HB 445

Enrolled Copy  H.B. 445
1County Government Land Purchasing
                                      2026 GENERAL SESSION
                                            STATE OF UTAH
                                   Chief Sponsor: Mark A. Strong
                                    Senate Sponsor: Daniel McCay
2
3  LONG TITLE
4  General Description:
5      This bill deals with a county's acquisition of real property located in another county.
6  Highlighted Provisions:
7      This bill:
8      ▸ provides that a county may not acquire real property that is located in another county
9  through exchange, purchase, or lease unless:
10●   the county where the real property is located provides express permission; and
11●   the county's acquisition is a joint acquisition with another political subdivision as part
12  of an interlocal agreement;
13      ▸ provides that real property owned by a county that is located outside the geographical
14  boundaries of the county is not exempt from taxation under Title 59, Chapter 2, Property
15  Tax Act, unless exceptions apply; and
16      ▸ makes technical and conforming changes.
17  Money Appropriated in this Bill:
18      None
19  Other Special Clauses:
20      None
21  Utah Code Sections Affected:
22  AMENDS:
23      17-60-202, as renumbered and amended by Laws of Utah 2025, First Special Session,
24      Chapter 13
25      17-78-103, as renumbered and amended by Laws of Utah 2025, First Special Session,
26      Chapter 14
27      17-78-201, as renumbered and amended by Laws of Utah 2025, First Special Session,
28      Chapter 14
H.B. 445  Enrolled Copy
2917C-1-202, as last amended by Laws of Utah 2025, First Special Session, Chapter 16
3017C-1-207, as last amended by Laws of Utah 2025, First Special Session, Chapter 16
3159-2-1101, as last amended by Laws of Utah 2025, First Special Session, Chapter 15
32
33   Be it enacted by the Legislature of the state of Utah:
34Section 1. Section 17-60-202 is amended to read:
3517-60-202 . Counties authorized to levy and collect taxes, sue and be sued, and
36   acquire property.
37   (1)(a) Except as provided in Subsection (1)(b), a county may:
38(i) as prescribed by statute:
39(A) levy a tax;
40(B) perform an assessment;
41(C) collect a tax;
42(D) borrow money; or
43(E) levy and collect a special assessment for a conferred benefit; or
44(ii) provide a service, exercise a power, or perform a function that is reasonably
45related to the safety, health, morals, and welfare of county inhabitants.
46(b) A county or a governmental instrumentality of a county may not perform an action
47described in Subsection (1)(a)(i) or provide a service, exercise a power, or perform a
48function described in Subsection (1)(a)(ii) in another county or a municipality within
49the other county without first entering into an agreement under Title 11, Chapter 13,
50Interlocal Cooperation Act, or other contract with the other county to perform the
51action, provide the service, exercise the power, or perform the function.
52   (2) A county may:
53(a) sue and be sued;
54(b)(i) subject to Subsection (4), acquire real property by tax sale, purchase, lease,
55contract, or gift; and
56(ii) [ ]hold the real property acquired under Subsection (2)(b)(i) as necessary and
57proper for county purposes;
58(c)(i) subject to [Subsections (3)(a) and (b)] Subsection (3), acquire real property by
59condemnation, as provided in Title 78B, Chapter 6, Part 5, Eminent Domain; and
60(ii) hold the real property acquired under Subsection (2)(c)(i) as necessary and proper
61for county purposes;
62(d) as may be necessary to the exercise of its powers, acquire personal property by
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63purchase, lease, contract, or gift, and hold such personal property; and
64      (e) manage and dispose of its property as the interests of its inhabitants may require.
65  (3)(a) For purposes of Subsection (2)(c), water rights that are not appurtenant to land do
66      not constitute real property that may be acquired by the county through
67      condemnation.
68      (b) Nothing in Subsection (2)(c) may be construed to authorize a county to acquire by
69condemnation the rights to water unless the land to which those water rights are
70appurtenant is acquired by condemnation.
