Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 32 (2016GS)

Sponsor

Rep. Webb, R. C.

Final action

Governor Signed 3/29/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• addresses the payment of property tax on a base parcel that is subdivided into one or more parcels;
• modifies the requirements for a notice of property tax delinquency;
• describes the procedure by which an owner of a portion of a base parcel whose property tax is delinquent may redeem the owner's portion of the base parcel; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

SUBDIVISION BASE PARCEL TAX AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: R. Curt Webb
Senate Sponsor: 
Daniel W. Thatcher
LONG TITLE
General Description:
This bill modifies provisions of the Property Tax Act relating to subdivided lots.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ addresses the payment of property tax on a base parcel that is subdivided into one or
more parcels;
▸ modifies the requirements for a notice of property tax delinquency;
▸ describes the procedure by which an owner of a portion of a base parcel whose
property tax is delinquent may redeem the owner's portion of the base parcel; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
59-2-102
, as last amended by Laws of Utah 2015, Chapters 133, 198, and 287
59-2-1332.5
, as last amended by Laws of Utah 2015, Chapter 201
59-2-1346
, as last amended by Laws of Utah 1995, Chapter 181
59-7-302
, as last amended by Laws of Utah 2014, Chapters 65 and 398
ENACTS:
59-2-1331.5
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-2-102
 is amended to read:
59-2-102.
Definitions.
As used in this chapter and title:
(1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
engaging in dispensing activities directly affecting agriculture or horticulture with an
airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
rotorcraft's use for agricultural and pest control purposes.
(2) "Air charter service" means an air carrier operation which requires the customer to
hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
trip.
(3) "Air contract service" means an air carrier operation available only to customers
who engage the services of the carrier through a contractual agreement and excess capacity on
any trip and is not available to the public at large.
(4) "Aircraft" is as defined in Section 
72-10-102
.
(5) (a) Except as provided in Subsection (5)(b), "airline" means an air carrier that:
(i) operates:
(A) on an interstate route; and
(B) on a scheduled basis; and
(ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
regularly scheduled route.
(b) "Airline" does not include an:
(i) air charter service; or
(ii) air contract service.
(6) "Assessment roll" means a permanent record of the assessment of property as
assessed by the county assessor and the commission and may be maintained manually or as a
computerized file as a consolidated record or as multiple records by type, classification, or
categories.
(7) "Base parcel" means a parcel of property that was legally:
(a) subdivided into two or more lots, parcels, or other divisions of land; or
(b) (i) combined with one or more other parcels of property; and
(ii) subdivided into two or more lots, parcels, or other divisions of land.
[
(7)
] 
(8)
 (a) "Certified revenue levy" means a property tax levy that provides an amount
of ad valorem property tax revenue equal to the sum of:
(i) the amount of ad valorem property tax revenue to be generated statewide in the
previous year from imposing a school minimum basic tax rate, as specified in Section
53A-17a-135
, or multicounty assessing and collecting levy, as specified in Section 
59-2-1602
;
and
(ii) the product of:
(A) new growth, as defined in:
(I) Section 
59-2-924
; and
(II) rules of the commission; and
(B) the school minimum basic tax rate or multicounty assessing and collecting levy
certified by the commission for the previous year.
(b) For purposes of this Subsection [
(7)
] 
(8)
, "ad valorem property tax revenue" does
not include property tax revenue received by a taxing entity from personal property that is:
(i) assessed by a county assessor in accordance with Part 3, County Assessment; and
(ii) semiconductor manufacturing equipment.
(c) For purposes of calculating the certified revenue levy described in this Subsection
[
(7)
] 
(8)
, the commission shall use:
(i) the taxable value of real property assessed by a county assessor contained on the
assessment roll;
(ii) the taxable value of real and personal property assessed by the commission; and
(iii) the taxable year end value of personal property assessed by a county assessor
contained on the prior year's assessment roll.
