Property Tax Relief Amendments

122
59-2-919.1
59-2-924
59-2-1317
59-2-1365
59-2-1601
59-2-1602
59-2a-101
59-2a-102
59-2a-108
59-2a-109
59-2a-112
59-2a-113
59-2a-114
59-2a-201
59-2a-202
59-2a-203
59-2a-204
59-2a-205
59-2a-206
59-2a-301
59-2a-302
59-2a-303
59-2a-304
59-2a-305
59-2a-401
59-2a-402
59-2a-701
59-2a-702
59-2a-801
59-2a-802
59-2a-901
59-2a-902
59-2a-903
63J-1-602.2
SB0078
SB0206
59-2-1602 (05/06/26)
45
0
Property Tax Relief Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Daniel McCay
House Sponsor: R. Neil Walter
LONG TITLE
General Description:
This bill modifies property tax relief provisions.
Highlighted Provisions:
This bill:
defines terms;
authorizes counties to provide certain property tax relief to qualifying individuals through
a country relief program;
establishes notice and public hearing requirements before a county may approve a county
relief program by ordinance;
requires a county to impose a separate county relief levy for the relief the county provides
through a county relief program;
changes the qualifications, scope, duration, and interest rate applicable to the
nondiscretionary deferral program;
authorizes the Multicounty Appraisal Trust to make loans to counties to pay the costs of
granting nondiscretionary deferrals;
repeals certain property tax relief programs;
includes a coordination clause to incorporate changes to Section 59-2-1602 in S.B. 206,
Tax Amendments; and
makes technical and conforming changes.
Money Appropriated in this Bill:
This bill appropriates
$1,148,000
in operating and capital budgets for fiscal year 2027, all
of which is from the General Fund.
Other Special Clauses:
This bill provides a special effective date.
This bill provides a coordination clause.
Utah Code Sections Affected:
AMENDS:
59-2-919.1
Effective
01/01/27
, as last amended by Laws of Utah 2025, Chapter 518
59-2-924
Effective
01/01/27
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
59-2-1317
Effective
01/01/27
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
59-2-1365
Effective
01/01/27
, as last amended by Laws of Utah 2018, Chapter 197
59-2-1601
Effective
01/01/27
, as last amended by Laws of Utah 2024, Chapter 263
59-2-1602
Effective
01/01/27
, as last amended by Laws of Utah 2025, Chapters 337,
484
59-2a-101
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-102
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-108
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-109
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-902
Effective
01/01/27
, as enacted by Laws of Utah 2025, Chapter 172
63J-1-602.2
Effective
01/01/27
Partially Repealed
07/01/29
, as last amended by Laws
of Utah 2025, First Special Session, Chapter 17
ENACTS:
59-2a-112
Effective
01/01/27
, Utah Code Annotated 1953
59-2a-113
Effective
01/01/27
, Utah Code Annotated 1953
59-2a-114
Effective
01/01/27
, Utah Code Annotated 1953
REPEALS AND REENACTS:
59-2a-901
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
REPEALS:
59-2a-201
Effective
01/01/27
, as enacted by Laws of Utah 2025, Chapter 172
59-2a-202
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-203
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-204
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-205
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-206
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-301
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-302
Effective
01/01/27
, as enacted by Laws of Utah 2025, Chapter 172
59-2a-303
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-304
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-305
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-401
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-402
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-701
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-702
Effective
01/01/27
, as enacted by Laws of Utah 2025, Chapter 172
59-2a-801
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-802
Effective
01/01/27
, as enacted by Laws of Utah 2025, Chapter 172
59-2a-903
Effective
01/01/27
, as enacted by Laws of Utah 2025, Chapter 172
Utah Code Sections Affected by Coordination Clause:
59-2-1602
, as last amended by Laws of Utah 2024, Chapter 263
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
59-2-919.1
is amended to read:
59-2-919.1
Effective
01/01/27
. Notice of property valuation and tax changes.
(1)
In addition to the notice requirements of Section
59-2-919
, the county auditor, on or
before July 22 of each year, shall notify each owner of real estate who is listed on the
assessment roll.
(2)
The notice described in Subsection
(1)
shall:
(a)
except as provided in Subsection
(5)
, be sent to all owners of real property by mail
10 or more days before the day on which:
(i)
the county board of equalization meets; and
(ii)
the taxing entity holds a public hearing on the proposed increase in the certified
tax rate;
(b)
be on a form that is:
(i)
approved by the commission; and
(ii)
uniform in content in all counties in the state; and
(c)
contain for each property:
(i)
the assessor's determination of the value of the property;
(ii)
the taxable value of the property;
(iii)
for property assessed by the county assessor:
(A)
instructions on how the taxpayer may file an application with the county
board of equalization to appeal the valuation or equalization of the property
under Section
59-2-1004
, including instructions for filing an application
through electronic means; and
(B)
the deadline for the taxpayer to make an application to appeal the valuation or
equalization of the property under Section
59-2-1004
;
(iv)
for property assessed by the commission:
(A)
instructions on how the taxpayer may file an application with the commission
for a hearing on an objection to the valuation or equalization of the property
under Section
59-2-1007
;
(B)
the deadline for the taxpayer to apply to the commission for a hearing on an
objection to the valuation or equalization of the property under Section
59-2-1007
; and
(C)
a statement that the taxpayer may not appeal the valuation or equalization of
the property to the county board of equalization;
(v)
itemized tax information for all applicable taxing entities, including:
(A)
the dollar amount of the taxpayer's tax liability for the property in the prior
year; and
(B)
the dollar amount of the taxpayer's tax liability under the current rate;
(vi)
the following, stated separately:
(A)
the charter school levy described in Section
53F-2-703
;
(B)
the multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
(C)
the county assessing and collecting levy described in Subsection
59-2-1602(4)
;
(D)
levies for debt service voted on by the public;
(E)
levies imposed for special purposes under Section
10-6-133.4
;
(F)
the minimum basic tax rate as defined in Section
53F-2-301
; and
(G)
if applicable, the annual payment described in Subsection
63H-1-501(4)(a)
;
(vii)
the tax impact on the property;
(viii)
the date, time, and place of the required public hearing for each entity;
(ix)
property tax information pertaining to:
(A)
taxpayer relief; and
(B)
the residential exemption described in Section
59-2-103
;
(x)
information specifically authorized to be included on the notice under this chapter;
(xi)
the last property review date of the property as described in Subsection
59-2-303.1(1)(c)
;
(xii)
instructions on how the taxpayer may obtain additional information regarding
the valuation of the property, including the characteristics and features of the
property, from:
(A)
a website maintained by the county; or
(B)
the statewide web portal developed and maintained by the Multicounty
Appraisal Trust under Subsection
59-2-1606
(5)(a)
for uniform access to
property characteristics and features;
and
(xiii)
if applicable, the following information in relation to a county relief levy
imposed under Section 59-2a-114:
(A)
the rate of the county relief levy; and
(B)
the amount of tax levied; and
(xiii)
(xiv)
other information approved by the commission.
(3)
If a taxing entity that is subject to the notice and hearing requirements of Subsection
59-2-919(4)
proposes a tax increase, the notice described in Subsection
(1)
shall state, in
addition to the information required by Subsection
(2)
:
(a)
the dollar amount of the taxpayer's tax liability if the proposed increase is approved;
(b)
the difference between the dollar amount of the taxpayer's tax liability if the
proposed increase is approved and the dollar amount of the taxpayer's tax liability
under the current rate, placed in close proximity to the information described in
Subsection
(2)(c)(viii)
;
(c)
the percentage increase that the dollar amount of the taxpayer's tax liability under the
proposed tax rate represents as compared to the dollar amount of the taxpayer's tax
liability under the current tax rate; and
(d)
for each taxing entity proposing a tax increase, the dollar amount of additional ad
valorem tax revenue, as defined in Section
59-2-919
, that would be generated each
year if the proposed tax increase is approved.
(4)
In addition to any other tax relief information required under Subsection
(2)(c)(ix)(A)
, a
notice sent to a residential property shall:
(a)
state, "If you are 65 years old or older, disabled, or experiencing extreme hardship,
and this property is your primary residence, you may be eligible to defer payment of
this property tax."; and
(b)
include a telephone number, or a website address on which a telephone number is
prominently listed, that the property owner may call to obtain additional information
about applying for a deferral.
(5)
(a)
Subject to the other provisions of this Subsection
(5)
, a county auditor may
provide, at the county auditor's discretion, the notice required by this section to a
taxpayer by electronic means if a taxpayer makes an election, according to
procedures determined by the county auditor, to receive the notice by electronic
means.
(b)
(i)
If a county auditor sends a notice required by this section by electronic means,
the county auditor shall attempt to verify whether a taxpayer receives the notice.
(ii)
If the county auditor cannot verify receipt of the notice sent by electronic means
14 days or more before the county board of equalization meets and the taxing
entity holds a public hearing on a proposed increase in the certified tax rate, the
county auditor shall send the notice required by this section by mail as provided in
Subsection
(2)
.
(c)
A taxpayer may revoke an election to receive the notice required by this section by
electronic means if the taxpayer provides written notice to the county auditor on or
before April 30.
(d)
An election or a revocation of an election under this Subsection
(5)
:
(i)
does not relieve a taxpayer of the duty to pay a tax due under this chapter on or
before the due date for paying the tax; or
(ii)
does not alter the requirement that a taxpayer appealing the valuation or the
equalization of the taxpayer's real property submit the application for appeal
within the time period provided in Subsection
59-2-1004(3)
.
(e)
A county auditor shall provide the notice required by this section as provided in
Subsection
(2)
, until a taxpayer makes a new election in accordance with this
Subsection
(5)
, if:
(i)
the taxpayer revokes an election in accordance with Subsection
(5)(c)
to receive
the notice required by this section by electronic means; or
(ii)
the county auditor finds that the taxpayer's electronic contact information is
invalid.
(f)
A person is considered to be a taxpayer for purposes of this Subsection
(5)
regardless
of whether the property that is the subject of the notice required by this section is
exempt from taxation.
Section 2. Section
59-2-924
is amended to read:
59-2-924
Effective
01/01/27
. 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
minus revenue the taxing entity receives from the imposition of a
county relief levy under Section 59-2a-114
.
