1     
PROPERTY TAX RELIEF AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Travis M. Seegmiller

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the deferral provisions of the Property Tax Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires a county to grant a deferral to a homeowner who is 66 years old or older
13     and whose home is valued at less than $500,000 under certain circumstances; and
14          ▸     makes technical changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          59-2-1802, as enacted by Laws of Utah 2019, Chapter 453
22     

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 59-2-1802 is amended to read:
25          59-2-1802. Tax deferral.
26          (1) (a) In accordance with this part, a county may defer a tax on residential property
27     after giving notice to the taxpayer.
28          (b) In determining a deferral, a county shall consider an asset transferred to a relative
29     by an applicant for deferral, if the transfer took place during the three years prior to the day on
30     which the applicant applied for deferral.
31          (2) A county may grant a deferral described in Subsection (1) at any time:
32          (a) after the holder of each mortgage or trust deed outstanding on the property gives
33     written approval of the application; and
34          (b) if the applicant is not the owner of income-producing assets that could be liquidated
35     to pay the tax.
36          (3) In accordance with this part, a county shall defer a tax on residential property if:
37          (a) the owner of the residential property is:
38          (i) an individual who is 66 years old or older on or before December 31 of the year for
39     which the individual applies for a deferral; or
40          (ii) a trust described in Section 59-2-1805, for which the grantor is an individual who is
41     66 years old or older on or before December 31 of the year for which the individual applies for
42     a deferral;
43          (b) the residential property was the owner's primary residence as of January 1 of the
44     year for which the owner makes an application for a deferral;
45          (c) the value of the residential property for the year in which the owner makes the
46     application for deferral is, according to the county assessment roll, less than $500,000; and
47          (d) the holder of each mortgage or trust deed outstanding on the property gives written
48     approval of the application deferral.
49          [(3)] (4) Taxes deferred by the county accumulate with interest as a lien against the
50     residential property, as described in Subsection [(4)] (5), until the owner sells or otherwise
51     disposes of the residential property.
52          [(4)] (5) Deferred taxes under this section:
53          (a) bear interest at an interest rate equal to the lesser of:
54          (i) 6%; or
55          (ii) the federal funds rate target:
56          (A) established by the Federal Open Markets Committee; and
57          (B) that exists on the January 1 immediately preceding the day on which the taxes are
58     deferred; and
59          (b) have the same status as a lien as described in Sections 59-2-1301 and 59-2-1325.
60          [(5)] (6) If the owner of residential property that is granted deferral under this section is
61     an indigent individual, [during the period of deferral] the county may not subject the residential
62     property to a tax sale during the period of deferral.