S.B. 236 Property Tax Exemption Process Amendments: transcript

Correct. On the bill.

You. Yeah, I'm speaking for Senator Grover. I'm the floor sponsor for Senate Bill 2 36. This comes from Salt Lake County and it, uh, helps, uh, deal with property tax exemptions. And so that's why we're here. And it's just trying to create a little bit of a uniform standard so that both the taxpayers and the different counties or the administrators, uh, are all lined up on the same guidelines across the state. There's some uniformity settings. So if somebody is applying for a property tax exemption, they have until March 1st of each year to apply for that exemption. And then, uh, on the county side or whoever's on the municipal city side that they have, uh, when if, when they do respond, they need to also apply, uh, appeal rights or any other follow-up recommendations that they need that you think this would be in there. But there's some variability across the state on how it's actually administered. So we're trying to just apply some unifor uniformity on and clarity on both sides. And I'd like to turn the time over to Richard Yi to add any clarifying information that he thinks will help.

Uh, Richard Yasi, chief Deputy Auditor Salt Lake County. Um, one thing this bill does that's gonna be really helpful is it doesn't require the board of equalization to hold a hearing. Sometimes we're, um, as applicants apply, we just have a few clarifying questions through our attorney's office. Um, and the board of equalization would still grant the exemption, but we, they wouldn't have to come in when really they probably just needed an extra documentation and everything else Representative Shallenberger mentioned. So that will conclude our presentation. We'd welcome any questions or thoughts or comments.

Thank you Mr. Chair. I move that we favorably recommend Senate a bill 2 36, second first substitute.

Yes. I actually, I don't know if anybody knows this or not here in this committee, but I worked in county government really? And, and I've seen actually this very process and I think it's really critical that we do bring some standardization to those dates and make sure we have that happen. Thank

I'll waive Thank you. Any debate

Okay. Okay. Thank you. Thank you. Committee. Uh, I have here with me, uh, my neighbor who gets me in a lot of trouble with some of these bills that I barely understand, but that's what we do, right? We represent our constituents. So I have here, uh, Richard J and he's gonna explain a little bit of how this bill came to be and what we're trying to do.

Is this on? Oh, yep. There's just no light. Okay. Um, yeah. The court, um, this is a bill about setting reasonable and transparent expectations for property tax exemption. Under current law, there's no clear statutory deadline for when an exemption application must be filed, and no firm deadline for when a county board must issue a decision. That lack of structure creates uncertainty for the nonprofits who don't know when or how their application will be resolved. And for counties that are trying to administer exemptions consistently and responsibly, Senate Bill 2 36 also addresses, or addresses that gap by establishing clear deadlines on both sides of the, of the process. It requires nonprofit applicants to submit their exemption request by a defined date, and that the county boards of equalization to act within a set timeframe and provide a written decision. Senate Bill 2 36 also, uh, reduces the burden on nonprofits who are applying for exemption. Often, a county simply need some additional information to be submitted by the nonprofit rather than the need for a nonprofit to show up in attend a hearing. Senate Bill 2 36 clarifies that a hearing is not necessary if all that you know is really needed is additional information reduces the time and resources involved for both the nonprofits and the county board. So, uh, Mr. Chair, I wanna thank Senator Grover, my neighbor, for his help on this bill, a very important one. And that concludes our presentation. Okay. Thank you.

Yes. That substitute, uh, one, I assume? Yeah. Yep. Yeah.

Motion that, uh, we delete title and body of Senate bill 2 36 and replace it with first substitute Senate Bill 2 36.

differences are between the two or? Sure. Yeah, there, the original bill was good, and we worked with the tax commission and a couple other entities to make sure it got exactly the dates and the specificities that they needed in the bill. So that first substitute represents that work

Thank you, Mr. Chair. Uh, motion that we favorably recommend for substitute Senate bill 2 36 of the full body of the Senate.

Appreciate the motion. I'll waive.

Addresses a very, very narrow but important gap in the current property tax law today. There's no clear deadline for when a property tax exemption application must be filed. Currently a hearing must be held for every nonprofit application, even if all that is needed is simply some additional information from the nonprofit applicant. So this bill establishes a clear deadline to apply for an exemption. It requires the county to grant or deny the exemption within a set timeframe and provides a clear appeal path to the state tax commission. That's the bill.

I move that first substitute Senate bill 2 3 6 be passed a third reading calendar.

Senator Vickers Baldy Aye. Lein Aye. Brammer Aye. Bus. Aye. Colmore Aye. Escamilla Fillmore Aye. Grover Aye. Harper Aye. Kins Aye. Nips. Ipson Johnson Juab McKay A Mikel Milner Musselman Owens Aye. Pitcher plum. Absolutely. Rebe Sandal Stevenson Stratton Aye. Bickers Weiler Aye. Wilson. Aye. Winterton President Adams Aye. First substitute Senate first substitute Senate bill to 2 36.

Yes. Thank you again. This bill addresses a very narrow but important, important gap in the current property tax law. Uh, today there's no clear deadline for when a property tax exemption application must be filed. Something I'm sure you've all been worried about currently hearing must be held for every nonprofit application, even if all that is needed is simply some additional information from the nonprofit applicant. So this bill establishes a clear deadline to apply for the exemption, requires a county to grant or deny the exemption within a set timeframe and provides a clear appeal path if needed to the state tax commission. That's the bill.

Yes, I'd move that first substitute Senate bill 2 36. Be read for third and final time.

Spery Lewin Aye. Brammer Aye. Bus? Aye. Colmore Escamilla Aye. Fillmore Aye. Grover Aye. Harper Aye. Kins Aye. Ipson Aye. Johnson Aye. Juab Aye. McKay? Aye. Mikel Aye. Milner Musselman Owens pitcher Aye. Plum Rebe Aye. Mu Aye. Sandal Stevenson Stratton Bickers Weiler Wilson Winterton, president Adams

Thank you Mr. Speaker. This comes outta the counties. It's trying to help them create a, a transparent process for property owners and the counties alike. Where, uh, if the property owner wants to apply for a property tax exemption, there's a required date in March each year where they can apply. And then on the flip side, if the county does not issue it, they have to wr uh, provide a written response as well as an appeals process, just providing, providing transparency, uh, across the counties with different property owners so they know what to expect on each side of the, the transaction. That's it would be welcome. Uh, would welcome any questions or comments. Thank

I'll waive. Thank you. Summation has been waived.