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7 LONG TITLE
8 General Description:
9 This bill makes changes to tax and education provisions to provide for education
11 Highlighted Provisions:
12 This bill:
13 . establishes a set tax rate for the minimum basic tax rate, subject to the rate
14 generating a specified revenue amount;
15 . eliminates an advertising requirement related to the minimum basic tax rate;
16 . changes the personal exemption component of the individual income tax credit
17 calculation from a percentage of the federal personal exemption to a fixed dollar
18 amount per exemption; and
19 . makes technical and conforming changes.
20 Money Appropriated in this Bill:
22 Other Special Clauses:
23 This bill provides for retrospective operation.
24 Utah Code Sections Affected:
26 53A-17a-103, as last amended by Laws of Utah 2011, Chapter 371
27 53A-17a-135, as last amended by Laws of Utah 2012, Chapters 4 and 421
28 59-2-102, as last amended by Laws of Utah 2012, Chapter 240
29 59-2-926, as last amended by Laws of Utah 2009, Chapter 388
30 59-10-1018, as last amended by Laws of Utah 2012, Chapter 295
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 53A-17a-103 is amended to read:
34 53A-17a-103. Definitions.
35 As used in this chapter:
36 (1) "Basic state-supported school program" or "basic program" means public education
37 programs for kindergarten, elementary, and secondary school students that are operated and
38 maintained for the amount derived by multiplying the number of weighted pupil units for each
39 school district or charter school by the value established each year in statute, except as
40 otherwise provided in this chapter.
41 (2) (a) "Certified revenue levy" means a property tax levy that provides an amount of
42 ad valorem property tax revenue equal to the sum of:
43 (i) the amount of ad valorem property tax revenue to be generated statewide in the
44 previous year from imposing a minimum basic tax rate, as specified in [
45 53A-17a-135 [
46 (ii) the product of:
47 (A) new growth, as defined in:
48 (I) Section 59-2-924 ; and
49 (II) rules of the State Tax Commission; and
50 (B) the minimum basic tax rate certified by the State Tax Commission for the previous
52 (b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
53 include property tax revenue received statewide from personal property that is:
54 (i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
55 Assessment; and
56 (ii) semiconductor manufacturing equipment.
57 (c) For purposes of calculating the certified revenue levy described in this Subsection
58 (2), the State Tax Commission shall use:
59 (i) the taxable value of real property assessed by a county assessor contained on the
60 assessment roll;
61 (ii) the taxable value of real and personal property assessed by the State Tax
62 Commission; and
63 (iii) the taxable year end value of personal property assessed by a county assessor
64 contained on the prior year's assessment roll.
65 (3) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
66 (4) (a) "State-supported minimum school program" or "Minimum School Program"
67 means public school programs for kindergarten, elementary, and secondary schools as
68 described in this Subsection (4).
69 (b) The minimum school program established in school districts and charter schools
70 shall include the equivalent of a school term of nine months as determined by the State Board
71 of Education.
72 (c) (i) The board shall establish the number of days or equivalent instructional hours
73 that school is held for an academic school year.
74 (ii) Education, enhanced by utilization of technologically enriched delivery systems,
75 when approved by local school boards or charter school governing boards, shall receive full
76 support by the State Board of Education as it pertains to fulfilling the attendance requirements,
77 excluding time spent viewing commercial advertising.
78 (d) The Minimum School Program includes a program or allocation funded by a line
79 item appropriation or other appropriation designated as follows:
80 (i) Basic School Program;
81 (ii) Related to Basic Programs;
82 (iii) Voted and Board Levy Programs; or
83 (iv) Minimum School Program.
84 (5) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
85 factors that is computed in accordance with this chapter for the purpose of determining the
86 costs of a program on a uniform basis for each district.
87 Section 2. Section 53A-17a-135 is amended to read:
88 53A-17a-135. Minimum basic tax rate -- Certified revenue levy.
