A. Authority And Purpose: The Utah constitution, article XIII, section 3, and Utah Code Annotated sections 59-2-102(31) and 59-2-103(2) provides that a residential exemption from property tax of forty five percent (45%) is available for "primary residences", and the Utah legislature enacted Utah Code Annotated section 59-2-103.5 establishing procedures to obtain an exemption for residential property and authorizing the county legislative body to adopt an ordinance for the allowance of a residential exemption for residential property.
B. Procedure:
1. All owners of residential property, as defined in Utah Code Annotated section 59-2-102(31), shall submit an application, on a form supplied by the County, to the County Board of Equalization, in care of the County Assessor, for exemption from Property Taxes for residential property used as a primary residence no later than April 30 of the current tax year. The application shall include the following information:
a. The owner of record of the property;
b. Property parcel number;
c. Location of the property (address);
d. Name of the applicant;
e. Basis of the applicant's knowledge of the use of the property;
f. Description of the use of the property;
g. Evidence of domicile of the inhabitants of the property; and
h. Signatures of all owners of the property and a certification that the property is residential property.
2. In the event that an application is not filed on or before April 30 of the calendar year for which the applicant(s) is seeking the exemption, an exemption may be granted by the Board of Equalization on an individual appeal basis so long as the application is submitted by September 15 of the current tax year, or forty five (45) days after the "notice of property valuation and tax" (commonly referred to as "disclosure notice") is sent, whichever is later. The application may be submitted or before November 30 of the calendar year for which the applicant(s) is seeking the exemption so long as the applicant also pays a fifty dollar ($50.00) late fee.
3. Except for those properties receiving a partial residential exemption, which are required to file an application each year, the County Board of Equalization may require an owner of the residential property to file the application described in subsection B1 of this section only if:
a. That residential property was ineligible for the primary residential tax exemption during the calendar year immediately preceding the calendar year for which the owner is seeking to claim the exception; or
b. The ownership interest in the property changes; or
c. The legal description changes; or
d. Mailing address of owner changes; or
e. The County Board of Equalization determines that there is reason to believe that the property no longer qualifies for the residential exemption in accordance with Utah Code Annotated section 59-2-103.
4. The County Board of Equalization or County Assessor may request or collect information sufficient to verify the primary residence status of the property to determine if the property is entitled to the residential exemption, pursuant to the criteria set forth in the rules promulgated by the State Tax Commission.
5. If an applicant requests a property be designated as a primary residence, the residential exemption shall not be granted without clear and convincing evidence that the property serves as the primary residence. The burden of proof shall remain at all times with the applicant.
6. After review of the applicant's application, the County Assessor shall make a preliminary determination of whether the requirements for a residential exemption or part-year residential exemption, outlined in Utah Code Annotated section 59-2-103.5(1), have been met, and whether the factors or objective evidence determinative of domicile, which are defined and outlined in subsection C of this section, are sufficient to approve the applicant's request. The County Assessor shall then make a recommendation to the Board of Equalization for approval or denial of the applicant's request. The Board of Equalization shall allow an owner a residential exemption for the residential property described in the application, upon making a determination that the requirements outlined in Utah Code section 59-2-103.5(1) have been met, and that the factors or objective evidence supplied by the applicant are sufficient to make a determination of domicile. The County Commissioner assigned over the Board of Equalization may act as the Board of Equalization to approve applications under this section so long as the County Assessor is recommending approval of the application. In the event that the County Assessor is recommending that an application be denied it must be heard by the full Board of Equalization.
7. If there is real property in the county that requires an application to be filed in order to receive the residential property exemption, other than property that qualifies only for a part-year exemption, and the owner of the property has not filed an application, the County Assessor may submit an application to the County Commissioner assigned over the Board of Equalization for approval if there is readily available and objectively verifiable information in the possession of the County Assessor to determine that the property qualifies for the exemption under the requirements of this Section. The actions of the County Assessor under this Section are discretionary. Nothing in this section shall be construed to require the County Assessor to take action regarding the exemption status of real property that does not have a timely application submitted. If the County Assessor does not take action under this section, there is no relief for an applicant that fails to timely submit an application. The County Assessor may only submit an application under this subsection for an exemption for the current tax year and not for any previous tax year.