71  (4) Except as provided in Subsection (6) and subject to Section 17-78-103, each county
72      intending to acquire real property for the purpose of expanding the county's
73      infrastructure or other facilities used for providing services that the county offers or
74      intends to offer shall provide written notice of the county's intent to acquire the property
75      if:
76      (a) the property is located:
77(i) outside the boundaries of the unincorporated area of the county; and
78(ii) in a county of the first or second class; and
79      (b) the intended use of the property is contrary to:
80(i) the anticipated use of the property under the general plan of the county in whose
81unincorporated area or the municipality in whose boundaries the property is
82located; or
83(ii) the property's current zoning designation.
84  (5)(a) Each notice under Subsection (4) shall:
85(i) indicate that the county intends to acquire real property;
86(ii) identify the real property; and
87(iii) be sent to:
88(A) each county in whose unincorporated area and each municipality in whose
89boundaries the property is located; and
90(B) each affected entity.
91      (b) A notice under Subsection (4) is a protected record as provided in Subsection
9263G-2-305(8).
93  (6) The notice requirement of Subsection (4) does not apply if the county previously
94      provided notice under Section 17-79-203 identifying the general location within the
95      municipality or unincorporated part of the county where the property to be acquired is
96      located.
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97   (7) If a county is not required to comply with the notice requirement of Subsection (4)
98because of application of Subsection (6), the county shall provide the notice specified in
99Subsection (4) as soon as practicable after the county's acquisition of the real property.
100Section 2. Section 17-78-103 is amended to read:
10117-78-103 . Acquisition, management, and disposal of property.
102   (1) [Subject to Subsection (4), a ] A county may purchase, receive, hold, sell, lease, convey,
103or otherwise acquire and dispose of any real or personal property or any interest in [such]
104real or personal property if the action:
105(a) is in the public interest; and
106(b) complies with:
107(i) this section; and
108(ii) [ ]other law.
109   (2) Any property interest acquired by the county shall be held in the name of the county
110unless specifically otherwise provided by law.
111   (3)(a) Except as provided in Subsection (3)(c), before a county may acquire real
112property that is located within the geographic boundaries of another county by
113exchange, purchase, or lease, the acquiring county shall obtain the express
114permission of the county where the real property is located.
115(b) Express permission, as described in Subsection (3)(a), requires, at minimum:
116(i) formal action of the legislative body; or
117(ii) an executed memorandum of understanding or other contractual agreement
118between the county that is acquiring real property and the county where the real
119property is located.
120(c) Subsection (3)(a) does not apply to a county's acquisition of a joint interest in real
121property that is located within the geographic boundaries of another county as part of
122a joint project, including public buildings, public infrastructure, or public initiatives,
123between two or more counties or other political subdivisions through an agreement
124governed by Title 11, Chapter 13, Interlocal Cooperation Act.
125   [(3)] (4) The county legislative body shall provide by ordinance, resolution, rule, or
126regulation for the manner in which property shall be acquired, managed, and disposed of.
127   [(4)] (5)(a) Before a county may dispose of a significant parcel of real property, the
128county shall:
129(i) provide reasonable notice of the proposed disposition at least 14 days before the
130opportunity for public comment under Subsection [(4)(a)(ii)] (5)(a)(ii); and
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131(ii) allow an opportunity for public comment on the proposed disposition.
132      (b) Each county shall, by ordinance, define what constitutes:
133(i) a significant parcel of real property for purposes of Subsection [(4)(a)] (5)(a); and
134(ii) reasonable notice for purposes of Subsection [(4)(a)(i)] (5)(a)(i).
135  [(5)] (6)(a) A county may dispose of a significant parcel of real property in exchange for
136      less than the present fair market value of the significant parcel of real property if the
137      adjusted present value of the significant parcel of real property is equal to or greater
138      than the present fair market value of the significant parcel of real property.
139      (b) Subsection [(5)(a)] (6)(a) does not affect a county's authority to dispose of a
140significant parcel of real property in a manner different from Subsection [(5)(a)] (6)(a)
141and in accordance with applicable law.
