Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 397 (2023GS)

Sponsor

Rep. Kohler, M.

Final action

Governor Signed 3/14/2023

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• provides that a portion of land withdrawn from assessment under the Farmland Assessment Act is not subject to a rollback tax if the land is eligible for, and the owner applies for, assessment under the Urban Farming Assessment Act;
• establishes a renewal application under the Urban Farming Assessment Act;
• for property that was previously assessed under the Farmland Assessment Act, addresses eligibility and application of the rollback tax under the Urban Farming Assessment Act; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

URBAN FARMING ASSESSMENT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Michael L. Kohler
Senate Sponsor: 
David P. Hinkins
LONG TITLE
General Description:
This bill modifies provisions relating to property tax assessment of agricultural land.
Highlighted Provisions:
This bill:
▸ provides that a portion of land withdrawn from assessment under the Farmland
Assessment Act is not subject to a rollback tax if the land is eligible for, and the
owner applies for, assessment under the Urban Farming Assessment Act;
▸ establishes a renewal application under the Urban Farming Assessment Act;
▸ for property that was previously assessed under the Farmland Assessment Act,
addresses eligibility and application of the rollback tax under the Urban Farming
Assessment Act; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-2-506
, as last amended by Laws of Utah 2017, Chapter 319
59-2-1703
, as last amended by Laws of Utah 2019, Chapter 492
59-2-1705
, as last amended by Laws of Utah 2017, Chapter 319
59-2-1707
, as last amended by Laws of Utah 2017, Chapter 319
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-2-506
 is amended to read:
59-2-506.
Rollback tax -- Penalty -- Computation of tax -- Procedure -- Lien --
Interest -- Notice -- Collection -- Distribution.
(1) Except as provided in this section, Section 
59-2-506.5
, or Section 
59-2-511
, if land
is withdrawn from this part, the land is subject to a rollback tax imposed in accordance with
this section.
(2) (a) An owner shall notify the county assessor that land is withdrawn from this part
within 120 days after the day on which the land is withdrawn from this part.
(b) An owner that fails to notify the county assessor under Subsection (2)(a) that land is
withdrawn from this part is subject to a penalty equal to the greater of:
(i) $10; or
(ii) 2% of the rollback tax due for the last year of the rollback period.
(3) (a) The county assessor shall determine the amount of the rollback tax by
computing the difference for the rollback period described in Subsection (3)(b) between:
(i) the tax paid while the land was assessed under this part; and
(ii) the tax that would have been paid had the property not been assessed under this
part.
(b) For purposes of this section, the rollback period is a time period that:
(i) begins on the later of:
(A) the date the land is first assessed under this part; or
(B) five years preceding the day on which the county assessor mails the notice required
by Subsection (5); and
(ii) ends the day on which the county assessor mails the notice required by Subsection
(5).
(4) (a) The county treasurer shall:
(i) collect the rollback tax; and
(ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
on the property has been satisfied by:
(A) preparing a document that certifies that the rollback tax lien on the property has
been satisfied; and
(B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
for recordation.
(b) The county treasurer shall pay the rollback tax collected under this section:
(i) into the county treasury; and
(ii) to the various taxing entities pro rata in accordance with the property tax levies for
the current year.
(5) (a) The county assessor shall mail to an owner of the land that is subject to a
rollback tax a notice that:
(i) the land is withdrawn from this part;
(ii) the land is subject to a rollback tax under this section; and
(iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
30 days after the day on which the county assessor mails the notice described in this Subsection
(5)(a).
(b) (i) The rollback tax is due and payable on the day the county assessor mails the
notice required by Subsection (5)(a).
(ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
the county assessor mails the notice required by Subsection (5)(a).
(6) (a) Subject to Subsection (6)(b), the following are a lien on the land assessed under
this part:
(i) the rollback tax; and
(ii) interest imposed in accordance with Subsection (7).
(b) The lien described in Subsection (6)(a) shall:
(i) arise upon the imposition of the rollback tax under this section;
(ii) end on the day on which the rollback tax and interest imposed in accordance with
Subsection (7) are paid in full; and
(iii) relate back to the first day of the rollback period described in Subsection (3)(b).
(7) (a) A delinquent rollback tax under this section shall accrue interest:
(i) from the date of delinquency until paid; and
(ii) at the interest rate established under Section 
59-2-1331
 and in effect on January 1
of the year in which the delinquency occurs.
