1     
PROPERTY TAX REVISIONS

2     
2021 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Curtis S. Bramble

5     
House Sponsor: Matthew H. Gwynn

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions of the Property Tax Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     addresses the deadline to file an application to apply a residential exemption to the
13     value of a part-year residential property; and
14          ▸     upon a showing of reasonable cause, allows a county to waive or reduce a penalty
15     for failure to file a required signed statement of a person's real and personal property
16     that is assessable by the assessor.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          This bill provides retrospective operation.
21     Utah Code Sections Affected:
22     AMENDS:
23          59-2-103.5, as last amended by Laws of Utah 2020, Chapter 78
24          59-2-307, as last amended by Laws of Utah 2011, Chapter 163
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 59-2-103.5 is amended to read:
28          59-2-103.5. Procedures to obtain an exemption for residential property --
29     Procedure if property owner or property no longer qualifies to receive a residential

30     exemption.
31          (1) Subject to Subsection (8), for residential property other than part-year residential
32     property, a county legislative body may adopt an ordinance that requires an owner to file an
33     application with the county board of equalization before a residential exemption under Section
34     59-2-103 may be applied to the value of the residential property if:
35          (a) the residential property was ineligible for the residential exemption during the
36     calendar year immediately preceding the calendar year for which the owner is seeking to have
37     the residential exemption applied to the value of the residential property;
38          (b) an ownership interest in the residential property changes; or
39          (c) the county board of equalization determines that there is reason to believe that the
40     residential property no longer qualifies for the residential exemption.
41          (2) (a) The application described in Subsection (1):
42          (i) shall be on a form the commission prescribes by rule and makes available to the
43     counties;
44          (ii) shall be signed by the owner of the residential property; and
45          (iii) may not request the sales price of the residential property.
46          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
47     commission may make rules prescribing the contents of the form described in Subsection
48     (2)(a).
49          (c) For purposes of the application described in Subsection (1), a county may not
50     request information from an owner of a residential property beyond the information provided in
51     the form prescribed by the commission under this Subsection (2).
52          (3) (a) Regardless of whether a county legislative body adopts an ordinance described
53     in Subsection (1), before a residential exemption may be applied to the value of part-year
54     residential property, an owner of the property shall:
55          (i) file the application described in Subsection (2)(a) with the county board of
56     equalization; and
57          (ii) include as part of the application described in Subsection (2)(a) a statement that

58     certifies:
59          (A) the date the part-year residential property became residential property;
60          (B) that the part-year residential property will be used as residential property for 183 or
61     more consecutive calendar days during the calendar year for which the owner seeks to obtain
62     the residential exemption; and
63          (C) that the owner, or a member of the owner's household, may not claim a residential
64     exemption for any property for the calendar year for which the owner seeks to obtain the
65     residential exemption, other than the part-year residential property, or as allowed under Section
66     59-2-103 with respect to the primary residence or household furnishings, furniture, and
67     equipment of the owner's tenant.
68          [(b) An owner may not obtain a residential exemption for part-year residential property
69     unless the owner files an application under this Subsection (3) on or before November 30 of the
70     calendar year for which the owner seeks to obtain the residential exemption.]
71          [(c)] (b) If an owner files an application under this Subsection (3) on or after May 1 of
72     the calendar year for which the owner seeks to obtain the residential exemption, the county
73     board of equalization may require the owner to pay an application fee [of] not to exceed $50.
74          (4) Except as provided in Subsection (5), if a property owner no longer qualifies to
75     receive a residential exemption authorized under Section 59-2-103 for the property owner's
76     primary residence, the property owner shall:
77          (a) file a written statement with the county board of equalization of the county in which
78     the property is located:
79          (i) on a form provided by the county board of equalization; and
80          (ii) notifying the county board of equalization that the property owner no longer
81     qualifies to receive a residential exemption authorized under Section 59-2-103 for the property
82     owner's primary residence; and
83          (b) declare on the property owner's individual income tax return under Chapter 10,
84     Individual Income Tax Act, for the taxable year for which the property owner no longer
85     qualifies to receive a residential exemption authorized under Section 59-2-103 for the property