142  [(6)] (7) Before a county agrees to dispose of a significant parcel of real property, the county
143      may require the potential purchaser or lessee to provide evidence that:
144      (a) the potential purchaser's or lessee's offer is bona fide;
145      (b) the potential purchaser or lessee has the ability to pay the disposition price; or
146      (c) any future benefits to the county from the disposal of the significant parcel of real
147property are reasonably anticipated.
148  [(7)] (8) If a county receives an unsolicited offer to purchase or lease a significant parcel of
149      real property:
150      (a) the county is not required to consider the offer; and
151      (b) a person may not consider the offer in determining the present fair market value of
152the significant parcel of real property, unless considering the offer is warranted under
153generally accepted standards of professional appraisal practice.
154  [(8)] (9) A county may presume that the present fair market value of a significant parcel of
155      real property is equal to the average of two appraised values each of which is based upon
156      fair market value and calculated by a unique, independent appraiser who is licensed or
157      certified in accordance with Title 61, Chapter 2g, Real Estate Appraiser Licensing and
158      Certification Act.
159Section 3. Section 17-78-201 is amended to read:
16017-78-201 . Development of county resources.
161  (1) A county may provide for the development of the county's mineral, water, [
162      manpower] personnel, industrial, historical, cultural, and other resources.
163  (2) Nothing in this section modifies the requirements of Section 17-78-103.
164Section 4. Section 17C-1-202 is amended to read:
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16517C-1-202 . Agency powers.
166   (1) An agency may:
167(a) sue and be sued;
168(b) enter into contracts generally;
169(c) buy, obtain an option upon, acquire by gift, or otherwise acquire any interest in real
170or personal property;
171(d) hold, sell, convey, grant, gift, or otherwise dispose of any interest in real or personal
172property;
173(e) own, hold, maintain, utilize, manage, or operate real or personal property, which may
174include the use of agency funds or the collection of revenue;
175(f) enter into a lease agreement on real or personal property, either as lessee or lessor;
176(g) provide for project area development as provided in this title;
177(h) receive and use agency funds as provided in this title;
178(i) if disposing of or leasing land, retain controls or establish restrictions and covenants
179running with the land consistent with the project area plan;
180(j) accept financial or other assistance from any public or private source for the agency's
181activities, powers, and duties, and expend any funds the agency receives for any
182purpose described in this title;
183(k) borrow money or accept financial or other assistance from a public entity or any
184other source for any of the purposes of this title and comply with any conditions of
185any loan or assistance;
186(l) issue bonds to finance the undertaking of any project area development or for any of
187the agency's other purposes, including:
188(i) reimbursing an advance made by the agency or by a public entity to the agency;
189(ii) refunding bonds to pay or retire bonds previously issued by the agency; and
190(iii) refunding bonds to pay or retire bonds previously issued by the community that
191created the agency for expenses associated with project area development;
192(m) pay an impact fee, exaction, or other fee imposed by a community in connection
193with land development;
194(n) subject to Part 10, Agency Taxing Authority, levy a property tax; or
195(o) transact other business and exercise all other powers described in this title.
196   (2) The establishment of controls or restrictions and covenants under Subsection (1)(i) is a
197public purpose.
198   (3) An agency may acquire real property under Subsection (1)(c) that is outside a project
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199      area only if the board determines that the property will benefit a project area.
200  (4)(a) [An ] Except as provided in Subsection (4)(b), an agency is not subject to Section
201      10-8-2 or 17-78-103.
202      (b) An agency may not facilitate or assist a county in violating Subsection 17-78-103(3).
203  (5)(a) An agency may, subject to Subsection (5)(c), enter into a participation agreement
204      with a person to govern the development the person will undertake within a project
205      area.
206      (b) A participation agreement under Subsection (5)(a) shall include a description of:
207(i) the project area development that the person will undertake;
208(ii) the amount of project area funds the agency agrees to pay to the person to
209facilitate the development; and
210(iii) the terms and conditions under which the agency agrees to pay project area funds
211to the person.