89 (1) (a) In order to qualify for receipt of the state contribution toward the basic program
90 and as its contribution toward its costs of the basic program, each school district shall impose a
91 minimum basic tax rate per dollar of taxable value [
93 (b) [
94 minimum basic tax rate is [
95 (i) .001651; or
96 (ii) the certified revenue levy.
97 (c) The State Tax Commission shall certify on or before June 22 the [
99 Subsection (1)(b).
102 (2) (a) The state shall contribute to each district toward the cost of the basic program in
103 the district that portion which exceeds the proceeds of the levy authorized under Subsection
105 (b) In accord with the state strategic plan for public education and to fulfill its
106 responsibility for the development and implementation of that plan, the Legislature instructs
107 the State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each
108 of the coming five years to develop budgets that will fully fund student enrollment growth.
109 (3) (a) If the proceeds of the levy authorized under Subsection (1) equal or exceed the
110 cost of the basic program in a school district, no state contribution shall be made to the basic
112 (b) The proceeds of the levy authorized under Subsection (1) which exceed the cost of
113 the basic program shall be paid into the Uniform School Fund as provided by law.
114 Section 3. Section 59-2-102 is amended to read:
115 59-2-102. Definitions.
116 As used in this chapter and title:
117 (1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
118 engaging in dispensing activities directly affecting agriculture or horticulture with an
119 airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
120 rotorcraft's use for agricultural and pest control purposes.
121 (2) "Air charter service" means an air carrier operation which requires the customer to
122 hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
124 (3) "Air contract service" means an air carrier operation available only to customers
125 who engage the services of the carrier through a contractual agreement and excess capacity on
126 any trip and is not available to the public at large.
127 (4) "Aircraft" is as defined in Section 72-10-102 .
128 (5) (a) Except as provided in Subsection (5)(b), "airline" means an air carrier that:
129 (i) operates:
130 (A) on an interstate route; and
131 (B) on a scheduled basis; and
132 (ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
133 regularly scheduled route.
134 (b) "Airline" does not include an:
135 (i) air charter service; or
136 (ii) air contract service.
137 (6) "Assessment roll" means a permanent record of the assessment of property as
138 assessed by the county assessor and the commission and may be maintained manually or as a
139 computerized file as a consolidated record or as multiple records by type, classification, or
141 (7) (a) "Certified revenue levy" means a property tax levy that provides an amount of
142 ad valorem property tax revenue equal to the sum of:
143 (i) the amount of ad valorem property tax revenue to be generated statewide in the
144 previous year from imposing a school minimum basic tax rate, as specified in [
145 Section 53A-17a-135 [
146 Section 59-2-1602 ; and
147 (ii) the product of:
148 (A) new growth, as defined in:
149 (I) Section 59-2-924 ; and
150 (II) rules of the commission; and
151 (B) the school minimum basic tax rate, as specified in Section 53A-17a-135 , or
152 multicounty assessing and collecting levy, as specified in Section 59-2-1602 certified by the
153 commission for the previous year.
154 (b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
155 include property tax revenue received by a taxing entity from personal property that is:
156 (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
157 (ii) semiconductor manufacturing equipment.
158 (c) For purposes of calculating the certified revenue levy described in this Subsection
159 (7), the commission shall use:
160 (i) the taxable value of real property assessed by a county assessor contained on the
161 assessment roll;
162 (ii) the taxable value of real and personal property assessed by the commission; and
163 (iii) the taxable year end value of personal property assessed by a county assessor
164 contained on the prior year's assessment roll.
165 (8) "County-assessed commercial vehicle" means:
166 (a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
167 Section 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or
168 property in furtherance of the owner's commercial enterprise;
169 (b) any passenger vehicle owned by a business and used by its employees for
170 transportation as a company car or vanpool vehicle; and
171 (c) vehicles which are:
172 (i) especially constructed for towing or wrecking, and which are not otherwise used to
173 transport goods, merchandise, or people for compensation;
174 (ii) used or licensed as taxicabs or limousines;
175 (iii) used as rental passenger cars, travel trailers, or motor homes;
176 (iv) used or licensed in this state for use as ambulances or hearses;
177 (v) especially designed and used for garbage and rubbish collection; or
178 (vi) used exclusively to transport students or their instructors to or from any private,
179 public, or religious school or school activities.
