Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                          S.B. 132
       6 Approved for Filing: G. Harb 6                                rd
                                                                     3 Sub. (Ivory)
         6 02-07-24 12:04 PM 6
                         Senator Derrin R. Owens proposes the following substitute bill:
                        PROPERTY TAX APPEALS AMENDMENTS
                                       2024 GENERAL SESSION
                                           STATE OF UTAH
                                Chief Sponsor: Derrin R. Owens
                                  House Sponsor:____________
 6
 LONG TITLE
 General Description:
        This bill modifies provisions related to property tax appeals.
 Highlighted Provisions:
        This bill:
        < authorizes counties to use certain local tax funds to pay for property tax refunds
 owed as a result of an objection to the assessment of property assessed by the State
 Tax Commission without voter approval;
        < modifies the time period for which new growth is calculated for centrally-assessed
 property;
        < changes the requirement for the State Tax Commission to stay a pending appeal
 under judicial review as an optional decision and modifies the criteria for which a
 stay of a pending appeal is authorized;
        < allows a taxing entity to impose a judgment levy for multiple tax years;                 3 rdSub. S.B. 132
        < extends the period of time in which the state or a taxing entity has to pay a taxpayer
 that receives a reduction in the amount of taxes owed following an appeal; and
        < makes technical changes.
 Money Appropriated in this Bill:
        None
     *SB0132S03*
       3rd Sub. (Ivory) S.B. 132                                                   02-07-24 12:04 PM
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 AMENDS:
        17-36-54, as last amended by Laws of Utah 2014, Chapter 176
        59-1-613, as enacted by Laws of Utah 2021, Chapter 238
        59-2-924, as last amended by Laws of Utah 2023, Chapter 502
        59-2-1330, as last amended by Laws of Utah 2015, Chapter 201
34
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 17-36-54 is amended to read:
        17-36-54. Tax stability and trust fund -- Use of principal -- Determination of
 necessity -- Election -- Exception.
        (1) [If] Except as provided in Subsection (2), if the legislative body of a county that has
 established a tax stability and trust fund under Section 17-36-51 determines that it is necessary
 for purposes of that county to use any portion of the principal of the fund, the county legislative
 body shall submit this proposition to the electorate of that county in a special election called
 and held in the manner provided for in Title 11, Chapter 14, Local Government Bonding Act,
 for the holding of bond elections.
        [(2)] (a) If the proposition is approved at the special election by a majority of the
 qualified electors of the county voting at the election, then that portion of the principal of the
 fund covered by the proposition may be transferred to the county general fund for use for
 purposes of that county.
        (2) (a) The requirements of Subsection (1) do not apply to the use of any portion of the
 principal of a tax stability and trust fund established under Section 17-36-51 for payment of
 any refund of property taxes owed by the county as a result of an objection to the assessment of
 property assessed by the State Tax Commission under Section 59-2-1007.
        (b) The legislative body of a county may, by ordinance or resolution, authorize the use
 of any portion of the tax stability and trust fund for the purpose described in Subsection (2)(a).
        Section 2. Section 59-1-613 is amended to read:
        59-1-613. Judicial review -- Optional stay of certain commission cases.
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       02-07-24 12:04 PM                                                   3rd Sub. (Ivory) S.B. 132
        (1) Unless all parties otherwise agree, upon request, the commission [shall] may stay
 an appeal of the valuation or equalization of real or personal property, if:
        (a) a commission decision on the valuation or equalization of real or personal property
 is under judicial review; [and]
        (b) the commission decision described in Subsection (1)(a) and the pending
 commission appeal involve the same:
        (i) taxpayer;
        (ii) legal issue or valuation principle; and
        (iii) to a material degree, facts[.]; and
        (c) the commission determines that a decision to not stay the appeal is likely to have a
 material influence on the outcome of the pending commission appeal.
        (2) An appeal stayed in accordance with Subsection (1) is stayed until the court issues a
 final decision after judicial review of the commission decision.
        Section 3. Section 59-2-924 is amended to read:
        59-2-924. Definitions -- Report of valuation of property to county auditor and
 commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax
 rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
 commission.
        (1) As used in this section:
        (a) (i) "Ad valorem property tax revenue" means revenue collected in accordance with
 this chapter.
        (ii) "Ad valorem property tax revenue" does not include:
        (A) interest;
        (B) penalties;
        (C) collections from redemptions; or
        (D) revenue received by a taxing entity from personal property that is semiconductor
 manufacturing equipment assessed by a county assessor in accordance with Part 3, County
 Assessment.
