Enrolled Copy S.B. 12
1 PROPERTY TAX DEFERRAL AMENDMENTS
2024 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore House Sponsor: Steve Eliason
2
3 LONG TITLE
4 General Description:
5 This bill provides for the deferral of tax notice charges.
6 Highlighted Provisions:
7 This bill:
8 ▸ defines terms;
9 ▸ provides authority for a county to defer charges that are listed on a property tax notice
10 (tax notice charges);
11 ▸ provides authority and circumstances for a county to receive reimbursement from the
12 State Tax Commission for deferred tax notice charges; and
13 ▸ makes technical and conforming changes.
14 Money Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 This bill provides retrospective operation.
18 Utah Code Sections Affected:
19 AMENDS:
20 59-2-1801 (Effective 05/01/24), as last amended by Laws of Utah 2023, Chapter 354
21 59-2-1802 (Effective 05/01/24), as last amended by Laws of Utah 2023, Chapter 354
22 59-2-1802.5 (Effective 05/01/24), as enacted by Laws of Utah 2023, Chapter 354
23 63I-2-263 (Effective 05/01/24), as last amended by Laws of Utah 2023, Chapters 33, 139,
24 212, 354, and 530
25 63J-1-602.2 (Effective 05/01/24) (Superseded 07/01/24), as last amended by Laws of Utah
26 2023, Chapters 33, 34, 134, 139, 180, 212, 246, 330, 345, 354, and 534
27 63J-1-602.2 (Effective 07/01/24), as last amended by Laws of Utah 2023, Chapters 33, 34,
 S.B. 12 Enrolled Copy
28 134, 139, 180, 212, 246, 310, 330, 345, 354, and 534
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 59-2-1801 is amended to read:
32 59-2-1801 (Effective 05/01/24). Definitions.
33 As used in this part:
34 (1) "Abatement" means a tax abatement described in Section 59-2-1803.
35 (2) "Deferral" means a postponement of a tax due date or a tax notice charge granted in
36 accordance with Section 59-2-1802 or 59-2-1802.5.
37 (3) "Eligible owner" means an owner of an attached or a detached single-family residence:
38 (a) (i) who is 75 years old or older on or before December 31 of the year in which the
39 individual applies for a deferral under this part;
40 (ii) whose household income does not exceed 200% of the maximum household
41 income certified to a homeowner's credit described in Section 59-2-1208; and
42 (iii) whose household liquid resources do not exceed 20 times the amount of property
43 taxes levied on the owner's residence for the preceding calendar year; or
44 (b) that is a trust described in Section 59-2-1805 if the grantor of the trust is an
45 individual described in Subsection (3)(a).
46 (4) "Household" means the same as that term is defined in Section 59-2-1202.
47 (5) "Household income" means the same as that term is defined in Section 59-2-1202.
48 (6) "Household liquid resources" means the following resources that are not included in an
49 individual's household income and held by one or more members of the individual's
50 household:
51 (a) cash on hand;
52 (b) money in a checking or savings account;
53 (c) savings certificates; and
54 (d) stocks or bonds.
55 (7) "Indigent individual" [is] means a poor individual as described in Utah Constitution,
56 Article XIII, Section 3, Subsection (4), who:
57 (a) (i) is at least 65 years old; or
58 (ii) is less than 65 years old and:
59 (A) the county finds that extreme hardship would prevail on the individual if the
60 county does not defer or abate the individual's taxes; or
61 (B) the individual has a disability;
-2-
 Enrolled Copy S.B. 12
62 (b) has a total household income, as defined in Section 59-2-1202, of less than the
63 maximum household income certified to a homeowner's credit described in Section
64 59-2-1208;
65 (c) resides for at least 10 months of the year in the residence that would be subject to the
66 requested abatement or deferral; and
67 (d) cannot pay the tax assessed on the individual's residence when the tax becomes due.
68 (8) "Property taxes due" means the taxes due on an indigent individual's property:
69 (a) for which a county granted an abatement under Section 59-2-1803; and
70 (b) for the calendar year for which the county grants the abatement.
71 (9) "Property taxes paid" means an amount equal to the sum of:
72 (a) the amount of property taxes the indigent individual paid for the taxable year for
73 which the indigent individual applied for the abatement; and
74 (b) the amount of the abatement the county grants under Section 59-2-1803.
75 (10) "Relative" means a spouse, child, parent, grandparent, grandchild, brother, sister,
76 parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or a
77 spouse of any of these individuals.
78 (11) "Residence" means real property where an individual resides, including:
79 (a) a mobile home, as defined in Section 41-1a-102; or
80 (b) a manufactured home, as defined in Section 41-1a-102.
81 (12) "Tax notice charge" means the same as that term is defined in Section 59-2-1301.5.
