This bill revises provisions governing the duties of the state board of equalization and revocations of exempt status, as discussed below.
This bill requires the executive secretary of the state board of equalization to manage appeals before the state board of equalization. Such management includes, but is not limited to, the power and duty to serve as the hearing officer for hearings before the board or the assessment appeals commission, if a hearing officer is appointed. The hearing officer may receive and grant motions to reschedule a hearing, withdraw an appeal, and adopt agreed or settlement orders submitted by parties.
Generally under present law, the state board of equalization has jurisdiction over the valuation, classification and assessment of all properties in the state. The board's duties include, but are not limited to, receiving, hearing, considering and acting upon complaints and appeals made to the board regarding the valuation, classification, and assessment of property.
This bill requires that the state board of equalization's findings of values and classification as to real property that is not appraised annually carry forward until the next county-wide reappraisal, except upon a finding of a material change to the property or as a result of an appeal to the county or state board of equalization. For purposes of this bill, a "material change" is any change prompting the assessor to issue an assessment change notice.
Under present law, governing property tax exemptions for religious, charitable, scientific, and nonprofit educational institutions:
(1) The state board of equalization may revoke an exemption if the board determines that the exemption was approved on the basis of fraud, misrepresentation, or erroneous information; the current owner does not qualify for exemption; or the property is not actually being used for an exempt purpose;
(2) Property is not being used for an exempt purpose if the property is not currently in use, has been abandoned, is not suitable for human habitation, or is being used for a nonexempt purpose;
(3) The executive secretary of the board may initiate proceedings for revocation on the executive secretary's own motion or upon the written complaint of any person upon a determination of probable cause; and
(4) Revocation is not retroactive, unless the order of revocation incorporates a finding of fraud or misrepresentation on the part of the applicant or failure of the applicant to give notice of a change in the use or ownership of the property.
This bill revises the provisions of item (2) above to specify that property is not "occupied and used" instead of not "being used" if the circumstances described above are present. Under this bill, the board may initiate proceedings for revocation on the board's own motion rather than the executive secretary initiating proceedings on the secretary's own motion. Also under this bill, proceedings for revocation may be initiated by a written complaint of any person without a determination of probable cause.
This bill authorizes the board, the executive secretary, or the executive secretary's designee to determine if a property no longer qualifies for a property tax exemption or to modify the tax exemption status of a property. The board must revoke a property's tax-exempt status through its staff designee. This bill requires that written notice of the revocation be sent to the property owner, the county assessor of property, and the county trustee, specifying the date the property's tax-exempt status ends. The county assessor of property or the property owner may appeal the initial determination to the board and is entitled to a hearing prior to any final determination. Under this bill, a revocation, as referenced above, will be final 90 days after the date the written notice is sent, absent an appeal to the board.
ON FEBRUARY 28, 2022, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1677, AS AMENDED.
AMENDMENT #1 deletes the provision of this bill that concerns carry forward of the state board of equalization's findings of values and classification as to real property that is not appraised, as described in the Bill Summary.

Statutes affected:
Introduced: 4-3-5105, 67-5-1501, 67-5-212
Current Version: 4-3-5105, 67-5-1501, 67-5-212