Senator Curtis S. Bramble proposes the following substitute bill:


1     
PROPERTY TAX AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Curtis S. Bramble

5     
House Sponsor: Adam Robertson

6     

7     LONG TITLE
8     General Description:
9          This bill modifies property tax and fee in lieu of property tax assessment provisions.
10     Highlighted Provisions:
11          This bill:
12          ▸     clarifies the formula for calculating an energy supplier's fee in lieu of property tax;
13          ▸     requires an interlocal entity that owns an electric generation and transmission
14     facility to report to the State Tax Commission information about sales of electricity
15     to energy suppliers and public agencies;
16          ▸     modifies the circumstances under which a county has to require a written
17     declaration to qualify for the primary residential property tax exemption;
18          ▸     modifies a property owner's right to appeal a determination about the owner's
19     eligibility for the primary residential property tax exemption;
20          ▸     defines "public utility" and "telecommunications service provider";
21          ▸     provides that the State Tax Commission may not assess property owned by a
22     telecommunications service provider;
23          ▸     creates a process for the Multicounty Appraisal Trust to value personal property of a
24     telecommunications service provider before forwarding the information to county
25     assessors for assessment; and

26          ▸     makes technical and conforming changes.
27     Money Appropriated in this Bill:
28          None
29     Other Special Clauses:
30          This bill provides a special effective date.
31          This bill provides retrospective operation.
32     Utah Code Sections Affected:
33     AMENDS:
34          11-13-302, as last amended by Laws of Utah 2018, Chapters 415 and 456
35          59-2-102, as last amended by Laws of Utah 2021, Chapter 314
36          59-2-103.5, as last amended by Laws of Utah 2021, Chapters 367 and 389
37          59-2-201, as last amended by Laws of Utah 2017, Chapter 425
38          59-2-306, as last amended by Laws of Utah 2010, Chapter 131
39          59-2-307, as last amended by Laws of Utah 2021, Chapter 389
40          59-2-308, as enacted by Laws of Utah 1987, Chapter 4
41          59-2-1005, as last amended by Laws of Utah 2010, Chapter 131
42     ENACTS:
43          59-2-306.5, Utah Code Annotated 1953
44     

45     Be it enacted by the Legislature of the state of Utah:
46          Section 1. Section 11-13-302 is amended to read:
47          11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
48     suppliers -- Method of calculating -- Collection -- Extent of tax lien.
49          (1) (a) Each project entity created under this chapter that owns a project and that sells
50     any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible
51     property is not exempted by Utah Constitution Article XIII, Section 3, from the payment of ad
52     valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
53     this section to each taxing jurisdiction within which the project or any part of it is located.
54          (b) For purposes of this section, "annual fee" means the annual fee described in
55     Subsection (1)(a) that is in lieu of ad valorem property tax.
56          (c) The requirement to pay an annual fee shall commence:

57          (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
58     impact alleviation payments under contracts or determination orders provided for in Sections
59     11-13-305 and 11-13-306, with the fiscal year of the candidate following the fiscal year of the
60     candidate in which the date of commercial operation of the last generating unit, other than any
61     generating unit providing additional project capacity, of the project occurs, or, in the case of
62     any facilities providing additional project capacity, with the fiscal year of the candidate
63     following the fiscal year of the candidate in which the date of commercial operation of the
64     generating unit providing the additional project capacity occurs; and
65          (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
66     Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
67     project commences, or, in the case of facilities providing additional project capacity, with the
68     fiscal year of the taxing jurisdiction in which construction of those facilities commences.
69          (d) The requirement to pay an annual fee shall continue for the period of the useful life
70     of the project or facilities.
71          (2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
72     because the ad valorem property tax imposed by a school district and authorized by the
73     Legislature represents both:
74          (i) a levy mandated by the state for the state minimum school program under Section
75     53F-2-301 or 53F-2-301.5, as applicable; and
76          (ii) local levies for capital outlay and other purposes under Sections 53F-8-303,
77     53F-8-301, and 53F-8-302.
78          (b) The annual fees due a school district shall be as follows:
79          (i) the project entity shall pay to the school district an annual fee for the state minimum
80     school program at the rate imposed by the school district and authorized by the Legislature
81     under Section 53F-2-301 or 53F-2-301.5, as applicable ; and
82          (ii) for all other local property tax levies authorized to be imposed by a school district,
83     the project entity shall pay to the school district either:
84          (A) an annual fee; or
85          (B) impact alleviation payments under contracts or determination orders provided for
86     in Sections 11-13-305 and 11-13-306.
87          (3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated

88     by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
89     multiplying the fee base or value determined in accordance with Subsection (4) for that year of
90     the portion of the project located within the jurisdiction by the percentage of the project which
91     is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.
92          (b) As used in this section, "tax rate," when applied in respect to a school district,
93     includes any assessment to be made by the school district under Subsection (2) or Section
94     63M-5-302.
95          (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
96     an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
97     the proceeds of which were used to provide public facilities and services for impact alleviation
98     in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306.
99          (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
100          (i) take into account the fee base or value of the percentage of the project located
101     within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
102     capacity, service, or other benefit sold to the supplier or suppliers; and
103          (ii) reflect any credit to be given in that year.
104          (4) (a) Except as otherwise provided in this section, the annual fees required by this
105     section shall be paid, collected, and distributed to the taxing jurisdiction as if:
106          (i) the annual fees were ad valorem property taxes; and
107          (ii) the project were assessed at the same rate and upon the same measure of value as
108     taxable property in the state.
109          (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
110     this section, the fee base of a project may be determined in accordance with an agreement
111     among:
112          (A) the project entity; and
113          (B) any county that:
114          (I) is due an annual fee from the project entity; and
115          (II) agrees to have the fee base of the project determined in accordance with the
116     agreement described in this Subsection (4).
117          (ii) The agreement described in Subsection (4)(b)(i):
118          (A) shall specify each year for which the fee base determined by the agreement shall be

119     used for purposes of an annual fee; and
120          (B) may not modify any provision of this chapter except the method by which the fee
121     base of a project is determined for purposes of an annual fee.
122          (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
123     described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
124     Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
125     jurisdiction.
126          (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
127     year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
128     portion of the project for which there is not an agreement:
129          (I) for that year; and
130          (II) using the same measure of value as is used for taxable property in the state.
131          (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
132     Commission in accordance with rules made by the State Tax Commission.
133          (c) Payments of the annual fees shall be made from:
134          (i) the proceeds of bonds issued for the project; and
135          (ii) revenues derived by the project entity from the project.
136          (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
137     other benefits of the project whose tangible property is not exempted by Utah Constitution
138     Article XIII, Section 3, from the payment of ad valorem property tax shall require each
139     purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
140     its share, determined in accordance with the terms of the contract, of these fees.
141          (ii) It is the responsibility of the project entity to enforce the obligations of the
142     purchasers.
143          (5) (a) The responsibility of the project entity to make payment of the annual fees is
144     limited to the extent that there is legally available to the project entity, from bond proceeds or
145     revenues, money to make these payments, and the obligation to make payments of the annual
146     fees is not otherwise a general obligation or liability of the project entity.
147          (b) No tax lien may attach upon any property or money of the project entity by virtue of
148     any failure to pay all or any part of an annual fee.
149          (c) The project entity or any purchaser may contest the validity of an annual fee to the

