1     
PROPERTY TAX ASSESSMENT APPEAL AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Joel K. Briscoe

5     
Senate Sponsor: Daniel Hemmert

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Farmland Assessment Act and the Urban Farming Assessment
10     Act.
11     Highlighted Provisions:
12          This bill:
13          ▸      requires the county assessor to notify an owner of an incomplete application for
14     assessment under the Farmland Assessment Act or the Urban Farming Assessment
15     Act;
16          ▸     describes the circumstances when an incomplete application is considered denied;
17          ▸     establishes the time periods for filing an appeal under the Farmland Assessment Act
18     and the Urban Farming Assessment Act; and
19          ▸     makes technical changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          59-2-502, as last amended by Laws of Utah 2005, Chapter 254
27          59-2-506, as last amended by Laws of Utah 2014, Chapter 279
28          59-2-508, as last amended by Laws of Utah 2003, Chapter 208
29          59-2-1705, as last amended by Laws of Utah 2014, Chapters 279 and 413
30          59-2-1707, as enacted by Laws of Utah 2012, Chapter 197
31     ENACTS:
32          59-2-516, Utah Code Annotated 1953
33          59-2-1713, Utah Code Annotated 1953
34     

35     Be it enacted by the Legislature of the state of Utah:
36          Section 1. Section 59-2-502 is amended to read:
37          59-2-502. Definitions.
38          As used in this part:
39          (1) "Actively devoted to agricultural use" means that the land in agricultural use
40     produces in excess of 50% of the average agricultural production per acre:
41          (a) as determined under Section 59-2-503; and
42          (b) for:
43          (i) the given type of land; and
44          (ii) the given county or area.
45          (2) "Conservation easement rollback tax" means the tax imposed under Section
46     59-2-506.5.
47          (3) "Identical legal ownership" means legal ownership held by:
48          (a) identical legal parties; or
49          (b) identical legal entities.
50          (4) "Land in agricultural use" means:
51          (a) land devoted to the raising of useful plants and animals with a reasonable
52     expectation of profit, including:
53          (i) forages and sod crops;
54          (ii) grains and feed crops;
55          (iii) livestock as defined in Section 59-2-102;
56          (iv) trees and fruits; or
57          (v) vegetables, nursery, floral, and ornamental stock; or
58          (b) land devoted to and meeting the requirements and qualifications for payments or
59     other compensation under a crop-land retirement program with an agency of the state or federal
60     government.
61          (5) "Other eligible acreage" means land that is:
62          (a) five or more contiguous acres;
63          (b) eligible for assessment under this part; and
64          (c) (i) located in the same county as land described in Subsection 59-2-503(1)(a); or
65          (ii) contiguous across county lines with land described in Subsection 59-2-503(1)(a) as
66     provided in Section 59-2-512.
67          (6) "Platted" means land in which:
68          (a) parcels of ground are laid out and mapped by their boundaries, course, and extent;
69     and
70          (b) the plat has been approved as provided in Section 10-9a-604 or 17-27a-604.
71          (7) "Rollback tax" means the tax imposed under Section 59-2-506.
72          (8) "Withdrawn from this part" means that land that has been assessed under this part is
73     no longer assessed under this part or eligible for assessment under this part for any reason
74     including that:
75          (a) an owner voluntarily requests that the land be withdrawn from this part;
76          (b) the land is no longer actively devoted to agricultural use;
77          (c) (i) the land has a change in ownership; and
78          (ii) (A) the new owner fails to apply for assessment under this part as required by
79     Section 59-2-509; or
80          (B) (I) an owner applies for assessment under this part as required by Section
81     59-2-509; and
82          (II) the land does not meet the requirements of this part to be assessed under this part;
83          (d) (i) the legal description of the land changes; and
84          (ii) (A) an owner fails to apply for assessment under this part as required by Section
85     59-2-509; or
86          (B) (I) an owner applies for assessment under this part as required by Section
87     59-2-509; and
88          (II) the land does not meet the requirements of this part to be assessed under this part;
89          (e) if required by the county assessor, the owner of the land:
90          (i) fails to file a new application as provided in Subsection 59-2-508[(4)](5); or
91          (ii) fails to file a signed statement as provided in Subsection 59-2-508[(4)](5); or
92          (f) except as provided in Section 59-2-503, the land fails to meet a requirement of
93     Section 59-2-503.
94          Section 2. Section 59-2-506 is amended to read:
95          59-2-506. Rollback tax -- Penalty -- Computation of tax -- Procedure -- Lien --
96     Interest -- Notice -- Collection -- Distribution -- Appeal to county board of equalization.
97          (1) Except as provided in this section, Section 59-2-506.5, or Section 59-2-511, if land
98     is withdrawn from this part, the land is subject to a rollback tax imposed in accordance with
99     this section.