(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:
(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
11-59-208
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(v)
for an authority created under Section
63H-1-201
, the same as that term is defined
in Section
63H-1-102
;
(vi)
for a host local government, the same as that term is defined in Section
63N-2-502
;
(vii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
(viii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part
5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80,
Part 5, Home Ownership Promotion Zone, a property's taxable value as shown
upon the assessment roll last equalized during the base year, as that term is
defined in Section
10-21-101
or Section
17-80-101
;
(ix)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment 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-3-1601
;
(x)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part
17, Major Sporting Event Venue Zone Act, a property's taxable value as shown
upon the assessment roll last equalized during the property tax base year, as that
term is defined in Section
63N-3-1701
; or
(xi)
for an electrical energy development zone
created
designated
under Section
79-6-1104
, the value of the property within an electrical energy development
zone, as shown on the assessment roll last equalized before the
creation
designation
of the electrical
energy
development zone, as that term is defined in
Section
79-6-1104
.
(e)
"Centrally assessed benchmark value" means an amount equal to the average year
end taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous three calendar
years, adjusted for taxable value attributable 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)
"Centrally assessed industry" means the following industry classes the commission
assesses in accordance with Part 2, Assessment of Property:
(i)
air carrier;
(ii)
coal;
(iii)
coal load out property;
(iv)
electric generation;
(v)
electric rural;
(vi)
electric utility;
(vii)
gas utility;
(viii)
ground access property;
(ix)
land only property;
(x)
liquid pipeline;
(xi)
metalliferous mining;
(xii)
nonmetalliferous mining;
(xiii)
oil and gas gathering;
(xiv)
oil and gas production;
(xv)
oil and gas water disposal;
(xvi)
railroad;
(xvii)
sand and gravel; and
(xviii)
uranium.
(g)
(i)
"Centrally assessed new growth" means the greater of:
(A)
for each centrally assessed industry, zero; or
(B)
the amount calculated by subtracting the centrally assessed benchmark value
for each centrally assessed industry, 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 each centrally
assessed industry for the current year, adjusted for current year incremental
value.
(ii)
"Centrally assessed new growth" does not include a change in value for a
centrally assessed industry 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.
(h)
"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.
(i)
"Community reinvestment agency" means the same as that term is defined in Section
17C-1-102
.
(j)
"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.
(k)
"Host local government" means the same as that term is defined in Section
63N-2-502
.
(l)
"Hotel property" means the same as that term is defined in Section
63N-2-502
.
(m)
"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.
(n)
"Incremental property tax revenue" means the same as that term is defined in Section
63N-2-502
.
(o)
"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
11-59-208
, that is paid to the Point of the
Mountain State Land Authority;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the amount calculated by multiplying:
(A)
the difference between the taxable value for the current year and the base
taxable value of the property that is located within a project area; and
(B)
the number that represents the percentage of enhanced property tax revenue,
as defined in Section
11-70-101
;
(iv)
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;
(v)
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;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created in accordance with 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 or
convention center reinvestment zone and on which tax increment is collected;
and
(B)
the number that represents the percentage of the tax increment that is paid to
the housing and transit reinvestment zone or convention center reinvestment
zone;
(vii)
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;
(viii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part
5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80,
Part 5, Home Ownership Promotion Zone, 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 home ownership promotion zone and on which
tax increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the home ownership promotion zone;
(ix)
for a first home investment zone created in accordance with Title 63N, Chapter
3, Part 16, First Home Investment 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 first home investment zone and on which tax
increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the first home investment zone;
(x)
for a major sporting event venue zone created
pursuant to
in accordance with

Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, an amount
calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a qualified development zone for a major sporting
event venue zone and upon which property tax increment is collected; and
(B)
the number that represents the percentage of tax increment that is paid to the
major sporting event venue zone, as approved by a major sporting event venue
zone committee described in Section
63N-1a-1706
; or
(xi)
for an electrical energy development zone
created
designated
under Section
79-6-1104
, the amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within the electrical energy developmental zone; and
(B)
the number that represents the percentage of the tax increment that is paid to a
community reinvestment agency and the Electrical Energy Development
Investment Fund created in Section
79-6-1105
.
(p)
(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.
(q)
"Project area" 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 Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(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 housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
(vi)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, the same as that term is defined in Section
10-21-101
or Section
17-80-101
;
(vii)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, the same as that term is defined in Section
63N-3-1601
; or
(viii)
for a major sporting event venue zone established under Title 63N, Chapter 3,
Part 17, Major Sporting Event Venue Zone Act, the qualified development zone,
as defined in Section
63N-3-1701
.
(r)
"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
11-59-208
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, an amount equal to the incremental value that is no longer provided to
the Utah Fairpark Area Investment and Restoration District;
(iv)
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;
(v)
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;
(vi)
for a housing and transit reinvestment zone or convention center 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 or convention center
reinvestment zone as tax increment;
(vii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, an amount equal to the incremental value
that is no longer provided to a home ownership promotion zone as tax increment;
(viii)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, an amount equal to the incremental value that is
no longer provided to a first home investment zone as tax increment; or
(ix)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part
17, Major Sporting Event Venue Zone Act, an amount equal to the incremental
value that is no longer provided to the creating entity of a major sporting event
venue zone as property tax increment.
(s)
"Project area incremental revenue" means the same as that term is defined in Section
17C-1-1001
.
(t)
"Property tax allocation" means the same as that term is defined in Section
63H-1-102
.
(u)
"Property tax differential" means the same as that term is defined in Sections
11-58-102
and
79-6-1104
.
(v)
"Tax increment" means:
(i)
for a project created under Section
17C-1-201.5
, the same as that term is defined
in Section
17C-1-102
;
(ii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as the term "property tax increment" is defined
in Section
63N-3-602
;
(iii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, the same as that term is defined in Section
10-21-101
or Section
17-80-101
;
(iv)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, the same as that term is defined in Section
63N-3-1601
; or
(v)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part
17, Major Sporting Event Venue Zone Act, property tax increment, as that term is
defined in Section
63N-3-1701
.
(2)
Before June 1 of each year, each county assessor shall deliver to the county auditor and
the commission the following statements:
(a)
a statement containing the aggregate valuation of all taxable real property a county
assessor assesses in accordance with Part 3, County Assessment, for each taxing
entity; and
(b)
a statement containing the taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, from the prior year end
values.
(3)
The county auditor shall, on or before June 8, transmit to the governing body of each
taxing entity:
(a)
the statements described in Subsections
(2)(a)
and
(b)
;
(b)
an estimate of the revenue from personal property;
(c)
the certified tax rate; and
(d)
all forms necessary to submit a tax levy request.
(4)
(a)
Except as otherwise provided in this section, the certified tax rate shall be
calculated by dividing the ad valorem property tax revenue that a taxing entity
budgeted for the prior year by the amount calculated under Subsection
(4)(b)
.
(b)
For purposes of Subsection
(4)(a)
, the legislative body of a taxing entity shall
calculate an amount as follows:
(i)
calculate for the taxing entity the difference between:
(A)
the aggregate taxable value of all property taxed; and
(B)
any adjustments for current year incremental value;
(ii)
after making the calculation required by Subsection
(4)(b)(i)
, calculate an amount
determined by increasing or decreasing the amount calculated under Subsection
(4)(b)(i)
by the average of the percentage net change in the value of taxable
property for the equalization period for the three calendar years immediately
preceding the current calendar year;
(iii)
after making the calculation required by Subsection
(4)(b)(ii)
, calculate the
product of:
(A)
the amount calculated under Subsection
(4)(b)(ii)
; and
(B)
the percentage of property taxes collected for the five calendar years
immediately preceding the current calendar year; and
(iv)
after making the calculation required by Subsection
(4)(b)(iii)
, calculate an
amount determined by:
(A)
multiplying the percentage of property taxes collected for the five calendar
years immediately preceding the current calendar year by eligible new growth;
and
(B)
subtracting the amount calculated under Subsection
(4)(b)(iv)(A)
from the
amount calculated under Subsection
(4)(b)(iii)
.
(5)
A certified tax rate for a taxing entity described in this Subsection
(5)
shall be calculated
as follows:
(a)
except as provided in Subsection
(5)(b)
or
(c)
, for a new taxing entity, the certified
tax rate is zero;
(b)
for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
(i)
in a county of the first, second, or third class, the levy imposed for municipal-type
services under Title 17, Chapter 78, Part 5, Provision of Municipal-Type Services
to Unincorporated Areas; and
(ii)
in a county of the fourth, fifth, or sixth class, the levy imposed for general county
purposes and such other levies imposed solely for the municipal-type services
identified in Section
17-78-501
and Subsection
17-63-101(23)
;
(c)
for a community reinvestment agency that received all or a portion of a taxing
entity's project area incremental revenue in the prior year under Title 17C, Chapter 1,
Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in
Subsection
(4)
except that the commission shall treat the total revenue transferred to
the community reinvestment agency as ad valorem property tax revenue that the
taxing entity budgeted for the prior year; and
(d)
for debt service voted on by the public, the certified tax rate is the actual levy
imposed by that section, except that a certified tax rate for the following levies shall
be calculated in accordance with Section
59-2-913
and this section:
(i)
a school levy provided for under Section
53F-8-301
,
53F-8-302
, or
53F-8-303
; and
(ii)
a levy to pay for the costs of state legislative mandates or judicial or
administrative orders under Section
59-2-1602
.
(6)
(a)
A taxing entity may impose a judgment levy under Section
59-2-1328
or
59-2-1330
at a rate that is sufficient to generate only the revenue required to satisfy
one or more eligible judgments.
(b)
The ad valorem property tax revenue generated by a judgment levy described in
Subsection
(6)(a)
may not be considered in establishing a taxing entity's aggregate
certified tax rate.
(7)
(a)
For the purpose of calculating the certified tax rate, the county auditor shall use:
(i)
the taxable value of real property:
(A)
the county assessor assesses in accordance with Part 3, County Assessment;
and
(B)
contained on the assessment roll;
(ii)
the year end taxable value of personal property:
(A)
a county assessor assesses in accordance with Part 3, County Assessment; and
(B)
contained on the prior year's assessment roll; and
(iii)
the taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property.
(b)
For purposes of Subsection
(7)(a)
, taxable value does not include eligible new
growth.
(8)
(a)
On or before June 30 of each year, a taxing entity shall adopt a tentative budget.