150     same extent as if the payment was a payment of the ad valorem property tax itself.
151          (d) The payments of an annual fee shall be reduced to the extent that any contest is
152     successful.
153          (6) (a) The annual fee described in Subsection (1):
154          (i) shall be paid by a public agency that:
155          (A) is not a project entity; and
156          (B) owns an interest in a facility providing additional project capacity if the interest is
157     otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
158          (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
159     accordance with Subsection (6)(b).
160          (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
161     rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
162          (i) the fee base or value of the facility providing additional project capacity located
163     within the jurisdiction;
164          (ii) the percentage of the ownership interest of the public agency in the facility; and
165          (iii) the portion, expressed as a percentage, of the public agency's ownership interest
166     that is attributable to the capacity, service, or other benefit from the facility that is sold,
167     including any subsequent sale, resale, or layoff, by the public agency to an energy supplier or
168     suppliers whose tangible property is not exempted by Utah Constitution, Article XIII, Section
169     3, from the payment of ad valorem property tax.
170          (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
171     obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
172     to its ownership interest as though it were a project entity.
173          (d) On or before March 1 of each year, a project entity that owns a project and that
174     provides any capacity, service, or other benefit to an energy supplier or a public agency shall
175     file an electronic report with the State Tax Commission that identifies:
176          (i) each energy supplier and public agency to which the project entity delivers capacity,
177     service, or other benefit; and
178          (ii) the amount of capacity, service, or other benefit delivered to each energy supplier
179     and public agency.
180          Section 2. Section 59-2-102 is amended to read:

181          59-2-102. Definitions.
182          As used in this chapter:
183          (1) (a) "Acquisition cost" means any cost required to put an item of tangible personal
184     property into service.
185          (b) "Acquisition cost" includes:
186          (i) the purchase price of a new or used item;
187          (ii) the cost of freight, shipping, loading at origin, unloading at destination, crating,
188     skidding, or any other applicable cost of shipping;
189          (iii) the cost of installation, engineering, rigging, erection, or assembly, including
190     foundations, pilings, utility connections, or similar costs; and
191          (iv) sales and use taxes.
192          (2) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
193     engaging in dispensing activities directly affecting agriculture or horticulture with an
194     airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
195     rotorcraft's use for agricultural and pest control purposes.
196          (3) "Air charter service" means an air carrier operation that requires the customer to
197     hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
198     trip.
199          (4) "Air contract service" means an air carrier operation available only to customers
200     that engage the services of the carrier through a contractual agreement and excess capacity on
201     any trip and is not available to the public at large.
202          (5) "Aircraft" means the same as that term is defined in Section 72-10-102.
203          (6) (a) Except as provided in Subsection (6)(b), "airline" means an air carrier that:
204          (i) operates:
205          (A) on an interstate route; and
206          (B) on a scheduled basis; and
207          (ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
208     regularly scheduled route.
209          (b) "Airline" does not include an:
210          (i) air charter service; or
211          (ii) air contract service.

212          (7) "Assessment roll" or "assessment book" means a permanent record of the
213     assessment of property as assessed by the county assessor and the commission and may be
214     maintained manually or as a computerized file as a consolidated record or as multiple records
215     by type, classification, or categories.
216          (8) "Base parcel" means a parcel of property that was legally:
217          (a) subdivided into two or more lots, parcels, or other divisions of land; or
218          (b) (i) combined with one or more other parcels of property; and
219          (ii) subdivided into two or more lots, parcels, or other divisions of land.
220          (9) (a) "Certified revenue levy" means a property tax levy that provides an amount of
221     ad valorem property tax revenue equal to the sum of:
222          (i) the amount of ad valorem property tax revenue to be generated statewide in the
223     previous year from imposing a multicounty assessing and collecting levy, as specified in
224     Section 59-2-1602; and
225          (ii) the product of:
226          (A) eligible new growth, as defined in Section 59-2-924; and
227          (B) the multicounty assessing and collecting levy certified by the commission for the
228     previous year.
229          (b) For purposes of this Subsection (9), "ad valorem property tax revenue" does not
230     include property tax revenue received by a taxing entity from personal property that is:
231          (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
232          (ii) semiconductor manufacturing equipment.
233          (c) For purposes of calculating the certified revenue levy described in this Subsection
234     (9), the commission shall use:
235          (i) the taxable value of real property assessed by a county assessor contained on the
236     assessment roll;
237          (ii) the taxable value of real and personal property assessed by the commission; and
238          (iii) the taxable year end value of personal property assessed by a county assessor
239     contained on the prior year's assessment roll.
240          (10) "County-assessed commercial vehicle" means:
241          (a) any commercial vehicle, trailer, or semitrailer that is not apportioned under Section
242     41-1a-301 and is not operated interstate to transport the vehicle owner's goods or property in

243     furtherance of the owner's commercial enterprise;
244          (b) any passenger vehicle owned by a business and used by its employees for
245     transportation as a company car or vanpool vehicle; and
246          (c) vehicles that are:
247          (i) especially constructed for towing or wrecking, and that are not otherwise used to
248     transport goods, merchandise, or people for compensation;
249          (ii) used or licensed as taxicabs or limousines;
250          (iii) used as rental passenger cars, travel trailers, or motor homes;
251          (iv) used or licensed in this state for use as ambulances or hearses;
252          (v) especially designed and used for garbage and rubbish collection; or
253          (vi) used exclusively to transport students or their instructors to or from any private,
254     public, or religious school or school activities.
255          (11) "Eligible judgment" means a final and unappealable judgment or order under
256     Section 59-2-1330:
257          (a) that became a final and unappealable judgment or order no more than 14 months
258     before the day on which the notice described in Section 59-2-919.1 is required to be provided;
259     and
260          (b) for which a taxing entity's share of the final and unappealable judgment or order is
261     greater than or equal to the lesser of:
262          (i) $5,000; or
263          (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
264     previous fiscal year.
265          (12) (a) "Escaped property" means any property, whether personal, land, or any
266     improvements to the property, that is subject to taxation and is:
267          (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
268     to the wrong taxpayer by the assessing authority;
269          (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
270     comply with the reporting requirements of this chapter; or
271          (iii) undervalued because of errors made by the assessing authority based upon
272     incomplete or erroneous information furnished by the taxpayer.
273          (b) "Escaped property" does not include property that is undervalued because of the use

