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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to appeals involving the valuation or equalization
10 of residential property.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ describes the types of evidence that a county board of equalization or hearing officer
15 may consider in weighing the accuracy of certain sales price information involving
16 residential property;
17 ▸ requires a county board of equalization, in certain appeals involving residential
18 property, to only consider evidence submitted by the parties; and
19 ▸ makes technical changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill provides retrospective operation.
24 This bill provides coordination clauses.
25 Utah Code Sections Affected:
26 AMENDS:
27 59-2-1004, as last amended by Laws of Utah 2022, Chapter 168
28 Utah Code Sections Affected By Coordination Clause:
29 59-2-1004, as last amended by Laws of Utah 2022, Chapter 168
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31 Be it enacted by the Legislature of the state of Utah:
32 The following section is affected by a coordination clause at the end of this bill.
33 Section 1. Section 59-2-1004 is amended to read:
34 59-2-1004. Appeal to county board of equalization -- Real property -- Time
35 period for appeal -- Public hearing requirements -- Decision of board -- Extensions
36 approved by commission -- Appeal to commission.
37 (1) As used in this section:
38 (a) "Applicable lien date" means January 1 of the year in which the valuation or
39 equalization of real property is appealed to the county board of equalization.
40 [
41 (i) for real property for which the taxpayer appealed the valuation or equalization to the
42 county board of equalization in accordance with this section, the value given to the real
43 property by the county board of equalization, including a value based on a stipulation of the
44 parties;
45 (ii) for real property for which the taxpayer or a county assessor appealed the valuation
46 or equalization to the commission in accordance with Section 59-2-1006, the value given to the
47 real property by:
48 (A) the commission, if the commission has issued a decision in the appeal or the
49 parties have entered a stipulation; or
50 (B) a county board of equalization, if the commission has not yet issued a decision in
51 the appeal and the parties have not entered a stipulation; or
52 (iii) for real property for which the taxpayer or a county assessor sought judicial review
53 of the valuation or equalization in accordance with Section 59-1-602 or Title 63G, Chapter 4,
54 Part 4, Judicial Review, the value given the real property by the commission.
55 [
56 subject of the appeal as calculated by changing the final assessed value for the previous taxable
57 year for the real property by the median property value change.
58 [
59 changes for all real property that is:
60 (i) of the same class of real property as the qualified real property; and
61 (ii) located within the same county and within the same market area as the qualified
62 real property.
63 [
64 of real property on or after January 1 of the previous year and before January 1 of the current
65 year.
66 [
67 (i) for which:
68 (A) the taxpayer or a county assessor appealed the valuation or equalization for the
69 previous taxable year to the county board of equalization in accordance with this section or the
70 commission in accordance with Section 59-2-1006;
71 (B) the appeal described in Subsection [
72 assessed value that was lower than the assessed value; and
73 (C) the assessed value for the current taxable year is higher than the inflation adjusted
74 value; and
75 (ii) that, on or after January 1 of the previous taxable year and before January 1 of the
76 current taxable year, has not had a qualifying change.
77 [
78 occurs on or after January 1 of the previous taxable year and before January 1 of the current
79 taxable year:
80 (i) a physical improvement if, solely as a result of the physical improvement, the fair
81 market value of the physical improvement equals or exceeds the greater of 10% of fair market
82 value of the real property or $20,000;
83 (ii) a zoning change, if the fair market value of the real property increases solely as a
84 result of the zoning change; or
85 (iii) a change in the legal description of the real property, if the fair market value of the
86 real property increases solely as a result of the change in the legal description of the real
87 property.
88 (h) "Qualifying contract" means a contract for the completed sale of residential
89 property that:
90 (i) involves residential property for which a taxpayer appealed the valuation or
91 equalization to the county board of equalization;
92 (ii) identifies the final sales price for the residential property described in Subsection
93 (1)(h)(i); and
94 (iii) is executed within six months before or after the applicable lien date.
95 (2) (a) A taxpayer dissatisfied with the valuation or the equalization of the taxpayer's
96 real property may make an application to appeal by:
97 (i) filing the application with the county board of equalization within the time period
98 described in Subsection (3); or
99 (ii) making an application by telephone or other electronic means within the time
100 period described in Subsection (3) if the county legislative body passes a resolution under
101 Subsection [
102 electronic means.
103 (b) (i) The county board of equalization shall make a rule describing the contents of the
104 application.
105 (ii) In addition to any information the county board of equalization requires, the
106 application shall include information about:
107 (A) the burden of proof in an appeal involving qualified real property; and
108 (B) the process for the taxpayer to learn the inflation adjusted value of the qualified
109 real property.