(b)
If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify
the county auditor of:
(i)
the taxing entity's intent to exceed the certified tax rate; and
(ii)
the amount by which the taxing entity proposes to exceed the certified tax rate.
(c)
The county auditor shall notify property owners of any intent to levy a tax rate that
exceeds the certified tax rate in accordance with Sections
59-2-919
and
59-2-919.1
.
(9)
(a)
Subject to Subsection
(9)(d)
, the commission shall provide notice, through
electronic means on or before July 31, to a taxing entity and the Revenue and
Taxation Interim Committee if:
(i)
the amount calculated under Subsection
(9)(b)
is 10% or more of the year end
taxable value of the real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous year, adjusted
for prior year end incremental value; and
(ii)
the amount calculated under Subsection
(9)(c)
is 50% or more of the total year
end taxable value of the real and personal property of a taxpayer the commission
assesses in accordance with Part 2, Assessment of Property, for the previous year.
(b)
For purposes of Subsection
(9)(a)(i)
, the commission shall calculate an amount by
subtracting 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, from the year end taxable value of the real and
personal property the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year, adjusted for prior year end incremental value.
(c)
For purposes of Subsection
(9)(a)(ii)
, the commission shall calculate an amount by
subtracting the total taxable value of real and personal property of a taxpayer the
commission assesses in accordance with Part 2, Assessment of Property, for the
current year, from the total year end taxable value of the real and personal property of
a taxpayer the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year.
(d)
The notification under Subsection
(9)(a)
shall include a list of taxpayers that meet the
requirement under Subsection
(9)(a)(ii)
.
Section 3. Section
59-2-1317
is amended to read:
59-2-1317
Effective
01/01/27
. Tax notice -- Contents of notice -- Procedures
and requirements for providing notice.
(1)
As used in this section, "political subdivision lien" means the same as that term is
defined in Section
11-60-102
.
(2)
Subject to the other provisions of this section, the county treasurer shall:
(a)
collect the taxes and tax notice charges; and
(b)
provide a notice to each taxpayer that contains the following:
(i)
the kind and value of property assessed to the taxpayer;
(ii)
the street address of the property, if available to the county;
(iii)
that the property may be subject to a detailed review in the next year under
Section
59-2-303.1
;
(iv)
the amount of taxes levied;
(v)
a separate statement of the taxes levied only on a certain kind or class of property
for a special purpose;
(vi)
instructions for payment of the taxes and tax notice charges applicable to the
property, including the taxpayer's payment options and collection procedures;
(vii)
any tax notice charges applicable to the property, including:
(A)
if applicable, a political subdivision lien for road damage that a railroad
company causes, as described in Section
10-7-30
;
(B)
if applicable, a political subdivision lien for municipal water distribution, as
described in Section
10-8-17
, or a political subdivision lien for an increase in
supply from a municipal water distribution, as described in Section
10-8-19
;
(C)
if applicable, a political subdivision lien for unpaid abatement fees as
described in Section
10-11-4
;
(D)
if applicable, a political subdivision lien for the unpaid portion of an
assessment assessed in accordance with Title
11, Chapter 42
, Assessment Area
Act, or Title
11, Chapter 42a
, Commercial Property Assessed Clean Energy
Act, including unpaid costs, charges, and interest as of the date the local entity
certifies the unpaid amount to the county treasurer;
(E)
if applicable, for a special district in accordance with Section
17B-1-902
, a
political subdivision lien for an unpaid fee, administrative cost, or interest;
(F)
if applicable, a political subdivision lien for an unpaid irrigation district use
charge as described in Section
17B-2a-506
;
(G)
if applicable, a political subdivision lien for a contract assessment under a
water contract, as described in Section
17B-2a-1007
;
(H)
if applicable, a property tax penalty that a public infrastructure district
imposes, as described in Section
17D-4-304
; and
(I)
if applicable, an annual payment to the Military Installation Development
Authority or an entity designated by the authority in accordance with Section
63H-1-501
;
(viii)
if a county's tax notice includes an assessment area charge, a statement that, due
to potentially ongoing assessment area charges, costs, penalties, and interest,
payment of a tax notice charge may not:
(A)
pay off the full amount the property owner owes to the tax notice entity; or
(B)
cause a release of the lien underlying the tax notice charge;
(ix)
if applicable, the annual payment described in Subsection
63H-1-501(4)(a)
;
(x)
the date the taxes and tax notice charges are due;
(xi)
the street address or website at which the taxes and tax notice charges may be
paid;
(xii)
the date on which the taxes and tax notice charges are delinquent;
(xiii)
the penalty imposed on delinquent taxes and tax notice charges;
(xiv)
a statement that explains the taxpayer's right to direct allocation of a partial
payment in accordance with Subsection
(9)
;
(xv)
other information specifically authorized to be included on the notice under this
chapter;
(xvi)
if applicable, the following information in relation to a county relief levy
imposed under Section 59-2a-114:
(A)
the rate of the county relief levy; and
(B)
the amount of tax levied;
(xvi)
(xvii)
other property tax information approved by the commission; and
(xvii)
(xviii)
if sent in calendar year 2024, 2025, or 2026:
(A)
notice that the taxpayer may request electronic notice as described in
Subsection
17-71-302(1)(m)
; and
(B)
instructions describing how to elect to receive a notice as described in
Subsection
17-71-302(1)(m)
.
(3)
(a)
Unless expressly allowed under this section or another statutory provision, the
treasurer may not add an amount to be collected to the property tax notice.
(b)
If the county treasurer adds an amount to be collected to the property tax notice
under this section or another statutory provision that expressly authorizes the item's
inclusion on the property tax notice:
(i)
the amount constitutes a tax notice charge; and
(ii)
(A)
the tax notice charge has the same priority as property tax; and
(B)
a delinquency of the tax notice charge triggers a tax sale, in accordance with
Section
59-2-1343
.
(4)
For any property for which property taxes or tax notice charges are delinquent, the
notice described in Subsection
(2)
shall state, "Prior taxes or tax notice charges are
delinquent on this parcel."
(5)
Except as provided in Subsection
(6)
, the county treasurer shall:
(a)
mail the notice required by this section, postage prepaid; or
(b)
leave the notice required by this section at the taxpayer's residence or usual place of
business, if known.
(6)
(a)
Subject to the other provisions of this Subsection
(6)
, a county treasurer may, at
the county treasurer's discretion, provide the notice required by this section by
electronic mail if a taxpayer makes an election, according to procedures determined
by the county treasurer, to receive the notice by electronic mail.
(b)
A taxpayer may revoke an election to receive the notice required by this section by
electronic mail if the taxpayer provides written notice to the treasurer on or before
October 1.
(c)
A revocation of an election under this section does not relieve a taxpayer of the duty
to pay a tax or tax notice charge due under this chapter on or before the due date for
paying the tax or tax notice charge.
(d)
A county treasurer shall provide the notice required by this section using a method
described in Subsection
(5)
, until a taxpayer makes a new election in accordance with
this Subsection
(6)
, if:
(i)
the taxpayer revokes an election in accordance with Subsection
(6)(b)
to receive
the notice required by this section by electronic mail; or
(ii)
the county treasurer finds that the taxpayer's electronic mail address is invalid.
(e)
A person is considered to be a taxpayer for purposes of this Subsection
(6)
regardless
of whether the property that is the subject of the notice required by this section is
exempt from taxation.
(7)
(a)
The county treasurer shall provide the notice required by this section to a taxpayer
on or before November 1.
(b)
The county treasurer shall keep on file in the county treasurer's office the information
set forth in the notice.
(c)
The county treasurer is not required to mail a tax receipt acknowledging payment.
(8)
This section does not apply to property taxed under Section
59-2-1302
or
59-2-1307
.
(9)
(a)
A taxpayer who pays less than the full amount due on the taxpayer's property tax
notice may, on a form provided by the county treasurer, direct how the county
treasurer allocates the partial payment between:
(i)
the total amount due for property tax;
(ii)
the amount due for assessments, past due special district fees, and other tax notice
charges; and
(iii)
any other amounts due on the property tax notice.
(b)
The county treasurer shall comply with a direction submitted to the county treasurer
in accordance with Subsection
(9)(a)
.
(c)
The provisions of this Subsection
(9)
do not:
(i)
affect the right or ability of a local entity to pursue any available remedy for
non-payment of any item listed on a taxpayer's property tax notice; or
(ii)
toll or otherwise change any time period related to a remedy described in
Subsection
(9)(c)(i)
.
Section 4. Section
59-2-1365
is amended to read:
59-2-1365
Effective
01/01/27
. Payment to taxing entities by county treasurer --
Investment of proceeds -- Transfer and receipt of money between taxing entities.
(1)
Except as provided in Subsections
(3)
and
(4)
, the county treasurer shall pay to the
treasurer of each taxing entity and each tax notice charge entity in the county on or
before the tenth day of each month:
(a)
all money that the county treasurer received during the preceding month that is due
to the entity; and
(b)
each entity's proportionate share of money the county treasurer received during the
preceding month for:
(i)
delinquent taxes and tax notice charges;
(ii)
interest;
(iii)
penalties; and
(iv)
costs on all tax sales and redemptions.
(2)
Except as provided in Subsections
(3)
and
(4)
, the county treasurer shall:
(a)
adopt an appropriate procedure to account for the transfer and receipt of money
between taxing entities and tax notice charge entities;
(b)
make a final annual settlement on March 31 with each taxing entity and tax notice
charge entity, including providing the entity a written statement for the most recent
calendar year of the amount of:
(i)
total taxes and tax notice charges charged;
(ii)
current taxes and tax notice charges collected;
(iii)
treasurer's relief;
(iv)
redemptions;
(v)
penalties;
(vi)
interest;
(vii)
in lieu fee collections on motor vehicles;
and
(viii)
the forfeited revenue amount, as defined in Section
59-2a-101
; and
(viii)
(ix)
miscellaneous collections;
(c)
invest the money it receives under Subsection
(1)
; and
(d)
pay annually to each taxing entity and tax notice charge entity in the county the
interest earned on the invested money under Subsection
(2)(c)
:
(i)
on or before March 31; and
(ii)
apportioned according to the proportion that the:
(A)
taxing entity's tax receipts bear to the total tax receipts received by the county
treasurer; and
(B)
tax notice charge entity's tax notice charge receipts bear to the total tax notice
charge receipts that the county treasurer receives.
