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7 LONG TITLE
8 General Description:
9 This bill modifies provisions of the Farmland Assessment Act and the Urban Farming
10 Assessment Act.
11 Highlighted Provisions:
12 This bill:
13 ▸ provides that if a person withdraws land from assessment under the Farmland
14 Assessment Act, any portion of the land that is assessed under the Urban Farming
15 Assessment Act is not subject to a rollback tax;
16 ▸ establishes a renewal application under the Urban Farming Assessment Act;
17 ▸ for property that was previously assessed under the Farmland Assessment Act,
18 addresses eligibility and application of the rollback tax under the Urban Farming
19 Assessment Act; 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 59-2-506, as last amended by Laws of Utah 2017, Chapter 319
28 59-2-1703, as last amended by Laws of Utah 2019, Chapter 492
29 59-2-1705, as last amended by Laws of Utah 2017, Chapter 319
30 59-2-1707, as last amended by Laws of Utah 2017, Chapter 319
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 59-2-506 is amended to read:
34 59-2-506. Rollback tax -- Penalty -- Computation of tax -- Procedure -- Lien --
35 Interest -- Notice -- Collection -- Distribution.
36 (1) Except as provided in this section, Section 59-2-506.5, or Section 59-2-511, if land
37 is withdrawn from this part, the land is subject to a rollback tax imposed in accordance with
38 this section.
39 (2) (a) An owner shall notify the county assessor that land is withdrawn from this part
40 within 120 days after the day on which the land is withdrawn from this part.
41 (b) An owner that fails to notify the county assessor under Subsection (2)(a) that land is
42 withdrawn from this part is subject to a penalty equal to the greater of:
43 (i) $10; or
44 (ii) 2% of the rollback tax due for the last year of the rollback period.
45 (3) (a) The county assessor shall determine the amount of the rollback tax by
46 computing the difference for the rollback period described in Subsection (3)(b) between:
47 (i) the tax paid while the land was assessed under this part; and
48 (ii) the tax that would have been paid had the property not been assessed under this
49 part.
50 (b) For purposes of this section, the rollback period is a time period that:
51 (i) begins on the later of:
52 (A) the date the land is first assessed under this part; or
53 (B) five years preceding the day on which the county assessor mails the notice required
54 by Subsection (5); and
55 (ii) ends the day on which the county assessor mails the notice required by Subsection
56 (5).
57 (4) (a) The county treasurer shall:
58 (i) collect the rollback tax; and
59 (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
60 on the property has been satisfied by:
61 (A) preparing a document that certifies that the rollback tax lien on the property has
62 been satisfied; and
63 (B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
64 for recordation.
65 (b) The county treasurer shall pay the rollback tax collected under this section:
66 (i) into the county treasury; and
67 (ii) to the various taxing entities pro rata in accordance with the property tax levies for
68 the current year.
69 (5) (a) The county assessor shall mail to an owner of the land that is subject to a
70 rollback tax a notice that:
71 (i) the land is withdrawn from this part;
72 (ii) the land is subject to a rollback tax under this section; and
73 (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
74 30 days after the day on which the county assessor mails the notice described in this Subsection
75 (5)(a).
76 (b) (i) The rollback tax is due and payable on the day the county assessor mails the
77 notice required by Subsection (5)(a).
78 (ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
79 is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
80 the county assessor mails the notice required by Subsection (5)(a).
81 (6) (a) Subject to Subsection (6)(b), the following are a lien on the land assessed under
82 this part:
83 (i) the rollback tax; and
84 (ii) interest imposed in accordance with Subsection (7).
85 (b) The lien described in Subsection (6)(a) shall:
86 (i) arise upon the imposition of the rollback tax under this section;
87 (ii) end on the day on which the rollback tax and interest imposed in accordance with
88 Subsection (7) are paid in full; and
89 (iii) relate back to the first day of the rollback period described in Subsection (3)(b).
90 (7) (a) A delinquent rollback tax under this section shall accrue interest:
91 (i) from the date of delinquency until paid; and
92 (ii) at the interest rate established under Section 59-2-1331 and in effect on January 1
93 of the year in which the delinquency occurs.
