Senator Keith Grover proposes the following substitute bill:


1     
PROPERTY TAX ADMINISTRATION AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Keith Grover

5     
House Sponsor: Kay J. Christofferson

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the procedures for obtaining a residential property exemption on a
10     primary residence.
11     Highlighted Provisions:
12          This bill:
13          ▸     requires an owner of a residential property occupied by a tenant to submit a written
14     declaration that the property is the primary residence of the tenant;
15          ▸     provides the form of the written declaration and limits the information a county
16     assessor may obtain from the owner or the tenant;
17          ▸     recodifies a similar declaration requirement for residential property under
18     construction in the procedures for obtaining a residential property exemption code;
19     and
20          ▸     makes technical and conforming changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          59-2-103, as last amended by Laws of Utah 2020, Chapters 38, 40
28          59-2-103.5, as last amended by Laws of Utah 2022, Chapter 239
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 59-2-103 is amended to read:
32          59-2-103. Rate of assessment of property -- Residential property.
33          (1) As used in this section:
34          (a) (i) "Household" means the association of individuals who live in the same dwelling,
35     sharing the dwelling's furnishings, facilities, accommodations, and expenses.
36          (ii) "Household" includes married individuals, who are not legally separated, who have
37     established domiciles at separate locations within the state.
38          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
39     commission may make rules defining the term "domicile."
40          (2) All tangible taxable property located within the state shall be assessed and taxed at
41     a uniform and equal rate on the basis of its fair market value, as valued on January 1, unless
42     otherwise provided by law.
43          (3) Subject to Subsections (4) through [(7)] (6) and Section 59-2-103.5, for a calendar
44     year, the fair market value of residential property located within the state is allowed a
45     residential exemption equal to a 45% reduction in the value of the property.
46          (4) Part-year residential property located within the state is allowed the residential
47     exemption described in Subsection (3) if the part-year residential property is used as residential
48     property for 183 or more consecutive calendar days during the calendar year for which the
49     owner seeks to obtain the residential exemption.
50          (5) No more than one acre of land per residential unit may qualify for the residential
51     exemption described in Subsection (3).
52          (6) (a) Except as provided in Subsections (6)(b)(ii) and (iii), a residential exemption
53     described in Subsection (3) is limited to one primary residence per household.
54          (b) An owner of multiple primary residences located within the state is allowed a
55     residential exemption under Subsection (3) for:
56          (i) subject to Subsection (6)(a), the primary residence of the owner;
57          (ii) each residential property that is the primary residence of a tenant; and
58          (iii) subject to Subsection [(7)] 59-2-103.5(4), each residential property described in
59     Subsection 59-2-102(34)(b)(ii).
60          [(7) Before residential property described in Subsection 59-2-102(34)(b)(ii) is allowed
61     a residential exemption described in Subsection (3), an owner of the residential property shall
62     file with the county assessor a written declaration that:]
63          [(a) states under penalty of perjury that, to the best of each owner's knowledge, upon
64     completion of construction or occupancy of the residential property, the residential property
65     will be used for residential purposes as a primary residence;]
66          [(b) is signed by each owner of the residential property; and]
67          [(c) is on a form prescribed by the commission.]
68          Section 2. Section 59-2-103.5 is amended to read:
69          59-2-103.5. Procedures to obtain an exemption for residential property --
70     Procedure if property owner or property no longer qualifies to receive a residential
71     exemption.
72          (1) Subject to [Subsection (8)] Subsections (4), (5), and (10), for residential property
73     other than part-year residential property, a county legislative body may adopt an ordinance that
74     requires an owner to file an application with the county board of equalization before the county
75     applies a residential exemption [under Section 59-2-103 may be applied] authorized under
76     Section 59-2-103 to the value of the residential property if:
77          (a) the residential property was ineligible for the residential exemption during the
78     calendar year immediately preceding the calendar year for which the owner is seeking to have
79     the residential exemption applied to the value of the residential property;
80          (b) an ownership interest in the residential property changes; or
81          (c) the county board of equalization determines that there is reason to believe that the
82     residential property no longer qualifies for the residential exemption.