(3)
Notwithstanding Subsections
(1)
and
(2)
, a county may:
(a)
negotiate with a taxing entity or tax notice charge entity a procedure other than the
procedure provided in Subsection
(2)(a)
to account for the transfer and receipt of
money between the county and the taxing entity or tax notice charge entity; and
(b)
establish a date other than the tenth day of each month for the county treasurer to
make payments required under Subsection
(1)
.
(4)
This section does not invalidate an existing contract between a county and a taxing
entity or tax notice charge entity relating to the apportionment and payment of money or
interest.
Section 5. Section
59-2-1601
is amended to read:
59-2-1601
Effective
01/01/27
. Definitions.
As used in this part:
(1)
"County additional property tax" means the property tax levy described in Subsection
59-2-1602(4)
.
(2)
"Fund" means the Property Tax Valuation Fund created in Section
59-2-1602
.
(3)
"Impacted taxing entity" means the same as that term is defined in Section
59-2a-101
.
(3)
(4)
"Multicounty Appraisal Trust" means the Multicounty Appraisal Trust created by
an agreement:
(a)
entered into by all of the counties in the state; and
(b)
authorized by Title 11, Chapter 13, Interlocal Cooperation Act.
(4)
(5)
"Multicounty assessing and collecting levy" means a property tax levied in
accordance with Subsection
59-2-1602(2)
.
(5)
(6)
(a)
"Property valuation service" means any service or technology that promotes
uniform assessment levels for the valuation of personal property and real property in
accordance with Part 3, County Assessment.
(b)
"Property valuation service" includes statewide aerial imagery, change detection,
sketch validation, exception analysis, commercial valuation modeling, residential
valuation modeling, automated valuation modeling, and equity analysis.
(6)
(7)
"Statewide property tax system" means a computer assisted system for mass
appraisal, equalization, collection, distribution, and administration related to property
tax, created by the Multicounty Appraisal Trust in accordance with Section
59-2-1606
.
The following section is affected by a coordination clause at the end of this bill.
Section 6. Section
59-2-1602
is amended to read:
59-2-1602
Effective
01/01/27
. Property Tax Valuation Fund -- Statewide levy --
Additional county levy.
(1)
(a)
There is created a custodial fund known as the "Property Tax Valuation Fund."
(b)
The fund consists of:
(i)
deposits made and penalties received under Subsection
(3)
;
and
(ii)
interest on money deposited into the fund
.
; and
(iii)
appropriations from the Legislature.
(c)
Deposits, penalties, and interest described in Subsection
(1)(b)
shall be disbursed and
used as provided in Section
59-2-1603
and Subsection
(5)
.
(2)
(a)
Each county shall annually impose a multicounty assessing and collecting levy as
provided in this Subsection
(2)
.
(b)
The tax rate of the multicounty assessing and collecting levy is the certified revenue
levy rounded up to the sixth decimal place.
(c)
The state treasurer shall allocate all revenue collected from the multicounty assessing
and collecting levy to the Multicounty Appraisal Trust.
(3)
(a)
The multicounty assessing and collecting levy imposed under Subsection
(2)
shall
be separately stated on the tax notice as a multicounty assessing and collecting levy.
(b)
The multicounty assessing and collecting levy is:
(i)
exempt from Sections
17C-1-403
through
17C-1-406
;
(ii)
in addition to and exempt from the maximum levies allowable under Section
59-2-908
; and
(iii)
exempt from the notice and public hearing requirements of Section
59-2-919
.
(c)
(i)
Each county shall transmit quarterly to the state treasurer the revenue collected
from the multicounty assessing and collecting levy.
(ii)
The revenue transmitted under Subsection
(3)(c)(i)
shall be transmitted no later
than the tenth day of the month following the end of the quarter in which the
revenue is collected.
(iii)
If revenue transmitted under Subsection
(3)(c)(i)
is transmitted after the tenth
day of the month following the end of the quarter in which the revenue is
collected, the county shall pay an interest penalty at the rate of 10% each year
until the revenue is transmitted.
(d)
The state treasurer shall allocate the penalties received under this Subsection
(3)
in
the same manner as revenue is allocated under Subsection
(2)(c)
.
(4)
(a)
A county may levy a county additional property tax in accordance with this
Subsection
(4)
.
(b)
The county additional property tax:
(i)
shall be separately stated on the tax notice as a county assessing and collecting
levy;
(ii)
may not be incorporated into the rate of any other levy;
(iii)
is exempt from Sections
17C-1-403
through
17C-1-406
; and
(iv)
is in addition to and exempt from the maximum levies allowable under Section
59-2-908
.
(c)
Revenue collected from the county additional property tax shall be used to:
(i)
promote the accurate valuation and uniform assessment levels of property as
required by Section
59-2-103
;
(ii)
promote the efficient administration of the property tax system, including the
costs of assessment, collection, and distribution of property taxes;
(iii)
fund state mandated actions to meet legislative mandates or judicial or
administrative orders that relate to promoting:
(A)
the accurate valuation of property; and
(B)
the establishment and maintenance of uniform assessment levels within and
among counties; and
(iv)
establish reappraisal programs that:
(A)
are adopted by a resolution or ordinance of the county legislative body; and
(B)
conform to rules the commission makes in accordance with
Title 63G,
Chapter 3, Utah Administrative Rulemaking Act
.
(5)
(a)
Subject to appropriation, the Multicounty Appraisal Trust may use money in the
fund to:
(i)
make loans to counties to pay the costs to the county and impacted taxing entities
from the county's granting of deferrals under Chapter 2a, Part 9, Nondiscretionary
Deferral for Eligible Owners; and
(ii)
pay the Multicounty Appraisal Trust's administrative costs in making loans under
this Subsection
(5)
.
(b)
A county or impacted taxing entity that receives loan proceeds under this Subsection
(5)
, either directly or indirectly, may not increase the county's or impacted taxing
entity's certified tax rate as a result of receiving less property tax revenue from the
county's granting of deferrals under Chapter 2a, Part 9, Nondiscretionary Deferral for
Eligible Owners.
(c)
On or before October 1 of each year, the Multicounty Appraisal Trust shall submit an
electronic report to the Revenue and Taxation Interim Committee that contains a
summary of the Multicounty Appraisal Trust's use of revenue under this Subsection
(5) during the current calendar year.
Section 7. Section
59-2a-101
is amended to read:
59-2a-101
Effective
01/01/27
. Definitions.
As used in this chapter:
(1)
"Active component of the United States Armed Forces" means the same as that term is
defined in Section
59-10-1027
.
(2)
"Active duty claimant" means a member of an active component of the United States
Armed Forces or a reserve component of the United States Armed Forces who:
(a)
performed qualifying active duty military service; and
(b)
applies for an exemption described in Part 6, Active Duty Armed Forces Exemption.
(3)
"Adjusted property tax amount" means the amount of property taxes, from the current
year property tax amount, that an eligible owner is required to pay for a calendar year in
which the eligible owner receives a deferral under Part 9, Nondiscretionary Deferral for
Eligible Owners.
(3)
(4)
"Adjusted taxable value limit" means:
(a)
for the calendar year that begins on January 1, 2023, $479,504; or
(b)
for each calendar year after the calendar year that begins on January 1, 2023, the
amount of the adjusted taxable value limit for the previous year plus an amount
calculated by multiplying the amount of the adjusted taxable value limit for the
previous year by the actual percent change in the consumer price index during the
previous calendar year.
(5)
"Base year property tax amount" means:
(a)
for a calendar year in which an eligible owner did not receive a deferral for the
preceding calendar year under Part 9, Nondiscretionary Deferral for Eligible Owners,
the amount of property taxes levied on the eligible owner's primary residence for the
preceding calendar year; and
(b)
for a calendar year in which an eligible owner received a deferral for the preceding
calendar year under Part 9, Nondiscretionary Deferral for Eligible Owners, the
amount of property taxes levied on the eligible owner's primary residence for the
calendar year immediately preceding the calendar year in which the eligible owner
first received the deferral.
(4)
(6)
"Claim" means:
(a)
a claim for tax abatement described in Subsection
(21)(a)
or a credit under Part 2,
Renter's Credit, or Part 3, Homeowner's Credit;
(b)
(a)
an exemption under Part 5, Veteran Armed Forces Exemption, or Part 6, Active
Duty Armed Forces Exemption; or
(c)
(b)
an application for
an abatement under Part 4, Abatement for Indigent
Individuals, or
a deferral under
Part 7, Discretionary Deferral, Part 8,
Nondiscretionary Deferral for Property with Qualifying Increase, or
Part 9,
Nondiscretionary Deferral for
Elderly Property
Eligible
Owners.
(5)
(a)
"Claimant" means a homeowner or renter who:
(i)
files a claim under Part 2, Renter's Credit, or Part 3, Homeowner's Credit, for a
residence;
(ii)
is domiciled in this state for the entire calendar year for which a claim for relief
is filed; and
(iii)
on or before December 31 of the year for which a claim for relief is filed, is:
(A)
66 years old or older if the individual was born on or before December 31,
1959; or
(B)
67 years old or older if the individual was born on or after January 1, 1960.
(b)
Notwithstanding Subsection
(5)(a)
, "claimant" includes a surviving spouse:
(i)
regardless of:
(A)
the age of the surviving spouse; or
(B)
the age of the deceased spouse at the time of death;
(ii)
if the surviving spouse meets:
(A)
the requirements described in Subsections
(5)(a)(i)
and (5)(a)(ii); and
(B)
the income requirements described in Part 2, Renter's Credit, if the surviving
spouse is filing a claim for a renter's credit, or Part 3, Homeowner's Credit, if
the surviving spouse is filing a claim for a homeowner's credit;
(iii)
if the surviving spouse is part of the same household of the deceased spouse at
the time of death of the deceased spouse; and
(iv)
if the surviving spouse is unmarried at the time the surviving spouse files the
claim.
(c)
If two or more individuals of a household are able to meet the qualifications for a
claimant, the individuals may determine among them as to who the claimant shall be,
but if the individuals are unable to agree, the matter shall be referred to the county
legislative body for a determination of the claimant of an owned residence and to the
commission for a determination of the claimant of a rented residence.
