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S.B. 64
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RESIDENTIAL EXEMPTION - SECONDARY
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RESIDENCES
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Ed P. Mayne
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AN ACT RELATING TO THE PROPERTY TAX ACT; AMENDING THE DEFINITION OF
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RESIDENTIAL PROPERTY TO INCLUDE SECONDARY RESIDENCES; DEFINING TERMS;
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PROVIDING PROCEDURES FOR A PROPERTY OWNER TO CLAIM A RESIDENTIAL
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EXEMPTION FOR A SECONDARY RESIDENCE; AND MAKING TECHNICAL CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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59-2-102, as last amended by Chapter 134, Laws of Utah 1999
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59-2-103, as last amended by Chapter 275, Laws of Utah 1995
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
59-2-102
is amended to read:
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59-2-102. Definitions.
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As used in this chapter and title:
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(1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
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engaging in dispensing activities directly affecting agriculture or horticulture with an airworthiness
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certificate from the Federal Aviation Administration certifying the aircraft or rotorcraft's use for
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agricultural and pest control purposes.
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(2) "Air charter service" means an air carrier operation which requires the customer to hire
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an entire aircraft rather than book passage in whatever capacity is available on a scheduled trip.
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(3) "Air contract service" means an air carrier operation available only to customers who
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engage the services of the carrier through a contractual agreement and excess capacity on any trip
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and is not available to the public at large.
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(4) "Aircraft" is as defined in Section
72-10-102
.
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(5) "Airline" means any air carrier operating interstate routes on a scheduled basis which
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offers to fly passengers or cargo on the basis of available capacity on regularly scheduled routes.
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(6) "Assessment roll" means a permanent record of the assessment of property as assessed
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by the county assessor and the commission and may be maintained manually or as a computerized
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file as a consolidated record or as multiple records by type, classification, or categories.
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(7) "Certified revenue levy" means a property tax levy that provides the same amount of
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ad valorem property tax revenue as was collected for the prior year, plus new growth, but exclusive
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of revenue from collections from redemptions, interest, and penalties.
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(8) "County-assessed commercial vehicle" means:
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(a) any commercial vehicle, trailer, or semitrailer which is not apportioned under Section
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41-1a-301
and is not operated interstate to transport the vehicle owner's goods or property in
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furtherance of the owner's commercial enterprise;
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(b) any passenger vehicle owned by a business and used by its employees for
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transportation as a company car or vanpool vehicle; and
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(c) vehicles which are:
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(i) especially constructed for towing or wrecking, and which are not otherwise used to
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transport goods, merchandise, or people for compensation;
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(ii) used or licensed as taxicabs or limousines;
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(iii) used as rental passenger cars, travel trailers, or motor homes;
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(iv) used or licensed in this state for use as ambulances or hearses;
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(v) especially designed and used for garbage and rubbish collection; or
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(vi) used exclusively to transport students or their instructors to or from any private,
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public, or religious school or school activities.
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(9) (a) Except as provided in Subsection (9)(b), for purposes of Section
59-2-801
,
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"designated tax area" means a tax area created by the overlapping boundaries of only the following
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taxing entities:
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(i) a county; and
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(ii) a school district.
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(b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
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by the overlapping boundaries of:
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(i) the taxing entities described in Subsection (9)(a); and
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(ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a) and
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the boundaries of the city or town are identical; or
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(B) a special service district if the boundaries of the school district under Subsection (9)(a)
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are located entirely within the special service district.
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(10) (a) "Escaped property" means any property, whether personal, land, or any
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improvements to the property, subject to taxation and is:
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(i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
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to the wrong taxpayer by the assessing authority;
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(ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
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comply with the reporting requirements of this chapter; or
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(iii) undervalued because of errors made by the assessing authority based upon incomplete
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or erroneous information furnished by the taxpayer.
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(b) Property which is undervalued because of the use of a different valuation methodology
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or because of a different application of the same valuation methodology is not "escaped property."
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(11) "Fair market value" means the amount at which property would change hands
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between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and
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both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair market
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value" shall be determined using the current zoning laws applicable to the property in question,
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except in cases where there is a reasonable probability of a change in the zoning laws affecting that
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property in the tax year in question and the change would have an appreciable influence upon the
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value.