[
(8)
] 
(9)
 "County-assessed commercial vehicle" means:
(a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
Section 
41-1a-301
 and is not operated interstate to transport the vehicle owner's goods or
property in furtherance of the owner's commercial enterprise;
(b) any passenger vehicle owned by a business and used by its employees for
transportation as a company car or vanpool vehicle; and
(c) vehicles that are:
(i) especially constructed for towing or wrecking, and that are not otherwise used to
transport goods, merchandise, or people for compensation;
(ii) used or licensed as taxicabs or limousines;
(iii) used as rental passenger cars, travel trailers, or motor homes;
(iv) used or licensed in this state for use as ambulances or hearses;
(v) especially designed and used for garbage and rubbish collection; or
(vi) used exclusively to transport students or their instructors to or from any private,
public, or religious school or school activities.
[
(9)
] 
(10)
 (a) Except as provided in Subsection [
(9)
] 
(10)
(b), for purposes of Section
59-2-801
, "designated tax area" means a tax area created by the overlapping boundaries of only
the following taxing entities:
(i) a county; and
(ii) a school district.
(b) Notwithstanding Subsection [
(9)
] 
(10)
(a), "designated tax area" includes a tax area
created by the overlapping boundaries of:
(i) the taxing entities described in Subsection [
(9)
] 
(10)
(a); and
(ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
and the boundaries of the city or town are identical; or
(B) a special service district if the boundaries of the school district under Subsection
[
(9)
] 
(10)
(a) are located entirely within the special service district.
[
(10)
] 
(11)
 "Eligible judgment" means a final and unappealable judgment or order
under Section 
59-2-1330
:
(a) that became a final and unappealable judgment or order no more than 14 months
prior to the day on which the notice required by Section 
59-2-919.1
 is required to be mailed;
and
(b) for which a taxing entity's share of the final and unappealable judgment or order is
greater than or equal to the lesser of:
(i) $5,000; or
(ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
previous fiscal year.
[
(11)
] 
(12)
 (a) "Escaped property" means any property, whether personal, land, or any
improvements to the property, subject to taxation and is:
(i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
to the wrong taxpayer by the assessing authority;
(ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
comply with the reporting requirements of this chapter; or
(iii) undervalued because of errors made by the assessing authority based upon
incomplete or erroneous information furnished by the taxpayer.
(b) Property that is undervalued because of the use of a different valuation
methodology or because of a different application of the same valuation methodology is not
"escaped property."
[
(12)
] 
(13)
 "Fair market value" means the amount at which property would change
hands between a willing buyer and a willing seller, neither being under any compulsion to buy
or sell and both having reasonable knowledge of the relevant facts. For purposes of taxation,
"fair market value" shall be determined using the current zoning laws applicable to the property
in question, except in cases where there is a reasonable probability of a change in the zoning
laws affecting that property in the tax year in question and the change would have an
appreciable influence upon the value.
[
(13)
] 
(14)
 "Farm machinery and equipment," for purposes of the exemption provided
under Section 
59-2-1101
, means tractors, milking equipment and storage and cooling facilities,
feed handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters,
tillage tools, scales, combines, spreaders, sprayers, haying equipment, including balers and
cubers, and any other machinery or equipment used primarily for agricultural purposes; but
does not include vehicles required to be registered with the Motor Vehicle Division or vehicles
or other equipment used for business purposes other than farming.
[
(14)
] 
(15)
 "Geothermal fluid" means water in any form at temperatures greater than
120 degrees centigrade naturally present in a geothermal system.
[
(15)
] 
(16)
 "Geothermal resource" means:
(a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
and
(b) the energy, in whatever form, including pressure, present in, resulting from, created
by, or which may be extracted from that natural heat, directly or through a material medium.
[
(16)
] 
(17)
 (a) "Goodwill" means:
(i) acquired goodwill that is reported as goodwill on the books and records:
(A) of a taxpayer; and
(B) that are maintained for financial reporting purposes; or
(ii) the ability of a business to:
(A) generate income:
(I) that exceeds a normal rate of return on assets; and
(II) resulting from a factor described in Subsection [
(16)
] 
(17)
(b); or
(B) obtain an economic or competitive advantage resulting from a factor described in
Subsection [
(16)
] 
(17)
(b).
(b) The following factors apply to Subsection [
(16)
] 
(17)
(a)(ii):
(i) superior management skills;
(ii) reputation;
(iii) customer relationships;
(iv) patronage; or
(v) a factor similar to Subsections [
(16)
] 
(17)
(b)(i) through (iv).
