Utah Code 59-2-1802.5. Nondiscretionary tax deferral for elderly property owners

59-2-1802.5. Nondiscretionary tax deferral for elderly property owners.

(1)

An eligible owner may apply for a deferral under this section if:

Terms Used In Utah Code 59-2-1802.5

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
Eligible owner: means an owner of an attached or a detached single-family residence:

(a)

(i)	who is 75 years old or older on or before December 31 of the year in which the individual applies for a deferral under this part;

(ii)	whose household income does not exceed 200% of the maximum household income certified to a homeowner's credit described in Section 59-2-1208; and

(iii)

whose household liquid resources do not exceed 20 times the amount of property taxes levied on the owner's residence for the preceding calendar year; or

(b)

that is a trust described in Section 59-2-1805 if the grantor of the trust is an individual described in Subsection (3)(a). See Utah Code 59-2-1801

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

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
(a)	the eligible owner uses the single-family residence as the eligible owner’s primary residence as of January 1 of the year for which the eligible owner applies for the deferral;

(b)

with respect to the single-family residence, there are no:

(i)	delinquent property taxes;

(ii)	delinquent tax notice charges; or

(iii)

outstanding penalties, interest, or administrative costs related to a delinquent property tax or a delinquent tax notice charge;

(c)

(i)

the value of the single-family residence for which the eligible owner applies for the deferral is no greater than the median property value of:

(A)	attached single-family residences within the county, if the single-family residence is an attached single-family residence; or

(B)	detached single-family residences within the county, if the single-family residence is a detached single-family residence; or

(ii)	the eligible owner has owned the single-family residence for a continuous 20-year period as of January 1 of the year for which the eligible owner applies for the deferral; and

(d)	the holder of each mortgage or trust deed outstanding on the single-family residence gives written approval of the deferral.

(2)

If the conditions in Subsection (1) are satisfied and the applicant complies with the other applicable provisions of this part:

(a)	a county shall defer the property tax on an attached single-family residence or a detached single-family residence for an application of deferral made on or after January 1, 2024; and

(b)	a county may defer the property tax on an attached single-family residence or a detached single-family residence for an application of deferral made before January 1, 2024.

(3)	The values described in Subsection (1)(c) are based on the county assessment roll for the county in which the single-family residence is located.

(4)	For purposes of Subsection (1)(c)(ii), ownership is considered continuous regardless of whether the single-family residence is transferred between an eligible owner who is an individual and an eligible owner that is a trust.

(5)

(a)	Upon application from a county in a form prescribed by the commission, the commission shall reimburse the county for the amount of any tax that the county defers in accordance with this section.

(b)

The commission may not reimburse a county:

(i)	before the county approves the deferral; or

(ii)	for a tax assessed after December 31, 2026.

(c)

A county that receives money in accordance with this Subsection (5) shall:

(i)	distribute the money to the taxing entities in the same proportion the county would have distributed the revenue from the deferred tax; and

(ii)	repay the money no later than 30 days after the day on which the deferral lien is satisfied.

(d)	The commission shall deposit money received under Subsection (5)(c)(ii) into the General Fund.

Enacted by Chapter 354, 2023 General Session

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