180 (9) (a) Except as provided in Subsection (9)(b), for purposes of Section 59-2-801 ,
181 "designated tax area" means a tax area created by the overlapping boundaries of only the
182 following taxing entities:
183 (i) a county; and
184 (ii) a school district.
185 (b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
186 by the overlapping boundaries of:
187 (i) the taxing entities described in Subsection (9)(a); and
188 (ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
189 and the boundaries of the city or town are identical; or
190 (B) a special service district if the boundaries of the school district under Subsection
191 (9)(a) are located entirely within the special service district.
192 (10) "Eligible judgment" means a final and unappealable judgment or order under
193 Section 59-2-1330 :
194 (a) that became a final and unappealable judgment or order no more than 14 months
195 prior to the day on which the notice required by Section 59-2-919.1 is required to be mailed;
197 (b) for which a taxing entity's share of the final and unappealable judgment or order is
198 greater than or equal to the lesser of:
199 (i) $5,000; or
200 (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
201 previous fiscal year.
202 (11) (a) "Escaped property" means any property, whether personal, land, or any
203 improvements to the property, subject to taxation and is:
204 (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
205 to the wrong taxpayer by the assessing authority;
206 (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
207 comply with the reporting requirements of this chapter; or
208 (iii) undervalued because of errors made by the assessing authority based upon
209 incomplete or erroneous information furnished by the taxpayer.
210 (b) Property which is undervalued because of the use of a different valuation
211 methodology or because of a different application of the same valuation methodology is not
212 "escaped property."
213 (12) "Fair market value" means the amount at which property would change hands
214 between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
215 and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
216 market value" shall be determined using the current zoning laws applicable to the property in
217 question, except in cases where there is a reasonable probability of a change in the zoning laws
218 affecting that property in the tax year in question and the change would have an appreciable
219 influence upon the value.
220 (13) "Farm machinery and equipment," for purposes of the exemption provided under
221 Section 59-2-1101 , means tractors, milking equipment and storage and cooling facilities, feed
222 handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
223 tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
224 equipment used primarily for agricultural purposes; but does not include vehicles required to be
225 registered with the Motor Vehicle Division or vehicles or other equipment used for business
226 purposes other than farming.
227 (14) "Geothermal fluid" means water in any form at temperatures greater than 120
228 degrees centigrade naturally present in a geothermal system.
229 (15) "Geothermal resource" means:
230 (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
232 (b) the energy, in whatever form, including pressure, present in, resulting from, created
233 by, or which may be extracted from that natural heat, directly or through a material medium.
234 (16) (a) "Goodwill" means:
235 (i) acquired goodwill that is reported as goodwill on the books and records:
236 (A) of a taxpayer; and
237 (B) that are maintained for financial reporting purposes; or
238 (ii) the ability of a business to:
239 (A) generate income:
240 (I) that exceeds a normal rate of return on assets; and
241 (II) resulting from a factor described in Subsection (16)(b); or
242 (B) obtain an economic or competitive advantage resulting from a factor described in
243 Subsection (16)(b).
244 (b) The following factors apply to Subsection (16)(a)(ii):
245 (i) superior management skills;
246 (ii) reputation;
247 (iii) customer relationships;
248 (iv) patronage; or
249 (v) a factor similar to Subsections (16)(b)(i) through (iv).
