Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 12 (2024GS)

Sponsor

Sen. Fillmore, L.

Final action

Governor Signed 3/14/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• provides authority for a county to defer charges that are listed on a property tax notice (tax notice charges);
• provides authority and circumstances for a county to receive reimbursement from the State Tax Commission for deferred tax notice charges; 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: 
Steve Eliason
LONG TITLE
Committee Note:
The Revenue and Taxation Interim Committee recommended this bill.
Legislative Vote: 11 voting for 0 voting against 7 absent
General Description:
This bill provides for the deferral of tax notice charges.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ provides authority for a county to defer charges that are listed on a property tax
notice (tax notice charges);
▸ provides authority and circumstances for a county to receive reimbursement from
the State Tax Commission for deferred tax notice charges; 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:
59-2-1801
, as last amended by Laws of Utah 2023, Chapter 354
59-2-1802
, as last amended by Laws of Utah 2023, Chapter 354
59-2-1802.5
, as enacted by Laws of Utah 2023, Chapter 354
63I-2-263
, as last amended by Laws of Utah 2023, Chapters 33, 139, 212, 354, and 530
63J-1-602.2
 (Superseded 07/01/24)
, as last amended by Laws of Utah 2023, Chapters
33, 34, 134, 139, 180, 212, 246, 330, 345, 354, and 534
63J-1-602.2
 (Effective 07/01/24)
, as last amended by Laws of Utah 2023, Chapters 33,
34, 134, 139, 180, 212, 246, 310, 330, 345, 354, and 534
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 postponement of a tax due date 
or a tax notice charge
 granted in
accordance with Section 
59-2-1802
 or 
59-2-1802.5
.
(3) "Eligible owner" means an owner of an attached or a detached single-family
residence:
(a) (i) 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;
(ii) 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
(iii) 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; or
(b) that is a trust described in Section 
59-2-1805
 if the grantor of the trust is an
individual described in Subsection (3)(a).
(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; and
(d) stocks or bonds.
(7) "Indigent individual" [
is
] 
means
 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 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.
(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.
(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
.
(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.
(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
.
(12) "Tax notice charge" means the same as that term is defined in Section
59-2-1301.5
.
Section 2. Section 
59-2-1802
 is amended to read:
59-2-1802.
Tax and tax notice charge deferral -- County discretion to grant
deferral -- Creation of lien and due date.
(1) (a) In accordance with this part and after receiving an application and giving notice
to the taxpayer, a county may grant a deferral [
of a tax
] on residential property.
(b) In determining whether to grant an application for a deferral under this section, a
county shall consider an asset transferred to a relative by an applicant for deferral, if the
transfer took place during the three years before 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) (a) Taxes 
and tax notice charges
 deferred under this part accumulate with interest
and applicable recording fees as a lien against the residential property.
(b) A lien described in this Subsection (3) has the same legal status as a lien described
in Section 
59-2-1325
.
(c) To release the lien described in this Subsection (3), an owner shall pay the total
amount subject to the lien:
(i) upon the owner selling or otherwise disposing of the residential property; or
(ii) when the residential property is no longer the owner's primary residence.
(d) (i) Notwithstanding Subsection (3)(c), an owner that receives a deferral does not
have to pay the deferred taxes [
and
]
, deferred tax notice charges, or
 applicable recording fees
when the residential property transfers:
(A) to the owner's surviving spouse as a result of the owner's death; or
(B) between the owner and a trust described in Section 
59-2-1805
 for which the owner
is the grantor.
(ii) After the residential property transfers to the owner's surviving spouse, the deferred
taxes
, deferred tax notice charges,
 and applicable recording fees are due:
(A) upon the surviving spouse selling or otherwise disposing of the residential
property; or
(B) when the residential property is no longer the surviving spouse's primary residence.
(e) When the deferral period ends:
(i) the lien becomes due [
as a property tax
] 
and
 subject to the collection procedures
described in Section 
59-2-1331
; and
(ii) the date of levy is the date that the deferral period ends.
(4) (a) If a county grants an owner more than one deferral for the same single-family
residence, the county is not required to submit for recording more than one lien.
(b) Each subsequent deferral relates back to the date of the initial lien filing.
