Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 307 First Substitute (2018GS)

Sponsor

Rep. Hawkes, T.

Final action

House/ filed 3/8/2018

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• defines terms;
• modifies the burden of proof for appeals involving certain real property for which there was a reduction in value as a result of a taxpayer appeal during the previous taxable year;
• creates an automatic county review process for a real property valuation or equalization that exceeds a certain threshold; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

PROPERTY TAX CHANGES
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Timothy D. Hawkes
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill modifies the property tax valuation and appeals processes for county assessed
real property.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ modifies the burden of proof for appeals involving certain real property for which
there was a reduction in value as a result of a taxpayer appeal during the previous
taxable year;
▸ creates an automatic county review process for a real property valuation or
equalization that exceeds a certain threshold; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-2-109
, as enacted by Laws of Utah 2016, Chapter 392
59-2-303
, as last amended by Laws of Utah 1993, Chapter 245
59-2-311
, as last amended by Laws of Utah 2005, Chapter 182
59-2-1004
, as last amended by Laws of Utah 2016, Chapter 98
59-2-1004.5
, as last amended by Laws of Utah 2008, Chapter 382
ENACTS:
59-2-303.2
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-2-109
 is amended to read:
59-2-109.
Burden of proof.
(1) As used in this section[
, "assessing
]
:
(a) "Assessing
 authority" means:
[
(a)
] 
(i)
 the commission for property assessed under Part 2, Assessment of Property;
and
[
(b)
] 
(ii)
 a county assessor for property assessed under Part 3, County Assessment.
(b) "Final assessed value" means:
(i) for real property for which the property owner appealed the valuation or
equalization in accordance with Section 
59-2-1004
, the assessed value given to the real
property by a county board of equalization after the appeal; or
(ii) for real property for which the property owner or a county assessor appealed the
valuation or equalization in accordance with Section 
59-2-1006
 or sought judicial review of the
valuation or equalization in accordance with Section 
59-1-602
 or Title 63G, Chapter 4, Part 4,
Judicial Review, the assessed value given to the real property by the commission.
(c) "Inflation adjusted value" means the final assessed value for the previous taxable
year of the real property that is the subject of the appeal increased by the median property value
increase.
(d) "Median property value increase" means the midpoint of the property value
changes, if the midpoint is greater than zero, for all real property that is:
(i) of the same median class of real property as the qualified property; and
(ii) located within the same county as the qualified property.
(e) "Property value change" means the percentage change in the fair market value of
real property between January 1 of the previous year and January 1 of the current year.
(f) "Qualified real property" means real property:
(i) for which:
(A) the taxpayer or a county assessor appealed the valuation or equalization in
accordance with Section 
59-2-1004
 or 
59-2-1006
 during the previous year; and
(B) as a result of the appeal described in Subsection (1)(f)(i)(A), a county board of
equalization or the commission reduced the assessed value for the previous taxable year;
(ii) that the taxpayer has not improved between January 1 of the previous taxable year
and January 1 of the current taxable year; and
(iii) for which the assessed value for the current taxable year is higher than the inflation
adjusted value.
(2) Notwithstanding Section 
59-1-604
, in an action appealing 
or seeking judicial
review of
 the value of property assessed by an assessing authority, the assessing authority has
the burden of proof before a 
county
 board of equalization, the commission, or a court of
competent jurisdiction[
,
] if the assessing authority presents evidence or otherwise asserts that
the fair market value of the assessed property is greater than the value originally assessed by
the assessing authority for that calendar year. 
(3) (a) (i) Notwithstanding Section 
59-1-604
, in an action appealing or seeking judicial
review of the value of qualified real property assessed by a county assessor, the county assessor
has the burden of proof before a county board of equalization, the commission, or a court of
competent jurisdiction if the taxpayer does not seek to reduce the assessed value of the
qualified real property for the current taxable year below the inflation adjusted value.
(ii) The burden remains on the county assessor even if the previous year's valuation is:
(A) pending judicial review requested in accordance with Section 
59-1-602
 or Title
63G, Chapter 4, Part 4, Judicial Review; or
(B) overturned by a district court as a result of judicial review requested in accordance
with Section 
59-1-602
 or Title 63G, Chapter 4, Part 4, Judicial Review.