83          (2) (a) The application described in Subsection (1):
84          (i) shall be on a form the commission [prescribes] provides by rule and makes
85     available to the counties;
86          (ii) shall be signed by the owner of the residential property; and
87          (iii) may not request the sales price of the residential property.
88          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
89     commission may make rules [prescribing] providing the contents of the form described in
90     Subsection (2)(a).
91          (c) For purposes of the application described in Subsection (1), a county may not
92     request information from an owner of a residential property beyond the information [provided]
93     in the form [prescribed] provided by the commission under this Subsection (2).
94          (3) (a) Regardless of whether a county legislative body adopts an ordinance described
95     in Subsection (1), before a county may apply a residential exemption [may be applied] to the
96     value of part-year residential property, an owner of the property shall:
97          (i) file the application described in Subsection (2)(a) with the county board of
98     equalization; and
99          (ii) include as part of the application described in Subsection (2)(a) a statement that
100     certifies:
101          (A) the date the part-year residential property became residential property;
102          (B) that the part-year residential property will be used as residential property for 183 or
103     more consecutive calendar days during the calendar year for which the owner seeks to obtain
104     the residential exemption; and
105          (C) that the owner, or a member of the owner's household, may not claim a residential
106     exemption for any property for the calendar year for which the owner seeks to obtain the
107     residential exemption, other than the part-year residential property, or as allowed under Section
108     59-2-103 with respect to the primary residence or household furnishings, furniture, and
109     equipment of the owner's tenant.
110          (b) If an owner files an application under this Subsection (3) on or after May 1 of the
111     calendar year for which the owner seeks to obtain the residential exemption, the county board
112     of equalization may require the owner to pay an application fee not to exceed $50.
113          (4) Before a county allows residential property described in Subsection
114     59-2-102(34)(b)(ii) a residential exemption authorized under Section 59-2-103, an owner of the
115     residential property shall file with the county assessor a written declaration that:
116          (a) states under penalty of perjury that, to the best of each owner's knowledge, upon
117     completion of construction or occupancy of the residential property, the residential property
118     will be used for residential purposes as a primary residence;
119          (b) is signed by each owner of the residential property; and
120          (c) is on a form approved by the commission.
121          (5) (a) Before a county allows residential property described in Subsection
122     59-2-103(6)(b) a residential exemption authorized under Section 59-2-103, an owner of the
123     residential property shall file with the county assessor a written declaration that:
124          (i) states under penalty of perjury that, to the best of each owner's knowledge, the
125     residential property will be used for residential purposes as a primary residence of a tenant;
126          (ii) is signed by each owner of the residential property; and
127          (iii) is on a form approved by the commission.
128          (b) (i) (A) In addition to the declaration, a county assessor may request from an owner
129     a current lease agreement signed by the tenant.
130          (B) If the lease agreement is insufficient for a county assessor to make a determination
131     about eligibility for a residential exemption, a county assessor may request a copy of the real
132     estate insurance policy for the property.
133          (C) If the real estate insurance policy is insufficient for a county assessor to make a
134     determination about eligibility for a residential exemption, a county assessor may request a
135     copy of a filing from the most recent federal tax return showing that the owner had profit or
136     loss from the residential property as a rental.
137          (ii) A county assessor may not request information from an owner's tenant.
138          [(4)] (6) Except as provided in Subsection [(5)] (7), if a property owner no longer
139     qualifies to receive a residential exemption authorized under Section 59-2-103 for the property
140     owner's primary residence, the property owner shall:
141          (a) file a written statement with the county board of equalization of the county in which
142     the property is located:
143          (i) on a form provided by the county board of equalization; and
144          (ii) notifying the county board of equalization that the property owner no longer
145     qualifies to receive a residential exemption authorized under Section 59-2-103 for the property
146     owner's primary residence; and
147          (b) declare on the property owner's individual income tax return under Chapter 10,
148     Individual Income Tax Act, for the taxable year for which the property owner no longer
149     qualifies to receive a residential exemption authorized under Section 59-2-103 for the property
150     owner's primary residence, that the property owner no longer qualifies to receive a residential
151     exemption authorized under Section 59-2-103 for the property owner's primary residence.
