1     
TAX ADMINISTRATIVE REMEDIES AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Curtis S. Bramble

5     
House Sponsor: Steve Eliason

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to exhausting administrative remedies in a tax
10     proceeding.
11     Highlighted Provisions:
12          This bill:
13          ▸     requires a party in a tax proceeding to request a formal hearing before the State Tax
14     Commission to exhaust all of the party's administrative remedies; and
15          ▸     makes technical changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          59-1-502.5, as last amended by Laws of Utah 2008, Chapter 382
23     ENACTS:
24          59-1-612, Utah Code Annotated 1953
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 59-1-502.5 is amended to read:
28          59-1-502.5. Initial hearing -- Formal hearing to exhaust administrative remedies.
29          (1) At least 30 days before any formal hearing is held in response to a party's request
30     for agency action, one or more tax commissioners or an administrative law judge designated by
31     the commission shall hold an initial hearing [shall be held before one or more tax
32     commissioners or an administrative law judge designated by the commission] at which proffers
33     of evidence, including testimony, documents, and other exhibits may be made and oral or
34     written argument on legal issues may be received.
35          (2) Any party participating in an initial hearing shall have the right to informal
36     discovery under any rules established by the commission.
37          (3) [Parties] A party may appear at the initial hearing in person or through [agents,
38     employees, or other representatives] an agent, an employee, or another representative, but any
39     person appearing on behalf of another party or entity shall have full settlement authority on
40     behalf of the party the person is representing.
41          (4) A record may not be kept of the initial hearing and all initial hearing proceedings
42     are privileged and do not constitute admissions against interest of any party participating in the
43     hearing.
44          (5) At the initial hearing, or as soon thereafter as reasonably practicable, the
45     commission may take any action [it] the commission deems appropriate to settle, compromise,
46     or reduce the deficiency, or adjust the assessed valuation of any property.
47          (6) Nothing in this section may limit a party's right to a formal hearing under Title 63G,
48     Chapter 4, Administrative Procedures Act.
49          (7) A party has not exhausted the party's administrative remedies in accordance with
50     Section 63G-4-401 unless:
51          (a) the party requests a formal hearing within the time period provided by law; and
52          (b) the commission has issued a final unappealable administrative order.
53          Section 2. Section 59-1-612 is enacted to read:
54          59-1-612. Formal hearing to exhaust administrative remedies.
55          A party has not exhausted the party's administrative remedies in accordance with
56     Section 63G-4-401 unless:
57          (1) the party requests a formal hearing within the time period provided by law; and
58          (2) the commission has issued a final unappealable administrative order.