Free Pub 27, Taxation of Utah Primary Residential Property - Utah

tax.utah.gov

Publication 27
Revised 1/09

Taxation of Primary Residential Property

Utah State Tax Commission Property Tax Division 210 North 1950 West Salt Lake City, Utah 84134 (801) 297-3600 1-800-662-4335 www.tax.utah.gov

If you need an accommodation under the Americans with Disabilities Act, contact the Tax Commission at (801) 297-3811, or TDD (801) 297-2020. Please allow three working days for a response.

General Information
Property taxes are one of the primary sources of funds for local governments, counties, school districts, cities, towns and special agencies such as water and sewer districts. The following are examples of local services funded by your property taxes: · fire and police protection · libraries · jails · schools · road repairs The state and federal government do not receive any revenue from your property tax. Property taxes are based upon the market value of your property. Market value reflects the value of your property as of January 1 of each tax year. The county assessor determines the market value and the taxable value of your property.

Taxable value is the value used to calculate taxes due on your property. A primary residence -- both buildings and land (maximum one acre) -- receives a 45 percent reduction from market value. For all other classes of real property, the taxable value is the same as the market value.

Example: Primary residence market value Residential exemption 45% Taxable value ($100,000 x .55 = $55,000)

$100,000 - 45,000 $ 55,000

Cyclical Reappraisal
Utah law requires that county assessors annually update property values. Assessors are also required to complete a detailed review of property characteristics for each property at least once every five years. The Tax Commission may take corrective action if county assessment levels do not meet established standards.

How is Residential Property Taxed?
The primary residence is any dwelling used as a full-time residence and can include up to one acre of land. Rental homes and apartments also qualify as primary residences. However, vacation homes, cabins, time-shares or other types of transitory housing do not qualify as primary residences. Property taxes are not charged on home furnishings or furniture except where they are part of a furnished rental property.

Tax Rates
Tax rates are set by the various entities with the legal power to levy taxes. These governmental entities include counties, school districts, cities and towns, and special taxing districts such as water, sewer and cemetery districts. The "Notice of Valuation and Tax Changes" and your "Tax Notice" indicate the amount you pay to each taxing entity. To calculate your taxes, multiply your taxable value by the tax rate.

Market vs Taxable Value
Market value is the price your property would sell for if it were offered for a reasonable amount of time. This assumes that both the buyer and seller are unrelated, well-informed and under no pressure to buy or sell the property.

Example: Taxable value x Tax rate = Tax due $55,000 x .0125 = $687.50

Tax Relief
File applications for tax relief with the county by September 1 of each year.

Disabled VeteranÊs Exemption
Disabled veterans and their surviving spouses and orphans are eligible for this exemption.

Your appeal must address the issue of market value, not the tax rate. Evidence supporting your estimation of the market value must be included in the appeal. If you do not agree with the county's decision, you may appeal to the State Tax Commission. Appeals to the state Tax Commission must be filed with your county auditor, within 30 days after the final action of the county board of equalization.

Blind Exemption
The exemption is available to the visually impaired and their surviving spouses and orphans. Utah law defines the qualifying vision impairments. Note: Applications for tax relief, excluding the disabled veteran's exemption, must be filed on an annual basis.

Delinquent Taxes
Taxes become delinquent if they are not paid by November 30 of each year. A penalty of 2 percent or $10, whichever is greater, is assessed if the payment is late. Unless taxes and penalty are paid before January 16 of the following year, the amount of taxes and penalty accrue interest from January 1 following the delinquency date.

Indigent Abatement/Deferral
The county is allowed to abate one-half the tax due, up to a given amount in taxes or one-half the tax due, whichever is less. The abatement applies only to the applicant's residence. To qualify, household income must be less than an amount specified by the legislature, and applicants must be 65 years of age or older. Applicants under 65 may qualify if they are disabled or can show circumstances of extreme hardship.

For More Information
Contact your county assessor if you have questions regarding: · property value · residential exemptions Contact your county auditor if you have questions regarding: · tax relief programs and income limitations · tax rates · valuation appeals Contact your county recorder if you have questions regarding: · ownership · mailing address · legal descriptions Contact your county treasurer if you have questions regarding: · delinquent taxes · tax payments

Circuit Breaker
The circuit breaker tax credit applies to both homeowners and renters. To qualify, you must be at least 66 years of age or a widow or widower and your annual income cannot exceed an amount specified by the legislature.

Appeals
A "Notice of Property Valuation and Tax Changes" is mailed to every property owner each summer. It shows any change in market value and proposed changes in property taxes. If you disagree with the market value of your property, you have 45 days to file an appeal with the county board of equalization. The board is comprised of the county legislative body (commissioners or council). Appeal instructions are provided on your "Notice of Property Valuation and Tax Changes."

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