(c) "Goodwill" does not include:
(i) the intangible property described in Subsection [
(20)
] 
(21)
(a) or (b);
(ii) locational attributes of real property, including:
(A) zoning;
(B) location;
(C) view;
(D) a geographic feature;
(E) an easement;
(F) a covenant;
(G) proximity to raw materials;
(H) the condition of surrounding property; or
(I) proximity to markets;
(iii) value attributable to the identification of an improvement to real property,
including:
(A) reputation of the designer, builder, or architect of the improvement;
(B) a name given to, or associated with, the improvement; or
(C) the historic significance of an improvement; or
(iv) the enhancement or assemblage value specifically attributable to the interrelation
of the existing tangible property in place working together as a unit.
[
(17)
] 
(18)
 "Governing body" means:
(a) for a county, city, or town, the legislative body of the county, city, or town;
(b) for a local district under Title 17B, Limited Purpose Local Government Entities -
Local Districts, the local district's board of trustees;
(c) for a school district, the local board of education; or
(d) for a special service district under Title 17D, Chapter 1, Special Service District
Act:
(i) the legislative body of the county or municipality that created the special service
district, to the extent that the county or municipal legislative body has not delegated authority
to an administrative control board established under Section 
17D-1-301
; or
(ii) the administrative control board, to the extent that the county or municipal
legislative body has delegated authority to an administrative control board established under
Section 
17D-1-301
.
[
(18)
] 
(19)
 (a) For purposes of Section 
59-2-103
:
(i) "household" means the association of persons who live in the same dwelling,
sharing its furnishings, facilities, accommodations, and expenses; and
(ii) "household" includes married individuals, who are not legally separated, that have
established domiciles at separate locations within the state.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "domicile."
[
(19)
] 
(20)
 (a) Except as provided in Subsection [
(19)
] 
(20)
(c), "improvement" means a
building, structure, fixture, fence, or other item that is permanently attached to land, regardless
of whether the title has been acquired to the land, if:
(i) (A) attachment to land is essential to the operation or use of the item; and
(B) the manner of attachment to land suggests that the item will remain attached to the
land in the same place over the useful life of the item; or
(ii) removal of the item would:
(A) cause substantial damage to the item; or
(B) require substantial alteration or repair of a structure to which the item is attached.
(b) "Improvement" includes:
(i) an accessory to an item described in Subsection [
(19)
] 
(20)
(a) if the accessory is:
(A) essential to the operation of the item described in Subsection [
(19)
] 
(20)
(a); and
(B) installed solely to serve the operation of the item described in Subsection [
(19)
]
(20)
(a); and
(ii) an item described in Subsection [
(19)
] 
(20)
(a) that:
(A) is temporarily detached from the land for repairs; and
(B) remains located on the land.
(c) Notwithstanding Subsections [
(19)
] 
(20)
(a) and (b), "improvement" does not
include:
(i) an item considered to be personal property pursuant to rules made in accordance
with Section 
59-2-107
;
(ii) a moveable item that is attached to land:
(A) for stability only; or
(B) for an obvious temporary purpose;
(iii) (A) manufacturing equipment and machinery; or
(B) essential accessories to manufacturing equipment and machinery;
(iv) an item attached to the land in a manner that facilitates removal without substantial
damage to:
(A) the land; or
(B) the item; or
(v) a transportable factory-built housing unit as defined in Section 
59-2-1502
 if that
transportable factory-built housing unit is considered to be personal property under Section
59-2-1503
.
[
(20)
] 
(21)
 "Intangible property" means:
(a) property that is capable of private ownership separate from tangible property,
including:
(i) money;
(ii) credits;
(iii) bonds;
(iv) stocks;
(v) representative property;
(vi) franchises;
(vii) licenses;
(viii) trade names;
(ix) copyrights; and
(x) patents;
(b) a low-income housing tax credit;
(c) goodwill; or
(d) a renewable energy tax credit or incentive, including:
(i) a federal renewable energy production tax credit under Section 45, Internal Revenue
Code;
(ii) a federal energy credit for qualified renewable electricity production facilities under
Section 48, Internal Revenue Code;
(iii) a federal grant for a renewable energy property under American Recovery and
Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
(iv) a tax credit under Subsection 
59-7-614
(5).
