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8 LONG TITLE
9 General Description:
10 This bill amends provisions related to property tax exemptions, deferrals, and
11 abatements.
12 Highlighted Provisions:
13 This bill:
14 ▸ defines terms;
15 ▸ repeals outdated provisions related to property tax exemptions, deferrals, and
16 abatements;
17 ▸ reorganizes, redrafts, and updates existing provisions related to property tax
18 exemptions, deferrals, and abatements;
19 ▸ broadens the appeal right for a person who is dissatisfied with a tax relief decision;
20 ▸ expands the armed forces property tax exemption; and
21 ▸ makes technical and conforming changes.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 This bill provides a special effective date.
26 Utah Code Sections Affected:
27 AMENDS:
28 59-2-1006, as last amended by Laws of Utah 2013, Chapter 180
29 59-2-1101, as last amended by Laws of Utah 2018, Chapter 415
30 59-2-1102, as last amended by Laws of Utah 2015, Chapter 129
31 59-2-1202, as last amended by Laws of Utah 2017, Chapter 391
32 ENACTS:
33 59-2-1801, Utah Code Annotated 1953
34 59-2-1802, Utah Code Annotated 1953
35 59-2-1803, Utah Code Annotated 1953
36 59-2-1804, Utah Code Annotated 1953
37 59-2-1805, Utah Code Annotated 1953
38 59-2-1901, Utah Code Annotated 1953
39 59-2-1902, Utah Code Annotated 1953
40 59-2-1903, Utah Code Annotated 1953
41 59-2-1904, Utah Code Annotated 1953
42 59-2-1905, Utah Code Annotated 1953
43 REPEALS:
44 59-2-1104, as last amended by Laws of Utah 2018, Chapter 39
45 59-2-1105, as last amended by Laws of Utah 2017, Chapter 189
46 59-2-1107, as last amended by Laws of Utah 2001, Chapters 221 and 310
47 59-2-1108, as last amended by Laws of Utah 2013, Chapter 19
48 59-2-1109, as last amended by Laws of Utah 2018, Chapter 310
49
50 Be it enacted by the Legislature of the state of Utah:
51 Section 1. Section 59-2-1006 is amended to read:
52 59-2-1006. Appeal to commission -- Duties of auditor -- Decision by commission.
53 (1) Any person dissatisfied with the decision of the county board of equalization
54 concerning the assessment and equalization of any property, or the determination of any
55 exemption in which the person has an interest, or a tax relief decision made under designated
56 decision-making authority as described in Section 59-2-1101, may appeal that decision to the
57 commission by filing a notice of appeal specifying the grounds for the appeal with the county
58 auditor within 30 days after the final action of the county board or entity with designated
59 decision-making authority described in Section 59-2-1101.
60 (2) The auditor shall:
61 (a) file one notice with the commission;
62 (b) certify and transmit to the commission:
63 (i) the minutes of the proceedings of the county board of equalization or entity with
64 designated decision-making authority for the matter appealed;
65 (ii) all documentary evidence received in that proceeding; and
66 (iii) a transcript of any testimony taken at that proceeding that was preserved; and
67 (c) if the appeal is from a hearing where an exemption was granted or denied, certify
68 and transmit to the commission the written decision of:
69 (i) the board of equalization as required by Section 59-2-1102; or
70 (ii) the entity with designated decision-making authority.
71 (3) In reviewing [
72 the commission may:
73 (a) admit additional evidence;
74 (b) issue orders that it considers to be just and proper; and
75 (c) make any correction or change in the assessment or order of the county board of
76 equalization or entity with decision-making authority.
77 (4) In reviewing evidence submitted to the commission [
78
79 (a) the accuracy, reliability, and comparability of the evidence presented [
80
81 (b) if submitted, the sales price of relevant property that was under contract for sale as
82 of the lien date but sold after the lien date;
83 (c) if submitted, the sales offering price of property that was offered for sale as of the
84 lien date but did not sell, including considering and weighing the amount of time for which,
85 and manner in which, the property was offered for sale; and
86 (d) if submitted, other evidence that is relevant to determining the fair market value of
87 the property.
88 (5) In reviewing [
89 the commission shall adjust property valuations to reflect a value equalized with the assessed
90 value of other comparable properties if:
91 (a) the issue of equalization of property values is raised; and
92 (b) the commission determines that the property that is the subject of the appeal
93 deviates in value plus or minus 5% from the assessed value of comparable properties.
94 (6) The commission shall decide all appeals taken pursuant to this section not later than
95 March 1 of the following year for real property and within 90 days for personal property, and
96 shall report its decision, order, or assessment to the county auditor, who shall make all changes
97 necessary to comply with the decision, order, or assessment.
98 Section 2. Section 59-2-1101 is amended to read:
99 59-2-1101. Definitions -- Exemption of certain property -- Proportional payments
100 for certain property -- County legislative body authority to adopt rules or ordinances.
101 (1) As used in this section:
102 (a) "Educational purposes" includes:
103 (i) the physical or mental teaching, training, or conditioning of competitive athletes by
104 a national governing body of sport recognized by the United States Olympic Committee that
105 qualifies as being tax exempt under Section 501(c)(3), Internal Revenue Code; and
106 (ii) an activity in support of or incidental to the teaching, training, or conditioning
107 described in Subsection (1)(a)(i).
108 (b) "Exclusive use exemption" means a property tax exemption under Subsection
109 (3)(a)(iv), for property owned by a nonprofit entity used exclusively for religious, charitable, or
110 educational purposes.
111 (c) "Government exemption" means a property tax exemption provided under
112 Subsection (3)(a)(i), (ii), or (iii).
113 (d) "Nonprofit entity" includes an entity if the:
114 (i) entity is treated as a disregarded entity for federal income tax purposes;
115 (ii) entity is wholly owned by, and controlled under the direction of, a nonprofit entity;
116 and
117 (iii) net earnings and profits of the entity irrevocably inure to the benefit of a nonprofit
118 entity.