(b) In an action appealing or seeking judicial review of the value of qualified real
property assessed by a county assessor, the taxpayer has the burden of proof before a county
board of equalization, the commission, or a court of competent jurisdiction if the taxpayer
seeks to reduce the assessed value of the qualified real property for the current taxable year
below the inflation adjusted value.
Section 2. Section 
59-2-303
 is amended to read:
59-2-303.
General duties of county assessor.
(1) [
Prior to
] 
(a) Before
 May 22 each year, the county assessor shall
:
(i)
 ascertain the names of the owners of all property [
which
] 
that
 is subject to taxation
by the county[
, and shall
]
;
(ii) except as provided in Subsection (2),
 assess the property to the owner, claimant of
record, or occupant in possession or control at [
o'clock midnight of January 1 in the tax
year, unless a subsequent conveyance of ownership of the real property was recorded in the
office of the county recorder more than 14 calendar days before the date of mailing of the tax
notice. In that case, any tax notice may be mailed, and the tax assessed, to the new owner. No
mistake in the name or address of the owner or supposed owner of property renders the
assessment invalid.
] 
midnight on January 1 of the taxable year; and
(iii) conduct the review process described in Section 
59-2-303.2
.
(b) No mistake in the name or address of the owner or supposed owner of property
renders the assessment invalid.
(2) If a conveyance of ownership of the real property was recorded in the office of a
county recorder after January 1 but more than 14 calendar days before the day on which the
county treasurer mails the tax notice, the county assessor shall assess the property to the new
owner.
[
(2)
] 
(3)
 A county assessor shall become fully acquainted with all property in [
his
] 
the
county assessor's
 county, as provided in Section 
59-2-301
.
Section 3. Section 
59-2-303.2
 is enacted to read:
 59-2-303.2.
Automatic review of assessed value of qualified property.
(1) As used in this section:
(a) "Final assessed value" means:
(i) for a qualified property for which the property owner did not appeal the valuation or
equalization in accordance with Section 
59-2-1004
, the assessed value as stated on the
valuation notice described in Section 
59-2-919.1
;
(ii) for a qualified property for which the property owner appealed the valuation or
equalization in accordance with Section 
59-2-1004
, the assessed value given to the qualified
property by a county board of equalization after the appeal; or
(iii) for a qualified property for which the property owner or a county assessor appealed
the valuation or equalization in accordance with Section 
59-2-1006
 or sought judicial review of
the valuation or equalization in accordance with Section 
59-1-602
 or Title 63G, Chapter 4, Part
4, Judicial Review, the assessed value given to the qualified property by the commission.
(b) "Median property value change" means the midpoint of the property value changes
for all real property that is:
(i) of the same class of real property as the qualified property; and
(ii) located within the same county as the qualified property.
(c) "Property value change" means the percentage change in the fair market value of
real property between January 1 of the previous year and January 1 of the current year.
(d) "Qualified property" means real property located in the county:
(i) that between January 1 of the previous year and January 1 of the current year has not
been improved; and
(ii) for which the county assessor did not conduct a detailed review of property
characteristics during the current taxable year.
(e) "Threshold increase" means an increase in a qualified property's assessed value for
the current taxable year compared to the final assessed value of the qualified property for the
previous taxable year that is:
(i) the median property value change plus 15%; and
(ii) $10,000.
(2) (a) Before completing and delivering the assessment book to the county auditor in
accordance with Section 
59-2-311
, the county assessor shall review an assessment of qualified
property for which the assessed value for the current taxable year is equal to or exceeds the
threshold increase.
(b) The county assessor shall keep an electronic record that:
(i) includes:
(A) a listing, by property owner and parcel number, of qualified property for the
taxable year;
(B) the date on which the county assessor conducted the review required by this
section; and
(C) the results of the review required by this section; and
(ii) is accessible by the county board of equalization on or before July 22 of the taxable
year.
(3) (a) If the county assessor determines that the assessed value of the qualified
property reflects the qualified property's fair market value, the county assessor shall not adjust
the qualified property's assessed value.
(b) If the county assessor determines that the assessed value of the qualified property
does not reflect the qualified property's fair market value, the county assessor shall adjust the
assessed value of the qualified property to reflect the fair market value.