[
(21)
] 
(22)
 "Livestock" means:
(a) a domestic animal;
(b) a fish;
(c) a fur-bearing animal;
(d) a honeybee; or
(e) poultry.
[
(22)
] 
(23)
 "Low-income housing tax credit" means:
(a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
or
(b) a low-income housing tax credit under:
(i) Section 
59-7-607
; or
(ii) Section 
59-10-1010
.
[
(23)
] 
(24)
 "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and
uranium.
[
(24)
] 
(25)
 "Mine" means a natural deposit of either metalliferous or nonmetalliferous
valuable mineral.
[
(25)
] 
(26)
 "Mining" means the process of producing, extracting, leaching, evaporating,
or otherwise removing a mineral from a mine.
[
(26)
] 
(27)
 (a) "Mobile flight equipment" means tangible personal property that is:
(i) owned or operated by an:
(A) air charter service;
(B) air contract service; or
(C) airline; and
(ii) (A) capable of flight;
(B) attached to an aircraft that is capable of flight; or
(C) contained in an aircraft that is capable of flight if the tangible personal property is
intended to be used:
(I) during multiple flights;
(II) during a takeoff, flight, or landing; and
(III) as a service provided by an air charter service, air contract service, or airline.
(b) (i) "Mobile flight equipment" does not include a spare part other than a spare
engine that is rotated:
(A) at regular intervals; and
(B) with an engine that is attached to the aircraft.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "regular intervals."
[
(27)
] 
(28)
 "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal,
salts, sand, rock, gravel, and all carboniferous materials.
[
(28)
] 
(29)
 "Part-year residential property" means property that is not residential
property on January 1 of a calendar year but becomes residential property after January 1 of the
calendar year.
[
(29)
] 
(30)
 "Personal property" includes:
(a) every class of property as defined in Subsection [
(30)
] 
(31)
 that is the subject of
ownership and not included within the meaning of the terms "real estate" and "improvements";
(b) gas and water mains and pipes laid in roads, streets, or alleys;
(c) bridges and ferries;
(d) livestock; and
(e) outdoor advertising structures as defined in Section 
72-7-502
.
[
(30)
] 
(31)
 (a) "Property" means property that is subject to assessment and taxation
according to its value.
(b) "Property" does not include intangible property as defined in this section.
[
(31)
] 
(32)
 "Public utility," for purposes of this chapter, means the operating property
of a railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
company, electrical corporation, telephone corporation, sewerage corporation, or heat
corporation where the company performs the service for, or delivers the commodity to, the
public generally or companies serving the public generally, or in the case of a gas corporation
or an electrical corporation, where the gas or electricity is sold or furnished to any member or
consumers within the state for domestic, commercial, or industrial use. Public utility also
means the operating property of any entity or person defined under Section 
54-2-1
 except water
corporations.
[
(32)
] 
(33)
 (a) Subject to Subsection [
(32)
] 
(33)
(b), "qualifying exempt primary
residential rental personal property" means household furnishings, furniture, and equipment
that:
(i) are used exclusively within a dwelling unit that is the primary residence of a tenant;
(ii) are owned by the owner of the dwelling unit that is the primary residence of a
tenant; and
(iii) after applying the residential exemption described in Section 
59-2-103
, are exempt
from taxation under this chapter in accordance with Subsection 
59-2-1115
(2).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "dwelling unit" for purposes of this Subsection [
(32)
]
(33)
 and Subsection [
(35)
] 
(36)
.
[
(33)
] 
(34)
 "Real estate" or "real property" includes:
(a) the possession of, claim to, ownership of, or right to the possession of land;
(b) all mines, minerals, and quarries in and under the land, all timber belonging to
individuals or corporations growing or being on the lands of this state or the United States, and
all rights and privileges appertaining to these; and
(c) improvements.
[
(34)
] 
(35)
 "Relationship with an owner of the property's land surface rights" means a
relationship described in Subsection 267(b), Internal Revenue Code:
(a) except that notwithstanding Subsection 267(b), Internal Revenue Code, the term
25% shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code; and
(b) using the ownership rules of Subsection 267(c), Internal Revenue Code, for
determining the ownership of stock.
