Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 25 Second Substitute (2022GS)

Sponsor

Sen. Fillmore, L.

Final action

Governor Signed 3/23/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• addresses property tax deferral for certain owners of a single-family residence;
• modifies the interest rate that applies to deferred property taxes;
• clarifies the required contents of an application for a deferral;
• directs the State Tax Commission to reimburse a requesting county for the amount of any property taxes that the county defers during a specified time period;
• addresses repayment of any money a county receives; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

PROPERTY TAX DEFERRAL AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: 
Robert M. Spendlove
LONG TITLE
General Description:
This bill modifies the deferral provisions of the Property Tax Act.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ addresses property tax deferral for certain owners of a single-family residence;
▸ modifies the interest rate that applies to deferred property taxes;
▸ clarifies the required contents of an application for a deferral;
▸ directs the State Tax Commission to reimburse a requesting county for the amount
of any property taxes that the county defers during a specified time period;
▸ addresses repayment of any money a county receives; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
This bill appropriates in fiscal year 2023:
▸ to the Utah State Tax Commission -- Tax Administration -- Property Tax Deferral,
as a one-time appropriation:
• from the General Fund $8,000,000.
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-2-1801
, as enacted by Laws of Utah 2019, Chapter 453
59-2-1802
, as enacted by Laws of Utah 2019, Chapter 453
59-2-1804
, as enacted by Laws of Utah 2019, Chapter 453
63I-2-263
, as last amended by Laws of Utah 2021, First Special Session, Chapter 4
63J-1-602.2
, as last amended by Laws of Utah 2021, Chapters 179, 344, 412, 421, and
424
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-2-1801
 is amended to read:
59-2-1801.
Definitions.
As used in this part:
(1) "Abatement" means a tax abatement described in Section 
59-2-1803
.
(2) "Deferral" means a tax deferral described in Section 
59-2-1802
.
(3) "Eligible owner" means an owner of an attached or a detached single-family
residence:
(a) who is 75 years old or older on or before December 31 of the year in which the
individual applies for a deferral under this part;
(b) whose household income does not exceed 200% of the maximum household
income certified to a homeowner's credit described in Section 
59-2-1208
; and
(c) whose household liquid resources do not exceed 20 times the amount of property
taxes levied on the owner's residence for the preceding calendar year.
(4) "Household" means the same as that term is defined in Section 
59-2-1202
.
(5) "Household income" means the same as that term is defined in Section 
59-2-1202
.
(6) "Household liquid resources" means the following resources that are not included
in an individual's household income and held by one or more members of the individual's
household:
(a) cash on hand;
(b) money in a checking or savings account;
(c) savings certificates;
(d) stocks or bonds; and
(e) lump sum payments.
[
(3)
] 
(7)
 "Indigent individual" is a poor individual as described in Utah Constitution,
Article XIII, Section 3, Subsection (4), who:
(a) (i) is at least 65 years old; or
(ii) is less than 65 years old and:
(A) the county finds that extreme hardship would prevail on the individual if the
county does not defer or abate the individual's taxes; or
(B) the individual has a disability;
(b) has a total household income, as defined in Section 
59-2-1202
, of less than the
maximum household income certified to a homeowner's credit described in [
Subsection
59-2-1208
(1)
] 
Section 
59-2-1208
;
(c) resides for at least 10 months of the year in the residence that would be subject to
the requested abatement or deferral; and
(d) cannot pay the tax assessed on the individual's residence when the tax becomes due.
[
(4)
] 
(8)
 "Property taxes due" means the taxes due on an indigent individual's property:
(a) for which a county granted an abatement under Section 
59-2-1803
; and
(b) for the calendar year for which the county grants the abatement.
[
(5)
] 
(9)
 "Property taxes paid" means an amount equal to the sum of:
(a) the amount of property taxes the indigent individual paid for the taxable year for
which the indigent individual applied for the abatement; and
(b) the amount of the abatement the county grants under Section 
59-2-1803
.
[
(6)
] 
(10)
 "Relative" means a spouse, child, parent, grandparent, grandchild, brother,
sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or a
spouse of any of these individuals.
[
(7)
] 
(11)
 "Residence" means real property where an individual resides, including:
(a) a mobile home, as defined in Section 
41-1a-102
; or
(b) a manufactured home, as defined in Section 
41-1a-102
.
Section 2. 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, if the conditions described in Subsection (4) are
satisfied, a county:
(a) on or after January 1, 2022, may defer a tax on an attached single-family residence
or a detached single-family residence; or
(b) on or after January 1, 2025, shall defer a tax on an attached single-family residence