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(12) "Farm machinery and equipment," for purposes of the exemption provided under
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Section
59-2-1101
, means tractors, milking equipment and storage and cooling facilities, feed
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handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
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tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
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equipment used primarily for agricultural purposes; but does not include vehicles required to be
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registered with the Motor Vehicle Division or vehicles or other equipment used for business
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purposes other than farming.
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(13) "Geothermal fluid" means water in any form at temperatures greater than 120 degrees
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centigrade naturally present in a geothermal system.
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(14) "Geothermal resource" means:
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(a) the natural heat of the earth at temperatures greater than 120 degrees centigrade; and
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(b) the energy, in whatever form, including pressure, present in, resulting from, created by,
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or which may be extracted from that natural heat, directly or through a material medium.
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(15) "Improvements" includes all buildings, structures, fixtures, fences, and improvements
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erected upon or affixed to the land, whether the title has been acquired to the land or not.
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(16) "Intangible property":
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(a) means property that is capable of private ownership separate from tangible property;
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and
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(b) includes:
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(i) moneys;
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(ii) credits;
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(iii) bonds;
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(iv) stocks;
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(v) representative property;
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(vi) franchises;
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(vii) licenses;
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(viii) trade names;
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(ix) copyrights; and
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(x) patents.
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(17) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
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(18) "Mine" means a natural deposit of either metalliferous or nonmetalliferous valuable
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mineral.
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(19) "Mining" means the process of producing, extracting, leaching, evaporating, or
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otherwise removing a mineral from a mine.
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(20) (a) "Mobile flight equipment" means tangible personal property that is:
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(i) owned or operated by an:
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(A) air charter service;
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(B) air contract service; or
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(C) airline; and
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(ii) (A) capable of flight;
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(B) attached to an aircraft that is capable of flight; or
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(C) contained in an aircraft that is capable of flight if the tangible personal property is
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intended to be used:
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(I) during multiple flights;
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(II) during a takeoff, flight, or landing; and
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(III) as a service provided by an air charter service, air contract service, or airline.
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(b) (i) "Mobile flight equipment" does not include a spare part other than a spare engine
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that is rotated:
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(A) at regular intervals; and
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(B) with an engine that is attached to the aircraft.
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(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
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commission may make rules defining the term "regular intervals."
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(21) "Nonmetalliferous minerals" includes[, but is not limited to,] oil, gas, coal, salts, sand,
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rock, gravel, and all carboniferous materials.
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(22) "Personal property" includes:
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(a) [every] each class of property as defined in Subsection [(23)] (24) which is the subject
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of ownership and not included within the meaning of the terms "real estate" and "improvements";
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(b) gas and water mains and pipes laid in roads, streets, or alleys;
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(c) bridges and ferries; and
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(d) livestock which, for the purposes of the exemption provided under Section
59-2-1112
,
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means all domestic animals, honeybees, poultry, fur-bearing animals, and fish.
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(23) (a) "Primary residence" means property used:
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(i) for residential purposes; and
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(ii) as a domicile.
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(b) "Primary residence" does not include:
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(i) property used as a transient residence; or
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(ii) a condominium used in a rental pool.
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[(23)] (24) (a) "Property" means property that is subject to assessment and taxation
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according to its value.
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(b) "Property" does not include intangible property as defined in this section.
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[(24)] (25) "Public utility," for purposes of this chapter, means the operating property of
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a railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
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company, electrical corporation, telephone corporation, sewerage corporation, or heat corporation
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where the company performs the service for, or delivers the commodity to, the public generally
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or companies serving the public generally, or in the case of a gas corporation or an electrical
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corporation, where the gas or electricity is sold or furnished to any member or consumers within
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the state for domestic, commercial, or industrial use. Public utility also means the operating
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property of any entity or person defined under Section
54-2-1
except water corporations.
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[(25)] (26) "Real estate or property" includes:
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(a) the possession of, claim to, ownership of, or right to the possession of land;
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(b) all mines, minerals, and quarries in and under the land, all timber belonging to
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individuals or corporations growing or being on the lands of this state or the United States, and all
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rights and privileges appertaining to these; and
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(c) improvements.