119 (e) "Tax relief" means an exemption, deferral, or abatement that is authorized by this
120 part, Part 18, Tax Deferral and Tax Abatement, or Part 19, Armed Forces Exemptions.
121 (2) (a) Except as provided in Subsection (2)(b) or (c), tax relief may be allowed only if
122 the claimant is the owner of the property as of January 1 of the year the exemption is claimed.
123 (b) Notwithstanding Subsection (2)(a), a claimant shall collect and pay a proportional
124 tax based upon the length of time that the property was not owned by the claimant if:
125 (i) the claimant is a federal, state, or political subdivision entity described in
126 Subsection (3)(a)(i), (ii), or (iii); or
127 (ii) pursuant to Subsection (3)(a)(iv):
128 (A) the claimant is a nonprofit entity; and
129 (B) the property is used exclusively for religious, charitable, or educational purposes.
130 (c) Subsection (2)(a) does not apply to an exemption [
131 described in Part 19, Armed Forces Exemptions .
132 (3) (a) The following property is exempt from taxation:
133 (i) property exempt under the laws of the United States;
134 (ii) property of:
135 (A) the state;
136 (B) school districts; and
137 (C) public libraries;
138 (iii) except as provided in Title 11, Chapter 13, Interlocal Cooperation Act, property of:
139 (A) counties;
140 (B) cities;
141 (C) towns;
142 (D) local districts;
143 (E) special service districts; and
144 (F) all other political subdivisions of the state;
145 (iv) property owned by a nonprofit entity used exclusively for religious, charitable, or
146 educational purposes;
147 (v) places of burial not held or used for private or corporate benefit;
148 (vi) farm machinery and equipment;
149 (vii) a high tunnel, as defined in Section 10-9a-525;
150 (viii) intangible property; and
151 (ix) the ownership interest of an out-of-state public agency, as defined in Section
152 11-13-103:
153 (A) if that ownership interest is in property providing additional project capacity, as
154 defined in Section 11-13-103; and
155 (B) on which a fee in lieu of ad valorem property tax is payable under Section
156 11-13-302.
157 (b) For purposes of a property tax exemption for property of school districts under
158 Subsection (3)(a)(ii)(B), a charter school under Title 53G, Chapter 5, Charter Schools, is
159 considered to be a school district.
160 (4) Subject to Subsection (5), if property that is allowed an exclusive use exemption or
161 a government exemption ceases to qualify for the exemption because of a change in the
162 ownership of the property:
163 (a) the new owner of the property shall pay a proportional tax based upon the period of
164 time:
165 (i) beginning on the day that the new owner acquired the property; and
166 (ii) ending on the last day of the calendar year during which the new owner acquired
167 the property; and
168 (b) the new owner of the property and the person from whom the new owner acquires
169 the property shall notify the county assessor, in writing, of the change in ownership of the
170 property within 30 days from the day that the new owner acquires the property.
171 (5) Notwithstanding Subsection (4)(a), the proportional tax described in Subsection
172 (4)(a):
173 (a) is subject to any exclusive use exemption or government exemption that the
174 property is entitled to under the new ownership of the property; and
175 (b) applies only to property that is acquired after December 31, 2005.
176 (6) A county legislative body may adopt rules or ordinances to:
177 (a) effectuate the exemptions, deferrals, abatements, or other relief from taxation
178 provided in this part, Part 18, Tax Deferral and Tax Abatement, or Part 19, Armed Forces
179 Exemptions; and
180 (b) designate one or more persons to perform the functions given the county under this
181 part, Part 18, Tax Deferral and Tax Abatement, or Part 19, Armed Forces Exemptions.
182 (7) If a person is dissatisfied with a tax relief decision made under designated
183 decision-making authority as described in Subsection (6)(b), that person may appeal the
184 decision to the commission under Section 59-2-1006.
185 Section 3. Section 59-2-1102 is amended to read:
186 59-2-1102. Determination of exemptions by board of equalization -- Appeal --
187 Application for exemption -- Annual statement -- Exceptions.
188 (1) (a) For property assessed under Part 3, County Assessment, the county board of
189 equalization may, after giving notice in a manner prescribed by rule, determine whether certain
190 property within the county is exempt from taxation.
191 (b) The decision of the county board of equalization described in Subsection (1)(a)
192 shall:
193 (i) be in writing; and
194 (ii) include:
195 (A) a statement of facts; and
196 (B) the statutory basis for its decision.
197 (c) Except as provided in Subsection (11)(a), a copy of the decision described in
198 Subsection (1)(a) shall be sent on or before May 15 to the person applying for the exemption.
199 (2) The county board of equalization shall notify an owner of exempt property that has
200 previously received an exemption but failed to file an annual statement in accordance with
201 Subsection (9)(c), of the county board of equalization's intent to revoke the exemption on or
202 before April 1.
203 (3) (a) Except as provided in Subsection (8) and subject to Subsection (9), a reduction
204 may not be made under this part or Part 18, Tax Deferral and Tax Abatement, in the value of
205 property and an exemption may not be granted under this part or Part 19, Armed Forces
206 Exemptions, unless the party affected or the party's agent:
207 (i) makes and files with the county board of equalization a written application for the
208 reduction or exemption, verified by signed statement; and
209 (ii) appears before the county board of equalization and shows facts upon which it is
210 claimed the reduction should be made, or exemption granted.
211 (b) Notwithstanding Subsection (9), the county board of equalization may waive:
212 (i) the application or personal appearance requirements of Subsection (3)(a), (4)(b), or
213 (9)(a); or
214 (ii) the annual statement requirements of Subsection (9)(c).
215 (4) (a) Before the county board of equalization grants any application for exemption or
216 reduction, the county board of equalization may examine under oath the person or agent
217 making the application.
218 (b) Except as provided in Subsection (3)(b), a reduction may not be made or exemption
219 granted unless the person or the agent making the application attends and answers all questions
220 pertinent to the inquiry.
