1     
PROPERTY TAX VALUATION AMENDMENTS

2     
2021 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Timothy D. Hawkes

5     
Senate Sponsor: Kirk A. Cullimore

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions of the Property Tax Act related to valuation and appeals.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     clarifies and amends:
14               •     the burdens of proof for appeals involving certain real property for which there
15     was a reduction in assessed value after the county assessor issued the valuation
16     notice; and
17               •     the application of the automatic county review process for certain real property
18     valuations or 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          This bill provides retrospective operation.
25     Utah Code Sections Affected:
26     AMENDS:
27          59-2-109, as last amended by Laws of Utah 2019, Chapter 16
28          59-2-303.2, as enacted by Laws of Utah 2019, Chapter 16
29          59-2-1004, as last amended by Laws of Utah 2020, Chapter 86

30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 59-2-109 is amended to read:
33          59-2-109. Burden of proof.
34          (1) As used in this section:
35          (a) "Final assessed value" means:
36          (i) for real property for which the taxpayer appealed the valuation or equalization to the
37     county board of equalization in accordance with Section 59-2-1004, the value given to the real
38     property by [a] the county board of equalization [after the appeal], including a value based on a
39     stipulation of the parties;
40          (ii) for real property for which the taxpayer or a county assessor appealed the valuation
41     or equalization to the commission in accordance with Section 59-2-1006, the value given to the
42     real property by:
43          (A) the commission, if the commission has issued a decision in the appeal or the
44     parties have entered a stipulation; or
45          (B) a county board of equalization, if the commission has not yet issued a decision in
46     the appeal and the parties have not entered a stipulation; or
47          (iii) for real property for which the taxpayer or a county assessor sought judicial review
48     of the valuation or equalization in accordance with Section 59-1-602 or Title 63G, Chapter 4,
49     Part 4, Judicial Review, the value given the real property by the commission.
50          (b) "Inflation adjusted value" means the [value of the real property that is the subject of
51     the appeal as calculated by the county assessor in accordance with Subsection 59-2-1004(2)(c)]
52     same as that term is defined in Section 59-2-1004.
53          (c) "Qualified real property" means real property:
54          (i) that is assessed by a county assessor in accordance with Part 3, County Assessment;
55          (ii) for which:
56          (A) the taxpayer or a county assessor appealed the valuation or equalization for the
57     previous taxable year to the county board of equalization in accordance with Section 59-2-1004

58     or the commission in accordance with Section 59-2-1006;
59          (B) [as a result of] the appeal described in Subsection (1)(c)(ii)(A)[, a county board of
60     equalization or the commission gave] resulted in a final assessed value that was lower than the
61     assessed value; and
62          (C) the assessed value for the current taxable year is higher than the inflation adjusted
63     value; and
64          (iii) that, [between] on or after January 1 of the previous taxable year and before
65     January 1 of the current taxable year, has not [been improved or changed beyond the
66     improvements in place on January 1 of the previous taxable year.] had a qualifying change.
67          (d) "Qualifying change" means one of the following changes to real property that
68     occurs on or after January 1 of the previous taxable year and before January 1 of the current
69     taxable year:
70          (i) a physical improvement if, solely as a result of the physical improvement, the fair
71     market value of the physical improvement equals or exceeds the greater of 10% of fair market
72     value of the real property or $20,000;
73          (ii) a zoning change, if the fair market value of the real property increases solely as a
74     result of the zoning change; or
75          (iii) a change in the legal description of the real property, if the fair market value of the
76     real property increases solely as a result of the change in the legal description of the real
77     property.
78          (2) For an appeal involving the valuation of real property to the county board of
79     equalization or the commission, the party carrying the burden of proof shall demonstrate:
80          (a) substantial error in:
81          (i) for an appeal not involving qualified real property:
82          (A) if Subsection (3) does not apply and the appeal is to the county board of
83     equalization, the original assessed value;
84          (B) if Subsection (3) does not apply and the appeal is to the commission, the value
85     given to the property by the county board of equalization; or