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[(26)] (27) "Residential property," for the purposes of the reductions and adjustments
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under this chapter, means [any property used for residential purposes as] a:
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(a) primary residence[. It does not include property used for transient residential use or
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condominiums used in rental pools]; or
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(b) secondary residence.
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[(27)] (28) For purposes of Subsection
59-2-801
(1)(e), "route miles" means the number
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of miles calculated by the commission that is:
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(a) measured in a straight line by the commission; and
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(b) equal to the distance between a geographical location that begins or ends:
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(i) at a boundary of the state; and
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(ii) where an aircraft:
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(A) takes off; or
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(B) lands.
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(29) (a) "Secondary residence" means property that:
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(i) is used for residential purposes; and
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(ii) is not a primary residence.
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(b) "Secondary residence" does not include:
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(i) a condominium used in a rental pool; or
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(ii) property:
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(A) owned by a for-profit business entity; or
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(B) owned by more than two persons, unless the persons are related as described in Section
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267(c)(4), Internal Revenue Code.
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[(28)] (30) (a) "State-assessed commercial vehicle" means:
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(i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate to
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transport passengers, freight, merchandise, or other property for hire; or
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(ii) any commercial vehicle, trailer, or semitrailer which operates interstate and transports
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the vehicle owner's goods or property in furtherance of the owner's commercial enterprise.
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(b) "State-assessed commercial vehicle" does not include vehicles used for hire which are
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specified in Subsection (8)(c) as county-assessed commercial vehicles.
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[(29)] (31) "Taxable value" means fair market value less any applicable reduction allowed
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for residential property under Section
59-2-103
.
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[(30)] (32) "Tax area" means a geographic area created by the overlapping boundaries of
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one or more taxing entities.
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[(31)] (33) "Taxing entity" means any county, city, town, school district, special taxing
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district, or any other political subdivision of the state with the authority to levy a tax on property.
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[(32)] (34) "Tax roll" means a permanent record of the taxes charged on property, as
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extended on the assessment roll and may be maintained on the same record or records as the
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assessment roll or may be maintained on a separate record properly indexed to the assessment roll.
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It includes tax books, tax lists, and other similar materials.
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Section 2.
Section
59-2-103
is amended to read:
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59-2-103. Rate of assessment of property -- Residential property.
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(1) All tangible taxable property shall be assessed and taxed at a uniform and equal rate
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on the basis of its fair market value, as valued on January 1, unless otherwise provided by law.
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(2) [Beginning January 1, 1995, the] The fair market value of residential property [shall
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be reduced by 45%, representing a residential exemption allowed under Utah Constitution Article
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XIII, Section 2, Utah Constitution.] is subject to the following residential exemptions:
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(a) beginning on January 1, 1995, 45% of the fair market value of a primary residence is
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exempt; and
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(b) beginning on January 1, 2001, 25% of the first $150,000 of the fair market value of a
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secondary residence is exempt as provided in Subsection (4).
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(3) No more than one acre of land per residential unit may qualify for [the] a residential
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exemption.
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(4) An owner of a secondary residence claiming a residential exemption for the secondary
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residence under Subsection (2)(b) shall file a signed statement with the county assessor:
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(a) (i) subject to Subsection (5), in any year before the year in which the owner claims the
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residential exemption for the secondary residence; or
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(ii) (A) subject to Subsection (5), in the year in which the owner claims a residential
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exemption for the secondary residence; and
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(B) on or before the deadline for filing appeals under Section
59-2-1004
; and
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(b) certifying that:
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(i) the property is a secondary residence;
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(ii) the owner does not have a signed statement on file with any county assessor in the state
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certifying that another property in the state is a secondary residence;
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(iii) the owner shall not rent the property during a calendar year in which the owner is
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claiming the residential exemption for the secondary residence; and
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(iv) the owner shall notify the county assessor in writing within 30 days after the day on
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which:
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(A) there is a change of ownership of the property; or
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(B) the property does not meet the definition of secondary residence under Section
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59-2-102
.
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(5) If an owner files a signed statement meeting the requirements of Subsection (4) for a
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secondary residence that qualifies for a residential exemption under this part, for the time period
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during which the secondary residence qualifies for the residential exemption:
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(a) the signed statement is valid; and
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(b) the owner is not required to file another signed statement under Subsection (4).
Legislative Review Note
as of 2-1-00 3:27 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.