Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 58 Second Substitute (2024GS)

Sponsor

Sen. Grover, K.

Final action

Governor Signed 3/14/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• requires an owner of a residential property occupied by a tenant to submit a written declaration that the property is the primary residence of the tenant;
• provides the form of the written declaration and prohibits a county from obtaining additional verification from the owner or the tenant;
• recodifies a similar declaration requirement for residential property under construction in the procedures for obtaining a residential property exemption code; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

PROPERTY TAX ADMINISTRATION AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Keith Grover
House Sponsor: 
____________
LONG TITLE
General Description:
This bill modifies the procedures for obtaining a residential property exemption on a
primary residence.
Highlighted Provisions:
This bill:
▸ requires an owner of a residential property occupied by a tenant to submit a written
declaration that the property is the primary residence of the tenant;
▸ provides the form of the written declaration and prohibits a county from obtaining
additional verification from the owner or the tenant;
▸ recodifies a similar declaration requirement for residential property under
construction in the procedures for obtaining a residential property exemption code;
and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
59-2-103
, as last amended by Laws of Utah 2020, Chapters 38, 40
59-2-103.5
, as last amended by Laws of Utah 2022, Chapter 239
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-2-103
 is amended to read:
59-2-103.
Rate of assessment of property -- Residential property.
(1) As used in this section:
(a) (i) "Household" means the association of individuals who live in the same dwelling,
sharing the dwelling's furnishings, facilities, accommodations, and expenses.
(ii) "Household" includes married individuals, who are not legally separated, who have
established domiciles at separate locations within the state.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "domicile."
(2) All tangible taxable property located within the state shall be assessed and taxed at
a uniform and equal rate on the basis of its fair market value, as valued on January 1, unless
otherwise provided by law.
(3) Subject to Subsections (4) through [
(7)
] 
(6)
 and Section 
59-2-103.5
, for a calendar
year, the fair market value of residential property located within the state is allowed a
residential exemption equal to a 45% reduction in the value of the property.
(4) Part-year residential property located within the state is allowed the residential
exemption described in Subsection (3) if the part-year residential property is used as residential
property for 183 or more consecutive calendar days during the calendar year for which the
owner seeks to obtain the residential exemption.
(5) No more than one acre of land per residential unit may qualify for the residential
exemption described in Subsection (3).
(6) (a) Except as provided in Subsections (6)(b)(ii) and (iii), a residential exemption
described in Subsection (3) is limited to one primary residence per household.
(b) An owner of multiple primary residences located within the state is allowed a
residential exemption under Subsection (3) for:
(i) subject to Subsection (6)(a), the primary residence of the owner;
(ii) each residential property that is the primary residence of a tenant; and
(iii) subject to Subsection [
(7)
] 
59-2-103.5
(4)
, each residential property described in
Subsection 
59-2-102
(34)(b)(ii).
[
(7) Before residential property described in Subsection 
59-2-102
(34)(b)(ii) is allowed
a residential exemption described in Subsection (3), an owner of the residential property shall
file with the county assessor a written declaration that:
]
[
(a) states under penalty of perjury that, to the best of each owner's knowledge, upon
completion of construction or occupancy of the residential property, the residential property
will be used for residential purposes as a primary residence;
]
[
(b) is signed by each owner of the residential property; and
]
[
(c) is on a form prescribed by the commission.
]
Section 2. Section 
59-2-103.5
 is amended to read:
59-2-103.5.
Procedures to obtain an exemption for residential property --
Procedure if property owner or property no longer qualifies to receive a residential
exemption.
(1) Subject to [
Subsection (8)
] 
Subsections (4), (5), and (10)
, for residential property
other than part-year residential property, a county legislative body may adopt an ordinance that
requires an owner to file an application with the county board of equalization before 
the county
applies
 a residential exemption [
under Section 
59-2-103
 may be applied
] 
authorized under
Section 
59-2-103
 to the value of the residential property if:
(a) the residential property was ineligible for the residential exemption during the
calendar year immediately preceding the calendar year for which the owner is seeking to have
the residential exemption applied to the value of the residential property;
(b) an ownership interest in the residential property changes; or
(c) the county board of equalization determines that there is reason to believe that the
residential property no longer qualifies for the residential exemption.
