Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 20 Third Substitute (2022GS)

Sponsor

Sen. Bramble, C.

Final action

Governor Signed 3/23/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• clarifies the formula for calculating an energy supplier's fee in lieu of property tax;
• requires an interlocal entity that owns an electric generation and transmission facility to report to the State Tax Commission information about sales of electricity to energy suppliers and public agencies;
• modifies the circumstances under which a county has to require a written declaration to qualify for the primary residential property tax exemption;
• modifies a property owner's right to appeal a determination about the owner's eligibility for the primary residential property tax exemption;
• defines "public utility" and "telecommunications service provider";
• provides that the State Tax Commission may not assess property owned by a telecommunications service provider;
• creates a process for the Multicounty Appraisal Trust to value personal property of a telecommunications service provider before forwarding the information to county assessors for assessment;
• modifies the calculation of the centrally assessed benchmark value for purposes of property tax new growth;
• modifies the rate of the multicounty assessing and collecting levy; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

PROPERTY TAX AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Curtis S. Bramble
House Sponsor: 
Adam Robertson
LONG TITLE
General Description:
This bill modifies property tax and fee in lieu of property tax provisions.
Highlighted Provisions:
This bill:
▸ clarifies the formula for calculating an energy supplier's fee in lieu of property tax;
▸ requires an interlocal entity that owns an electric generation and transmission
facility to report to the State Tax Commission information about sales of electricity
to energy suppliers and public agencies;
▸ modifies the circumstances under which a county has to require a written
declaration to qualify for the primary residential property tax exemption;
▸ modifies a property owner's right to appeal a determination about the owner's
eligibility for the primary residential property tax exemption;
▸ defines "public utility" and "telecommunications service provider";
▸ provides that the State Tax Commission may not assess property owned by a
telecommunications service provider;
▸ creates a process for the Multicounty Appraisal Trust to value personal property of a
telecommunications service provider before forwarding the information to county
assessors for assessment;
▸ modifies the calculation of the centrally assessed benchmark value for purposes of
property tax new growth;
▸ modifies the rate of the multicounty assessing and collecting levy; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
11-13-302
, as last amended by Laws of Utah 2018, Chapters 415 and 456
59-2-102
, as last amended by Laws of Utah 2021, Chapter 314
59-2-103.5
, as last amended by Laws of Utah 2021, Chapters 367 and 389
59-2-201
, as last amended by Laws of Utah 2017, Chapter 425
59-2-306
, as last amended by Laws of Utah 2010, Chapter 131
59-2-307
, as last amended by Laws of Utah 2021, Chapter 389
59-2-308
, as enacted by Laws of Utah 1987, Chapter 4
59-2-924
, as last amended by Laws of Utah 2021, Chapters 214 and 388
59-2-1005
, as last amended by Laws of Utah 2010, Chapter 131
59-2-1602
, as last amended by Laws of Utah 2021, Chapter 367
ENACTS:
59-2-306.5
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
11-13-302
 is amended to read:
11-13-302.
Payment of fee in lieu of ad valorem property tax by certain energy
suppliers -- Method of calculating -- Collection -- Extent of tax lien.
(1) (a) Each project entity created under this chapter that owns a project and that sells
any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible
property is not exempted by Utah Constitution Article XIII, Section 3, from the payment of ad
valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
this section to each taxing jurisdiction within which the project or any part of it is located.
(b) For purposes of this section, "annual fee" means the annual fee described in
Subsection (1)(a) that is in lieu of ad valorem property tax.
(c) The requirement to pay an annual fee shall commence:
(i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
impact alleviation payments under contracts or determination orders provided for in Sections
11-13-305
 and 
11-13-306
, with the fiscal year of the candidate following the fiscal year of the
candidate in which the date of commercial operation of the last generating unit, other than any
generating unit providing additional project capacity, of the project occurs, or, in the case of
any facilities providing additional project capacity, with the fiscal year of the candidate
following the fiscal year of the candidate in which the date of commercial operation of the
generating unit providing the additional project capacity occurs; and
(ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
project commences, or, in the case of facilities providing additional project capacity, with the
fiscal year of the taxing jurisdiction in which construction of those facilities commences.
(d) The requirement to pay an annual fee shall continue for the period of the useful life
of the project or facilities.
(2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
because the ad valorem property tax imposed by a school district and authorized by the
Legislature represents both:
(i) a levy mandated by the state for the state minimum school program under Section
53F-2-301
 or 
53F-2-301.5
, as applicable; and
(ii) local levies for capital outlay and other purposes under Sections 
53F-8-303
,
53F-8-301
, and 
53F-8-302
.
(b) The annual fees due a school district shall be as follows:
(i) the project entity shall pay to the school district an annual fee for the state minimum
school program at the rate imposed by the school district and authorized by the Legislature
under Section 
53F-2-301
 or 
53F-2-301.5
, as applicable ; and
(ii) for all other local property tax levies authorized to be imposed by a school district,
the project entity shall pay to the school district either:
(A) an annual fee; or
(B) impact alleviation payments under contracts or determination orders provided for
in Sections 
11-13-305
 and 
11-13-306
.
(3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated
by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
multiplying the fee base or value determined in accordance with Subsection (4) for that year of
the portion of the project located within the jurisdiction by the percentage of the project which
is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.
(b) As used in this section, "tax rate," when applied in respect to a school district,
includes any assessment to be made by the school district under Subsection (2) or Section
63M-5-302
.
(c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
the proceeds of which were used to provide public facilities and services for impact alleviation
in the taxing jurisdiction in accordance with Sections 
11-13-305
 and 
11-13-306
.
(d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
(i) take into account the fee base or value of the percentage of the project located
within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
capacity, service, or other benefit sold to the supplier or suppliers; and
(ii) reflect any credit to be given in that year.
(4) (a) Except as otherwise provided in this section, the annual fees required by this
section shall be paid, collected, and distributed to the taxing jurisdiction as if:
(i) the annual fees were ad valorem property taxes; and
(ii) the project were assessed at the same rate and upon the same measure of value as
taxable property in the state.
(b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
this section, the fee base of a project may be determined in accordance with an agreement
among:
(A) the project entity; and
(B) any county that:
(I) is due an annual fee from the project entity; and
(II) agrees to have the fee base of the project determined in accordance with the
agreement described in this Subsection (4).
(ii) The agreement described in Subsection (4)(b)(i):
(A) shall specify each year for which the fee base determined by the agreement shall be
used for purposes of an annual fee; and
(B) may not modify any provision of this chapter except the method by which the fee
base of a project is determined for purposes of an annual fee.
(iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
jurisdiction.
(iv) (A) If there is not agreement as to the fee base of a portion of a project for any
year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
portion of the project for which there is not an agreement:
(I) for that year; and
(II) using the same measure of value as is used for taxable property in the state.
(B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
Commission in accordance with rules made by the State Tax Commission.
(c) Payments of the annual fees shall be made from:
(i) the proceeds of bonds issued for the project; and
(ii) revenues derived by the project entity from the project.
(d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
other benefits of the project whose tangible property is not exempted by Utah Constitution
Article XIII, Section 3, from the payment of ad valorem property tax shall require each
purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
its share, determined in accordance with the terms of the contract, of these fees.
(ii) It is the responsibility of the project entity to enforce the obligations of the
purchasers.