82 Section 2. Section 59-2-1802 is amended to read:
83 59-2-1802 (Effective 05/01/24). Tax and tax notice charge deferral -- County
84 discretion to grant deferral -- Creation of lien and due date.
85 (1) (a) In accordance with this part and after receiving an application and giving notice
86 to the taxpayer, a county may grant a deferral [of a tax] on residential property.
87 (b) In determining whether to grant an application for a deferral under this section, a
88 county shall consider an asset transferred to a relative by an applicant for deferral, if
89 the transfer took place during the three years before the day on which the applicant
90 applied for deferral.
91 (2) A county may grant a deferral described in Subsection (1) at any time:
92 (a) after the holder of each mortgage or trust deed outstanding on the property gives
93 written approval of the application; and
94 (b) if the applicant is not the owner of income-producing assets that could be liquidated
95 to pay the tax.
-3-
 S.B. 12 Enrolled Copy
96 (3) (a) Taxes and tax notice charges deferred under this part accumulate with interest
97 and applicable recording fees as a lien against the residential property.
98 (b) A lien described in this Subsection (3) has the same legal status as a lien described in
99 Section 59-2-1325.
100 (c) To release the lien described in this Subsection (3), an owner shall pay the total
101 amount subject to the lien:
102 (i) upon the owner selling or otherwise disposing of the residential property; or
103 (ii) when the residential property is no longer the owner's primary residence.
104 (d) (i) Notwithstanding Subsection (3)(c), an owner that receives a deferral does not
105 have to pay the deferred taxes[ and] , deferred tax notice charges, or applicable
106 recording fees when the residential property transfers:
107 (A) to the owner's surviving spouse as a result of the owner's death; or
108 (B) between the owner and a trust described in Section 59-2-1805 for which the
109 owner is the grantor.
110 (ii) After the residential property transfers to the owner's surviving spouse, the
111 deferred taxes, deferred tax notice charges, and applicable recording fees are due:
112 (A) upon the surviving spouse selling or otherwise disposing of the residential
113 property; or
114 (B) when the residential property is no longer the surviving spouse's primary
115 residence.
116 (e) When the deferral period ends:
117 (i) the lien becomes due [as a property tax] and subject to the collection procedures
118 described in Section 59-2-1331; and
119 (ii) the date of levy is the date that the deferral period ends.
120 (4) (a) If a county grants an owner more than one deferral for the same single-family
121 residence, the county is not required to submit for recording more than one lien.
122 (b) Each subsequent deferral relates back to the date of the initial lien filing.
123 (5) (a) For each residential property for which the county grants a deferral, the treasurer
124 shall maintain a record that is an itemized account of the total amount of deferred
125 property taxes and deferred tax notice charges subject to the lien [for deferred
126 property taxes].
127 (b) The record described in this Subsection (5) is the official record of the amount of the
128 lien.
129 (6) Taxes and tax notice charges deferred under this part bear interest at a rate equal to 50%
-4-
 Enrolled Copy S.B. 12
130 of the rate described in Subsections 59-2-1331(2)(c) and (d).
131 Section 3. Section 59-2-1802.5 is amended to read:
132 59-2-1802.5 (Effective 05/01/24). Nondiscretionary tax and tax notice charge
133 deferral for elderly property owners.
134 (1) An eligible owner may apply for a deferral under this section if:
135 (a) the eligible owner uses the single-family residence as the eligible owner's primary
136 residence as of January 1 of the year for which the eligible owner applies for the
137 deferral;
138 (b) with respect to the single-family residence, there are no:
139 (i) delinquent property taxes;
140 (ii) delinquent tax notice charges; or
141 (iii) outstanding penalties, interest, or administrative costs related to a delinquent
142 property tax or a delinquent tax notice charge;
143 (c) (i) the value of the single-family residence for which the eligible owner applies
144 for the deferral is no greater than the median property value of:
145 (A) attached single-family residences within the county, if the single-family
146 residence is an attached single-family residence; or
147 (B) detached single-family residences within the county, if the single-family
148 residence is a detached single-family residence; or
149 (ii) the eligible owner has owned the single-family residence for a continuous 20-year
150 period as of January 1 of the year for which the eligible owner applies for the
151 deferral; and
152 (d) the holder of each mortgage or trust deed outstanding on the single-family residence
153 gives written approval of the deferral.
154 (2) If the conditions in Subsection (1) are satisfied and the applicant complies with the other
155 applicable provisions of this part[: (a)] , a county shall defer the property tax and tax
156 notice charges on an attached single-family residence or a detached single-family
157 residence for an application of deferral made on or after January 1, 2024[; and] .
158 [(b) a county may defer the property tax on an attached single-family residence or a
159 detached single-family residence for an application of deferral made before January
160 1, 2024.]
161 (3) The values described in Subsection (1)(c) are based on the county assessment roll for
162 the county in which the single-family residence is located.