86          (C) if Subsection (3) applies, the original assessed value; or
87          (ii) for an appeal involving qualified real property, the inflation adjusted value; and
88          (b) a sound evidentiary basis upon which the county board of equalization or the
89     commission could adopt a different valuation.
90          (3) (a) The party described in Subsection (3)(b) shall carry the burden of proof before a
91     county board of equalization or the commission, in an action appealing the value of property:
92          (i) that is not qualified real property; and
93          (ii) for which a county assessor, a county board of equalization, or the commission
94     asserts that the fair market value of the assessed property is greater than the original assessed
95     value for that calendar year.
96          (b) For purposes of Subsection (3)(a), the following have the burden of proof:
97          (i) for property assessed under Part 3, County Assessment:
98          (A) the county assessor, if the county assessor is a party to the appeal that asserts that
99     the fair market value of the assessed property is greater than the original assessed value for that
100     calendar year; or
101          (B) the county board of equalization, if the county board of equalization is a party to
102     the appeal that asserts that the fair market value of the assessed property is greater than the
103     original assessed value for that calendar year; or
104          (ii) for property assessed under Part 2, Assessment of Property, the commission, if the
105     commission is a party to the appeal that asserts that the fair market value of the assessed
106     property is greater than the original assessed value for that calendar year.
107          (c) For purposes of this Subsection (3) only, if a county assessor, county board of
108     equalization, or the commission asserts that the fair market value of the assessed property is
109     greater than the original assessed value for that calendar year:
110          (i) the original assessed value shall lose the presumption of correctness;
111          (ii) a preponderance of the evidence shall suffice to sustain the burden for all parties;
112     and
113          (iii) the county board of equalization or the commission shall be free to consider all

114     evidence allowed by law in determining fair market value, including the original assessed
115     value.
116          (4) (a) The party described in Subsection (4)(b) shall carry the burden of proof before a
117     county board of equalization or the commission in an action appealing the value of qualified
118     real property if at least one party presents evidence of or otherwise asserts a value other than
119     inflation adjusted value.
120          (b) For purposes of Subsection (4)(a):
121          (i) the county assessor or the county board of equalization that is a party to the appeal
122     has the burden of proof if the county assessor or county board of equalization presents evidence
123     of or otherwise asserts a value that is greater than or equal to the inflation adjusted value; or
124          (ii) the taxpayer that is a party to the appeal has the burden of proof if the taxpayer
125     presents evidence of or otherwise asserts a value that is less than the inflation adjusted value.
126          (c) The burdens of proof described in Subsection (4)(b) apply before a county board of
127     equalization or the commission even if the previous year's valuation is:
128          (i) pending an appeal requested in accordance with Section 59-2-1006 or judicial
129     review requested in accordance with Section 59-1-602 or Title 63G, Chapter 4, Part 4, Judicial
130     Review; or
131          (ii) overturned by the commission as a result of an appeal requested in accordance with
132     Section 59-2-1006 or by a court of competent jurisdiction as a result of judicial review
133     requested in accordance with Section 59-1-602 or Title 63G, Chapter 4, Part 4, Judicial
134     Review.
135          Section 2. Section 59-2-303.2 is amended to read:
136          59-2-303.2. Automatic review of assessed value of review property.
137          (1) As used in this section:
138          (a) "Final assessed value" means:
139          (i) for a review property for which the taxpayer did not appeal the valuation or
140     equalization in accordance with Section 59-2-1004, the assessed value as stated on the
141     valuation notice described in Section 59-2-919.1;

142          (ii) for a review property for which the taxpayer appealed the valuation or equalization
143     in accordance with Section 59-2-1004, the assessed value given to the review property by [a]
144     the county board of equalization [after the appeal], including an assessed value based on a
145     stipulation of the parties;
146          (iii) for real property for which the taxpayer or a county assessor appealed the valuation
147     or equalization to the commission in accordance with Section 59-2-1006, the value given to the
148     real property by:
149          (A) the commission, if the commission has issued a decision in the appeal or the
150     parties have entered a stipulation; or
151          (B) a county board of equalization, if the commission has not yet issued a decision in
152     the appeal and the parties have not entered a stipulation; or
153          (iv) for real property for which the taxpayer or a county assessor sought judicial review
154     of the valuation or equalization in accordance with Section 59-1-602 or Title 63G, Chapter 4,
155     Part 4, Judicial Review, the value given the real property by the commission.
156          (b) "Median property value change" means the midpoint of the property value changes
157     for all real property that is:
158          (i) of the same class of real property as the review property; and
159          (ii) located within the same county and within the same market area as the review
160     property.
161          (c) "Property value change" means the percentage change in the fair market value of
162     real property [between] on or after January 1 of the previous year and before January 1 of the
163     current year.
164          (d) "Qualifying change" means one of the following changes to real property that
165     occurs on or after January 1 of the previous taxable year and before January 1 of the current
166     taxable year:
167          (i) a physical improvement if, solely as a result of the physical improvement, the fair
168     market value of the physical improvement equals or exceeds the greater of 10% of fair market
169     value of the real property or $20,000;

