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59-2-1102
0
Property Tax Exemption Process Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Keith Grover
House Sponsor: David Shallenberger
LONG TITLE
General Description:
This bill modifies provisions related to the property tax exemption process.
Highlighted Provisions:
This bill:
defines terms;
establishes deadlines for:
a property owner to file an application with the county board of equalization for a
property tax exemption; and
the county board of equalization to render a written decision on an application for a
property tax exemption;
authorizes the county board of equalization to request additional information from an
applicant for a property tax exemption, in addition to or in lieu of holding a hearing on
the application;
provides for the county board of equalization to revoke a property tax exemption if
property no longer qualifies for an exemption;
requires the county board of equalization to include notice of a property owner's appeal
rights in a written decision regarding a property tax exemption; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-2-1102
, as last amended by Laws of Utah 2024, Chapter 254
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
59-2-1102
is amended to read:
59-2-1102
. Application for exemption to county board of equalization -- Request
for additional information or hearing -- Appeal -- Exceptions -- Annual statement --
Revocation.
(1)
(a)
For property assessed under Part 3, County Assessment, the county board of
equalization may, after giving notice in a manner prescribed by rule, determine
whether certain property within the county is exempt from taxation.
(b)
The decision of the county board of equalization described in Subsection (1)(a) shall:
(i)
be in writing; and
(ii)
include:
(A)
a statement of facts; and
(B)
the statutory basis for its decision.
(c)
Except as provided in Subsection (10)(a), a copy of the decision described in
Subsection (1)(a) shall be sent on or before May 15 to the person applying for the
exemption.
(1)
As used in this section, "exclusive use exemption" means the same as that term is
defined in Section
59-2-1101
.
(2)
Except as provided in Subsection
(7) and subject to Subsection (8)
(5)
or
(7)(a)
, a
county board of equalization may not grant an exemption under this part unless the
person affected or the person's agent:
(a)
submits a written application to the county board of equalization
on or before March
1 of the year for which the exemption is sought
; and
(b)
verifies the application by signed statement.
(3)
(a)
The county board of equalization may require a person making an application for
exemption to
provide additional information regarding the application,
appear before
the county board of equalization
and
in a hearing to
be examined under oath
, or both
.
(b)
If the county board of equalization requires a person making an application for
exemption to
provide additional information,
appear before the county board of
equalization
in a hearing
,
or both,
the county board of equalization may not grant an
exemption unless the person affected or the person's agent appears and answers all
questions pertinent to the inquiry
, as requested
.
(4)
(c)
For the
If the county board of equalization requests a
hearing on the
application, the county board of equalization may subpoena any witnesses, and hear
and take any evidence in relation to the pending application.
(5)
(4)
(a)
Except as provided in Subsection
(10)(b)
(7)(b)
,
if a person files an
application in accordance with this section for an exemption under this part,
the
county board of equalization shall
hold hearings and
render
to the applicant
a
written decision
to determine any exemption on or before May 1 in each year
on the
application on or before the date on which the county assessor is required to complete
and deliver the assessment book, as specified in Section
59-2-311
, for the year in
which the application is filed
.
(b)
The county board of equalization's written decision on an application under this
Subsection
(4)
shall include a notice informing the property owner of the right to file
an appeal with the commission under Section
59-2-1006
if the property owner is
dissatisfied with the written decision.
(6)
(c)
Any person that made an exemption application and is dissatisfied with the
decision of the county board of equalization regarding any exemption
An applicant
for an exemption
may appeal to the commission
under
in accordance with
Section
59-2-1006
if the applicant is dissatisfied with the county board of equalization's
written decision on the application under this Subsection
(4)
.
(7)
(5)
(a)
A county board of equalization may not require an owner of property to file
an application in accordance with this section to claim an exemption for the property
under the following:
(i)
Subsection
59-2-1101(3)(a)(i)
;
(ii)
Subsection
59-2-1101(3)(a)(vi)
or
(viii)
;
(iii)
Section
59-2-1110
;
(iv)
Section
59-2-1111
;
(v)
Section
59-2-1112
;
(vi)
Section
59-2-1113
; or
(vii)
Section
59-2-1114
.
(b)
A county board of equalization may not require an owner of property to file an
application in accordance with this section to claim an exemption for the property
described in Subsection
59-2-1101(3)(a)(ii)
or
(iii)
unless the property is property
described in Subsection
59-2-1101(1)(j)(ii)
.
(8)
(a)
Except as provided in Subsection (8)(b), for property described in Subsection
59-2-1101(3)(a)(iv) or (v), a county board of equalization shall, consistent with
Subsection (9), require an owner of that property to file an application in accordance
with this section to claim an exemption for that property.
(b)
(c)
A county board of equalization may not require an owner of property described
in Subsection
59-2-1101(3)(a)(iv)
or
(v)
to file an application
under Subsection (8)(a)
in accordance with this section to claim an exemption for that property
if:
(i)
the owner filed an application
under Subsection (8)(a)
for an exemption in
accordance with this section
;
(ii)
the county board of equalization determines that the owner may claim an
exemption for that property; and
(iii)
the exemption described in Subsection
(8)(b)(ii)
(5)(c)(ii)
is in effect.