212      (c)(i) A participation agreement under Subsection (5)(a) is subject to board approval
213by resolution of the board.
214(ii) A resolution under Subsection (5)(c)(i) shall include a finding by the board
215describing how the project area development described in the participation
216agreement will contribute to achieving the goals, policies, and purposes of the
217project area plan.
218      (d)(i) Beginning on May 7, 2025, any participation agreement under this Subsection
219(5) shall include a provision authorizing the agency, directly or through the county
220in which the agency operates, to use funding that would otherwise be provided to
221the participant to pay a participant's delinquent property tax or privilege tax or
222resolve a political subdivision lien against the participant, as described in
223Subsection 17C-1-409(6).
224(ii) An agency that has entered into a participation agreement before May 7, 2025,
225shall, as soon as reasonably practical, enter into an amendment to the participation
226agreement with a participant to include a provision authorizing the agency to use
227funding that would otherwise be provided to the participant to pay a participant's
228delinquent property tax or privilege tax or resolve a political subdivision lien
229against the participant, as described in Subsection 17C-1-409(6).
230Section 5. Section 17C-1-207 is amended to read:
23117C-1-207 . Public entities may assist with project area development -- Notice
232  requirements.
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233   (1) In order to assist and cooperate in the planning, undertaking, construction, or operation
234of project area development within an area in which the public entity is authorized to
235act, a public entity may:
236(a)(i) provide or cause to be furnished:
237(A) parks, playgrounds, or other recreational facilities;
238(B) community, educational, water, sewer, or drainage facilities; or
239(C) any other works which the public entity is otherwise empowered to undertake;
240(ii) provide, furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or
241replan streets, roads, roadways, alleys, sidewalks, or other places;
242(iii) in any part of the project area:
243(A)(I) plan or replan any property within the project area;
244(II) plat or replat any property within the project area;
245(III) vacate a plat;
246(IV) amend a plat; or
247(V) zone or rezone any property within the project area; and
248(B) make any legal exceptions from building regulations and ordinances;
249(iv) purchase or legally invest in any of the bonds of an agency and exercise all of the
250rights of any holder of the bonds;
251(v) notwithstanding any law to the contrary, enter into an agreement for a period of
252time with another public entity concerning action to be taken pursuant to any of
253the powers granted in this title;
254(vi) do anything necessary to aid or cooperate in the planning or implementation of
255the project area development;
256(vii) in connection with the project area plan, become obligated to the extent
257authorized and funds have been made available to make required improvements or
258construct required structures; and
259(viii) lend, grant, or contribute funds to an agency for project area development or
260proposed project area development, including assigning revenue or taxes in
261support of an agency bond or obligation; and
262(b) for less than fair market value or for no consideration, and subject to Subsection (3):
263(i) purchase or otherwise acquire property from an agency;
264(ii) lease property from an agency;
265(iii) sell, grant, convey, donate, or otherwise dispose of the public entity's property to
266an agency; or
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267(iv) lease the public entity's property to an agency.
268  (2)(a) [The ] Except as provided in Subsection (2)(b), the following are not subject to
269      Section 10-8-2, 17-60-203, or 17-78-103:
270[(a)] (i) project area development assistance that a public entity provides under this
271section; or
272[(b)] (ii) a transfer of funds or property from an agency to a public entity.
273      (b) An agency may not transfer property to a county if the transfer would result in the
274county violating Subsection 17-78-103(3).
275  (3) A public entity may provide assistance described in Subsection (1)(b) no sooner than 15
276      days after the day on which the public entity completes the requirements for publishing
277      notice of the assistance for the public entity's jurisdiction, as a class A notice under
278      Section 63G-30-102, for at least 15 days.
279Section 6. Section 59-2-1101 is amended to read:
28059-2-1101 . Definitions -- Exemption of certain property -- Proportional
281  payments for certain property -- Exception -- County legislative body authority to adopt
282  rules or ordinances.
