Enrolled Copy S.B. 165
1 TITLE RECORDING NOTICE REQUIREMENTS AMENDMENTS
2024 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper House Sponsor: Jeffrey D. Stenquist
2
3 LONG TITLE
4 General Description:
5 This bill modifies notice requirements related to real property.
6 Highlighted Provisions:
7 This bill:
8 ▸ requires that a county maintain a system for a property owner to elect to receive
9 electronic notification when the county recorder records a deed or a mortgage on the owner's
10 property;
11 ▸ describes the method by which a property owner may elect to receive the electronic
12 notice; and
13 ▸ requires that a county treasurer provide instructions notice in the tax describing how an
14 owner can elect to receive the electronic notice.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 AMENDS:
21 17-21-6, as last amended by Laws of Utah 2014, Chapter 22
22 59-2-919, as last amended by Laws of Utah 2023, Chapters 16, 435
23 59-2-1317, as last amended by Laws of Utah 2023, Chapters 16, 505
24
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 17-21-6 is amended to read:
27 17-21-6 . General duties of recorder -- Records and indexes.
28 (1) Each recorder shall:
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29 (a) keep an entry record, in which the recorder shall, upon acceptance and recording of
30 any instrument, enter the instrument in the order of its recording, the names of the
31 parties to the instrument, its date, the hour, the day of the month and the year of
32 recording, and a brief description, and endorse upon each instrument a number
33 corresponding with the number of the entry;
34 (b) keep a grantors' index, in which the recorder shall index deeds and final judgments or
35 decrees partitioning or affecting the title to or possession of real property, which shall
36 show the entry number of the instrument, the name of each grantor in alphabetical
37 order, the name of the grantee, the date of the instrument, the time of recording, the
38 kind of instrument, the book and page, and a brief description;
39 (c) keep a grantees' index, in which the recorder shall index deeds and final judgments or
40 decrees partitioning or affecting the title to or possession of real property, which shall
41 show the entry number of the instrument, the name of each grantee in alphabetical
42 order, the name of the grantor, the date of the instrument, the time of recording, the
43 kind of instrument, the book and page, and a brief description;
44 (d) keep a mortgagors' index, in which the recorder shall enter all mortgages, deeds of
45 trust, liens, and other instruments in the nature of an encumbrance upon real estate,
46 which shall show the entry number of the instrument, the name of each mortgagor,
47 debtor, or person charged with the encumbrance in alphabetical order, the name of
48 the mortgagee, lien holder, creditor, or claimant, the date of the instrument, the time
49 of recording, the instrument, consideration, the book and page, and a brief description;
50 (e) keep a mortgagees' index, in which the recorder shall enter all mortgages, deeds of
51 trust, liens, and other instruments in the nature of an encumbrance upon real estate,
52 which shall show the entry number of the instrument, the name of each mortgagee,
53 lien holder, creditor, or claimant, in alphabetical order, the name of the mortgagor or
54 person charged with the encumbrance, the date of the instrument, the time of
55 recording, the kind of instrument, the consideration, the book and page, and a brief
56 description;
57 (f) subject to [Subsection (3)] Subsection (4), keep a tract index, which shall show by
58 description every instrument recorded, the date and the kind of instrument, the time
59 of recording, and the book and page and entry number;
60 (g) keep an index of recorded maps, plats, and subdivisions;
61 (h) keep an index of powers of attorney showing the date and time of recording, the
62 book, the page, and the entry number;
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63 (i) keep a miscellaneous index, in which the recorder shall enter all instruments of a
64 miscellaneous character not otherwise provided for in this section, showing the date
65 of recording, the book, the page, the entry number, the kind of instrument, from, to,
66 and the parties;
67 (j) keep an index of judgments showing the judgment debtors, the judgment creditors,
68 the amount of judgment, the date and time of recording, the satisfaction, and the
69 book, the page, and the entry number;
70 (k) keep a general recording index in which the recorder shall index all executions and
71 writs of attachment, and any other instruments not required by law to be spread upon
72 the records, and in separate columns the recorder shall enter the names of the
73 plaintiffs in the execution and the names of the defendants in the execution;[ and]
74 (l) keep an index of water right numbers that are included on an instrument recorded on
75 or after May 13, 2014, showing the date and time of recording, the book and the page
76 or the entry number, and the kind of instrument[.] ; and
77 (m) beginning January 1, 2025:
78 (i) maintain a system that allows a property owner to receive, upon the property
79 owner's election, an electronic notice when the county recorder records a deed or
80 mortgage, as defined in Section 70D-1-102, on the property owner's real property;
81 and
82 (ii) if a property owner elects to receive electronic notice as described in Subsection
83 (1)(m)(i), within 30 days after the day on which the county recorder records a
84 deed or a mortgage as defined in Section 70D-1-102 on real property, provide an
85 electronic notice of the recording to each property owner.
