Tax Commission, Property Tax

Section R884-24P-71

Agreements with Commercial or Industrial Taxpayers for Equal Property Tax Payments Pursuant to Utah Code Ann. Section 59-2-1308.5

Notice of Proposed Rule

(Amendment)

DAR File No.: 35183
Filed: 08/25/2011 12:40:34 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-2-1308.5 of 2011 S.B. 157 requires the Tax Commission promulgate rules to ensure that payments under a property tax equal payment contract to not affect the certified tax rate calculation.

Summary of the rule or change:

The proposed rule indicates that an agreement with a commercial or industrial taxpayer for equal property tax payments must be agreed to by all parties on or before May 31 to be effective in the current calendar year; provides that a payment agreement affects only those taxing entities that are a party to the agreement; and, to ensure that the agreement does not impact the calculation of the certified tax rate, requires the commission to adjust the collection ratio under Section 59-2-924 for each taxpayer that is a party to the agreement to equal what it would have been in the absence of the agreement.

State statutory or constitutional authorization for this rule:

• Section 59-2-1308.5

Anticipated cost or savings to:

the state budget:

None--Any impact would have been considered in S.B. 157 (2011 General Session).

local governments:

None--Any impact would have been considered in S.B. 157 (2011 General Session).

small businesses:

None--Any impact would have been considered in S.B. 157 (2011 General Session).

persons other than small businesses, businesses, or local governmental entities:

None--Any impact would have been considered in S.B. 157 (2011 General Session).

Compliance costs for affected persons:

None--S.B. 157 (2011 General Session) provides an option for certain property tax taxpayers to enter into agreements with local government entities and the Tax Commission for equal property tax payments over a period of up to 20 years.

Comments by the department head on the fiscal impact the rule may have on businesses:

Any fiscal impact on business was considered by the legislature when enacting S.B. 157 (2011 General Session).

Michael Cragun, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Property Tax
210 N 1950 W
SALT LAKE CITY, UT 84134

Direct questions regarding this rule to:

• Christa Johnson at the above address, by phone at 801-297-3901, by FAX at 801-297-3907, or by Internet E-mail at cj@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/17/2011

This rule may become effective on:

10/24/2011

Authorized by:

Michael Cragun, Tax Commissioner

R884. Tax Commission, Property Tax.

R884-24P. Property Tax.

R884-24P-71. Agreements with Commercial or Industrial Taxpayers for Equal Property Tax Payments Pursuant to Utah Code Ann. Section 59-2-1308.5.

(1) An agreement with a commercial or industrial taxpayer for equal property tax payments under Section 59-2-1308.5 is effective:

(a) the current calendar year, if the agreement is agreed to by all parties on or before May 31; or

(b) the subsequent calendar year, if the agreement is agreed to by all parties after May 31.

(2) An agreement under Subsection (1) affects only those taxing entities that are a party to the agreement.

(3) The commission shall ensure that an agreement under Subsection (1) does not affect the calculation of the certified tax rate by adjusting the formula under Section 59-2-924 so that the collection ratio for each taxpayer that is a party to the agreement is based on the amount that would have been collected according to the same valuation and assessment methodologies that would have been applied in the absence of the agreement.

 

KEY: taxation, personal property, property tax, appraisals

Date of Enactment or Last Substantive Amendment: [December 15, 2010]2011

Notice of Continuation: March 12, 2007

Authorizing, and Implemented or Interpreted Law: Art. XIII, Sec 2; 9-2-201; 11-13-302; 41-1a-202; 41-1a-301; 59-1-210; 59-2-102; 59-2-103; 59-2-103.5; 59-2-104; 59-2-201; 59-2-210; 59-2-211; 59-2-301; 59-2-301.3; 59-2-302; 59-2-303; 59-2-303.1; 59-2-305; 59-2-306; 59-2-401; 59-2-402; 59-2-404; 59-2-405; 59-2-405.1; 59-2-406; 59-2-508; 59-2-515; 59-2-701; 59-2-702; 59-2-703; 59-2-704; 59-2-704.5; 59-2-705; 59-2-801; 59-2-918 through 59-2-924; 59-2-1002; 59-2-1004; 59-2-1005; 59-2-1006; 59-2-1101; 59-2-1102; 59-2-1104; 59-2-1106; 59-2-1107 through 59-2-1109; 59-2-1113; 59-2-1115; 59-2-1202; 59-2-1202(5); 59-2-1302; 59-2-1303; 59-2-1317; 59-2-1328; 59-2-1330; 59-2-1347; 59-2-1351; 59-2-1365