(5) (a) For each residential property for which the county grants a deferral, the treasurer
shall maintain a record that is an itemized account of the total amount 
of deferred property
taxes and deferred tax notice charges
 subject to the lien [
for deferred property taxes
].
(b) The record described in this Subsection (5) is the official record of the amount of
the lien.
(6) Taxes 
and tax notice charges
 deferred under this part bear interest at a rate equal to
50% of the rate described in Subsections 
59-2-1331
(2)(c) and (d).
Section 3. Section 
59-2-1802.5
 is amended to read:
59-2-1802.5.
Nondiscretionary tax and tax notice charge deferral for elderly
property owners.
(1) An eligible owner may apply for a deferral under this section if:
(a) the eligible owner uses the single-family residence as the eligible owner's primary
residence as of January 1 of the year for which the eligible owner applies for the deferral;
(b) with respect to the single-family residence, there are no:
(i) delinquent property taxes;
(ii) delinquent tax notice charges; or
(iii) outstanding penalties, interest, or administrative costs related to a delinquent
property tax or a delinquent tax notice charge;
(c) (i) the value of the single-family residence for which the eligible owner applies for
the deferral is no greater than the median property value of:
(A) attached single-family residences within the county, if the single-family residence
is an attached single-family residence; or
(B) detached single-family residences within the county, if the single-family residence
is a detached single-family residence; 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 the deferral; and
(d) the holder of each mortgage or trust deed outstanding on the single-family
residence gives written approval of the deferral.
(2) If the conditions in Subsection (1) are satisfied and the applicant complies with the
other applicable provisions of this part[
:(a)
]
,
 a county shall defer the property tax 
and tax notice
charges
 on an attached single-family residence or a detached single-family residence for an
application of deferral made on or after January 1, 2024[
; and
]
.
[
(b) a county may defer the property tax on an attached single-family residence or a
detached single-family residence for an application of deferral made before January 1, 2024.
]
(3) The values described in Subsection (1)(c) are based on the county assessment roll
for the county in which the single-family residence is located.
(4) For purposes of Subsection (1)(c)(ii), ownership is considered continuous
regardless of whether the single-family residence is transferred between an eligible owner who
is an individual and an eligible owner that is a trust.
(5) (a) Upon application from a county in a form prescribed by the commission, the
commission shall reimburse the county for the amount of any tax 
or tax notice charge
 that the
county defers in accordance with this section.
(b) The commission may not reimburse a county:
(i) before the county approves the deferral; or
(ii) for a tax 
or tax notice charge
 assessed after December 31, 2026.
(c) A county that receives money in accordance with this Subsection (5) shall:
(i) distribute the money to the taxing entities in the same proportion the county would
have distributed the revenue from the deferred tax 
and deferred tax notice charge
; and
(ii) repay the money no later than 30 days after the day on which the deferral lien is
satisfied.
(d) The commission shall deposit money received under Subsection (5)(c)(ii) into the
General Fund.
Section 4. Section 
63I-2-263
 is amended to read:
63I-2-263.
Repeal dates: Title 63A to Title 63N.
(1) Title 63A, Chapter 2, Part 5, Educational Interpretation and Translation Services
Procurement Advisory Council is repealed July 1, 2025.
(2) Section 63A-17-303 is repealed July 1, 2023.
(3) Section 
63A-17-806
 is repealed June 30, 2026.
(4) Title 63C, Chapter 22, Digital Wellness, Citizenship, and Safe Technology
Commission is repealed July 1, 2023.
(5) Section 
63H-7a-303
 is repealed July 1, 2024.
(6) Subsection 
63H-7a-403
(2)(b), regarding the charge to maintain the public safety
communications network, is repealed July 1, 2033.
(7) Subsection 
63J-1-602.2
(45), which lists appropriations to the State Tax
Commission for [
property tax
] deferral reimbursements, is repealed July 1, 2027.
(8) Subsection 
63N-2-213
(12)(a), relating to claiming a tax credit in the same taxable
year as the targeted business income tax credit, is repealed December 31, 2024.
(9) Title 63N, Chapter 2, Part 3, Targeted Business Income Tax Credit in an Enterprise
Zone, is repealed December 31, 2024.
Section 5. Section 
63J-1-602.2 (Superseded 07/01/24)
 is amended to read:
63J-1-602.2 (Superseded 07/01/24).