(5) (a) The responsibility of the project entity to make payment of the annual fees is
limited to the extent that there is legally available to the project entity, from bond proceeds or
revenues, money to make these payments, and the obligation to make payments of the annual
fees is not otherwise a general obligation or liability of the project entity.
(b) No tax lien may attach upon any property or money of the project entity by virtue of
any failure to pay all or any part of an annual fee.
(c) The project entity or any purchaser may contest the validity of an annual fee to the
same extent as if the payment was a payment of the ad valorem property tax itself.
(d) The payments of an annual fee shall be reduced to the extent that any contest is
successful.
(6) (a) The annual fee described in Subsection (1):
(i) shall be paid by a public agency that:
(A) is not a project entity; and
(B) owns an interest in a facility providing additional project capacity if the interest is
otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
(ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
accordance with Subsection (6)(b).
(b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
(i) the fee base or value of the facility providing additional project capacity located
within the jurisdiction;
(ii) the percentage of the ownership interest of the public agency in the facility; and
(iii) the portion, expressed as a percentage, of the public agency's ownership interest
that is attributable to the capacity, service, or other benefit from the facility that is sold
,
including any subsequent sale, resale, or layoff,
 by the public agency to an energy supplier or
suppliers whose tangible property is not exempted by Utah Constitution, Article XIII, Section
3, from the payment of ad valorem property tax.
(c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
to its ownership interest as though it were a project entity.
(d) On or before March 1 of each year, a project entity that owns a project and that
provides any capacity, service, or other benefit to an energy supplier or a public agency shall
file an electronic report with the State Tax Commission that identifies:
(i) each energy supplier and public agency to which the project entity delivers capacity,
service, or other benefit; and
(ii) the amount of capacity, service, or other benefit delivered to each energy supplier
and public agency.
Section 2. Section 
59-2-102
 is amended to read:
59-2-102.
Definitions.
As used in this chapter:
(1) (a) "Acquisition cost" means any cost required to put an item of tangible personal
property into service.
(b) "Acquisition cost" includes:
(i) the purchase price of a new or used item;
(ii) the cost of freight, shipping, loading at origin, unloading at destination, crating,
skidding, or any other applicable cost of shipping;
(iii) the cost of installation, engineering, rigging, erection, or assembly, including
foundations, pilings, utility connections, or similar costs; and
(iv) sales and use taxes.
(2) "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.
(3) "Air charter service" means an air carrier operation that requires the customer to
hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
trip.
(4) "Air contract service" means an air carrier operation available only to customers
that 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.
(5) "Aircraft" means the same as that term is defined in Section 
72-10-102
.
(6) (a) Except as provided in Subsection (6)(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.
(7) "Assessment roll" or "assessment book" 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.
(8) "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.
(9) (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 multicounty assessing and collecting levy, as specified in
Section 
59-2-1602
; and
(ii) the product of:
(A) eligible new growth, as defined in Section 
59-2-924
; and
(B) the multicounty assessing and collecting levy certified by the commission for the
previous year.
(b) For purposes of this Subsection (9), "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
(9), 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.
(10) "County-assessed commercial vehicle" means:
(a) any commercial vehicle, trailer, or semitrailer that 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.
(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
before the day on which the notice described in Section 
59-2-919.1
 is required to be provided;
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.
(12) (a) "Escaped property" means any property, whether personal, land, or any
improvements to the property, that is 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) "Escaped property" does not include property that is undervalued because of the use
of a different valuation methodology or because of a different application of the same valuation
methodology.
(13)(a) "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.
(b) 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.
(14) "Geothermal fluid" means water in any form at temperatures greater than 120
degrees centigrade naturally present in a geothermal system.
(15) "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) (a) "Goodwill" means:
(i) acquired goodwill that is reported as goodwill on the books and records that a
taxpayer maintains for financial reporting purposes; or
(ii) the ability of a business to:
(A) generate income that exceeds a normal rate of return on assets and that results from
a factor described in Subsection (16)(b); or
(B) obtain an economic or competitive advantage resulting from a factor described in
Subsection (16)(b).
(b) The following factors apply to Subsection (16)(a)(ii):
(i) superior management skills;
(ii) reputation;
(iii) customer relationships;
(iv) patronage; or
(v) a factor similar to Subsections (16)(b)(i) through (iv).
(c) "Goodwill" does not include:
(i) the intangible property described in Subsection (19)(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) "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;
(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
; or
(e) for a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure
District Act, the public infrastructure district's board of trustees.
(18) (a) Except as provided in Subsection (18)(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 (18)(a) if the accessory is:
(A) essential to the operation of the item described in Subsection (18)(a); and
(B) installed solely to serve the operation of the item described in Subsection (18)(a);
and
(ii) an item described in Subsection (18)(a) that is temporarily detached from the land
for repairs and remains located on the land.
(c) "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 for stability only or 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 the land or 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
.
(19) "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).
(20) "Livestock" means:
(a) a domestic animal;
(b) a fish;
(c) a fur-bearing animal;
(d) a honeybee; or
(e) poultry.
(21) "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 Section 
59-7-607
 or Section 
59-10-1010
.
(22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
(23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
valuable mineral.
(24) "Mining" means the process of producing, extracting, leaching, evaporating, or
otherwise removing a mineral from a mine.
(25) (a) "Mobile flight equipment" means tangible personal property that is owned or
operated by an air charter service, air contract service, or airline and:
(i) is capable of flight or is attached to an aircraft that is capable of flight; or
(ii) is contained in an aircraft that is capable of flight if the tangible personal property
is intended to be used:
(A) during multiple flights;
(B) during a takeoff, flight, or landing; and
(C) 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 at regular intervals 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."
(26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
sand, rock, gravel, and all carboniferous materials.
(27) "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.
(28) "Personal property" includes:
(a) every class of property as defined in Subsection (29) that is the subject of
ownership and is not real estate or an improvement;
(b) any pipe laid in or affixed to land whether or not the ownership of the pipe is
separate from the ownership of the underlying land, even if the pipe meets the definition of an
improvement;
(c) bridges and ferries;
(d) livestock; and
(e) outdoor advertising structures as defined in Section 
72-7-502
.
(29) (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.
(30) 
(a)
 "Public utility" means:
[
(a) for purposes of this chapter,
] 
(i)
 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; and
[
(b)
] 
(ii)
 the operating property of any entity or person defined under Section 
54-2-1
except water corporations.
(b) "Public utility" does not include the operating property of a telecommunications
service provider.
(31) (a) Subject to Subsection (31)(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 (31)
and Subsection (34).
(32) "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.
(33) (a) "Relationship with an owner of the property's land surface rights" means a
relationship described in Subsection 267(b), Internal Revenue Code, except that the term 25%
shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code.
(b) For purposes of determining if a relationship described in Subsection 267(b),
Internal Revenue Code, exists, the ownership of stock shall be determined using the ownership
rules in Subsection 267(c), Internal Revenue Code.
(34) (a) "Residential property," for purposes of the reductions and adjustments under
this chapter, means any property used for residential purposes as a primary residence.
(b) "Residential property" includes:
(i) except as provided in Subsection (34)(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) if the county assessor determines that the property will be used for residential
purposes as a primary residence:
(A) property under construction; or
(B) unoccupied property.
(c) "Residential property" does not include property used for transient residential use.
(d) 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 (31) and
this Subsection (34).
(35) "Split estate mineral rights owner" means a person that:
(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.