(6)
(7)
"Consumer price index" means
:
(a)
for Part 2, Renter's Credit, and Part 3, Homeowner's Credit,
the Consumer Price
Index - All Urban Consumers, Housing United States Cities Average, published by
the Bureau of Labor Statistics of the United States Department of Labor
; and
.
(b)
for the other parts of this chapter, the same as that term is described in Section
1(f)(4), Internal Revenue Code, and defined in Section 1(f)(5), Internal Revenue
Code.
(8)
"County relief levy" means a property tax levied in accordance with Section 59-2a-114.
(9)
"County relief program" means a discretionary county property tax relief program
established in accordance with Sections 59-2a-112 and 59-2a-113.
(7)
(10)
"Deceased veteran with a disability" means a deceased individual who was a
veteran with a disability at the time the individual died.
(8)
(11)
"Deferral" means a postponement of a tax due date or a tax notice charge granted
in accordance with Section
59-2a-701
,
59-2a-801
, or
59-2a-901
.
(9)
(12)
"Eligible owner" means an owner of an attached or a detached single-family
residence:
(a)
(i)
who is
75
65
years old or older on or before December 31 of the year in which
the individual applies for a deferral under Part 9, Nondiscretionary Deferral for
Elderly Property
Eligible
Owners;
(ii)
who uses the residence as the owner's primary residence as of January 1 of the
calendar year for which the owner applies for a deferral under Part 9,
Nondiscretionary Deferral for Eligible Owners;
(ii)
(iii)
whose household income does not exceed
200% of the maximum
household income certified to a homeowner's credit described in Section
59-2a-305
$75,000
; and
(iii)
(iv)
whose household liquid resources do not exceed
20
40
times the amount of
property taxes levied on the owner's residence for the preceding calendar year; or
(b)
that is a trust described in Section
59-2a-109
if the grantor of the trust is an
individual described in Subsection
(9)(a)
(12)(a)
.
(10)
(13)
"Eligible property" means property owned by a veteran claimant that is:
(a)
the veteran claimant's primary residence, including a residence that the veteran
claimant does not reside in because the veteran claimant is admitted as an inpatient at
a health care facility as defined in Section
26B-4-501
; or
(b)
tangible personal property that:
(i)
is held exclusively for personal use; and
(ii)
is not used in a trade or business.
(11)
(a)
"Gross rent" means rent actually paid in cash or the cash equivalent solely for
the right of occupancy, at arm's length, of a residence, exclusive of charges for any
utilities, services, furniture, furnishings, or personal appliances furnished by the
landlord as a part of the rental agreement.
(b)
If a claimant occupies two or more residences in the year, "gross rent" means the
total rent paid for the residences during the one-year period for which the renter files
a claim under this part.
(12)
(a)
"Homeowner" means:
(i)
an individual whose name is listed on the deed of a residence; or
(ii)
if a residence is owned in a qualifying trust, an individual who is a grantor,
trustor, or settlor or holds another similar role in the trust.
(b)
"Homeowner" does not include:
(i)
if a residence is owned by any type of entity other than a qualifying trust, an
individual who holds an ownership interest in that entity; or
(ii)
an individual who is listed on a deed of a residence along with an entity other
than a qualifying trust.
(13)
"Homeowner's credit" means a credit against a claimant's property tax liability.
(14)
"Forfeited revenue amount" means the total amount of the decrease in budgeted
property tax revenue in a calendar year for all impacted taxing entities within a county
resulting from the county's provision of property tax relief through a county relief
program.
(14)
(15)
"Household" means the association of individuals who live in the same dwelling,
sharing the dwelling's furnishings, facilities, accommodations, and expenses.
(15)
(16)
(a)
"Household income" means all income received by all members of a
claimant's household in:
(i)
for a claimant who owns a residence, the calendar year preceding the calendar
year in which property taxes are due; or
(ii)
for a claimant who rents a residence, the year for which a claim is filed.
(b)
"Household income" does not include income received by a member of a claimant's
household who is:
(i)
under 18 years old; or
(ii)
a parent or a grandparent, through blood, marriage, or adoption, of the claimant or
the claimant's spouse.
(16)
(17)
"Household liquid resources" means the following resources that are not
included in an individual's household income and held by one or more members of the
individual's household:
(a)
cash on hand;
(b)
money in a checking or savings account;
(c)
savings certificates; and
(d)
stocks or bonds.
(17)
(18)
"Income" means the sum of:
(a)
federal adjusted gross income as defined in Section 62, Internal Revenue Code; and
(b)
nontaxable income.
(18)
"Indigent individual" means a poor individual as described in Utah Constitution,
Article XIII, Section 3, Subsection
(4)
, who:
(a)
(i)
is 65 years old or older; or
(ii)
is less than 65 years old and:
(A)
the county finds that extreme hardship would prevail on the individual if the
county does not defer or abate the individual's taxes; or
(B)
the individual has a disability;
(b)
has a total household income of less than the maximum household income certified
to a homeowner's credit described in Section
59-2a-305
;
(c)
resides for at least 10 months of the year in the residence that would be subject to
the requested abatement; and
(d)
cannot pay the tax assessed on the individual's residence when the tax becomes due.
(19)
"Impacted taxing entity" means any taxing entity within a county that receives a
decrease in budgeted property tax revenue in a calendar year as a result of the county's
provision of property tax relief.
(19)
(20)
"Military entity" means:
(a)
the United States Department of Veterans Affairs;
(b)
an active component of the United States Armed Forces; or
(c)
a reserve component of the United States Armed Forces.
(20)
(21)
(a)
"Nontaxable income" means amounts excluded from adjusted gross income
under the Internal Revenue Code, including:
(i)
capital gains;
(ii)
loss carry forwards claimed during the taxable year in which a claimant files for
relief under this chapter;
(iii)
depreciation claimed
pursuant to
in accordance with
the Internal Revenue Code
by a claimant on the residence for which the claimant files for relief under this
chapter;
(iv)
support money received;
(v)
nontaxable strike benefits;
(vi)
the gross amount of a pension or annuity, including benefits under the Railroad
Retirement Act of 1974, 45 U.S.C. Sec. 231 et seq., and veterans disability
pensions;
(vii)
except for payments described in Subsection
(20)(b)(vi)
(21)(b)(vi)
, payments
received under the Social Security Act;
(viii)
state unemployment insurance amounts;
(ix)
nontaxable interest received from any source;
(x)
workers' compensation;
(xi)
the gross amount of "loss of time" insurance; and
(xii)
voluntary contributions to a tax-deferred retirement plan.
(b)
"Nontaxable income" does not include:
(i)
public assistance;
(ii)
aid, assistance, or contributions from a tax-exempt nongovernmental source;
(iii)
surplus foods;
(iv)
relief in kind supplied by a public or private agency;
(v)
relief provided under this chapter;
(vi)
Social Security Disability Income payments received under the Social Security
Act;
(vii)
federal tax refunds;
(viii)
federal child tax credits received under 26 U.S.C. Sec. 24;
(ix)
federal earned income tax credits received under 26 U.S.C. Sec. 32;
(x)
payments received under a reverse mortgage;
(xi)
payments or reimbursements to senior program volunteers under 42 U.S.C. Sec.
5058; or
(xii)
gifts or bequests.
(21)
(a)
"Property taxes accrued" means property taxes, exclusive of special
assessments, delinquent interest, and charges for service, levied on 35% of the fair
market value, as reflected on the assessment roll, of a claimant's residence in this
state.
(b)
For a mobile home, "property taxes accrued" includes taxes imposed on both the
land upon which the home is situated and on the structure of the home itself, whether
classified as real property or personal property taxes.
(c)
The relief described in Subsection
(21)(a)
constitutes:
(i)
a tax abatement for the poor in accordance with Utah Constitution, Article XIII,
Section 3; and
(ii)
the residential exemption provided for in Section
59-2-103
.
(d)
For purposes of this Subsection
(21)
, property taxes accrued are levied on the lien
date.
(e)
When a household owns and occupies two or more different residences in this state
in the same calendar year, and neither residence is acquired or sold during the
calendar year for which relief is claimed under this part, property taxes accrued shall
relate only to the residence occupied on the lien date by the household as the
household's principal place of residence.
(f)
(i)
If a residence is an integral part of a large unit such as a farm or a
multipurpose or multidwelling building, property taxes accrued shall be calculated
on the percentage that the value of the residence is of the total value of the unit.
(ii)
For purposes of this Subsection
(21)(f)
, "unit" refers to the parcel of property
covered by a single tax statement of which the residence is a part.
(22)
"Property taxes due" means:
(a)
for a claimant:
(i)
the taxes due for which the county or the commission grants a tax abatement for
the poor described in Subsection
(21)
or a credit; and
(ii)
for the calendar year for which the tax abatement for the poor or credit is granted;
(b)
for an indigent individual:
(i)
the taxes due for which a county granted an abatement under Section
59-2a-401
;
and
(ii)
for the calendar year for which the county grants the abatement;
(c)
(a)
for an active duty claimant:
(i)
the taxes due for which the county or the commission grants an exemption; and
(ii)
for the calendar year for which the exemption is granted; or
(d)
(b)
for a veteran claimant:
(i)
(A)
(i)
the taxes due for which the county or the commission grants an exemption;
and
(B)
(ii)
for the calendar year for which the exemption is granted
; and
.
(ii)
a uniform fee on tangible personal property described in Section
59-2-405
that is:
(A)
owned by the veteran claimant; and
(B)
assessed for the calendar year for which the county grants an exemption.
(23)
"Property taxes paid" means an amount equal to the sum of:
(a)
the amount of property taxes
, and for a veteran claimant, uniform fee,
paid for the
taxable year for which the individual applied for relief described in this chapter; and
(b)
the amount of the relief the county grants under this chapter.
(24)
"Public assistance" means:
(a)
medical assistance provided under Title 26B, Chapter 3, Health Care -
Administration and Assistance;
(b)
SNAP benefits as defined in Section
35A-1-102
;
(c)
services or benefits provided under Title 35A, Chapter 3, Employment Support Act;
and
(d)
foster care maintenance payments provided from the General Fund or under Title
IV-E of the Social Security Act.