250 (c) "Goodwill" does not include:
251 (i) the intangible property described in Subsection (20)(a) or (b);
252 (ii) locational attributes of real property, including:
253 (A) zoning;
254 (B) location;
255 (C) view;
256 (D) a geographic feature;
257 (E) an easement;
258 (F) a covenant;
259 (G) proximity to raw materials;
260 (H) the condition of surrounding property; or
261 (I) proximity to markets;
262 (iii) value attributable to the identification of an improvement to real property,
264 (A) reputation of the designer, builder, or architect of the improvement;
265 (B) a name given to, or associated with, the improvement; or
266 (C) the historic significance of an improvement; or
267 (iv) the enhancement or assemblage value specifically attributable to the interrelation
268 of the existing tangible property in place working together as a unit.
269 (17) "Governing body" means:
270 (a) for a county, city, or town, the legislative body of the county, city, or town;
271 (b) for a local district under Title 17B, Limited Purpose Local Government Entities -
272 Local Districts, the local district's board of trustees;
273 (c) for a school district, the local board of education; or
274 (d) for a special service district under Title 17D, Chapter 1, Special Service District
276 (i) the legislative body of the county or municipality that created the special service
277 district, to the extent that the county or municipal legislative body has not delegated authority
278 to an administrative control board established under Section 17D-1-301 ; or
279 (ii) the administrative control board, to the extent that the county or municipal
280 legislative body has delegated authority to an administrative control board established under
281 Section 17D-1-301 .
282 (18) (a) For purposes of Section 59-2-103 :
283 (i) "household" means the association of persons who live in the same dwelling,
284 sharing its furnishings, facilities, accommodations, and expenses; and
285 (ii) "household" includes married individuals, who are not legally separated, that have
286 established domiciles at separate locations within the state.
287 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
288 commission may make rules defining the term "domicile."
289 (19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
290 structure, fixture, fence, or other item that is permanently attached to land, regardless of
291 whether the title has been acquired to the land, if:
292 (i) (A) attachment to land is essential to the operation or use of the item; and
293 (B) the manner of attachment to land suggests that the item will remain attached to the
294 land in the same place over the useful life of the item; or
295 (ii) removal of the item would:
296 (A) cause substantial damage to the item; or
297 (B) require substantial alteration or repair of a structure to which the item is attached.
298 (b) "Improvement" includes:
299 (i) an accessory to an item described in Subsection (19)(a) if the accessory is:
300 (A) essential to the operation of the item described in Subsection (19)(a); and
301 (B) installed solely to serve the operation of the item described in Subsection (19)(a);
303 (ii) an item described in Subsection (19)(a) that:
304 (A) is temporarily detached from the land for repairs; and
305 (B) remains located on the land.
306 (c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:
307 (i) an item considered to be personal property pursuant to rules made in accordance
308 with Section 59-2-107 ;
309 (ii) a moveable item that is attached to land:
310 (A) for stability only; or
311 (B) for an obvious temporary purpose;
312 (iii) (A) manufacturing equipment and machinery; or
313 (B) essential accessories to manufacturing equipment and machinery;
314 (iv) an item attached to the land in a manner that facilitates removal without substantial
315 damage to:
316 (A) the land; or
317 (B) the item; or
318 (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
319 transportable factory-built housing unit is considered to be personal property under Section
320 59-2-1503 .
321 (20) "Intangible property" means:
322 (a) property that is capable of private ownership separate from tangible property,
324 (i) money;
325 (ii) credits;
326 (iii) bonds;
327 (iv) stocks;
328 (v) representative property;
329 (vi) franchises;
330 (vii) licenses;
331 (viii) trade names;
332 (ix) copyrights; and
333 (x) patents;
334 (b) a low-income housing tax credit;
335 (c) goodwill; or
336 (d) a renewable energy tax credit or incentive, including:
337 (i) a federal renewable energy production tax credit under Section 45, Internal Revenue
339 (ii) a federal energy credit for qualified renewable electricity production facilities under
340 Section 48, Internal Revenue Code;
341 (iii) a federal grant for a renewable energy property under American Recovery and
342 Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
343 (iv) a tax credit under Subsection 59-7-614 (2)(c).
