| (1) |
Terms Used In Utah Code 59-2-1802- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Deferral: means a postponement of a tax due date granted in accordance with Section 59-2-1802 or 59-2-1802. See Utah Code 59-2-1801
- Grantor: The person who establishes a trust and places property into it.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Property: means property that is subject to assessment and taxation according to its value. See Utah Code 59-2-102
- Relative: means a spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or a spouse of any of these individuals. See Utah Code 59-2-1801
- Residence: means real property where an individual resides, including:
| (a) | a mobile home, as defined in Section 41-1a-102; or |
| (b) | a manufactured home, as defined in Section 41-1a-102. See Utah Code 59-2-1801- Residential property: includes :
| (i) | except as provided in Subsection (34)(b)(ii), includes household furnishings, furniture, and equipment if the household furnishings, furniture, and equipment are:| (A) | used exclusively within a dwelling unit that is the primary residence of a tenant; and |
| (B) | owned by the owner of the dwelling unit that is the primary residence of a tenant; and |
|
| (ii) | if the county assessor determines that the property will be used for residential purposes as a primary residence:| (A) | property under construction; or |
| (B) | unoccupied property. See Utah Code 59-2-102 |
| (a) |
In accordance with this part and after receiving an application and giving notice to the taxpayer, a county may grant a deferral of a tax on residential property. |
| (b) |
In determining whether to grant an application for a deferral under this section, a county shall consider an asset transferred to a relative by an applicant for deferral, if the transfer took place during the three years before the day on which the applicant applied for deferral. |
|
| (2) |
A county may grant a deferral described in Subsection (1) at any time:
| (a) |
after the holder of each mortgage or trust deed outstanding on the property gives written approval of the application; and |
| (b) |
if the applicant is not the owner of income-producing assets that could be liquidated to pay the tax. |
|
| (3) |
| (a) |
Taxes deferred under this part accumulate with interest and applicable recording fees as a lien against the residential property. |
| (b) |
A lien described in this Subsection (3) has the same legal status as a lien described in Section 59-2-1325. |
| (c) |
To release the lien described in this Subsection (3), an owner shall pay the total amount subject to the lien:
| (i) |
upon the owner selling or otherwise disposing of the residential property; or |
| (ii) |
when the residential property is no longer the owner’s primary residence. |
|
| (d) |
| (i) |
Notwithstanding Subsection (3)(c), an owner that receives a deferral does not have to pay the deferred taxes and applicable recording fees when the residential property transfers:
| (A) |
to the owner’s surviving spouse as a result of the owner’s death; or |
| (B) |
between the owner and a trust described in Section 59-2-1805 for which the owner is the grantor. |
|
| (ii) |
After the residential property transfers to the owner’s surviving spouse, the deferred taxes and applicable recording fees are due:
| (A) |
upon the surviving spouse selling or otherwise disposing of the residential property; or |
| (B) |
when the residential property is no longer the surviving spouse’s primary residence. |
|
|
| (e) |
When the deferral period ends:
| (i) |
the lien becomes due as a property tax subject to the collection procedures described in Section 59-2-1331; and |
| (ii) |
the date of levy is the date that the deferral period ends. |
|
|
| (4) |
| (a) |
If a county grants an owner more than one deferral for the same single-family residence, the county is not required to submit for recording more than one lien. |
| (b) |
Each subsequent deferral relates back to the date of the initial lien filing. |
|
| (5) |
| (a) |
For each residential property for which the county grants a deferral, the treasurer shall maintain a record that is an itemized account of the total amount subject to the lien for deferred property taxes. |
| (b) |
The record described in this Subsection (5) is the official record of the amount of the lien. |
|
| (6) |
Taxes deferred under this part bear interest at a rate equal to 50% of the rate described in Subsections 59-2-1331(2)(c) and (d). |
Amended by Chapter 354, 2023 General Session
|
|