100          (2) (a) An owner shall notify the county assessor that land is withdrawn from this part
101     within 120 days after the day on which the land is withdrawn from this part.
102          (b) An owner that fails to notify the county assessor under Subsection (2)(a) that land is
103     withdrawn from this part is subject to a penalty equal to the greater of:
104          (i) $10; or
105          (ii) 2% of the rollback tax due for the last year of the rollback period.
106          (3) (a) The county assessor shall determine the amount of the rollback tax by
107     computing the difference for the rollback period described in Subsection (3)(b) between:
108          (i) the tax paid while the land was assessed under this part; and
109          (ii) the tax that would have been paid had the property not been assessed under this
110     part.
111          (b) For purposes of this section, the rollback period is a time period that:
112          (i) begins on the later of:
113          (A) the date the land is first assessed under this part; or
114          (B) five years preceding the day on which the county assessor mails the notice required
115     by Subsection (5); and
116          (ii) ends the day on which the county assessor mails the notice required by Subsection
117     (5).
118          (4) (a) The county treasurer shall:
119          (i) collect the rollback tax; and
120          (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
121     on the property has been satisfied by:
122          (A) preparing a document that certifies that the rollback tax lien on the property has
123     been satisfied; and
124          (B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
125     for recordation.
126          (b) The county treasurer shall pay the rollback tax collected under this section [shall]:
127          (i) [be paid] into the county treasury; and
128          (ii) [be paid by the county treasurer] to the various taxing entities pro rata in
129     accordance with the property tax levies for the current year.
130          (5) (a) The county assessor shall mail to an owner of the land that is subject to a
131     rollback tax a notice that:
132          (i) the land is withdrawn from this part;
133          (ii) the land is subject to a rollback tax under this section; and
134          (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
135     30 days after the day on which the county assessor mails the notice described in this Subsection
136     (5)(a).
137          (b) (i) The rollback tax is due and payable on the day the county assessor mails the
138     notice required by Subsection (5)(a).
139          (ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
140     is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
141     the county assessor mails the notice required by Subsection (5)(a).
142          (6) (a) Subject to Subsection (6)(b), the following are a lien on the land assessed under
143     this part:
144          (i) the rollback tax; and
145          (ii) interest imposed in accordance with Subsection (7).
146          (b) The lien described in Subsection (6)(a) shall:
147          (i) arise upon the imposition of the rollback tax under this section;
148          (ii) end on the day on which the rollback tax and interest imposed in accordance with
149     Subsection (7) are paid in full; and
150          (iii) relate back to the first day of the rollback period described in Subsection (3)(b).
151          (7) (a) A delinquent rollback tax under this section shall accrue interest:
152          (i) from the date of delinquency until paid; and
153          (ii) at the interest rate established under Section 59-2-1331 and in effect on January 1
154     of the year in which the delinquency occurs.
155          (b) [A] The county treasurer shall include in the notice required by Section 59-2-1317 a
156     rollback tax that is delinquent on September 1 of any year [shall be included on the notice
157     required by Section 59-2-1317, along with] and interest calculated on that delinquent amount
158     through November 30 of the year in which the county treasurer provides the notice under
159     Section 59-2-1317.
160          (8) (a) Land that becomes ineligible for assessment under this part only as a result of an
161     amendment to this part is not subject to the rollback tax if the owner of the land notifies the
162     county assessor, in accordance with Subsection (2), that the land is withdrawn from this part
163     [in accordance with Subsection (2)].
164          (b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
165     an event other than an amendment to this part, whether voluntary or involuntary, is subject to
166     the rollback tax.
167          (9) Except as provided in Section 59-2-511, land that becomes exempt from taxation
168     under Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land
169     meets the requirements of Section 59-2-503 to be assessed under this part.