274     of a different valuation methodology or because of a different application of the same valuation
275     methodology.
276          (13)(a) "Fair market value" means the amount at which property would change hands
277     between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
278     and both having reasonable knowledge of the relevant facts.
279          (b) For purposes of taxation, "fair market value" shall be determined using the current
280     zoning laws applicable to the property in question, except in cases where there is a reasonable
281     probability of a change in the zoning laws affecting that property in the tax year in question and
282     the change would have an appreciable influence upon the value.
283          (14) "Geothermal fluid" means water in any form at temperatures greater than 120
284     degrees centigrade naturally present in a geothermal system.
285          (15) "Geothermal resource" means:
286          (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
287     and
288          (b) the energy, in whatever form, including pressure, present in, resulting from, created
289     by, or which may be extracted from that natural heat, directly or through a material medium.
290          (16) (a) "Goodwill" means:
291          (i) acquired goodwill that is reported as goodwill on the books and records that a
292     taxpayer maintains for financial reporting purposes; or
293          (ii) the ability of a business to:
294          (A) generate income that exceeds a normal rate of return on assets and that results from
295     a factor described in Subsection (16)(b); or
296          (B) obtain an economic or competitive advantage resulting from a factor described in
297     Subsection (16)(b).
298          (b) The following factors apply to Subsection (16)(a)(ii):
299          (i) superior management skills;
300          (ii) reputation;
301          (iii) customer relationships;
302          (iv) patronage; or
303          (v) a factor similar to Subsections (16)(b)(i) through (iv).
304          (c) "Goodwill" does not include:

305          (i) the intangible property described in Subsection (19)(a) or (b);
306          (ii) locational attributes of real property, including:
307          (A) zoning;
308          (B) location;
309          (C) view;
310          (D) a geographic feature;
311          (E) an easement;
312          (F) a covenant;
313          (G) proximity to raw materials;
314          (H) the condition of surrounding property; or
315          (I) proximity to markets;
316          (iii) value attributable to the identification of an improvement to real property,
317     including:
318          (A) reputation of the designer, builder, or architect of the improvement;
319          (B) a name given to, or associated with, the improvement; or
320          (C) the historic significance of an improvement; or
321          (iv) the enhancement or assemblage value specifically attributable to the interrelation
322     of the existing tangible property in place working together as a unit.
323          (17) "Governing body" means:
324          (a) for a county, city, or town, the legislative body of the county, city, or town;
325          (b) for a local district under Title 17B, Limited Purpose Local Government Entities -
326     Local Districts, the local district's board of trustees;
327          (c) for a school district, the local board of education;
328          (d) for a special service district under Title 17D, Chapter 1, Special Service District
329     Act:
330          (i) the legislative body of the county or municipality that created the special service
331     district, to the extent that the county or municipal legislative body has not delegated authority
332     to an administrative control board established under Section 17D-1-301; or
333          (ii) the administrative control board, to the extent that the county or municipal
334     legislative body has delegated authority to an administrative control board established under
335     Section 17D-1-301; or

336          (e) for a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure
337     District Act, the public infrastructure district's board of trustees.
338          (18) (a) Except as provided in Subsection (18)(c), "improvement" means a building,
339     structure, fixture, fence, or other item that is permanently attached to land, regardless of
340     whether the title has been acquired to the land, if:
341          (i) (A) attachment to land is essential to the operation or use of the item; and
342          (B) the manner of attachment to land suggests that the item will remain attached to the
343     land in the same place over the useful life of the item; or
344          (ii) removal of the item would:
345          (A) cause substantial damage to the item; or
346          (B) require substantial alteration or repair of a structure to which the item is attached.
347          (b) "Improvement" includes:
348          (i) an accessory to an item described in Subsection (18)(a) if the accessory is:
349          (A) essential to the operation of the item described in Subsection (18)(a); and
350          (B) installed solely to serve the operation of the item described in Subsection (18)(a);
351     and
352          (ii) an item described in Subsection (18)(a) that is temporarily detached from the land
353     for repairs and remains located on the land.
354          (c) "Improvement" does not include:
355          (i) an item considered to be personal property pursuant to rules made in accordance
356     with Section 59-2-107;
357          (ii) a moveable item that is attached to land for stability only or for an obvious
358     temporary purpose;
359          (iii) (A) manufacturing equipment and machinery; or
360          (B) essential accessories to manufacturing equipment and machinery;
361          (iv) an item attached to the land in a manner that facilitates removal without substantial
362     damage to the land or the item; or
363          (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
364     transportable factory-built housing unit is considered to be personal property under Section
365     59-2-1503.
366          (19) "Intangible property" means:

367          (a) property that is capable of private ownership separate from tangible property,
368     including:
369          (i) money;
370          (ii) credits;
371          (iii) bonds;
372          (iv) stocks;
373          (v) representative property;
374          (vi) franchises;
375          (vii) licenses;
376          (viii) trade names;
377          (ix) copyrights; and
378          (x) patents;
379          (b) a low-income housing tax credit;
380          (c) goodwill; or
381          (d) a renewable energy tax credit or incentive, including:
382          (i) a federal renewable energy production tax credit under Section 45, Internal Revenue
383     Code;
384          (ii) a federal energy credit for qualified renewable electricity production facilities under
385     Section 48, Internal Revenue Code;
386          (iii) a federal grant for a renewable energy property under American Recovery and
387     Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
388          (iv) a tax credit under Subsection 59-7-614(5).
389          (20) "Livestock" means:
390          (a) a domestic animal;
391          (b) a fish;
392          (c) a fur-bearing animal;
393          (d) a honeybee; or
394          (e) poultry.
395          (21) "Low-income housing tax credit" means:
396          (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
397     or

398          (b) a low-income housing tax credit under Section 59-7-607 or Section 59-10-1010.
399          (22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
400          (23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
401     valuable mineral.
402          (24) "Mining" means the process of producing, extracting, leaching, evaporating, or
403     otherwise removing a mineral from a mine.
404          (25) (a) "Mobile flight equipment" means tangible personal property that is owned or
405     operated by an air charter service, air contract service, or airline and:
406          (i) is capable of flight or is attached to an aircraft that is capable of flight; or
407          (ii) is contained in an aircraft that is capable of flight if the tangible personal property
408     is intended to be used:
409          (A) during multiple flights;
410          (B) during a takeoff, flight, or landing; and
411          (C) as a service provided by an air charter service, air contract service, or airline.
412          (b) (i) "Mobile flight equipment" does not include a spare part other than a spare
413     engine that is rotated at regular intervals with an engine that is attached to the aircraft.
414          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
415     commission may make rules defining the term "regular intervals."
416          (26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
417     sand, rock, gravel, and all carboniferous materials.
418          (27) "Part-year residential property" means property that is not residential property on
419     January 1 of a calendar year but becomes residential property after January 1 of the calendar
420     year.
421          (28) "Personal property" includes:
422          (a) every class of property as defined in Subsection (29) that is the subject of
423     ownership and is not real estate or an improvement;
424          (b) any pipe laid in or affixed to land whether or not the ownership of the pipe is
425     separate from the ownership of the underlying land, even if the pipe meets the definition of an
426     improvement;
427          (c) bridges and ferries;
428          (d) livestock; and