(b) The county treasurer shall include in the notice required by Section 
59-2-1317
 a
rollback tax that is delinquent on September 1 of any year and interest calculated on that
delinquent amount through November 30 of the year in which the county treasurer provides the
notice under Section 
59-2-1317
.
(8) (a) Land that becomes ineligible for assessment under this part only as a result of an
amendment to this part is not subject to the rollback tax if the owner of the land notifies the
county assessor, in accordance with Subsection (2), that the land is withdrawn from this part.
(b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
an event other than an amendment to this part, whether voluntary or involuntary, is subject to
the rollback tax.
(9) Except as provided in Section 
59-2-511
, land that becomes exempt from taxation
under Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land
meets the requirements of Section 
59-2-503
 to be assessed under this part.
(10) Land that becomes ineligible for assessment under this part only as a result of a
split estate mineral rights owner exercising the right to extract a mineral is not subject to the
rollback tax:
(a) (i) for the portion of the land required by a split estate mineral rights owner to
extract a mineral if, after the split estate mineral rights owner exercises the right to extract a
mineral, the portion of the property that remains in agricultural production still meets the
acreage requirements of Section 
59-2-503
 for assessment under this part; or
(ii) for the entire acreage that would otherwise qualify for assessment under this part if,
after the split estate mineral rights owner exercises the right to extract a mineral, the entire
acreage that would otherwise qualify for assessment under this part no longer meets the acreage
requirements of Section 
59-2-503
 for assessment under this part only due to the extraction of
the mineral by the split estate mineral rights owner; and
(b) for the period of time that the property described in Subsection (10)(a) is ineligible
for assessment under this part due to the extraction of a mineral by the split estate mineral
rights owner.
(11) (a) A portion of land withdrawn from this part is not subject to the rollback tax if
the portion of land:
(i) qualifies for assessment under Part 17, Urban Farming Assessment Act; and
(ii) for the tax year immediately following withdrawal, the owner of the portion of land
applies in accordance with Section 
59-2-1707
 for the land to be assessed under Part 17, Urban
Farming Assessment Act.
(b) Any remaining portion of the withdrawn land that does not satisfy the requirements
of Subsection (11)(a) is subject to the rollback tax.
Section 2. Section 
59-2-1703
 is amended to read:
59-2-1703.
Qualifications for urban farming assessment.
(1) (a) For general property tax purposes, land may be assessed on the basis of the
value that the land has for agricultural use if the land:
(i) is actively devoted to urban farming;
(ii) is at least one contiguous acre, but less than five acres, in size; and
(iii) 
(A)
 has been actively devoted to urban farming for at least two successive years
immediately preceding the tax year for which the land is assessed under this part[
.
]
; or
(B) was assessed under Part 5, Farmland Assessment Act, for the preceding tax year.
(b) Land that is not actively devoted to urban farming may not be assessed as provided
in Subsection (1)(a), even if the land is part of a parcel that includes land actively devoted to
urban farming.
(2) (a) In determining whether land is actively devoted to urban farming, production
per acre for a given county or area and a given type of land shall be determined by using the
first applicable of the following:
(i) production levels reported in the current publication of Utah Agricultural Statistics;
(ii) current crop budgets developed and published by Utah State University; or
(iii) the highest per acre value used for land assessed under the Farmland Assessment
Act for the county in which the property is located.
(b) A county assessor may not assess land actively devoted to urban farming on the
basis of the value that the land has for agricultural use under this part unless an owner annually
files documentation with the county assessor:
(i) on a form provided by the county assessor;
(ii) demonstrating to the satisfaction of the county assessor that the land meets the
production levels required under this part; and
(iii) except as provided in Subsection 
59-2-1707
(2)(c)(i), no later than January 30 for
each tax year in which the owner applies for assessment under this part.
(3) Notwithstanding Subsection (1)(a)(ii), a county board of equalization may grant a
waiver of the acreage requirements of Subsection (1)(a)(ii):
(a) on appeal by an owner; and
(b) if the owner submits documentation to the county assessor demonstrating to the
satisfaction of the county assessor that:
(i) the failure to meet the acreage requirements of Subsection (1)(a)(ii) arose solely as a
result of an acquisition by a governmental entity by:
(A) eminent domain; or
(B) the threat or imminence of an eminent domain proceeding;
(ii) the land is actively devoted to urban farming; and
(iii) no change occurs in the ownership of the land.
