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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to appeals to a county board of equalization.
10 Highlighted Provisions:
11 This bill:
12 ▸ in an appeal to a county board of equalization, requires the parties to disclose
13 certain evidence before the public hearing on the appeal;
14 ▸ allows a party to provide a written response to any previously undisclosed evidence
15 that another party presents at the public hearing;
16 ▸ authorizes a county board of equalization to create rules related to the disclosures
17 described in this bill, provided the rules are no less stringent than the provisions of
18 this bill; and
19 ▸ makes technical and conforming changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 AMENDS:
26 59-2-1004, as last amended by Laws of Utah 2021, Chapter 377
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 59-2-1004 is amended to read:
30 59-2-1004. Appeal to county board of equalization -- Real property -- Time
31 period for appeal -- Public hearing requirements -- Decision of board -- Extensions
32 approved by commission -- Appeal to commission.
33 (1) As used in this section:
34 (a) "Final assessed value" means:
35 (i) for real property for which the taxpayer appealed the valuation or equalization to the
36 county board of equalization in accordance with this section, the value given to the real
37 property by the county board of equalization, including a value based on a stipulation of the
38 parties;
39 (ii) for real property for which the taxpayer or a county assessor appealed the valuation
40 or equalization to the commission in accordance with Section 59-2-1006, the value given to the
41 real property by:
42 (A) the commission, if the commission has issued a decision in the appeal or the
43 parties have entered a stipulation; or
44 (B) a county board of equalization, if the commission has not yet issued a decision in
45 the appeal and the parties have not entered a stipulation; or
46 (iii) for real property for which the taxpayer or a county assessor sought judicial review
47 of the valuation or equalization in accordance with Section 59-1-602 or Title 63G, Chapter 4,
48 Part 4, Judicial Review, the value given the real property by the commission.
49 (b) "Inflation adjusted value" means the value of the real property that is the subject of
50 the appeal as calculated by changing the final assessed value for the previous taxable year for
51 the real property by the median property value change.
52 (c) "Median property value change" means the midpoint of the property value changes
53 for all real property that is:
54 (i) of the same class of real property as the qualified real property; and
55 (ii) located within the same county and within the same market area as the qualified
56 real property.
57 (d) "Property value change" means the percentage change in the fair market value of
58 real property on or after January 1 of the previous year and before January 1 of the current year.
59 (e) "Qualified real property" means real property:
60 (i) for which:
61 (A) the taxpayer or a county assessor appealed the valuation or equalization for the
62 previous taxable year to the county board of equalization in accordance with this section or the
63 commission in accordance with Section 59-2-1006;
64 (B) the appeal described in Subsection (1)(e)(i)(A), resulted in a final assessed value
65 that was lower than the assessed value; and
66 (C) the assessed value for the current taxable year is higher than the inflation adjusted
67 value; and
68 (ii) that, on or after January 1 of the previous taxable year and before January 1 of the
69 current taxable year, has not had a qualifying change.
70 (f) "Qualifying change" means one of the following changes to real property that
71 occurs on or after January 1 of the previous taxable year and before January 1 of the current
72 taxable year:
73 (i) a physical improvement if, solely as a result of the physical improvement, the fair
74 market value of the physical improvement equals or exceeds the greater of 10% of fair market
75 value of the real property or $20,000;
76 (ii) a zoning change, if the fair market value of the real property increases solely as a
77 result of the zoning change; or
78 (iii) a change in the legal description of the real property, if the fair market value of the
79 real property increases solely as a result of the change in the legal description of the real
80 property.
81 (2) (a) A taxpayer dissatisfied with the valuation or the equalization of the taxpayer's
82 real property may make an application to appeal by:
83 (i) filing the application with the county board of equalization within the time period
84 described in Subsection (3); or
85 (ii) making an application by telephone or other electronic means within the time
86 period described in Subsection (3) if the county legislative body passes a resolution under
87 Subsection [
88 electronic means.
89 (b) (i) The county board of equalization shall make a rule describing the contents of the
90 application.
91 (ii) In addition to any information the county board of equalization requires, the
92 application shall include information about:
93 (A) the burden of proof in an appeal involving qualified real property; and
94 (B) the process for the taxpayer to learn the inflation adjusted value of the qualified
95 real property.
96 (c) (i) (A) The county assessor shall notify the county board of equalization of a
97 qualified real property's inflation adjusted value within 15 business days after the date on which
98 the county assessor receives notice that a taxpayer filed an appeal with the county board of
99 equalization.
100 (B) The county assessor shall notify the commission of a qualified real property's
101 inflation adjusted value within 15 business days after the date on which the county assessor
102 receives notice that a person dissatisfied with the decision of a county board of equalization
103 files an appeal with the commission.
104 (ii) (A) A person may not appeal a county assessor's calculation of inflation adjusted
105 value but may appeal the fair market value of a qualified real property.
106 (B) A person may appeal a determination of whether, on or after January 1 of the
107 previous taxable year and before January 1 of the current taxable year, real property had a
108 qualifying change.
109 (3) (a) Except as provided in Subsection (3)(b) and for purposes of Subsection (2), a
110 taxpayer shall make an application to appeal the valuation or the equalization of the taxpayer's
111 real property on or before the later of:
112 (i) September 15 of the current calendar year; or
113 (ii) the last day of a 45-day period beginning on the day on which the county auditor
114 provides the notice under Section 59-2-919.1.
115 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
116 commission shall make rules providing for circumstances under which the county board of
117 equalization is required to accept an application to appeal that is filed after the time period
118 prescribed in Subsection (3)(a).