344 (21) "Low-income housing tax credit" means:
345 (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
347 (b) a low-income housing tax credit under:
348 (i) Section 59-7-607 ; or
349 (ii) Section 59-10-1010 .
350 (22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
351 (23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
352 valuable mineral.
353 (24) "Mining" means the process of producing, extracting, leaching, evaporating, or
354 otherwise removing a mineral from a mine.
355 (25) (a) "Mobile flight equipment" means tangible personal property that is:
356 (i) owned or operated by an:
357 (A) air charter service;
358 (B) air contract service; or
359 (C) airline; and
360 (ii) (A) capable of flight;
361 (B) attached to an aircraft that is capable of flight; or
362 (C) contained in an aircraft that is capable of flight if the tangible personal property is
363 intended to be used:
364 (I) during multiple flights;
365 (II) during a takeoff, flight, or landing; and
366 (III) as a service provided by an air charter service, air contract service, or airline.
367 (b) (i) "Mobile flight equipment" does not include a spare part other than a spare
368 engine that is rotated:
369 (A) at regular intervals; and
370 (B) with an engine that is attached to the aircraft.
371 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
372 commission may make rules defining the term "regular intervals."
373 (26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
374 sand, rock, gravel, and all carboniferous materials.
375 (27) "Personal property" includes:
376 (a) every class of property as defined in Subsection (28) which is the subject of
377 ownership and not included within the meaning of the terms "real estate" and "improvements";
378 (b) gas and water mains and pipes laid in roads, streets, or alleys;
379 (c) bridges and ferries;
380 (d) livestock which, for the purposes of the exemption provided under Section
381 59-2-1112 , means all domestic animals, honeybees, poultry, fur-bearing animals, and fish; and
382 (e) outdoor advertising structures as defined in Section 72-7-502 .
383 (28) (a) "Property" means property that is subject to assessment and taxation according
384 to its value.
385 (b) "Property" does not include intangible property as defined in this section.
386 (29) "Public utility," for purposes of this chapter, means the operating property of a
387 railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
388 company, electrical corporation, telephone corporation, sewerage corporation, or heat
389 corporation where the company performs the service for, or delivers the commodity to, the
390 public generally or companies serving the public generally, or in the case of a gas corporation
391 or an electrical corporation, where the gas or electricity is sold or furnished to any member or
392 consumers within the state for domestic, commercial, or industrial use. Public utility also
393 means the operating property of any entity or person defined under Section 54-2-1 except water
395 (30) "Real estate" or "real property" includes:
396 (a) the possession of, claim to, ownership of, or right to the possession of land;
397 (b) all mines, minerals, and quarries in and under the land, all timber belonging to
398 individuals or corporations growing or being on the lands of this state or the United States, and
399 all rights and privileges appertaining to these; and
400 (c) improvements.
401 (31) "Residential property," for the purposes of the reductions and adjustments under
402 this chapter, means any property used for residential purposes as a primary residence. It does
403 not include property used for transient residential use or condominiums used in rental pools.
404 (32) (a) "State-assessed commercial vehicle" means:
405 (i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
406 to transport passengers, freight, merchandise, or other property for hire; or
407 (ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
408 transports the vehicle owner's goods or property in furtherance of the owner's commercial
410 (b) "State-assessed commercial vehicle" does not include vehicles used for hire which
411 are specified in Subsection (8)(c) as county-assessed commercial vehicles.
412 (33) "Taxable value" means fair market value less any applicable reduction allowed for
413 residential property under Section 59-2-103 .
414 (34) "Tax area" means a geographic area created by the overlapping boundaries of one
415 or more taxing entities.
416 (35) "Taxing entity" means any county, city, town, school district, special taxing
417 district, local district under Title 17B, Limited Purpose Local Government Entities - Local
418 Districts, or other political subdivision of the state with the authority to levy a tax on property.
419 (36) "Tax roll" means a permanent record of the taxes charged on property, as extended
420 on the assessment roll and may be maintained on the same record or records as the assessment
421 roll or may be maintained on a separate record properly indexed to the assessment roll. It
422 includes tax books, tax lists, and other similar materials.