C. Criteria:
1. A "primary residence" means the location where domicile has been established. "Part-year residential property" means property that is not a primary residence on January 1 of a calendar year but becomes a primary residence after January 1 of the calendar year. "Domicile" means the place where an individual has a true, fixed, permanent home and principal establishment, and to which place the person has (whenever the person is absent) the intention of returning. It is the place in which a person has voluntarily fixed the habitation of the person and the person's family, not for a mere special or temporary purpose, but with the present intention of making a permanent home. After domicile has been established, two (2) things are necessary to create a new domicile: first, an abandonment of the old domicile; and second, the intention and establishment of a new domicile. The mere intention to abandon a domicile once established is not of itself sufficient to create a new domicile; for before a person can be said to have changed a person's domicile, a new domicile must be shown. The assessor and the Board of Equalization may refer to the Administrative Rules of the State Tax Commission for guidance in reviewing the factors and evidence determinative of domicile.
2. To qualify for the residential exemption, a property need not be owner occupied. Apartments and other rental housing used as a primary residence of the occupants qualify for the residential exemption upon accepted application in accordance with subsection B of this section. A primary residence does not include property used for transient residential use, or condominiums used in rental pools. The residential exemption is limited to up to one acre of land per residential dwelling unit on a single property description.
3. A partial exemption may be applied against the Property Taxes of mixed commercial and residential property but it is presumed that the entire property is commercial. This presumption may be rebutted by the filing of the application in subsection B1 of this section every year, which includes evidence of domicile of each qualifying resident. The County Assessor may require additional information as necessary to make a determination of the percentage of the property qualifying for the residential exemption.
4. A partial exemption may be applied against the Property Taxes of qualifying nursing homes. In addition to the information required in subsection B1 of this section, the application which must be filed every year, shall include the number of residents living at the facility and the number that have established their primary residence at the facility; the total square footage of the facility and the total nonresidential square footage. The County Assessor may require additional information as necessary in order to determine the percentage of eligibility of the property for the exemption.
5. To qualify for the residential exemption as a part-year residential property: a) the property shall be used as a primary residence for one hundred eighty three (183) or more consecutive calendar days during the calendar year for which the owner seeks to obtain the residential exemption, and b) the owner or a member of the owner's household may not claim a residential exemption for any property for the calendar year for which the owner seeks to obtain the residential exemption other than the part-year residential property, or as allowed under Utah Code section 59-2-103.
D. Grandfather Provision: As of the effective date hereof, owner occupied residential property, apartments and other rental property being used as the primary residence of the occupants, and where the property is currently listed by the County Assessor as having a residential exemption, shall not be required to file an application to continue its status. Owner occupied residential property, apartments and other rental property being used as the primary residence of the occupants, where the property is subsequently listed by the County Assessor as having a residential exemption constructed after the effective date hereof, shall not be required to file the application required by subsection B1 of this section; however, should the use change from primary residence, the property shall no longer be considered exempt and an application and affidavit under the provision of this section shall apply.
E. Conflict: In the event of any conflict between this section and State or Federal law, the provisions of the latter shall be controlling.
F. Incorporation Provision: This section shall incorporate the provisions of the Administrative Rules promulgated by the State Tax Commission, and the criteria for determining primary residence set forth in Utah Code Annotated sections 59-2-102 and 59-2-103, as amended, and Property Tax standard 2.13, primary residential exemption. (Ord. 2002-3, 12-30-2002; amd. 2011 Code; Ord. 2012-8, 8-13-2012; Ord. O-2018-27, 11-19-2018; Ord. 2021-4, 1-12-2021)