(4) The review process described in this section does not supersede or otherwise affect
a taxpayer's right to appeal or to seek judicial review of the valuation or equalization of the
taxpayer's qualified property in accordance with:
(a) this part;
(b) Title 59, Chapter 1, Part 6, Judicial Review; or
(c) Title 63G, Chapter 4, Part 4, Judicial Review.
Section 4. Section 
59-2-311
 is amended to read:
59-2-311.
Completion and delivery of assessment book -- Signed statement
required -- Contents of signed statement -- Adjustment of assessment in assessment book.
(1) [
Prior to
] 
Before
 May 22 each year, the 
county
 assessor shall complete and deliver
the assessment book to the county auditor.
(2) The 
county
 assessor shall subscribe and sign a statement in the assessment book
substantially as follows:
I, ____, the assessor of ____ County, do swear that before May 22, _______(year), I
made diligent inquiry and examination, and either personally or by deputy, established the
value of all of the property within the county subject to assessment by me; that the property has
been assessed on the assessment book equally and uniformly according to the best of my
judgment, information, and belief at its fair market value; that I have faithfully complied with
all the duties imposed on the assessor under the revenue laws including the requirements of
Section 
59-2-303.1
; and that I have not imposed any unjust or double assessments through
malice or ill will or otherwise, or allowed anyone to escape a just and equal assessment through
favor or reward, or otherwise.
(3) Before completing and delivering the assessment book under Subsection (1), the
county
 assessor shall adjust the assessment of property in the assessment book to reflect an
adjustment in the taxable value of any property if the adjustment in taxable value is made:
(a) by the county board of equalization [
under
] 
in accordance with
 Section
59-2-1004.5
[
; and
] 
on or before May 15; or
[
(b) on or before May 15.
]
(b) by the county assessor in accordance with Section 
59-2-303.2
.
Section 5. Section 
59-2-1004
 is amended to read:
59-2-1004.
Appeal to county board of equalization -- Real property -- Time
period for appeal -- Decision of board -- Extensions approved by commission -- Appeal to
commission.
(1) As used in this section:
(a) "Final assessed value" means:
(i) for real property for which the property owner appealed the valuation or
equalization in accordance with Section 
59-2-1004
, the assessed value given to the real
property by a county board of equalization after the appeal; or
(ii) for real property for which the property owner or the county assessor appealed the
valuation or equalization in accordance with Section 
59-2-1006
 or sought judicial review of the
valuation or equalization in accordance with Section 
59-1-602
 or Title 63G, Chapter 4, Part 4,
Judicial Review, the assessed value given to the real property by the commission.
(b) "Inflation adjusted value" means the final assessed value for the previous taxable
year of the real property that is the subject of the appeal increased by the median property value
increase.
(c) "Median property value increase" means the midpoint of the property value
changes, if the midpoint is greater than zero, for all real property that is:
(i) of the same class of real property as the qualified property; and
(ii) located within the same county as the qualified property.
(d) "Property value change" means the percentage change in the fair market value of
real property between January 1 of the previous year and January 1 of the current year.
(e) "Qualified real property" means real property:
(i) for which:
(A) the taxpayer or a county assessor appealed the valuation or equalization in
accordance with Section 
59-2-1004
 or 
59-2-1006
 during the previous year; and
(B) as a result of the appeal described in Subsection (1)(e)(i)(A), a county board of
equalization or the commission reduced the assessed value for the previous taxable year;
(ii) that the taxpayer has not improved between January 1 of the previous taxable year
and January 1 of the current taxable year; and
(iii) for which the assessed value for the current taxable year is higher than the inflation
adjusted value.
[
(1)
] 
(2)
 (a) A taxpayer dissatisfied with the valuation or the equalization of the
taxpayer's real property may make an application to appeal by:
(i) filing the application with the county board of equalization within the time period
described in Subsection [
(2)
] 
(3)
; or
(ii) making an application by telephone or other electronic means within the time
period described in Subsection [
(2)
] 
(3)
 if the county legislative body passes a resolution under
Subsection [
(7) authorizing applications to be made
] 
(8) authorizing a taxpayer to make an
application
 by telephone or other electronic means.