[
(35)
] 
(36)
 (a) Subject to Subsection [
(35)
] 
(36)
(b), "residential property," for the
purposes of the reductions and adjustments under this chapter, means any property used for
residential purposes as a primary residence.
(b) Subject to Subsection [
(35)
] 
(36)
(c), "residential property":
(i) except as provided in Subsection [
(35)
] 
(36)
(b)(ii), includes household furnishings,
furniture, and equipment if the household furnishings, furniture, and equipment are:
(A) used exclusively within a dwelling unit that is the primary residence of a tenant;
and
(B) owned by the owner of the dwelling unit that is the primary residence of a tenant;
and
(ii) does not include property used for transient residential use.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "dwelling unit" for purposes of Subsection [
(32)
] 
(33)
and this Subsection [
(35)
] 
(36)
.
[
(36)
] 
(37)
 "Split estate mineral rights owner" means a person who:
(a) has a legal right to extract a mineral from property;
(b) does not hold more than a 25% interest in:
(i) the land surface rights of the property where the wellhead is located; or
(ii) an entity with an ownership interest in the land surface rights of the property where
the wellhead is located;
(c) is not an entity in which the owner of the land surface rights of the property where
the wellhead is located holds more than a 25% interest; and
(d) does not have a relationship with an owner of the land surface rights of the property
where the wellhead is located.
[
(37)
] 
(38)
 (a) "State-assessed commercial vehicle" means:
(i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
to transport passengers, freight, merchandise, or other property for hire; or
(ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
transports the vehicle owner's goods or property in furtherance of the owner's commercial
enterprise.
(b) "State-assessed commercial vehicle" does not include vehicles used for hire which
are specified in Subsection [
(8)
] 
(9)
(c) as county-assessed commercial vehicles.
(39) "Subdivided lot" means a lot, parcel, or other division of land, that is a division of
a base parcel.
[
(38)
] 
(40)
 "Taxable value" means fair market value less any applicable reduction
allowed for residential property under Section 
59-2-103
.
[
(39)
] 
(41)
 "Tax area" means a geographic area created by the overlapping boundaries
of one or more taxing entities.
[
(40)
] 
(42)
 "Taxing entity" means any county, city, town, school district, special taxing
district, local district under Title 17B, Limited Purpose Local Government Entities - Local
Districts, or other political subdivision of the state with the authority to levy a tax on property.
[
(41)
] 
(43)
 "Tax roll" means a permanent record of the taxes charged on property, as
extended on the assessment roll and may be maintained on the same record or records as the
assessment roll or may be maintained on a separate record properly indexed to the assessment
roll. It includes tax books, tax lists, and other similar materials.
Section 2. Section 
59-2-1331.5
 is enacted to read:
 59-2-1331.5.
Partial payment of property tax on a base parcel.
(1) (a) Subject to Subsection (1)(b), a person may make a payment toward a subdivided
lot's proportional share of the property tax on the base parcel before the date on which the
property tax is due.
(b) A person may make a payment under Subsection (1)(a) only if the record owner of
the subdivided lot is a bona fide purchaser.
(2) (a) Upon request, the county treasurer shall provide a person:
(i) the amount of a subdivided lot's proportional share of the property tax on the base
parcel for the current year; or
(ii) if the amount described in Subsection (2)(a)(i) is unavailable, a reasonable estimate
of a subdivided lot's proportional share of the property tax on the base parcel for the current
year.
(b) The county treasurer shall calculate a subdivided lot's proportional share of the
property tax on the base parcel by comparing:
(i) the amount of the value of the base parcel as described in Subsection (2)(b)(ii) that
is attributable to the property that comprises the subdivided lot as the property existed on
January 1 of the current year; and
(ii) the value of the base parcel as it existed on January 1 of the current year.
(3) (a) The county treasurer shall send a written notice described in Subsection (3)(b)
to the record owner of a subdivided lot if:
(i) a person makes a payment under Subsection (1) toward the subdivided lot's
proportional share of the property tax on the base parcel; and
(ii) as of November 30, there is an outstanding balance on the subdivided lot's
proportional share of the property tax on the base parcel.