Section 3. Section 
59-2-1705
 is amended to read:
59-2-1705.
Rollback tax -- Penalty -- Computation of tax -- Procedure -- Lien --
Interest -- Notice -- Collection -- Distribution.
(1) Except as provided in this section or Section 
59-2-1710
, land that is withdrawn
from this part is subject to a rollback tax imposed as provided in this section.
(2) (a) An owner shall notify the county assessor that land is withdrawn from this part
within 120 days after the day on which the land is withdrawn from this part.
(b) An owner who fails to notify the county assessor under Subsection (2)(a) that land
is withdrawn from this part is subject to a penalty equal to the greater of:
(i) $10; or
(ii) 2% of the rollback tax due for the last year of the rollback period.
(3) (a) The county assessor shall determine the amount of the rollback tax by
computing the difference for the rollback period described in Subsection (3)(b) between:
(i) the tax paid while the land was assessed under this part; and
(ii) the tax that would have been paid had the property not been assessed under this
part.
(b) For purposes of this section, the rollback period is a time period that:
(i) begins on the later of:
(A) 
except as provided in Subsection (3)(c),
 the date the land is first assessed under
this part; or
(B) five years preceding the day on which the county assessor mails the notice required
by Subsection (5); and
(ii) ends the day on which the county assessor mails the notice required by Subsection
(5).
(c) For land that was previously assessed under Part 5, Farmland Assessment Act, the
date described in Subsection (3)(b)(i)(A) is the date the land was first assessed under Part 5,
Farmland Assessment Act, unless the land was subject to a rollback tax imposed under Section
59-2-506
.
(4) (a) The county treasurer shall:
(i) collect the rollback tax; and
(ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
on the property has been satisfied by:
(A) preparing a document that certifies that the rollback tax lien on the property has
been satisfied; and
(B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
for recording.
(b) The county treasurer shall pay the rollback tax collected under this section:
(i) into the county treasury; and
(ii) to the various taxing entities pro rata in accordance with the property tax levies for
the current year.
(5) (a) The county assessor shall mail to an owner of the land that is subject to a
rollback tax a notice that:
(i) the land is withdrawn from this part;
(ii) the land is subject to a rollback tax under this section; and
(iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
30 days after the day on which the county assessor mails the notice described in this Subsection
(5)(a).
(b) (i) The rollback tax is due and payable on the day the county assessor mails the
notice required by Subsection (5)(a).
(ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
the county assessor mails the notice required by Subsection (5)(a).
(6) (a) Subject to Subsection (6)(b), the rollback tax and interest imposed under
Subsection (7) are a lien on the land assessed under this part.
(b) The lien described in Subsection (6)(a) shall:
(i) arise upon the imposition of the rollback tax under this section;
(ii) end on the day on which the rollback tax and interest imposed under Subsection (7)
are paid in full; and
(iii) relate back to the first day of the rollback period described in Subsection (3)(b).
(7) (a) A delinquent rollback tax under this section shall accrue interest:
(i) from the date of delinquency until paid; and
(ii) at the interest rate established under Section 
59-2-1331
 and in effect on January 1
of the year in which the delinquency occurs.
(b) The county treasurer shall include in the notice required by Section 
59-2-1317
 a
rollback tax that is delinquent on September 1 of any year and interest calculated on that
delinquent amount through November 30 of the year in which the county treasurer provides the
notice under Section 
59-2-1317
.
(8) (a) Land that becomes ineligible for assessment under this part only as a result of an
amendment to this part is not subject to the rollback tax if the owner of the land notifies the
county assessor, in accordance with Subsection (2), that the land is withdrawn from this part.
(b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
an event other than an amendment to this part, whether voluntary or involuntary, is subject to
the rollback tax.
(9) Except as provided in Section 
59-2-1710
, land that becomes exempt from taxation
under Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land
meets the requirements of Section 
59-2-1703
 to be assessed under this part.
Section 4. Section 
59-2-1707
 is amended to read:
59-2-1707.
Application -- Signed statement -- Consent to creation of a lien --
Consent to audit and review -- Notice.
(1) For land to be assessed under this part, an owner of land eligible for assessment
under this part shall submit [
an application
] annually to the county assessor of the county in
which the land is located[
.