170          (10) Land that becomes ineligible for assessment under this part only as a result of a
171     split estate mineral rights owner exercising the right to extract a mineral is not subject to the
172     rollback tax:
173          (a) (i) for the portion of the land required by a split estate mineral rights owner to
174     extract a mineral if, after the split estate mineral rights owner exercises the right to extract a
175     mineral, the portion of the property that remains in agricultural production still meets the
176     acreage requirements of Section 59-2-503 for assessment under this part; or
177          (ii) for the entire acreage that would otherwise qualify for assessment under this part if,
178     after the split estate mineral rights owner exercises the right to extract a mineral, the entire
179     acreage that would otherwise qualify for assessment under this part no longer meets the acreage
180     requirements of Section 59-2-503 for assessment under this part only due to the extraction of
181     the mineral by the split estate mineral rights owner; and
182          (b) for the period of time that the property described in Subsection (10)(a) is ineligible
183     for assessment under this part due to the extraction of a mineral by the split estate mineral
184     rights owner.
185          [(11) (a) Subject to Subsection (11)(b), an owner of land may appeal to the county
186     board of equalization:]
187          [(i) a decision by a county assessor to withdraw land from assessment under this part;
188     or]
189          [(ii) the imposition of a rollback tax under this section.]
190          [(b) An owner shall file an appeal under Subsection (11)(a) no later than 45 days after
191     the day on which the county assessor mails the notice required by Subsection (5).]
192          Section 3. Section 59-2-508 is amended to read:
193          59-2-508. Application -- Signed statement -- Consent to creation of a lien --
194     Consent to audit and review -- Notice.
195          (1) If an owner of land eligible for assessment under this part wants the land to be
196     assessed under this part, the owner shall submit an application to the county assessor of the
197     county in which the land is located.
198          (2) An application required by Subsection (1) shall:
199          (a) be on a form:
200          (i) approved by the commission; and
201          (ii) provided to an owner:
202          (A) by the county assessor; and
203          (B) at the request of an owner;
204          (b) provide for the reporting of information related to this part;
205          (c) be submitted by:
206          (i) May 1 of the tax year in which assessment under Subsection (1) is requested if the
207     land was not assessed under this part in the year before the application is submitted; or
208          (ii) by the date otherwise required by this part for land that prior to the application
209     being submitted has been assessed under this part;
210          (d) be signed by all of the owners of the land that under the application would be
211     assessed under this part;
212          (e) be accompanied by the prescribed fees made payable to the county recorder;
213          (f) include a certification by an owner that the facts set forth in the application or
214     signed statement are true;
215          (g) include a statement that the application constitutes consent by the owners of the
216     land to the creation of a lien upon the land as provided in this part; and
217          (h) be recorded by the county recorder.
218          (3) The application [required by] described in Subsection (2) constitutes consent by the
219     owners of the land to the creation of a lien upon the land as provided in this part.
220          (4) (a) If the county determines that an application that was timely filed is incomplete,
221     the county shall:
222          (i) notify the owner of the incomplete application; and
223          (ii) allow the owner to complete the application within 30 days from the day on which
224     the county provides notice to the owner.
225          (b) An application that has not been completed within 30 days of the day of the notice
226     described in Subsection (4)(a) shall be considered denied.
227          [(4)] (5) (a) Once the application [for assessment] described in Subsection (1) has been
228     approved, the county may:
229          (i) require , by written request of the county assessor, the owner to submit a new
230     application or a signed statement[: (A) by written request of the county assessor; and (B)] that
231     verifies that the land qualifies for assessment under this part; or
232          (ii) except as provided in Subsection [(4)] (5)(b), require no additional signed
233     statement or application for assessment under this part.
234          (b) [Notwithstanding Subsection (4)(a), a] A county shall require that an owner provide
235     notice if land is withdrawn from this part:
236          (i) as provided in Section 59-2-506; or
237          (ii) for land that is subject to a conservation easement created in accordance with
238     Section 59-2-506.5, as provided in Section 59-2-506.5.
239          (c) An owner shall submit an application or signed statement required under
240     Subsection [(4)] (5)(a) [shall be submitted] by the date specified in the written request of the
241     county assessor for the application or signed statement.
242          [(5)] (6) A certification under Subsection (2)(f) is considered as if made under oath and
243     subject to the same penalties as provided by law for perjury.
244           [(6)] (7) (a) All owners applying for participation under this part and all purchasers or
245     lessees signing statements under Subsection [(7)] (8) are considered to have given their consent
246     to field audit and review by:
247          (i) the commission;
248          (ii) the county assessor; or
249          (iii) the commission and the county assessor.
250          (b) The consent described in Subsection [(6)] (7)(a) is a condition to the acceptance of
251     any application or signed statement.