(36) (a) "State-assessed commercial vehicle" means:
(i) any commercial vehicle, trailer, or semitrailer that operates interstate or intrastate to
transport passengers, freight, merchandise, or other property for hire; or
(ii) any commercial vehicle, trailer, or semitrailer that 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 that are
specified in Subsection (10)(c) as county-assessed commercial vehicles.
(37) "Subdivided lot" means a lot, parcel, or other division of land, that is a division of
a base parcel.
(38) "Tax area" means a geographic area created by the overlapping boundaries of one
or more taxing entities.
(39) "Taxable value" means fair market value less any applicable reduction allowed for
residential property under Section 
59-2-103
.
(40) "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) (a) "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.
(b) "Tax roll" includes tax books, tax lists, and other similar materials.
(42) "Telecommunications service provider" means the same as that term is defined in
Section 
59-12-102
.
Section 3. Section 
59-2-103.5
 is amended to read:
59-2-103.5.
Procedures to obtain an exemption for residential property --
Procedure if property owner or property no longer qualifies to receive a residential
exemption.
(1) Subject to Subsection (8), for residential property other than part-year residential
property, a county legislative body may adopt an ordinance that requires an owner to file an
application with the county board of equalization before a residential exemption under Section
59-2-103
 may be applied to the value of the residential property if:
(a) the residential property was ineligible for the residential exemption during the
calendar year immediately preceding the calendar year for which the owner is seeking to have
the residential exemption applied to the value of the residential property;
(b) an ownership interest in the residential property changes; or
(c) the county board of equalization determines that there is reason to believe that the
residential property no longer qualifies for the residential exemption.
(2) (a) The application described in Subsection (1):
(i) shall be on a form the commission prescribes by rule and makes available to the
counties;
(ii) shall be signed by the owner of the residential property; and
(iii) may not request the sales price of the residential property.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules prescribing the contents of the form described in Subsection
(2)(a).
(c) For purposes of the application described in Subsection (1), a county may not
request information from an owner of a residential property beyond the information provided in
the form prescribed by the commission under this Subsection (2).
(3) (a) Regardless of whether a county legislative body adopts an ordinance described
in Subsection (1), before a residential exemption may be applied to the value of part-year
residential property, an owner of the property shall:
(i) file the application described in Subsection (2)(a) with the county board of
equalization; and
(ii) include as part of the application described in Subsection (2)(a) a statement that
certifies:
(A) the date the part-year residential property became residential property;
(B) that the part-year residential property will be used as residential property for 183 or
more consecutive calendar days during the calendar year for which the owner seeks to obtain
the residential exemption; and
(C) that the owner, or a member of the owner's household, may not claim a residential
exemption for any property for the calendar year for which the owner seeks to obtain the
residential exemption, other than the part-year residential property, or as allowed under Section
59-2-103
 with respect to the primary residence or household furnishings, furniture, and
equipment of the owner's tenant.
(b) If an owner files an application under this Subsection (3) on or after May 1 of the
calendar year for which the owner seeks to obtain the residential exemption, the county board
of equalization may require the owner to pay an application fee not to exceed $50.
(4) Except as provided in Subsection (5), if a property owner no longer qualifies to
receive a residential exemption authorized under Section 
59-2-103
 for the property owner's
primary residence, the property owner shall:
(a) file a written statement with the county board of equalization of the county in which
the property is located:
(i) on a form provided by the county board of equalization; and
(ii) notifying the county board of equalization that the property owner no longer
qualifies to receive a residential exemption authorized under Section 
59-2-103
 for the property
owner's primary residence; and
(b) declare on the property owner's individual income tax return under Chapter 10,
Individual Income Tax Act, for the taxable year for which the property owner no longer
qualifies to receive a residential exemption authorized under Section 
59-2-103
 for the property
owner's primary residence, that the property owner no longer qualifies to receive a residential
exemption authorized under Section 
59-2-103
 for the property owner's primary residence.
(5) A property owner is not required to file a written statement or make the declaration
described in Subsection (4) if the property owner:
(a) changes primary residences;
(b) qualified to receive a residential exemption authorized under Section 
59-2-103
 for
the residence that was the property owner's former primary residence; and
(c) qualifies to receive a residential exemption authorized under Section 
59-2-103
 for
the residence that is the property owner's current primary residence.
(6) Subsections (2) through (5) do not apply to qualifying exempt primary residential
rental personal property.
(7) (a) Subject to Subsection (8), for the first calendar year in which a property owner
qualifies to receive a residential exemption under Section 
59-2-103
, a county assessor may
require the property owner to file a signed statement described in Section 
59-2-306
.
(b) Subject to Subsection (8) and notwithstanding Section 
59-2-306
, for a calendar year
after the calendar year described in Subsection (7)(a) in which a property owner qualifies for an
exemption described in Subsection 
59-2-1115
(2) for qualifying exempt primary residential
rental personal property, a signed statement described in Section 
59-2-306
 with respect to the
qualifying exempt primary residential rental personal property may only require the property
owner to certify, under penalty of perjury, that the property owner qualifies for the exemption
under Subsection 
59-2-1115
(2).
(8) (a) [
Subject to the requirements of this Subsection (8) and except as provided in
Subsection (8)(b), on or before May 1, 2020, a
] 
After an ownership interest in residential
property changes, the
 county assessor shall:
(i) notify [
each owner of
] 
the owner of the
 residential property that the owner is
required to submit a written declaration described in Subsection (8)(d) within [
] 
 days after
the day on which the county assessor mails the notice under this Subsection (8)(a); and
(ii) provide [
each owner with a
] 
the owner of the residential property with the
 form
described in Subsection (8)(e) to make the written declaration described in Subsection (8)(d).
(b) A county assessor is not required to provide a notice to an owner of residential
property under Subsection (8)(a) if the situs address of the residential property is the same as
any one of the following:
(i) the mailing address of the residential property owner or the tenant of the residential
property;
(ii) the address listed on the:
(A) residential property owner's driver license; or
(B) tenant of the residential property's driver license; or
(iii) the address listed on the:
(A) residential property owner's voter registration; or
(B) tenant of the residential property's voter registration.
[
(c) After an ownership interest in residential property changes, the county assessor
shall:
]
[
(i) notify the owner of the residential property that the owner is required to submit a
written declaration described in Subsection (8)(d) within 90 days after the day on which the
owner receives notice under this Subsection (8)(c); and
]
[
(ii) provide the owner of the residential property with the form described in
Subsection (8)(e) to make the written declaration described in Subsection (8)(d).
]
(c) A county assessor is not required to provide a notice to an owner of residential
property under Subsection (8)(a) if:
(i) the owner is using a post office box or rural route box located in the county where
the residential property is located; and
(ii) the residential property is located in a county of the fourth, fifth, or sixth class.
(d) An owner of residential property that receives a notice described in Subsection
(8)(a) [
or (c)
] shall submit a written declaration to the county assessor under penalty of perjury
certifying the information contained in the form provided in Subsection (8)(e).
(e) The written declaration required by Subsection (8)(d) shall be:
(i) signed by the owner of the residential property; and
(ii) in substantially the following form:
"Residential Property Declaration
This form must be submitted to the County Assessor's office where your new residential
property is located within 90 days of receipt. Failure to do so will result in the county assessor
taking action that could result in the withdrawal of the primary residential exemption from your
residential property.
Residential Property Owner Information
Name(s):__________________________________________________
Home Phone:_______________________________________________
Work Phone:_______________________________________________
Mailing Address:____________________________________________
Residential Property Information
Physical Address:___________________________________________
Certification
1. Is this property used as a primary residential property or part-year residential
property for you or another person?