86 (2) Upon request, a county recorder may provide the notice described in Subsection
87 (1)(m)(ii) to a property owner by a means other than electronic.
88 (3) Subsection (1)(m) applies only to real property for which the county treasurer provides
89 a tax notice described in Section 59-2-1317.
90 [(2)] (4) The recorder shall alphabetically arrange the indexes required by this section and
91 keep a reverse index.
92 [(3)] (5) (a) The tract index required by Subsection (1)(f) shall be kept so that it shows a
93 true chain of title to each tract or parcel, together with each encumbrance on the tract
94 or parcel, according to the records of the office.
95 (b) A recorder shall abstract an instrument in the tract index unless:
96 (i) the instrument is required to contain a legal description under Section 17-21-20 or
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97 Section 57-3-105 and does not contain that legal description; or
98 (ii) the instrument contains errors, omissions, or defects to the extent that the tract or
99 parcel to which the instrument relates cannot be determined.
100 (c) If a recorder abstracts an instrument in the tract index or another index required by
101 this section, the recorder may:
102 (i) use a tax parcel number;
103 (ii) use a site address;
104 (iii) reference to other instruments of record recited on the instrument; or
105 (iv) reference another instrument that is recorded concurrently with the instrument.
106 (d) A recorder is not required to go beyond the face of an instrument to determine the
107 tract or parcel to which an instrument may relate.
108 (e) A person may not bring an action against a recorder for injuries or damages suffered
109 as a result of information contained in an instrument recorded in a tract index or other
110 index that is required by this section despite errors, omissions, or defects in the
111 instrument.
112 (f) The fact that a recorded instrument described in Subsection (3)(e) is included in the
113 tract index does not cure a failure to give public notice caused by an error, omission,
114 or defect.
115 (g) A document that is indexed in all or part of the indexes required by this section shall
116 give constructive notice.
117 [(4)] (6) Nothing in this section prevents the recorder from using a single name index if that
118 index includes all of the indexes required by this section.
119 Section 2. Section 59-2-919 is amended to read:
120 59-2-919 . Notice and public hearing requirements for certain tax increases --
121 Exceptions.
122 (1) As used in this section:
123 (a) "Additional ad valorem tax revenue" means ad valorem property tax revenue
124 generated by the portion of the tax rate that exceeds the taxing entity's certified tax
125 rate.
126 (b) "Ad valorem tax revenue" means ad valorem property tax revenue not including
127 revenue from:
128 (i) eligible new growth as defined in Section 59-2-924; or
129 (ii) personal property that is:
130 (A) assessed by a county assessor in accordance with Part 3, County Assessment;
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131 and
132 (B) semiconductor manufacturing equipment.
133 (c) "Calendar year taxing entity" means a taxing entity that operates under a fiscal year
134 that begins on January 1 and ends on December 31.
135 (d) "County executive calendar year taxing entity" means a calendar year taxing entity
136 that operates under the county executive-council form of government described in
137 Section 17-52a-203.
138 (e) "Current calendar year" means the calendar year immediately preceding the calendar
139 year for which a calendar year taxing entity seeks to levy a tax rate that exceeds the
140 calendar year taxing entity's certified tax rate.
141 (f) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year that
142 begins on July 1 and ends on June 30.
143 (g) "Last year's property tax budgeted revenue" does not include revenue received by a
144 taxing entity from a debt service levy voted on by the public.
145 (2) A taxing entity may not levy a tax rate that exceeds the taxing entity's certified tax rate
146 unless the taxing entity meets:
147 (a) the requirements of this section that apply to the taxing entity; and
148 (b) all other requirements as may be required by law.