or a detached single-family residence.
(4) The conditions described in Subsection (3) are as follows:
(a) the owner of the single-family residence is:
(i) an eligible owner; or
(ii) a trust described in Section 
59-2-1805
 for which the grantor is an eligible owner;
(b) the single-family residence was the eligible owner's primary residence as of January
of the year for which the eligible owner applies for a deferral;
(c) (i) subject to Subsection (5), the value of the single-family residence for the year for
which the eligible owner applies for a deferral is no greater than 100% of the median property
value of attached and detached single-family residences within the county; or
(ii) the eligible owner has owned the single-family residence for a continuous 20 year
period as of January 1 of the year for which the eligible owner applies for a deferral; and
(d) the holder of each mortgage or trust deed outstanding on the single-family
residence gives written approval of the deferral.
(5) The values described in Subsection (4)(c) are based on the county assessment roll
for the county in which the single-family residence is located.
(6) For purposes of Subsection (4)(c)(ii), if a single-family residence is transferred
between an eligible owner and a trust described in Section 
59-2-1805
, ownership is considered
continuous if the eligible owner is the grantor of the trust.
[
(3)
] 
(7)
 Taxes deferred by the county accumulate with interest as a lien against the
residential property, as described in Subsection [
(4)
] 
(8)
, until the owner sells or otherwise
disposes of the residential property.
[
(4)
] 
(8)
 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
]
(a) bear interest at an interest rate equal to 50% of the rate described in Subsections
59-2-1331
(2)(c) and (d); and
(b) have the same status as a lien as described in Sections 
59-2-1301
 and 
59-2-1325
.
[
(5)
] 
(9)
 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.
(10) (a) Upon written application from a county in a form prescribed by the
commission, the commission shall reimburse the county for the amount of any tax that the
county defers in accordance with Subsections (3) through (6).
(b) The commission may not reimburse a county for:
(i) an amount of a tax before the county grants the eligible owner a deferral of the tax;
or
(ii) a tax assessed after December 31, 2026.
(11) A county that receives money in accordance with this section for a deferred tax
shall:
(a) distribute the money to the taxing entities in the same proportion the county would
have distributed the revenue from the deferred tax; and
(b) repay the money:
(i) in an amount equal to the amount necessary to satisfy the lien described in
Subsection (7) as of the earlier of:
(A) the day on which the county repays the money; or
(B) the day on which the lien described in Subsection (7) is satisfied; and
(ii) no later than June 30 of the calendar year immediately following the calendar year
in which the lien described in Subsection (7) is satisfied.
(12) The commission shall deposit money received under this section into the General
Fund.
Section 3. 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 
annually
 file 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;
(ii) proof of age; and
(iii) proof of household income.
(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 4. Section 
63I-2-263
 is amended to read:
63I-2-263.
Repeal dates, Title 63A to Title 63N.
(1) Section 
63A-3-111
 is repealed June 30, 2021.
(2) Title 63C, Chapter 19, Higher Education Strategic Planning Commission is
repealed July 1, 2021.
(3) Title 63C, Chapter 22, Digital Wellness, Citizenship, and Safe Technology
Commission is repealed July 1, 2023.
(4) Section 
63G-1-502
 is repealed July 1, 2022.
(5) The following sections regarding the World War II Memorial Commission are
repealed on July 1, 2022:
(a) Section 
63G-1-801
;
(b) Section 
63G-1-802
;
(c) Section 
63G-1-803
; and
(d) Section 
63G-1-804
.
(6) Section 
63H-7a-303
 is repealed July 1, 2024.
(7) 
Subsection 
63J-1-206
(3)(c), relating to coronavirus, is repealed July 1, 2021.
(8) Subsection 
63J-1-602.2
(42), which lists appropriations to the State Tax
Commission for property tax deferral reimbursements, is repealed July 1, 2027.
[
(8)
] 
(9)
 Sections 
63M-7-213
 and 
63M-7-213.5
 are repealed on January 1, 2023.
[
(9)
] 
(10)
 Section 
63M-7-217
 is repealed on July 1, 2022.
[
(10)
] 
(11)
 Title 63N, Chapter 13, Part 3, Facilitating Public-private Partnerships Act,
is repealed January 1, 2024.
[
(11)
] 
(12)
 Title 63N, Chapter 15, COVID-19 Economic Recovery Programs, is
repealed December 31, 2021.
Section 5. Section 
63J-1-602.2
 is amended to read:
63J-1-602.2.
List of nonlapsing appropriations to programs.
Appropriations made to the following programs are nonlapsing:
(1) The Legislature and the Legislature's committees.
(2) The State Board of Education, including all appropriations to agencies, line items,
and programs under the jurisdiction of the State Board of Education, in accordance with
Section 
53F-9-103
.
(3) The Percent-for-Art Program created in Section 
9-6-404
.
(4) The LeRay McAllister Critical Land Conservation Program created in Section
11-38-301
.
(5) Dedicated credits accrued to the Utah Marriage Commission as provided under