]
:
(a) an application described in Subsection (2); or
(b) a renewal application described in Subsection (3) if:
(i) the land was assessed under this part for the preceding tax year; and
(ii) there have been no changes to the eligibility information provided in the most
recently submitted application described in Subsection (2), other than the information
described in Subsection 
59-2-1703
(2)(b).
(2) An application required by Subsection (1) shall:
(a) be on a form:
(i) approved by the commission; and
(ii) provided to an owner:
(A) by the county assessor; and
(B) at the request of an owner;
(b) provide for the reporting of information related to this part;
(c) be submitted by:
(i) May 1 of the tax year in which assessment under Subsection (1) is requested if the
land was not assessed under this part in the year before the application is submitted; or
(ii) the date otherwise required by this part for land that before the application being
submitted has been assessed under this part;
(d) be signed by all of the owners of the land that under the application would be
assessed under this part;
(e) be accompanied by the prescribed fees made payable to the county recorder;
(f) include a certification by an owner that the facts set forth in the application or
signed statement are true;
(g) include a statement that the application constitutes consent by the owners of the
land to the creation of a lien upon the land as provided in this part; and
(h) be recorded by the county recorder.
(3) 
A renewal application required by Subsection (1) shall:
(a) be on a form:
(i) approved by the commission; and
(ii) provided to an owner:
(A) by the county assessor; and
(B) at the request of an owner;
(b) provide for the reporting of the information described in Subsection
59-2-1703
(2)(b);
(c) be submitted on or before January 30 of the tax year in which the owner requests
assessment under this part;
(d) be signed by all of the owners of the land;
(e) be accompanied by the prescribed fees made payable to the county recorder;
(f) include a certification by an owner that the following are true:
(i) the facts set forth in the renewal application or signed statement; and
(ii) other than the information described in Subsection 
59-2-1703
(2)(b), the facts set
forth in the most recently submitted application described in Subsection (2), as of the date the
renewal application is submitted;
(g) include a statement that the renewal application constitutes consent by the owners
of the land to the creation of a lien upon the land as provided in this part; and
(h) be recorded by the county recorder.
(4)
 [
The
] 
An
 application described in Subsection (2) 
or a renewal application described
in Subsection (3)
 constitutes consent by the owners of the land to the creation of a lien upon the
land as provided in this part.
[
(4)
] 
(5)
 (a) If the county determines that [
an application that was
] 
a
 timely filed
application or a timely filed renewal application
 is incomplete, the county shall:
(i) notify the owner of the incomplete application 
or renewal application
; and
(ii) allow the owner to complete the application 
or renewal application
 within 30 days
from the day on which the county provides notice to the owner.
(b) An application that has not been completed within 30 days of the day of the notice
described in Subsection [
(4)(a)
] 
(5)(a)
 shall be considered denied.
[
(5)
] 
(6)
 (a) Except as provided in Subsections (1) [
and (2)
] 
through (3)
, a county
assessor may not require an additional signed statement or application for assessment under
this part.
(b) Notwithstanding Subsection [
(5)(a)
] 
(6)(a)
, a county shall require that an owner
provide notice if land is withdrawn from this part as provided in Section 
59-2-1705
.
[
(6)
] 
(7)
 A certification under Subsection (2)(f) 
or (3)(f)
 is considered as if made under
oath and subject to the same penalties as provided by law for perjury.
[
(7)
] 
(8)
 (a) An owner applying for participation under this part or a purchaser or lessee
that signs a statement under Subsection [
(8)
] 
(9)
 is considered to have given consent to a field
audit and review by:
(i) the commission;
(ii) the county assessor; or
(iii) the commission and the county assessor.
(b) The consent described in Subsection [
(7)(a)
] 
(8)(a)
 is a condition to the acceptance
of an application or signed statement.
[
(8)
] 
(9)
 An owner of land eligible for assessment under this part, because a purchaser
or lessee actively devotes the land to agricultural use as required by Section 
59-2-1703
, may
qualify the land for assessment under this part by submitting, with the application described in
Subsection (2) 
or the renewal application described in Subsection (3)
, a signed statement from
that purchaser or lessee certifying those facts that would be necessary to meet the requirements
of Section 
59-2-1703
 for assessment under this part.
Section 5. 
Retrospective operation.
The following sections have retrospective operation to January 1, 2023:
(1) Section 
59-2-506
; and
(2) Section
 59-2-1705
.