(2) (a) The application described in Subsection (1):
(i) shall be on a form the commission [
prescribes
] 
provides
 by rule and makes
available to the counties;
(ii) shall be signed by the owner of the residential property; and
(iii) may not request the sales price of the residential property.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules [
prescribing
] 
providing
 the contents of the form described in
Subsection (2)(a).
(c) For purposes of the application described in Subsection (1), a county may not
request information from an owner of a residential property beyond the information [
provided
]
in the form [
prescribed
] 
provided
 by the commission under this Subsection (2).
(3) (a) Regardless of whether a county legislative body adopts an ordinance described
in Subsection (1), before a 
county may apply a
 residential exemption [
may be applied
] to the
value of part-year residential property, an owner of the property shall:
(i) file the application described in Subsection (2)(a) with the county board of
equalization; and
(ii) include as part of the application described in Subsection (2)(a) a statement that
certifies:
(A) the date the part-year residential property became residential property;
(B) that the part-year residential property will be used as residential property for 183 or
more consecutive calendar days during the calendar year for which the owner seeks to obtain
the residential exemption; and
(C) that the owner, or a member of the owner's household, may not claim a residential
exemption for any property for the calendar year for which the owner seeks to obtain the
residential exemption, other than the part-year residential property, or as allowed under Section
59-2-103
 with respect to the primary residence or household furnishings, furniture, and
equipment of the owner's tenant.
(b) If an owner files an application under this Subsection (3) on or after May 1 of the
calendar year for which the owner seeks to obtain the residential exemption, the county board
of equalization may require the owner to pay an application fee not to exceed $50.
(4) Before a county allows residential property described in Subsection
59-2-102
(34)(b)(ii) a residential exemption authorized under Section 
59-2-103
, an owner of the
residential property shall file with the county assessor a written declaration that:
(a) states under penalty of perjury that, to the best of each owner's knowledge, upon
completion of construction or occupancy of the residential property, the residential property
will be used for residential purposes as a primary residence;
(b) is signed by each owner of the residential property; and
(c) is on a form approved by the commission.
(5) (a) Before a county allows residential property described in Subsection
59-2-103
(6)(b) a residential exemption authorized under Section 
59-2-103
, an owner of the
residential property shall file with the county assessor a written declaration that:
(i) states under penalty of perjury that, to the best of each owner's knowledge, the
residential property will be used for residential purposes as a primary residence of a tenant;
(ii) is signed by each owner of the residential property; and
(iii) is on a form approved by the commission.
(b) A county assessor may not request information from an owner seeking a residential
exemption for a tenant or the owner's tenant beyond the declaration described in Subsection
(5)(a).
[
(4)
] 
(6)
 Except as provided in Subsection [
(5)
] 
(7)
, if a property owner no longer
qualifies to receive a residential exemption authorized under Section 
59-2-103
 for the property
owner's primary residence, the property owner shall:
(a) file a written statement with the county board of equalization of the county in which
the property is located:
(i) on a form provided by the county board of equalization; and
(ii) notifying the county board of equalization that the property owner no longer
qualifies to receive a residential exemption authorized under Section 
59-2-103
 for the property
owner's primary residence; and
(b) declare on the property owner's individual income tax return under Chapter 10,
Individual Income Tax Act, for the taxable year for which the property owner no longer
qualifies to receive a residential exemption authorized under Section 
59-2-103
 for the property
owner's primary residence, that the property owner no longer qualifies to receive a residential
exemption authorized under Section 
59-2-103
 for the property owner's primary residence.
[
(5)
] 
(7)
 A property owner is not required to file a written statement or make the
declaration described in Subsection [
(4)
] 
(6)
 if the property owner:
(a) changes primary residences;
(b) qualified to receive a residential exemption authorized under Section 
59-2-103
 for
the residence that was the property owner's former primary residence; and
(c) qualifies to receive a residential exemption authorized under Section 
59-2-103
 for
the residence that is the property owner's current primary residence.
