Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 111 (2015GS)

Sponsor

Rep. Webb, R. C.

Final action

Governor Signed 3/26/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• addresses due dates for the payment of property taxes;
• addresses closure of the county treasurer's office for the posting of property tax payments;
• provides that a county treasurer or other public official, public entity, or public employee may not require a property tax to be paid before the due date; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

PAYMENT OF PROPERTY TAX AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: R. Curt Webb
Senate Sponsor: 
Kevin T. Van Tassell
LONG TITLE
General Description:
This bill addresses the payment of property taxes.
Highlighted Provisions:
This bill:
▸ addresses due dates for the payment of property taxes;
▸ addresses closure of the county treasurer's office for the posting of property tax
payments;
▸ provides that a county treasurer or other public official, public entity, or public
employee may not require a property tax to be paid before the due date; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
59-2-1330
, as last amended by Laws of Utah 2008, Chapters 61, 231, 236, and 301
59-2-1331
, as last amended by Laws of Utah 2014, Chapter 279
59-2-1332
, as last amended by Laws of Utah 2009, Chapter 388
59-2-1332.5
, as last amended by Laws of Utah 2011, Chapter 422
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-2-1330
 is amended to read:
59-2-1330.
Payment of property taxes -- Payments to taxpayer by state or taxing
entity -- Refund of penalties paid by taxpayer -- Refund of interest paid by taxpayer --
Payment of interest to taxpayer -- Judgment levy -- Objections to assessments by the
commission -- Time periods for making payments to taxpayer.
(1) Unless otherwise specifically provided by statute, property taxes shall be paid
directly to the county assessor or the county treasurer:
(a) on the date that the property taxes are due; and
(b) as provided in this chapter.
(2) A taxpayer shall receive payment as provided in this section if a reduction in the
amount of any tax levied against any property for which the taxpayer paid a tax or any portion
of a tax under this chapter for a calendar year is required by a final and unappealable judgment
or order described in Subsection (3) issued by:
(a) a county board of equalization;
(b) the commission; or
(c) a court of competent jurisdiction.
(3) (a) For purposes of Subsection (2), the state or any taxing entity that has received
property taxes or any portion of property taxes from a taxpayer described in Subsection (2)
shall pay the taxpayer if:
(i) the taxes the taxpayer paid in accordance with Subsection (2) are collected by an
authorized officer of the:
(A) county; or
(B) state; and
(ii) the taxpayer obtains a final and unappealable judgment or order:
(A) from:
(I) a county board of equalization;
(II) the commission; or
(III) a court of competent jurisdiction;
(B) against:
(I) the taxing entity or an authorized officer of the taxing entity; or
(II) the state or an authorized officer of the state; and
(C) ordering a reduction in the amount of any tax levied against any property for which
a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
(b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
in accordance with Subsections (4) through (7).
(4) For purposes of Subsections (2) and (3), the amount the state shall pay to a taxpayer
is equal to the sum of:
(a) if the difference described in this Subsection (4)(a) is greater than $0, the difference
between:
(i) the tax the taxpayer paid to the state in accordance with Subsection (2); and
(ii) the amount of the taxpayer's tax liability to the state after the reduction in the
amount of tax levied against the property in accordance with the final and unappealable
judgment or order described in Subsection (3);
(b) if the difference described in this Subsection (4)(b) is greater than $0, the difference
between:
(i) any penalties the taxpayer paid to the state in accordance with Section 
59-2-1331
;
and
(ii) the amount of penalties the taxpayer is liable to pay to the state in accordance with
Section 
59-2-1331
 after the reduction in the amount of tax levied against the property in
accordance with the final and unappealable judgment or order described in Subsection (3);
(c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
Section 
59-2-1331
 on the amounts described in Subsections (4)(a) and (4)(b); and
(d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
(i) Subsection (4)(a);
(ii) Subsection (4)(b); and
(iii) Subsection (4)(c).