"Part-year residential property" means owned property that is not residential property on
January 1 of a calendar year but becomes residential property after January 1 of the calendar
year.
Yes No
2. Will this primary residential property or part-year residential property be occupied
for 183 or more consecutive calendar days by the owner or another person?
A part-year residential property occupied for 183 or more consecutive calendar days in
a calendar year by the owner(s) or a tenant is eligible for the exemption.
Yes No
If a property owner or a property owner's spouse claims a residential exemption under
Utah Code Ann. § 
59-2-103
 for property in this state that is the primary residence of the
property owner or the property owner's spouse, that claim of a residential exemption creates a
rebuttable presumption that the property owner and the property owner's spouse have domicile
in Utah for income tax purposes. The rebuttable presumption of domicile does not apply if the
residential property is the primary residence of a tenant of the property owner or the property
owner's spouse.
Signature
Under penalties of perjury, I declare to the best of my knowledge and belief, this
declaration and accompanying pages are true, correct, and complete.
__________________(Owner signature) _____________________Date (mm/dd/yyyy)
__________________(Owner printed name)
(f) For purposes of a written declaration described in this Subsection (8), a county may
not request information from a property owner beyond the information described in the form
provided in Subsection (8)(e).
(g) (i) If, after receiving a written declaration filed under Subsection (8)(d), the county
determines that the property has been incorrectly qualified or disqualified to receive a
residential exemption, the county shall:
(A) redetermine the property's qualification to receive a residential exemption; and
(B) notify the claimant of the redetermination and [
its
] 
the county's
 reason for the
redetermination.
(ii) The redetermination provided in Subsection (8)(g)(i)(A) is final unless [
appealed
within 30 days after the notice required by Subsection (8)(g)(i)(B).
]
:
(A) except as provided in Subsection (8)(g)(iii), the property owner appeals the
redetermination to the board of equalization in accordance with Subsection 
59-2-1004
(2); or
(B) the county determines that the property is eligible to receive a primary residential
exemption as part-year residential property.
(iii) The board of equalization may not accept an appeal that is filed after the later of:
(A) September 15 of the current calendar year; or
(B) the last day of the 45-day period beginning on the day on which the county auditor
provides the notice under Section 
59-2-919.1
.
(h) (i) If a residential property owner fails to file a written declaration required by
Subsection (8)(d), the county assessor shall mail to the owner of the residential property a
notice that:
(A) the property owner failed to file a written declaration as required by Subsection
(8)(d); and
(B) the property owner will no longer qualify to receive the residential exemption
authorized under Section 
59-2-103
 for the property that is the subject of the written declaration
if the property owner does not file the written declaration required by Subsection (8)(d) within
30 days after the day on which the county assessor mails the notice under this Subsection
(8)(h)(i).
(ii) If a property owner fails to file a written declaration required by Subsection (8)(d)
after receiving the notice described in Subsection (8)(h)(i), the property owner no longer
qualifies to receive the residential exemption authorized under Section 
59-2-103
 in the calendar
year for the property that is the subject of the written declaration[
.
] 
unless:
(A) except as provided in Subsection (8)(h)(iii), the property owner appeals the
redetermination to the board of equalization in accordance with Subsection 
59-2-1004
(2); or
(B) the county determines that the property is eligible to receive a primary residential
exemption as part-year residential property.
(iii) The board of equalization may not accept an appeal that is filed after the later of:
(A) September 15 of the current calendar year; or
(B) the last day of the 45-day period beginning on the day on which the county auditor
provides the notice under Section 
59-2-919.1
.
[
(iii)
] 
(iv)
 A property owner that is disqualified to receive the residential exemption
under Subsection (8)(h)(ii) may file an application described in Subsection (1) to determine
whether the owner is eligible to receive the residential exemption.
(i) The requirements of this Subsection (8) do not apply to a county assessor in a
county that has, for the five calendar years prior to 2019, had in place and enforced an
ordinance described in Subsection (1).
Section 4. Section 
59-2-201
 is amended to read:
59-2-201.
Assessment by commission -- Determination of value of mining
property -- Determination of value of aircraft -- Notification of assessment -- Local
assessment of property assessed by the unitary method -- Commission may consult with
county.
(1) (a) By May 1 of each year, the following property, unless otherwise exempt under
the Utah Constitution or under Part 11, Exemptions, Deferrals, and Abatements, shall be
assessed by the commission at 100% of fair market value, as valued on January 1, in
accordance with this chapter:
(i) except as provided in Subsection (2), all property that operates as a unit across
county lines, if the values must be apportioned among more than one county or state;
(ii) all property of public utilities;
(iii) all operating property of an airline, air charter service, and air contract service;
(iv) all geothermal fluids and geothermal resources;
(v) all mines and mining claims except in cases, as determined by the commission,
where the mining claims are used for other than mining purposes, in which case the value of
mining claims used for other than mining purposes shall be assessed by the assessor of the
county in which the mining claims are located; and
(vi) all machinery used in mining, all property or surface improvements upon or
appurtenant to mines or mining claims. For the purposes of assessment and taxation, all
processing plants, mills, reduction works, and smelters that are primarily used by the owner of
a mine or mining claim for processing, reducing, or smelting minerals taken from a mine or
mining claim shall be considered appurtenant to that mine or mining claim, regardless of actual
location.
(b) (i) For purposes of Subsection (1)(a)(iii), operating property of an air charter
service does not include an aircraft that is:
(A) used by the air charter service for air charter; and
(B) owned by a person other than the air charter service.
(ii) For purposes of this Subsection (1)(b):
(A) "person" means a natural person, individual, corporation, organization, or other
legal entity; and
(B) a person does not qualify as a person other than the air charter service as described
in Subsection (1)(b)(i)(B) if the person is:
(I) a principal, owner, or member of the air charter service; or
(II) a legal entity that has a principal, owner, or member of the air charter service as a
principal, owner, or member of the legal entity.
(2) 
(a) The commission may not assess property owned by a telecommunications
service provider.
(b)
 The commission shall assess and collect property tax on state-assessed commercial
vehicles at the time of original registration or annual renewal.
[
(a)
] 
(i)
 The commission shall assess and collect property tax annually on
state-assessed commercial vehicles that are registered pursuant to Section 
41-1a-222
 or
41-1a-228
.
[
(b)
] 
(ii)
 State-assessed commercial vehicles brought into the state that are required to
be registered in Utah shall, as a condition of registration, be subject to ad valorem tax unless all
property taxes or fees imposed by the state of origin have been paid for the current calendar
year.
[
(c)
] 
(iii)
 Real property, improvements, equipment, fixtures, or other personal property
in this state owned by the company shall be assessed separately by the local county assessor.
[
(d)
] 
(iv)
 The commission shall adjust the value of state-assessed commercial vehicles
as necessary to comply with 49 U.S.C. Sec. 14502, and the commission shall direct the county
assessor to apply the same adjustment to any personal property, real property, or improvements
owned by the company and used directly and exclusively in their commercial vehicle activities.
(3) (a) The method for determining the fair market value of productive mining property
is the capitalized net revenue method or any other valuation method the commission believes,
or the taxpayer demonstrates to the commission's satisfaction, to be reasonably determinative
of the fair market value of the mining property.