283  (1) As used in this section:
284      (a) "Charitable purposes" means:
285(i) for property used as a nonprofit hospital or a nursing home, the standards outlined
286in Howell v. County Board of Cache County ex rel. IHC Hospitals, Inc., 881 P.2d
287880 (Utah 1994); and
288(ii) for property other than property described in Subsection (1)(a)(i), providing a gift
289to the community.
290      (b) "Compliance period" means a period equal to 15 taxable years beginning with the
291first taxable year for which the taxpayer claims a tax credit under Section 42, Internal
292Revenue Code, or Section 59-7-607 or 59-10-1010.
293      (c)(i) "Educational purposes" means purposes carried on by an educational
294organization that normally:
295(A) maintains a regular faculty and curriculum; and
296(B) has a regularly enrolled body of pupils and students.
297(ii) "Educational purposes" includes:
298(A) the physical or mental teaching, training, or conditioning of competitive
299athletes by a national governing body of sport recognized by the United States
300Olympic Committee that qualifies as being tax exempt under Section
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301501(c)(3), Internal Revenue Code; and
302(B) an activity in support of or incidental to the teaching, training, or conditioning
303described in this Subsection (1)(c)(ii).
304      (d) "Exclusive use exemption" means a property tax exemption under Subsection
305(3)(a)(iv), for property owned by a nonprofit entity used exclusively for one or more
306of the following purposes:
307(i) religious purposes;
308(ii) charitable purposes; or
309(iii) educational purposes.
310      (e)(i) "Farm machinery and equipment" means tractors, milking equipment and
311storage and cooling facilities, feed handling equipment, irrigation equipment,
312harvesters, choppers, grain drills and planters, tillage tools, scales, combines,
313spreaders, sprayers, haying equipment, including balers and cubers, and any other
314machinery or equipment used primarily for agricultural purposes.
315(ii) "Farm machinery and equipment" does not include vehicles required to be
316registered with the Motor Vehicle Division or vehicles or other equipment used
317for business purposes other than farming.
318      (f) "Gift to the community" means:
319(i) the lessening of a government burden; or
320(ii)(A) the provision of a significant service to others without immediate
321expectation of material reward;
322(B) the use of the property is supported to a material degree by donations and gifts
323including volunteer service;
324(C) the recipients of the charitable activities provided on the property are not
325required to pay for the assistance received, in whole or in part, except that if in
326part, to a material degree;
327(D) the beneficiaries of the charitable activities provided on the property are
328unrestricted or, if restricted, the restriction bears a reasonable relationship to
329the charitable objectives of the nonprofit entity that owns the property; and
330(E) any commercial activities provided on the property are subordinate or
331incidental to charitable activities provided on the property.
332      (g) "Government exemption" means a property tax exemption provided under
333Subsection (3)(a)(i), (ii), or (iii).
334      (h)(i) "Nonprofit entity" means an entity:
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335(A) that is organized on a nonprofit basis, that dedicates the entity's property to the
336entity's nonprofit purpose, and that makes no dividend or other form of
337financial benefit available to a private interest;
338(B) for which, upon dissolution, the entity's assets are distributable only for
339exempt purposes under state law or to the government for a public purpose; and
340(C) for which none of the net earnings or donations made to the entity inure to the
341benefit of private shareholders or other individuals, as the private inurement
342standard has been interpreted under Section 501(c)(3), Internal Revenue Code.
343(ii) "Nonprofit entity" includes an entity:
344(A) if the entity is treated as a disregarded entity for federal income tax purposes
345and wholly owned by, and controlled under the direction of, a nonprofit entity;
346and
347(B) for which none of the net earnings and profits of the entity inure to the benefit
348of any person other than a nonprofit entity.
