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7 LONG TITLE
8 General Description:
9 This bill modifies the property tax valuation and appeals processes for county assessed
10 real property.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ modifies the burden of proof for appeals involving certain real property for which
15 there was a reduction in value as a result of a taxpayer appeal during the previous
16 taxable year;
17 ▸ creates an automatic county review process for certain real property valuations or
18 equalizations that exceed a threshold; and
19 ▸ makes technical and conforming changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill provides a special effective date.
24 Utah Code Sections Affected:
25 AMENDS:
26 59-2-109, as enacted by Laws of Utah 2016, Chapter 392
27 59-2-303, as last amended by Laws of Utah 1993, Chapter 245
28 59-2-311, as last amended by Laws of Utah 2005, Chapter 182
29 59-2-1004, as last amended by Laws of Utah 2016, Chapter 98
30 59-2-1004.5, as last amended by Laws of Utah 2008, Chapter 382
31 ENACTS:
32 59-2-303.2, Utah Code Annotated 1953
33
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 59-2-109 is amended to read:
36 59-2-109. Burden of proof.
37 (1) As used in this section[
38 (a) "Assessing authority" means:
39 [
40 and
41 [
42 (b) "Final assessed value" means:
43 (i) for real property for which the property owner appealed the valuation or
44 equalization in accordance with Section 59-2-1004, the assessed value given to the real
45 property by a county board of equalization after the appeal; or
46 (ii) for real property for which the property owner or a county assessor appealed the
47 valuation or equalization in accordance with Section 59-2-1006 or sought judicial review of the
48 valuation or equalization in accordance with Section 59-1-602 or Title 63G, Chapter 4, Part 4,
49 Judicial Review, the assessed value given to the real property by the commission.
50 (c) "Inflation adjusted value" means the final assessed value for the previous taxable
51 year of the real property that is the subject of the appeal increased by the median property value
52 increase.
53 (d) "Median property value increase" means the midpoint of the property value
54 changes, if the midpoint is greater than zero, for all real property that is:
55 (i) of the same class of real property as the qualified property; and
56 (ii) located within the same county and within the same market area as the qualified
57 property.
58 (e) "Property value change" means the percentage change in the fair market value of
59 real property between January 1 of the previous year and January 1 of the current year.
60 (f) "Qualified real property" means real property:
61 (i) for which:
62 (A) the taxpayer or a county assessor appealed the valuation or equalization in
63 accordance with Section 59-2-1004 or 59-2-1006 during the previous year; and
64 (B) as a result of the appeal described in Subsection (1)(f)(i)(A), a county board of
65 equalization or the commission reduced the assessed value for the previous taxable year;
66 (ii) that the taxpayer has not improved between January 1 of the previous taxable year
67 and January 1 of the current taxable year; and
68 (iii) for which the assessed value for the current taxable year is higher than the inflation
69 adjusted value.
70 (2) Notwithstanding Section 59-1-604, in an action appealing or seeking judicial
71 review of the value of property assessed by an assessing authority, the assessing authority has
72 the burden of proof before a county board of equalization, the commission, or a court of
73 competent jurisdiction[
74 the fair market value of the assessed property is greater than the value originally assessed by
75 the assessing authority for that calendar year.
76 (3) (a) (i) Notwithstanding Section 59-1-604, in an action appealing or seeking judicial
77 review of the value of qualified real property assessed by a county assessor, the county assessor
78 has the burden of proof before a county board of equalization, the commission, or a court of
79 competent jurisdiction if the taxpayer does not seek to reduce the assessed value of the
80 qualified real property for the current taxable year below the inflation adjusted value.
81 (ii) The burden remains on the county assessor even if the previous year's valuation is:
82 (A) pending judicial review requested in accordance with Section 59-1-602 or Title
83 63G, Chapter 4, Part 4, Judicial Review; or
84 (B) overturned by a district court as a result of judicial review requested in accordance
85 with Section 59-1-602 or Title 63G, Chapter 4, Part 4, Judicial Review.
86 (b) In an action appealing or seeking judicial review of the value of qualified real
87 property assessed by a county assessor, the taxpayer has the burden of proof before a county
88 board of equalization, the commission, or a court of competent jurisdiction if the taxpayer
89 seeks to reduce the assessed value of the qualified real property for the current taxable year
90 below the inflation adjusted value.
91 Section 2. Section 59-2-303 is amended to read:
92 59-2-303. General duties of county assessor.
93 (1) [
94 (i) ascertain the names of the owners of all property [
95 by the county[
96 (ii) except as provided in Subsection (2), assess the property to the owner, claimant of
97 record, or occupant in possession or control at [
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103 (iii) conduct the review process described in Section 59-2-303.2.