(b) The commission shall determine the rate of capitalization applicable to mines,
consistent with a fair rate of return expected by an investor in light of that industry's current
market, financial, and economic conditions.
(c) In no event may the fair market value of the mining property be less than the fair
market value of the land, improvements, and tangible personal property upon or appurtenant to
the mining property.
(4) (a) As used in this Subsection (4), "aircraft pricing guide" means a nationally
recognized publication that assigns value estimates for individual commercial aircraft that are:
(i) identified by year, make, and model; and
(ii) in average condition typical for the aircraft's type and vintage.
(b) (i) Except as provided in Subsection (4)(d), the commission shall use an aircraft
pricing guide, adjusted as provided in Subsection (4)(c), to determine the fair market value of
aircraft assessed under this part.
(ii) The commission shall use the Airliner Price Guide as the aircraft pricing guide,
except that:
(A) if the Airliner Price Guide is no longer published or the commission determines
that another aircraft pricing guide more reasonably reflects the fair market value of aircraft, the
commission, after consulting with the airlines operating in the state, shall select an alternative
aircraft pricing guide;
(B) if an aircraft is not listed in the Airliner Price Guide, the commission shall use the
Aircraft Bluebook Price Digest as the aircraft pricing guide; and
(C) if the Aircraft Bluebook Price Digest is no longer published or the commission
determines that another aircraft pricing guide more reasonably reflects the fair market value of
aircraft, the commission, after consulting with the airlines operating in the state, shall select an
alternative aircraft pricing guide.
(c) (i) To reflect the value of an aircraft fleet that is used as part of the operating
property of an airline, air charter service, or air contract service, the fair market value of the
aircraft shall include a fleet adjustment as provided in this Subsection (4)(c).
(ii) If the aircraft pricing guide provides a method for making a fleet adjustment, the
commission shall use the method described in the aircraft pricing guide.
(iii) If the aircraft pricing guide does not provide a method for making a fleet
adjustment, the commission shall make a fleet adjustment by reducing the aircraft pricing guide
value of each aircraft in the fleet by .5% for each aircraft over three aircraft up to a maximum
20% reduction.
(d) The commission may use an alternative method for valuing aircraft of an airline, air
charter service, or air contract service if the commission:
(i) has clear and convincing evidence that the aircraft values reflected in the aircraft
pricing guide do not reasonably reflect fair market value of the aircraft; and
(ii) cannot identify an alternative aircraft pricing guide from which the commission
may determine aircraft value.
(5) Immediately following the assessment, the commission shall send, by certified
mail, notice of the assessment to the owner or operator of the assessed property and the
assessor of the county in which the property is located.
(6) The commission may consult with a county in valuing property in accordance with
this part.
(7) The local county assessor shall separately assess property that is assessed by the
unitary method if the commission determines that the property:
(a) is not necessary to the conduct of the business; and
(b) does not contribute to the income of the business.
Section 5. Section 
59-2-306
 is amended to read:
59-2-306.
Statements by taxpayers -- Power of assessors respecting statements --
Reporting information to other counties, taxpayer.
(1) (a) [
The
] 
Except as provided in Subsection (1)(c), the
 county assessor may request
a signed statement from any person setting forth all the real and personal property assessable by
the assessor [
which is owned, possessed, managed, or under the control of the person
] 
that the
person owns, possesses, manages, or has under the person's control
 at 12 noon on January 1.
(b) A request under Subsection (1)(a) shall include a notice of the procedure under
Section 
59-2-1005
 for appealing the value of the personal property.
(c) A telecommunications service provider shall file a signed statement setting forth
the telecommunications service provider's:
(i) real property in accordance with this section; and
(ii) personal property in accordance with Section 
59-2-306.5
.
(d) A telecommunications service provider shall claim an exemption for personal
property in accordance with Section 
59-2-1115
.
(2) (a) Except as provided in Subsection (2)(b) or (c), a 
person shall file a
 signed
statement described in Subsection (1) [
shall be filed
] on or before May 15 of the year the
county assessor requests the
 statement described in Subsection (1) [
is requested by the county
assessor
].
(b) For a county of the first class, 
a person shall file
 the signed statement described in
Subsection (1) [
shall be filed
] on 
or before
 the later of:
(i) 60 days after [
requested by the assessor
] 
the day on which the county assessor
requests the statement
; or
(ii) [
on or before
] May 15 of the year the 
county assessor requests the
 statement
described in Subsection (1) [
is requested by the county assessor
] if, by resolution, the county
legislative body of that county adopts the deadline described in Subsection (2)(a).
(c) If a county assessor requests a signed statement described in Subsection (1) on or
after March 16, the person shall file the signed statement within 60 days after [
requested by the
assessor
] 
the day on which the county assessor requests the signed statement
.
(3) The signed statement shall include the following:
(a) all property belonging to, claimed by, or in the possession, control, or management
of the person, any firm of which the person is a member, or any corporation of which the
person is president, secretary, cashier, or managing agent;
(b) the county in which the property is located or in which [
it
] 
the property
 is taxable;
and, if taxable in the county in which the signed statement was made, also the city, town,
school district, road district, or other taxing district in which [
it
] 
the property
 is located or
taxable; and
(c) all lands in parcels or subdivisions not exceeding 640 acres each, the sections and
fractional sections of all tracts of land containing more than 640 acres [
which
] 
that
 have been
sectionized by the United States Government, and the improvements on those lands.
(4) Every 
county
 assessor may subpoena and examine any person in any county in
relation to any signed statement but may not require that person to appear in any county other
than the county in which the subpoena is served.
(5) (a) Except as provided in Subsection (5)(b), if the signed statement discloses
property in any other county, the county assessor shall file the signed statement and send a copy
to the county assessor of each county in which the property is located.
(b) If the signed statement discloses personal property of a telecommunications service
provider, the county assessor shall notify the telecommunications service provider of the
requirement to file a signed statement in accordance with Section 
59-2-306.5
.
Section 6. Section 
59-2-306.5
 is enacted to read:
 59-2-306.5.
Valuation of personal property of telecommunications service
provider -- Reporting information to counties.
(1) As used in this section, "Multicounty Appraisal Trust" means the same as that term
is defined in Section 
59-2-1601
.
(2) A telecommunications service provider shall provide to the Multicounty Appraisal
Trust a signed statement setting forth all of the personal property that the telecommunications
service provider owns, possesses, manages, or has under the telecommunications service
provider's control in the state.
(3) The signed statement shall:
(a) itemize each item of personal property that the telecommunications service provider
owns, possesses, manages, or has under the telecommunications service provider's control:
(i) by county; and
(ii) for the tax year that began on January 1; and
(b) be submitted:
(i) annually on or before May 15; and
(ii) electronically in a form approved by the commission.
(4) (a) The Multicounty Appraisal Trust shall value each item of personal property of a
telecommunications service provider according to the personal property valuation guides and
schedules established by the commission.
(b) A telecommunications service provider may appeal the valuation of personal
property in accordance with Section 
59-2-1005
.
(5) The Multicounty Appraisal Trust shall forward to each county information about
the total value of personal property of each telecommunications service provider within the
county.
(6) If a signed statement filed in accordance with this section discloses real property,
the Multicounty Appraisal Trust shall send a copy of the signed statement to the county in
which the property is located.
Section 7. Section 
59-2-307
 is amended to read:
59-2-307.
Refusal by taxpayer to file signed statement -- Estimation of value --
Penalty.