94 (b) The county treasurer shall include in the notice required by Section 59-2-1317 a
95 rollback tax that is delinquent on September 1 of any year and interest calculated on that
96 delinquent amount through November 30 of the year in which the county treasurer provides the
97 notice under Section 59-2-1317.
98 (8) (a) Land that becomes ineligible for assessment under this part only as a result of an
99 amendment to this part is not subject to the rollback tax if the owner of the land notifies the
100 county assessor, in accordance with Subsection (2), that the land is withdrawn from this part.
101 (b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
102 an event other than an amendment to this part, whether voluntary or involuntary, is subject to
103 the rollback tax.
104 (9) Except as provided in Section 59-2-511, land that becomes exempt from taxation
105 under Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land
106 meets the requirements of Section 59-2-503 to be assessed under this part.
107 (10) Land that becomes ineligible for assessment under this part only as a result of a
108 split estate mineral rights owner exercising the right to extract a mineral is not subject to the
109 rollback tax:
110 (a) (i) for the portion of the land required by a split estate mineral rights owner to
111 extract a mineral if, after the split estate mineral rights owner exercises the right to extract a
112 mineral, the portion of the property that remains in agricultural production still meets the
113 acreage requirements of Section 59-2-503 for assessment under this part; or
114 (ii) for the entire acreage that would otherwise qualify for assessment under this part if,
115 after the split estate mineral rights owner exercises the right to extract a mineral, the entire
116 acreage that would otherwise qualify for assessment under this part no longer meets the acreage
117 requirements of Section 59-2-503 for assessment under this part only due to the extraction of
118 the mineral by the split estate mineral rights owner; and
119 (b) for the period of time that the property described in Subsection (10)(a) is ineligible
120 for assessment under this part due to the extraction of a mineral by the split estate mineral
121 rights owner.
122 (11) If a person withdraws land from this part, any portion of the withdrawn land that
123 is assessed under Part 17, Urban Farming Assessment Act, is not subject to the rollback tax.
124 Section 2. Section 59-2-1703 is amended to read:
125 59-2-1703. Qualifications for urban farming assessment.
126 (1) (a) For general property tax purposes, land may be assessed on the basis of the
127 value that the land has for agricultural use if the land:
128 (i) is actively devoted to urban farming;
129 (ii) is at least one contiguous acre, but less than five acres, in size; and
130 (iii) (A) has been actively devoted to urban farming for at least two successive years
131 immediately preceding the tax year for which the land is assessed under this part[
132 (B) was assessed under Part 5, Farmland Assessment Act, for the preceding tax year.
133 (b) Land that is not actively devoted to urban farming may not be assessed as provided
134 in Subsection (1)(a), even if the land is part of a parcel that includes land actively devoted to
135 urban farming.
136 (2) (a) In determining whether land is actively devoted to urban farming, production
137 per acre for a given county or area and a given type of land shall be determined by using the
138 first applicable of the following:
139 (i) production levels reported in the current publication of Utah Agricultural Statistics;
140 (ii) current crop budgets developed and published by Utah State University; or
141 (iii) the highest per acre value used for land assessed under the Farmland Assessment
142 Act for the county in which the property is located.
143 (b) A county assessor may not assess land actively devoted to urban farming on the
144 basis of the value that the land has for agricultural use under this part unless an owner annually
145 files documentation with the county assessor:
146 (i) on a form provided by the county assessor;
147 (ii) demonstrating to the satisfaction of the county assessor that the land meets the
148 production levels required under this part; and
149 (iii) except as provided in Subsection 59-2-1707(2)(c)(i), no later than January 30 for
150 each tax year in which the owner applies for assessment under this part.
151 (3) Notwithstanding Subsection (1)(a)(ii), a county board of equalization may grant a
152 waiver of the acreage requirements of Subsection (1)(a)(ii):
153 (a) on appeal by an owner; and
154 (b) if the owner submits documentation to the county assessor demonstrating to the
155 satisfaction of the county assessor that:
156 (i) the failure to meet the acreage requirements of Subsection (1)(a)(ii) arose solely as a
157 result of an acquisition by a governmental entity by:
158 (A) eminent domain; or
159 (B) the threat or imminence of an eminent domain proceeding;
160 (ii) the land is actively devoted to urban farming; and
161 (iii) no change occurs in the ownership of the land.