221 (5) For the hearing on the application, the county board of equalization may subpoena
222 any witnesses, and hear and take any evidence in relation to the pending application.
223 (6) Except as provided in Subsection (11)(b), the county board of equalization shall
224 hold hearings and render a written decision to determine any exemption on or before May 1 in
225 each year.
226 (7) Any property owner dissatisfied with the decision of the county board of
227 equalization regarding any reduction or exemption may appeal to the commission under
228 Section 59-2-1006.
229 (8) Notwithstanding Subsection (3)(a), a county board of equalization may not require
230 an owner of property to file an application in accordance with this section in order to claim an
231 exemption for the property under the following:
232 (a) Subsections 59-2-1101(3)(a)(i) through (iii);
233 (b) Subsection 59-2-1101(3)(a)(vi) or (viii);
234 (c) Section 59-2-1110;
235 (d) Section 59-2-1111;
236 (e) Section 59-2-1112;
237 (f) Section 59-2-1113; or
238 (g) Section 59-2-1114.
239 (9) (a) Except as provided in Subsections (3)(b) and (9)(b), for property described in
240 Subsection 59-2-1101(3)(a)(iv) or (v), a county board of equalization shall, consistent with
241 Subsection (10), require an owner of that property to file an application in accordance with this
242 section in order to claim an exemption for that property.
243 (b) Notwithstanding Subsection (9)(a), a county board of equalization may not require
244 an owner of property described in Subsection 59-2-1101(3)(a)(iv) or (v) to file an application
245 under Subsection (9)(a) if:
246 (i) (A) the owner filed an application under Subsection (9)(a); or
247 (B) the county board of equalization waived the application requirements in accordance
248 with Subsection (3)(b);
249 (ii) the county board of equalization determines that the owner may claim an
250 exemption for that property; and
251 (iii) the exemption described in Subsection (9)(b)(ii) is in effect.
252 (c) (i) Except as provided in Subsection (3)(b), for the time period that an owner is
253 granted an exemption in accordance with this section for property described in Subsection
254 59-2-1101(3)(a)(iv) or (v), a county board of equalization shall require the owner to file an
255 annual statement on a form prescribed by the commission establishing that the property
256 continues to be eligible for the exemption.
257 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
258 commission shall make rules providing:
259 (A) the form for the annual statement required by Subsection (9)(c)(i);
260 (B) the contents of the form for the annual statement required by Subsection (9)(c)(i);
261 and
262 (C) procedures and requirements for making the annual statement required by
263 Subsection (9)(c)(i).
264 (iii) The commission shall make the form described in Subsection (9)(c)(ii)(A)
265 available to counties.
266 (10) (a) For purposes of this Subsection (10), "exclusive use exemption" is as defined
267 in Section 59-2-1101.
268 (b) (i) For purposes of Subsection (1)(a), and except as provided in Subsections
269 (10)(b)(ii) and (iii), when a person acquires property on or after January 1 that qualifies for an
270 exclusive use exemption, that person may apply for the exclusive use exemption on or before
271 the later of:
272 (A) the day set by rule as the deadline for filing a property tax exemption application;
273 or
274 (B) 30 days after the day on which the property is acquired.
275 (ii) Notwithstanding Subsection (10)(b)(i), a person who acquires property on or after
276 January 1, 2004, and before January 1, 2005, that qualifies for an exclusive use exemption, may
277 apply for the exclusive use exemption for the 2004 calendar year on or before September 30,
278 2005.
279 (iii) Notwithstanding Subsection (10)(b)(i), a person who acquires property on or after
280 January 1, 2005, and before January 1, 2006, that qualifies for an exclusive use exemption, may
281 apply for the exclusive use exemption for the 2005 calendar year on or before the later of:
282 (A) September 30, 2005; or
283 (B) 30 days after the day on which the property is acquired.
284 (11) (a) Notwithstanding Subsection (1)(c), if an application for an exemption is filed
285 under Subsection (10), a county board of equalization shall send a copy of the decision
286 described in Subsection (1)(c) to the person applying for the exemption on or before the later
287 of:
288 (i) May 15; or
289 (ii) 45 days after the day on which the application for the exemption is filed.
290 (b) Notwithstanding Subsection (6), if an application for an exemption is filed under
291 Subsection (10), a county board of equalization shall hold the hearing and render the decision
292 described in Subsection (6) on or before the later of:
293 (i) May 1; or
294 (ii) 30 days after the day on which the application for the exemption is filed.
295 Section 4. Section 59-2-1202 is amended to read:
296 59-2-1202. Definitions.
297 As used in this part:
298 (1) (a) "Claimant" means a homeowner or renter who:
299 (i) files a claim under this part;
300 (ii) is domiciled in this state for the entire calendar year for which a claim for relief is
301 filed under this part; and
302 (iii) on or before the December 31 of the year for which a claim for relief is filed under
303 this part, is:
304 (A) 65 years of age or older if the person was born on or before December 31, 1942;
305 (B) 66 years of age or older if the person was born on or after January 1, 1943, but on
306 or before December 31, 1959; or
307 (C) 67 years of age or older if the person was born on or after January 1, 1960.
308 (b) Notwithstanding Subsection (1)(a), "claimant" includes a surviving spouse:
309 (i) regardless of:
310 (A) the age of the surviving spouse; or
311 (B) the age of the deceased spouse at the time of death;
312 (ii) if the surviving spouse meets the requirements of this part except for the age
313 requirement;
314 (iii) if the surviving spouse is part of the same household of the deceased spouse at the
315 time of death of the deceased spouse; and
316 (iv) if the surviving spouse is unmarried at the time the surviving spouse files the
317 claim.
318 (c) If two or more individuals of a household are able to meet the qualifications for a
319 claimant, they may determine among them as to who the claimant shall be, but if they are
320 unable to agree, the matter shall be referred to the county legislative body for a determination
321 of the claimant of an owned residence and to the commission for a determination of the
322 claimant of a rented residence.