429          (e) outdoor advertising structures as defined in Section 72-7-502.
430          (29) (a) "Property" means property that is subject to assessment and taxation according
431     to its value.
432          (b) "Property" does not include intangible property as defined in this section.
433          (30) (a) "Public utility" means:
434          [(a) for purposes of this chapter,] (i) the operating property of a railroad, gas
435     corporation, oil or gas transportation or pipeline company, coal slurry pipeline company,
436     electrical corporation, [telephone corporation,] sewerage corporation, or heat corporation where
437     the company performs the service for, or delivers the commodity to, the public generally or
438     companies serving the public generally, or in the case of a gas corporation or an electrical
439     corporation, where the gas or electricity is sold or furnished to any member or consumers
440     within the state for domestic, commercial, or industrial use; and
441          [(b)] (ii) the operating property of any entity or person defined under Section 54-2-1
442     except water corporations.
443          (b) "Public utility" does not include the operating property of a telecommunications
444     service provider.
445          (31) (a) Subject to Subsection (31)(b), "qualifying exempt primary residential rental
446     personal property" means household furnishings, furniture, and equipment that:
447          (i) are used exclusively within a dwelling unit that is the primary residence of a tenant;
448          (ii) are owned by the owner of the dwelling unit that is the primary residence of a
449     tenant; and
450          (iii) after applying the residential exemption described in Section 59-2-103, are exempt
451     from taxation under this chapter in accordance with Subsection 59-2-1115(2).
452          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
453     commission may by rule define the term "dwelling unit" for purposes of this Subsection (31)
454     and Subsection (34).
455          (32) "Real estate" or "real property" includes:
456          (a) the possession of, claim to, ownership of, or right to the possession of land;
457          (b) all mines, minerals, and quarries in and under the land, all timber belonging to
458     individuals or corporations growing or being on the lands of this state or the United States, and
459     all rights and privileges appertaining to these; and

460          (c) improvements.
461          (33) (a) "Relationship with an owner of the property's land surface rights" means a
462     relationship described in Subsection 267(b), Internal Revenue Code, except that the term 25%
463     shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code.
464          (b) For purposes of determining if a relationship described in Subsection 267(b),
465     Internal Revenue Code, exists, the ownership of stock shall be determined using the ownership
466     rules in Subsection 267(c), Internal Revenue Code.
467          (34) (a) "Residential property," for purposes of the reductions and adjustments under
468     this chapter, means any property used for residential purposes as a primary residence.
469          (b) "Residential property" includes:
470          (i) except as provided in Subsection (34)(b)(ii), includes household furnishings,
471     furniture, and equipment if the household furnishings, furniture, and equipment are:
472          (A) used exclusively within a dwelling unit that is the primary residence of a tenant;
473     and
474          (B) owned by the owner of the dwelling unit that is the primary residence of a tenant;
475     and
476          (ii) if the county assessor determines that the property will be used for residential
477     purposes as a primary residence:
478          (A) property under construction; or
479          (B) unoccupied property.
480          (c) "Residential property" does not include property used for transient residential use.
481          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
482     commission may by rule define the term "dwelling unit" for purposes of Subsection (31) and
483     this Subsection (34).
484          (35) "Split estate mineral rights owner" means a person that:
485          (a) has a legal right to extract a mineral from property;
486          (b) does not hold more than a 25% interest in:
487          (i) the land surface rights of the property where the wellhead is located; or
488          (ii) an entity with an ownership interest in the land surface rights of the property where
489     the wellhead is located;
490          (c) is not an entity in which the owner of the land surface rights of the property where

491     the wellhead is located holds more than a 25% interest; and
492          (d) does not have a relationship with an owner of the land surface rights of the property
493     where the wellhead is located.
494          (36) (a) "State-assessed commercial vehicle" means:
495          (i) any commercial vehicle, trailer, or semitrailer that operates interstate or intrastate to
496     transport passengers, freight, merchandise, or other property for hire; or
497          (ii) any commercial vehicle, trailer, or semitrailer that operates interstate and transports
498     the vehicle owner's goods or property in furtherance of the owner's commercial enterprise.
499          (b) "State-assessed commercial vehicle" does not include vehicles used for hire that are
500     specified in Subsection (10)(c) as county-assessed commercial vehicles.
501          (37) "Subdivided lot" means a lot, parcel, or other division of land, that is a division of
502     a base parcel.
503          (38) "Tax area" means a geographic area created by the overlapping boundaries of one
504     or more taxing entities.
505          (39) "Taxable value" means fair market value less any applicable reduction allowed for
506     residential property under Section 59-2-103.
507          (40) "Taxing entity" means any county, city, town, school district, special taxing
508     district, local district under Title 17B, Limited Purpose Local Government Entities - Local
509     Districts, or other political subdivision of the state with the authority to levy a tax on property.
510          (41) (a) "Tax roll" means a permanent record of the taxes charged on property, as
511     extended on the assessment roll, and may be maintained on the same record or records as the
512     assessment roll or may be maintained on a separate record properly indexed to the assessment
513     roll.
514          (b) "Tax roll" includes tax books, tax lists, and other similar materials.
515          (42) "Telecommunications service provider" means the same as that term is defined in
516     Section 59-12-102.
517          Section 3. Section 59-2-103.5 is amended to read:
518          59-2-103.5. Procedures to obtain an exemption for residential property --
519     Procedure if property owner or property no longer qualifies to receive a residential
520     exemption.
521          (1) Subject to Subsection (8), for residential property other than part-year residential

522     property, a county legislative body may adopt an ordinance that requires an owner to file an
523     application with the county board of equalization before a residential exemption under Section
524     59-2-103 may be applied to the value of the residential property if:
525          (a) the residential property was ineligible for the residential exemption during the
526     calendar year immediately preceding the calendar year for which the owner is seeking to have
527     the residential exemption applied to the value of the residential property;
528          (b) an ownership interest in the residential property changes; or
529          (c) the county board of equalization determines that there is reason to believe that the
530     residential property no longer qualifies for the residential exemption.
531          (2) (a) The application described in Subsection (1):
532          (i) shall be on a form the commission prescribes by rule and makes available to the
533     counties;
534          (ii) shall be signed by the owner of the residential property; and
535          (iii) may not request the sales price of the residential property.
536          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
537     commission may make rules prescribing the contents of the form described in Subsection
538     (2)(a).
539          (c) For purposes of the application described in Subsection (1), a county may not
540     request information from an owner of a residential property beyond the information provided in
541     the form prescribed by the commission under this Subsection (2).
542          (3) (a) Regardless of whether a county legislative body adopts an ordinance described
543     in Subsection (1), before a residential exemption may be applied to the value of part-year
544     residential property, an owner of the property shall:
545          (i) file the application described in Subsection (2)(a) with the county board of
546     equalization; and
547          (ii) include as part of the application described in Subsection (2)(a) a statement that
548     certifies:
549          (A) the date the part-year residential property became residential property;
550          (B) that the part-year residential property will be used as residential property for 183 or
551     more consecutive calendar days during the calendar year for which the owner seeks to obtain
552     the residential exemption; and