252          [(7)] (8) Any owner of land eligible for assessment under this part, because a purchaser
253     or lessee actively devotes the land to agricultural use as required by Section 59-2-503, may
254     qualify the land for assessment under this part by submitting, with the application [required
255     under] described in Subsection (2), a signed statement from that purchaser or lessee certifying
256     those facts that would be necessary to meet the requirements of Section 59-2-503 for
257     assessment under this part.
258          Section 4. Section 59-2-516 is enacted to read:
259          59-2-516. Appeal to the county board of equalization.
260          Notwithstanding Section 59-2-1004 or 63G-4-301, the owner of land may appeal the
261     determination or denial of a county assessor to the county board of equalization within 45 days
262     after the day on which:
263          (1) the county assessor makes a determination under this part; or
264          (2) the county assessor's failure to make a determination results in the owner's request
265     being considered denied under this part.
266          Section 5. Section 59-2-1705 is amended to read:
267          59-2-1705. Rollback tax -- Penalty -- Computation of tax -- Procedure -- Lien --
268     Interest -- Notice -- Collection -- Distribution -- Appeal to county board of equalization.
269          (1) Except as provided in this section or Section 59-2-1710, land that is withdrawn
270     from this part is subject to a rollback tax imposed as provided in this section.
271          (2) (a) An owner shall notify the county assessor that land is withdrawn from this part
272     within 120 days after the day on which the land is withdrawn from this part.
273          (b) An owner who fails to notify the county assessor under Subsection (2)(a) that land
274     is withdrawn from this part is subject to a penalty equal to the greater of:
275          (i) $10; or
276          (ii) 2% of the rollback tax due for the last year of the rollback period.
277          (3) (a) The county assessor shall determine the amount of the rollback tax by
278     computing the difference for the rollback period described in Subsection (3)(b) between:
279          (i) the tax paid while the land was assessed under this part; and
280          (ii) the tax that would have been paid had the property not been assessed under this
281     part.
282          (b) For purposes of this section, the rollback period is a time period that:
283          (i) begins on the later of:
284          (A) the date the land is first assessed under this part; or
285          (B) five years preceding the day on which the county assessor mails the notice required
286     by Subsection (5); and
287          (ii) ends the day on which the county assessor mails the notice required by Subsection
288     (5).
289          (4) (a) The county treasurer shall:
290          (i) collect the rollback tax; and
291          (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
292     on the property has been satisfied by:
293          (A) preparing a document that certifies that the rollback tax lien on the property has
294     been satisfied; and
295          (B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
296     for recording.
297          (b) The county treasurer shall pay the rollback tax collected under this section [shall]:
298          (i) [be paid] into the county treasury; and
299          (ii) [be paid by the county treasurer] to the various taxing entities pro rata in
300     accordance with the property tax levies for the current year.
301          (5) (a) The county assessor shall mail to an owner of the land that is subject to a
302     rollback tax a notice that:
303          (i) the land is withdrawn from this part;
304          (ii) the land is subject to a rollback tax under this section; and
305          (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
306     30 days after the day on which the county assessor mails the notice described in this Subsection
307     (5)(a).
308          (b) (i) The rollback tax is due and payable on the day the county assessor mails the
309     notice required by Subsection (5)(a).
310          (ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
311     is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
312     the county assessor mails the notice required by Subsection (5)(a).
313          (6) (a) Subject to Subsection (6)(b), the rollback tax and interest imposed under
314     Subsection (7) are a lien on the land assessed under this part.
315          (b) The lien described in Subsection (6)(a) shall:
316          (i) arise upon the imposition of the rollback tax under this section;
317          (ii) end on the day on which the rollback tax and interest imposed under Subsection (7)
318     are paid in full; and
319          (iii) relate back to the first day of the rollback period described in Subsection (3)(b).
320          (7) (a) A delinquent rollback tax under this section shall accrue interest:
321          (i) from the date of delinquency until paid; and
322          (ii) at the interest rate established under Section 59-2-1331 and in effect on January 1
323     of the year in which the delinquency occurs.
324          (b) [A] The county treasurer shall include in the notice required by Section 59-2-1317 a
325     rollback tax that is delinquent on September 1 of any year [shall be included on the notice
326     required by Section 59-2-1317, along with] and interest calculated on that delinquent amount
327     through November 30 of the year in which the county treasurer provides the notice under
328     Section 59-2-1317.
329          (8) (a) Land that becomes ineligible for assessment under this part only as a result of an
330     amendment to this part is not subject to the rollback tax if the owner of the land notifies the
331     county assessor, in accordance with Subsection (2), that the land is withdrawn from this part
332     [in accordance with Subsection (2)].