323 (2) (a) "Gross rent" means rental actually paid in cash or its equivalent solely for the
324 right of occupancy, at arm's-length, of a residence, exclusive of charges for any utilities,
325 services, furniture, furnishings, or personal appliances furnished by the landlord as a part of the
326 rental agreement.
327 (b) If a claimant occupies two or more residences in the year and does not own the
328 residence as of the lien date, "gross rent" means the total rent paid for the residences during the
329 one-year period for which the renter files a claim under this part.
330 (3) "Homeowner's credit" means a credit against a claimant's property tax liability.
331 (4) "Household" means the association of persons who live in the same dwelling,
332 sharing its furnishings, facilities, accommodations, and expenses.
333 (5) "Household income" means all income received by all persons of a household in:
334 (a) the calendar year preceding the calendar year in which property taxes are due; or
335 (b) for purposes of the renter's credit authorized by this part, the year for which a claim
336 is filed.
337 (6) (a) (i) "Income" means the sum of:
338 (A) federal adjusted gross income as defined in Section 62, Internal Revenue Code;
339 and
340 (B) all nontaxable income as defined in Subsection (6)(b).
341 (ii) "Income" does not include:
342 (A) aid, assistance, or contributions from a tax-exempt nongovernmental source;
343 (B) surplus foods;
344 (C) relief in kind supplied by a public or private agency; or
345 (D) relief provided under this part[
346 18, Tax Deferral and Tax Abatement.
347 (b) For purposes of Subsection (6)(a)(i), "nontaxable income" means amounts excluded
348 from adjusted gross income under the Internal Revenue Code, including:
349 (i) capital gains;
350 (ii) loss carry forwards claimed during the taxable year in which a claimant files for
351 relief under this part[
352 Tax Abatement;
353 (iii) depreciation claimed pursuant to the Internal Revenue Code by a claimant on the
354 residence for which the claimant files for relief under this part[
355
356 (iv) support money received;
357 (v) nontaxable strike benefits;
358 (vi) cash public assistance or relief;
359 (vii) the gross amount of a pension or annuity, including benefits under the Railroad
360 Retirement Act of 1974, 45 U.S.C. Sec. 231 et seq., and veterans disability pensions;
361 (viii) payments received under the Social Security Act;
362 (ix) state unemployment insurance amounts;
363 (x) nontaxable interest received from any source;
364 (xi) workers' compensation;
365 (xii) the gross amount of "loss of time" insurance; and
366 (xiii) voluntary contributions to a tax-deferred retirement plan.
367 (7) (a) "Property taxes accrued" means property taxes, exclusive of special
368 assessments, delinquent interest, and charges for service, levied on a claimant's residence in
369 this state.
370 (b) For a mobile home, "property taxes accrued" includes taxes imposed on both the
371 land upon which the home is situated and on the structure of the home itself, whether classified
372 as real property or personal property taxes.
373 (c) (i) Beginning on January 1, 1999, for a claimant who owns a residence, "property
374 taxes accrued" are the property taxes described in Subsection (7)(a) levied for the calendar year
375 on 35% of the fair market value of the residence as reflected on the assessment roll.
376 (ii) The amount described in Subsection (7)(c)(i) constitutes:
377 (A) a tax abatement for the poor in accordance with Utah Constitution, Article XIII,
378 Section 3; and
379 (B) the residential exemption provided for in Section 59-2-103.
380 (d) (i) For purposes of this Subsection (7) property taxes accrued are levied on the lien
381 date.
382 (ii) If a claimant owns a residence on the lien date, property taxes accrued mean taxes
383 levied on the lien date, even if that claimant does not own a residence for the entire year.
384 (e) When a household owns and occupies two or more different residences in this state
385 in the same calendar year, property taxes accrued shall relate only to the residence occupied on
386 the lien date by the household as its principal place of residence.
387 (f) (i) If a residence is an integral part of a large unit such as a farm or a multipurpose
388 or multidwelling building, property taxes accrued shall be the same percentage of the total
389 property taxes accrued as the value of the residence is of the total value.
390 (ii) For purposes of this Subsection (7)(f), "unit" refers to the parcel of property
391 covered by a single tax statement of which the residence is a part.
392 (8) (a) As used in this section, "rental assistance payment" means any payment that:
393 (i) is made by a:
394 (A) governmental entity; or
395 (B) (I) charitable organization; or
396 (II) religious organization; and
397 (ii) is specifically designated for the payment of rent of a claimant:
398 (A) for the calendar year for which the claimant seeks a renter's credit under this part;
399 and
400 (B) regardless of whether the payment is made to the:
401 (I) claimant; or
402 (II) landlord; and
403 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
404 commission may make rules defining the terms:
405 (i) "governmental entity";
406 (ii) "charitable organization"; or
407 (iii) "religious organization."
408 (9) (a) "Residence" means the dwelling, whether owned or rented, and so much of the
409 land surrounding it, not exceeding one acre, as is reasonably necessary for use of the dwelling
410 as a home, and may consist of a part of a multidwelling or multipurpose building and a part of
411 the land upon which it is built and includes a mobile home or houseboat.
412 (b) "Residence" does not include personal property such as furniture, furnishings, or
413 appliances.
414 (c) For purposes of this Subsection (9), "owned" includes a vendee in possession under
415 a land contract or one or more joint tenants or tenants in common.
416 Section 5. Section 59-2-1801 is enacted to read:
417
418 59-2-1801. Definitions.
419 As used in this part:
420 (1) "Abatement" means a tax abatement described in Section 59-2-1803.
421 (2) "Deferral" means a tax deferral described in Section 59-2-1802.
422 (3) "Indigent individual" is a poor individual as described in Utah Constitution, Article
423 XIII, Section 3, Subsection (4), who:
424 (a) (i) is at least 65 years old; or
425 (ii) is less than 65 years old and:
426 (A) the county finds that extreme hardship would prevail on the individual if the
427 county does not defer or abate the individual's taxes; or
428 (B) the individual has a disability;
429 (b) has a total household income, as defined in Section 59-2-1202, of less than the
430 maximum household income certified to a homeowner's credit described in Subsection
431 59-2-1208(1);
432 (c) resides for at least 10 months of the year in the residence that would be subject to
433 the requested abatement or deferral; and
434 (d) cannot pay the tax assessed on the individual's residence when the tax becomes due.
