Senator Daniel Hemmert proposes the following substitute bill:


1     
PROPERTY TAX MODIFICATIONS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jefferson Moss

5     
Senate Sponsor: Daniel Hemmert

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to property tax.
10     Highlighted Provisions:
11          This bill:
12          ▸     provides that when an ownership interest in residential property changes the county
13     assessor shall provide the new owner a form prescribed by statute on which the new
14     owner may declare that the residential property qualifies for the primary residential
15     exemption;
16          ▸     requires a property tax notice to include additional information, including the
17     taxable value of the property, the deadline to appeal the valuation or equalization of
18     the property, information related to the residential exemption, and information
19     related to a rate increase resulting from a change to state law; and
20          ▸     makes technical and conforming changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          This bill provides retrospective operation.
25     Utah Code Sections Affected:
26     AMENDS:
27          59-2-103.5, as last amended by Laws of Utah 2019, Chapter 323
28          59-2-919.1, as last amended by Laws of Utah 2019, Chapter 16
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 59-2-103.5 is amended to read:
32          59-2-103.5. Procedures to obtain an exemption for residential property --
33     Procedure if property owner or property no longer qualifies to receive a residential
34     exemption.
35          (1) Subject to Subsection (8), for residential property other than part-year residential
36     property, a county legislative body may adopt an ordinance that requires an owner to file an
37     application with the county board of equalization before a residential exemption under Section
38     59-2-103 may be applied to the value of the residential property if:
39          (a) the residential property was ineligible for the residential exemption during the
40     calendar year immediately preceding the calendar year for which the owner is seeking to have
41     the residential exemption applied to the value of the residential property;
42          (b) an ownership interest in the residential property changes; or
43          (c) the county board of equalization determines that there is reason to believe that the
44     residential property no longer qualifies for the residential exemption.
45          (2) (a) The application described in Subsection (1) shall:
46          (i) be on a form the commission prescribes by rule and makes available to the counties;
47          (ii) be signed by [all of the owners] the owner of the residential property; and
48          [(iii) certify that the residential property is residential property; and]
49          [(iv) contain other information as the commission requires by rule.]
50          (iii) request no more information from the owner of the residential property than the
51     form provided in Subsection (8)(e).
52          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
53     commission may make rules prescribing the contents of the form described in Subsection
54     (2)(a).
55          (c) For purposes of the application described in Subsection (1), a county may not
56     request information from an owner of a residential property beyond the information provided in
57     the form prescribed by the commission under this Subsection (2).
58          (3) (a) Regardless of whether a county legislative body adopts an ordinance described
59     in Subsection (1), before a residential exemption may be applied to the value of part-year
60     residential property, an owner of the property shall:
61          (i) file the application described in Subsection (2)(a) with the county board of
62     equalization; and
63          (ii) include as part of the application described in Subsection (2)(a) a statement that
64     certifies:
65          (A) the date the part-year residential property became residential property;
66          (B) that the part-year residential property will be used as residential property for 183 or
67     more consecutive calendar days during the calendar year for which the owner seeks to obtain
68     the residential exemption; and
69          (C) that the owner, or a member of the owner's household, may not claim a residential
70     exemption for any property for the calendar year for which the owner seeks to obtain the
71     residential exemption, other than the part-year residential property, or as allowed under Section
72     59-2-103 with respect to the primary residence or household furnishings, furniture, and
73     equipment of the owner's tenant.
74          (b) An owner may not obtain a residential exemption for part-year residential property
75     unless the owner files an application under this Subsection (3) on or before November 30 of the
76     calendar year for which the owner seeks to obtain the residential exemption.
77          (c) If an owner files an application under this Subsection (3) on or after May 1 of the
78     calendar year for which the owner seeks to obtain the residential exemption, the county board
79     of equalization may require the owner to pay an application fee of not to exceed $50.