333          (b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
334     an event other than an amendment to this part, whether voluntary or involuntary, is subject to
335     the rollback tax.
336          (9) Except as provided in Section 59-2-1710, land that becomes exempt from taxation
337     under Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land
338     meets the requirements of Section 59-2-1703 to be assessed under this part.
339          [(10) (a) Subject to Subsection (10)(b), an owner of land may appeal to the county
340     board of equalization:]
341          [(i) a decision by a county assessor to withdraw land from assessment under this part;
342     or]
343          [(ii) the imposition of a rollback tax under this section.]
344          [(b) An owner shall file an appeal under Subsection (10)(a) no later than 45 days after
345     the day on which the county assessor mails the notice required by Subsection (5).]
346          Section 6. Section 59-2-1707 is amended to read:
347          59-2-1707. Application -- Signed statement -- Consent to creation of a lien --
348     Consent to audit and review -- Notice.
349          (1) For land to be assessed under this part, an owner of land eligible for assessment
350     under this part shall [annually] submit an application annually to the county assessor of the
351     county in which the land is located.
352          (2) An application required by Subsection (1) shall:
353          (a) be on a form:
354          (i) approved by the commission; and
355          (ii) provided to an owner:
356          (A) by the county assessor; and
357          (B) at the request of an owner;
358          (b) provide for the reporting of information related to this part;
359          (c) be submitted by:
360          (i) May 1 of the tax year in which assessment under Subsection (1) is requested if the
361     land was not assessed under this part in the year before the application is submitted; or
362          (ii) the date otherwise required by this part for land that before the application being
363     submitted has been assessed under this part;
364          (d) be signed by all of the owners of the land that under the application would be
365     assessed under this part;
366          (e) be accompanied by the prescribed fees made payable to the county recorder;
367          (f) include a certification by an owner that the facts set forth in the application or
368     signed statement are true;
369          (g) include a statement that the application constitutes consent by the owners of the
370     land to the creation of a lien upon the land as provided in this part; and
371          (h) be recorded by the county recorder.
372          (3) The application [required by] described in Subsection (2) constitutes consent by the
373     owners of the land to the creation of a lien upon the land as provided in this part.
374          (4) (a) If the county determines that an application that was timely filed is incomplete,
375     the county shall:
376          (i) notify the owner of the incomplete application; and
377          (ii) allow the owner to complete the application within 30 days from the day on which
378     the county provides notice to the owner.
379          (b) An application that has not been completed within 30 days of the day of the notice
380     described in Subsection (4)(a) shall be considered denied.
381          [(4)] (5) (a) Except as provided in Subsections (1) and (2), a county assessor may not
382     require an additional signed statement or application for assessment under this part.
383          (b) Notwithstanding Subsection [(4)] (5)(a), a county shall require that an owner
384     provide notice if land is withdrawn from this part as provided in Section 59-2-1705.
385          [(5)] (6) A certification under Subsection (2)(f) is considered as if made under oath and
386     subject to the same penalties as provided by law for perjury.
387          [(6)] (7) (a) An owner applying for participation under this part or a purchaser or lessee
388     [who] that signs a statement under Subsection [(7)] (8) is considered to have given consent to a
389     field audit and review by:
390          (i) the commission;
391          (ii) the county assessor; or
392          (iii) the commission and the county assessor.
393          (b) The consent described in Subsection [(6)] (7)(a) is a condition to the acceptance of
394     an application or signed statement.
395          [(7)] (8) An owner of land eligible for assessment under this part, because a purchaser
396     or lessee actively devotes the land to agricultural use as required by Section 59-2-1703, may
397     qualify the land for assessment under this part by submitting, with the application [required
398     under] described in Subsection (2), a signed statement from that purchaser or lessee certifying
399     those facts that would be necessary to meet the requirements of Section 59-2-1703 for
400     assessment under this part.
401          Section 7. Section 59-2-1713 is enacted to read:
402          59-2-1713. Appeal to the county board of equalization.
403          Notwithstanding Section 59-2-1004 or 63G-4-301, the owner of land may appeal the
404     determination or denial of a county assessor to the county board of equalization within 45 days
405     after the day on which:
406          (1) the county assessor makes a determination under this part; or
407          (2) the county assessor's failure to make a determination results in the owner's request
408     being considered denied under this part.