Tax Commission, Property Tax

Section R884-24P-66

Appeal to County Board of Equalization Pursuant to Utah Code Ann. Section 59-2-1004

Notice of Proposed Rule

(Amendment)

DAR File No.: 35864
Filed: 02/09/2012 10:27:59 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-2-1004 requires the Tax Commission to promulgate rules providing for circumstances under which a county board of equalization shall accept an appeal filed after the appeal filing period has ended. This section includes factual error as condition that requires a hearing on an otherwise late filed appeal, and the proposed amendment refines the circumstances that qualify as factual error. In addition, the section is amended to add procedures that a county board of equalization (BOE) is required to follow if the county BOE has not enacted its own procedures.

Summary of the rule or change:

The proposed amendment provides that factual error includes an error if both the taxpayer and the assessor agree, including an error in the classification of a property that is eligible for valuation under the Farmland Assessment Act. In addition, the amendment includes procedures a county BOE must follow if the county BOE has not enacted its own procedures. These procedures are, in large part, procedures that were formerly found in Tax Commission Section R861-1A-9. In bringing the procedures from Section R861-1A-9 to this rule, the commission proposes: 1) repealing the provision allowing a taxpayer who appears before a county BOE and fails to produce a signed statement containing evidence supporting the taxpayer's claim for relief an additional twenty days to provide that statement; and 2) requiring the county BOE to maintain a record of the appeal.

State statutory or constitutional authorization for this rule:

• Section 59-2-1004

Anticipated cost or savings to:

the state budget:

None--Property tax revenues are local revenues.

local governments:

Potential immaterial gain--The proposed amendment may narrow the number of property tax appeals before a county board of equalization, which in turn may decrease the number of property tax appeals decided in favor of taxpayers.

small businesses:

Potential immaterial gain--The proposed amendment may narrow the number of property tax appeals before a county board of equalization, which in turn may decrease the number of property tax appeals decided in favor of taxpayers.

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

Potential immaterial gain--The proposed amendment may narrow the number of property tax appeals before a county board of equalization, which in turn may decrease the number of property tax appeals decided in favor of taxpayers.

Compliance costs for affected persons:

None--The proposed amendment may narrow the number of property tax appeals before a county board of equalization.

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

This amendment may preclude a taxpayer who might qualify for relief under the current rule from obtaining relief under the new section.

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:

04/02/2012

This rule may become effective on:

04/09/2012

Authorized by:

Michael Cragun, Tax Commissioner

R884. Tax Commission, Property Tax.

R884-24P. Property Tax.

R884-24P-66. [Appeal to ]County Board of Equalization Procedures and Appeals Pursuant to Utah Code Ann. Section 59-2-1004.

(1)(a) "Factual error" means an error that is:

(i) objectively verifiable without the exercise of discretion, opinion, or judgment[, and];

(ii) demonstrated by clear and convincing evidence ; and

(iii) agreed upon by the taxpayer and the assessor.

(b) Factual error includes:

(i) a mistake in the description of the size, use, or ownership of a property;

(ii) a clerical or typographical error in reporting or entering the data used to establish valuation or equalization;

(iii) an error in the classification of a property that is eligible for a property tax exemption under:

(A) Section 59-2-103; or

(B) Title 59, Chapter 2, Part 11;

(iv) an error in the classification of a property that is eligible for assessment under Title 59, Chapter 2, Part 5;

[(iv)](v) valuation of a property that is not in existence on the lien date; and

[(v)](vi) a valuation of a property assessed more than once, or by the wrong assessing authority.

(c) Factual error does not include:

(i) an alternative approach to value;

(ii) a change in a factor or variable used in an approach to value; or

(iii) any other adjustment to a valuation methodology.

(2) If the county has not formally adopted board of equalization rules and procedures under Section 59-2-1001 that have been approved by the commission, the procedures contained in this rule must be followed.

(3) To achieve standing with the county board of equalization and have a decision rendered on the merits of the case, the taxpayer shall provide the following minimum information to the county board of equalization:

(a) the name and address of the property owner;

(b) the identification number, location, and description of the property;

(c) the value placed on the property by the assessor;

(d) the taxpayer's estimate of the fair market value of the property; and

(e) a signed statement indicating the evidence or documentation that the taxpayer will present to the county board of equalization.