(5) For purposes of Subsections (2) and (3), the amount a taxing entity shall pay to a
taxpayer is equal to the sum of:
(a) if the difference described in this Subsection (5)(a) is greater than $0, the difference
between:
(i) the tax the taxpayer paid to the taxing entity in accordance with Subsection (2); and
(ii) the amount of the taxpayer's tax liability to the taxing entity after the reduction in
the amount of tax levied against the property in accordance with the final and unappealable
judgment or order described in Subsection (3);
(b) if the difference described in this Subsection (5)(b) is greater than $0, the difference
between:
(i) any penalties the taxpayer paid to the taxing entity in accordance with Section
59-2-1331
; and
(ii) the amount of penalties the taxpayer is liable to pay to the taxing entity in
accordance with Section 
59-2-1331
 after the reduction in the amount of tax levied against the
property in accordance with the final and unappealable judgment or order described in
Subsection (3);
(c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
Section 
59-2-1331
 on the amounts described in Subsections (5)(a) and (5)(b); and
(d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
(i) Subsection (5)(a);
(ii) Subsection (5)(b); and
(iii) Subsection (5)(c).
(6) Except as provided in Subsection (7):
(a) interest shall be refunded to a taxpayer on the amount described in Subsection
(4)(c) or (5)(c) in an amount equal to the amount of interest the taxpayer paid in accordance
with Section 
59-2-1331
; and
(b) interest shall be paid to a taxpayer on the amount described in Subsection (4)(d) or
(5)(d):
(i) beginning on the later of:
(A) the day on which the taxpayer paid the tax in accordance with Subsection (2); or
(B) January 1 of the calendar year immediately following the calendar year for which
the tax was due;
(ii) ending on the day on which the state or a taxing entity pays to the taxpayer the
amount required by Subsection (4) or (5); and
(iii) at the interest rate earned by the state treasurer on public funds transferred to the
state treasurer in accordance with Section 
51-7-5
.
(7) Notwithstanding Subsection (6):
(a) the state may not pay or refund interest to a taxpayer under Subsection (6) on any
tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax levied
by the state for that calendar year as stated on the notice required by Section 
59-2-1317
; and
(b) a taxing entity may not pay or refund interest to a taxpayer under Subsection (6) on
any tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax
levied by the taxing entity for that calendar year as stated on the notice required by Section
59-2-1317
.
(8) (a) Each taxing entity may levy a tax to pay its share of the final and unappealable
judgment or order described in Subsection (3) if:
(i) the final and unappealable judgment or order is issued no later than 15 days prior to
the date the [
levy
] 
certified tax rate
 is set under [
Subsection
] 
Section
59-2-924
[
(3)(a)
];
(ii) the amount of the judgment levy is included on the notice under Section
59-2-919.1
; and
(iii) the final and unappealable judgment or order is an eligible judgment, as defined in
Section 
59-2-102
.
(b) The levy under Subsection (8)(a) is in addition to, and exempt from, the maximum
levy established for the taxing entity.
(9) (a) A taxpayer that objects to the assessment of property assessed by the
commission shall pay, on or before the 
property tax due
 date [
of delinquency
] established
under Subsection 
59-2-1331
(1) or Section 
59-2-1332
, the full amount of taxes stated on the
notice required by Section 
59-2-1317
 if:
(i) the taxpayer has applied to the commission for a hearing in accordance with Section
59-2-1007
 on the objection to the assessment; and
(ii) the commission has not issued a written decision on the objection to the assessment
in accordance with Section 
59-2-1007
.
(b) A taxpayer that pays the full amount of taxes due under Subsection (9)(a) is not
required to pay penalties or interest on an assessment described in Subsection (9)(a) unless:
(i) a final and unappealable judgment or order establishing that the property described
in Subsection (9)(a) has a value greater than the value stated on the notice required by Section
59-2-1317
 is issued by:
(A) the commission; or
(B) a court of competent jurisdiction; and
(ii) the taxpayer fails to pay the additional tax liability resulting from the final and
unappealable judgment or order described in Subsection (9)(b)(i) within a 45-day period after
the county bills the taxpayer for the additional tax liability.
(10) (a) Except as provided in Subsection (10)(b), a payment that is required by this
section shall be paid to a taxpayer:
(i) within 60 days after the day on which the final and unappealable judgment or order
is issued in accordance with Subsection (3); or
(ii) if a judgment levy is imposed in accordance with Subsection (8):
(A) if the payment to the taxpayer required by this section is $5,000 or more, no later
than December 31 of the year in which the judgment levy is imposed; and
(B) if the payment to the taxpayer required by this section is less than $5,000, within
60 days after the date the final and unappealable judgment or order is issued in accordance with
Subsection (3).