(1) (a) Each person [
who
] 
that
 fails to file the signed statement required by Section
59-2-306
or Section 
59-2-306.5
, fails to file the signed statement with respect to name and
place of residence, or fails to appear and testify when requested by the assessor, shall pay a
penalty equal to 10% of the estimated tax due, but not less than $25 for each failure to file a
signed and completed statement.
(b) The Multicounty Appraisal Trust shall notify the county assessor of a
telecommunications service provider's failure to file the signed statement.
[
(b)
] 
(c)
 [
Each
] 
The assessor shall collect each
 penalty under Subsection (1)(a) [
shall
be collected
] in the manner provided by Sections 
59-2-1302
 and 
59-2-1303
, except as
otherwise provided for in this section, or by a judicial proceeding brought in the name of the
assessor.
[
(c) All money recovered by any assessor under this section shall be paid into the
county treasury.
]
(d) The assessor shall pay all money recovered under this section into the county
treasury.
(2) (a) Upon a showing of reasonable cause, a county may waive or reduce a penalty
imposed under Subsection (1)(a).
(b) (i) Except as provided in Subsection (2)(b)(ii), a 
county assessor may impose a
penalty under Subsection (1)(a) [
may be imposed
] on or after May 16 of the year 
the county
assessor requests
 the statement described in Section 
59-2-306
 [
is requested by the county
assessor
] 
or is due under Section 
59-2-306.5
.
(ii) A 
county assessor may not impose a
 penalty under Subsection (1)(a) [
may not be
imposed
] until 30 days after the postmark date of mailing of a subsequent notice if the signed
statement described in Section 
59-2-306
 is requested:
(A) on or after March 16; or
(B) by a county assessor of a county of the first class.
(3) (a) If an owner neglects or refuses to file a signed statement requested by an
assessor as required under Section 
59-2-306
:
(i) the assessor shall:
(A) make a record of the failure to file; and
(B) make an estimate of the value of the property of the owner based on known facts
and circumstances; and
(ii) the assessor of a county of the first class:
(A) shall make a subsequent request by mail for the signed statement, informing the
owner of the consequences of not filing a signed statement; and
(B) may impose a fee for the actual and necessary expenses of the mailing under
Subsection (3)(a)(ii)(A).
(b) (i) If a telecommunications service provider neglects or refuses to file a signed
statement in accordance with Section 
59-2-306.5
, the Multicounty Appraisal Trust shall make:
(A) a record of the failure to file;
(B) a request by mail for the signed statement, informing the telecommunications
service provider of the consequences of not filing a signed statement; and
(C) an estimate of the value of the personal property of the telecommunications
service provider based on known facts and circumstances.
(ii) The Multicounty Appraisal Trust may impose a fee for the actual and necessary
expenses of the mailing under Subsection (3)(b)(i)(B).
(c) A county board of equalization or the commission may not reduce the value fixed
by the assessor in accordance with Subsection (3)(a)(i) or the Multicounty Appraisal Trust in
accordance with Subsection (3)(b)(i).
[
(b) The value fixed by the assessor in accordance with Subsection (3)(a)(i) may not be
reduced by the county board of equalization or by the commission.
]
[
(4) If the signed statement discloses property in any other county, the assessor shall
file the signed statement and send a copy to the assessor of each county in which the property is
located.
]
Section 8. Section 
59-2-308
 is amended to read:
59-2-308.
Assessment in name of representative -- Assessment of property of
decedents -- Assessment of property in litigation -- Assessment of personal property
valued by Multicounty Appraisal Trust.
(1) If a person is assessed as agent, trustee, bailee, guardian, executor, or administrator,
[
the
] 
a county shall:
(a) add the
 representative designation [
shall be added
] to the name[
,
]
;
 and [
the
assessment entered
]
(b) enter the assessment
 separately from the individual assessment.
(2) [
The
] 
A county may assess the
 undistributed or unpartitioned property of a
deceased [
person may be assessed
] 
individual
 to an heir, guardian, executor, or administrator,
and the payment of taxes binds all the parties in interest.
(3) Property in litigation
,
 which is in the possession of a court or receiver
,
 shall be
assessed to the court clerk or receiver, and the taxes shall be paid under the direction of the
court.
(4) A county shall add the valuation the Multicounty Appraisal Trust gives to personal
property of a telecommunications service provider to the valuation of any real property of the
telecommunications service provider within the county before making an assessment in
accordance with this part.
Section 9. Section 
59-2-924
 is amended to read:
59-2-924.
Definitions -- Report of valuation of property to county auditor and
commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax
rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
commission.
(1) As used in this section:
(a) (i) "Ad valorem property tax revenue" means revenue collected in accordance with
this chapter.
(ii) "Ad valorem property tax revenue" does not include:
(A) interest;
(B) penalties;
(C) collections from redemptions; or
(D) revenue received by a taxing entity from personal property that is semiconductor
manufacturing equipment assessed by a county assessor in accordance with Part 3, County
Assessment.
(b) "Adjusted tax increment" means the same as that term is defined in Section
17C-1-102
.
(c) (i) "Aggregate taxable value of all property taxed" means:
(A) the aggregate taxable value of all real property a county assessor assesses in
accordance with Part 3, County Assessment, for the current year;
(B) the aggregate taxable value of all real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for the current year; and
(C) the aggregate year end taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, contained on the prior year's tax rolls
of the taxing entity.
(ii) "Aggregate taxable value of all property taxed" does not include the aggregate year
end taxable value of personal property that is:
(A) semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment; and
(B) contained on the prior year's tax rolls of the taxing entity.
(d) "Base taxable value" means:
(i) for an authority created under Section 
11-58-201
, the same as that term is defined in
Section 
11-58-102
;
(ii) for an agency created under Section 
17C-1-201.5
, the same as that term is defined
in Section 
17C-1-102
;
(iii) for an authority created under Section 
63H-1-201
, the same as that term is defined
in Section 
63H-1-102
; or
(iv) for a host local government, the same as that term is defined in Section 
63N-2-502
.
(e) "Centrally assessed benchmark value" means an amount equal to the highest year
end taxable value of real and personal property the commission assesses in accordance with
Part 2, Assessment of Property, for a previous calendar year that begins on or after January 1,
2015, adjusted for taxable value attributable to:
(i) an annexation to a taxing entity; [
or
]
(ii) an incorrect allocation of taxable value of real or personal property the commission
assesses in accordance with Part 2, Assessment of Property[
.
]
; or
(iii) a change in value as a result of a change in the method of apportioning the value
prescribed by the Legislature, a court, or the commission in an administrative rule or
administrative order.
(f) (i) "Centrally assessed new growth" means the greater of:
(A) zero; or
(B) the amount calculated by subtracting the centrally assessed benchmark value
adjusted for prior year end incremental value from the taxable value of real and personal
property the commission assesses in accordance with Part 2, Assessment of Property, for the
current year, adjusted for current year incremental value.
(ii) "Centrally assessed new growth" does not include a change in value as a result of a
change in the method of apportioning the value prescribed by the Legislature, a court, or the
commission in an administrative rule or administrative order.
(g) "Certified tax rate" means a tax rate that will provide the same ad valorem property
tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
(h) "Community reinvestment agency" means the same as that term is defined in
Section 
17C-1-102
.
(i) "Eligible new growth" means the greater of:
(i) zero; or
(ii) the sum of:
(A) locally assessed new growth;
(B) centrally assessed new growth; and
(C) project area new growth or hotel property new growth.
