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H.B. 242

             1     

PROPERTY TAX RESIDENTIAL EXEMPTION AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: V. Lowry Snow

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Property Tax Act to address the exemption for residential property.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides procedures and requirements to obtain a residential exemption for a
             13      portion of a calendar year for property that is not residential property on January 1
             14      but becomes residential property after January 1 of a calendar year; and
             15          .    makes technical and conforming changes.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          This bill takes effect on January 1, 2014.
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          59-2-103.5, as last amended by Laws of Utah 2011, Chapter 410
             23      ENACTS:
             24          59-2-103.6, Utah Code Annotated 1953
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 59-2-103.5 is amended to read:


             28           59-2-103.5. Procedures to obtain an exemption for residential property --
             29      Procedure if property owner or property no longer qualifies to receive a residential
             30      exemption.
             31          (1) Subject to the other provisions of this section, a county legislative body may by
             32      ordinance require that in order for residential property to be allowed a residential exemption in
             33      accordance with Section 59-2-103 , an owner of the residential property shall file with the
             34      county board of equalization a statement:
             35          (a) on a form prescribed by the commission by rule;
             36          (b) signed by all of the owners of the residential property;
             37          (c) certifying that the residential property is residential property; and
             38          (d) containing other information as required by the commission by rule.
             39          (2) (a) Subject to Section 59-2-103 and except as provided in Subsection (3), a county
             40      board of equalization shall allow an owner described in Subsection (1) a residential exemption
             41      for the residential property described in Subsection (1) if:
             42          (i) the county legislative body enacts the ordinance described in Subsection (1); and
             43          (ii) the county board of equalization determines that the requirements of Subsection (1)
             44      are met.
             45          (b) A county board of equalization may require an owner of the residential property
             46      described in Subsection (1) to file the statement described in Subsection (1) only if:
             47          (i) that residential property was ineligible for the residential exemption authorized
             48      under Section 59-2-103 during the calendar year immediately preceding the calendar year for
             49      which the owner is seeking to claim the residential exemption for that residential property;
             50          (ii) an ownership interest in that residential property changes; or
             51          (iii) the county board of equalization determines that there is reason to believe that that
             52      residential property no longer qualifies for the residential exemption in accordance with
             53      Section 59-2-103 .
             54          (3) Notwithstanding Subsection (2)(a), if a county legislative body does not enact an
             55      ordinance requiring an owner to file a statement in accordance with this section, the county
             56      board of equalization:
             57          (a) may not require an owner to file a statement for residential property to be eligible
             58      for a residential exemption in accordance with Section 59-2-103 ; and


             59          (b) shall allow a residential exemption for residential property in accordance with
             60      Section 59-2-103 .
             61          (4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             62      the commission shall make rules providing:
             63          (i) the form for the statement described in Subsection (1); and
             64          (ii) the contents of the form for the statement described in Subsection (1).
             65          (b) The commission shall make the form described in Subsection (4)(a) available to
             66      counties.
             67          (5) Notwithstanding Subsection (3), procedures and requirements for allowing a
             68      residential exemption for a portion of a calendar year for property that is not residential
             69      property on January 1 of a calendar year but becomes residential property after January 1 of
             70      that calendar year are as provided in Section 59-2-103.6 .
             71          [(5)] (6) Except as provided in Subsection [(6)] (7), if a property owner no longer
             72      qualifies to receive a residential exemption authorized under Section 59-2-103 for that property
             73      owner's primary residence, the property owner shall:
             74          (a) file a written statement with the county board of equalization of the county in which
             75      the property is located:
             76          (i) on a form provided by the county board of equalization; and
             77          (ii) notifying the county board of equalization that the property owner no longer
             78      qualifies to receive a residential exemption authorized under Section 59-2-103 for that property
             79      owner's primary residence; and
             80          (b) declare on the property owner's individual income tax return under Chapter 10,
             81      Individual Income Tax Act, for the taxable year for which the property owner no longer
             82      qualifies to receive a residential exemption authorized under Section 59-2-103 for that property
             83      owner's primary residence, that the property owner no longer qualifies to receive a residential
             84      exemption authorized under Section 59-2-103 for that property owner's primary residence.
             85          [(6)] (7) A property owner is not required to file a written statement or make the
             86      declaration described in Subsection [(5)] (6) if the property owner:
             87          (a) changes primary residences;
             88          (b) qualified to receive a residential exemption authorized under Section 59-2-103 for
             89      the residence that was the property owner's former primary residence; and