553          (C) that the owner, or a member of the owner's household, may not claim a residential
554     exemption for any property for the calendar year for which the owner seeks to obtain the
555     residential exemption, other than the part-year residential property, or as allowed under Section
556     59-2-103 with respect to the primary residence or household furnishings, furniture, and
557     equipment of the owner's tenant.
558          (b) If an owner files an application under this Subsection (3) on or after May 1 of the
559     calendar year for which the owner seeks to obtain the residential exemption, the county board
560     of equalization may require the owner to pay an application fee not to exceed $50.
561          (4) Except as provided in Subsection (5), if a property owner no longer qualifies to
562     receive a residential exemption authorized under Section 59-2-103 for the property owner's
563     primary residence, the property owner shall:
564          (a) file a written statement with the county board of equalization of the county in which
565     the property is located:
566          (i) on a form provided by the county board of equalization; and
567          (ii) notifying the county board of equalization that the property owner no longer
568     qualifies to receive a residential exemption authorized under Section 59-2-103 for the property
569     owner's primary residence; and
570          (b) declare on the property owner's individual income tax return under Chapter 10,
571     Individual Income Tax Act, for the taxable year for which the property owner no longer
572     qualifies to receive a residential exemption authorized under Section 59-2-103 for the property
573     owner's primary residence, that the property owner no longer qualifies to receive a residential
574     exemption authorized under Section 59-2-103 for the property owner's primary residence.
575          (5) A property owner is not required to file a written statement or make the declaration
576     described in Subsection (4) if the property owner:
577          (a) changes primary residences;
578          (b) qualified to receive a residential exemption authorized under Section 59-2-103 for
579     the residence that was the property owner's former primary residence; and
580          (c) qualifies to receive a residential exemption authorized under Section 59-2-103 for
581     the residence that is the property owner's current primary residence.
582          (6) Subsections (2) through (5) do not apply to qualifying exempt primary residential
583     rental personal property.

584          (7) (a) Subject to Subsection (8), for the first calendar year in which a property owner
585     qualifies to receive a residential exemption under Section 59-2-103, a county assessor may
586     require the property owner to file a signed statement described in Section 59-2-306.
587          (b) Subject to Subsection (8) and notwithstanding Section 59-2-306, for a calendar year
588     after the calendar year described in Subsection (7)(a) in which a property owner qualifies for an
589     exemption described in Subsection 59-2-1115(2) for qualifying exempt primary residential
590     rental personal property, a signed statement described in Section 59-2-306 with respect to the
591     qualifying exempt primary residential rental personal property may only require the property
592     owner to certify, under penalty of perjury, that the property owner qualifies for the exemption
593     under Subsection 59-2-1115(2).
594          (8) (a) [Subject to the requirements of this Subsection (8) and except as provided in
595     Subsection (8)(b), on or before May 1, 2020, a] After an ownership interest in residential
596     property changes, the county assessor shall:
597          (i) notify [each owner of] the owner of the residential property that the owner is
598     required to submit a written declaration described in Subsection (8)(d) within [30] 90 days after
599     the day on which the county assessor mails the notice under this Subsection (8)(a); and
600          (ii) provide [each owner with a] the owner of the residential property with the form
601     described in Subsection (8)(e) to make the written declaration described in Subsection (8)(d).
602          (b) A county assessor is not required to provide a notice to an owner of residential
603     property under Subsection (8)(a) if the situs address of the residential property is the same as
604     any one of the following:
605          (i) the mailing address of the residential property owner or the tenant of the residential
606     property;
607          (ii) the address listed on the:
608          (A) residential property owner's driver license; or
609          (B) tenant of the residential property's driver license; or
610          (iii) the address listed on the:
611          (A) residential property owner's voter registration; or
612          (B) tenant of the residential property's voter registration.
613          [(c) After an ownership interest in residential property changes, the county assessor
614     shall:]

615          [(i) notify the owner of the residential property that the owner is required to submit a
616     written declaration described in Subsection (8)(d) within 90 days after the day on which the
617     owner receives notice under this Subsection (8)(c); and]
618          [(ii) provide the owner of the residential property with the form described in
619     Subsection (8)(e) to make the written declaration described in Subsection (8)(d).]
620          (c) A county assessor is not required to provide a notice to an owner of residential
621     property under Subsection (8)(a) if:
622          (i) the owner is using a post office box or rural route box located in the county where
623     the residential property is located; and
624          (ii) the residential property is located in a county of the fourth, fifth, or sixth class.
625          (d) An owner of residential property that receives a notice described in Subsection
626     (8)(a) [or (c)] shall submit a written declaration to the county assessor under penalty of perjury
627     certifying the information contained in the form provided in Subsection (8)(e).
628          (e) The written declaration required by Subsection (8)(d) shall be:
629          (i) signed by the owner of the residential property; and
630          (ii) in substantially the following form:
631     
"Residential Property Declaration

632          This form must be submitted to the County Assessor's office where your new residential
633     property is located within 90 days of receipt. Failure to do so will result in the county assessor
634     taking action that could result in the withdrawal of the primary residential exemption from your
635     residential property.
636     
Residential Property Owner Information

637          Name(s):__________________________________________________
638          Home Phone:_______________________________________________
639          Work Phone:_______________________________________________
640          Mailing Address:____________________________________________
641     
Residential Property Information

642          Physical Address:___________________________________________
643          Certification
644          1. Is this property used as a primary residential property or part-year residential
645     property for you or another person?

646          "Part-year residential property" means owned property that is not residential property on
647     January 1 of a calendar year but becomes residential property after January 1 of the calendar
648     year.
649          Yes           No
650          2. Will this primary residential property or part-year residential property be occupied
651     for 183 or more consecutive calendar days by the owner or another person?
652          A part-year residential property occupied for 183 or more consecutive calendar days in
653     a calendar year by the owner(s) or a tenant is eligible for the exemption.
654          Yes          No
655          If a property owner or a property owner's spouse claims a residential exemption under
656     Utah Code Ann. § 59-2-103 for property in this state that is the primary residence of the
657     property owner or the property owner's spouse, that claim of a residential exemption creates a
658     rebuttable presumption that the property owner and the property owner's spouse have domicile
659     in Utah for income tax purposes. The rebuttable presumption of domicile does not apply if the
660     residential property is the primary residence of a tenant of the property owner or the property
661     owner's spouse.
662          Signature
663          Under penalties of perjury, I declare to the best of my knowledge and belief, this
664     declaration and accompanying pages are true, correct, and complete.
665          __________________(Owner signature) _____________________Date (mm/dd/yyyy)
666          __________________(Owner printed name)
667          (f) For purposes of a written declaration described in this Subsection (8), a county may
668     not request information from a property owner beyond the information described in the form
669     provided in Subsection (8)(e).
670          (g) (i) If, after receiving a written declaration filed under Subsection (8)(d), the county
671     determines that the property has been incorrectly qualified or disqualified to receive a
672     residential exemption, the county shall:
673          (A) redetermine the property's qualification to receive a residential exemption; and
674          (B) notify the claimant of the redetermination and [its] the county's reason for the
675     redetermination.
676          (ii) The redetermination provided in Subsection (8)(g)(i)(A) is final unless [appealed