80          (4) Except as provided in Subsection (5), if a property owner no longer qualifies to
81     receive a residential exemption authorized under Section 59-2-103 for the property owner's
82     primary residence, the property owner shall:
83          (a) file a written statement with the county board of equalization of the county in which
84     the property is located:
85          (i) on a form provided by the county board of equalization; and
86          (ii) notifying the county board of equalization that the property owner no longer
87     qualifies to receive a residential exemption authorized under Section 59-2-103 for the property
88     owner's primary residence; and
89          (b) declare on the property owner's individual income tax return under Chapter 10,
90     Individual Income Tax Act, for the taxable year for which the property owner no longer
91     qualifies to receive a residential exemption authorized under Section 59-2-103 for the property
92     owner's primary residence, that the property owner no longer qualifies to receive a residential
93     exemption authorized under Section 59-2-103 for the property owner's primary residence.
94          (5) A property owner is not required to file a written statement or make the declaration
95     described in Subsection (4) if the property owner:
96          (a) changes primary residences;
97          (b) qualified to receive a residential exemption authorized under Section 59-2-103 for
98     the residence that was the property owner's former primary residence; and
99          (c) qualifies to receive a residential exemption authorized under Section 59-2-103 for
100     the residence that is the property owner's current primary residence.
101          (6) Subsections (2) through (5) do not apply to qualifying exempt primary residential
102     rental personal property.
103          (7) (a) Subject to Subsection (8), for the first calendar year in which a property owner
104     qualifies to receive a residential exemption under Section 59-2-103, a county assessor may
105     require the property owner to file a signed statement described in Section 59-2-306.
106          (b) Subject to Subsection (8) and notwithstanding Section 59-2-306, for a calendar year
107     after the calendar year described in Subsection (7)(a) in which a property owner qualifies for an
108     exemption described in Subsection 59-2-1115(2) for qualifying exempt primary residential
109     rental personal property, a signed statement described in Section 59-2-306 with respect to the
110     qualifying exempt primary residential rental personal property may only require the property
111     owner to certify, under penalty of perjury, that the property owner qualifies for the exemption
112     under Subsection 59-2-1115(2).
113          (8) (a) Subject to the requirements of this Subsection (8) and except as provided in
114     Subsection (8)[(c)](b), on or before May 1, 2020, a county assessor shall:
115          (i) notify each owner of residential property that the owner is required to submit a
116     written declaration described in Subsection (8)[(b)](d) within 30 days after the day on which
117     the county assessor mails the notice under this Subsection (8)(a); and
118          (ii) provide each owner with a form described in Subsection (8)(e) to make the written
119     declaration described in Subsection (8)[(b)](d).
120          [(b) Each owner of residential property that receives a notice described in Subsection
121     (8)(a) shall file a written declaration with the county assessor under penalty of perjury:]
122          [(i) certifying whether the property is residential property or part-year residential
123     property;]
124          [(ii) certifying whether during any portion of the current calendar year, the property
125     receives a residential exemption under Section 59-2-103; and]
126          [(iii) certifying whether the property owner owns other property in the state that
127     receives a residential exemption under Section 59-2-103, and if so, listing:]
128          [(A) the parcel number of the property;]
129          [(B) the county in which the property is located; and]
130          [(C) whether the property is the primary residence of a tenant.]
131          [(c)] (b) A county assessor is not required to provide a notice to an owner of residential
132     property under Subsection (8)(a) if the situs address of the residential property is the same as
133     any one of the following:
134          (i) the mailing address of the residential property owner or the tenant of the residential
135     property;
136          (ii) the address listed on the:
137          (A) residential property owner's driver license; or
138          (B) tenant of the residential property's driver license; or
139          (iii) the address listed on the:
140          (A) residential property owner's voter registration; or
141          (B) tenant of the residential property's voter registration.