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 Rangeland Improvement Act created in Section 
4-20-101
.
(4) The Percent-for-Art Program created in Section 
9-6-404
.
(5) The LeRay McAllister Working Farm and Ranch Fund created in Section 
4-46-301
.
(6) The Utah Lake Authority created in Section 
11-65-201
.
(7) Dedicated credits accrued to the Utah Marriage Commission as provided under
Subsection 
17-16-21
(2)(d)(ii).
(8) The Wildlife Land and Water Acquisition Program created in Section 
23A-6-205
.
(9) Sanctions collected as dedicated credits from Medicaid providers under Subsection
26B-3-108
(7).
(10) The Emergency Medical Services Grant Program in Section 
26B-4-107
.
(11) The primary care grant program created in Section 
26B-4-310
.
(12) The Opiate Overdose Outreach Pilot Program created in Section 
26B-4-512
.
(13) The Utah Health Care Workforce Financial Assistance Program created in Section
26B-4-702
.
(14) The Rural Physician Loan Repayment Program created in Section 
26B-4-703
.
(15) The Utah Medical Education Council for the:
(a) administration of the Utah Medical Education Program created in Section
26B-4-707
;
(b) provision of medical residency grants described in Section 
26B-4-711
; and
(c) provision of the forensic psychiatric fellowship grant described in Section
26B-4-712
.
(16) The Division of Services for People with Disabilities, as provided in Section
26B-6-402
.
(17) Funds that the Department of Alcoholic Beverage Services retains in accordance
with Subsection 
32B-2-301
(8)(a) or (b).
(18) The General Assistance program administered by the Department of Workforce
Services, as provided in Section 
35A-3-401
.
(19) The Utah National Guard, created in Title 39A, National Guard and Militia Act.
(20) The Search and Rescue Financial Assistance Program, as provided in Section
53-2a-1102
.
(21) The Motorcycle Rider Education Program, as provided in Section 
53-3-905
.
(22) The Utah Board of Higher Education for teacher preparation programs, as
provided in Section 
53B-6-104
.
(23) Innovation grants under Section 
53G-10-608
, except as provided in Subsection
53G-10-608
(6).
(24) The Division of Fleet Operations for the purpose of upgrading underground
storage tanks under Section 
63A-9-401
.
(25) The Utah Seismic Safety Commission, as provided in Section 
63C-6-104
.
(26) The Division of Technology Services for technology innovation as provided under
Section 
63A-16-903
.
(27) The State Capitol Preservation Board created by Section 
63C-9-201
.
(28) The Office of Administrative Rules for publishing, as provided in Section
63G-3-402
.
(29) The Colorado River Authority of Utah, created in Title 63M, Chapter 14,
Colorado River Authority of Utah Act.
(30) 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.
(31) 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.
(32) County correctional facility contracting program for state inmates as described in
Section 
64-13e-103
.
(33) Programs for the Jordan River Recreation Area as described in Section 
65A-2-8
.
(34) The Division of Human Resource Management user training program, as provided
in Section 
63A-17-106
.
(35) A public safety answering point's emergency telecommunications service fund, as
provided in Section 
69-2-301
.
(36) The Traffic Noise Abatement Program created in Section 
72-6-112
.
(37) 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.
(38) The Judicial Council for compensation for special prosecutors, as provided in
Section 
77-10a-19
.
(39) A state rehabilitative employment program, as provided in Section 
78A-6-210
.
(40) The Utah Geological Survey, as provided in Section 
79-3-401
.
(41) The Bonneville Shoreline Trail Program created under Section 
79-5-503
.
(42) Adoption document access as provided in Sections 
78B-6-141
, 
78B-6-144
, and
78B-6-144.5
.
(43) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent
Defense Commission.
(44) 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.
(45) The State Tax Commission for reimbursing counties for [
deferred property taxes
]
deferrals
 in accordance with Section 
59-2-1802.5
.
(46) The Veterinarian Education Loan Repayment Program created in Section 
4-2-902
.
Section 6. Section 
63J-1-602.2 (Effective 07/01/24)
 is amended to read:
63J-1-602.2 (Effective 07/01/24).
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 Rangeland Improvement Act created in Section 
4-20-101
.