(b) Notwithstanding Subsection (10)(a), a taxpayer may enter into an agreement:
(i) that establishes a time period other than a time period described in Subsection
(10)(a) for making a payment to the taxpayer that is required by this section; and
(ii) with:
(A) an authorized officer of a taxing entity for a tax imposed by a taxing entity; or
(B) an authorized officer of the state for a tax imposed by the state.
Section 2. Section 
59-2-1331
 is amended to read:
59-2-1331.
Property tax due date -- Date tax is delinquent -- Penalty -- Interest --
Payments -- Refund of prepayment.
(1) (a) Except as provided in Subsection (1)(b) 
and subject to Subsections (1)(c) and
(d)
, all 
property
 taxes, unless otherwise specifically provided for under Section 
59-2-1332
, or
other law, [
unpaid or postmarked after
] 
are due on
 November 30 of each year following the
date of levy[
, are delinquent, and the county treasurer shall close the treasurer's office for the
posting of current year tax payments until a delinquent list has been prepared
].
(b) [
Notwithstanding Subsection (1)(a), if
] 
If
 November 30 falls on a Saturday,
Sunday, or holiday:
(i) the date of the next following day that is not a Saturday, Sunday, or holiday shall be
substituted in Subsection (1)(a) and Subsection 
59-2-1332
(1) for November 30; and
(ii) the date of the day occurring 30 days after the date under Subsection (1)(b)(i) shall
be substituted in Subsection 
59-2-1332
(1) for December 30.
(c) If a property tax is paid or postmarked after the due date described in this
Subsection (1) the property tax is delinquent.
(d) A county treasurer or other public official, public entity, or public employee may
not require the payment of a property tax before the due date described in this Subsection (1).
(2) (a) Except as provided in Subsection (2)(e), for each parcel, all delinquent taxes on
each separately assessed parcel are subject to a penalty of 2.5% of the amount of the delinquent
taxes or $10, whichever is greater.
(b) Unless the delinquent taxes, together with the penalty, are paid on or before January
31, the amount of taxes and penalty shall bear interest on a per annum basis from the January 1
immediately following the delinquency date.
(c) Except as provided in Subsection (2)(d), for purposes of Subsection (2)(b), the
interest rate is equal to the sum of:
(i) 6%; and
(ii) the federal funds rate target:
(A) established by the Federal Open Markets Committee; and
(B) that exists on the January 1 immediately following the date of delinquency.
(d) The interest rate described in Subsection (2)(c) may not be:
(i) less than 7%; or
(ii) more than 10%.
(e) The penalty described in Subsection (2)(a) is 1% of the amount of the delinquent
taxes or $10, whichever is greater, if all delinquent taxes and the penalty are paid on or before
the January 31 immediately following the delinquency date.
(3) If the delinquency exceeds one year, the amount of taxes and penalties for that year
and all succeeding years shall bear interest until settled in full through redemption or tax sale. 
The interest rate to be applied shall be calculated for each year as established under Subsection
(2) and shall apply on each individual year's delinquency until paid.
(4) The county treasurer may accept and credit on account against taxes becoming due
during the current year, at any time before or after the tax rates are adopted, but not subsequent
to the date of delinquency, either:
(a) payments in amounts of not less than $10; or
(b) the full amount of the unpaid tax.
(5) (a) At any time before the county treasurer provides the tax notice described in
Section 
59-2-1317
, the county treasurer may refund amounts accepted and credited on account
against taxes becoming due during the current year.
(b) Upon recommendation by the county treasurer, the county legislative body shall
adopt rules or ordinances to implement the provisions of this Subsection (5).
Section 3. Section 
59-2-1332
 is amended to read:
59-2-1332.
Extension of date of delinquency.
(1) (a) The county legislative body may, upon a petition of not less than 100 taxpayers
or upon its own motion for good cause, by proclamation, extend the 
property tax due
 date
[
when taxes become delinquent
] from November 30 to noon on December 30.
(b) If the county legislative body [
so
] extends [
this
] 
the property tax due
 date 
under
Subsection (1)(a)
, the county legislative body shall publish a notice of the proclamation
covering this extension:
(i) in a newspaper of general circulation in the county in at least two issues before
November 1 of the year in which the taxes are to be paid; and
(ii) in accordance with Section 
45-1-101
 for two weeks before November 1.