(25)
(24)
"Qualifying active duty military service" means at least 200 days, regardless of
whether consecutive, in any continuous 365-day period of active duty military service
outside the state in an active component of the United States Armed Forces or a reserve
component of the United States Armed Forces, if the days of active duty military service:
(a)
were completed in the year before an individual applies for an exemption described
in Section
59-2a-601
; and
(b)
have not previously been counted as qualifying active duty military service for
purposes of qualifying for an exemption described in Section
59-2a-601
or applying
for the exemption as described in Section
59-2a-602
.
(26)
(25)
"Qualifying disabled veteran claimant" means a veteran claimant who has a
100% service-connected disability rating by the Veterans Benefits Administration that is
permanent and total.
(27)
"Qualifying increase" means a valuation that is equal to or more than 150% higher
than the previous year's valuation for property that:
(a)
is county assessed; and
(b)
on or after January 1 of the previous year and before January 1 of the current year
has not had:
(i)
a physical improvement if the fair market value of the physical improvement
increases enough to result in the valuation increase solely as a result of the
physical improvement;
(ii)
a zoning change if the fair market value of the real property increases enough to
result in the valuation increase solely as a result of the zoning change; or
(iii)
a change in the legal description of the real property, if the fair market value of
the real property increases enough to result in the valuation increase solely as a
result of the change in the legal description of the real property.
(28)
"Qualifying trust" means a trust holding title to real or tangible personal property for
which an individual:
(a)
makes a claim under this part;
(b)
proves to the satisfaction of the county that title to the portion of the trust will revest
in the individual upon the exercise of a power:
(i)
by:
(A)
the individual as grantor, trustor, settlor, or in another similar role of the trust;
(B)
a nonadverse party; or
(C)
both the individual and a nonadverse party; and
(ii)
regardless of whether the power is a power:
(A)
to revoke;
(B)
to terminate;
(C)
to alter;
(D)
to amend; or
(E)
to appoint; and
(c)
is obligated to pay the taxes on that portion of the trust property beginning January 1
of the year the individual makes the claim.
(29)
"Relative" means a spouse, child, parent, grandparent, grandchild, brother, sister,
parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or a
spouse of any of these individuals.
(30)
"Rental assistance payment" means any payment that:
(a)
is made by a:
(i)
governmental entity;
(ii)
charitable organization; or
(iii)
religious organization; and
(b)
is specifically designated for the payment of rent of a claimant:
(i)
for the calendar year for which the claimant seeks a renter's credit under this part;
and
(ii)
regardless of whether the payment is made to the claimant or the landlord.
(31)
(26)
"Reserve component of the United States Armed Forces" means the same as that
term is defined in Section
59-10-1027
.
(32)
(27)
(a)
(i)
"Residence" means a dwelling in this state, whether owned or rented,
and so much of the land surrounding the dwelling, not exceeding one acre, as is
reasonably necessary for use of the dwelling as a home.
(ii)
"Residence" includes a dwelling that is:
(A)
a part of a multidwelling or multipurpose building and a part of the land upon
which the multidwelling or multipurpose building is built; and
(B)
a mobile home, manufactured home, or houseboat.
(b)
"Residence" does not include personal property such as furniture, furnishings, or
appliances.
(c)
For purposes of this Subsection
(32)
(27)
, "owned" includes a vendee in possession
under a land contract or one or more joint tenants or tenants in common.
(33)
(28)
"Statement of disability" means a document:
(a)
issued by a military entity; and
(b)
that lists the percentage of disability for the veteran with a disability or deceased
veteran with a disability.
(34)
(29)
"Tax notice charge" means the same as that term is defined in Section
59-2-1301.5
.
(35)
(30)
"Veteran claimant" means one of the following individuals who applies for an
exemption described in Section
59-2a-501
:
(a)
a veteran with a disability;
(b)
the unmarried surviving spouse of:
(i)
a deceased veteran with a disability; or
(ii)
a veteran who was killed in action or died in the line of duty; or
(c)
a minor orphan of:
(i)
a deceased veteran with a disability; or
(ii)
a veteran who was killed in action or died in the line of duty.
(36)
(31)
"Veteran who was killed in action or died in the line of duty" means an
individual who was killed in action or died in the line of duty in an active component of
the United States Armed Forces or a reserve component of the United States Armed
Forces, regardless of whether that individual had a disability at the time that individual
was killed in action or died in the line of duty.
(37)
(32)
"Veteran with a disability" means an individual with a disability who, during
military training or a military conflict, acquired a disability in the line of duty in an
active component of the United States Armed Forces or a reserve component of the
United States Armed Forces, as determined by a military entity.
Section 8. Section
59-2a-102
is amended to read:
59-2a-102
Effective
01/01/27
. Right to file claim -- Death of claimant.
(1)
(a)
The right to file a claim under this chapter is personal to the individual eligible to
file the claim.
(b)
The right to file a claim does not survive the death of the individual eligible to file
the claim.
(c)
The right to file a claim may be exercised on behalf of an individual eligible to file
the claim by:
(i)
a legal guardian; or
(ii)
an attorney-in-fact.
(2)
(a)
If an individual dies after having filed a timely claim, the county or the
commission shall disburse the amount of the claim to another member of the
household as determined by the commission by rule.
(b)
If the individual described in Subsection
(2)(a)
was the only member of the
household, the county or the commission may pay the claim to the executor or
administrator, except that if neither an executor or administrator is appointed and
qualified within two years of the filing of the claim, the amount of the claim escheats
to the state.
(3)
If the individual is the grantor, trustor, or settlor of or holds another similar role in a
qualifying trust and the individual meets the requirements of one or more parts of this
chapter, the individual may claim the portion of the credit and be treated as the owner of
that portion of the property held in trust.
(4)
The relief described in Subsection
59-2a-101(21)(a)
is in addition to any other
exemption or reduction for which a homeowner may be eligible, including the
homeowner's credit provided for in Section
59-2a-305
.
Section 9. Section
59-2a-108
is amended to read:
59-2a-108
Effective
01/01/27
. Extension of time for filing application --
Rulemaking authority -- County authority to make refunds.
(1)
(a)
The commission or a county may extend the time for filing an application until
December 31 of the year the application is required to be filed if, subject to any rules
made by the commission under Subsection (1)(b), the commission or county finds
that good cause exists to extend the deadline.
(b)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules to establish the circumstances under which the
commission or a county may, for good cause, extend the deadline for filing an
application under Subsection (1)(a).
(2)
A county granting an
abatement described in Subsection
59-2a-101(21)
or to an
indigent individual, a homeowner's credit, or an
exemption described in Part 5, Veteran
Armed Forces Exemption, or Part 6, Active Duty Armed Forces Exemption, shall refund
to the recipient of the
abatement, homeowner's credit, or
exemption an amount equal to
the amount by which the property taxes paid exceed the property taxes due, if that
amount is $1 or more.
Section 10. Section
59-2a-109
is amended to read:
59-2a-109
Effective
01/01/27
. Treatment of trusts.
If an applicant for a
homeowner's credit, a deferral, or an abatement
deferral under Part
9, Nondiscretionary Deferral for Eligible Owners,
is the grantor of a trust holding title to real
or tangible personal
property for which
a homeowner's credit, a deferral, or an abatement
a
deferral
is claimed, a county may allow the applicant to claim a portion of the
homeowner's
credit, deferral, or abatement
deferral
and be treated as the owner of that portion of the
property held in trust, if the applicant proves to the satisfaction of the county that:
(1)
title to the portion of the trust will revest in the applicant upon the exercise of a power
by:
(a)
the claimant as grantor of the trust;
(b)
a nonadverse party; or
(c)
both the claimant and a nonadverse party;
(2)
title will revest as described in Subsection
(1)
, regardless of whether the power
described in Subsection
(1)
is a power to revoke, terminate, alter, amend, or appoint;
(3)
the applicant is obligated to pay the taxes on that portion of the trust property beginning
January 1 of the year the claimant claims the
homeowner's credit, deferral, or abatement
deferral
; and
(4)
the claimant satisfies the requirements described in this chapter for
homeowner's credit,
deferral, or abatement
deferral
.
Section 11. Section
59-2a-112
is enacted to read:
59-2a-112
Effective
01/01/27
. County authority to establish county relief
program -- Requirements -- Appeal.
(1)
For a calendar year beginning on or after January 1, 2027, a county may, at the county's
discretion, implement a county relief program to provide property tax relief in the form
of a tax abatement for the poor, as authorized under Utah Constitution, Article XIII,
Section 3, Subsection (4), if:
(a)
the county relief program meets the requirements of Subsection (2);
(b)
in the calendar year immediately preceding the calendar year in which the county
first implements the county relief program, the county, in accordance with Section
59-2a-113:
(i)
advertises the county's intention to consider the county relief program;
(ii)
conducts a public hearing to consider the county relief program; and
(iii)
approves the county relief program by ordinance;
(c)
for each calendar year after the first calendar year in which the county implements
the county relief program, the county, in accordance with Section 59-2a-114:
(i)
imposes a county relief levy; and
(ii)
proportionately distributes the revenue collected from the county relief levy to
each impacted taxing entity; and
(d)
the county complies with all other requirements under this chapter.
(2)
(a)
The relief a county provides through a county relief program may only be
provided:
(i)
to an individual whose total household income is equal to or less than $45,000,
subject to adjustment under Subsection (2)(b);
(ii)
in relation to a claimant's primary residence;
(iii)
for residential property not exceeding one acre of land;
(iv)
to an individual whose household liquid resources do not exceed 40 times the
amount of property taxes levied on the residence for the preceding calendar year;
and
(v)
for not more than 50% of the total tax levied for the individual for the current year.
(b)
For a calendar year beginning on or after January 1, 2028, the commission shall
increase or decrease the household income eligibility amount under Subsection
(2)(a)(i) by a percentage equal to the percentage difference between the consumer
price index for the preceding calendar year and the consumer price index for calendar
year 2026.
(3)
The requirements of this section, Section 59-2a-113, and Section 59-2a-114 do not
apply to:
(a)
an exemption under Part 5, Veteran Armed Forces Exemption, or Part 6, Active Duty
Armed Forces Exemption; or
(b)
a deferral under Part 9, Nondiscretionary Deferral for Eligible Owners.
(4)
(a)
Notwithstanding Section 59-2a-106, an individual who is aggrieved by a denial in
whole or in part of relief claimed under a county relief program may appeal the
denial to the county board of equalization.