86     owner's primary residence, that the property owner no longer qualifies to receive a residential
87     exemption authorized under Section 59-2-103 for the property owner's primary residence.
88          (5) A property owner is not required to file a written statement or make the declaration
89     described in Subsection (4) if the property owner:
90          (a) changes primary residences;
91          (b) qualified to receive a residential exemption authorized under Section 59-2-103 for
92     the residence that was the property owner's former primary residence; and
93          (c) qualifies to receive a residential exemption authorized under Section 59-2-103 for
94     the residence that is the property owner's current primary residence.
95          (6) Subsections (2) through (5) do not apply to qualifying exempt primary residential
96     rental personal property.
97          (7) (a) Subject to Subsection (8), for the first calendar year in which a property owner
98     qualifies to receive a residential exemption under Section 59-2-103, a county assessor may
99     require the property owner to file a signed statement described in Section 59-2-306.
100          (b) Subject to Subsection (8) and notwithstanding Section 59-2-306, for a calendar year
101     after the calendar year described in Subsection (7)(a) in which a property owner qualifies for an
102     exemption described in Subsection 59-2-1115(2) for qualifying exempt primary residential
103     rental personal property, a signed statement described in Section 59-2-306 with respect to the
104     qualifying exempt primary residential rental personal property may only require the property
105     owner to certify, under penalty of perjury, that the property owner qualifies for the exemption
106     under Subsection 59-2-1115(2).
107          (8) (a) Subject to the requirements of this Subsection (8) and except as provided in
108     Subsection (8)(b), on or before May 1, 2020, a county assessor shall:
109          (i) notify each owner of residential property that the owner is required to submit a
110     written declaration described in Subsection (8)(d) within 30 days after the day on which the
111     county assessor mails the notice under this Subsection (8)(a); and
112          (ii) provide each owner with a form described in Subsection (8)(e) to make the written
113     declaration described in Subsection (8)(d).

114          (b) A county assessor is not required to provide a notice to an owner of residential
115     property under Subsection (8)(a) if the situs address of the residential property is the same as
116     any one of the following:
117          (i) the mailing address of the residential property owner or the tenant of the residential
118     property;
119          (ii) the address listed on the:
120          (A) residential property owner's driver license; or
121          (B) tenant of the residential property's driver license; or
122          (iii) the address listed on the:
123          (A) residential property owner's voter registration; or
124          (B) tenant of the residential property's voter registration.
125          (c) After an ownership interest in residential property changes, the county assessor
126     shall:
127          (i) notify the owner of the residential property that the owner is required to submit a
128     written declaration described in Subsection (8)(d) within 90 days after the day on which the
129     owner receives notice under this Subsection (8)(c); and
130          (ii) provide the owner of the residential property with the form described in Subsection
131     (8)(e) to make the written declaration described in Subsection (8)(d).
132          (d) An owner of residential property that receives a notice described in Subsection
133     (8)(a) or (c) shall submit a written declaration to the county assessor under penalty of perjury
134     certifying the information contained in the form provided in Subsection (8)(e).
135          (e) The written declaration required by Subsection (8)(d) shall be:
136          (i) signed by the owner of the residential property; and
137          (ii) in substantially the following form:
138     
"Residential Property Declaration

139          This form must be submitted to the County Assessor's office where your new residential
140     property is located within 90 days of receipt. Failure to do so will result in the county assessor
141     taking action that could result in the withdrawal of the primary residential exemption from your

142     residential property.
143     
Residential Property Owner Information

144          Name(s):__________________________________________________
145          Home Phone:_______________________________________________
146          Work Phone:_______________________________________________
147          Mailing Address:____________________________________________
148     
Residential Property Information

149          Physical Address:___________________________________________
150          Certification
151          1. Is this property used as a primary residential property or part-year residential
152     property for you or another person?
153          "Part-year residential property" means owned property that is not residential property on
154     January 1 of a calendar year but becomes residential property after January 1 of the calendar
155     year.
156          Yes           No
157          2. Will this primary residential property or part-year residential property be occupied
158     for 183 or more consecutive calendar days by the owner or another person?
159          A part-year residential property occupied for 183 or more consecutive calendar days in
160     a calendar year by the owner(s) or a tenant is eligible for the exemption.
161          Yes          No
162          If a property owner or a property owner's spouse claims a residential exemption under
163     Utah Code Ann. § 59-2-103 for property in this state that is the primary residence of the
164     property owner or the property owner's spouse, that claim of a residential exemption creates a
165     rebuttable presumption that the property owner and the property owner's spouse have domicile
166     in Utah for income tax purposes. The rebuttable presumption of domicile does not apply if the
167     residential property is the primary residence of a tenant of the property owner or the property
168     owner's spouse.
169          Signature