(2) In all cases where the county legislative body extends the 
property tax due
 date
[
when taxes become delinquent
] 
under Subsection (1)
, the date for the selling of property to the
county for delinquent taxes shall be extended 30 days from the dates provided by law.
Section 4. Section 
59-2-1332.5
 is amended to read:
59-2-1332.5.
Mailing notice of delinquency or publication of delinquent list --
Contents -- Notice -- Definitions.
(1) The county treasurer shall provide notice of delinquency in the payment of property
taxes:
(a) except as provided in Subsection (4), on or before December 31 of each calendar
year; and
(b) in a manner described in Subsection (2).
(2) A notice of delinquency in the payment of property taxes shall be provided by:
(a) (i) mailing a written notice, postage prepaid:
(A) to each delinquent taxpayer; and
(B) that includes the information required by Subsection (3)(a); and
(ii) making available to the public a list of delinquencies in the payment of property
taxes:
(A) by electronic means; and
(B) that includes the information required by Subsection (3)(b); or
(b) publishing a list of delinquencies in the payment of property taxes:
(i) in one issue of a newspaper having general circulation in the county;
(ii) that lists each delinquency in alphabetical order by:
(A) the last name of the delinquent taxpayer; or
(B) if the delinquent taxpayer is a business entity, the name of the business entity; and
(iii) that includes the information required by Subsection (3)(b).
(3) (a) A written notice of delinquency in the payment of property taxes described in
Subsection (2)(a)(i) shall include:
(i) a statement that delinquent taxes are due;
(ii) the amount of delinquent taxes due, not including any penalties imposed in
accordance with this chapter;
(iii) (A) the name of the delinquent taxpayer; or
(B) if the delinquent taxpayer is a business entity, the name of the business entity;
(iv) (A) a description of the delinquent property; or
(B) the property identification number of the delinquent property;
(v) a statement that a penalty shall be imposed in accordance with this chapter; and
(vi) a statement that interest accrues as of January 1 following the date of the
delinquency unless on or before January 31 the following are paid:
(A) the delinquent taxes; and
(B) the penalty.
(b) The list of delinquencies described in Subsection (2)(a)(ii) or (2)(b) shall include:
(i) the amount of delinquent taxes due, not including any penalties imposed in
accordance with this chapter;
(ii) (A) the name of the delinquent taxpayer; or
(B) if the delinquent taxpayer is a business entity, the name of the business entity;
(iii) (A) a description of the delinquent property; or
(B) the property identification number of the delinquent property;
(iv) a statement that a penalty shall be imposed in accordance with this chapter; and
(v) a statement that interest accrues as of January 1 following the date of the
delinquency unless on or before January 31 the following are paid:
(A) the delinquent taxes; and
(B) the penalty.
(4) Notwithstanding Subsection (1)(a), if the county legislative body extends the [
date
when taxes become delinquent
] 
property tax due date
 under Subsection 
59-2-1332
(1), the
notice of delinquency in the payment of property taxes shall be provided on or before January
10.
(5) (a) In addition to the notice of delinquency in the payment of property taxes
required by Subsection (1), a county treasurer may in accordance with this Subsection (5) mail
a notice that property taxes are delinquent:
(i) to:
(A) a delinquent taxpayer;
(B) an owner of record of the delinquent property;
(C) any other interested party that requests notice; or
(D) a combination of Subsections (5)(a)(i)(A) through (C); and
(ii) at any time that the county treasurer considers appropriate.
(b) A notice mailed in accordance with this Subsection (5):
(i) shall include the information required by Subsection (3)(a); and
(ii) may include any information that the county treasurer finds is useful to the owner
of record of the delinquent property in determining:
(A) the status of taxes owed on the delinquent property;
(B) any penalty that is owed on the delinquent property;
(C) any interest charged under Section 
59-2-1331
 on the delinquent property; or
(D) any related matters concerning the delinquent property.
(6) As used in this section, "business entity" means:
(a) an association;
(b) a corporation;
(c) a limited liability company;
(d) a partnership;
(e) a trust; or
(f) a business entity similar to Subsections (6)(a) through (e).