Subsection 
17-16-21
(2)(d)(ii).
(6) The Trip Reduction Program created in Section 
19-2a-104
.
(7) The Division of Wildlife Resources for the appraisal and purchase of lands under
the Pelican Management Act, as provided in Section 
23-21a-6
.
(8) The [
emergency medical services grant program
] 
Emergency Medical Services
Grant Program
 in Section 
26-8a-207
.
(9) The primary care grant program created in Section 
26-10b-102
.
(10) Sanctions collected as dedicated credits from Medicaid [
provider
] 
providers
 under
Subsection 
26-18-3
(7).
(11) The Utah Health Care Workforce Financial Assistance Program created in Section
26-46-102
.
(12) The Rural Physician Loan Repayment Program created in Section 
26-46a-103
.
(13) The Opiate Overdose Outreach Pilot Program created in Section 
26-55-107
.
(14) Funds that the Department of Alcoholic Beverage Control retains in accordance
with Subsection 
32B-2-301
(9)(a) or (b).
(15) The General Assistance program administered by the Department of Workforce
Services, as provided in Section 
35A-3-401
.
(16) The Utah National Guard, created in Title 39, Militia and Armories.
(17) The State Tax Commission under Section 
41-1a-1201
 for the:
(a) purchase and distribution of license plates and decals; and
(b) administration and enforcement of motor vehicle registration requirements.
(18) The Search and Rescue Financial Assistance Program, as provided in Section
53-2a-1102
.
(19) The Motorcycle Rider Education Program, as provided in Section 
53-3-905
.
(20) The Utah Board of Higher Education for teacher preparation programs, as
provided in Section 
53B-6-104
.
(21) The Medical Education Program administered by the Medical Education Council,
as provided in Section 
53B-24-202
.
(22) The Division of Services for People with Disabilities, as provided in Section
62A-5-102
.
(23) The Division of Fleet Operations for the purpose of upgrading underground
storage tanks under Section 
63A-9-401
.
(24) The Utah Seismic Safety Commission, as provided in Section 
63C-6-104
.
(25) [
Appropriations to the
] 
The
 Division of Technology Services for technology
innovation as provided under Section 
63A-16-903
.
(26) The Office of Administrative Rules for publishing, as provided in Section
63G-3-402
.
(27) The Colorado River Authority of Utah, created in Title 63M, Chapter 14,
Colorado River Authority of Utah Act.
(28) The Governor's Office of Economic Opportunity to fund the Enterprise Zone Act,
as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
(29) [
Appropriations to fund the
] 
The
 Governor's Office of Economic Opportunity's
Rural Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural
Employment Expansion Program.
(30) [
Appropriations to fund programs
] 
Programs
 for the Jordan River Recreation Area
as described in Section 
65A-2-8
.
(31) The Division of Human Resource Management user training program, as provided
in Section 
63A-17-106
.
(32) A public safety answering point's emergency telecommunications service fund, as
provided in Section 
69-2-301
.
(33) The Traffic Noise Abatement Program created in Section 
72-6-112
.
(34) The money appropriated from the Navajo Water Rights Negotiation Account to
the Division of Water Rights, created in Section 
73-2-1.1
, for purposes of participating in a
settlement of federal reserved water right claims.
(35) The Judicial Council for compensation for special prosecutors, as provided in
Section 
77-10a-19
.
(36) A state rehabilitative employment program, as provided in Section 
78A-6-210
.
(37) The Utah Geological Survey, as provided in Section 
79-3-401
.
(38) The Bonneville Shoreline Trail Program created under Section 
79-5-503
.
(39) Adoption document access as provided in Sections 
78B-6-141
, 
78B-6-144
, and
78B-6-144.5
.
(40) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent
Defense Commission.
(41) The program established by the Division of Facilities Construction and
Management under Section 
63A-5b-703
 under which state agencies receive an appropriation
and pay lease payments for the use and occupancy of buildings owned by the Division of
Facilities Construction and Management.
(42) The State Tax Commission for reimbursing counties for deferred property taxes in
accordance with Section 
59-2-1802
.
Section 6. 
Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1,
2022, and ending June 30, 2023. These are additions to amounts previously appropriated for
fiscal year 2023. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
Act, the Legislature appropriates the following sums of money from the funds or accounts
indicated for the use and support of the government of the state of Utah.
ITEM 1
To Utah State Tax Commission -- Tax Administration
From General Fund, One-time
$8,000,000
Schedule of Programs:
Property Tax Deferral $8,000,000
The Legislature intends that:
(1) appropriations provided under this section be used to reimburse counties for
deferred property taxes in accordance with Section 
59-2-1802
; and
(2) under Section 
63J-1-603
, appropriations provided under this section not lapse at the
close of fiscal year 2023 and the use of any nonlapsing funds is limited to reimbursing counties
for deferred property taxes in accordance with Section 
59-2-1802
.
Section 7. 
Retrospective operation.
This bill has retrospective operation to January 1, 2022.