142          [(d) If an ownership interest in residential property changes, the new owner of the
143     residential property, at the time title to the property is transferred to the new owner, shall make
144     a written declaration under penalty of perjury:]
145          [(i) certifying whether the property is residential property or part-year residential
146     property;]
147          [(ii) certifying whether the property receives a residential exemption under Section
148     59-2-103; and]
149          [(iii) certifying whether the property owner owns other property in the state that
150     receives a residential exemption under Section 59-2-103, and if so, listing:]
151          [(A) the parcel number of the property;]
152          [(B) the county in which the property is located; and]
153          [(C) whether the property is the primary residence of a tenant.]
154          (c) After an ownership interest in residential property changes, the county assessor
155     shall:
156          (i) notify the owner of the residential property that the owner is required to submit a
157     written declaration described in Subsection (8)(d) within 90 days after the day on which the
158     owner receives notice under this Subsection (8)(c); and
159          (ii) provide the owner of the residential property with the form described in Subsection
160     (8)(e) to make the written declaration described in Subsection (8)(d).
161          (d) An owner of residential property that receives a notice described in Subsection
162     (8)(a) or (c) shall submit a written declaration to the county assessor under penalty of perjury
163     certifying the information contained in the form provided in Subsection (8)(e).
164          (e) The written declaration required by Subsection [(8)(b) or (d)] (8)(d) shall be:
165          [(i) be on a form the commission prescribes and makes available to the counties;]
166          [(ii)] (i) [be] signed by [all of the owners] the owner of the residential property; and
167          [(iii) include the following statement:]
168          (ii) in substantially the following form:
169     
"Residential Property Declaration

170          This form must be submitted to the County Assessor's office where your new residential
171     property is located within 90 days of receipt. Failure to do so will result in the county assessor
172     taking action that could result in the withdrawal of the primary residential exemption from your
173     residential property.
174     
Residential Property Owner Information

175          Name(s):__________________________________________________
176          Home Phone:_______________________________________________
177          Work Phone:_______________________________________________
178          Mailing Address:____________________________________________
179     
Residential Property Information

180          Physical Address:___________________________________________
181                              Certification
182          1. Is this property used as a primary residential property or part-year residential
183     property for you or another person?
184          "Part-year residential property" means owned property that is not residential property on
185     January 1 of a calendar year but becomes residential property after January 1 of the calendar
186     year.
187          Yes           No
188          2. Will this primary residential property or part-year residential property be occupied
189     for 183 or more consecutive calendar days by the owner or another person?
190          A part-year residential property occupied for 183 or more consecutive calendar days in
191     a calendar year by the owner(s) or a tenant is eligible for the exemption.
192          Yes          No
193          ["]If a property owner or a property owner's spouse claims a residential exemption
194     under Utah Code Ann. § 59-2-103 for property in this state that is the primary residence of the
195     property owner or the property owner's spouse, that claim of a residential exemption creates a
196     rebuttable presumption that the property owner and the property owner's spouse have domicile
197     in Utah for income tax purposes. The rebuttable presumption of domicile does not apply if the
198     residential property is the primary residence of a tenant of the property owner or the property
199     owner's spouse.["]
200          Signature
201          This form must be signed by all owners of the property.
202          Under penalties of perjury, I declare to the best of my knowledge and belief, this
203     declaration and accompanying pages are true, correct, and complete.
204          __________________(Owner signature) _____________________Date (mm/dd/yyyy)
205          __________________(Owner printed name)
206          (f) For purposes of a written declaration described in this Subsection (8), a county may
207     not request information from a property owner beyond the information described in the form
208     provided in Subsection (8)(e).
209          [(f) The written declaration made under Subsection (8)(d) shall be remitted to the
210     county assessor of the county where the property described in Subsection (8)(d) is located
211     within five business days of the title being transferred to the new owner.]
212          (g) (i) If, after receiving a written declaration filed under Subsection [(8)(b) or] (8)(d),
213     the county determines that the property has been incorrectly qualified or disqualified to receive
214     a residential exemption, the county shall:
215          (A) redetermine the property's qualification to receive a residential exemption; and
216          (B) notify the claimant of the redetermination and its reason for the redetermination.