152          [(5)] (7) A property owner is not required to file a written statement or make the
153     declaration described in Subsection [(4)] (6) if the property owner:
154          (a) changes primary residences;
155          (b) qualified to receive a residential exemption authorized under Section 59-2-103 for
156     the residence that was the property owner's former primary residence; and
157          (c) qualifies to receive a residential exemption authorized under Section 59-2-103 for
158     the residence that is the property owner's current primary residence.
159          [(6)] (8) Subsections (2) through [(5)] (7) do not apply to qualifying exempt primary
160     residential rental personal property.
161          [(7)] (9) (a) Subject to Subsection [(8)] (10), for the first calendar year in which a
162     property owner qualifies to receive a residential exemption under Section 59-2-103, a county
163     assessor may require the property owner to file a signed statement described in Section
164     59-2-306.
165          (b) Subject to Subsection [(8)] (10) and notwithstanding Section 59-2-306, for a
166     calendar year after the calendar year described in Subsection [(7)(a)] (9)(a) in which a property
167     owner qualifies for an exemption [described in Subsection 59-2-1115(2)] authorized under
168     Section 59-2-1115 for qualifying exempt primary residential rental personal property, a signed
169     statement described in Section 59-2-306 with respect to the qualifying exempt primary
170     residential rental personal property may only require the property owner to certify, under
171     penalty of perjury, that the property owner qualifies for the exemption [under Subsection
172     59-2-1115(2)] authorized under Section 59-2-1115.
173          [(8)] (10) (a) After an ownership interest in residential property changes, the county
174     assessor shall:
175          (i) notify the owner of the residential property that the owner is required to submit a
176     written declaration described in Subsection [(8)(d)] (10)(d) within 90 days after the day on
177     which the county assessor mails the notice under this Subsection [(8)(a)] (10)(a); and
178          (ii) provide the owner of the residential property with the form described in Subsection
179     [(8)(e)] (10)(e) to make the written declaration described in Subsection [(8)(d)] (10)(d).
180          (b) A county assessor is not required to provide a notice to an owner of residential
181     property under Subsection [(8)(a)] (10)(a) if the situs address of the residential property is the
182     same as any one of the following:
183          (i) the mailing address of the residential property owner or the tenant of the residential
184     property;
185          (ii) the address listed on the:
186          (A) residential property owner's driver license; or
187          (B) tenant of the residential property's driver license; or
188          (iii) the address listed on the:
189          (A) residential property owner's voter registration; or
190          (B) tenant of the residential property's voter registration.
191          (c) A county assessor is not required to provide a notice to an owner of residential
192     property under Subsection [(8)(a)] (10)(a) if:
193          (i) the owner is using a post office box or rural route box located in the county where
194     the residential property is located; and
195          (ii) the residential property is located in a county of the fourth, fifth, or sixth class.
196          (d) An owner of residential property that receives a notice described in Subsection
197     [(8)(a)] (10)(a) shall submit a written declaration to the county assessor under penalty of
198     perjury certifying the information contained in the form [provided] described in Subsection
199     [(8)(e)] (10)(e).
200          (e) The written declaration required by Subsection [(8)(d)] (10)(d) shall be:
201          (i) signed by the owner of the residential property; and
202          (ii) in substantially the following form:
203          
"Residential Property Declaration

204          This form must be submitted to the County Assessor's office where your new residential
205     property is located within 90 days of receipt. Failure to do so will result in the county assessor
206     taking action that could result in the withdrawal of the primary residential exemption from your
207     residential property.
208          
Residential Property Owner Information

209          Name(s):__________________________________________________
210          Home Phone:_______________________________________________
211          Work Phone:_______________________________________________
212          Mailing Address:____________________________________________
213          
Residential Property Information

214          Physical Address:___________________________________________
215          Certification
216          1. Is this property used as a primary residential property or part-year residential
217     property for you or another person?
218          "Part-year residential property" means owned property that is not residential property on
219     January 1 of a calendar year but becomes residential property after January 1 of the calendar
220     year.
221          Yes           No
222          2. Will this primary residential property or part-year residential property be occupied
223     for 183 or more consecutive calendar days by the owner or another person?