110 (c) (i) (A) The county assessor shall notify the county board of equalization of a
111 qualified real property's inflation adjusted value within 15 business days after the date on which
112 the county assessor receives notice that a taxpayer filed an appeal with the county board of
113 equalization.
114 (B) The county assessor shall notify the commission of a qualified real property's
115 inflation adjusted value within 15 business days after the date on which the county assessor
116 receives notice that a person dissatisfied with the decision of a county board of equalization
117 files an appeal with the commission.
118 (ii) (A) A person may not appeal a county assessor's calculation of inflation adjusted
119 value but may appeal the fair market value of a qualified real property.
120 (B) A person may appeal a determination of whether, on or after January 1 of the
121 previous taxable year and before January 1 of the current taxable year, real property had a
122 qualifying change.
123 (3) (a) Except as provided in Subsection (3)(b) and for purposes of Subsection (2), a
124 taxpayer shall make an application to appeal the valuation or the equalization of the taxpayer's
125 real property on or before the later of:
126 (i) September 15 of the current calendar year; or
127 (ii) the last day of a 45-day period beginning on the day on which the county auditor
128 provides the notice under Section 59-2-919.1.
129 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
130 commission shall make rules providing for circumstances under which the county board of
131 equalization is required to accept an application to appeal that is filed after the time period
132 prescribed in Subsection (3)(a).
133 (4) (a) Except as provided in Subsection (4)(b), the taxpayer shall include in the
134 application under Subsection (2)(a):
135 (i) the taxpayer's estimate of the fair market value of the property and any evidence that
136 may indicate that the assessed valuation of the taxpayer's property is improperly equalized with
137 the assessed valuation of comparable properties; and
138 (ii) a signed statement of the personal property located in a multi-tenant residential
139 property, as that term is defined in Section 59-2-301.8 if the taxpayer:
140 (A) appeals the value of multi-tenant residential property assessed in accordance with
141 Section 59-2-301.8; and
142 (B) intends to contest the value of the personal property located within the multi-tenant
143 residential property.
144 (b) (i) For an appeal involving qualified real property:
145 (A) the county board of equalization shall presume that the fair market value of the
146 qualified real property is equal to the inflation adjusted value; and
147 (B) except as provided in Subsection (4)(b)(ii), the taxpayer may provide the
148 information described in Subsection (4)(a).
149 (ii) If the taxpayer seeks to prove that the fair market value of the qualified real
150 property is below the inflation adjusted value, the taxpayer shall provide the information
151 described in Subsection (4)(a).
152 (5) [
153 of equalization by or on behalf of an owner or a county assessor, the county board of
154 equalization shall consider and weigh:
155 (a) the accuracy, reliability, and comparability of the evidence presented by the owner
156 or the county assessor;
157 (b) if submitted, the sales price of relevant property that was under contract for sale as
158 of the lien date but sold after the lien date;
159 (c) if submitted, the sales offering price of property that was offered for sale as of the
160 lien date but did not sell, including considering and weighing the amount of time for which,
161 and manner in which, the property was offered for sale; and
162 (d) if submitted, other evidence that is relevant to determining the fair market value of
163 the property.
164 (6) (a) This Subsection (6) applies only to an appeal to a county board of equalization
165 involving the valuation or equalization of residential property that is not qualified real property.
166 (b) There is no presumption of correctness for evidence submitted in an appeal
167 described in Subsection (6)(a), including the original assessed value of the residential property.
168 (c) If a qualifying contract is submitted as evidence in an appeal described in
169 Subsection (6)(a), the only evidence that the county board of equalization or hearing officer
170 may consider to determine that the final sales price identified in the qualifying contract does
171 not provide an accurate or reliable indication of the fair market value of the residential property
172 is evidence of the following, if submitted:
173 (i) evidence disputing the nature of the qualifying contract as an arms-length
174 transaction;
175 (ii) evidence demonstrating that changes in market conditions have occurred in the
176 time period between the day on which the qualifying contract was executed and the applicable
177 lien date; or
178 (iii) evidence demonstrating that a qualifying change to the residential property has
179 occurred in the time period between the day on which the qualifying contract was executed and
180 the applicable lien date.
181 (d) In determining the fair market value of residential property in an appeal described
182 in Subsection (6)(a), the county board of equalization may not consider any evidence or
183 information other than the evidence submitted to the county board of equalization by the
184 parties in the appeal.
185 [
186 the day on which the county board of equalization holds a public hearing on an appeal:
187 (i) the county assessor shall provide the taxpayer any evidence the county assessor
188 relies upon in support of the county assessor's valuation; and
189 (ii) the taxpayer shall provide the county assessor any evidence not previously provided
190 to the county assessor that the taxpayer relies upon in support of the taxpayer's appeal.