349(iii) "Nonprofit entity" includes an entity that is not an entity described in Subsection
350(1)(h)(i) if the entity jointly owns a property that:
351(A) is used for the purpose of providing permanent supportive housing;
352(B) has an owner that is an entity described in Subsection (1)(h)(i) or that is a
353housing authority that operates the permanent supportive housing;
354(C) has an owner that receives public funding from a federal, state, or local
355government entity to provide support services and rental subsidies to the
356permanent supportive housing;
357(D) is intended to be transferred at or before the end of the compliance period to
358an entity described in Subsection (1)(h)(i) or a housing authority that will
359continue to operate the property as permanent supportive housing; and
360(E) has been certified by the Utah Housing Corporation as meeting the
361requirements described in Subsections (1)(h)(iii)(A) through (D).
362(iv) "Nonprofit entity" includes an entity that is not an entity described in Subsection
363(1)(h)(i) if:
364(A) the entity is a housing organization as defined in Subsection 35A-8-2401(1)(a);
365and
366(B) the entity is owned by an entity described in Subsection (1)(h)(i) or a housing
367authority.
368      (i) "Permanent supportive housing" means a housing facility that:
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369(i) provides supportive services;
370(ii) makes a 15-year commitment to provide rent subsidies to tenants of the housing
371facility when the housing facility is placed in service;
372(iii) receives an allocation of federal low-income housing tax credits in accordance
373with 26 U.S.C. Sec. 42; and
374(iv) leases each unit to a tenant:
375(A) who, immediately before leasing the housing, was homeless as defined in 24
376C.F.R. 583.5; and
377(B) whose rent is capped at no more than 30% of the tenant's household income.
378(j)(i) "Property of" means property that an entity listed in Subsection (3)(a)(ii) or (iii)
379has a legal right to possess.
380(ii) "Property of" includes a lease of real property if:
381(A) the property is wholly leased to a state or political subdivision entity listed in
382Subsection (3)(a)(ii) or (iii) under a triple net lease; and
383(B) the lease is in effect for the entire calendar year.
384(k) "Supportive service" means a service that is an eligible cost under 24 C.F.R. 578.53.
385(l) "Triple net lease" means a lease agreement under which the lessee is responsible for
386the real estate taxes, building insurance, and maintenance of the property separate
387from and in addition to the rental price.
388   (2)(a) Except as provided in Subsection (2)(b), an exemption under this part may be
389allowed only if the claimant is the owner of the property as of January 1 of the year
390the exemption is claimed.
391(b) A claimant shall collect and pay a proportional tax based upon the length of time that
392the property was not owned by the claimant if:
393(i) the claimant is a federal, state, or political subdivision entity described in
394Subsection (3)(a)(i), (ii), or (iii); or
395(ii) in accordance with Subsection (3)(a)(iv):
396(A) the claimant is a nonprofit entity; and
397(B) the property is used exclusively for religious, charitable, or educational
398purposes.
399   (3)(a) The following property is exempt from taxation:
400(i) property exempt under the laws of the United States;
401(ii) property of:
402(A) the state;
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403(B) school districts; and
404(C) public libraries;
405(iii) except as provided in Title 11, Chapter 13, Interlocal Cooperation Act, or in
406Subsection (6), property of:
407(A) counties;
408(B) cities;
409(C) towns;
410(D) special districts;
411(E) special service districts; and
412(F) all other political subdivisions of the state;
413(iv) except as provided in Subsection [(6) or (7)] (7) or (8), property owned by a
414nonprofit entity used exclusively for one or more of the following purposes:
415(A) religious purposes;
416(B) charitable purposes; or
417(C) educational purposes;
418(v) places of burial not held or used for private or corporate benefit;
419(vi) farm machinery and equipment;
420(vii) a high tunnel, as defined in Section 10-20-613;
421(viii) intangible property; and
422(ix) the ownership interest of an out-of-state public agency, as defined in Section
42311-13-103:
424(A) if that ownership interest is in property providing additional project capacity,
425as defined in Section 11-13-103; and
426(B) on which a fee in lieu of ad valorem property tax is payable under Section
42711-13-302.
428      (b) For purposes of a property tax exemption for property of school districts under
429Subsection (3)(a)(ii)(B), a charter school under Title 53G, Chapter 5, Charter
430Schools, is considered to be a school district.