217          (ii) The redetermination provided in Subsection (8)(g)(i)(A) [shall be] is final unless
218     appealed within 30 days after the notice required by Subsection (8)(g)(i)(B).
219          (h) (i) If a residential property owner fails to file a written declaration required by
220     Subsection [(8)(b) or (d)] (8)(d), the county assessor shall mail to the owner of the residential
221     property a notice that:
222          (A) the property owner failed to file a written declaration as required by Subsection
223     [(8)(b) or] (8)(d); and
224          (B) the property owner will no longer qualify to receive the residential exemption
225     authorized under Section 59-2-103 for the property that is the subject of the written declaration
226     if the property owner does not file the written declaration required by Subsection [(8)(b) or (d)]
227     (8)(d) within 30 days after the day on which the county assessor mails the notice under this
228     Subsection (8)(h)(i).
229          (ii) If a property owner fails to file a written declaration required by Subsection [(8)(b)
230     or (d)] (8)(d) after receiving the notice described in Subsection (8)(h)(i), the property owner no
231     longer qualifies to receive the residential exemption authorized under Section 59-2-103 in the
232     calendar year for the property that is the subject of the written declaration.
233          (iii) A property owner that is disqualified to receive the residential exemption under
234     Subsection (8)(h)(ii) may file an application described in Subsection (1) to determine whether
235     the owner is eligible to receive the residential exemption.
236          (i) The requirements of this Subsection (8) do not apply to a county assessor in a
237     county that has, for the five calendar years prior to 2019, had in place and enforced an
238     ordinance described in Subsection (1).
239          Section 2. Section 59-2-919.1 is amended to read:
240          59-2-919.1. Notice of property valuation and tax changes.
241          (1) In addition to the notice requirements of Section 59-2-919, the county auditor, on or
242     before July 22 of each year, shall notify each owner of real estate who is listed on the
243     assessment roll.
244          (2) The notice described in Subsection (1) shall:
245          (a) except as provided in Subsection [(4)] (5), be sent to all owners of real property by
246     mail 10 or more days before the day on which:
247          (i) the county board of equalization meets; and
248          (ii) the taxing entity holds a public hearing on the proposed increase in the certified tax
249     rate;
250          (b) be on a form that is:
251          (i) approved by the commission; and
252          (ii) uniform in content in all counties in the state; and
253          (c) contain for each property:
254          (i) the assessor's determination of the value of the property;
255          (ii) the taxable value of the property;
256          [(ii) the date the county board of equalization will meet to hear complaints on the
257     valuation;]
258          (iii) (A) the deadline for the taxpayer to make an application to appeal the valuation or
259     equalization of the property under Section 59-2-1004; or
260          (B) for property assessed by the commission, the deadline for the taxpayer to apply to
261     the commission for a hearing on an objection to the valuation or equalization of the property
262     under Section 59-2-1007;
263          (iv) for a property assessed by the commission, a statement that the taxpayer may not
264     appeal the valuation or equalization of the property to the county board of equalization;
265          [(iii)] (v) itemized tax information for all applicable taxing entities, including:
266          (A) the dollar amount of the taxpayer's tax liability for the property in the prior year;
267     and
268          (B) the dollar amount of the taxpayer's tax liability under the current rate;
269          (vi) the following, stated separately:
270          (A) the charter school levy described in Section 53F-2-703;
271          (B) the multicounty assessing and collecting levy described in Subsection
272     59-2-1602(2);
273          (C) the county assessing and collecting levy described in Subsection 59-2-1602(4);
274          (D) for a fiscal year that begins before July 1, 2023, the combined basic rate as defined
275     in Section 53F-2-301.5; and
276          (E) for a fiscal year that begins on or after July 1, 2023, the combined basic rate as
277     defined in Section 53F-2-301;
278          [(iv)] (vii) the tax impact on the property;
279          [(v)] (viii) the time and place of the required public hearing for each entity;
280          [(vi)] (ix) property tax information pertaining to:
281          (A) taxpayer relief;
282          (B) options for payment of taxes; [and]
283          (C) collection procedures; and
284          (D) the residential exemption described in Section 59-2-103;
285          [(vii)] (x) information specifically authorized to be included on the notice under this
286     chapter;
287          [(viii)] (xi) the last property review date of the property as described in Subsection
288     59-2-303.1(1)(c); and
289          [(ix)] (xii) other property tax information approved by the commission.