170          (ii) a zoning change, if the fair market value of the real property increases solely as a
171     result of the zoning change; or
172          (iii) a change in the legal description of the real property, if the fair market value of the
173     real property increases solely as a result of the change in the legal description of the real
174     property.
175          [(d)] (e) "Review property" means real property located in the county:
176          (i) that [between] on or after January 1 of the previous year and before January 1 of the
177     current year has not [been improved or changed beyond improvements in place on January 1 of
178     the previous taxable year] had a qualifying change; and
179          (ii) for which the county assessor did not conduct a detailed review of property
180     characteristics during the current taxable year.
181          [(e)] (f) "Threshold increase" means an increase in a review property's assessed value
182     for the current taxable year compared to the final assessed value of the review property for the
183     previous taxable year that is:
184          (i) the median property value change plus 15%; and
185          (ii) at least $10,000.
186          (2) (a) Before completing and delivering the assessment book to the county auditor in
187     accordance with Section 59-2-311, the county assessor shall review the assessment of a review
188     property for which the assessed value for the current taxable year is equal to or exceeds the
189     threshold increase.
190          (b) The county assessor shall retain a record of the properties for which the county
191     assessor conducts a review in accordance with this section and the results of that review.
192          (3) (a) If the county assessor determines that the assessed value of the review property
193     reflects the review property's fair market value, the county assessor [shall] may not adjust the
194     review property's assessed value.
195          (b) If the county assessor determines that the assessed value of the review property
196     does not reflect the review property's fair market value, the county assessor shall adjust the
197     assessed value of the review property to reflect the fair market value.

198          (4) The review process described in this section does not supersede or otherwise affect
199     a taxpayer's right to appeal or to seek judicial review of the valuation or equalization of a
200     review property in accordance with:
201          (a) this part;
202          (b) Title 59, Chapter 1, Part 6, Judicial Review; or
203          (c) Title 63G, Chapter 4, Part 4, Judicial Review.
204          Section 3. Section 59-2-1004 is amended to read:
205          59-2-1004. Appeal to county board of equalization -- Real property -- Time
206     period for appeal -- Public hearing requirements -- Decision of board -- Extensions
207     approved by commission -- Appeal to commission.
208          (1) As used in this section:
209          (a) "Final assessed value" means:
210          (i) for real property for which the taxpayer appealed the valuation or equalization to the
211     county board of equalization in accordance with this section, the value given to the real
212     property by [a] the county board of equalization [after the appeal], including a value based on a
213     stipulation of the parties;
214          (ii) for real property for which the taxpayer or a county assessor appealed the valuation
215     or equalization to the commission in accordance with Section 59-2-1006, the value given to the
216     real property by:
217          (A) the commission, if the commission has issued a decision in the appeal or the
218     parties have entered a stipulation; or
219          (B) a county board of equalization, if the commission has not yet issued a decision in
220     the appeal and the parties have not entered a stipulation; or
221          (iii) for real property for which the taxpayer or a county assessor sought judicial review
222     of the valuation or equalization in accordance with Section 59-1-602 or Title 63G, Chapter 4,
223     Part 4, Judicial Review, the value given the real property by the commission.
224          (b) "Inflation adjusted value" means the value of the real property that is the subject of
225     the appeal as calculated by [the county assessor in accordance with Subsection (2)(c)] changing

