Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 423 Second Substitute (2024GS)

Sponsor

Rep. Thurston, N.  (Thurston’s own bill)

Final action

Governor Signed 3/18/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• clarifies that no presumption of correctness attaches to evidence submitted in an appeal to a county board of equalization involving residential property;
• describes the types of evidence that a county board of equalization may consider in weighing the accuracy of certain residential property sales price information;
• requires a county board of equalization, in an appeal involving residential property, to only consider evidence submitted by the parties; and
• makes technical changes.

Every vote on this bill

Bill text

This document includes House Committee Amendments incorporated into the bill on Thu, Feb 8, 2024 at 11:27 AM by housengrossing.
This document includes House Floor Amendments incorporated into the bill on Fri, Feb 16, 2024 at 11:55 AM by housengrossing.
RESIDENTIAL VALUATION APPEAL PROCEDURES
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Norman K Thurston
Senate Sponsor: 
 Daniel McCay
LONG TITLE
General Description:
This bill modifies provisions related to appeals involving the valuation of residential
property.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ clarifies that no presumption of correctness attaches to evidence submitted in an
appeal to a county board of equalization involving residential property;
▸ describes the types of evidence that a county board of equalization may consider in
weighing the accuracy of certain residential property sales price information;
▸ requires a county board of equalization, in an appeal involving residential property,
to only consider evidence submitted by the parties; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
59-2-109
, as last amended by Laws of Utah 2023, Chapter 471
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-2-109
 is amended to read:
59-2-109.
Burden of proof.
(1) As used in this section:
(a) "Applicable lien date" means January 1 of the year in which the valuation or
equalization of real property is appealed to the county board of equalization.
[
(a)
] 
(b)
 "Final assessed value" means:
(i) for real property for which the taxpayer appealed the valuation or equalization to the
county board of equalization in accordance with Section 
59-2-1004
, the value given to the real
property by the county board of equalization, including a value based on a stipulation of the
parties;
(ii) for real property for which the taxpayer or a county assessor appealed the valuation
or equalization to the commission in accordance with Section 
59-2-1006
, the value given to the
real property by:
(A) the commission, if the commission has issued a decision in the appeal or the
parties have entered a stipulation; or
(B) a county board of equalization, if the commission has not yet issued a decision in
the appeal and the parties have not entered a stipulation; or
(iii) for real property for which the taxpayer or a county assessor sought judicial review
of the valuation or equalization in accordance with Section 
59-1-602
 or Title 63G, Chapter 4,
Part 4, Judicial Review, the value given the real property by the commission.
[
(b)
] 
(c)
 "Inflation adjusted value" means the same as that term is defined in Section
59-2-1004
.
[
(c)
] 
(d)
 "Qualified real property" means real property:
(i) that is assessed by a county assessor in accordance with Part 3, County Assessment;
(ii) for which:
(A) the taxpayer or a county assessor appealed the valuation or equalization for the
previous taxable year to the county board of equalization in accordance with Section 
59-2-1004
or the commission in accordance with Section 
59-2-1006
;
(B) the appeal described in Subsection [
(1)(c)(ii)(A)
] 
(1)(d)(ii)(A)
 resulted in a final
assessed value that was lower than the assessed value; and
(C) the assessed value for the current taxable year is higher than the inflation adjusted
value; and
(iii) that, on or after January 1 of the previous taxable year and before January 1 of the
current taxable year, has not had a qualifying change.
(e) "Qualifying contract" means a contract for the completed sale of residential
property that:
(i) involves residential property for which a taxpayer appealed the valuation or
equalization to the county board of equalization;
(ii) identifies the final sales price for the residential property described in Subsection
(1)(e)(i); and
(iii) is executed within six months before or after the applicable lien date.
[
(d)
] 
(f)
 "Qualifying change" means one of the following changes to real property that
occurs on or after January 1 of the previous taxable year and before January 1 of the current
taxable year:
(i) a physical improvement if, solely as a result of the physical improvement, the fair
market value of the physical improvement equals or exceeds the greater of 10% of fair market
value of the real property or $20,000;
(ii) a zoning change, if the fair market value of the real property increases solely as a
result of the zoning change; or
(iii) a change in the legal description of the real property, if the fair market value of the
real property increases solely as a result of the change in the legal description of the real
property.
(2) For an appeal involving the valuation of real property to the county board of
equalization or the commission, the party carrying the burden of proof shall demonstrate:
(a) substantial error in:
(i) for an appeal not involving qualified real property:
(A) if Subsection (3) does not apply and the appeal is to the county board of
equalization, the original assessed value;
(B) if Subsection (3) does not apply and the appeal is to the commission, the value
given to the property by the county board of equalization; or
(C) if Subsection (3) applies, the original assessed value; or
(ii) for an appeal involving qualified real property, the inflation adjusted value; and
(b) a sound evidentiary basis upon which the county board of equalization or the
commission could adopt a different valuation.
(3) (a) The party described in Subsection (3)(b) shall carry the burden of proof before a
county board of equalization or the commission, in an action appealing the value of property:
(i) that is not qualified real property; and
(ii) for which a county assessor, a county board of equalization, or the commission
asserts that the fair market value of the assessed property is greater than the original assessed
value for that calendar year.
(b) For purposes of Subsection (3)(a), the following have the burden of proof:
(i) for property assessed under Part 3, County Assessment:
(A) the county assessor, if the county assessor is a party to the appeal that asserts that
the fair market value of the assessed property is greater than the original assessed value for that
calendar year; or
(B) the county board of equalization, if the county board of equalization is a party to
the appeal that asserts that the fair market value of the assessed property is greater than the
original assessed value for that calendar year; or
(ii) for property assessed under Part 2, Assessment of Property, the commission, if the
commission is a party to the appeal that asserts that the fair market value of the assessed
property is greater than the original assessed value for that calendar year.
(c) For purposes of this Subsection (3) only, if a county assessor, county board of
equalization, or the commission asserts that the fair market value of the assessed property is
greater than the original assessed value for that calendar year:
(i) 
Ĥ→ 
except as provided in Subsection (5),
 ←Ĥ
 the original assessed value shall lose the
115a presumption of correctness;
(ii) a preponderance of the evidence shall suffice to sustain the burden for all parties;
and
(iii) the county board of equalization or the commission shall be free to consider all
evidence allowed by law in determining fair market value, including the original assessed
value.
(4) (a) The party described in Subsection (4)(b) shall carry the burden of proof before a
county board of equalization or the commission in an action appealing the value of qualified
real property if at least one party presents evidence of or otherwise asserts a value other than
inflation adjusted value.
(b) For purposes of Subsection (4)(a):
(i) the county assessor or the county board of equalization that is a party to the appeal
has the burden of proof if the county assessor or county board of equalization presents evidence
of or otherwise asserts a value that is greater than the inflation adjusted value; or
(ii) the taxpayer that is a party to the appeal has the burden of proof if the taxpayer
presents evidence of or otherwise asserts a value that is less than the inflation adjusted value.
(c) The burdens of proof described in Subsection (4)(b) apply before a county board of
equalization or the commission even if the previous year's valuation is:
(i) pending an appeal requested in accordance with Section 
59-2-1006
 or judicial
review requested in accordance with Section 
59-1-602
 or Title 63G, Chapter 4, Part 4, Judicial
Review; or
(ii) overturned by the commission as a result of an appeal requested in accordance with
Section 
59-2-1006
 or by a court of competent jurisdiction as a result of judicial review
requested in accordance with Section 
59-1-602
 or Title 63G, Chapter 4, Part 4, Judicial
Review.
(5) (a) This Subsection (5) applies only to an appeal to a county board of equalization
involving the valuation of residential property that is not qualified real property.
(b) There is no presumption of correctness for evidence submitted in an appeal
described in Subsection (5)(a), including the original assessed value of the residential property.
(c) Notwithstanding Subsection (5)(b), if a qualifying contract is submitted as evidence
in an appeal described in Subsection (5)(a), the only evidence that the county board of
equalization
Ĥ→ 
or hearing officer
 ←Ĥ
may consider, in determining the sales price in the
146a 
qualifying contract does not
provide an accurate or reliable indication of the value of the residential property, is evidence of
the following, if submitted:
(i) evidence disputing the nature of the qualifying contract as an arms-length
transaction;
(ii) evidence demonstrating that changes in market conditions have occurred in the
time period between the day on which the qualifying contract was executed and the applicable
lien date; and
(iii) evidence demonstrating that a qualifying change to the residential property has
occurred in the time period between the day on which the qualifying contract was executed and
the applicable lien date.
(d) In determining the value of residential property in an appeal described in
Subsection (5)(a), the county board of equalization may not consider any evidence or
information other than the evidence submitted to the county board of equalization by the
parties in the appeal.
Section 2. 
Effective date.
This bill takes effect on May 1, 2024.