170          This form must be signed by all owners of the property.
171          Under penalties of perjury, I declare to the best of my knowledge and belief, this
172     declaration and accompanying pages are true, correct, and complete.
173          __________________(Owner signature) _____________________Date (mm/dd/yyyy)
174          __________________(Owner printed name)
175          (f) For purposes of a written declaration described in this Subsection (8), a county may
176     not request information from a property owner beyond the information described in the form
177     provided in Subsection (8)(e).
178          (g) (i) If, after receiving a written declaration filed under Subsection (8)(d), the county
179     determines that the property has been incorrectly qualified or disqualified to receive a
180     residential exemption, the county shall:
181          (A) redetermine the property's qualification to receive a residential exemption; and
182          (B) notify the claimant of the redetermination and its reason for the redetermination.
183          (ii) The redetermination provided in Subsection (8)(g)(i)(A) is final unless appealed
184     within 30 days after the notice required by Subsection (8)(g)(i)(B).
185          (h) (i) If a residential property owner fails to file a written declaration required by
186     Subsection (8)(d), the county assessor shall mail to the owner of the residential property a
187     notice that:
188          (A) the property owner failed to file a written declaration as required by Subsection
189     (8)(d); and
190          (B) the property owner will no longer qualify to receive the residential exemption
191     authorized under Section 59-2-103 for the property that is the subject of the written declaration
192     if the property owner does not file the written declaration required by Subsection (8)(d) within
193     30 days after the day on which the county assessor mails the notice under this Subsection
194     (8)(h)(i).
195          (ii) If a property owner fails to file a written declaration required by Subsection (8)(d)
196     after receiving the notice described in Subsection (8)(h)(i), the property owner no longer
197     qualifies to receive the residential exemption authorized under Section 59-2-103 in the calendar

198     year for the property that is the subject of the written declaration.
199          (iii) A property owner that is disqualified to receive the residential exemption under
200     Subsection (8)(h)(ii) may file an application described in Subsection (1) to determine whether
201     the owner is eligible to receive the residential exemption.
202          (i) The requirements of this Subsection (8) do not apply to a county assessor in a
203     county that has, for the five calendar years prior to 2019, had in place and enforced an
204     ordinance described in Subsection (1).
205          Section 2. Section 59-2-307 is amended to read:
206          59-2-307. Refusal by taxpayer to file signed statement -- Penalty -- Assessor to
207     estimate value -- Reporting information to other counties.
208          (1) (a) Each person who fails to file the signed statement required by Section 59-2-306,
209     fails to file the signed statement with respect to name and place of residence, or fails to appear
210     and testify when requested by the assessor, shall pay a penalty equal to 10% of the estimated
211     tax due, but not less than $25 for each failure to file a signed and completed statement.
212          (b) Each penalty under Subsection (1)(a) shall be collected in the manner provided by
213     Sections 59-2-1302 and 59-2-1303, except as otherwise provided for in this section, or by a
214     judicial proceeding brought in the name of the assessor.
215          (c) All money recovered by any assessor under this section shall be paid into the county
216     treasury.
217          [(2) (a) The penalty imposed by Subsection (1)(a) may not be waived or reduced by the
218     assessor, county, county Board of Equalization, or commission except pursuant to a procedure
219     for the review and approval of reductions and waivers adopted by county ordinance, or by
220     administrative rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative
221     Rulemaking Act.]
222          (2) (a) Upon a showing of reasonable cause, a county may waive or reduce a penalty
223     imposed under Subsection (1)(a).
224          (b) (i) Except as provided in Subsection (2)(b)(ii), a penalty under Subsection (1)(a)
225     may be imposed on or after May 16 of the year the statement described in Section 59-2-306 is

226     requested by the county assessor.
227          (ii) A penalty under Subsection (1)(a) may not be imposed until 30 days after the
228     postmark date of mailing of a subsequent notice if the signed statement described in Section
229     59-2-306 is requested:
230          (A) on or after March 16; or
231          (B) by a county assessor of a county of the first class.
232          (3) (a) If an owner neglects or refuses to file a signed statement requested by an
233     assessor as required under Section 59-2-306:
234          (i) the assessor shall:
235          (A) make a record of the failure to file; and
236          (B) make an estimate of the value of the property of the owner based on known facts
237     and circumstances; and
238          (ii) the assessor of a county of the first class:
239          (A) shall make a subsequent request by mail for the signed statement, informing the
240     owner of the consequences of not filing a signed statement; and
241          (B) may impose a fee for the actual and necessary expenses of the mailing under
242     Subsection (3)(a)(ii)(A).
243          (b) The value fixed by the assessor in accordance with Subsection (3)(a)(i) may not be
244     reduced by the county board of equalization or by the commission.
245          (4) If the signed statement discloses property in any other county, the assessor shall file
246     the signed statement and send a copy to the assessor of each county in which the property is
247     located.
248          Section 3. Retrospective operation.
249          The actions affecting Section 59-2-103.5 have retrospective operation to January 1,
250     2021.