[
(6)
] 
(8)
 Subsections (2) through [
(5)
] 
(7)
 do not apply to qualifying exempt primary
residential rental personal property.
[
(7)
] 
(9)
 (a) Subject to Subsection [
(8)
] 
(10)
, for the first calendar year in which a
property owner qualifies to receive a residential exemption under Section 
59-2-103
, a county
assessor may require the property owner to file a signed statement described in Section
59-2-306
.
(b) Subject to Subsection [
(8)
] 
(10)
 and notwithstanding Section 
59-2-306
, for a
calendar year after the calendar year described in Subsection [
(7)(a)
] 
(9)(a)
 in which a property
owner qualifies for an exemption [
described in Subsection 
59-2-1115
(2)
] 
authorized under
Section 
59-2-1115
 for qualifying exempt primary residential rental personal property, a signed
statement described in Section 
59-2-306
 with respect to the qualifying exempt primary
residential rental personal property may only require the property owner to certify, under
penalty of perjury, that the property owner qualifies for the exemption [
under Subsection
59-2-1115
(2)
] 
authorized under Section 
59-2-1115
.
[
(8)
] 
(10)
 (a) After an ownership interest in residential property changes, the county
assessor shall:
(i) notify the owner of the residential property that the owner is required to submit a
written declaration described in Subsection [
(8)(d)
] 
(10)(d)
 within 90 days after the day on
which the county assessor mails the notice under this Subsection [
(8)(a)
] 
(10)(a)
; and
(ii) provide the owner of the residential property with the form described in Subsection
[
(8)(e)
] 
(10)(e)
 to make the written declaration described in Subsection [
(8)(d)
] 
(10)(d)
.
(b) A county assessor is not required to provide a notice to an owner of residential
property under Subsection [
(8)(a)
] 
(10)(a)
 if the situs address of the residential property is the
same as any one of the following:
(i) the mailing address of the residential property owner or the tenant of the residential
property;
(ii) the address listed on the:
(A) residential property owner's driver license; or
(B) tenant of the residential property's driver license; or
(iii) the address listed on the:
(A) residential property owner's voter registration; or
(B) tenant of the residential property's voter registration.
(c) A county assessor is not required to provide a notice to an owner of residential
property under Subsection [
(8)(a)
] 
(10)(a)
 if:
(i) the owner is using a post office box or rural route box located in the county where
the residential property is located; and
(ii) the residential property is located in a county of the fourth, fifth, or sixth class.
(d) An owner of residential property that receives a notice described in Subsection
[
(8)(a)
] 
(10)(a)
 shall submit a written declaration to the county assessor under penalty of
perjury certifying the information contained in the form [
provided
] 
described
 in Subsection
[
(8)(e)
] 
(10)(e)
.
(e) The written declaration required by Subsection [
(8)(d)
] 
(10)(d)
 shall be:
(i) signed by the owner of the residential property; and
(ii) in substantially the following form:
"Residential Property Declaration
This form must be submitted to the County Assessor's office where your new residential
property is located within 90 days of receipt. Failure to do so will result in the county assessor
taking action that could result in the withdrawal of the primary residential exemption from your
residential property.
Residential Property Owner Information
Name(s):__________________________________________________
Home Phone:_______________________________________________
Work Phone:_______________________________________________
Mailing Address:____________________________________________
Residential Property Information
Physical Address:___________________________________________
Certification
1. Is this property used as a primary residential property or part-year residential
property for you or another person?
"Part-year residential property" means owned property that is not residential property on
January 1 of a calendar year but becomes residential property after January 1 of the calendar
year.
Yes No
2. Will this primary residential property or part-year residential property be occupied
for 183 or more consecutive calendar days by the owner or another person?
A part-year residential property occupied for 183 or more consecutive calendar days in
a calendar year by the owner(s) or a tenant is eligible for the exemption.