677     within 30 days after the notice required by Subsection (8)(g)(i)(B).]:
678          (A) except as provided in Subsection (8)(g)(iii), the property owner appeals the
679     redetermination to the board of equalization in accordance with Subsection 59-2-1004(2); or
680          (B) the county determines that the property is eligible to receive a primary residential
681     exemption as part-year residential property.
682          (iii) The board of equalization may not accept an appeal that is filed after the later of:
683          (A) September 15 of the current calendar year; or
684          (B) the last day of the 45-day period beginning on the day on which the county auditor
685     provides the notice under Section 59-2-919.1.
686          (h) (i) If a residential property owner fails to file a written declaration required by
687     Subsection (8)(d), the county assessor shall mail to the owner of the residential property a
688     notice that:
689          (A) the property owner failed to file a written declaration as required by Subsection
690     (8)(d); and
691          (B) the property owner will no longer qualify to receive the residential exemption
692     authorized under Section 59-2-103 for the property that is the subject of the written declaration
693     if the property owner does not file the written declaration required by Subsection (8)(d) within
694     30 days after the day on which the county assessor mails the notice under this Subsection
695     (8)(h)(i).
696          (ii) If a property owner fails to file a written declaration required by Subsection (8)(d)
697     after receiving the notice described in Subsection (8)(h)(i), the property owner no longer
698     qualifies to receive the residential exemption authorized under Section 59-2-103 in the calendar
699     year for the property that is the subject of the written declaration[.] unless:
700          (A) except as provided in Subsection (8)(h)(iii), the property owner appeals the
701     redetermination to the board of equalization in accordance with Subsection 59-2-1004(2); or
702          (B) the county determines that the property is eligible to receive a primary residential
703     exemption as part-year residential property.
704          (iii) The board of equalization may not accept an appeal that is filed after the later of:
705          (A) September 15 of the current calendar year; or
706          (B) the last day of the 45-day period beginning on the day on which the county auditor
707     provides the notice under Section 59-2-919.1.

708          [(iii)] (iv) A property owner that is disqualified to receive the residential exemption
709     under Subsection (8)(h)(ii) may file an application described in Subsection (1) to determine
710     whether the owner is eligible to receive the residential exemption.
711          (i) The requirements of this Subsection (8) do not apply to a county assessor in a
712     county that has, for the five calendar years prior to 2019, had in place and enforced an
713     ordinance described in Subsection (1).
714          Section 4. Section 59-2-201 is amended to read:
715          59-2-201. Assessment by commission -- Determination of value of mining
716     property -- Determination of value of aircraft -- Notification of assessment -- Local
717     assessment of property assessed by the unitary method -- Commission may consult with
718     county.
719          (1) (a) By May 1 of each year, the following property, unless otherwise exempt under
720     the Utah Constitution or under Part 11, Exemptions, Deferrals, and Abatements, shall be
721     assessed by the commission at 100% of fair market value, as valued on January 1, in
722     accordance with this chapter:
723          (i) except as provided in Subsection (2), all property that operates as a unit across
724     county lines, if the values must be apportioned among more than one county or state;
725          (ii) all property of public utilities;
726          (iii) all operating property of an airline, air charter service, and air contract service;
727          (iv) all geothermal fluids and geothermal resources;
728          (v) all mines and mining claims except in cases, as determined by the commission,
729     where the mining claims are used for other than mining purposes, in which case the value of
730     mining claims used for other than mining purposes shall be assessed by the assessor of the
731     county in which the mining claims are located; and
732          (vi) all machinery used in mining, all property or surface improvements upon or
733     appurtenant to mines or mining claims. For the purposes of assessment and taxation, all
734     processing plants, mills, reduction works, and smelters that are primarily used by the owner of
735     a mine or mining claim for processing, reducing, or smelting minerals taken from a mine or
736     mining claim shall be considered appurtenant to that mine or mining claim, regardless of actual
737     location.
738          (b) (i) For purposes of Subsection (1)(a)(iii), operating property of an air charter

739     service does not include an aircraft that is:
740          (A) used by the air charter service for air charter; and
741          (B) owned by a person other than the air charter service.
742          (ii) For purposes of this Subsection (1)(b):
743          (A) "person" means a natural person, individual, corporation, organization, or other
744     legal entity; and
745          (B) a person does not qualify as a person other than the air charter service as described
746     in Subsection (1)(b)(i)(B) if the person is:
747          (I) a principal, owner, or member of the air charter service; or
748          (II) a legal entity that has a principal, owner, or member of the air charter service as a
749     principal, owner, or member of the legal entity.
750          (2) (a) The commission may not assess property owned by a telecommunications
751     service provider.
752          (b) The commission shall assess and collect property tax on state-assessed commercial
753     vehicles at the time of original registration or annual renewal.
754          [(a)] (i) The commission shall assess and collect property tax annually on
755     state-assessed commercial vehicles that are registered pursuant to Section 41-1a-222 or
756     41-1a-228.
757          [(b)] (ii) State-assessed commercial vehicles brought into the state that are required to
758     be registered in Utah shall, as a condition of registration, be subject to ad valorem tax unless all
759     property taxes or fees imposed by the state of origin have been paid for the current calendar
760     year.
761          [(c)] (iii) Real property, improvements, equipment, fixtures, or other personal property
762     in this state owned by the company shall be assessed separately by the local county assessor.
763          [(d)] (iv) The commission shall adjust the value of state-assessed commercial vehicles
764     as necessary to comply with 49 U.S.C. Sec. 14502, and the commission shall direct the county
765     assessor to apply the same adjustment to any personal property, real property, or improvements
766     owned by the company and used directly and exclusively in their commercial vehicle activities.
767          (3) (a) The method for determining the fair market value of productive mining property
768     is the capitalized net revenue method or any other valuation method the commission believes,
769     or the taxpayer demonstrates to the commission's satisfaction, to be reasonably determinative