(j) "Host local government" means the same as that term is defined in Section
63N-2-502
.
(k) "Hotel property" means the same as that term is defined in Section 
63N-2-502
.
(l) "Hotel property new growth" means an amount equal to the incremental value that
is no longer provided to a host local government as incremental property tax revenue.
(m) "Incremental property tax revenue" means the same as that term is defined in
Section 
63N-2-502
.
(n) "Incremental value" means:
(i) for an authority created under Section 
11-58-201
, the amount calculated by
multiplying:
(A) the difference between the taxable value and the base taxable value of the property
that is located within a project area and on which property tax differential is collected; and
(B) the number that represents the percentage of the property tax differential that is
paid to the authority;
(ii) for an agency created under Section 
17C-1-201.5
, the amount calculated by
multiplying:
(A) the difference between the taxable value and the base taxable value of the property
located within a project area and on which tax increment is collected; and
(B) the number that represents the adjusted tax increment from that project area that is
paid to the agency;
(iii) for an authority created under Section 
63H-1-201
, the amount calculated by
multiplying:
(A) the difference between the taxable value and the base taxable value of the property
located within a project area and on which property tax allocation is collected; and
(B) the number that represents the percentage of the property tax allocation from that
project area that is paid to the authority; or
(iv) for a host local government, an amount calculated by multiplying:
(A) the difference between the taxable value and the base taxable value of the hotel
property on which incremental property tax revenue is collected; and
(B) the number that represents the percentage of the incremental property tax revenue
from that hotel property that is paid to the host local government.
(o) (i) "Locally assessed new growth" means the greater of:
(A) zero; or
(B) the amount calculated by subtracting the year end taxable value of real property the
county assessor assesses in accordance with Part 3, County Assessment, for the previous year,
adjusted for prior year end incremental value from the taxable value of real property the county
assessor assesses in accordance with Part 3, County Assessment, for the current year, adjusted
for current year incremental value.
(ii) "Locally assessed new growth" does not include a change in:
(A) value as a result of factoring in accordance with Section 
59-2-704
, reappraisal, or
another adjustment;
(B) assessed value based on whether a property is allowed a residential exemption for a
primary residence under Section 
59-2-103
;
(C) assessed value based on whether a property is assessed under Part 5, Farmland
Assessment Act; or
(D) assessed value based on whether a property is assessed under Part 17, Urban
Farming Assessment Act.
(p) "Project area" means:
(i) for an authority created under Section 
11-58-201
, the same as that term is defined in
Section 
11-58-102
;
(ii) for an agency created under Section 
17C-1-201.5
, the same as that term is defined
in Section 
17C-1-102
; or
(iii) for an authority created under Section 
63H-1-201
, the same as that term is defined
in Section 
63H-1-102
.
(q) "Project area new growth" means:
(i) for an authority created under Section 
11-58-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax differential;
(ii) for an agency created under Section 
17C-1-201.5
, an amount equal to the
incremental value that is no longer provided to an agency as tax increment; or
(iii) for an authority created under Section 
63H-1-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax allocation.
(r) "Project area incremental revenue" means the same as that term is defined in
Section 
17C-1-1001
.
(s) "Property tax allocation" means the same as that term is defined in Section
63H-1-102
.
(t) "Property tax differential" means the same as that term is defined in Section
11-58-102
.
(u) "Qualifying exempt revenue" means revenue received:
(i) for the previous calendar year;
(ii) by a taxing entity;
(iii) from tangible personal property contained on the prior year's tax rolls that is
exempt from property tax under Subsection 
59-2-1115
(2)(b) for a calendar year beginning on
January 1, 2022; and
(iv) on the aggregate 2021 year end taxable value of the tangible personal property that
exceeds $15,300.
(v) "Tax increment" means the same as that term is defined in Section 
17C-1-102
.
(2) Before June 1 of each year, the county assessor of each county shall deliver to the
county auditor and the commission the following statements:
(a) a statement containing the aggregate valuation of all taxable real property a county
assessor assesses in accordance with Part 3, County Assessment, for each taxing entity; and
(b) a statement containing the taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, from the prior year end values.
(3) The county auditor shall, on or before June 8, transmit to the governing body of
each taxing entity:
(a) the statements described in Subsections (2)(a) and (b);
(b) an estimate of the revenue from personal property;
(c) the certified tax rate; and
(d) all forms necessary to submit a tax levy request.
(4) (a) Except as otherwise provided in this section, the certified tax rate shall be
calculated by dividing the ad valorem property tax revenue that a taxing entity budgeted for the
prior year minus the qualifying exempt revenue by the amount calculated under Subsection
(4)(b).
(b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall
calculate an amount as follows:
(i) calculate for the taxing entity the difference between:
(A) the aggregate taxable value of all property taxed; and
(B) any adjustments for current year incremental value;
(ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount
determined by increasing or decreasing the amount calculated under Subsection (4)(b)(i) by the
average of the percentage net change in the value of taxable property for the equalization
period for the three calendar years immediately preceding the current calendar year;
(iii) after making the calculation required by Subsection (4)(b)(ii), calculate the product
of:
(A) the amount calculated under Subsection (4)(b)(ii); and
(B) the percentage of property taxes collected for the five calendar years immediately
preceding the current calendar year; and
(iv) after making the calculation required by Subsection (4)(b)(iii), calculate an amount
determined by:
(A) multiplying the percentage of property taxes collected for the five calendar years
immediately preceding the current calendar year by eligible new growth; and
(B) subtracting the amount calculated under Subsection (4)(b)(iv)(A) from the amount
calculated under Subsection (4)(b)(iii).
(5) A certified tax rate for a taxing entity described in this Subsection (5) shall be
calculated as follows:
(a) except as provided in Subsection (5)(b) or (c), for a new taxing entity, the certified
tax rate is zero;
(b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
(i) in a county of the first, second, or third class, the levy imposed for municipal-type
services under Sections 
17-34-1
 and 
17-36-9
; and
(ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
purposes and such other levies imposed solely for the municipal-type services identified in
Section 
17-34-1
 and Subsection 
17-36-3
(23);
(c) for a community reinvestment agency that received all or a portion of a taxing
entity's project area incremental revenue in the prior year under Title 17C, Chapter 1, Part 10,
Agency Taxing Authority, the certified tax rate is calculated as described in Subsection (4)
except that the commission shall treat the total revenue transferred to the community
reinvestment agency as ad valorem property tax revenue that the taxing entity budgeted for the
prior year; and
(d) for debt service voted on by the public, the certified tax rate is the actual levy
imposed by that section, except that a certified tax rate for the following levies shall be
calculated in accordance with Section 
59-2-913
 and this section:
(i) a school levy provided for under Section 
53F-8-301
, 
53F-8-302
, or 
53F-8-303
; and
(ii) a levy to pay for the costs of state legislative mandates or judicial or administrative
orders under Section 
59-2-1602
.
(6) (a) A judgment levy imposed under Section 
59-2-1328
 or 
59-2-1330
 may be
imposed at a rate that is sufficient to generate only the revenue required to satisfy one or more
eligible judgments.
(b) The ad valorem property tax revenue generated by a judgment levy described in
Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate certified tax
rate.
(7) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:
(i) the taxable value of real property:
(A) the county assessor assesses in accordance with Part 3, County Assessment; and
(B) contained on the assessment roll;
(ii) the year end taxable value of personal property:
(A) a county assessor assesses in accordance with Part 3, County Assessment; and
(B) contained on the prior year's assessment roll; and
(iii) the taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property.