(b)
If an individual is dissatisfied with the county board of equalization's decision in an
appeal under this Subsection (4), the individual may appeal to the commission by
filing a notice of appeal in accordance with Section 59-2-1006.
(5)
The authority granted to counties under this section is an extension of the Legislature's
exercise of authority to provide for property tax relief by statute under Utah
Constitution, Article XIII, Section 3.
Section 12. Section
59-2a-113
is enacted to read:
59-2a-113
Effective
01/01/27
. Notice and public hearing before approval of
county relief program -- Approval by ordinance.
(1)
A county may not provide property tax relief through a county relief program unless the
county first advertises the county's intention to do so, holds a public hearing for
purposes of considering the county relief program, and approves the county relief
program by ordinance as provided in this section.
(2)
The advertisement required by this section:
(a)
shall be published:
(i)
electronically in accordance with Section 45-1-101;
(ii)
as a class A notice under Section 63G-30-102; and
(iii)
for at least 14 days before the day on which the taxing entity conducts the public
hearing required under this section; and
(b)
shall contain:
(i)
the date, time, and location of the public hearing at which the county considers the
county relief program; and
(ii)
the estimated tax impact on an average residential and business property within
the county that results from the county relief program.
(3)
The requirements of Subsections 59-2-919(8)(b)(i) and (c) through (f) apply to the
public hearing required by this section.
(4)
At or following the public hearing required by this section, the county shall approve the
county relief program by ordinance.
(5)
The ordinance described in Subsection (4) shall:
(a)
describe the purpose of the county relief program and include information regarding
the county relief levy required by Section 59-2a-114;
(b)
establish the qualifications, procedures, and requirements for individuals within the
county to apply for and receive relief;
(c)
explain a property tax relief applicant's appeal rights as described in Subsection
59-2a-112(4); and
(d)
include any other information the county requires to administer the county relief
program.
(6)
(a)
Upon approval of the ordinance described in Subsection (4), the county may
provide relief through the county relief program beginning no sooner than the
calendar year after adoption of the ordinance.
(b)
An ordinance described in Subsection (4), or any amendment to an ordinance
described in Subsection (4), shall take effect on the first day of a calendar year.
Section 13. Section
59-2a-114
is enacted to read:
59-2a-114
Effective
01/01/27
. Imposition of county relief levy -- Distribution of
revenue.
(1)
A county that provides relief through a county relief program shall impose a county
relief levy as provided in this section.
(2)
A county shall impose the county relief levy described in Subsection (1):
(a)
beginning in the calendar year after the first calendar year in which the county
provides relief through the county relief program; and
(b)
in each calendar year after the calendar year described in Subsection (2)(a) in which
the county provides relief through the county relief program.
(3)
A county relief levy:
(a)
shall be imposed at a rate that is sufficient to generate only the forfeited revenue
amount from the prior calendar year for the relief for which the county relief levy is
imposed; and
(b)
is subject to the notice and public hearing requirements of Section 59-2-919 for each
calendar year after the first calendar year in which the county imposes the county
relief levy.
(4)
A county that imposes a county relief levy shall separately state the following
information on the notices described in Sections 59-2-919.1 and 59-2-1317:
(a)
the rate of the county relief levy; and
(b)
the amount of tax levied.
(5)
A county shall distribute the revenue the county collects from a county relief levy to
each impacted taxing entity within the county, based on the impacted taxing entity's
proportionate share of forfeited revenue in the prior calendar year.
Section 14. Section
59-2a-901
is repealed and reenacted to read:
9. Nondiscretionary Deferral for Eligible Owners
59-2a-901
Effective
01/01/27
. Nondiscretionary deferral for eligible owners.
(1)
For a calendar year beginning on or after January 1, 2027, an eligible owner may apply
to the county for a nondiscretionary deferral under this section for postponement of a
portion of the property taxes due on the eligible owner's primary residence.
(2)
A county shall grant an application for a deferral under this section if:
(a)
the applicant meets the definition of an eligible owner;
(b)
with respect to the primary residence for which the applicant applies for the deferral:
(i)
the eligible owner discloses all outstanding mortgages on the residence, none of
which are a reverse mortgage;
(ii)
the eligible owner's equity interest in the residence exceeds the sum of:
(A)
the amount of taxes and tax notice charges that would be deferred for the
applicant under this section for the current calendar year; and
(B)
the amount of outstanding taxes and tax notice charges previously deferred for
the applicant under this section, including accrued interest; and
(iii)
there are no delinquent property taxes, delinquent tax notice charges, or
outstanding penalties, interest, or administrative costs related to a delinquent
property tax or a delinquent tax notice charge due on the residence, other than:
(A)
taxes and tax notice charges previously deferred under this section; and
(B)
accrued interest on the taxes and tax notice charges described in Subsection
(2)(b)(iii)(A)
; and
(c)
the applicant complies with the other applicable provisions of this part.
(3)
Of the total amount of taxes and tax notice charges levied on an eligible owner's
primary residence for a calendar year in which the eligible owner receives a deferral
under this section:
(a)
the adjusted property tax amount is:
(i)
for an eligible owner whose household income is $65,000 or more, 100% of the
lesser of:
(A)
the base year property tax amount; and
(B)
the current year property tax amount;
(ii)
for an eligible owner whose household income is $55,000 or more but less than
$65,000, 75% of the lesser of:
(A)
the base year property tax amount; and
(B)
the current year property tax amount;
(iii)
for an eligible owner whose household income is $45,000 or more but less than
$55,000, 50% of the lesser of:
(A)
the base year property tax amount; and
(B)
the current year property tax amount;
(iv)
for an eligible owner whose household income is $35,000 or more but less than
$45,000, 25% of the lesser of:
(A)
the base year property tax amount; and
(B)
the current year property tax amount; and
(v)
for an eligible owner whose household income is less than $35,000, $0; and
(b)
the amount deferred is the amount of property taxes exceeding the adjusted property
tax amount.
(4)
(a)
Except as provided in Subsection
(4)(b)
, the deferral period under this section is
one year.
(b)
The county shall extend the deferral period for one or more subsequent one-year
periods if, for each subsequent calendar year in which the eligible owner seeks to
extend the deferral period:
(i)
the eligible owner applies for an extension of the deferral; and
(ii)
the application meets the requirements of Subsection
(2)
.
(c)
For purposes of Subsections
59-2-1331(2)(g)(ii)
and
59-2-1343(1)(d)
, the deferral
period ends on the last day of:
(i)
the initial one-year deferral period, if the county does not extend the deferral
period under Subsection
(4)(b)
; or
(ii)
the final one-year deferral period subsequently granted, if the county extends the
deferral period under Subsection
(4)(b)
.
(5)
(a)
Taxes and tax notice charges deferred under this section accumulate with interest
and applicable recording fees as a lien against the residential property.
(b)
A lien described in this Subsection
(5)
has the same legal status as a lien described in
Section
59-2-1325
.
(c)
To release the lien described in this Subsection
(5)
, except as provided in
Subsections
(5)(d)
through
(f)
, an eligible owner shall pay the total amount subject to
the lien:
(i)
upon the eligible owner selling or otherwise disposing of the residential property;
or
(ii)
when the residential property is no longer the eligible owner's primary residence.
(d)
(i)
An eligible owner that receives a deferral under this section does not have to
pay the deferred taxes, deferred tax notice charges, or applicable recording fees
when the residential property transfers to the eligible owner's surviving spouse as
a result of the eligible owner's death.
(ii)
After the residential property transfers to the eligible owner's surviving spouse,
the deferred taxes, deferred tax notice charges, and applicable recording fees are
due:
(A)
upon the surviving spouse selling or otherwise disposing of the residential
property; or
(B)
when the residential property is no longer the surviving spouse's primary
residence.
(e)
(i)
An eligible owner that receives a deferral under this section does not have to
pay the deferred taxes, deferred tax notice charges, or applicable recording fees
when the residential property transfers between the eligible owner and a trust
described in Section
59-2a-109
if:
(A)
the eligible owner is the grantor of the trust; and
(B)
the residential property remains the eligible owner's primary residence.
(ii)
After the residential property transfers between the eligible owner and a trust
described in Subsection
(5)(e)(i)
, the deferred taxes, deferred tax notice charges,
and applicable recording fees are due when the residential property is no longer
the eligible owner's primary residence.
(f)
(i)
An eligible owner that receives a deferral under this section does not have to
pay the deferred taxes, deferred tax notice charges, or applicable recording fees
when the residential property transfers between the eligible owner and a special
needs trust as described in 42 U.S.C. Sec. 1396p(d)(4) if the beneficiary of the
trust meets the definition of an eligible owner.
(ii)
After the residential property transfers to a special needs trust described in
Subsection
(5)(f)(i)
, the deferred taxes, deferred tax notice charges, and applicable
recording fees are due:
(A)
upon the sale or disposal of the residential property; or
(B)
when the residential property is no longer the primary residence of the
beneficiary of the trust described in Subsection
(5)(f)(i)
.
(g)
When the deferral period ends:
(i)
the lien becomes due and subject to the collection procedures described in Section
59-2-1331
; and
(ii)
the date of levy is the date that the deferral period ends.
(6)
(a)
If a county grants an eligible owner more than one deferral under this section for
the same residential property, including an extension of the deferral period under
Subsection
(4)(b)
, the county is not required to submit for recording more than one
lien.
(b)
Each subsequent deferral relates back to the date of the initial lien filing.
(7)
(a)
For each residential property for which the county grants a deferral under this
section, the county treasurer shall maintain a record that is an itemized account of the
total amount of deferred property taxes and deferred tax notice charges subject to the
lien.
(b)
The record described in this Subsection
(7)
is the official record of the amount of the
lien.
(8)
Notwithstanding Subsection
59-2-1331(2)(c)
, taxes and tax notice charges deferred
under this section bear interest at a rate of 3%.
(9)
A county may not require approval from lien holders for residential property that is
subject to a mortgage or trust deed to receive a deferral under this section.
(10)
A county that grants a deferral to an eligible owner under this section shall:
(a)
provide notice of the adjusted property tax amount to the holder of each mortgage or
trust deed outstanding on the residential property; and
(b)
refund to the eligible owner any amount of property taxes paid by the eligible owner
during the deferral period in excess of the adjusted property tax amount.
Section 15. Section
59-2a-902
is amended to read:
59-2a-902
Effective
01/01/27
. Application -- Rulemaking authority.