(b) 
(i)
 The 
county board of equalization shall make a rule describing the
 contents of the
application [
shall be prescribed by rule of the county board of equalization
].
(ii) In addition to any information the county board of equalization requires, the
application shall include information about:
(A) the burden of proof in an appeal involving qualified real property; and
(B) the process for a taxpayer who owns qualified real property to learn the inflation
adjusted value of the qualified real property.
[
(2)
] 
(3)
 (a) Except as provided in Subsection [
(2)(b),
] 
(3)(b) and
 for purposes of
Subsection (1), a taxpayer shall make an application to appeal the valuation or the equalization
of the taxpayer's real property on or before the later of:
(i) September 15 of the current calendar year; or
(ii) the last day of a 45-day period beginning on the day on which the county auditor
provides the notice under Section 
59-2-919.1
.
(b) [
Notwithstanding Subsection (2)(a), in
] 
In
 accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the commission shall make rules providing for
circumstances under which the county board of equalization is required to accept an application
to appeal that is filed after the time period prescribed in Subsection [
(2)
] 
(3)
(a).
[
(3) The owner
]
(4) (a) Except as provided in Subsection (4)(b), the taxpayer
 shall include in the
application under Subsection [
(1)
] 
(2)
(a)(i) the [
owner's
] 
taxpayer's
 estimate of the fair market
value of the property and any evidence [
which
] 
that
 may indicate that the assessed valuation of
the [
owner's
] 
taxpayer's
 property is improperly equalized with the assessed valuation of
comparable properties.
(b) (i) For an appeal involving qualified real property:
(A) the county board of equalization shall presume that the fair market value of the
qualified real property is equal to the inflation adjusted value; and
(B) except as provided in Subsection (4)(b)(ii), the taxpayer may provide the
information described in Subsection (4)(a).
(ii) If the taxpayer seeks to prove that the fair market value of the qualified real
property is below the inflation adjusted value, the taxpayer shall provide the information
described in Subsection (4)(a).
[
(4)
] 
(5)
 In reviewing evidence submitted to a county board of equalization by or on
behalf of an owner or a county assessor, the county board of equalization shall consider and
weigh:
(a) the accuracy, reliability, and comparability of the evidence presented by the owner
or the county assessor;
(b) if submitted, the sales price of relevant property that was under contract for sale as
of the lien date but sold after the lien date;
(c) if submitted, the sales offering price of property that was offered for sale as of the
lien date but did not sell, including considering and weighing the amount of time for which,
and manner in which, the property was offered for sale; and
(d) if submitted, other evidence that is relevant to determining the fair market value of
the property.
[
(5)
] 
(6)
 (a) The county board of equalization shall meet and hold public hearings as
[
prescribed
] 
described
 in Section 
59-2-1001
.
(b) The county board of equalization shall make a decision on each appeal filed in
accordance with this section within [
a 60-day period
] 
days
 after the day on which the
taxpayer makes an
 application [
is made
].
(c) The commission may approve the extension of a time period provided for in
Subsection [
(5)
] 
(6)
(b) for a county board of equalization to make a decision on an appeal.
(d) Unless the commission approves the extension of a time period under Subsection
[
(5)
] 
(6)
(c), if a county board of equalization fails to make a decision on an appeal within the
time period described in Subsection [
(5)
] 
(6)
(b), the county legislative body shall:
(i) list the appeal, by property owner and parcel number, on the agenda for the next
meeting [
of
] the county legislative body [
that is held
] 
holds
 after the expiration of the time
period described in Subsection [
(5)
] 
(6)
(b); and
(ii) hear the appeal at the meeting described in Subsection [
(5)
] 
(6)
(d)(i).
(e) The decision of the 
county
 board 
of equalization
 shall contain
:
(i)
 a determination of the valuation of the property based on fair market value[
,
]
;
 and
(ii)
 a conclusion that the fair market value is properly equalized with the assessed value
of comparable properties.
(f) If no evidence is presented before the county board of equalization, [
it will be
presumed
] 
the county board of equalization shall presume
 that the equalization issue has been
met.
(g) (i) If the fair market value of the property that is the subject of the appeal deviates
plus or minus 5% from the assessed value of comparable properties, the 
county board of
equalization shall adjust the
 valuation of the appealed property [
shall be adjusted
] to reflect a
value equalized with the assessed value of comparable properties.