(b) For purposes of Subsection (7)(a), taxable value does not include eligible new
growth.
(8) (a) On or before June 30, a taxing entity shall annually adopt a tentative budget.
(b) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall
notify the county auditor of:
(i) the taxing entity's intent to exceed the certified tax rate; and
(ii) the amount by which the taxing entity proposes to exceed the certified tax rate.
(c) The county auditor shall notify property owners of any intent to levy a tax rate that
exceeds the certified tax rate in accordance with Sections 
59-2-919
 and 
59-2-919.1
.
(9) (a) Subject to Subsection (9)(d), the commission shall provide notice, through
electronic means on or before July 31, to a taxing entity and the Revenue and Taxation Interim
Committee if:
(i) the amount calculated under Subsection (9)(b) is 10% or more of the year end
taxable value of the real and personal property the commission assesses in accordance with
Part 2, Assessment of Property, for the previous year, adjusted for prior year end incremental
value; and
(ii) the amount calculated under Subsection (9)(c) is 50% or more of the total year end
taxable value of the real and personal property of a taxpayer the commission assesses in
accordance with Part 2, Assessment of Property, for the previous year.
(b) For purposes of Subsection (9)(a)(i), the commission shall calculate an amount by
subtracting the taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the current year, adjusted for current year
incremental value, from the year end taxable value of the real and personal property the
commission assesses in accordance with Part 2, Assessment of Property, for the previous year,
adjusted for prior year end incremental value.
(c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by
subtracting the total taxable value of real and personal property of a taxpayer the commission
assesses in accordance with Part 2, Assessment of Property, for the current year, from the total
year end taxable value of the real and personal property of a taxpayer the commission assesses
in accordance with Part 2, Assessment of Property, for the previous year.
(d) The notification under Subsection (9)(a) shall include a list of taxpayers that meet
the requirement under Subsection (9)(a)(ii).
Section 10. Section 
59-2-1005
 is amended to read:
59-2-1005.
Procedures for appeal of personal property valuation -- Time for
appeal -- Hearing -- Decision -- Appeal to commission.
(1)(a) A taxpayer owning personal property assessed by a county assessor under
Section 
59-2-301
 may make an appeal relating to the value of the personal property by filing an
application with the county legislative body no later than:
(i) the expiration of the time allowed under Section 
59-2-306
 for filing a signed
statement, if the county assessor requests a signed statement under Section 
59-2-306
or the
expiration of the time allowed under Section 
59-2-306.5
 if the taxpayer is a
telecommunications service provider
; or
(ii) 60 days after the mailing of the tax notice, for each other taxpayer.
(b) A county legislative body shall:
(i) after giving reasonable notice, hear an appeal filed under Subsection (1)(a); and
(ii) render a written decision on the appeal within 60 days after receiving the appeal.
(c) If the taxpayer is dissatisfied with a county legislative body decision under
Subsection (1)(b), the taxpayer may file an appeal with the commission in accordance with
Section 
59-2-1006
.
(2) A taxpayer owning personal property subject to a fee in lieu of tax or a uniform tax
under Article XIII, Section 2 of the Utah Constitution that is based on the value of the property
may appeal the basis of the value by filing an appeal with the commission within 30 days after
the mailing of the tax notice.
Section 11. Section 
59-2-1602
 is amended to read:
59-2-1602.
Property Tax Valuation Agency Fund -- Creation -- Statewide levy --
Additional county levy.
(1) (a) There is created an agency fund known as the "Property Tax Valuation Agency
Fund."
(b) The fund consists of:
(i) deposits made and penalties received under Subsection (3); and
(ii) interest on money deposited into the fund.
(c) Deposits, penalties, and interest described in Subsection (1)(b) shall be disbursed
and used as provided in Section 
59-2-1603
.
(2) (a) Each county shall annually impose a multicounty assessing and collecting levy
as provided in this Subsection (2).
(b) The tax rate of the multicounty assessing and collecting levy is:
(i) for a calendar year beginning on or after January 1, [
] 
, and before January
1, 2025, [
.000012
] 
.000015
; and
(ii) for a calendar year beginning on or after January 1, 2025, the certified revenue levy.
(c) The state treasurer shall allocate revenue collected from the multicounty assessing
and collecting levy as follows:
(i) 18% of the revenue collected shall be deposited into the Property Tax Valuation
Agency Fund, up to $500,000 annually; and
(ii) after the deposit described in Subsection (2)(c)(i), all remaining revenue collected
from the multicounty assessing and collecting levy shall be deposited into the Multicounty
Appraisal Trust.
(3) (a) The multicounty assessing and collecting levy imposed under Subsection (2)
shall be separately stated on the tax notice as a multicounty assessing and collecting levy.
(b) The multicounty assessing and collecting levy is:
(i) exempt from Sections 
17C-1-403
 through 
17C-1-406
;
(ii) in addition to and exempt from the maximum levies allowable under Section
59-2-908
; and
(iii) exempt from the notice and public hearing requirements of Section 
59-2-919
.
(c) (i) Each county shall transmit quarterly to the state treasurer the revenue collected
from the multicounty assessing and collecting levy.
(ii) The revenue transmitted under Subsection (3)(c)(i) shall be transmitted no later
than the tenth day of the month following the end of the quarter in which the revenue is
collected.
(iii) If revenue transmitted under Subsection (3)(c)(i) is transmitted after the tenth day
of the month following the end of the quarter in which the revenue is collected, the county shall
pay an interest penalty at the rate of 10% each year until the revenue is transmitted.
(d) The state treasurer shall allocate the penalties received under this Subsection (3) in
the same manner as revenue is allocated under Subsection (2)(c).
(4) (a) A county may levy a county additional property tax in accordance with this
Subsection (4).
(b) The county additional property tax:
(i) shall be separately stated on the tax notice as a county assessing and collecting levy;
(ii) may not be incorporated into the rate of any other levy;
(iii) is exempt from Sections 
17C-1-403
 through 
17C-1-406
; and
(iv) is in addition to and exempt from the maximum levies allowable under Section
59-2-908
.
(c) Revenue collected from the county additional property tax shall be used to:
(i) promote the accurate valuation and uniform assessment levels of property as
required by Section 
59-2-103
;
(ii) promote the efficient administration of the property tax system, including the costs
of assessment, collection, and distribution of property taxes;
(iii) fund state mandated actions to meet legislative mandates or judicial or
administrative orders that relate to promoting:
(A) the accurate valuation of property; and
(B) the establishment and maintenance of uniform assessment levels within and among
counties; and
(iv) establish reappraisal programs that:
(A) are adopted by a resolution or ordinance of the county legislative body; and
(B) conform to rules the commission makes in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act.
Section 12. 
Effective date.
(1) Except as provided in Subsection (2), and 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.
(2) The changes to the following sections take effect on January 1, 2023:
(a) Section 
11-13-302
;
(b) Section 
59-2-102
;
(c) Section 
59-2-201
;
(d) Section 
59-2-306
;
(e) Section 
59-2-306.5
;
(f) Section 
59-2-307
;
(g) Section 
59-2-308
;
(h) Section 
59-2-924
; and
(i) Section 
59-2-1005
.
Section 13. 
Retrospective operation.
The changes to Sections 
59-2-103.5
 and 
59-2-1602
 have retrospective operation to
January 1, 2022.