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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to property taxes.
10 Highlighted Provisions:
11 This bill:
12 ▸ provides a process for real estate developers to seek deferral of property taxes.
13 Money Appropriated in this Bill:
14 None
15 Other Special Clauses:
16 This bill provides a special effective date.
17 Utah Code Sections Affected:
18 ENACTS:
19 59-2-1116, Utah Code Annotated 1953
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21 Be it enacted by the Legislature of the state of Utah:
22 Section 1. Section 59-2-1116 is enacted to read:
23 59-2-1116. Deferral for developer's unsold property.
24 (1) As used in this section, "real estate developer" means a person having an ownership
25 interest in real property that:
26 (a) (i) contracts with a person that is licensed as a contractor or is exempt from
27 licensure under Title 58, Chapter 55, Utah Construction Trades Licensing Act, for the
28 construction of an improvement to real property that is offered for sale to the public and that
29 has not been sold; or
30 (ii) (A) is a licensed contractor under Title 58, Chapter 55, Utah Construction Trades
31 Licensing Act; and
32 (B) engages in the construction of an improvement to real property that is offered for
33 sale to the public and that has not been sold;
34 (b) has, as the person's primary business, the development of real property for sale to
35 the public; and
36 (c) in a calendar year owns five or more lots or commercial pads that are or will be
37 developed for sale to the public.
38 (2) (a) A real estate developer seeking a deferral of taxes under this chapter shall file an
39 application for the deferral of taxes on or before September 1 with the county in which the real
40 property is located.
41 (b) The application shall include a signed statement setting forth the following:
42 (i) a description of the real property;
43 (ii) the value of the real property for the current year;
44 (iii) the amount of delinquent taxes, interest, and penalties applicable to the real
45 property;
46 (iv) the amount proposed to be deferred;
47 (v) all of the owners of the real property; and
48 (vi) evidence that the applicant's primary business is the development of real property
49 for sale to the public.
50 (c) A county may extend the deadline for filing under Subsection (2)(a) until December
51 31 if the county finds that good cause exists to extend the deadline.
52 (3) The county shall defer any tax levied on real property that is owned by a real estate
53 developer that complies with Subsection (2).
54 (4) (a) The deferral of taxes is for the period:
55 (i) beginning on the January 1 immediately preceding the date on which the county
56 defers the tax; and
57 (ii) ending the sooner of:
58 (A) the date that the real estate developer sells or otherwise conveys the real property;
59 or
60 (B) December 31 of the year that is five years after the day described in Subsection
61 (4)(a)(i).
62 (b) If the real estate developer obtains a deferral under this section for real property, the
63 real property may not be subjected to a tax sale before one year after the day on which the
64 period of deferral ends under Subsection (4).
65 (5) (a) Taxes deferred by the county accumulate with interest as a lien against the
66 property until the period of deferral ends under Subsection (4).
67 (b) Deferred taxes under this section:
68 (i) bear interest at an interest rate equal to the lesser of:
69 (A) 6%; or
70 (B) the federal funds target rate established by the Federal Open Market Committee
71 that exists on the January 1 immediately preceding the day on which the taxes are deferred; and
72 (ii) have the same status as a lien under Sections 59-2-1301 and 59-2-1325.
73 (c) The amount deferred together with accrued interest shall be due and payable when
74 the property is sold or otherwise conveyed.
75 (6) A county may grant a real estate developer a deferral under this section only once
76 for each lot or commercial pad for which the real estate developer seeks a deferral under this
77 section and in which the real estate developer has an ownership interest .
78 (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
79 commission may adopt rules to implement this section.
80 Section 2. Effective date.
81 This bill takes effect on January 1, 2017.
Legislative Review Note
Office of Legislative Research and General Counsel