149 (3) (a) Subject to Subsection (3)(b) and except as provided in Subsection (5), a calendar
150 year taxing entity may levy a tax rate that exceeds the calendar year taxing entity's
151 certified tax rate if the calendar year taxing entity:
152 (i) 14 or more days before the date of the regular general election or municipal
153 general election held in the current calendar year, states at a public meeting:
154 (A) that the calendar year taxing entity intends to levy a tax rate that exceeds the
155 calendar year taxing entity's certified tax rate;
156 (B) the dollar amount of and purpose for additional ad valorem tax revenue that
157 would be generated by the proposed increase in the certified tax rate; and
158 (C) the approximate percentage increase in ad valorem tax revenue for the taxing
159 entity based on the proposed increase described in Subsection (3)(a)(i)(B);
160 (ii) provides notice for the public meeting described in Subsection (3)(a)(i) in
161 accordance with Title 52, Chapter 4, Open and Public Meetings Act, including
162 providing a separate item on the meeting agenda that notifies the public that the
163 calendar year taxing entity intends to make the statement described in Subsection
164 (3)(a)(i);
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165 (iii) meets the advertisement requirements of Subsections (6) and (7) before the
166 calendar year taxing entity conducts the public hearing required by Subsection
167 (3)(a)(v);
168 (iv) provides notice by mail:
169 (A) seven or more days before the regular general election or municipal general
170 election held in the current calendar year; and
171 (B) as provided in Subsection (3)(c); and
172 (v) conducts a public hearing that is held:
173 (A) in accordance with Subsections (8) and (9); and
174 (B) in conjunction with the public hearing required by Section 17-36-13 or
175 17B-1-610.
176 (b) (i) For a county executive calendar year taxing entity, the statement described in
177 Subsection (3)(a)(i) shall be made by the:
178 (A) county council;
179 (B) county executive; or
180 (C) both the county council and county executive.
181 (ii) If the county council makes the statement described in Subsection (3)(a)(i) or the
182 county council states a dollar amount of additional ad valorem tax revenue that is
183 greater than the amount of additional ad valorem tax revenue previously stated by
184 the county executive in accordance with Subsection (3)(a)(i), the county executive
185 calendar year taxing entity shall:
186 (A) make the statement described in Subsection (3)(a)(i) 14 or more days before
187 the county executive calendar year taxing entity conducts the public hearing
188 under Subsection (3)(a)(v); and
189 (B) provide the notice required by Subsection (3)(a)(iv) 14 or more days before
190 the county executive calendar year taxing entity conducts the public hearing
191 required by Subsection (3)(a)(v).
192 (c) The notice described in Subsection (3)(a)(iv):
193 (i) shall be mailed to each owner of property:
194 (A) within the calendar year taxing entity; and
195 (B) listed on the assessment roll;
196 (ii) shall be printed on a separate form that:
197 (A) is developed by the commission;
198 (B) states at the top of the form, in bold upper-case type no smaller than 18 point
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199 "NOTICE OF PROPOSED TAX INCREASE"; and
200 (C) may be mailed with the notice required by Section 59-2-1317;
201 (iii) shall contain for each property described in Subsection (3)(c)(i):
202 (A) the value of the property for the current calendar year;
203 (B) the tax on the property for the current calendar year; and
204 (C) subject to Subsection (3)(d), for the calendar year for which the calendar year
205 taxing entity seeks to levy a tax rate that exceeds the calendar year taxing
206 entity's certified tax rate, the estimated tax on the property;
207 (iv) shall contain the following statement:
208 "[Insert name of taxing entity] is proposing a tax increase for [insert applicable calendar
209 year]. This notice contains estimates of the tax on your property and the proposed tax increase
210 on your property as a result of this tax increase. These estimates are calculated on the basis of
211 [insert previous applicable calendar year] data. The actual tax on your property and proposed
212 tax increase on your property may vary from this estimate.";
213 (v) shall state the date, time, and place of the public hearing described in Subsection
214 (3)(a)(v);[ and]
215 (vi) may contain other property tax information approved by the commission[.] ; and
216 (vii) if sent in calendar year 2024, 2025, or 2026, shall contain:
217 (A) notice that the taxpayer may request electronic notice as described in
218 Subsection 17-21-6(1)(m); and
219 (B) instructions describing how to elect to receive a notice as described in
220 Subsection 17-21-6(1)(m).
221 (d) For purposes of Subsection (3)(c)(iii)(C), a calendar year taxing entity shall calcu