(c)
(6)
(i)
(a)
For the time period that an owner is granted an exemption in accordance
with this section for property described in Subsection
59-2-1101(3)(a)(iv)
or
(v)
, a
county board of equalization shall require the owner to file an annual statement on or
before March 1 on a form prescribed by the commission establishing that the
property continues to be eligible for the exemption.
(ii)
(b)
(i)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
Act, the commission shall make rules providing:
(A)
the form for the annual statement required by Subsection
(8)(c)(i)
(6)(a)
;
(B)
the contents of the form for the annual statement required by Subsection
(8)(c)(i)
(6)(a)
; and
(C)
procedures and requirements for making the annual statement required by
Subsection
(8)(c)(i)
(6)(a)
.
(iii)
(ii)
The commission shall make the form described in Subsection
(8)(c)(ii)(A)
(6)(b)(i)(A)
available to counties.
(d)
(c)
On or before April 1, a
If an owner of exempt property described in Subsection
59-2-1101(3)(a)(iv)
or
(v)
fails to timely file the annual statement required by
Subsection
(6)(a)
, the
county board of equalization shall
notify each property owner
that fails to timely file an annual statement in accordance with Subsection (8)(c) of
the county board of equalization's intent to revoke the exemption.
:
(i)
revoke the exemption for that property; and
(ii)
notify the property owner of the revocation on or before April 1 of the year in
which the property owner fails to timely file the annual statement.
(e)
(d)
An owner of exempt property described in Subsection
59-2-1101(3)(a)(iv)
or
(v)
may file the annual statement
described in Subsection (8)(c)
required by Subsection
(6)(a)
after March 1 if the property owner:
(i)
files the annual statement on or before March 31; and
(ii)
includes a statement of facts establishing that the property owner was unable to
file the annual statement on or before March 1 due to one of the following
conditions and no other responsible party was capable of filing the annual
statement:
(A)
a medical emergency of the property owner, an immediate family member of
the property owner, or the property owner's agent;
(B)
the death of the property owner, an immediate family member of the property
owner, or the property owner's agent; or
(C)
other extraordinary and unanticipated circumstances.
(9)
(7)
(a)
For purposes of this Subsection (9), "exclusive use exemption" means the
same as that term is defined in Section
59-2-1101
.
(b)
(a)
For purposes of Subsection
(1)(a)
(2)
, when a person acquires property on or
after January 1 that qualifies for an exclusive use exemption, that person may apply
for the exclusive use exemption on or before the later of:
(i)
the day set by rule as the deadline for filing a property tax exemption application
June 1 of the year in which the property is acquired
; or
(ii)
120 days after the day on which the property is acquired.
(10)
(a)
(b)
Notwithstanding Subsection
(1)(c)
(4)
, if a person files an application for an
exclusive use
exemption under
this
Subsection
(9), a
(7)
, the
county board of
equalization shall
send a copy of the decision described in Subsection (1)(c) to the
person applying for the exemption
render to the applicant a written decision on the
application
on or before the later of:
(i)
May 15; or
(ii)
45
90
days after the day on which the application for the exemption is filed.
(c)
The county board of equalization's written decision on an application under this
Subsection
(7)
shall include a notice informing the property owner of the right to file
an appeal with the commission under Section
59-2-1006
if the property owner is
dissatisfied with the county board of equalization's written decision.
(d)
An applicant for an exclusive use exemption may appeal to the commission in
accordance with Section
59-2-1006
if the applicant is dissatisfied with the county
board of equalization's written decision on the application under this Subsection
(7)
.
(b)
Notwithstanding Subsection (5), if an application for an exemption is filed under
Subsection (9), a county board of equalization shall hold the hearing and render the
decision described in Subsection (5) on or before the later of:
(i)
May 1; or
(ii)
30 days after the day on which the application for the exemption is filed.
(8)
(a)
If a county board of equalization has reason to believe that property granted an
exemption under this part may no longer qualify for an exemption, the county board
of equalization may, after giving notice to the property owner in a manner prescribed
by rule:
(i)
determine whether the property continues to qualify for an exemption under this
part; and
(ii)
render to the applicant a written decision revoking the exemption for that property
if the county board of equalization determines that the property no longer qualifies
for an exemption under this part.
(b)
The county board of equalization's written decision to revoke an exemption under
this Subsection
(8)
shall include a notice informing the property owner of the right to
file an appeal with the commission under Section
59-2-1006
if the property owner is
dissatisfied with the written decision.
(c)
An owner of property for which the county board of equalization renders a written
decision to revoke an exemption under this Subsection
(8)
may appeal to the
commission in accordance with Section
59-2-1006
if the property owner is
dissatisfied with the county board of equalization's written decision.
Section 2.
Effective Date.
This bill takes effect on
January 1, 2027
.
3-10-26 1:21 PM