162 Section 3. Section 59-2-1705 is amended to read:
163 59-2-1705. Rollback tax -- Penalty -- Computation of tax -- Procedure -- Lien --
164 Interest -- Notice -- Collection -- Distribution -- Appeal to county board of equalization.
165 (1) Except as provided in this section or Section 59-2-1710, land that is withdrawn
166 from this part is subject to a rollback tax imposed as provided in this section.
167 (2) (a) An owner shall notify the county assessor that land is withdrawn from this part
168 within 120 days after the day on which the land is withdrawn from this part.
169 (b) An owner who fails to notify the county assessor under Subsection (2)(a) that land
170 is withdrawn from this part is subject to a penalty equal to the greater of:
171 (i) $10; or
172 (ii) 2% of the rollback tax due for the last year of the rollback period.
173 (3) (a) The county assessor shall determine the amount of the rollback tax by
174 computing the difference for the rollback period described in Subsection (3)(b) between:
175 (i) the tax paid while the land was assessed under this part; and
176 (ii) the tax that would have been paid had the property not been assessed under this
177 part.
178 (b) For purposes of this section, the rollback period is a time period that:
179 (i) begins on the later of:
180 (A) except as provided in Subsection (3)(c), the date the land is first assessed under
181 this part; or
182 (B) five years preceding the day on which the county assessor mails the notice required
183 by Subsection (5); and
184 (ii) ends the day on which the county assessor mails the notice required by Subsection
185 (5).
186 (c) For land that was previously assessed under Part 5, Farmland Assessment Act, the
187 date described in Subsection (3)(b)(i)(A) is the date the land was first assessed under Part 5,
188 Farmland Assessment Act, unless the land was subject to a rollback tax imposed under Section
189 59-2-506.
190 (4) (a) The county treasurer shall:
191 (i) collect the rollback tax; and
192 (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
193 on the property has been satisfied by:
194 (A) preparing a document that certifies that the rollback tax lien on the property has
195 been satisfied; and
196 (B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
197 for recording.
198 (b) The county treasurer shall pay the rollback tax collected under this section:
199 (i) into the county treasury; and
200 (ii) to the various taxing entities pro rata in accordance with the property tax levies for
201 the current year.
202 (5) (a) The county assessor shall mail to an owner of the land that is subject to a
203 rollback tax a notice that:
204 (i) the land is withdrawn from this part;
205 (ii) the land is subject to a rollback tax under this section; and
206 (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
207 30 days after the day on which the county assessor mails the notice described in this Subsection
208 (5)(a).
209 (b) (i) The rollback tax is due and payable on the day the county assessor mails the
210 notice required by Subsection (5)(a).
211 (ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
212 is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
213 the county assessor mails the notice required by Subsection (5)(a).
214 (6) (a) Subject to Subsection (6)(b), the rollback tax and interest imposed under
215 Subsection (7) are a lien on the land assessed under this part.
216 (b) The lien described in Subsection (6)(a) shall:
217 (i) arise upon the imposition of the rollback tax under this section;
218 (ii) end on the day on which the rollback tax and interest imposed under Subsection (7)
219 are paid in full; and
220 (iii) relate back to the first day of the rollback period described in Subsection (3)(b).
221 (7) (a) A delinquent rollback tax under this section shall accrue interest:
222 (i) from the date of delinquency until paid; and
223 (ii) at the interest rate established under Section 59-2-1331 and in effect on January 1
224 of the year in which the delinquency occurs.
225 (b) The county treasurer shall include in the notice required by Section 59-2-1317 a
226 rollback tax that is delinquent on September 1 of any year and interest calculated on that
227 delinquent amount through November 30 of the year in which the county treasurer provides the
228 notice under Section 59-2-1317.
229 (8) (a) Land that becomes ineligible for assessment under this part only as a result of an
230 amendment to this part is not subject to the rollback tax if the owner of the land notifies the
231 county assessor, in accordance with Subsection (2), that the land is withdrawn from this part.
232 (b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
233 an event other than an amendment to this part, whether voluntary or involuntary, is subject to
234 the rollback tax.
235 (9) Except as provided in Section 59-2-1710, land that becomes exempt from taxation
236 under Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land
237 meets the requirements of Section 59-2-1703 to be assessed under this part.
