Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 61 First Substitute (2022GS)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 3/23/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• provides when the state, a governmental entity, or a local agency acting on behalf of a political subdivision may collect a delinquent property tax from the debtor's overpayment or refund of income tax; and
• provides the order in which a debtor's income tax overpayment or refund shall be credited against a delinquent property tax.

Every vote on this bill

Bill text

DELINQUENT PROPERTY TAX COLLECTION AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
Steve Eliason
LONG TITLE
General Description:
This bill modifies provisions related to collection of delinquent property tax.
Highlighted Provisions:
This bill:
▸ provides when the state, a governmental entity, or a local agency acting on behalf of
a political subdivision may collect a delinquent property tax from the debtor's
overpayment or refund of income tax; and
▸ provides the order in which a debtor's income tax overpayment or refund shall be
credited against a delinquent property tax.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
59-2-1346
, as last amended by Laws of Utah 2018, Chapters 197 and 281
63A-3-302
, as last amended by Laws of Utah 2021, Chapter 49
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-2-1346
 is amended to read:
59-2-1346.
Redemption -- Time allowed.
(1) Property may be redeemed on behalf of the record owner by any person at any time
before the tax sale which shall be held in May or June as provided in Section 
59-2-1351
following the lapse of four years from the date the property tax or tax notice charges became
delinquent.
(2) A person may redeem property by paying to the county treasurer all delinquent
taxes, tax notice charges, interest, penalties, and administrative costs that have accrued on the
property.
(3) (a) Subject to Subsection (3)(d), a person may redeem a subdivided lot by paying
the county treasurer the subdivided lot's proportional share of the delinquent taxes, tax notice
charges, interest, penalties, and administrative costs accrued on the base parcel, calculated in
accordance with Subsection (3)(b).
(b) The county treasurer shall calculate the amount described in Subsection (3)(a) by
comparing:
(i) the amount of the value of the base parcel as described in Subsection (3)(b)(ii) that
is attributable to the property that comprises the subdivided lot as the property existed on
January 1 of the year in which the delinquent property taxes on the base parcel were assessed or
tax notice charges on the base parcel were listed; and
(ii) the value of the base parcel as it existed on January 1 of the year in which the
delinquent property taxes on the base parcel were assessed or tax notice charges on the base
parcel were listed.
(c) If the county treasurer does not have sufficient information to calculate the amount
described in Subsection (3)(b)(i), upon request from the county treasurer, the county assessor
shall provide the county treasurer any information necessary to calculate the amount described
in Subsection (3)(b)(i).
(d) A person may redeem a subdivided lot under this Subsection (3) only if the record
owner of the subdivided lot is a bona fide purchaser.
(4) (a) At any time before the expiration of the period of redemption
,
 the county
treasurer shall accept and credit on account for the redemption of property, payments in
amounts of not less than $10, except for the final payment, which may be in any amount.
(b) For the purpose of computing the amount required for redemption and for the
purpose of distributing the payments received on account, all payments
, except payments
described in Subsection (4)(c),
 shall be applied in the following order:
(i) against the interest and administrative costs accrued on the delinquent tax for the
last year included in the delinquent account at the time of payment;
(ii) against the penalty charged on the delinquent tax for the last year included in the
delinquent account at the time of payment;
(iii) against the delinquent tax for the last year included in the delinquent account at the
time of payment;
(iv) against the interest and administrative costs accrued on the delinquent tax for the
next to last year included in the delinquent account at the time of payment; and
(v) so on until the full amount of the delinquent taxes, tax notice charges, penalties,
administrative costs, and interest on the unpaid balances are paid within the period of
redemption.
(c) For a payment received through a levy on an income tax overpayment or refund in
accordance with Title 63A, Chapter 3, Part 3, Accounts Receivable Collection, the payment
shall be applied in the following order:
(i) against the penalty charged on the delinquent tax for the earliest year included in the
delinquent account at the time of payment;
(ii) against the interest and administrative costs accrued on the delinquent tax for the
earliest year included in the delinquent account at the time of payment;
(iii) against the delinquent tax for the earliest year included in the delinquent account at
the time of payment;
(iv) against the penalty charged on the delinquent tax for the next earliest year included
in the delinquent account at the time of payment; and
(v) so on until:
(A) the full amount of the delinquent taxes, tax notice charges, penalties,
administrative costs, and interest on the unpaid balances are paid; or
(B) the amount of the income tax overpayment or refund is exhausted.
Section 2. Section 
63A-3-302
 is amended to read:
63A-3-302.
Unpaid accounts receivable -- Political subdivision agreement with
local agency.
(1) (a) Except as provided in [
Subsection
] 
Subsections
 (1)(b) 
and (c)
, if any account
receivable at any point has been unpaid for 90 days or more, any agency or other authority of
the state, or any political subdivision responsible for collection of the account may proceed
under this part to collect the delinquent amount.
(b) A governmental entity within the state that is a health care provider may not
proceed under this part when the account receivable is for a medical material or service and the
debtor:
(i) has made a payment arrangement with the health care provider; and
(ii) is current on payments under the payment arrangement.
(c) The state, a governmental entity within the state, or a local agency acting on behalf
of a political subdivision within the state may proceed under this part on an account receivable
that is for a property tax imposed under Title 59, Chapter 2, Property Tax Act, only if the
account receivable is three or more years delinquent.
(2) (a) A political subdivision may enter into an agreement with a local agency under
which the local agency, for a reasonable fee that the political subdivision and local agency
agree upon, prepares and submits the political subdivision's accounts receivable for collection
as provided in this part.
(b) Notwithstanding an agreement under Subsection (2)(a), a participating political
subdivision shall:
(i) establish an agreement with the division for submitting delinquent accounts
receivable under this part; and
(ii) with respect to the accounts receivable that the participating political subdivision
submits through a local agency for collection under this part:
(A) receive and respond to an administrative hearing requested under Section
63A-3-305
; and
(B) administer an adjudicative proceeding required under Section 
63A-3-306
.