435 (4) "Property taxes due" means the taxes due on an indigent individual's property:
436 (a) for which a county granted an abatement under Section 59-2-1803; and
437 (b) for the calendar year for which the county grants the abatement.
438 (5) "Property taxes paid" means an amount equal to the sum of:
439 (a) the amount of property taxes the indigent individual paid for the taxable year for
440 which the indigent individual applied for the abatement; and
441 (b) the amount of the abatement the county grants under Section 59-2-1803.
442 (6) "Relative" means a spouse, child, parent, grandparent, grandchild, brother, sister,
443 parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or a spouse
444 of any of these individuals.
445 (7) "Residence" means real property where an individual resides, including:
446 (a) a mobile home, as defined in Section 41-1a-102; or
447 (b) a manufactured home, as defined in Section 41-1a-102.
448 Section 6. Section 59-2-1802 is enacted to read:
449 59-2-1802. Tax deferral.
450 (1) (a) In accordance with this part, a county may defer a tax on residential property
451 after giving notice to the taxpayer.
452 (b) In determining a deferral, a county shall consider an asset transferred to a relative
453 by an applicant for deferral, if the transfer took place during the three years prior to the day on
454 which the applicant applied for deferral.
455 (2) A county may grant a deferral at any time:
456 (a) after the holder of each mortgage or trust deed outstanding on the property gives
457 written approval of the application; and
458 (b) if the applicant is not the owner of income-producing assets that could be liquidated
459 to pay the tax.
460 (3) Taxes deferred by the county accumulate with interest as a lien against the
461 residential property, as described in Subsection (4), until the owner sells or otherwise disposes
462 of the residential property.
463 (4) Deferred taxes under this section:
464 (a) bear interest at an interest rate equal to the lesser of:
465 (i) 6%; or
466 (ii) the federal funds rate target:
467 (A) established by the Federal Open Markets Committee; and
468 (B) that exists on the January 1 immediately preceding the day on which the taxes are
469 deferred; and
470 (b) have the same status as a lien as described in Sections 59-2-1301 and 59-2-1325.
471 (5) If the owner of residential property that is granted deferral under this section is an
472 indigent individual, during the period of deferral the county may not subject the residential
473 property to a tax sale.
474 Section 7. Section 59-2-1803 is enacted to read:
475 59-2-1803. Tax abatement for indigent individuals-- Maximum amount -- Refund.
476 (1) In accordance with this part, a county may remit or abate the taxes of an indigent
477 individual in an amount not more than the lesser of:
478 (a) the amount provided as a homeowner's credit for the lowest household income
479 bracket as described in Section 59-2-1208; or
480 (b) 50% of the total tax levied for the indigent individual for the current year.
481 (2) A county that grants an abatement to an indigent individual shall refund to the
482 indigent individual an amount that is equal to the amount by which the indigent individual's
483 property taxes paid exceed the indigent individual's property taxes due, if the amount is at least
484 $1.
485 Section 8. Section 59-2-1804 is enacted to read:
486 59-2-1804. Application for tax deferral or tax abatement.
487 (1) (a) Except as provided in Subsection (1)(b), an applicant for deferral or abatement
488 for the current tax year shall file an application on or before September 1 with the county in
489 which the applicant's property is located.
490 (b) If a county finds good cause exists, the county may extend until December 31 the
491 deadline described in Subsection (1)(a).
492 (c) An indigent individual may apply and potentially qualify for deferral, abatement, or
493 both.
494 (2) An applicant shall include in an application a signed statement that describes the
495 eligibility of the applicant for deferral or abatement.
496 (3) Both spouses shall sign an application if the application seeks a deferral or
497 abatement on a residence:
498 (a) in which both spouses reside; and
499 (b) that the spouses own as joint tenants.
500 (4) If an applicant is dissatisfied with a county's decision on the applicant's application
501 for deferral or abatement, the applicant may appeal the decision to the commission in
502 accordance with Section 59-2-1006.
503 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
504 commission may make rules to implement this section.
505 Section 9. Section 59-2-1805 is enacted to read:
506 59-2-1805. Treatment of trusts.
507 If an applicant for deferral or abatement is the grantor of a trust holding title to real or
508 tangible personal property for which a deferral or abatement is claimed, a county may allow the
509 applicant to claim a portion of the deferral or abatement and be treated as the owner of that
510 portion of the property held in trust, if the applicant proves to the satisfaction of the county
511 that:
512 (1) title to the portion of the trust will revest in the applicant upon the exercise of a
513 power by:
514 (a) the claimant as grantor of the trust;
515 (b) a nonadverse party; or
516 (c) both the claimant and a nonadverse party;
517 (2) title will revest as described in Subsection (1), regardless of whether the power
518 described in Subsection (1) is a power to revoke, terminate, alter, amend, or appoint;
519 (3) the applicant is obligated to pay the taxes on that portion of the trust property
520 beginning January 1 of the year the claimant claims the deferral or abatement; and
521 (4) the claimant satisfies the requirements described in this part for deferral or
522 abatement.
523 Section 10. Section 59-2-1901 is enacted to read:
524
525 59-2-1901. Definitions.
526 As used in this section:
527 (1) "Active component of the United States Armed Forces" means the same as that
528 term is defined in Section 59-10-1027.
529 (2) "Active duty claimant" means a member of an active component of the United
530 States Armed Forces or a reserve component of the United States Armed Forces who:
531 (a) performed qualifying active duty military service; and
532 (b) applies for an exemption described in Section 59-2-1902.