(4) The Percent-for-Art Program created in Section 
9-6-404
.
(5) The LeRay McAllister Working Farm and Ranch Fund created in Section 
4-46-301
.
(6) The Utah Lake Authority created in Section 
11-65-201
.
(7) Dedicated credits accrued to the Utah Marriage Commission as provided under
Subsection 
17-16-21
(2)(d)(ii).
(8) The Wildlife Land and Water Acquisition Program created in Section 
23A-6-205
.
(9) Sanctions collected as dedicated credits from Medicaid providers under Subsection
26B-3-108
(7).
(10) The primary care grant program created in Section 
26B-4-310
.
(11) The Opiate Overdose Outreach Pilot Program created in Section 
26B-4-512
.
(12) The Utah Health Care Workforce Financial Assistance Program created in Section
26B-4-702
.
(13) The Rural Physician Loan Repayment Program created in Section 
26B-4-703
.
(14) The Utah Medical Education Council for the:
(a) administration of the Utah Medical Education Program created in Section
26B-4-707
;
(b) provision of medical residency grants described in Section 
26B-4-711
; and
(c) provision of the forensic psychiatric fellowship grant described in Section
26B-4-712
.
(15) The Division of Services for People with Disabilities, as provided in Section
26B-6-402
.
(16) Funds that the Department of Alcoholic Beverage Services retains in accordance
with Subsection 
32B-2-301
(8)(a) or (b).
(17) The General Assistance program administered by the Department of Workforce
Services, as provided in Section 
35A-3-401
.
(18) The Utah National Guard, created in Title 39A, National Guard and Militia Act.
(19) The Search and Rescue Financial Assistance Program, as provided in Section
53-2a-1102
.
(20) The Emergency Medical Services Grant Program in Section 
53-2d-207
.
(21) The Motorcycle Rider Education Program, as provided in Section 
53-3-905
.
(22) The Utah Board of Higher Education for teacher preparation programs, as
provided in Section 
53B-6-104
.
(23) Innovation grants under Section 
53G-10-608
, except as provided in Subsection
53G-10-608
(6).
(24) The Division of Fleet Operations for the purpose of upgrading underground
storage tanks under Section 
63A-9-401
.
(25) The Utah Seismic Safety Commission, as provided in Section 
63C-6-104
.
(26) The Division of Technology Services for technology innovation as provided under
Section 
63A-16-903
.
(27) The State Capitol Preservation Board created by Section 
63C-9-201
.
(28) The Office of Administrative Rules for publishing, as provided in Section
63G-3-402
.
(29) The Colorado River Authority of Utah, created in Title 63M, Chapter 14,
Colorado River Authority of Utah Act.
(30) 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.
(31) 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.
(32) County correctional facility contracting program for state inmates as described in
Section 
64-13e-103
.
(33) Programs for the Jordan River Recreation Area as described in Section 
65A-2-8
.
(34) The Division of Human Resource Management user training program, as provided
in Section 
63A-17-106
.
(35) A public safety answering point's emergency telecommunications service fund, as
provided in Section 
69-2-301
.
(36) The Traffic Noise Abatement Program created in Section 
72-6-112
.
(37) 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.
(38) The Judicial Council for compensation for special prosecutors, as provided in
Section 
77-10a-19
.
(39) A state rehabilitative employment program, as provided in Section 
78A-6-210
.
(40) The Utah Geological Survey, as provided in Section 
79-3-401
.
(41) The Bonneville Shoreline Trail Program created under Section 
79-5-503
.
(42) Adoption document access as provided in Sections 
78B-6-141
, 
78B-6-144
, and
78B-6-144.5
.
(43) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent
Defense Commission.
(44) 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.
(45) The State Tax Commission for reimbursing counties for [
deferred property taxes
]
deferrals
 in accordance with Section 
59-2-1802.5
.
(46) The Veterinarian Education Loan Repayment Program created in Section 
4-2-902
.
Section 7. 
Effective date.
This bill takes effect on May 1, 2024.
Section 8. 
Retrospective operation.
 The following sections have retrospective operation to January 1, 2024:
 (1) Section 
59-2-1801
;
 (2) Section 
59-2-1802
; and
 (3) Section 
59-2-1802.5
.