163 (4) For purposes of Subsection (1)(c)(ii), ownership is considered continuous regardless of
-5-
 S.B. 12 Enrolled Copy
164 whether the single-family residence is transferred between an eligible owner who is an
165 individual and an eligible owner that is a trust.
166 (5) (a) Upon application from a county in a form prescribed by the commission, the
167 commission shall reimburse the county for the amount of any tax or tax notice charge
168 that the county defers in accordance with this section.
169 (b) The commission may not reimburse a county:
170 (i) before the county approves the deferral; or
171 (ii) for a tax or tax notice charge assessed after December 31, 2026.
172 (c) A county that receives money in accordance with this Subsection (5) shall:
173 (i) distribute the money to the taxing entities in the same proportion the county would
174 have distributed the revenue from the deferred tax and deferred tax notice charge;
175 and
176 (ii) repay the money no later than 30 days after the day on which the deferral lien is
177 satisfied.
178 (d) The commission shall deposit money received under Subsection (5)(c)(ii) into the
179 General Fund.
180 Section 4. Section 63I-2-263 is amended to read:
181 63I-2-263 (Effective 05/01/24). Repeal dates: Title 63A to Title 63N.
182 (1) Title 63A, Chapter 2, Part 5, Educational Interpretation and Translation Services
183 Procurement Advisory Council is repealed July 1, 2025.
184 (2) Section 63A-17-303 is repealed July 1, 2023.
185 (3) Section 63A-17-806 is repealed June 30, 2026.
186 (4) Title 63C, Chapter 22, Digital Wellness, Citizenship, and Safe Technology Commission
187 is repealed July 1, 2023.
188 (5) Section 63H-7a-303 is repealed July 1, 2024.
189 (6) Subsection 63H-7a-403(2)(b), regarding the charge to maintain the public safety
190 communications network, is repealed July 1, 2033.
191 (7) Subsection 63J-1-602.2(45), which lists appropriations to the State Tax Commission for[
192 property tax] deferral reimbursements, is repealed July 1, 2027.
193 (8) Subsection 63N-2-213(12)(a), relating to claiming a tax credit in the same taxable year
194 as the targeted business income tax credit, is repealed December 31, 2024.
195 (9) Title 63N, Chapter 2, Part 3, Targeted Business Income Tax Credit in an Enterprise
196 Zone, is repealed December 31, 2024.
197 Section 5. Section 63J-1-602.2 is amended to read:
-6-
 Enrolled Copy S.B. 12
198 63J-1-602.2 (Effective 05/01/24) (Superseded 07/01/24). List of nonlapsing
199 appropriations to programs.
200 Appropriations made to the following programs are nonlapsing:
201 (1) The Legislature and the Legislature's committees.
202 (2) The State Board of Education, including all appropriations to agencies, line items, and
203 programs under the jurisdiction of the State Board of Education, in accordance with
204 Section 53F-9-103.
205 (3) The Rangeland Improvement Act created in Section 4-20-101.
206 (4) The Percent-for-Art Program created in Section 9-6-404.
207 (5) The LeRay McAllister Working Farm and Ranch Fund created in Section 4-46-301.
208 (6) The Utah Lake Authority created in Section 11-65-201.
209 (7) Dedicated credits accrued to the Utah Marriage Commission as provided under
210 Subsection 17-16-21(2)(d)(ii).
211 (8) The Wildlife Land and Water Acquisition Program created in Section 23A-6-205.
212 (9) Sanctions collected as dedicated credits from Medicaid providers under Subsection
213 26B-3-108(7).
214 (10) The Emergency Medical Services Grant Program in Section 26B-4-107.
215 (11) The primary care grant program created in Section 26B-4-310.
216 (12) The Opiate Overdose Outreach Pilot Program created in Section 26B-4-512.
217 (13) The Utah Health Care Workforce Financial Assistance Program created in Section
218 26B-4-702.
219 (14) The Rural Physician Loan Repayment Program created in Section 26B-4-703.
220 (15) The Utah Medical Education Council for the:
221 (a) administration of the Utah Medical Education Program created in Section 26B-4-707;
222 (b) provision of medical residency grants described in Section 26B-4-711; and
223 (c) provision of the forensic psychiatric fellowship grant described in Section 26B-4-712.
224 (16) The Division of Services for People with Disabilities, as provided in Section 26B-6-402.
225 (17) Funds that the Department of Alcoholic Beverage Services retains in accordance with
226 Subsection 32B-2-301(8)(a) or (b).
227 (18) The General Assistance program administered by the Department of Workforce
228 Services, as provided in Section 35A-3-401.
229 (19) The Utah National Guard, created in Title 39A, National Guard and Militia Act.
230 (20) The Search and Rescue Financial Assistance Program, as provided in Section
231 53-2a-1102.
-7-
 S.B. 12 Enrolled Copy
232 (21)