533 (3) "Adjusted taxable value limit" means:
534 (a) for the calendar year that begins on January 1, 2015, $252,126; or
535 (b) for each calendar year after the calendar year that begins on January 1, 2015, the
536 amount of the adjusted taxable value limit for the previous year plus an amount calculated by
537 multiplying the amount of the adjusted taxable value limit for the previous year by the actual
538 percent change in the consumer price index during the previous calendar year.
539 (4) "Consumer price index" means the same as that term is described in Section 1(f)(4),
540 Internal Revenue Code, and defined in Section 1(f)(5), Internal Revenue Code.
541 (5) "Deceased veteran with a disability" means a deceased individual who was a
542 veteran with a disability at the time the individual died.
543 (6) "Military entity" means:
544 (a) the United States Department of Veterans Affairs;
545 (b) an active component of the United States Armed Forces; or
546 (c) a reserve component of the United States Armed Forces.
547 (7) "Primary residence" includes the residence of a individual who does not reside in
548 the residence if the individual:
549 (a) does not reside in the residence because the individual is admitted as an inpatient at
550 a health care facility as defined in Section 26-55-102; and
551 (b) otherwise meets the requirements of this part.
552 (8) "Qualifying active duty military service" means at least 200 days, regardless of
553 whether consecutive, in any continuous 365-day period of active duty military service outside
554 the state in an active component of the United States Armed Forces or a reserve component of
555 the United States Armed Forces, if the days of active duty military service:
556 (a) were completed in the year before an individual applies for an exemption described
557 in Section 59-2-1902; and
558 (b) have not previously been counted as qualifying active duty military service for
559 purposes of qualifying for an exemption described in Section 59-2-1902 or applying for the
560 exemption described in Section 59-2-1902.
561 (9) "Statement of disability" means the statement of disability described in Section
562 59-2-1904.
563 (10) "Reserve component of the United States Armed Forces" means the same as that
564 term is defined in Section 59-10-1027.
565 (11) "Residence" means real property where an individual resides, including:
566 (a) a mobile home, as defined in Section 41-1a-102; or
567 (b) a manufactured home, as defined in Section 41-1a-102.
568 (12) "Veteran claimant" means one of the following individuals who applies for an
569 exemption described in Section 59-2-1903:
570 (a) a veteran with a disability;
571 (b) the unmarried surviving spouse:
572 (i) of a deceased veteran with a disability; or
573 (ii) a veteran who was killed in action or died in the line of duty; or
574 (c) a minor orphan:
575 (i) of a deceased veteran with a disability; or
576 (ii) a veteran who was killed in action or died in the line of duty.
577 (13) "Veteran who was killed in action or died in the line of duty" means an individual
578 who was killed in action or died in the line of duty in an active component of the United States
579 Armed Forces or a reserve component of the United States Armed Forces, regardless of
580 whether that individual had a disability at the time that individual was killed in action or died
581 in the line of duty.
582 (14) "Veteran with a disability" means an individual with a disability who, during
583 military training or a military conflict, acquired a disability in the line of duty in an active
584 component of the United States Armed Forces or a reserve component of the United States
585 Armed Forces, as determined by a military entity.
586 Section 11. Section 59-2-1902 is enacted to read:
587 59-2-1902. Active duty armed forces exemption -- Amount -- Application.
588 (1) As used in this section, "default application deadline" means the application
589 deadline described in Subsection (4)(a).
590 (2) (a) The total taxable value of an active duty claimant's primary residence is exempt
591 from taxation for the calendar year after the year in which the active duty claimant completed
592 qualifying military service.
593 (b) An active duty claimant may claim an exemption in accordance with this section if
594 the active duty claimant owns the property eligible for the exemption at any time during the
595 calendar year for which the active duty claimant claims the exemption.
596 (3) An active duty claimant shall:
597 (a) file an application as described in Subsection (4) in the year after the year during
598 which the active duty claimant completes the qualifying active duty military service; and
599 (b) if the active duty claimant meets the requirements of this section, claim one
600 exemption only in the year the active duty claimant files the application.
601 (4) (a) Except as provided in Subsection (5) or (6), an active duty claimant shall, on or
602 before September 1 of the calendar year for which the active duty claimant is applying for the
603 exemption, file an application for an exemption with the county in which the active duty
604 claimant resides on September 1 of that calendar year.
605 (b) An application described in Subsection (4)(a) shall include:
606 (i) a completed travel voucher or other satisfactory evidence of eligible military
607 service; and
608 (ii) a statement that lists the dates on which the 200 days of qualifying active duty
609 military service began and ended.
610 (c) A county that receives an application described in Subsection (4)(a) shall, within 30
611 days after the day on which the county received the application, provide the active duty
612 claimant with a receipt that states that the county received the active duty claimant's
613 application.
614 (5) A county may extend the default application deadline for an application described
615 in Subsection (4)(a) until December 31 of the year for which the active duty claimant is
616 applying for the exemption if the county finds that good cause exists to extend the default
617 application deadline.
618 (6) A county shall extend the default application deadline by one additional year if the
619 county legislative body determines that:
620 (a) the active duty claimant or a member of the active duty claimant's immediate family
621 had an illness or injury that prevented the active duty claimant from filing the application on or
622 before the default application deadline;
623 (b) a member of the active duty claimant's immediate family died during the calendar
624 year of the default application deadline;
625 (c) the active duty claimant was not physically present in the state for a time period of
626 at least six consecutive months during the calendar year of the default application deadline; or
627 (d) the failure of the active duty claimant to file the application on or before the default
628 application deadline:
629 (i) would be against equity or good conscience; and
630 (ii) was beyond the reasonable control of the active duty claimant.
631 (7) After issuing the receipt described in Subsection (4)(c), a county may not require an
632 active duty claimant to file another application under Subsection (4)(a), except under the
633 following circumstances:
634 (a) a change in the active duty claimant's ownership of the active duty claimant's
635 primary residence; or
636 (b) a change in the active duty claimant's occupancy of the primary residence for which
637 the active duty claimant claims an exemption under this section.
638 (8) A county may verify that real property for which an active duty claimant applies for
639 an exemption is the active duty claimant's primary residence.