Yes No
If a property owner or a property owner's spouse claims a residential exemption under
Utah Code Ann. §
59-2-103
 for property in this state that is the primary residence of the
property owner or the property owner's spouse, that claim of a residential exemption creates a
rebuttable presumption that the property owner and the property owner's spouse have domicile
in Utah for income tax purposes. The rebuttable presumption of domicile does not apply if the
residential property is the primary residence of a tenant of the property owner or the property
owner's spouse.
Signature
Under penalties of perjury, I declare to the best of my knowledge and belief, this
declaration and accompanying pages are true, correct, and complete.
__________________(Owner signature) _____________________Date (mm/dd/yyyy)
__________________(Owner printed name)
(f) For purposes of a written declaration described in this Subsection [
(8)
] 
(10)
, a
county may not request information from a property owner beyond the information described in
the form provided in Subsection [
(8)(e)
] 
(10)(e)
.
(g) (i) If, after receiving a written declaration filed under Subsection [
(8)(d)
] 
(10)(d)
,
the county determines that the property has been incorrectly qualified or disqualified to receive
a residential exemption, the county shall:
(A) redetermine the property's qualification to receive a residential exemption; and
(B) notify the claimant of the redetermination and the county's reason for the
redetermination.
(ii) The redetermination provided in Subsection [
(8)(g)(i)(A)
] 
(10)(g)(i)(A)
 is final
unless:
(A) except as provided in Subsection [
(8)(g)(iii)
] 
(10)(g)(iii)
, the property owner
appeals the redetermination to the board of equalization in accordance with Subsection
59-2-1004
(2); or
(B) the county determines that the property is eligible to receive a primary residential
exemption as part-year residential property.
(iii) The board of equalization may not accept an appeal that is filed after the later of:
(A) September 15 of the current calendar year; or
(B) the last day of the 45-day period beginning on the day on which the county auditor
provides the notice under Section 
59-2-919.1
.
(h) (i) If a residential property owner fails to file a written declaration required by
Subsection [
(8)(d)
] 
(10)(d)
, the county assessor shall mail to the owner of the residential
property a notice that:
(A) the property owner failed to file a written declaration as required by Subsection
[
(8)(d)
] 
(10)(d)
; and
(B) the property owner will no longer qualify to receive the residential exemption
authorized under Section 
59-2-103
 for the property that is the subject of the written declaration
if the property owner does not file the written declaration required by Subsection [
(8)(d)
]
(10)(d)
 within 30 days after the day on which the county assessor mails the notice under this
Subsection [
(8)(h)(i)
] 
(10)(h)(i)
.
(ii) If a property owner fails to file a written declaration required by Subsection [
(8)(d)
]
(10)(d)
 after receiving the notice described in Subsection [
(8)(h)(i)
] 
(10)(h)(i)
, the property
owner no longer qualifies to receive the residential exemption authorized under Section
59-2-103
 in the calendar year for the property that is the subject of the written declaration
unless:
(A) except as provided in Subsection [
(8)(h)(iii)
] 
(10)(h)(iii)
, the property owner
appeals the redetermination to the board of equalization in accordance with Subsection
59-2-1004
(2); or
(B) the county determines that the property is eligible to receive a primary residential
exemption as part-year residential property.
(iii) The board of equalization may not accept an appeal that is filed after the later of:
(A) September 15 of the current calendar year; or
(B) the last day of the 45-day period beginning on the day on which the county auditor
provides the notice under Section 
59-2-919.1
.
(iv) A property owner that is disqualified to receive the residential exemption under
Subsection [
(8)(h)(ii)
] 
(10)(h)(ii)
 may file an application described in Subsection (1) to
determine whether the owner is eligible to receive the residential exemption.
(i) The requirements of this Subsection [
(8)
] 
(10)
 do not apply to a county assessor in a
county that has, for the five calendar years prior to 2019, had in place and enforced an
ordinance described in Subsection (1).
Section 3. 
Effective date.
This bill takes effect on May 1, 2024.