238 Section 4. Section 59-2-1707 is amended to read:
239 59-2-1707. Application -- Signed statement -- Consent to creation of a lien --
240 Consent to audit and review -- Notice.
241 (1) For land to be assessed under this part, an owner of land eligible for assessment
242 under this part shall annually submit [
243 county in which the land is located[
244 (a) an application described in Subsection (2); or
245 (b) a renewal application described in Subsection (3), if:
246 (i) the land was assessed under this part for the preceding year; and
247 (ii) there have been no changes to the eligibility information provided in the most
248 recently submitted application described in Subsection (2), other than information described in
249 Subsection 59-2-1703(2)(b).
250 (2) An application required by Subsection (1) shall:
251 (a) be on a form:
252 (i) approved by the commission; and
253 (ii) provided to an owner:
254 (A) by the county assessor; and
255 (B) at the request of an owner;
256 (b) provide for the reporting of information related to this part;
257 (c) be submitted by:
258 (i) May 1 of the tax year in which assessment under Subsection (1) is requested if the
259 land was not assessed under this part in the year before the application is submitted; or
260 (ii) the date otherwise required by this part for land that before the application being
261 submitted has been assessed under this part;
262 (d) be signed by all of the owners of the land that under the application would be
263 assessed under this part;
264 (e) be accompanied by the prescribed fees made payable to the county recorder;
265 (f) include a certification by an owner that the facts set forth in the application or
266 signed statement are true;
267 (g) include a statement that the application constitutes consent by the owners of the
268 land to the creation of a lien upon the land as provided in this part; and
269 (h) be recorded by the county recorder.
270 (3) A renewal application required by Subsection (1) shall:
271 (a) be on a form:
272 (i) approved by the commission; and
273 (ii) provided to an owner:
274 (A) by the county assessor; and
275 (B) at the request of an owner;
276 (b) provide for the reporting of the information described in Subsection
277 59-2-1703(2)(b);
278 (c) be submitted on or before January 30 of the tax year in which the owner requests
279 assessment under this part;
280 (d) be signed by all of the owners of the land;
281 (e) be accompanied by the prescribed fees made payable to the county recorder;
282 (f) include a certification by an owner that the following are true:
283 (i) the facts set forth in the renewal application or signed statement; and
284 (ii) other than the information described in Subsection 59-2-1703(2)(b), the facts set
285 forth in the most recently submitted application described in Subsection (2), as of the date the
286 renewal application is submitted;
287 (g) include a statement that the renewal application constitutes consent by the owners
288 of the land to the creation of a lien upon the land as provided in this part; and
289 (h) be recorded by the county recorder.
290 [
291 described in Subsection (3) constitutes consent by the owners of the land to the creation of a
292 lien upon the land as provided in this part.
293 [
294 application or a timely filed renewal application is incomplete, the county shall:
295 (i) notify the owner of the incomplete application or renewal application; and
296 (ii) allow the owner to complete the application or the renewal application within 30
297 days from the day on which the county provides notice to the owner.
298 (b) An application or a renewal application that has not been completed within 30 days
299 of the day of the notice described in Subsection [
300 [
301 assessor may not require an additional signed statement or application for assessment under
302 this part.
303 (b) Notwithstanding Subsection [
304 provide notice if land is withdrawn from this part as provided in Section 59-2-1705.
305 [
306 oath and subject to the same penalties as provided by law for perjury.
307 [
308 that signs a statement under Subsection [
309 audit and review by:
310 (i) the commission;
311 (ii) the county assessor; or
312 (iii) the commission and the county assessor.
313 (b) The consent described in Subsection [
314 an application or signed statement.
315 [
316 or lessee actively devotes the land to agricultural use as required by Section 59-2-1703, may
317 qualify the land for assessment under this part by submitting, with the application described in
318 Subsection (2) or the renewal application described in Subsection (3), a signed statement from
319 that purchaser or lessee certifying those facts that would be necessary to meet the requirements
320 of Section 59-2-1703 for assessment under this part.
321 Section 5. Retrospective operation.
322 The changes to Sections 59-2-506, 59-2-1705, and 59-2-1707 have retrospective
323 operation to May 5, 2021.