226     the final assessed value for the previous taxable year for the real property by the median
227     property value change.
228          (c) "Median property value change" means the midpoint of the property value changes
229     for all real property that is:
230          (i) of the same class of real property as the qualified real property; and
231          (ii) located within the same county and within the same market area as the qualified
232     real property.
233          (d) "Property value change" means the percentage change in the fair market value of
234     real property [between] on or after January 1 of the previous year and before January 1 of the
235     current year.
236          (e) "Qualified real property" means real property:
237          (i) for which:
238          (A) the taxpayer or a county assessor appealed the valuation or equalization for the
239     previous taxable year to the county board of equalization in accordance with this section or the
240     commission in accordance with Section 59-2-1006;
241          (B) [as a result of] the appeal described in Subsection (1)(e)(i)(A), [a county board of
242     equalization or the commission gave] resulted in a final assessed value that was lower than the
243     assessed value; and
244          (C) the assessed value for the current taxable year is higher than the inflation adjusted
245     value; and
246          (ii) that, [between] on or after January 1 of the previous taxable year and before
247     January 1 of the current taxable year, has not [been improved or changed beyond the
248     improvements in place on January 1 of the previous taxable year.] had a qualifying change.
249          (f) "Qualifying change" means one of the following changes to real property that
250     occurs on or after January 1 of the previous taxable year and before January 1 of the current
251     taxable year:
252          (i) a physical improvement if, solely as a result of the physical improvement, the fair
253     market value of the physical improvement equals or exceeds the greater of 10% of fair market

254     value of the real property or $20,000;
255          (ii) a zoning change, if the fair market value of the real property increases solely as a
256     result of the zoning change; or
257          (iii) a change in the legal description of the real property, if the fair market value of the
258     real property increases solely as a result of the change in the legal description of the real
259     property.
260          (2) (a) A taxpayer dissatisfied with the valuation or the equalization of the taxpayer's
261     real property may make an application to appeal by:
262          (i) filing the application with the county board of equalization within the time period
263     described in Subsection (3); or
264          (ii) making an application by telephone or other electronic means within the time
265     period described in Subsection (3) if the county legislative body passes a resolution under
266     Subsection (8) authorizing a taxpayer to make an application by telephone or other electronic
267     means.
268          (b) (i) The county board of equalization shall make a rule describing the contents of the
269     application.
270          (ii) In addition to any information the county board of equalization requires, the
271     application shall include information about:
272          (A) the burden of proof in an appeal involving qualified real property; and
273          (B) the process for the taxpayer to learn the inflation adjusted value of the qualified
274     real property.
275          [(c) (i) The county assessor shall calculate inflation adjusted value by changing the
276     final assessed value for the previous taxable year of the real property that is the subject of the
277     appeal by the median property value change.]
278          [(ii)] (c) (i) (A) The county assessor shall notify the county board of equalization of a
279     qualified real property's inflation adjusted value within 15 business days after the date on which
280     the county assessor receives notice that a taxpayer filed an appeal with the county board of
281     equalization.

282          (B) The county assessor shall notify the commission of a qualified real property's
283     inflation adjusted value within 15 business days after the date on which the county assessor
284     receives notice that a person dissatisfied with the decision of a county board of equalization
285     files an appeal with the commission.
286          [(iii)] (ii) (A) A person may not appeal a county assessor's calculation of inflation
287     adjusted value but may appeal the fair market value of a qualified real property.
288          (B) A person may appeal a determination of whether, on or after January 1 of the
289     previous taxable year and before January 1 of the current taxable year, real property had a
290     qualifying change.
291          (3) (a) Except as provided in Subsection (3)(b) and for purposes of Subsection (2), a
292     taxpayer shall make an application to appeal the valuation or the equalization of the taxpayer's
293     real property on or before the later of:
294          (i) September 15 of the current calendar year; or
295          (ii) the last day of a 45-day period beginning on the day on which the county auditor
296     provides the notice under Section 59-2-919.1.
297          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
298     commission shall make rules providing for circumstances under which the county board of
299     equalization is required to accept an application to appeal that is filed after the time period
300     prescribed in Subsection (3)(a).
301          (4) (a) Except as provided in Subsection (4)(b), the taxpayer shall include in the
302     application under Subsection (2)(a):
303          (i) the taxpayer's estimate of the fair market value of the property and any evidence that
304     may indicate that the assessed valuation of the taxpayer's property is improperly equalized with
305     the assessed valuation of comparable properties; and
306          (ii) a signed statement of the personal property located in a multi-tenant residential
307     property, as that term is defined in Section 59-2-301.8 if the taxpayer:
308          (A) appeals the value of multi-tenant residential property assessed in accordance with
309     Section 59-2-301.8; and