191 (b) (i) The deadline described in Subsection [
192 that is commercial information as defined in Section 59-1-404, if:
193 (A) for the purpose of complying with Section 59-1-404, the county assessor requires
194 that the taxpayer execute a nondisclosure agreement before the county assessor discloses the
195 evidence; and
196 (B) the taxpayer fails to execute the nondisclosure agreement before the deadline
197 described in Subsection [
198 (ii) The county assessor shall disclose evidence described in Subsection [
199 (7)(b)(i) as soon as practicable after the county assessor receives the executed nondisclosure
200 agreement.
201 (iii) The county assessor shall provide the taxpayer a copy of the nondisclosure
202 agreement with reasonable time for the taxpayer to review and execute the agreement before
203 the deadline described in Subsection [
204 (c) If at the public hearing, a party presents evidence not previously provided to the
205 other party, the county board of equalization shall allow the other party to respond to the
206 evidence in writing within 10 days after the day on which the public hearing occurs.
207 (d) (i) A county board of equalization may adopt rules governing the deadlines
208 described in this Subsection [
209 this Subsection [
210 (ii) A county board of equalization's rule that complies with Subsection [
211 (7)(d)(i) controls over the provisions of this subsection.
212 [
213 described in Section 59-2-1001.
214 (b) (i) For purposes of this Subsection [
215 proposed adjustment to the valuation of real property that:
216 (A) is to be made by a county board of equalization; and
217 (B) would result in a valuation that differs from the original assessed value by at least
218 20% and $1,000,000.
219 (ii) When a county board of equalization is going to consider a significant adjustment,
220 the county board of equalization shall:
221 (A) list the significant adjustment as a separate item on the agenda of the public
222 hearing at which the county board of equalization is going to consider the significant
223 adjustment; and
224 (B) for purposes of the agenda described in Subsection [
225 provide a description of the property for which the county board of equalization is considering
226 a significant adjustment.
227 (c) The county board of equalization shall make a decision on each appeal filed in
228 accordance with this section within 60 days after the day on which the taxpayer makes an
229 application.
230 (d) The commission may approve the extension of a time period provided for in
231 Subsection [
232 (e) Unless the commission approves the extension of a time period under Subsection
233 [
234 the time period described in Subsection [
235 (i) list the appeal, by property owner and parcel number, on the agenda for the next
236 meeting the county legislative body holds after the expiration of the time period described in
237 Subsection [
238 (ii) hear the appeal at the meeting described in Subsection [
239 (f) The decision of the county board of equalization shall contain:
240 (i) a determination of the valuation of the property based on fair market value; and
241 (ii) a conclusion that the fair market value is properly equalized with the assessed value
242 of comparable properties.
243 (g) If no evidence is presented before the county board of equalization, the county
244 board of equalization shall presume that the equalization issue has been met.
245 (h) (i) If the fair market value of the property that is the subject of the appeal deviates
246 plus or minus 5% from the assessed value of comparable properties, the county board of
247 equalization shall adjust the valuation of the appealed property to reflect a value equalized with
248 the assessed value of comparable properties.
249 (ii) Subject to Sections 59-2-301.1, 59-2-301.2, 59-2-301.3, and 59-2-301.4, equalized
250 value established under Subsection [
251 tax purposes until the county assessor is able to evaluate and equalize the assessed value of all
252 comparable properties to bring all comparable properties into conformity with full fair market
253 value.
254 [
255 equalization, the taxpayer may file an appeal with the commission as described in Section
256 59-2-1006.
257 [
258 taxes on property assessed by that county to file property tax appeals applications under this
259 section by telephone or other electronic means.
260 Section 2. Effective date.
261 This bill takes effect on May 1, 2024.
262 Section 3. Retrospective operation.
263 This bill has retrospective operation for a taxable year beginning on or after January 1,
264 2024.
265 Section 4. Coordinating H.B. 423 with S.B. 30.
266 (1) If H.B. 423, Residential Valuation Appeal Procedures Amendments, and S.B. 30,
267 Property Transaction Amendments, both pass and become law, the Legislature intends that, on
268 May 1, 2024, Subsection 59-2-1004(6)(b), enacted in H.B. 423, be deleted.
269 (2) Subsection (1) has retrospective operation for a taxable year beginning on or after
270 January 1, 2024.
271 Section 5. Coordinating H.B. 423 with S.B. 182.
272 (1) If H.B. 423, Residential Valuation Appeal Procedures Amendments, and S.B. 182,
273 Property Tax Assessment Amendments, both pass and become law, the Legislature intends
274 that, on May 1, 2024, Subsection 59-2-1004(6)(b), enacted in H.B. 423, be deleted.
275 (2) Subsection (1) has retrospective operation for a taxable year beginning on or after
276 January 1, 2024.