431  (4) Subject to Subsection (5), if property that is allowed an exclusive use exemption or a
432      government exemption ceases to qualify for the exemption because of a change in the
433      ownership of the property:
434      (a) the new owner of the property shall pay a proportional tax based upon the period of
435time:
436(i) beginning on the day that the new owner acquired the property; and
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437(ii) ending on the last day of the calendar year during which the new owner acquired
438the property; and
439(b) the new owner of the property and the person from whom the new owner acquires
440the property shall notify the county assessor, in writing, of the change in ownership
441of the property within 30 days from the day that the new owner acquires the property.
442   (5) Notwithstanding Subsection (4)(a), the proportional tax described in Subsection (4)(a):
443(a) is subject to any exclusive use exemption or government exemption that the property
444is entitled to under the new ownership of the property; and
445(b) applies only to property that is acquired after December 31, 2005.
446   (6)(a) As used in this Subsection (6), "extraterritorial county property" means real
447property owned by a county that is located outside the geographical boundaries of the
448county.
449(b) Notwithstanding Subsection (3)(a)(iii)(A) and except as provided in Subsection (6)(c):
450(i) beginning January 1, 2027, extraterritorial county property that is acquired on or
451after May 6, 2026, is subject to property taxation; and
452(ii) beginning January 1, 2029, extraterritorial county property that was acquired
453before May 6, 2026, is subject to property taxation.
454(c) Extraterritorial county property shall retain the exemption described in Subsection
455(3)(a)(iii)(A) if the county that owns the property and the county where the property
456is located:
457(i) agree to maintain the exemption described in Subsection (3)(a)(iii)(A) in regard to
458the extraterritorial county property; and
459(ii) enter into an agreement regarding the extraterritorial county property.
460(d) If extraterritorial county property is subject to property taxation as described in this
461Subsection (6), the extraterritorial county property shall be assessed and taxed at the
462property's taxable value and use immediately before the county's acquisition of the
463extraterritorial county property, including any assessment under Part 5, Farmland
464Assessment Act.
465(e)(i) If the use of extraterritorial county property subject to property taxation
466changes from an agricultural use to a non-qualifying use, as described in Part 5,
467Farmland Assessment Act, the county that owns the property shall be subject to
468the rollback tax described in Section 59-2-506.
469(ii) The rollback tax described in Subsection (6)(e)(i) shall be calculated based on the
470difference between the greenbelt assessment and the fair market value assessment
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471for the preceding five years.
472  [(6)] (7)(a) A property may not receive an exemption under Subsection (3)(a)(iv) if:
473(i) the nonprofit entity that owns the property participates in or intervenes in any
474political campaign on behalf of or in opposition to any candidate for public office,
475including the publishing or distribution of statements; or
476(ii) a substantial part of the activities of the nonprofit entity that owns the property
477consists of carrying on propaganda or otherwise attempting to influence
478legislation, except as provided under Subsection 501(h), Internal Revenue Code.
479      (b) Whether a nonprofit entity is engaged in an activity described in Subsection [(6)(a)]
480(7)(a) shall be determined using the standards described in Section 501, Internal
481Revenue Code.
482  [(7)] (8) A property may not receive an exemption under Subsection (3)(a)(iv) if:
483      (a) the property is used for a purpose that is not religious, charitable, or educational; and
484      (b) the use for a purpose that is not religious, charitable, or educational is more than de
485minimis.
486  [(8)] (9) A county legislative body may adopt rules or ordinances to:
487      (a) effectuate an exemption under this part; and
488      (b) designate one or more persons to perform the functions given to the county under
489this part.
490  [(9)] (10) If a person is dissatisfied with an exemption decision made under designated
491      decision-making authority as described in Subsection [(8)(b)] (9)(b), that person may
492      appeal the decision to the commission under Section 59-2-1006.
493Section 7. Effective Date.
494  This bill takes effect on May 6, 2026.
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