224          A part-year residential property occupied for 183 or more consecutive calendar days in
225     a calendar year by the owner(s) or a tenant is eligible for the exemption.
226          Yes          No
227          If a property owner or a property owner's spouse claims a residential exemption under
228     Utah Code Ann. §59-2-103 for property in this state that is the primary residence of the
229     property owner or the property owner's spouse, that claim of a residential exemption creates a
230     rebuttable presumption that the property owner and the property owner's spouse have domicile
231     in Utah for income tax purposes. The rebuttable presumption of domicile does not apply if the
232     residential property is the primary residence of a tenant of the property owner or the property
233     owner's spouse.
234          Signature
235          Under penalties of perjury, I declare to the best of my knowledge and belief, this
236     declaration and accompanying pages are true, correct, and complete.
237          __________________(Owner signature) _____________________Date (mm/dd/yyyy)
238          __________________(Owner printed name)
239          (f) For purposes of a written declaration described in this Subsection [(8)] (10), a
240     county may not request information from a property owner beyond the information described in
241     the form provided in Subsection [(8)(e)] (10)(e).
242          (g) (i) If, after receiving a written declaration filed under Subsection [(8)(d)] (10)(d),
243     the county determines that the property has been incorrectly qualified or disqualified to receive
244     a residential exemption, the county shall:
245          (A) redetermine the property's qualification to receive a residential exemption; and
246          (B) notify the claimant of the redetermination and the county's reason for the
247     redetermination.
248          (ii) The redetermination provided in Subsection [(8)(g)(i)(A)] (10)(g)(i)(A) is final
249     unless:
250          (A) except as provided in Subsection [(8)(g)(iii)] (10)(g)(iii), the property owner
251     appeals the redetermination to the board of equalization in accordance with Subsection
252     59-2-1004(2); or
253          (B) the county determines that the property is eligible to receive a primary residential
254     exemption as part-year residential property.
255          (iii) The board of equalization may not accept an appeal that is filed after the later of:
256          (A) September 15 of the current calendar year; or
257          (B) the last day of the 45-day period beginning on the day on which the county auditor
258     provides the notice under Section 59-2-919.1.
259          (h) (i) If a residential property owner fails to file a written declaration required by
260     Subsection [(8)(d)] (10)(d), the county assessor shall mail to the owner of the residential
261     property a notice that:
262          (A) the property owner failed to file a written declaration as required by Subsection
263     [(8)(d)] (10)(d); and
264          (B) the property owner will no longer qualify to receive the residential exemption
265     authorized under Section 59-2-103 for the property that is the subject of the written declaration
266     if the property owner does not file the written declaration required by Subsection [(8)(d)]
267     (10)(d) within 30 days after the day on which the county assessor mails the notice under this
268     Subsection [(8)(h)(i)] (10)(h)(i).
269          (ii) If a property owner fails to file a written declaration required by Subsection [(8)(d)]
270     (10)(d) after receiving the notice described in Subsection [(8)(h)(i)] (10)(h)(i), the property
271     owner no longer qualifies to receive the residential exemption authorized under Section
272     59-2-103 in the calendar year for the property that is the subject of the written declaration
273     unless:
274          (A) except as provided in Subsection [(8)(h)(iii)] (10)(h)(iii), the property owner
275     appeals the redetermination to the board of equalization in accordance with Subsection
276     59-2-1004(2); or
277          (B) the county determines that the property is eligible to receive a primary residential
278     exemption as part-year residential property.
279          (iii) The board of equalization may not accept an appeal that is filed after the later of:
280          (A) September 15 of the current calendar year; or
281          (B) the last day of the 45-day period beginning on the day on which the county auditor
282     provides the notice under Section 59-2-919.1.
283          (iv) A property owner that is disqualified to receive the residential exemption under
284     Subsection [(8)(h)(ii)] (10)(h)(ii) may file an application described in Subsection (1) to
285     determine whether the owner is eligible to receive the residential exemption.
286          (i) The requirements of this Subsection [(8)] (10) do not apply to a county assessor in a
287     county that has, for the five calendar years prior to 2019, had in place and enforced an
288     ordinance described in Subsection (1).
289          Section 3. Effective date.
290          This bill takes effect on May 1, 2024.