(b) A written notice described in Subsection (3)(a) shall state:
(i) the remaining balance owed on the subdivided lot's proportional share of the
property tax on the base parcel;
(ii) a date, not less than 30 days after the day on which the notice is sent, by which the
remaining balance is due; and
(iii) that any amount of the balance that is not paid or postmarked by the date described
in Subsection (3)(b)(ii) is delinquent and subject to the penalties, interest, and administrative
costs described in this chapter.
(4) If a person timely pays a subdivided lot's proportional share of the property tax on
the base parcel, and the property tax on the base parcel subsequently becomes delinquent, the
subdivided lot is not subject to:
(a) a lien for the payment of the delinquent property tax on the base parcel; or
(b) any penalties, interest, or administrative costs associated with the delinquent
property tax on the base parcel.
Section 3. 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 
that includes the information described in Subsection
(3)(a)
, postage prepaid
, to
:
(A) [
to
] each delinquent taxpayer; and
(B) [
that includes the information required by Subsection (3)(a)
] 
if the delinquent
property taxes are assessed on a base parcel, the record owner of each subdivided lot
; 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
] 
described in
 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
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).
Section 4. Section 
59-2-1346
 is amended to read:
59-2-1346.
Redemption -- Time allowed.
(1) [
(a)
] Property may be redeemed on behalf of the record owner by any person at any
time [
prior to
] 
before
 the tax sale which shall be held in May or June as provided in Section
59-2-1351
 following the lapse of four years from the date the property tax became delinquent.
[
(b)
] 
(2)
 A person may redeem property by paying to the county [
treasury
] 
treasurer
 all
delinquent taxes, interest, penalties, and administrative costs that have accrued on the property.
(3) (a) Subject to Subsection (3)(d), a person may redeem a subdivided lot by paying
the county treasurer the subdivided lot's proportional share of the delinquent taxes, interest,
penalties, and administrative costs accrued on the base parcel, calculated in accordance with
Subsection (3)(b).
(b) The county treasurer shall calculate the amount described in Subsection (3)(a) by
comparing:
(i) the amount of the value of the base parcel as described in Subsection (3)(b)(ii) that
is attributable to the property that comprises the subdivided lot as the property existed on
January 1 of the year in which the delinquent property taxes on the base parcel were assessed;
and
(ii) the value of the base parcel as it existed on January 1 of the year in which the
delinquent property taxes on the base parcel were assessed.
(c) If the county treasurer does not have sufficient information to calculate the amount
described in Subsection (3)(a)(i), upon request from the county treasurer, the county assessor
shall provide the county treasurer any information necessary to calculate the amount described
in Subsection (3)(a)(i).
(d) A person may redeem a subdivided lot under this Subsection (3) only if the record
owner of the subdivided lot is a bona fide purchaser.
[
(2)
] 
(4)
 At any time [
prior to
] 
before
 the expiration of the period of redemption the
county treasurer shall accept and credit on account for the redemption of property, payments in
amounts of not less than $10, except for the final payment, which may be in any amount. For
the purpose of computing the amount required for redemption and for the purpose of
distributing the payments received on account, all payments shall be applied in the following
order:
(a) against the interest and administrative costs accrued on the delinquent tax for the
last year included in the delinquent account at the time of payment;
(b) against the penalty charged on the delinquent tax for the last year included in the
delinquent account at the time of payment;
(c) against the delinquent tax for the last year included in the delinquent account at the
time of payment;
(d) against the interest and administrative costs accrued on the delinquent tax for the
next to last year included in the delinquent account at the time of payment;
(e) and so on until the full amount of the delinquent taxes, penalties, administrative
costs, and interest on the unpaid balances are paid within the period of redemption.
Section 5. Section 
59-7-302
 is amended to read:
59-7-302.
Definitions -- Determination of when a taxpayer is considered to be a
sales factor weighted taxpayer.
(1) As used in this part, unless the context otherwise requires:
(a) "Aircraft type" means a particular model of aircraft as designated by the
manufacturer of the aircraft.
(b) "Airline" [
is as
] 
means the same as that term is
 defined in Section 
59-2-102
.
(c) "Airline revenue ton miles" means, for an airline, the total revenue ton miles during
the airline's tax period.