        (b) "Adjusted tax increment" means the same as that term is defined in Section
 17C-1-102.
        (c) (i) "Aggregate taxable value of all property taxed" means:
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        3rd Sub. (Ivory) S.B. 132                                                 02-07-24 12:04 PM
         (A) the aggregate taxable value of all real property a county assessor assesses in
 accordance with Part 3, County Assessment, for the current year;
         (B) the aggregate taxable value of all real and personal property the commission
 assesses in accordance with Part 2, Assessment of Property, for the current year; and
         (C) the aggregate year end taxable value of all personal property a county assessor
 assesses in accordance with Part 3, County Assessment, contained on the prior year's tax rolls
 of the taxing entity.
         (ii) "Aggregate taxable value of all property taxed" does not include the aggregate year
 end taxable value of personal property that is:
         (A) semiconductor manufacturing equipment assessed by a county assessor in
 accordance with Part 3, County Assessment; and
         (B) contained on the prior year's tax rolls of the taxing entity.
         (d) "Base taxable value" means:
         (i) for an authority created under Section 11-58-201, the same as that term is defined in
 Section 11-58-102;
         (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
 the same as that term is defined in Section 11-59-207;
         (iii) for an agency created under Section 17C-1-201.5, the same as that term is defined
 in Section 17C-1-102;
         (iv) for an authority created under Section 63H-1-201, the same as that term is defined
 in Section 63H-1-102;
         (v) for a host local government, the same as that term is defined in Section 63N-2-502;
 or
         (vi) for a housing and transit reinvestment zone created under Title 63N, Chapter 3,
 Part 6, Housing and Transit Reinvestment Zone Act, a property's taxable value as shown upon
 the assessment roll last equalized during the base year, as that term is defined in Section
 63N-3-602.
         (e) "Centrally assessed benchmark value" means an amount equal to the [highest]
 average year end taxable value of real and personal property the commission assesses in
 accordance with Part 2, Assessment of Property, for [a previous calendar year that begins on or
 after January 1, 2015] the previous three calendar years, adjusted for taxable value attributable
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        02-07-24 12:04 PM                                                   3rd Sub. (Ivory) S.B. 132
 to:
        (i) an annexation to a taxing entity;
        (ii) an incorrect allocation of taxable value of real or personal property the commission
 assesses in accordance with Part 2, Assessment of Property; or
        (iii) a change in value as a result of a change in the method of apportioning the value
 prescribed by the Legislature, a court, or the commission in an administrative rule or
 administrative order.
        (f) (i) "Centrally assessed new growth" means the greater of:
        (A) zero; or
        (B) the amount calculated by subtracting the centrally assessed benchmark value
 [adjusted for prior year end incremental value] from the taxable value of real and personal
 property the commission assesses in accordance with Part 2, Assessment of Property, for the
 current year, adjusted for current year incremental value.
        (ii) "Centrally assessed new growth" does not include a change in value as a result of a
 change in the method of apportioning the value prescribed by the Legislature, a court, or the
 commission in an administrative rule or administrative order.
        (g) "Certified tax rate" means a tax rate that will provide the same ad valorem property
 tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
        (h) "Community reinvestment agency" means the same as that term is defined in
 Section 17C-1-102.
        (i) "Eligible new growth" means the greater of:
        (i) zero; or
        (ii) the sum of:
        (A) locally assessed new growth;
        (B) centrally assessed new growth; and
        (C) project area new growth or hotel property new growth.
        (j) "Host local government" means the same as that term is defined in Section
 63N-2-502.
        (k) "Hotel property" means the same as that term is defined in Section 63N-2-502.
        (l) "Hotel property new growth" means an amount equal to the incremental value that
 is no longer provided to a host local government as incremental property tax revenue.
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        3rd Sub. (Ivory) S.B. 132                                                  02-07-24 12:04 PM
         (m) "Incremental property tax revenue" means the same as that term is defined in
 Section 63N-2-502.
