Utah Code 59-2-1705. Rollback tax — Penalty — Computation of tax — Procedure — Lien — Interest — Notice — Collection — Distribution
Current as of: 2024 | Check for updates
|
Other versions
(1) Except as provided in this section or Section 59-2-1710, land that is withdrawn from this part is subject to a rollback tax imposed as provided in this section.
Terms Used In Utah Code 59-2-1705
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Land: includes :(18)(a) land;(18)(b) a tenement;(18)(c) a hereditament;(18)(d) a water right;(18)(e) a possessory right; and(18)(f) a claim. See Utah Code 68-3-12.5
- Lien: A claim against real or personal property in satisfaction of a debt.
- Property: means property that is subject to assessment and taxation according to its value. See Utah Code 59-2-102
- Rollback tax: means the tax imposed under Section 59-2-1705. See Utah Code 59-2-1702
- Withdrawn from this part: means that land that has been assessed under this part is no longer assessed under this part or eligible for assessment under this part for any reason including that:
(4)(a) an owner voluntarily requests that the land be withdrawn from this part;(4)(b) the land is no longer actively devoted to urban farming;(4)(c)(4)(c)(i) the land has a change in ownership; and(4)(c)(ii)(4)(c)(ii)(A) the new owner fails to apply for assessment under this part as required by Section 59-2-1707; or(4)(c)(ii)(B) an owner applies for assessment under this part, as required by Section 59-2-1707, but the land does not meet the requirements of this part to be assessed under this part;(4)(d)(4)(d)(i) the legal description of the land changes; and(4)(d)(ii)(4)(d)(ii)(A) an owner fails to apply for assessment under this part, as required by Section 59-2-1707; or(4)(d)(ii)(B) an owner applies for assessment under this part, as required by Section 59-2-1707, but the land does not meet the requirements of this part to be assessed under this part;(4)(e) the owner of the land fails to file an application as provided in Section 59-2-1707; or(4)(f) except as provided in Section 59-2-1703, the land fails to meet a requirement of Section 59-2-1703. See Utah Code 59-2-1702(2)(2)(a) An owner shall notify the county assessor that land is withdrawn from this part within 120 days after the day on which the land is withdrawn from this part.(2)(b) An owner who fails to notify the county assessor under Subsection (2)(a) that land is withdrawn from this part is subject to a penalty equal to the greater of:(2)(b)(i) $10; or(2)(b)(ii) 2% of the rollback tax due for the last year of the rollback period.(3)(3)(a) The county assessor shall determine the amount of the rollback tax by computing the difference for the rollback period described in Subsection (3)(b) between:(3)(a)(i) the tax paid while the land was assessed under this part; and(3)(a)(ii) the tax that would have been paid had the property not been assessed under this part.(3)(b) For purposes of this section, the rollback period is a time period that:(3)(b)(i) begins on the later of:(3)(b)(i)(A) except as provided in Subsection (3)(c), the date the land is first assessed under this part; or(3)(b)(i)(B) five years preceding the day on which the county assessor mails the notice required by Subsection (5); and(3)(b)(ii) ends the day on which the county assessor mails the notice required by Subsection (5).(3)(c) For land that was previously assessed under Part 5, Farmland Assessment Act, the date described in Subsection (3)(b)(i)(A) is the date the land was first assessed under Part 5, Farmland Assessment Act, unless the land was subject to a rollback tax imposed under Section 59-2-506.(4)(4)(a) The county treasurer shall:(4)(a)(i) collect the rollback tax; and(4)(a)(ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien on the property has been satisfied by:(4)(a)(ii)(A) preparing a document that certifies that the rollback tax lien on the property has been satisfied; and(4)(a)(ii)(B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder for recording.(4)(b) The county treasurer shall pay the rollback tax collected under this section as follows:(4)(b)(i) 20% to the county for use for land and working agricultural land as those terms are defined in Section 4-46-102; and(4)(b)(ii) 80% to the various taxing entities pro rata in accordance with the property tax levies for the current year.(5)(5)(a) The county assessor shall mail to an owner of the land that is subject to a rollback tax a notice that:(5)(a)(i) the land is withdrawn from this part;(5)(a)(ii) the land is subject to a rollback tax under this section; and(5)(a)(iii) the rollback tax is delinquent if the owner of the land does not pay the tax within 30 days after the day on which the county assessor mails the notice described in this Subsection (5)(a).(5)(b)(5)(b)(i) The rollback tax is due and payable on the day the county assessor mails the notice required by Subsection (5)(a).(5)(b)(ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that is withdrawn from this part does not pay the rollback tax within 30 days after the day on which the county assessor mails the notice required by Subsection (5)(a).(6)(6)(a) Subject to Subsection (6)(b), the rollback tax and interest imposed under Subsection (7) are a lien on the land assessed under this part.(6)(b) The lien described in Subsection (6)(a) shall:(6)(b)(i) arise upon the imposition of the rollback tax under this section;(6)(b)(ii) end on the day on which the rollback tax and interest imposed under Subsection (7) are paid in full; and(6)(b)(iii) relate back to the first day of the rollback period described in Subsection (3)(b).(7)(7)(a) A delinquent rollback tax under this section shall accrue interest:(7)(a)(i) from the date of delinquency until paid; and(7)(a)(ii) at the interest rate established under Section 59-2-1331 and in effect on January 1 of the year in which the delinquency occurs.(7)(b) The county treasurer shall include in the notice required by Section 59-2-1317 a rollback tax that is delinquent on September 1 of any year and interest calculated on that delinquent amount through November 30 of the year in which the county treasurer provides the notice under Section 59-2-1317.(8)(8)(a) Land that becomes ineligible for assessment under this part only as a result of an amendment to this part is not subject to the rollback tax if the owner of the land notifies the county assessor, in accordance with Subsection (2), that the land is withdrawn from this part.(8)(b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of an event other than an amendment to this part, whether voluntary or involuntary, is subject to the rollback tax.(9) Except as provided in Section 59-2-1710, land that becomes exempt from taxation under Utah Constitution, Article XIII, § 3, is not subject to the rollback tax if the land meets the requirements of Section 59-2-1703 to be assessed under this part.