Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 52 Second Substitute (2021GS)

Sponsor

Sen. Fillmore, L.

Final action

Senate/ filed 3/5/2021

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• requires a county to grant a property tax deferral to an owner of a single-family residence who is 66 years old or older and whose residence is valued at less than $500,000 under certain circumstances;
• provides an inflation adjustment for the value threshold;
• clarifies the application requirements for a compulsory property tax deferral; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

PROPERTY TAX DEFERRAL MODIFICATIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: 
 Robert M. Spendlove
LONG TITLE
Committee Note:
The Revenue and Taxation Interim Committee recommended this bill.
Legislative Vote: 14 voting for 4 voting against 1 absent
General Description:
This bill modifies the deferral provisions of the Property Tax Act.
Highlighted Provisions:
This bill:
▸ requires a county to grant a property tax deferral to an owner of a single-family
residence who is 66 years old or older and whose residence is valued at less than
$500,000 under certain circumstances;
▸ provides an inflation adjustment for the value threshold;
▸ clarifies the application requirements for a compulsory property tax deferral; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-2-1802
, as enacted by Laws of Utah 2019, Chapter 453
59-2-1804
, as enacted by Laws of Utah 2019, Chapter 453
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-2-1802
 is amended to read:
59-2-1802.
Tax deferral.
(1) (a) In accordance with this part 
and after giving notice to the taxpayer
, a county
may defer a tax on residential property [
after giving notice to the taxpayer
]
, allowing the
taxpayer to pay the tax at a later date
.
(b) In determining a deferral, a county shall consider an asset transferred to a relative
by an applicant for deferral, if the transfer took place during the three years prior to the day on
which the applicant applied for deferral.
(2) A county may grant a deferral 
described in Subsection (1)
 at any time:
(a) after the holder of each mortgage or trust deed outstanding on the property gives
written approval of the application; and
(b) if the applicant is not the owner of income-producing assets that could be liquidated
to pay the tax.
(3) In accordance with this part, a county shall defer a tax on a single-family residence
if:
(a) the owner of the single-family residence is:
(i) an individual who is 66 years old or older on or before December 31 of the year for
which the individual applies for a deferral; or
(ii) a trust described in Section 
59-2-1805
 for which the grantor is an individual who is
years old or older on or before December 31 of the year for which the individual applies for
a deferral;
(b) the single-family residence was the owner's primary residence as of January 1 of the
year for which the owner applies for a deferral;
(c) subject to Subsection (4), the value of the single-family residence for the year in
which the owner applies for a deferral is, according to the county assessment roll, less than
$500,000; and
(d) the holder of each mortgage or trust deed outstanding on the single-family
residence gives written approval of the deferral.
(4) (a) For a calendar year beginning on or after January 1, 2022, the commission shall
increase the dollar amount described in Subsection (3)(c):
(i) by a percentage equal to the percentage difference between the consumer price
index for the preceding calendar year and the consumer price index for calendar year 2020; and
(ii) up to the nearest $100 increment.
(b) For purposes of this Subsection (4), the commission shall calculate the consumer
price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(c) If the percentage difference under Subsection (4)(a)(i) is zero or a negative
percentage, the consumer price index increase for the year is zero.
[
(3)
] 
(5)
 Taxes deferred by the county accumulate with interest as a lien against the
residential property, as described in Subsection [
(4)
] 
(6)
, until the owner sells or otherwise
disposes of the residential property.
[
(4)
] 
(6)
 Deferred taxes under this section:
(a) bear interest at an interest rate equal to the lesser of:
(i) 6%; or
(ii) the federal funds rate target:
(A) established by the Federal Open Markets Committee; and
(B) that exists on the January 1 immediately preceding the day on which the taxes are
deferred; and
(b) have the same status as a lien as described in Sections 
59-2-1301
 and 
59-2-1325
.
[
(5)
] 
(7)
 If the owner of residential property that is granted deferral under this section is
an indigent individual, during the period of deferral the county may not subject the residential
property to a tax sale.
Section 2. Section 
59-2-1804
 is amended to read:
59-2-1804.
Application for tax deferral or tax abatement.
(1) (a) Except as provided in Subsection (1)(b), an applicant for deferral or abatement
for the current tax year shall file 
annually
 an application on or before September 1 with the
county in which the applicant's property is located.
(b) If a county finds good cause exists, the county may extend until December 31 the
deadline described in Subsection (1)(a).
(c) An indigent individual may apply and potentially qualify for deferral, abatement, or
both.
(2) 
(a)
 An applicant shall include in an application a signed statement that describes the
eligibility of the applicant for deferral or abatement.
(b) For an application for a deferral under Subsection 
59-2-1802
(3), the requirements
described in Subsection (2)(a) include:
(i) proof that the applicant resides at the single-family residence for which the applicant
seeks the deferral; and
(ii) proof of age.
(3) Both spouses shall sign an application if the application seeks a deferral or
abatement on a residence:
(a) in which both spouses reside; and
(b) that the spouses own as joint tenants.
(4) If an applicant is dissatisfied with a county's decision on the applicant's application
for deferral or abatement, the applicant may appeal the decision to the commission in
accordance with Section 
59-2-1006
.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules to implement this section.
Section 3. 
Retrospective operation.
This bill has retrospective operation to January 1, 2021.