             90          (c) subject to Subsection (8), qualifies to receive a residential exemption authorized
             91      under Section 59-2-103 for the residence that is the property owner's current primary residence.
             92          (8) For purposes of Subsection (7)(c), if a county board of equalization determines that
             93      an owner is allowed a residential exemption for a portion of a calendar year under Section
             94      59-2-103.6 , the owner is considered to qualify to receive a residential exemption under Section
             95      59-2-103 for the calendar year in which the owner applies for the residential exemption under
             96      Section 59-2-103.6 , regardless of whether Section 59-2-103.6 requires the owner to:
             97          (a) claim the residential exemption in the current calendar year; or
             98          (b) claim a refund in the next calendar year.
             99          Section 2. Section 59-2-103.6 is enacted to read:
             100          59-2-103.6. Procedures and requirements to claim residential exemption for
             101      portion of calendar year.
             102          (1) Subject to Sections 59-2-103 and 59-2-103.5 and the other provisions of this
             103      section, if property is not residential property on January 1 of a calendar year but becomes
             104      residential property after January 1 of that calendar year, an owner of the property may claim a
             105      residential exemption under Section 59-2-103 for the residential property for the portion of the
             106      calendar year that the property is residential property.
             107          (2) If the property described in Subsection (1) becomes residential property:
             108          (a) before March 1, an owner may claim the residential exemption in the current
             109      calendar year as calculated under Subsection (5); or
             110          (b) on or after March 1, an owner may claim a refund in the next calendar year as
             111      calculated under Subsection (6).
             112          (3) To claim a residential exemption for a portion of a calendar year that property is
             113      residential property, an owner shall:
             114          (a) file an application with the county board of equalization:
             115          (i) on a form the commission prescribes; and
             116          (ii) (A) for an owner that claims the residential exemption in the current calendar year,
             117      on or before April 1 of that current calendar year; or
             118          (B) for an owner that claims a refund in the next calendar year, on or before April 1 of
             119      that next calendar year; and
             120          (b) provide the county board of equalization documentation to establish:


             121          (i) that the property is residential property; and
             122          (ii) the date the property became residential property.
             123          (4) If a county board of equalization determines that an owner is not allowed a
             124      residential exemption for a portion of a calendar year, the county board of equalization shall:
             125          (a) deny the owner's application; and
             126          (b) provide the grounds for the denial to the owner in writing.
             127          (5) If a county board of equalization determines that an owner is allowed a residential
             128      exemption for a portion of a calendar year, the county board of equalization shall determine the
             129      tax due for the calendar year as follows:
             130          (a) the county board of equalization shall determine the property tax that would have
             131      been due for the current calendar year had the property:
             132          (i) been residential property eligible for the residential exemption under Section
             133      59-2-103 for the entire calendar year; and
             134          (ii) not been residential property for the entire calendar year;
             135          (b) the county board of equalization shall divide the amount determined under:
             136          (i) Subsection (5)(a)(i) by 365; and
             137          (ii) Subsection (5)(a)(ii) by 365;
             138          (c) the county board of equalization shall multiply the amount determined under:
             139          (i) Subsection (5)(b)(i) by the number of days in the current calendar year that the
             140      property is residential property; and
             141          (ii) Subsection (5)(b)(ii) by the number of days in the current calendar year that the
             142      property is not residential property; and
             143          (d) the county board of equalization shall determine the tax due for the calendar year
             144      by adding the amount determined under Subsection (5)(c)(i) and the amount determined under
             145      Subsection (5)(c)(ii).
             146          (6) If an owner who is allowed a residential exemption for a portion of a calendar year
             147      is required to claim a refund under Subsection (2)(b), the amount of the refund is equal to the
             148      difference between:
             149          (a) the property tax the owner paid for the calendar year for which the owner applied
             150      under this section for a residential exemption; and
             151          (b) the amount the county board of equalization determines to be the tax due for the


             152      calendar year under Subsection (5)(d).
             153          Section 3. Effective date.
             154          This bill takes effect on January 1, 2014.




Legislative Review Note
    as of 1-4-13 10:44 AM


Office of Legislative Research and General Counsel


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