640 (9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
641 commission may by rule:
642 (a) establish procedures and requirements for amending an application described in
643 Subsection (4);
644 (b) for purposes of Subsection (6), define the terms:
645 (i) "immediate family"; or
646 (ii) "physically present"; or
647 (c) for purposes of Subsection (6)(d), prescribe the circumstances under which the
648 failure of an active duty claimant to file an application on or before the default application
649 deadline:
650 (i) would be against equity or good conscience; and
651 (ii) is beyond the reasonable control of an active duty claimant.
652 Section 12. Section 59-2-1903 is enacted to read:
653 59-2-1903. Veteran armed forces exemption -- Amount.
654 (1) As used in this section, "eligible property" means property owned by a veteran
655 claimant that is:
656 (a) the veteran claimant's primary residence; or
657 (b) tangible personal property that:
658 (i) is held exclusively for personal use; and
659 (ii) is not used in a trade or business.
660 (2) In accordance with this part, the amount of taxable value of eligible property
661 described in Subsection (3) or (4) is exempt from taxation if the eligible property is owned by a
662 veteran claimant.
663 (3) (a) Except as provided in Subsection (4) and in accordance with this Subsection (3),
664 the amount of taxable value of eligible property that is exempt under Subsection (2) is equal to
665 the percentage of disability described in the statement of disability multiplied by the adjusted
666 taxable value limit.
667 (b) The amount of an exemption calculated under Subsection (3)(a) may not exceed the
668 taxable value of the eligible property.
669 (c) A county shall consider a veteran with a disability to have a 100% disability,
670 regardless of the percentage of disability described on the statement of disability, if the United
671 States Department of Veterans Affairs certifies the veteran in the classification of individual
672 unemployability.
673 (d) A county may not allow an exemption claimed under this section if the percentage
674 of disability listed on the statement of disability is less than 10%.
675 (4) The amount of taxable value of eligible property that is exempt under Subsection
676 (2) is equal to the total taxable value of the veteran claimant's eligible property if the property
677 is owned by:
678 (a) the unmarried surviving spouse of a veteran who was killed in action or died in the
679 line of duty;
680 (b) a minor orphan of a veteran who was killed in action or died in the line of duty; or
681 (c) the unmarried surviving spouse or minor orphan of a deceased veteran with a
682 disability:
683 (i) who served in the military service of the United States or the state prior to January
684 1, 1921; and
685 (ii) whose percentage of disability described in the statement of disability is 10% or
686 more.
687 (5) For purposes of this section and Section 59-2-1904, an individual who received an
688 honorable or general discharge from military service of an active component of the United
689 States Armed Forces or a reserve component of the United States Armed Forces:
690 (a) is presumed to be a citizen of the United States; and
691 (b) may not be required to provide additional proof of citizenship to establish that the
692 individual is a citizen of the United States.
693 (6) The Department of Veterans and Military Affairs created in Section 71-8-2 shall,
694 through an informal hearing held in accordance with Title 63G, Chapter 4, Administrative
695 Procedures Act, resolve each dispute arising under this section concerning an individual's
696 status as a veteran with a disability.
697 Section 13. Section 59-2-1904 is enacted to read:
698 59-2-1904. Veteran armed forces exemption -- Application.
699 (1) As used in this section, "default application deadline" means the application
700 deadline described in Subsection (3)(a).
701 (2) A veteran claimant may claim an exemption in accordance with Section 59-2-1903
702 and this section if the veteran claimant owns the property eligible for the exemption at any time
703 during the calendar year for which the veteran claimant claims the exemption.
704 (3) (a) Except as provided in Subsection (4) or (5), a veteran claimant shall, on or
705 before September 1 of the calendar year for which the veteran claimant is applying for the
706 exemption, file an application for an exemption described in Section 59-2-1903 with the county
707 in which the veteran claimant resides on September 1 of that calendar year.
708 (b) An application described in Subsection (3)(a) shall include:
709 (i) a copy of the veteran's certificate of discharge from military service or other
710 satisfactory evidence of eligible military service; and
711 (ii) for an application submitted under the circumstances described in Subsection
712 (5)(a), a statement, issued by a military entity, that gives the date on which the written decision
713 described in Subsection (5)(a) takes effect.
714 (c) A veteran claimant who is claiming an exemption for a veteran with a disability or a
715 deceased veteran with a disability, shall ensure that as part of the application described in this
716 Subsection (3), the county has on file, for the veteran related to the exemption, a statement of
717 disability:
718 (i) issued by a military entity; and
719 (ii) that lists the percentage of disability for the veteran with a disability or deceased
720 veteran with a disability.
721 (d) If a veteran claimant is in compliance with Subsection (3)(c), a county may not
722 require the veteran claimant to file another statement of disability, except under the following
723 circumstances:
724 (i) the percentage of disability has changed for the veteran with a disability or the
725 deceased veteran with a disability; or
726 (ii) the veteran claimant is not the same individual who filed an application for the
727 exemption for the calendar year immediately preceding the current calendar year.
728 (e) A county that receives an application described in Subsection (3)(a) shall, within 30
729 days after the day on which the county received the application, provide the veteran claimant
730 with a receipt that states that the county received the veteran claimant's application.
731 (4) A county may extend the default application deadline for an initial or amended
732 application until December 31 of the year for which the veteran claimant is applying for the
733 exemption if the county finds that good cause exists to extend the default application deadline.
734 (5) A county shall extend the default application deadline by one additional year if, on
735 or after January 4, 2004:
736 (a) a military entity issues a written decision that:
737 (i) (A) for a potential claimant who is a living veteran, determines the veteran is a
738 veteran with a disability; or
739 (B) for a potential claimant who is the unmarried surviving spouse or minor orphan of
740 a deceased veteran, determines the deceased veteran was a deceased veteran with a disability at
741 the time the deceased veteran with a disability died; and
742 (ii) takes effect in a year before the current calendar year; or
743 (b) the county legislative body determines that:
744 (i) the veteran claimant or a member of the veteran claimant's immediate family had an
745 illness or injury that prevented the veteran claimant from filing the application on or before the
746 default application deadline;
747 (ii) a member of the veteran claimant's immediate family died during the calendar year
748 of the default application deadline;
749 (iii) the veteran claimant was not physically present in the state for a time period of at
750 least six consecutive months during the calendar year of the default application deadline; or
751 (iv) the failure of the veteran claimant to file the application on or before the default
752 application deadline:
753 (A) would be against equity or good conscience; and
754 (B) was beyond the reasonable control of the veteran claimant.