770     of the fair market value of the mining property.
771          (b) The commission shall determine the rate of capitalization applicable to mines,
772     consistent with a fair rate of return expected by an investor in light of that industry's current
773     market, financial, and economic conditions.
774          (c) In no event may the fair market value of the mining property be less than the fair
775     market value of the land, improvements, and tangible personal property upon or appurtenant to
776     the mining property.
777          (4) (a) As used in this Subsection (4), "aircraft pricing guide" means a nationally
778     recognized publication that assigns value estimates for individual commercial aircraft that are:
779          (i) identified by year, make, and model; and
780          (ii) in average condition typical for the aircraft's type and vintage.
781          (b) (i) Except as provided in Subsection (4)(d), the commission shall use an aircraft
782     pricing guide, adjusted as provided in Subsection (4)(c), to determine the fair market value of
783     aircraft assessed under this part.
784          (ii) The commission shall use the Airliner Price Guide as the aircraft pricing guide,
785     except that:
786          (A) if the Airliner Price Guide is no longer published or the commission determines
787     that another aircraft pricing guide more reasonably reflects the fair market value of aircraft, the
788     commission, after consulting with the airlines operating in the state, shall select an alternative
789     aircraft pricing guide;
790          (B) if an aircraft is not listed in the Airliner Price Guide, the commission shall use the
791     Aircraft Bluebook Price Digest as the aircraft pricing guide; and
792          (C) if the Aircraft Bluebook Price Digest is no longer published or the commission
793     determines that another aircraft pricing guide more reasonably reflects the fair market value of
794     aircraft, the commission, after consulting with the airlines operating in the state, shall select an
795     alternative aircraft pricing guide.
796          (c) (i) To reflect the value of an aircraft fleet that is used as part of the operating
797     property of an airline, air charter service, or air contract service, the fair market value of the
798     aircraft shall include a fleet adjustment as provided in this Subsection (4)(c).
799          (ii) If the aircraft pricing guide provides a method for making a fleet adjustment, the
800     commission shall use the method described in the aircraft pricing guide.

801          (iii) If the aircraft pricing guide does not provide a method for making a fleet
802     adjustment, the commission shall make a fleet adjustment by reducing the aircraft pricing guide
803     value of each aircraft in the fleet by .5% for each aircraft over three aircraft up to a maximum
804     20% reduction.
805          (d) The commission may use an alternative method for valuing aircraft of an airline, air
806     charter service, or air contract service if the commission:
807          (i) has clear and convincing evidence that the aircraft values reflected in the aircraft
808     pricing guide do not reasonably reflect fair market value of the aircraft; and
809          (ii) cannot identify an alternative aircraft pricing guide from which the commission
810     may determine aircraft value.
811          (5) Immediately following the assessment, the commission shall send, by certified
812     mail, notice of the assessment to the owner or operator of the assessed property and the
813     assessor of the county in which the property is located.
814          (6) The commission may consult with a county in valuing property in accordance with
815     this part.
816          (7) The local county assessor shall separately assess property that is assessed by the
817     unitary method if the commission determines that the property:
818          (a) is not necessary to the conduct of the business; and
819          (b) does not contribute to the income of the business.
820          Section 5. Section 59-2-306 is amended to read:
821          59-2-306. Statements by taxpayers -- Power of assessors respecting statements --
822     Reporting information to other counties, taxpayer.
823          (1) (a) [The] Except as provided in Subsection (1)(c), the county assessor may request
824     a signed statement from any person setting forth all the real and personal property assessable by
825     the assessor [which is owned, possessed, managed, or under the control of the person] that the
826     person owns, possesses, manages, or has under the person's control at 12 noon on January 1.
827          (b) A request under Subsection (1)(a) shall include a notice of the procedure under
828     Section 59-2-1005 for appealing the value of the personal property.
829          (c) A telecommunications service provider shall file a signed statement setting forth
830     the telecommunications service provider's:
831          (i) real property in accordance with this section; and

832          (ii) personal property in accordance with Section 59-2-306.5.
833          (d) A telecommunications service provider shall claim an exemption for personal
834     property in accordance with Section 59-2-1115.
835          (2) (a) Except as provided in Subsection (2)(b) or (c), a person shall file a signed
836     statement described in Subsection (1) [shall be filed] on or before May 15 of the year the
837     county assessor requests the statement described in Subsection (1) [is requested by the county
838     assessor].
839          (b) For a county of the first class, a person shall file the signed statement described in
840     Subsection (1) [shall be filed] on or before the later of:
841          (i) 60 days after [requested by the assessor] the day on which the county assessor
842     requests the statement; or
843          (ii) [on or before] May 15 of the year the county assessor requests the statement
844     described in Subsection (1) [is requested by the county assessor] if, by resolution, the county
845     legislative body of that county adopts the deadline described in Subsection (2)(a).
846          (c) If a county assessor requests a signed statement described in Subsection (1) on or
847     after March 16, the person shall file the signed statement within 60 days after [requested by the
848     assessor] the day on which the county assessor requests the signed statement.
849          (3) The signed statement shall include the following:
850          (a) all property belonging to, claimed by, or in the possession, control, or management
851     of the person, any firm of which the person is a member, or any corporation of which the
852     person is president, secretary, cashier, or managing agent;
853          (b) the county in which the property is located or in which [it] the property is taxable;
854     and, if taxable in the county in which the signed statement was made, also the city, town,
855     school district, road district, or other taxing district in which [it] the property is located or
856     taxable; and
857          (c) all lands in parcels or subdivisions not exceeding 640 acres each, the sections and
858     fractional sections of all tracts of land containing more than 640 acres [which] that have been
859     sectionized by the United States Government, and the improvements on those lands.
860          (4) Every county assessor may subpoena and examine any person in any county in
861     relation to any signed statement but may not require that person to appear in any county other
862     than the county in which the subpoena is served.

863          (5) (a) Except as provided in Subsection (5)(b), if the signed statement discloses
864     property in any other county, the county assessor shall file the signed statement and send a copy
865     to the county assessor of each county in which the property is located.
866          (b) If the signed statement discloses personal property of a telecommunications service
867     provider, the county assessor shall notify the telecommunications service provider of the
868     requirement to file a signed statement in accordance with Section 59-2-306.5.
869          Section 6. Section 59-2-306.5 is enacted to read:
870          59-2-306.5. Valuation of personal property of telecommunications service
871     provider -- Reporting information to counties.
872          (1) As used in this section, "Multicounty Appraisal Trust" means the same as that term
873     is defined in Section 59-2-1601.
874          (2) A telecommunications service provider shall provide to the Multicounty Appraisal
875     Trust a signed statement setting forth all of the personal property that the telecommunications
876     service provider owns, possesses, manages, or has under the telecommunications service
877     provider's control in the state.
878          (3) The signed statement shall:
879          (a) itemize each item of personal property that the telecommunications service provider
880     owns, possesses, manages, or has under the telecommunications service provider's control:
881          (i) by county; and
882          (ii) for the tax year that began on January 1; and
883          (b) be submitted:
884          (i) annually on or before May 15; and
885          (ii) electronically in a form approved by the commission.
886          (4) (a) The Multicounty Appraisal Trust shall value each item of personal property of a
887     telecommunications service provider according to the personal property valuation guides and
888     schedules established by the commission.
889          (b) A telecommunications service provider may appeal the valuation of personal
890     property in accordance with Section 59-2-1005.
891          (5) The Multicounty Appraisal Trust shall forward to each county information about
892     the total value of personal property of each telecommunications service provider within the
893     county.