423 Section 4. Section 59-2-926 is amended to read:
424 59-2-926. Proposed tax increase by state -- Notice -- Contents -- Dates.
425 If the state authorizes a levy pursuant to [
427 Section 59-2-1602 that exceeds the certified revenue levy as defined in Section 59-2-102 , the
428 state shall publish a notice no later than 10 days after the last day of the annual legislative
429 general session that meets the following requirements:
430 (1) (a) The Office of the Legislative Fiscal Analyst shall advertise that the state
431 authorized a levy that generates revenue in excess of the previous year's ad valorem tax
432 revenue, plus new growth, but exclusive of revenue from collections from redemptions,
433 interest, and penalties:
434 (i) in a newspaper of general circulation in the state; and
435 (ii) as required in Section 45-1-101 .
436 (b) Except an advertisement published on a website, the advertisement described in
437 Subsection (1)(a):
438 (i) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
439 point, and surrounded by a 1/4-inch border[
440 (ii) may not be placed in that portion of the newspaper where legal notices and
441 classified advertisements appear; and
442 (iii) shall be run once.
443 (2) The form and content of the notice shall be substantially as follows:
445 The state has budgeted an increase in its property tax revenue from $__________ to
446 $__________ or ____%. The increase in property tax revenues will come from the following
447 sources (include all of the following provisions):
448 (a) $__________ of the increase will come from (provide an explanation of the cause
449 of adjustment or increased revenues, such as reappraisals or factoring orders);
450 (b) $__________ of the increase will come from natural increases in the value of the
451 tax base due to (explain cause of new growth, such as new building activity, annexation, etc.);
452 (c) a home valued at $100,000 in the state of Utah which based on last year's (levy for
453 the basic state-supported school program, levy for the Property Tax Valuation Agency Fund, or
454 both) paid $____________ in property taxes would pay the following:
455 (i) $__________ if the state of Utah did not budget an increase in property tax revenue
456 exclusive of new growth; and
457 (ii) $__________ under the increased property tax revenues exclusive of new growth
458 budgeted by the state of Utah."
459 Section 5. Section 59-10-1018 is amended to read:
460 59-10-1018. Definitions -- Nonrefundable taxpayer tax credits.
461 (1) As used in this section:
462 (a) "Dependent adult with a disability" means an individual who:
463 (i) a claimant claims as a dependent under Section 151, Internal Revenue Code, on the
464 claimant's federal individual income tax return for the taxable year;
465 (ii) is not the claimant or the claimant's spouse; and
466 (iii) is:
467 (A) 18 years of age or older;
468 (B) eligible for services under Title 62A, Chapter 5, Services for People with
469 Disabilities; and
470 (C) not enrolled in an education program for students with disabilities that is
471 authorized under Section 53A-15-301 .
472 (b) "Dependent child with a disability" means an individual 21 years of age or younger
474 (i) a claimant claims as a dependent under Section 151, Internal Revenue Code, on the
475 claimant's federal individual income tax return for the taxable year;
476 (ii) is not the claimant or the claimant's spouse; and
477 (iii) is:
478 (A) an eligible student with a disability; or
479 (B) identified under guidelines of the Department of Health as qualified for Early
480 Intervention or Infant Development Services.
481 (c) "Eligible student with a disability" means an individual who is:
482 (i) diagnosed by a school district representative under rules the State Board of
483 Education adopts in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
484 Act, as having a disability classified as autism, deafness, preschool developmental delay, dual
485 sensory impairment, hearing impairment, intellectual disability, multidisability, orthopedic
486 impairment, other health impairment, traumatic brain injury, or visual impairment;
487 (ii) not receiving residential services from the Division of Services for People with
488 Disabilities created under Section 62A-5-102 or a school established under Title 53A, Chapter
489 25b, Utah Schools for the Deaf and the Blind; and
490 (iii) (A) enrolled in an education program for students with disabilities that is
491 authorized under Section 53A-15-301 ; or
492 (B) a recipient of a scholarship awarded under Title 53A, Chapter 1a, Part 7, Carson
493 Smith Scholarships for Students with Special Needs Act.
494 (d) "Head of household filing status" means a head of household, as defined in Section
495 2(b), Internal Revenue Code, who files a single federal individual income tax return for the
496 taxable year.