(ii) Subject to Sections 
59-2-301.1
, 
59-2-301.2
, 
59-2-301.3
, and 
59-2-301.4
, equalized
value established under Subsection [
(5)
] 
(6)
(g)(i) shall be the assessed value for property tax
purposes until the county assessor is able to evaluate and equalize the assessed value of all
comparable properties to bring [
them
] all 
comparable properties
 into conformity with full fair
market value.
[
(6)
] 
(7)
 If any taxpayer is dissatisfied with the decision of the county board of
equalization, the taxpayer may file an appeal with the commission as [
prescribed
] 
described
 in
Section 
59-2-1006
.
[
(7)
] 
(8)
 A county legislative body may pass a resolution authorizing taxpayers owing
taxes on property assessed by that county to file property tax appeals applications under this
section by telephone or other electronic means.
Section 6. Section 
59-2-1004.5
 is amended to read:
59-2-1004.5.
Valuation adjustment for decrease in taxable value caused by a
natural disaster.
(1) For purposes of this section:
(a) [
"natural
] 
"Natural
 disaster" means:
(i) an explosion;
(ii) fire;
(iii) a flood;
(iv) a storm;
(v) a tornado;
(vi) winds;
(vii) an earthquake;
(viii) lightning;
(ix) any adverse weather event; or
(x) any event similar to an event described in this Subsection (1), as determined by the
commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act[
; and
]
.
(b) "[
natural
] 
Natural
 disaster damage" means any physical harm to property caused by
a natural disaster.
(2) Except as provided in Subsection (3), if, during a calendar year, property sustains a
decrease in taxable value that is caused by natural disaster damage, the owner of the property
may apply to the county board of equalization for an adjustment in the taxable value of the
owner's property as provided in Subsection (4).
(3) [
Notwithstanding Subsection (2), an
] 
An
 owner may not receive the valuation
adjustment described in this section if the decrease in taxable value described in Subsection (2)
is:
(a) due to the intentional action or inaction of the owner; or
(b) less than 30% of the taxable value of the property described in Subsection (2)
before the decrease in taxable value described in Subsection (2).
(4) (a) To receive the valuation adjustment described in Subsection (2), the owner of
the property shall file an application for the valuation adjustment with the county board of
equalization on or before the later of:
(i) the deadline described in Subsection 
59-2-1004
[
(2)
]
(3)
; or
(ii) 45 days after the day on which the natural disaster damage described in Subsection
(2) occurs.
(b) The county board of equalization shall hold a hearing:
(i) within 30 days [
of
] 
after
 the day on which the 
county board of equalization receives
the
 application described in Subsection (4)(a) [
is received by the board of equalization
]; and
(ii) following the procedures and requirements of Section 
59-2-1001
.
(c) At the hearing described in Subsection (4)(b), the applicant shall have the burden of
proving, by a preponderance of the evidence:
(i) that the property sustained a decrease in taxable value, that:
(A) was caused by natural disaster damage; and
(B) is at least 30% of the taxable value of the property described in this Subsection
(4)(c)(i) before the decrease in taxable value described in this Subsection (4)(c)(i);
(ii) the amount of the decrease in taxable value described in Subsection (4)(c)(i); and
(iii) that the decrease in taxable value described in Subsection (4)(c)(i) is not due to the
action or inaction of the applicant.
(d) If the county board of equalization determines that the applicant has met the burden
of proof described in Subsection (4)(c), the county board of equalization shall reduce the
valuation of the property described in Subsection (4)(c)(i) by an amount equal to the decrease
in taxable value of the property multiplied by the percentage of the calendar year remaining
after the natural disaster damage occurred.
(e) The decision of the board of equalization shall be provided to the applicant, in
writing, within 30 days [
of
] 
after
 the day on which 
the county board of equalization concludes
the hearing described in Subsection (4)(b) [
is concluded
].
(5) An applicant that is dissatisfied with a decision of the 
county
 board of equalization
under this section may appeal that decision under Section 
59-2-1006
.
Section 7. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.
Legislative Review Note
Office of Legislative Research and General Counsel