Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                            H.B. 511
Approved for Filing: A.V. Arthur 6
         6 02-08-24 11:08 AM 6
                            HOME OWNERSHIP MODIFICATIONS
                                      2024 GENERAL SESSION
                                           STATE OF UTAH
                              Chief Sponsor: Gay Lynn Bennion
                                 Senate Sponsor: ____________
 6
 LONG TITLE
 General Description:
        This bill modifies provisions related to the reporting of information when applying for a
 local business license.
 Highlighted Provisions:
        This bill:
        < requires a municipality or a county to collect information regarding single family
 home ownership when issuing a business license; and
        < establishes reporting requirements.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 ENACTS:
        10-1-203.1, Utah Code Annotated 1953
        17-53-216.1, Utah Code Annotated 1953
24
 Be it enacted by the Legislature of the state of Utah:
                                                                                                        H.B. 511
        Section 1. Section 10-1-203.1 is enacted to read:
        10-1-203.1. Home ownership information required to be collected with a business
     *HB0511*
       H.B. 511                                                                  02-08-24 11:08 AM
 license.
        (1) As used in this section:
        (a) "High ownership" means a single individual or entity reports income or loss from
 the rental of 50 or more single family homes in the state.
        (b) "Medium ownership" means a single individual or entity reports income or loss
 from the rental of at least 10 but fewer than 50 single family homes in the state.
        (c) "Ownership type" means:
        (i) a corporation;
        (ii) an individual; or
        (iii) a pass-through entity.
        (d) "Pass-through entity" means the same as that term is defined in Section
 59-10-1402.
        (e) "Pass-through entity taxpayer" means the same as that term is defined in Section
 59-10-1402.
        (f) (i) "Single family home" means an attached or a detached residential structure,
 designed to be occupied by an individual household.
        (ii) "Single family home" does not include an apartment.
        (2) (a) A municipality that issues or renews a business license to rent a single family
 home shall collect the information described in Subsection (3) as part of the license
 application.
        (b) If the applicant fails to provide the information described in Subsection (3), the
 municipality shall deny the business license until the municipality receives the information.
        (3) An applicant for a business license to rent a single family home shall include in the
 application:
        (a) the parcel identification number for each single family home used as a rental;
        (b) the name and identifying information of the corporation, pass-through entity,
 pass-through entity taxpayer, or individual who receives income or loss from the rental; and
        (c) the parcel number of the single family homes used as rentals for less than 30
 consecutive days for a majority of the rental periods during the calendar year.
        (4) A municipality that issues a business license, on or after May 1, 2024, to rent a
 single family home shall report the information to the Utah League of Cities and Towns.
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       02-08-24 11:08 AM                                                                    H.B. 511
        (5) On or before October 1, the Utah League of Cities and Towns shall report to the
 Economic Development and Workforce Services Interim Committee the following
 information, as reported by the municipalities:
        (a) the aggregate number of:
        (i) medium ownership single family homes by owner type; and
        (ii) high ownership single family homes by owner type; and
        (b) (i) the aggregate number of single family homes used for rentals for less than 30
 consecutive days by owner type; and
        (ii) the aggregate number of single family homes used for rentals of 30 consecutive
 days or more by owner type.
        (6) The Utah League of Cities and Towns shall include with the report the name of any
 municipality, if known, that does not comply with the requirements of this section.
        (7) The Utah League of Cities and Towns shall provide access to the information
 reported by a municipality to the Legislature, including the Office of Legislative Research and
 General Counsel or the Office of the Legislative Fiscal Analyst.
        Section 2. Section 17-53-216.1 is enacted to read:
        17-53-216.1. Home ownership information required to be collected with a
 business license.
        (1) As used in this section:
        (a) "High ownership" means a single individual or entity reports income or loss from
 the rental of 50 or more single family homes in the state.
        (b) "Medium ownership" means a single individual or entity reports income or loss
 from the rental of at least 10 but fewer than 50 single family homes in the state.
        (c) "Ownership type" means:
        (i) a corporation;
        (ii) an individual; or
        (iii) a pass-through entity.
        (d) "Pass-through entity" means the same as that term is defined in Section
 59-10-1402.
        (e) "Pass-through entity taxpayer" means the same as that term is defined in Section
 59-10-1402.
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        H.B. 511                                                                 02-08-24 11:08 AM
        (f) (i) "Single family home" means an attached or a detached residential structure,
 designed to be occupied by an individual household.
        (ii) "Single family home" does not include an apartment.
        (2) (a) A county that issues or renews a business license, on or after May 1, 2024, to
 rent a single family home shall collect the information described in Subsection (3) as part of
 the license application.
        (b) If the applicant fails to provide the information described in Subsection (3), the
 county shall deny the business license until the county receives the information.
        (3) An applicant for a business license to rent a single family home shall include in the
 application:
        (a) the parcel identification number for each single family home used as a rental;
        (b) the name and identifying information of the corporation, pass-through entity,
 pass-through entity taxpayer, or individual who receives income or loss from the rental; and
        (c) the parcel number of the single family homes used as rentals for less than 30
 consecutive days for a majority of the rental periods during the calendar year.
        (4) A county that issues a business license to rent a single family home shall report the
 information to the Utah Association of Counties.
        (5) On or before October 1, the Utah Association of Counties shall report to the
 Economic Development and Workforce Services Interim Committee the following
 information, as reported by the counties:
        (a) the aggregate number of:
        (i) medium ownership single family homes by owner type; and
        (ii) high ownership single family homes by owner type; and
        (b) (i) the aggregate number of single family homes used for rentals for less than 30
 consecutive days by owner type; and
        (ii) the aggregate number of single family homes used for rentals of 30 consecutive
 days or more by owner type.
        (6) The Utah Association of Counties shall include with the report the name of any
 county, if known, that does not comply with the requirements of this section.
        (7) The Utah Association of Counties shall provide access to the information reported
 by a county to the Legislature, including the Office of Legislative Research and General
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       02-08-24 11:08 AM                                         H.B. 511
 Counsel or the Office of the Legislative Fiscal Analyst.
        Section 3. Effective date.
        This bill takes effect on May 1, 2024.
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