(4) If the signed statement required under Subsection (3)(e) is not attached, the county will notify the taxpayer of the defect in the claim and permit at least ten calendar days to cure the defect before dismissing the matter for lack of sufficient evidence to support the claim for relief.

(5) If the taxpayer appears before the county board of equalization and fails to produce the evidence or documentation described under Subsection (3)(e) and the county has notified the taxpayer under Subsection (4), the county may dismiss the matter for lack of evidence to support a claim for relief.

(6) If the minimum information required under Subsection (3) is supplied and the taxpayer produces the evidence or documentation described in the taxpayer's signed statement under Subsection (3)(e), the county board of equalization shall render a decision on the merits of the case.

(7) The county board of equalization may dismiss an appeal for lack of jurisdiction when the claimant limits arguments to issues not under the jurisdiction of the county board of equalization.

(8) The county board of equalization shall prepare and maintain a record of the appeal.

(a) For appeals concerning property value, the record shall include:

(i) the name and address of the property owner;

(ii) the identification number, location, and description of the property;

(iii) the value placed on the property by the assessor;

(iv) the basis for appeal stated in the taxpayer's appeal;

(v) facts and issues raised in the hearing before the county board that are not clearly evident from the assessor's records; and

(vi) the decision of the county board of equalization and the reasons for the decision.

(b) The record may be included in the minutes of the hearing before the county board of equalization.

(9)(a) The county board of equalization shall notify the taxpayer in writing of its decision.

(b) The notice required under Subsection (9)(a) shall include:

(i) the name and address of the property owner;

(ii) the identification number of the property;

(iii) the date the notice was sent;

(iv) a notice of appeal rights to the commission; and

(v) a statement of the decision of the county board of equalization; or

(vi) a copy of the decision of the county board of equalization.

(10) A county shall maintain a copy of a notice sent to a taxpayer under Subsection (9).

(11) If a decision affects the exempt status of a property, the county board of equalization shall prepare its decision in writing, stating the reasons and statutory basis for the decision.

(12) Decisions by the county board of equalization are final orders on the merits.

[(2)](13) Except as provided in Subsection [(4)](15), a county board of equalization shall accept an application to appeal the valuation or equalization of a property owner's real property that is filed after the time period prescribed by Section 59-2-1004(2)(a) if any of the following conditions apply:

(a) During the period prescribed by Section 59-2-1004(2)(a), the property owner was incapable of filing an appeal as a result of a medical emergency to the property owner or an immediate family member of the property owner, and no co-owner of the property was capable of filing an appeal.

(b) During the period prescribed by Section 59-2-1004(2)(a), the property owner or an immediate family member of the property owner died, and no co-owner of the property was capable of filing an appeal.

(c) The county did not comply with the notification requirements of Section 59-2-919.1.

(d) A factual error is discovered in the county records pertaining to the subject property.

(e) The property owner was unable to file an appeal within the time period prescribed by Section 59-2-1004(2)(a) because of extraordinary and unanticipated circumstances that occurred during the period prescribed by Section 59-2-1004(2)(a), and no co-owner of the property was capable of filing an appeal.

[(3)](14) Appeals accepted under Subsection [(2)](13)(d) shall be limited to correction of the factual error and any resulting changes to the property's valuation.

[(4)](15) The provisions of Subsection [(2)](13) apply only to appeals filed for a tax year for which the treasurer has not made a final annual settlement under Section 59-2-1365.

[(5)](16) The provisions of this rule apply only to appeals to the county board of equalization. For information regarding appeals of county board of equalization decisions to the Commission, please see Section 59-2-1006 and R861-1A-9.

 

KEY: taxation, personal property, property tax, appraisals

Date of Enactment or Last Substantive Amendment: [October 27, 2011]2012

Notice of Continuation: January 3, 2012

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; 59-2-514; 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; 59-2-1308.5; 59-2-1317; 59-2-1328; 59-2-1330; 59-2-1347; 59-2-1351; 59-2-1365