104 (b) No mistake in the name or address of the owner or supposed owner of property
105 renders the assessment invalid.
106 (2) If a conveyance of ownership of the real property was recorded in the office of a
107 county recorder after January 1 but more than 14 calendar days before the day on which the
108 county treasurer mails the tax notice, the county assessor shall assess the property to the new
109 owner.
110 [
111 county assessor's county, as provided in Section 59-2-301.
112 Section 3. Section 59-2-303.2 is enacted to read:
113 59-2-303.2. Automatic review of assessed value of review property.
114 (1) As used in this section:
115 (a) "Final assessed value" means:
116 (i) for a review property for which the property owner did not appeal the valuation or
117 equalization in accordance with Section 59-2-1004, the assessed value as stated on the
118 valuation notice described in Section 59-2-919.1;
119 (ii) for a review property for which the property owner appealed the valuation or
120 equalization in accordance with Section 59-2-1004, the assessed value given to the review
121 property by a county board of equalization after the appeal; or
122 (iii) for a review property for which the property owner or a county assessor appealed
123 the valuation or equalization in accordance with Section 59-2-1006 or sought judicial review of
124 the valuation or equalization in accordance with Section 59-1-602 or Title 63G, Chapter 4, Part
125 4, Judicial Review, the assessed value given to the review property by the commission.
126 (b) "Median property value change" means the midpoint of the property value changes
127 for all real property that is:
128 (i) of the same class of real property as the review property; and
129 (ii) located within the same county and within the same market area as the review
130 property.
131 (c) "Property value change" means the percentage change in the fair market value of
132 real property between January 1 of the previous year and January 1 of the current year.
133 (d) "Review property" means real property located in the county:
134 (i) that between January 1 of the previous year and January 1 of the current year has not
135 been improved; and
136 (ii) for which the county assessor did not conduct a detailed review of property
137 characteristics during the current taxable year.
138 (e) "Threshold increase" means an increase in a review property's assessed value for the
139 current taxable year compared to the final assessed value of the review property for the
140 previous taxable year that is:
141 (i) the median property value change plus 15%; and
142 (ii) $10,000.
143 (2) (a) Before completing and delivering the assessment book to the county auditor in
144 accordance with Section 59-2-311, the county assessor shall review an assessment of review
145 property for which the assessed value for the current taxable year is equal to or exceeds the
146 threshold increase.
147 (b) The county assessor shall retain a record of the properties for which the county
148 assessor conducts a review in accordance with this section and the results of that review.
149 (3) (a) If the county assessor determines that the assessed value of the review property
150 reflects the review property's fair market value, the county assessor shall not adjust the review
151 property's assessed value.
152 (b) If the county assessor determines that the assessed value of the review property
153 does not reflect the review property's fair market value, the county assessor shall adjust the
154 assessed value of the review property to reflect the fair market value.
155 (4) The review process described in this section does not supersede or otherwise affect
156 a taxpayer's right to appeal or to seek judicial review of the valuation or equalization of the
157 taxpayer's review property in accordance with:
158 (a) this part;
159 (b) Title 59, Chapter 1, Part 6, Judicial Review; or
160 (c) Title 63G, Chapter 4, Part 4, Judicial Review.
161 Section 4. Section 59-2-311 is amended to read:
162 59-2-311. Completion and delivery of assessment book -- Signed statement
163 required -- Contents of signed statement -- Adjustment of assessment in assessment book.
164 (1) [
165 the assessment book to the county auditor.
166 (2) The county assessor shall subscribe and sign a statement in the assessment book
167 substantially as follows:
168 I, ____, the assessor of ____ County, do swear that before May 22, _______(year), I
169 made diligent inquiry and examination, and either personally or by deputy, established the
170 value of all of the property within the county subject to assessment by me; that the property has
171 been assessed on the assessment book equally and uniformly according to the best of my
172 judgment, information, and belief at its fair market value; that I have faithfully complied with
173 all the duties imposed on the assessor under the revenue laws including the requirements of
174 Section 59-2-303.1; and that I have not imposed any unjust or double assessments through
175 malice or ill will or otherwise, or allowed anyone to escape a just and equal assessment through
176 favor or reward, or otherwise.
177 (3) Before completing and delivering the assessment book under Subsection (1), the
178 county assessor shall adjust the assessment of property in the assessment book to reflect an
179 adjustment in the taxable value of any property if the adjustment in taxable value is made:
180 (a) by the county board of equalization [
181 59-2-1004.5[
182 [
183 (b) by the county assessor in accordance with Section 59-2-303.2.
