Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                               S.B. 58
Approved for Filing: A.V. Arthur 6                            1st Sub. (Green)
          6 01-17-24 4:12 PM 6
                          Senator Keith Grover proposes the following substitute bill:
                PROPERTY TAX ADMINISTRATION AMENDMENTS
                                       2024 GENERAL SESSION
                                           STATE OF UTAH
                                  Chief Sponsor: Keith Grover
                                 House Sponsor: ____________
 6
 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 limits the information a county
 assessor may obtain 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.                                                1st Sub. S.B. 58
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        None
 Utah Code Sections Affected:
     *SB0058S01*
       1st Sub. (Green) S.B. 58                                                   01-17-24 4:12 PM
 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
29
 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;
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       01-17-24 4:12 PM                                                    1st Sub. (Green) S.B. 58
        (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.
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        1st Sub. (Green) S.B. 58                                                    01-17-24 4:12 PM
         (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;
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        01-17-24 4:12 PM                                                     1st Sub. (Green) S.B. 58
        (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) (i) In addition to the declaration, a county assessor may request from an owner:
        (A) a current lease agreement signed by the tenant;
        (B) a copy of a filing from the most recent federal tax return showing that the owner
 had profit or loss from the residential property as a rental; or
        (C) a copy of the real estate insurance policy for the property.
        (ii) A county assessor may not request information from an owner's tenant.
        [(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:
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        1st Sub. (Green) S.B. 58                                                    01-17-24 4:12 PM
        (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;
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        01-17-24 4:12 PM                                                       1st Sub. (Green) S.B. 58
         (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
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        1st Sub. (Green) S.B. 58                                                     01-17-24 4:12 PM
         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 p