290          (3) If a taxing entity that is subject to the notice and hearing requirements of
291     Subsection 59-2-919(4) proposes a tax increase, the notice described in Subsection (1) shall
292     state, in addition to the information required by Subsection (2):
293          (a) the dollar amount of the taxpayer's tax liability if the proposed increase is approved;
294          (b) the difference between the dollar amount of the taxpayer's tax liability if the
295     proposed increase is approved and the dollar amount of the taxpayer's tax liability under the
296     current rate, placed in close proximity to the information described in Subsection
297     (2)(c)[(v)](viii); and
298          (c) the percentage increase that the dollar amount of the taxpayer's tax liability under
299     the proposed tax rate represents as compared to the dollar amount of the taxpayer's tax liability
300     under the current tax rate.
301          (4) If a change to state law increases a tax rate stated on a notice described in
302     Subsection (1), the notice described in Subsection (1) shall state in addition to the information
303     required by Subsections (2) and (3):
304          (a) the difference between the dollar amount of the taxpayer's tax liability under the
305     current tax rate and the dollar amount of the taxpayer's tax liability before the change to state
306     law became effective; and
307          (b) the percentage increase that the dollar amount of the taxpayer's tax liability under
308     the current tax rate represents as compared to the dollar amount of the taxpayer's tax liability
309     under the tax rate before the change to state law becomes effective.
310          [(4)] (5) (a) Subject to the other provisions of this Subsection [(4)] (5), a county auditor
311     may, at the county auditor's discretion, provide the notice required by this section to a taxpayer
312     by electronic means if a taxpayer makes an election, according to procedures determined by the
313     county auditor, to receive the notice by electronic means.
314          (b) (i) If a notice required by this section is sent by electronic means, a county auditor
315     shall attempt to verify whether a taxpayer receives the notice.
316          (ii) If receipt of the notice sent by electronic means cannot be verified 14 days or more
317     before the county board of equalization meets and the taxing entity holds a public hearing on a
318     proposed increase in the certified tax rate, the notice required by this section shall also be sent
319     by mail as provided in Subsection (2).
320          (c) A taxpayer may revoke an election to receive the notice required by this section by
321     electronic means if the taxpayer provides written notice to the county auditor on or before April
322     30.
323          (d) An election or a revocation of an election under this Subsection [(4)] (5):
324          (i) does not relieve a taxpayer of the duty to pay a tax due under this chapter on or
325     before the due date for paying the tax; or
326          (ii) does not alter the requirement that a taxpayer appealing the valuation or the
327     equalization of the taxpayer's real property submit the application for appeal within the time
328     period provided in Subsection 59-2-1004(3).
329          (e) A county auditor shall provide the notice required by this section as provided in
330     Subsection (2), until a taxpayer makes a new election in accordance with this Subsection [(4)]
331     (5), if:
332          (i) the taxpayer revokes an election in accordance with Subsection [(4)](5)(c) to receive
333     the notice required by this section by electronic means; or
334          (ii) the county auditor finds that the taxpayer's electronic contact information is invalid.
335          (f) A person is considered to be a taxpayer for purposes of this Subsection [(4)] (5)
336     regardless of whether the property that is the subject of the notice required by this section is
337     exempt from taxation.
338          Section 3. Retrospective operation.
339          The actions affecting Section 59-2-919.1 have retrospective operation to January 1,
340     2020.