497 (e) "Joint filing status" means:
498 (i) a husband and wife who file a single return jointly under this chapter for a taxable
499 year; or
500 (ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
501 single federal individual income tax return for the taxable year.
502 (f) "Single filing status" means:
503 (i) a single individual who files a single federal individual income tax return for the
504 taxable year; or
505 (ii) a married individual who:
506 (A) does not file a single federal individual income tax return jointly with that married
507 individual's spouse for the taxable year; and
508 (B) files a single federal individual income tax return for the taxable year.
509 (2) Except as provided in Section 59-10-1002.2 , and subject to Subsections (3) through
510 (5), a claimant may claim a nonrefundable tax credit against taxes otherwise due under this part
511 equal to the sum of:
512 (a) (i) for a claimant that deducts the standard deduction on the claimant's federal
513 individual income tax return for the taxable year, 6% of the amount the claimant deducts as
514 allowed as the standard deduction on the claimant's federal individual income tax return for
515 that taxable year; or
516 (ii) for a claimant that itemizes deductions on the claimant's federal individual income
517 tax return for the taxable year, the product of:
518 (A) the difference between:
519 (I) the amount the claimant deducts as allowed as an itemized deduction on the
520 claimant's federal individual income tax return for that taxable year; and
521 (II) any amount of state or local income taxes the claimant deducts as allowed as an
522 itemized deduction on the claimant's federal individual income tax return for that taxable year;
524 (B) 6%; and
525 (b) the product of:
526 (i) [
527 the claimant [
528 federal individual income tax return for that taxable year, plus an additional [
530 claims as allowed as a personal exemption [
531 income tax return for that taxable year with respect to each dependent adult with a disability or
532 dependent child with a disability; and
533 (ii) 6%.
534 (3) A claimant may not carry forward or carry back a tax credit under this section.
535 (4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar
536 by which a claimant's state taxable income exceeds:
537 (a) for a claimant who has a single filing status, $12,000;
538 (b) for a claimant who has a head of household filing status, $18,000; or
539 (c) for a claimant who has a joint filing status, $24,000.
540 (5) (a) For taxable years beginning on or after January 1, 2009, the commission shall
541 increase or decrease the following dollar amounts by a percentage equal to the percentage
542 difference between the consumer price index for the preceding calendar year and the consumer
543 price index for calendar year 2007:
544 (i) the dollar amount listed in Subsection (4)(a); and
545 (ii) the dollar amount listed in Subsection (4)(b).
546 (b) After the commission increases or decreases the dollar amounts listed in Subsection
547 (5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the
548 nearest whole dollar.
549 (c) After the commission rounds the dollar amounts as required by Subsection (5)(b),
550 the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that
551 the dollar amount listed in Subsection (4)(c) is equal to the product of:
552 (i) the dollar amount listed in Subsection (4)(a); and
553 (ii) two.
554 (d) For purposes of Subsection (5)(a), the commission shall calculate the consumer
555 price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
556 Section 6. Retrospective operation.
557 (1) The amendments to the following sections have retrospective operation to January
558 1, 2013:
559 (a) Section 53A-17a-103 ;
560 (b) Section 53A-17a-135 ;
561 (c) Section 59-2-102 ; and
562 (d) Section 59-2-926 .
563 (2) The amendments to Section 59-10-1018 have retrospective operation for a taxable
564 year beginning on or after January 1, 2013.
Legislative Review Note
as of 9-27-12 11:17 AM