     factors relating to the property and neighboring property that affect the fair market value of the
29     property being assessed, including:
30          (a) value that transfers to neighboring property because of the presence of a
31     conservation easement on the property being assessed;
32          (b) practical and legal restrictions on the development potential of the property because
33     of the presence of the conservation easement;
34          (c) the absence of neighboring property similarly subject to a conservation easement to
35     provide a basis for comparing values between properties; and
36          (d) any other factor that causes the fair market value of the property to be affected
37     because of the presence of a conservation easement.
38          (2) (a) In assessing the fair market value of a golf course or hunting club, a county
39     assessor shall consider factors relating to the golf course or hunting club and neighboring
40     property that affect the fair market value of the golf course or hunting club, including:
41          (i) value that transfers to neighboring property because of the presence of the golf
42     course or hunting club;
43          (ii) practical and legal restrictions on the development potential of the golf course or
44     hunting club; and
45          (iii) the history of operation of the golf course or hunting club and the likelihood that
46     the present use will continue into the future.
47          (b) The valuation method a county assessor may use in determining the fair market
48     value of a golf course or hunting club includes:
49          (i) the cost approach;
50          (ii) the income capitalization approach; and
51          (iii) the sales comparison approach.
52          (3) In assessing the fair market value of property that is a common area or facility
53     under Title 57, Chapter 8, Condominium Ownership Act, or a common area under Title 57,
54     Chapter 8a, Community Association Act, a county assessor shall consider factors relating to the
55     property and neighboring property that affect the fair market value of the property being
56     assessed, including:
57          (a) value that transfers to neighboring property because the property is a common area
58     or facility;

59          (b) practical and legal restrictions on the development potential of the property because
60     the property is a common area or facility;
61          (c) the absence of neighboring property similarly situated as a common area or facility
62     to provide a basis for comparing values between properties; and
63          (d) any other factor that causes the fair market value of the property to be affected
64     because the property is a common area or facility.






Legislative Review Note
Office of Legislative Research and General Counsel