Senator Evan J. Vickers proposes the following substitute bill:


1     
MULTICOUNTY APPRAISAL TRUST MODIFICATIONS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jennifer Dailey-Provost

5     
Senate Sponsor: Evan J. Vickers

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to the Multicounty Appraisal Trust (trust).
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     increases the tax rate of the multicounty assessing and collecting levy imposed by
14     counties;
15          ▸     authorizes the use of trust funds to pay for property valuation services within
16     counties;
17          ▸     addresses the appointment and duties of the trustee of the trust;
18          ▸     requires each county to adopt the statewide property tax system by a certain date;
19          ▸     exempts certain counties from the requirement to adopt the statewide property tax
20     system;
21          ▸     provides for assistance to counties adopting the statewide property tax system; and
22          ▸     makes technical corrections.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:

26          This bill provides retrospective operation.
27     Utah Code Sections Affected:
28     AMENDS:
29          59-2-1601, as last amended by Laws of Utah 2022, Chapter 451
30          59-2-1602, as last amended by Laws of Utah 2022, Chapters 239, 451
31          59-2-1606, as last amended by Laws of Utah 2020, Chapter 447
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 59-2-1601 is amended to read:
35          59-2-1601. Definitions.
36          As used in this part:
37          (1) "County additional property tax" means the property tax levy described in
38     Subsection 59-2-1602(4).
39          (2) "Fund" means the Property Tax Valuation Fund created in Section 59-2-1602.
40          (3) "Multicounty Appraisal Trust" means the Multicounty Appraisal Trust created by
41     an agreement:
42          (a) entered into by all of the counties in the state; and
43          (b) authorized by Title 11, Chapter 13, Interlocal Cooperation Act.
44          (4) "Multicounty assessing and collecting levy" means a property tax levied in
45     accordance with Subsection 59-2-1602(2).
46          (5) (a) "Property valuation service" means any service or technology that promotes
47     uniform assessment levels for the valuation of personal property and real property in
48     accordance with Part 3, County Assessment.
49          (b) "Property valuation service" includes statewide aerial imagery, change detection,
50     sketch validation, exception analysis, commercial valuation modeling, residential valuation
51     modeling, automated valuation modeling, and equity analysis.
52          [(5)] (6) "Statewide property tax system" means a computer assisted system for mass
53     appraisal, equalization, collection, distribution, and administration related to property tax,
54     created by the Multicounty Appraisal Trust in accordance with Section 59-2-1606.
55          Section 2. Section 59-2-1602 is amended to read:
56          59-2-1602. Property Tax Valuation Fund -- Statewide levy -- Additional county

57     levy.
58          (1) (a) There is created a custodial fund known as the "Property Tax Valuation Fund."
59          (b) The fund consists of:
60          (i) deposits made and penalties received under Subsection (3); and
61          (ii) interest on money deposited into the fund.
62          (c) Deposits, penalties, and interest described in Subsection (1)(b) shall be disbursed
63     and used as provided in Section 59-2-1603.
64          (2) (a) Each county shall annually impose a multicounty assessing and collecting levy
65     as provided in this Subsection (2).
66          (b) The tax rate of the multicounty assessing and collecting levy is:
67          (i) for a calendar year beginning on or after January 1, [2022] 2024, and before January
68     1, 2025,[.000015; and] .000024;
69          (ii) for a calendar year beginning on or after January 1, 2025, and before January 1,
70     2026, .000034; and
71          [(ii)] (iii) for a calendar year beginning on or after January 1, [2025] 2026, the certified
72     revenue levy rounded up to the sixth decimal place.
73          (c) The state treasurer shall allocate revenue collected from the multicounty assessing
74     and collecting levy as follows:
75          (i) 18% of the revenue collected shall be deposited into the Property Tax Valuation
76     Fund, up to $500,000 annually; and
77          (ii) after the deposit described in Subsection (2)(c)(i), all remaining revenue collected
78     from the multicounty assessing and collecting levy shall be deposited into the Multicounty
79     Appraisal Trust.
80          (3) (a) The multicounty assessing and collecting levy imposed under Subsection (2)
81     shall be separately stated on the tax notice as a multicounty assessing and collecting levy.
82          (b) The multicounty assessing and collecting levy is:
83          (i) exempt from Sections 17C-1-403 through 17C-1-406;
84          (ii) in addition to and exempt from the maximum levies allowable under Section
85     59-2-908; and
86          (iii) exempt from the notice and public hearing requirements of Section 59-2-919.
87          (c) (i) Each county shall transmit quarterly to the state treasurer the revenue collected