894          (6) If a signed statement filed in accordance with this section discloses real property,
895     the Multicounty Appraisal Trust shall send a copy of the signed statement to the county in
896     which the property is located.
897          Section 7. Section 59-2-307 is amended to read:
898          59-2-307. Refusal by taxpayer to file signed statement -- Estimation of Value --
899     Penalty.
900          (1) (a) Each person [who] that fails to file the signed statement required by Section
901     59-2-306 or Section 59-2-306.5, fails to file the signed statement with respect to name and
902     place of residence, or fails to appear and testify when requested by the assessor, shall pay a
903     penalty equal to 10% of the estimated tax due, but not less than $25 for each failure to file a
904     signed and completed statement.
905          (b) The Multicounty Appraisal Trust shall notify the county assessor of a
906     telecommunications service provider's failure to file the signed statement.
907          [(b)] (c) [Each] The assessor shall collect each penalty under Subsection (1)(a) [shall
908     be collected] in the manner provided by Sections 59-2-1302 and 59-2-1303, except as
909     otherwise provided for in this section, or by a judicial proceeding brought in the name of the
910     assessor.
911          [(c) All money recovered by any assessor under this section shall be paid into the
912     county treasury.]
913          (d) The assessor shall pay all money recovered under this section into the county
914     treasury.
915          (2) [(a)] Upon a showing of reasonable cause, a county may waive or reduce a penalty
916     imposed under Subsection (1)(a).
917          [(b)] (a) (i) Except as provided in Subsection (2)(b)(ii), a county assessor may impose a
918     penalty under Subsection (1)(a) [may be imposed] on or after May 16 of the year the county
919     assessor requests the statement described in Section 59-2-306 [is requested by the county
920     assessor] or is due under Section 59-2-306.5.
921          (ii) A county assessor may not impose a penalty under Subsection (1)(a) [may not be
922     imposed] until 30 days after the postmark date of mailing of a subsequent notice if the signed
923     statement described in Section 59-2-306 is requested:
924          (A) on or after March 16; or

925          (B) by a county assessor of a county of the first class.
926          (3) (a) If an owner neglects or refuses to file a signed statement requested by an
927     assessor as required under Section 59-2-306:
928          (i) the assessor shall:
929          (A) make a record of the failure to file; and
930          (B) make an estimate of the value of the property of the owner based on known facts
931     and circumstances; and
932          (ii) the assessor of a county of the first class:
933          (A) shall make a subsequent request by mail for the signed statement, informing the
934     owner of the consequences of not filing a signed statement; and
935          (B) may impose a fee for the actual and necessary expenses of the mailing under
936     Subsection (3)(a)(ii)(A).
937          (b) (i) If a telecommunications service provider neglects or refuses to file a signed
938     statement in accordance with Section 59-2-306.5, the Multicounty Appraisal Trust shall make:
939          (A) a record of the failure to file;
940          (B) a request by mail for the signed statement, informing the telecommunications
941     service provider of the consequences of not filing a signed statement; and
942          (C) an estimate of the value of the personal property of the telecommunications
943     service provider based on known facts and circumstances.
944          (ii) The Multicounty Appraisal Trust may impose a fee for the actual and necessary
945     expenses of the mailing under Subsection (3)(b)(i)(B).
946          (c) A county board of equalization or the commission may not reduce the value fixed
947     by the assessor in accordance with Subsection (3)(a)(i) or the Multicounty Appraisal Trust in
948     accordance with Subsection (3)(b)(i).
949          [(b) The value fixed by the assessor in accordance with Subsection (3)(a)(i) may not be
950     reduced by the county board of equalization or by the commission.]
951          [(4) If the signed statement discloses property in any other county, the assessor shall
952     file the signed statement and send a copy to the assessor of each county in which the property is
953     located.]
954          Section 8. Section 59-2-308 is amended to read:
955          59-2-308. Assessment in name of representative -- Assessment of property of

956     decedents -- Assessment of property in litigation -- Assessment of personal property
957     valued by Multicounty Appraisal Trust.
958          (1) If a person is assessed as agent, trustee, bailee, guardian, executor, or administrator,
959     [the] a county shall:
960          (a) add the representative designation [shall be added] to the name[,]; and [the
961     assessment entered]
962          (b) enter the assessment separately from the individual assessment.
963          (2) [The] A county may assess the undistributed or unpartitioned property of a
964     deceased [person may be assessed] individual to an heir, guardian, executor, or administrator,
965     and the payment of taxes binds all the parties in interest.
966          (3) Property in litigation, which is in the possession of a court or receiver, shall be
967     assessed to the court clerk or receiver, and the taxes shall be paid under the direction of the
968     court.
969          (4) A county shall add the valuation the Multicounty Appraisal Trust gives to personal
970     property of a telecommunications service provider to the valuation of any real property of the
971     telecommunications service provider within the county before making an assessment in
972     accordance with this part.
973          Section 9. Section 59-2-1005 is amended to read:
974          59-2-1005. Procedures for appeal of personal property valuation -- Time for
975     appeal -- Hearing -- Decision -- Appeal to commission.
976          (1)(a) A taxpayer owning personal property assessed by a county assessor under
977     Section 59-2-301 may make an appeal relating to the value of the personal property by filing an
978     application with the county legislative body no later than:
979          (i) the expiration of the time allowed under Section 59-2-306 for filing a signed
980     statement, if the county assessor requests a signed statement under Section 59-2-306 or the
981     expiration of the time allowed under Section 59-2-306.5 if the taxpayer is a
982     telecommunications service provider; or
983          (ii) 60 days after the mailing of the tax notice, for each other taxpayer.
984          (b) A county legislative body shall:
985          (i) after giving reasonable notice, hear an appeal filed under Subsection (1)(a); and
986          (ii) render a written decision on the appeal within 60 days after receiving the appeal.

987          (c) If the taxpayer is dissatisfied with a county legislative body decision under
988     Subsection (1)(b), the taxpayer may file an appeal with the commission in accordance with
989     Section 59-2-1006.
990          (2) A taxpayer owning personal property subject to a fee in lieu of tax or a uniform tax
991     under Article XIII, Section 2 of the Utah Constitution that is based on the value of the property
992     may appeal the basis of the value by filing an appeal with the commission within 30 days after
993     the mailing of the tax notice.
994          Section 10. Effective date.
995          (1) Except as provided in Subsection (2), and if approved by two-thirds of all the
996     members elected to each house, this bill takes effect upon approval by the governor, or the day
997     following the constitutional time limit of Utah Constitution, Article VII, Section 8, without the
998     governor's signature, or in the case of a veto, the date of veto override.
999          (2) The changes to the following sections take effect on January 1, 2023:
1000          (a) Section 11-13-302;
1001          (b) Section 59-2-102;
1002          (c) Section 59-2-201;
1003          (d) Section 59-2-306;
1004          (e) Section 59-2-306.5;
1005          (f) Section 59-2-307;
1006          (g) Section 59-2-308; and
1007          (h) Section 59-2-1005.
1008          Section 11. Retrospective operation.
1009          The changes to Section 59-2-103.5 have retrospective operation to January 1, 2022.