(d) "Business income" means income arising from transactions and activity in the
regular course of the taxpayer's trade or business and includes income from tangible and
intangible property if the acquisition, management, and disposition of the property constitutes
integral parts of the taxpayer's regular trade or business operations.
(e) "Commercial domicile" means the principal place from which the trade or business
of the taxpayer is directed or managed.
(f) "Compensation" means wages, salaries, commissions, and any other form of
remuneration paid to employees for personal services.
(g) (i) Except as provided in Subsection (1)(g)(ii), "mobile flight equipment" is as
defined in Section 
59-2-102
.
(ii) "Mobile flight equipment" does not include:
(A) a spare engine; or
(B) tangible personal property described in Subsection 
59-2-102
[
(26)
] 
(27)
 owned by
an:
(I) air charter service; or
(II) air contract service.
(h) "Nonbusiness income" means all income other than business income.
(i) "Revenue ton miles" is determined in accordance with 14 C.F.R. Part 241.
(j) "Sales" means all gross receipts of the taxpayer not allocated under Sections
59-7-306
 through 
59-7-310
.
(k) Subject to Subsection (2), "sales factor weighted taxpayer" means:
(i) for a taxpayer that is not a unitary group, regardless of the number of economic
activities the taxpayer performs, a taxpayer having greater than 50% of the taxpayer's total sales
everywhere generated by economic activities performed by the taxpayer if the economic
activities are classified in a NAICS code of the 2002 or 2007 North American Industry
Classification System of the federal Executive Office of the President, Office of Management
and Budget, except for:
(A) a NAICS code within NAICS Sector 21, Mining;
(B) a NAICS code within NAICS Industry Group 2212, Natural Gas Distribution;
(C) a NAICS code within NAICS Sector 31-33, Manufacturing;
(D) a NAICS code within NAICS Sector 48-49, Transportation and Warehousing;
(E) a NAICS code within NAICS Sector 51, Information, except for NAICS Subsector
519, Other Information Services; or
(F) a NAICS code within NAICS Sector 52, Finance and Insurance; or
(ii) for a taxpayer that is a unitary group, a taxpayer having greater than 50% of the
taxpayer's total sales everywhere generated by economic activities performed by the taxpayer if
the economic activities are classified in a NAICS code of the 2002 or 2007 North American
Industry Classification System of the federal Executive Office of the President, Office of
Management and Budget, except for:
(A) a NAICS code within NAICS Sector 21, Mining;
(B) a NAICS code within NAICS Industry Group 2212, Natural Gas Distribution;
(C) a NAICS code within NAICS Sector 31-33, Manufacturing;
(D) a NAICS code within NAICS Sector 48-49, Transportation and Warehousing;
(E) a NAICS code within NAICS Sector 51, Information, except for NAICS Subsector
519, Other Information Services; or
(F) a NAICS code within NAICS Sector 52, Finance and Insurance.
(l) "State" means any state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, any territory or possession of the United States, and any
foreign country or political subdivision thereof.
(m) "Transportation revenue" means revenue an airline earns from:
(i) transporting a passenger or cargo; or
(ii) from miscellaneous sales of merchandise as part of providing transportation
services.
(n) "Utah revenue ton miles" means, for an airline, the total revenue ton miles within
the borders of this state:
(i) during the airline's tax period; and
(ii) from flight stages that originate or terminate in this state.
(2) The following apply to Subsection (1)(k):
(a) (i) Subject to the other provisions of this Subsection (2), a taxpayer shall for each
taxable year determine whether the taxpayer is a sales factor weighted taxpayer.
(ii) A taxpayer shall make the determination required by Subsection (2)(a)(i) before the
due date for filing the taxpayer's return under this chapter for the taxable year, including
extensions.
(iii) For purposes of making the determination required by Subsection (2)(a)(i), total
sales everywhere include only the total sales everywhere:
(A) as determined in accordance with this part; and
(B) made during the taxable year for which a taxpayer makes the determination
required by Subsection (2)(a)(i).
(b) A taxpayer that files a return as a unitary group for a taxable year is considered to
be a unitary group for that taxable year.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may define the term "economic activity" consistent with the use of the term
"activity" in the 2007 North American Industry Classification System of the federal Executive
Office of the President, Office of Management and Budget.