119 (4) (a) Except as provided in Subsection (4)(b), the taxpayer shall include in the
120 application under Subsection (2)(a):
121 (i) the taxpayer's estimate of the fair market value of the property and any evidence that
122 may indicate that the assessed valuation of the taxpayer's property is improperly equalized with
123 the assessed valuation of comparable properties; and
124 (ii) a signed statement of the personal property located in a multi-tenant residential
125 property, as that term is defined in Section 59-2-301.8 if the taxpayer:
126 (A) appeals the value of multi-tenant residential property assessed in accordance with
127 Section 59-2-301.8; and
128 (B) intends to contest the value of the personal property located within the multi-tenant
129 residential property.
130 (b) (i) For an appeal involving qualified real property:
131 (A) the county board of equalization shall presume that the fair market value of the
132 qualified real property is equal to the inflation adjusted value; and
133 (B) except as provided in Subsection (4)(b)(ii), the taxpayer may provide the
134 information described in Subsection (4)(a).
135 (ii) If the taxpayer seeks to prove that the fair market value of the qualified real
136 property is below the inflation adjusted value, the taxpayer shall provide the information
137 described in Subsection (4)(a).
138 (5) In reviewing evidence submitted to a county board of equalization by or on behalf
139 of an owner or a county assessor, the county board of equalization shall consider and weigh:
140 (a) the accuracy, reliability, and comparability of the evidence presented by the owner
141 or the county assessor;
142 (b) if submitted, the sales price of relevant property that was under contract for sale as
143 of the lien date but sold after the lien date;
144 (c) if submitted, the sales offering price of property that was offered for sale as of the
145 lien date but did not sell, including considering and weighing the amount of time for which,
146 and manner in which, the property was offered for sale; and
147 (d) if submitted, other evidence that is relevant to determining the fair market value of
148 the property.
149 (6) (a) Except as provided in Subsection (6)(c), at least five days before the day on
150 which the county board of equalization holds a public hearing on an appeal:
151 (i) the county assessor shall provide the taxpayer any evidence the county assessor
152 relies upon in support of the county assessor's valuation; and
153 (ii) the taxpayer shall provide the county assessor any evidence not previously provided
154 to the county assessor that the taxpayer relies upon in support of the taxpayer's appeal.
155 (b) (i) The deadline described in Subsection (6)(a) does not apply to evidence that is
156 commercial information as defined in Section 59-1-404, if:
157 (A) for the purpose of complying with Section 59-1-404, the county assessor requires
158 that the taxpayer execute a nondisclosure agreement before the county assessor discloses the
159 evidence; and
160 (B) the taxpayer fails to execute the nondisclosure agreement before the deadline
161 described in Subsection (6)(a).
162 (ii) The county assessor shall disclose evidence described in Subsection (6)(b)(i) as
163 soon as practicable after the county assessor receives the executed nondisclosure agreement.
164 (iii) The county assessor shall provide the taxpayer a copy of the nondisclosure
165 agreement with reasonable time for the taxpayer to review and execute the agreement before
166 the deadline described in Subsection (6)(a) expires.
167 (c) If at the public hearing, a party presents evidence not previously provided to the
168 other party, the county board of equalization shall allow the other party to respond to the
169 evidence in writing within 10 days after the day on which the public hearing occurs.
170 (d) (i) A county board of equalization may adopt rules governing the deadlines
171 described in this Subsection (6), if the rules are no less stringent than the provisions of this
172 Subsection (6).
173 (ii) A county board of equalization's rule that complies with Subsection (6)(d)(i)
174 controls over the provisions of this subsection.
175 [
176 described in Section 59-2-1001.
177 (b) (i) For purposes of this Subsection [
178 proposed adjustment to the valuation of real property that:
179 (A) is to be made by a county board of equalization; and
180 (B) would result in a valuation that differs from the original assessed value by at least
181 20% and $1,000,000.
182 (ii) When a county board of equalization is going to consider a significant adjustment,
183 the county board of equalization shall:
184 (A) list the significant adjustment as a separate item on the agenda of the public
185 hearing at which the county board of equalization is going to consider the significant
186 adjustment; and
187 (B) for purposes of the agenda described in Subsection [
188 description of the property for which the county board of equalization is considering a
189 significant adjustment.
190 (c) The county board of equalization shall make a decision on each appeal filed in
191 accordance with this section within 60 days after the day on which the taxpayer makes an
192 application.
193 (d) The commission may approve the extension of a time period provided for in
194 Subsection [
195 (e) Unless the commission approves the extension of a time period under Subsection
196 [
197 time period described in Subsection [
198 (i) list the appeal, by property owner and parcel number, on the agenda for the next
199 meeting the county legislative body holds after the expiration of the time period described in
200 Subsection [
201 (ii) hear the appeal at the meeting described in Subsection [
202 (f) The decision of the county board of equalization shall contain:
203 (i) a determination of the valuation of the property based on fair market value; and
204 (ii) a conclusion that the fair market value is properly equalized with the assessed value
205 of comparable properties.
206 (g) If no evidence is presented before the county board of equalization, the county
207 board of equalization shall presume that the equalization issue has been met.
208 (h) (i) If the fair market value of the property that is the subject of the appeal deviates
209 plus or minus 5% from the assessed value of comparable properties, the county board of
210 equalization shall adjust the valuation of the appealed property to reflect a value equalized with
211 the assessed value of comparable properties.
212 (ii) Subject to Sections 59-2-301.1, 59-2-301.2, 59-2-301.3, and 59-2-301.4, equalized
213 value established under Subsection [
214 purposes until the county assessor is able to evaluate and equalize the assessed value of all
215 comparable properties to bring all comparable properties into conformity with full fair market
216 value.
217 [
218 equalization, the taxpayer may file an appeal with the commission as described in Section
219 59-2-1006.
220 [
221 taxes on property assessed by that county to file property tax appeals applications under this
222 section by telephone or other electronic means.