Utah Department of Administrative Services Division of Administrative Rules

Tax Commission, Property Tax

Section R884-24P-57

Judgment Levies Pursuant to Utah Code Ann. Sections 59-2-918.5, 59-2-924, 59-2-1328, and 59-2-1330

Notice of Proposed Rule

(Amendment)

DAR File No.: 35152
Filed: 08/11/2011 03:04:07 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-2-1308.5 of S.B. 157 (2011 General Session) 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 formula under Section 59-2-924 for each taxing entity 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 59-2-918.5
• Section 59-2-1328
• Section 59-2-1330
• Section 59-2-924

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:

This amendment will create no fiscal impact because it matches statutory requirements.

Michael Cragun, Commissioner

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

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:

10/03/2011

This rule may become effective on:

10/10/2011

Authorized by:

Michael Cragun, Tax Commissioner

R884. Tax Commission, Property Tax.

R884-24P. Property Tax.

R884-24P-57. Judgment Levies Pursuant to Utah Code Ann. Sections 59-2-918.5, 59-2-924, 59-2-1328, and 59-2-1330.

[A.](1) Definitions.

[1.](a) "Issued" means the date on which the judgment is signed.

[2.](b) "[One percent]2.5% of the total ad valorem property taxes collected by the taxing entity in the previous fiscal year" includes any revenues collected by a judgment levy imposed in the prior year.

[B.](2) A taxing entity's share of a judgment or order shall include the taxing entity's share of any interest that must be paid with the judgment or order.

[C.](3) The judgment levy public hearing required by Section 59- 2-918.5 shall be held as follows:

[1.](a) For taxing entities operating under a July 1 through June 30 fiscal year, the public hearing shall be held at least 10 days after the Notice of Property Valuation and Tax Changes is mailed.

[2.](b) For taxing entities operating under a January 1 through December 31 fiscal year:

[a)](i) for judgments issued from the prior June 1 through December 15, the public hearing shall be held at the same time as the hearing at which the annual budget is adopted;

[b)](ii) for judgments issued from the prior December 16 through May 31, the public hearing shall be held at least 10 days after the Notice of Property Valuation and Tax Changes is mailed.

[3.](c) If the taxing entity is required to hold a hearing under Section 59-2-919, the judgment levy hearing required by [C.1.]Subsections (3)(a) and [C.2.b)](3)(b)(ii) shall be held at the same time as the hearing required under Section 59-2-919.

[D.](4) If the Section 59-2-918.5 advertisement is combined with the Section [59-2-918 or] 59-2-919 advertisement, the combined advertisement shall aggregate the general tax increase and judgment levy information.

[E.](5) In the case of taxing entities operating under a January 1 through December 31 fiscal year, the advertisement for judgments issued from the previous December 16 through May 31 shall include any judgments issued from the previous June 1 through December 15 that the taxing entity advertised and budgeted for at its December budget hearing.

[F.](6) All taxing entities imposing a judgment levy shall file with the [Tax Commission]commission a signed statement certifying that all judgments for which the judgment levy is imposed have met the statutory requirements for imposition of a judgment levy.

[1.](a) The signed statement shall contain the following information for each judgment included in the judgment levy:

[a)](i) the name of the taxpayer awarded the judgment;

[b)](ii) the appeal number of the judgment; and

[c)](iii) the taxing entity's pro rata share of the judgment.

[2.](b) Along with the signed statement, the taxing entity must provide the [Tax Commission]commission the following:

[a)](i) a copy of all judgment levy newspaper advertisements required;

[b)](ii) the dates all required judgment levy advertisements were published in the newspaper;

[c)](iii) a copy of the final resolution imposing the judgment levy;

[d)](iv) a copy of the Notice of Property Valuation and Tax Changes, if required; and

[e)](v) any other information required by the [Tax Commission]commission.

[G.](7) The provisions of House Bill 268, Truth in Taxation - Judgment Levy (1999 General Session), do not apply to judgments issued prior to January 1, 1999.

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