         (n) "Incremental value" means:
         (i) for an authority created under Section 11-58-201, the amount calculated by
 multiplying:
         (A) the difference between the taxable value and the base taxable value of the property
 that is located within a project area and on which property tax differential is collected; and
         (B) the number that represents the percentage of the property tax differential that is
 paid to the authority;
         (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
 an amount calculated by multiplying:
         (A) the difference between the current assessed value of the property and the base
 taxable value; and
         (B) the number that represents the percentage of the property tax augmentation, as
 defined in Section 11-59-207, that is paid to the Point of the Mountain State Land Authority;
         (iii) for an agency created under Section 17C-1-201.5, the amount calculated by
 multiplying:
         (A) the difference between the taxable value and the base taxable value of the property
 located within a project area and on which tax increment is collected; and
         (B) the number that represents the adjusted tax increment from that project area that is
 paid to the agency;
         (iv) for an authority created under Section 63H-1-201, the amount calculated by
 multiplying:
         (A) the difference between the taxable value and the base taxable value of the property
 located within a project area and on which property tax allocation is collected; and
         (B) the number that represents the percentage of the property tax allocation from that
 project area that is paid to the authority;
         (v) for a housing and transit reinvestment zone created pursuant to Title 63N, Chapter
 3, Part 6, Housing and Transit Reinvestment Zone Act, an amount calculated by multiplying:
         (A) the difference between the taxable value and the base taxable value of the property
 that is located within a housing and transit reinvestment zone and on which tax increment is
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        02-07-24 12:04 PM                                                  3rd Sub. (Ivory) S.B. 132
 collected; and
        (B) the number that represents the percentage of the tax increment that is paid to the
 housing and transit reinvestment zone;
        (vi) for a host local government, an amount calculated by multiplying:
        (A) the difference between the taxable value and the base taxable value of the hotel
 property on which incremental property tax revenue is collected; and
        (B) the number that represents the percentage of the incremental property tax revenue
 from that hotel property that is paid to the host local government; or
        (vii) for the State Fair Park Authority created in Section 11-68-201, the taxable value
 of:
        (A) fair park land, as defined in Section 11-68-101, that is subject to a privilege tax
 under Section 11-68-402; or
        (B) personal property located on property that is subject to the privilege tax described
 in Subsection (1)(n)(vii)(A).
        (o) (i) "Locally assessed new growth" means the greater of:
        (A) zero; or
        (B) the amount calculated by subtracting the year end taxable value of real property the
 county assessor assesses in accordance with Part 3, County Assessment, for the previous year,
 adjusted for prior year end incremental value from the taxable value of real property the county
 assessor assesses in accordance with Part 3, County Assessment, for the current year, adjusted
 for current year incremental value.
        (ii) "Locally assessed new growth" does not include a change in:
        (A) value as a result of factoring in accordance with Section 59-2-704, reappraisal, or
 another adjustment;
        (B) assessed value based on whether a property is allowed a residential exemption for a
 primary residence under Section 59-2-103;
        (C) assessed value based on whether a property is assessed under Part 5, Farmland
 Assessment Act; or
        (D) assessed value based on whether a property is assessed under Part 17, Urban
 Farming Assessment Act.
        (p) "Project area" means:
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        3rd Sub. (Ivory) S.B. 132                                                 02-07-24 12:04 PM
        (i) for an authority created under Section 11-58-201, the same as that term is defined in
 Section 11-58-102;
        (ii) for an agency created under Section 17C-1-201.5, the same as that term is defined
 in Section 17C-1-102; or
        (iii) for an authority created under Section 63H-1-201, the same as that term is defined
 in Section 63H-1-102.
        (q) "Project area new growth" means:
        (i) for an authority created under Section 11-58-201, an amount equal to the
 incremental value that is no longer provided to an authority as property tax differential;
        (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
 an amount equal to the incremental value that is no longer provided to the Point of the
 Mountain State Land Authority as property tax augmentation, as defined in Section 11-59-207;
        (iii) for an agency created under Section 17C-1-201.5, an amount equal to the
 incremental value that is no longer provided to an agency as tax increment;
        (iv) for an authority created under Section 63H-1-201, an amount equal to the
 incremental value that is no longer provided to an authority as property tax allocation; or
        (v) for a housing and transit reinvestment zone created under Title 63N, Chapter 3, Part
 6, Housing and Transit Reinvestment Zone Act, an amount equal to the incremental value that
 is no longer provided to a housing and transit reinvestment zone as tax increment.
        (r) "Project area incremental revenue" means the same as that term is defined in
 Section 17C-1-1001.
        (s) "Property tax allocation" means the same as that term is defined in Section
 63H-1-102.
        (t) "Property tax differential" means the same as that term is defined in Section
 11-58-102.
        (u) "Qualifying exempt revenue" means revenue received:
        (i) for the previous calendar year;
        (ii) by a taxing entity;
        (iii) from tangible personal property contained on the prior year's tax rolls that is
 exempt from property tax under Subsection 59-2-1115(2)(b) for a calendar ye