184 Section 5. Section 59-2-1004 is amended to read:
185 59-2-1004. Appeal to county board of equalization -- Real property -- Time
186 period for appeal -- Decision of board -- Extensions approved by commission -- Appeal to
187 commission.
188 (1) As used in this section:
189 (a) "Final assessed value" means:
190 (i) for real property for which the property owner appealed the valuation or
191 equalization in accordance with Section 59-2-1004, the assessed value given to the real
192 property by a county board of equalization after the appeal; or
193 (ii) for real property for which the property owner or the county assessor appealed the
194 valuation or equalization in accordance with Section 59-2-1006 or sought judicial review of the
195 valuation or equalization in accordance with Section 59-1-602 or Title 63G, Chapter 4, Part 4,
196 Judicial Review, the assessed value given to the real property by the commission.
197 (b) "Inflation adjusted value" means the final assessed value for the previous taxable
198 year of the real property that is the subject of the appeal increased by the median property value
199 increase.
200 (c) "Median property value increase" means the midpoint of the property value
201 changes, if the midpoint is greater than zero, for all real property that is:
202 (i) of the same class of real property as the qualified property; and
203 (ii) located within the same county and within the same market area as the qualified
204 property.
205 (d) "Property value change" means the percentage change in the fair market value of
206 real property between January 1 of the previous year and January 1 of the current year.
207 (e) "Qualified real property" means real property:
208 (i) for which:
209 (A) the taxpayer or a county assessor appealed the valuation or equalization in
210 accordance with Section 59-2-1004 or 59-2-1006 during the previous year; and
211 (B) as a result of the appeal described in Subsection (1)(e)(i)(A), a county board of
212 equalization or the commission reduced the assessed value for the previous taxable year;
213 (ii) that the taxpayer has not improved between January 1 of the previous taxable year
214 and January 1 of the current taxable year; and
215 (iii) for which the assessed value for the current taxable year is higher than the inflation
216 adjusted value.
217 [
218 taxpayer's real property may make an application to appeal by:
219 (i) filing the application with the county board of equalization within the time period
220 described in Subsection [
221 (ii) making an application by telephone or other electronic means within the time
222 period described in Subsection [
223 Subsection [
224 application by telephone or other electronic means.
225 (b) (i) The county board of equalization shall make a rule describing the contents of the
226 application [
227 (ii) In addition to any information the county board of equalization requires, the
228 application shall include information about:
229 (A) the burden of proof in an appeal involving qualified real property; and
230 (B) the process for a taxpayer who owns qualified real property to learn the inflation
231 adjusted value of the qualified real property.
232 [
233 Subsection (1), a taxpayer shall make an application to appeal the valuation or the equalization
234 of the taxpayer's real property on or before the later of:
235 (i) September 15 of the current calendar year; or
236 (ii) the last day of a 45-day period beginning on the day on which the county auditor
237 provides the notice under Section 59-2-919.1.
238 (b) [
239 Utah Administrative Rulemaking Act, the commission shall make rules providing for
240 circumstances under which the county board of equalization is required to accept an application
241 to appeal that is filed after the time period prescribed in Subsection [
242 [
243 (4) (a) Except as provided in Subsection (4)(b), the taxpayer shall include in the
244 application under Subsection [
245 value of the property and any evidence [
246 the [
247 comparable properties.
248 (b) (i) For an appeal involving qualified real property:
249 (A) the county board of equalization shall presume that the fair market value of the
250 qualified real property is equal to the inflation adjusted value; and
251 (B) except as provided in Subsection (4)(b)(ii), the taxpayer may provide the
252 information described in Subsection (4)(a).
253 (ii) If the taxpayer seeks to prove that the fair market value of the qualified real
254 property is below the inflation adjusted value, the taxpayer shall provide the information
255 described in Subsection (4)(a).
256 [
257 behalf of an owner or a county assessor, the county board of equalization shall consider and
258 weigh:
259 (a) the accuracy, reliability, and comparability of the evidence presented by the owner
260 or the county assessor;
261 (b) if submitted, the sales price of relevant property that was under contract for sale as
262 of the lien date but sold after the lien date;
263 (c) if submitted, the sales offering price of property that was offered for sale as of the
264 lien date but did not sell, including considering and weighing the amount of time for which,
265 and manner in which, the property was offered for sale; and
266 (d) if submitted, other evidence that is relevant to determining the fair market value of
267 the property.