755 (6) (a) A county shall allow a veteran claimant to amend an application described in
756 Subsection (3)(a) after the default application deadline if, on or after January 4, 2004, a military
757 entity issues a written decision:
758 (i) that the percentage of disability has changed:
759 (A) for a veteran with a disability, if the veteran with a disability is the veteran
760 claimant; or
761 (B) for a deceased veteran with a disability, if the claimant is the unmarried surviving
762 spouse or minor orphan of a deceased veteran with a disability; and
763 (ii) that takes effect in a year before the current calendar year.
764 (b) A veteran claimant who files an amended application under Subsection (6)(a) shall
765 include a statement, issued by a military entity, that gives the date on which the written
766 decision described in Subsection (6)(a) takes effect.
767 (7) After issuing the receipt described in Subsection (3)(e), a county may not require a
768 veteran claimant to file another application under Subsection (3)(a), except under the following
769 circumstances relating to the veteran claimant:
770 (a) the veteran claimant applies all or a portion of an exemption to tangible personal
771 property;
772 (b) the percentage of disability changes for a veteran with a disability or a deceased
773 veteran with a disability;
774 (c) the veteran with a disability dies;
775 (d) a change in the veteran claimant's ownership of the veteran claimant's primary
776 residence;
777 (e) a change in the veteran claimant's occupancy of the primary residence for which the
778 veteran claimant claims an exemption under this section; or
779 (f) for an exemption relating to a deceased veteran with a disability or a veteran who
780 was killed in action or died in the line of duty, the veteran claimant is not the same individual
781 who filed an application for the exemption for the calendar year immediately preceding the
782 current calendar year.
783 (8) If a veteran claimant is the grantor of a trust holding title to real or tangible personal
784 property for which an exemption described in Section 59-2-1903 is claimed, a county may
785 allow the veteran claimant to claim a portion of the exemption and be treated as the owner of
786 that portion of the property held in trust, if the veteran claimant proves to the satisfaction of the
787 county that:
788 (a) title to the portion of the trust will revest in the veteran claimant upon the exercise
789 of a power by:
790 (i) the veteran claimant as grantor of the trust;
791 (ii) a nonadverse party; or
792 (iii) both the veteran claimant and a nonadverse party;
793 (b) title will revest as described in Subsection (8)(a), regardless of whether the power
794 described in Subsection (8)(a) is a power to revoke, terminate, alter, amend, or appoint; and
795 (c) the veteran claimant satisfies the requirements described in this part for the
796 exemption described in Section 59-2-1903.
797 (9) A county may verify that real property for which a veteran claimant applies for an
798 exemption is the veteran claimant's primary residence.
799 (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
800 the commission may, by rule:
801 (a) establish procedures and requirements for amending an application described in
802 Subsection (3)(a);
803 (b) for purposes of Subsection (5)(b), define the terms:
804 (i) "immediate family"; or
805 (ii) "physically present"; or
806 (c) for purposes of Subsection (5)(b), prescribe the circumstances under which the
807 failure of a veteran claimant to file an application on or before the default application deadline:
808 (i) would be against equity or good conscience; and
809 (ii) is beyond the reasonable control of a veteran claimant.
810 Section 14. Section 59-2-1905 is enacted to read:
811 59-2-1905. Refund.
812 (1) As used in this section:
813 (a) "Property taxes and fees due" means:
814 (i) the taxes due on an active duty claimant or veteran claimant's property:
815 (A) with respect to which a county grants an exemption under this part; and
816 (B) for the calendar year for which the county grants an exemption under this part; and
817 (ii) for a veteran claimant, a uniform fee on tangible personal property described in
818 Section 59-2-405 that is owned by the veteran claimant and assessed for the calendar year for
819 which the county grants an exemption under this part.
820 (b) "Property taxes and fees paid" is an amount equal to the sum of the following:
821 (i) the amount of property taxes that qualifies for an exemption under this part that the
822 active duty claimant or the veteran claimant paid for the calendar year for which the active duty
823 claimant or veteran claimant is applying for an exemption under this part;
824 (ii) the amount of the exemption the county grants for the calendar year for which the
825 active duty claimant or veteran claimant is applying for an exemption under this part; and
826 (iii) for a veteran claimant, the amount of a uniform fee on tangible personal property,
827 described in Section 59-2-405 and that qualifies for an exemption under this part, that is paid
828 by the veteran claimant for the calendar year for which the veteran claimant is applying for an
829 exemption under this part.
830 (2) A county shall refund to an active duty claimant or a veteran claimant an amount
831 equal to the amount by which the active duty claimant or veteran claimant's property taxes and
832 fees paid exceed the active duty claimant or veteran claimant's property taxes and fees due, if
833 that amount is $1 or more.
834 Section 15. Repealer.
835 This bill repeals:
836 Section 59-2-1104, Definitions -- Armed forces exemption -- Amount of armed
837 forces exemption.
838 Section 59-2-1105, Application for United States armed forces exemption --
839 Rulemaking authority -- Statement -- County authority to make refunds.
840 Section 59-2-1107, Indigent persons -- Amount of abatement.
841 Section 59-2-1108, Indigent persons -- Deferral of taxes -- Interest rate --
842 Treatment of deferred taxes.
843 Section 59-2-1109, Indigent persons -- Deferral or abatement -- Application --
844 County authority to make refunds -- Appeal.
845 Section 16. Effective date.
846 This bill takes effect on January 1, 2020.