310          (B) intends to contest the value of the personal property located within the multi-tenant
311     residential property.
312          (b) (i) For an appeal involving qualified real property:
313          (A) the county board of equalization shall presume that the fair market value of the
314     qualified real property is equal to the inflation adjusted value; and
315          (B) except as provided in Subsection (4)(b)(ii), the taxpayer may provide the
316     information described in Subsection (4)(a).
317          (ii) If the taxpayer seeks to prove that the fair market value of the qualified real
318     property is below the inflation adjusted value, the taxpayer shall provide the information
319     described in Subsection (4)(a).
320          (5) In reviewing evidence submitted to a county board of equalization by or on behalf
321     of an owner or a county assessor, the county board of equalization shall consider and weigh:
322          (a) the accuracy, reliability, and comparability of the evidence presented by the owner
323     or the county assessor;
324          (b) if submitted, the sales price of relevant property that was under contract for sale as
325     of the lien date but sold after the lien date;
326          (c) if submitted, the sales offering price of property that was offered for sale as of the
327     lien date but did not sell, including considering and weighing the amount of time for which,
328     and manner in which, the property was offered for sale; and
329          (d) if submitted, other evidence that is relevant to determining the fair market value of
330     the property.
331          (6) (a) The county board of equalization shall meet and hold public hearings as
332     described in Section 59-2-1001.
333          (b) (i) For purposes of this Subsection (6)(b), "significant adjustment" means a
334     proposed adjustment to the valuation of real property that:
335          (A) is to be made by a county board of equalization; and
336          (B) would result in a valuation that differs from the original assessed value by at least
337     20% and $1,000,000.

338          (ii) When a county board of equalization is going to consider a significant adjustment,
339     the county board of equalization shall:
340          (A) list the significant adjustment as a separate item on the agenda of the public
341     hearing at which the county board of equalization is going to consider the significant
342     adjustment; and
343          (B) for purposes of the agenda described in Subsection (6)(b)(ii)(A), provide a
344     description of the property for which the county board of equalization is considering a
345     significant adjustment.
346          (c) The county board of equalization shall make a decision on each appeal filed in
347     accordance with this section within 60 days after the day on which the taxpayer makes an
348     application.
349          (d) The commission may approve the extension of a time period provided for in
350     Subsection (6)(c) for a county board of equalization to make a decision on an appeal.
351          (e) Unless the commission approves the extension of a time period under Subsection
352     (6)(d), if a county board of equalization fails to make a decision on an appeal within the time
353     period described in Subsection (6)(c), the county legislative body shall:
354          (i) list the appeal, by property owner and parcel number, on the agenda for the next
355     meeting the county legislative body holds after the expiration of the time period described in
356     Subsection (6)(c); and
357          (ii) hear the appeal at the meeting described in Subsection (6)(e)(i).
358          (f) The decision of the county board of equalization shall contain:
359          (i) a determination of the valuation of the property based on fair market value; and
360          (ii) a conclusion that the fair market value is properly equalized with the assessed value
361     of comparable properties.
362          (g) If no evidence is presented before the county board of equalization, the county
363     board of equalization shall presume that the equalization issue has been met.
364          (h) (i) If the fair market value of the property that is the subject of the appeal deviates
365     plus or minus 5% from the assessed value of comparable properties, the county board of

366     equalization shall adjust the valuation of the appealed property to reflect a value equalized with
367     the assessed value of comparable properties.
368          (ii) Subject to Sections 59-2-301.1, 59-2-301.2, 59-2-301.3, and 59-2-301.4, equalized
369     value established under Subsection (6)(h)(i) shall be the assessed value for property tax
370     purposes until the county assessor is able to evaluate and equalize the assessed value of all
371     comparable properties to bring all comparable properties into conformity with full fair market
372     value.
373          (7) If any taxpayer is dissatisfied with the decision of the county board of equalization,
374     the taxpayer may file an appeal with the commission as described in Section 59-2-1006.
375          (8) A county legislative body may pass a resolution authorizing taxpayers owing taxes
376     on property assessed by that county to file property tax appeals applications under this section
377     by telephone or other electronic means.
378          Section 4. Effective date.
379          If approved by two-thirds of all the members elected to each house, this bill takes effect
380     upon approval by the governor, or the day following the constitutional time limit of Utah
381     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
382     the date of veto override.
383          Section 5. Retrospective operation.
384          This bill has retrospective operation to January 1, 2021.