268 [
269 [
270 (b) The county board of equalization shall make a decision on each appeal filed in
271 accordance with this section within [
272 taxpayer makes an application [
273 (c) The commission may approve the extension of a time period provided for in
274 Subsection [
275 (d) Unless the commission approves the extension of a time period under Subsection
276 [
277 time period described in Subsection [
278 (i) list the appeal, by property owner and parcel number, on the agenda for the next
279 meeting [
280 period described in Subsection [
281 (ii) hear the appeal at the meeting described in Subsection [
282 (e) The decision of the county board of equalization shall contain:
283 (i) a determination of the valuation of the property based on fair market value[
284 (ii) a conclusion that the fair market value is properly equalized with the assessed value
285 of comparable properties.
286 (f) If no evidence is presented before the county board of equalization, [
287
288 met.
289 (g) (i) If the fair market value of the property that is the subject of the appeal deviates
290 plus or minus 5% from the assessed value of comparable properties, the county board of
291 equalization shall adjust the valuation of the appealed property [
292 value equalized with the assessed value of comparable properties.
293 (ii) Subject to Sections 59-2-301.1, 59-2-301.2, 59-2-301.3, and 59-2-301.4, equalized
294 value established under Subsection [
295 purposes until the county assessor is able to evaluate and equalize the assessed value of all
296 comparable properties to bring [
297 market value.
298 [
299 equalization, the taxpayer may file an appeal with the commission as [
300 Section 59-2-1006.
301 [
302 taxes on property assessed by that county to file property tax appeals applications under this
303 section by telephone or other electronic means.
304 Section 6. Section 59-2-1004.5 is amended to read:
305 59-2-1004.5. Valuation adjustment for decrease in taxable value caused by a
306 natural disaster.
307 (1) For purposes of this section:
308 (a) [
309 (i) an explosion;
310 (ii) fire;
311 (iii) a flood;
312 (iv) a storm;
313 (v) a tornado;
314 (vi) winds;
315 (vii) an earthquake;
316 (viii) lightning;
317 (ix) any adverse weather event; or
318 (x) any event similar to an event described in this Subsection (1), as determined by the
319 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
320 Rulemaking Act[
321 (b) "[
322 a natural disaster.
323 (2) Except as provided in Subsection (3), if, during a calendar year, property sustains a
324 decrease in taxable value that is caused by natural disaster damage, the owner of the property
325 may apply to the county board of equalization for an adjustment in the taxable value of the
326 owner's property as provided in Subsection (4).
327 (3) [
328 adjustment described in this section if the decrease in taxable value described in Subsection (2)
329 is:
330 (a) due to the intentional action or inaction of the owner; or
331 (b) less than 30% of the taxable value of the property described in Subsection (2)
332 before the decrease in taxable value described in Subsection (2).
333 (4) (a) To receive the valuation adjustment described in Subsection (2), the owner of
334 the property shall file an application for the valuation adjustment with the county board of
335 equalization on or before the later of:
336 (i) the deadline described in Subsection 59-2-1004[
337 (ii) 45 days after the day on which the natural disaster damage described in Subsection
338 (2) occurs.
339 (b) The county board of equalization shall hold a hearing:
340 (i) within 30 days [
341 the application described in Subsection (4)(a) [
342 (ii) following the procedures and requirements of Section 59-2-1001.
343 (c) At the hearing described in Subsection (4)(b), the applicant shall have the burden of
344 proving, by a preponderance of the evidence:
345 (i) that the property sustained a decrease in taxable value, that:
346 (A) was caused by natural disaster damage; and
347 (B) is at least 30% of the taxable value of the property described in this Subsection
348 (4)(c)(i) before the decrease in taxable value described in this Subsection (4)(c)(i);
349 (ii) the amount of the decrease in taxable value described in Subsection (4)(c)(i); and
350 (iii) that the decrease in taxable value described in Subsection (4)(c)(i) is not due to the
351 action or inaction of the applicant.
352 (d) If the county board of equalization determines that the applicant has met the burden
353 of proof described in Subsection (4)(c), the county board of equalization shall reduce the
354 valuation of the property described in Subsection (4)(c)(i) by an amount equal to the decrease
355 in taxable value of the property multiplied by the percentage of the calendar year remaining
356 after the natural disaster damage occurred.
357 (e) The decision of the board of equalization shall be provided to the applicant, in
358 writing, within 30 days [
359 the hearing described in Subsection (4)(b) [
360 (5) An applicant that is dissatisfied with a decision of the county board of equalization
361 under this section may appeal that decision under Section 59-2-1006.
362 Section 7. Effective date.
363 If approved by two-thirds of all the members elected to each house, this bill takes effect
364 upon approval by the governor, or the day following the constitutional time limit of Utah
365 Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
366 the date of veto override.