(1)
(a)
Except as provided in Section
59-2a-108
or Subsection
(2)
, an applicant for
deferral for the current tax year shall annually file an application on or before
September 1 with the county in which the applicant's property is located.
(b)
An indigent individual may apply and potentially qualify for deferral under Part 7,
Discretionary Deferral, or Part 8, Nondiscretionary Deferral for Property with
Qualifying Increase, an abatement, or both
.
(2)
A county shall extend the September 1 application deadline by one additional year if:
(a)
the applicant had been approved for a deferral under this part in the prior year; or
(b)
the county determines that:
(i)
the applicant or a member of the applicant's immediate family had an illness or
injury that prevented the applicant from filing the application on or before the
September 1 application deadline;
(ii)
a member of the applicant's immediate family died during the calendar year of the
September 1 application deadline;
(iii)
the failure of the applicant to file the application on or before the September 1
application deadline was beyond the reasonable control of the applicant; or
(iv)
denial of an application would be unjust or unreasonable.
(3)
(a)
An applicant shall include in an application a signed statement that describes the
eligibility of the applicant for deferral.
(b)
The requirements described in Subsection
(3)(a)
include:
(i)
proof that the applicant resides at the single-family residence for which the
applicant seeks the deferral;
(ii)
proof of age; and
(iii)
proof of household income.
(4)
Both spouses shall sign an application if the application seeks a deferral on a residence:
(a)
in which both spouses reside; and
(b)
that the spouses own as joint tenants.
(5)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules to implement this section.
Section 16. Section
63J-1-602.2
is amended to read:
63J-1-602.2
Effective
01/01/27
Partially Repealed
07/01/29
. List of nonlapsing
appropriations to programs.
Appropriations made to the following programs are nonlapsing:
(1)
The Legislature and the Legislature's committees.
(2)
The State Board of Education, including all appropriations to agencies, line items, and
programs under the jurisdiction of the State Board of Education, in accordance with
Section
53F-9-103
.
(3)
The Rangeland Improvement Act created in Section
4-20-101
.
(4)
The Percent-for-Art Program created in Section
9-6-404
.
(5)
The LeRay McAllister Working Farm and Ranch Fund Program created in Title
4,
Chapter 46, Part 3
, LeRay McAllister Working Farm and Ranch Fund.
(6)
The Utah Lake Authority created in Section
11-65-201
.
(7)
Dedicated credits accrued to the Utah Marriage Commission as provided under
Subsection
17-66-303(2)(d)(ii)
.
(8)
The Wildlife Land and Water Acquisition Program created in Section
23A-6-205
.
(9)
Sanctions collected as dedicated credits from Medicaid providers under Subsection
26B-3-108(7)
.
(10)
The primary care grant program created in Section
26B-4-310
.
(11)
The Opiate Overdose Outreach Pilot Program created in Section
26B-4-512
.
(12)
The Utah Health Care Workforce Financial Assistance Program created in Section
26B-4-702
.
(13)
The Rural Physician Loan Repayment Program created in Section
26B-4-703
.
(14)
The Utah Medical Education Council for the:
(a)
administration of the Utah Medical Education Program created in Section
26B-4-707
;
(b)
provision of medical residency grants described in Section
26B-4-711
; and
(c)
provision of the forensic psychiatric fellowship grant described in Section
26B-4-712
.
(15)
The Division of Services for People with Disabilities, as provided in Section
26B-6-402
.
(16)
The Communication Habits to reduce Adolescent Threats (CHAT) Pilot Program
created in Section
26B-7-122
.
(17)
Funds that the Department of Alcoholic Beverage Services retains in accordance with
Subsection
32B-2-301(8)(a)
or
(b)
.
(18)
The General Assistance program administered by the Department of Workforce
Services, as provided in Section
35A-3-401
.
(19)
The Utah National Guard, created in Title
39A, National Guard and Militia Act
.
(20)
The Search and Rescue Financial Assistance Program, as provided in Section
53-2a-1102
.
(21)
The Emergency Medical Services Grant Program, as provided in Section
53-2d-207
.
(22)
The Motorcycle Rider Education Program, as provided in Section
53-3-905
.
(23)
The Utah Board of Higher Education for teacher preparation programs, as provided in
Section
53H-5-402
.
(24)
Innovation grants under Section
53G-10-608
, except as provided in Subsection
53G-10-608(3)
.
(25)
The Division of Fleet Operations for the purpose of upgrading underground storage
tanks under Section
63A-9-401
.
(26)
The Division of Technology Services for technology innovation as provided under
Section
63A-16-903
.
(27)
The State Capitol Preservation Board created by Section
63O-2-201
.
(28)
The Office of Administrative Rules for publishing, as provided in Section
63G-3-402
.
(29)
The Colorado River Authority of Utah, created in Title
63M, Chapter 14
, Colorado
River Authority of Utah Act.
(30)
The Governor's Office of Economic Opportunity to fund the Enterprise Zone Act, as
provided in Title
63N, Chapter 2, Part 2
, Enterprise Zone Act.
(31)
The Governor's Office of Economic Opportunity's Rural Employment Expansion
Program, as described in Title
63N, Chapter 4, Part 4
, Rural Employment Expansion
Program.
(32)
County correctional facility contracting program for state inmates as described in
Section
64-13e-103
.
(33)
County correctional facility reimbursement program for state probationary inmates and
state parole inmates as described in Section
64-13e-104
.
(34)
Programs for the Jordan River Recreation Area as described in Section
65A-2-8
.
(35)
The Division of Human Resource Management user training program, as provided in
Section
63A-17-106
.
(36)
A public safety answering point's emergency telecommunications service fund, as
provided in Section
69-2-301
.
(37)
The Traffic Noise Abatement Program created in Section
72-6-112
.
(38)
The money appropriated from the Navajo Water Rights Negotiation Account to the
Division of Water Rights, created in Section
73-2-1.1
, for purposes of participating in a
settlement of federal reserved water right claims.
(39)
The Judicial Council for compensation for special prosecutors, as provided in Section
77-10a-19
.
(40)
A state rehabilitative employment program, as provided in Section
78A-6-210
.
(41)
The Utah Geological Survey, as provided in Section
79-3-401
.
(42)
The Bonneville Shoreline Trail Program created under Section
79-5-503
.
(43)
Adoption document access as provided in Sections
81-13-103
,
81-13-504
, and
81-13-505
.
(44)
Indigent defense as provided in Title
78B, Chapter 22, Part 4
, Utah Indigent Defense
Commission.
(45)
The program established by the Division of Facilities Construction and Management
under Section
63A-5b-703
under which state agencies receive an appropriation and pay
lease payments for the use and occupancy of buildings owned by the Division of
Facilities Construction and Management.
(46)
The State Tax Commission for reimbursing counties for deferrals in accordance with
Section
59-2-1802.5
.
(47)
(46)
The Veterinarian Education Loan Repayment Program created in Section
4-2-902
.
Section 17.
Repealer.
Purpose.
Renter's credit authorized -- No interest allowed.
Time for filing claim for renter's credit -- One claimant per household
per year.
Statement required of renter claimant.
Amount of renter's credit -- Cost-of-living adjustment -- Prohibition
on credit for rental assistance payment -- Calculation of credit when rent includes utilities --
Limitation -- General Fund as source of credit -- Maximum credit.
Determination of rent when not arm's-length transaction.
Purpose of part.
Homeowner's credit authorized -- No interest allowed.
Application for homeowner's credit -- Time for filing -- Obtaining
payment from General Fund.
Claim applied against tax liability -- One claimant per household per
year.
Amount of homeowner's credit -- Cost-of-living adjustment --
Limitation -- General Fund as source of credit.
Tax abatement for indigent individuals -- Maximum amount.
Application -- Rulemaking.
Tax and tax notice charge deferral.
Application -- Rulemaking authority.
Nondiscretionary property tax and tax notice charge deferral for
property with qualifying increase.
Application -- Rulemaking authority.
Reimbursement to counties.
Section 18.
FY 2027 Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1,
2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
fiscal year 2027.
Subsection 18(a).
Operating and Capital Budgets
Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
Legislature appropriates the following sums of money from the funds or accounts indicated for
the use and support of the government of the state of Utah.
GENERAL GOVERNMENT
DEPARTMENT OF GOVERNMENT OPERATIONS
ITEM 1
Department of Government Operations - Finance - Mandated
From General Fund
8,954,000
From General Fund, One-time
(7,806,000)
Property Tax Deferral
1,148,000
Under the provisions of Utah Code Annotated
Title 63G, Chapter 6b, the Legislature intends that the
Division of Finance provide a direct award grant of
$1,148,000 to the Utah Association of Counties in Fiscal
Year 2027 for payment of loans to counties and
administrative costs in accordance with Subsection
59-2-1602(5), enacted in S.B. 78, Property Tax Relief
Amendments.
Section 19.
Effective Date.
This bill takes effect on
January 1, 2027
.
Section 20.
Coordinating S.B. 78 with S.B. 206.
If S.B. 78, Property Tax Relief Amendments, and S.B. 206, Tax Amendments, both pass
and become law, the Legislature intends that, on January 1, 2027:
(1)
the amendments to Subsection 59-2-1602(1)(b) in S.B. 78 not be made;
(2)
Subsection 59-2-1602(1)(e), enacted in S.B. 206, be amended to read:
"(e) Except as provided in Subsection (6), the program manager may spend money
the Division of Finance allocates to the program manager only for STATS."; and
(3)
Subsection 59-2-1602(5), enacted in S.B. 78, be renumbered and amended to read:
"(6) (a) Subject to appropriation, the program manager may use money in the fund to:
(i) make loans to counties to pay the costs to the county and impacted taxing entities
resulting from the county's granting of deferrals under Chapter 2a, Part 9,
Nondiscretionary Deferral for Eligible Owners; and
(ii) pay the program manager's administrative costs in making loans under this
Subsection (6).
(b) A county or impacted taxing entity that receives loan proceeds under this
Subsection (6), either directly or indirectly, may not increase the county's or impacted
taxing entity's certified tax rate as a result of receiving less property tax revenue
resulting from the county's granting of deferrals under Chapter 2a, Part 9,
Nondiscretionary Deferral for Eligible Owners.".
3-4-26 6:07 PM