88     from the multicounty assessing and collecting levy.
89          (ii) The revenue transmitted under Subsection (3)(c)(i) shall be transmitted no later
90     than the tenth day of the month following the end of the quarter in which the revenue is
91     collected.
92          (iii) If revenue transmitted under Subsection (3)(c)(i) is transmitted after the tenth day
93     of the month following the end of the quarter in which the revenue is collected, the county shall
94     pay an interest penalty at the rate of 10% each year until the revenue is transmitted.
95          (d) The state treasurer shall allocate the penalties received under this Subsection (3) in
96     the same manner as revenue is allocated under Subsection (2)(c).
97          (4) (a) A county may levy a county additional property tax in accordance with this
98     Subsection (4).
99          (b) The county additional property tax:
100          (i) shall be separately stated on the tax notice as a county assessing and collecting levy;
101          (ii) may not be incorporated into the rate of any other levy;
102          (iii) is exempt from Sections 17C-1-403 through 17C-1-406; and
103          (iv) is in addition to and exempt from the maximum levies allowable under Section
104     59-2-908.
105          (c) Revenue collected from the county additional property tax shall be used to:
106          (i) promote the accurate valuation and uniform assessment levels of property as
107     required by Section 59-2-103;
108          (ii) promote the efficient administration of the property tax system, including the costs
109     of assessment, collection, and distribution of property taxes;
110          (iii) fund state mandated actions to meet legislative mandates or judicial or
111     administrative orders that relate to promoting:
112          (A) the accurate valuation of property; and
113          (B) the establishment and maintenance of uniform assessment levels within and among
114     counties; and
115          (iv) establish reappraisal programs that:
116          (A) are adopted by a resolution or ordinance of the county legislative body; and
117          (B) conform to rules the commission makes in accordance with Title 63G, Chapter 3,
118     Utah Administrative Rulemaking Act.

119          Section 3. Section 59-2-1606 is amended to read:
120          59-2-1606. Statewide property tax system funding for counties -- Disbursements
121     to the Multicounty Appraisal Trust -- Use of funds deposited into the Multicounty
122     Appraisal Trust -- Appointment and duties of trustee -- County adoption of statewide
123     property tax system.
124          (1) The funds deposited into the Multicounty Appraisal Trust in accordance with
125     Section 59-2-1602 shall be used to provide funding for:
126          (a) a statewide property tax system that will promote:
127          [(a)] (i) the accurate valuation of property;
128          [(b)] (ii) the establishment and maintenance of uniform assessment levels among
129     counties within the state;
130          [(c)] (iii) efficient administration of the property tax system, including the costs of
131     assessment, collection, and distribution of property taxes; and
132          [(d)] (iv) the uniform filing of a signed statement a county assessor requests under
133     Section 59-2-306, including implementation of a statewide electronic filing system[.]; and
134          (b) property valuation services within counties.
135          (2) (a) An association representing at least two-thirds of the counties in the state shall
136     appoint a trustee of the Multicounty Appraisal Trust.
137          (b) The trustee of the Multicounty Appraisal Trust shall:
138          [(a)] (i) determine which projects to fund, including property valuation services within
139     counties; and
140          [(b)] (ii) oversee the administration of a statewide property tax system that meets the
141     requirements of Subsection (1)(a).
142          (3) (a) Except as provided in Subsection (3)(b), each county shall adopt the statewide
143     property tax system on or before January 1, 2026.
144          (b) A county is exempt from the requirement in Subsection (3)(a) if:
145          (i) the county utilizes a computer assisted property tax system for mass appraisal other
146     than the statewide property tax system;
147          (ii) the county demonstrates to the trustee of the Multicounty Appraisal Trust and to the
148     commission that the property tax system described in Subsection (3)(b)(i) is interoperable with
149     the statewide property tax system; and

150          (iii) the trustee of the Multicounty Appraisal Trust and the commission approve the
151     county's exemption from the requirement in Subsection (3)(a).
152          (c) The commission and an association that represents at least two-thirds of the
153     counties in the state shall assist any county adopting the statewide property tax system under
154     Subsection (3)(a).
155          Section 4. Effective date.
156          This bill takes effect on May 1, 2024.
157          Section 5. Retrospective operation.
158          Section 59-2-1602 has retrospective operation for a taxable year beginning on or after
159     January 1, 2024.