H.B. 153 Enrolled

PROPERTY TAX RELIEF AMENDMENTS
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Raymond W. Short
AN ACT RELATING TO THE PROPERTY TAX ACT; MODIFYING THE DEFINITION OF
INCOME; MAKING TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE
DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-2-1202, as last amended by Chapter 227, Laws of Utah 1993
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-2-1202 is amended to read:
59-2-1202. Definitions.
As used in this part:
(1) "Claimant" means a homeowner or renter who has filed a claim under this part and is
domiciled in this state for the entire calendar year for which a claim for relief is filed under this
part and who has reached the age of 65 prior to the close of that calendar year. A surviving
spouse, who otherwise qualifies under this section, is an eligible claimant regardless of age. If two
or more individuals of a household are able to meet the qualifications for a claimant, they may
determine among them as to who the claimant shall be, but if they are unable to agree, the matter
shall be referred to the county legislative body for a determination of the claimant of an owned
residence and to the commission for a determination of the claimant of a rented residence.
(2) "Gross rent" means rental actually paid in cash or its equivalent solely for the right of
occupancy, at arm's-length, of a residence, exclusive of charges for any utilities, services,
furniture, furnishings, or personal appliances furnished by the landlord as a part of the rental
agreement. If a claimant occupies two or more residences in the year and does not own the
residence as of the lien date, gross rent means the total rent paid for the residences during the
one-year period for which the renter files a claim under this part.
(3) "Homeowner's credit" means a credit against a claimant's property tax liability.

(4) "Household" means the association of persons who live in the same dwelling, sharing
its furnishings, facilities, accommodations, and expenses.
(5) "Household income" means all income received by all persons of a household in the
calendar year next preceding the year in which property taxes are due or, in the case of renters, the
year in which a claim is filed.
(6) (a) (i) "Income" means [the sum of] federal adjusted gross income as defined in [the]
Section 62, Internal Revenue Code [and all], plus all nontaxable income[, including, but not limited
to, the amount of capital gains] as defined in Subsection (6)(b).
(ii) "Income" does not include:
(A) aid, assistance, or contributions from a tax-exempt nongovernmental source;
(B) surplus foods;
(C) relief in kind supplied by a public or private agency; or
(D) relief provided under this part, Section 59-2-1108, or Section 59-2-1109.
(b) For purposes of Subsection (6)(a)(i), "nontaxable income" means amounts excluded
from adjusted gross income[, alimony,] under the Internal Revenue Code, including:
(i) capital gains;
(ii) loss carry forwards claimed during the taxable year in which a claimant files for relief
under this part, Section 59-2-1108, or Section 59-2-1109;
(iii) depreciation claimed pursuant to the Internal Revenue Code by a claimant on the
residence for which the claimant files for relief under this part, Section 59-2-1108, or Section
59-2-1109;
(iv) support money[,] received;
(v) nontaxable strike benefits[,];
(vi) cash public assistance[, and] or relief[,];
(vii) the gross amount of [any] a pension or annuity, including benefits under the Railroad
Retirement Act [benefits] of 1974, 45 U.S.C. Sec. 231, and veterans disability pensions[, all];
(viii) payments received under the [Federal] Social Security [and] Act;
(ix) state unemployment insurance [laws,] amounts;

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(x) nontaxable interest received from [the federal government or any of its
instrumentalities, workman's] any source;
(xi) workers' compensation[, and];
(xii) the gross amount of "loss of time" insurance[. Income does not include gifts from
nongovernmental sources or surplus foods, other relief in kind supplied by a public or private
agency, or relief provided under this part.]; and
(xiii) voluntary contributions to a tax-deferred retirement plan.
(7) "Property taxes accrued" means property taxes, exclusive of special assessments,
delinquent interest, and charges for service, levied on a claimant's residence in this state, and in the
case of a mobile home includes taxes imposed on both the land upon which the home is situated and
also on the structure of the home itself, whether classified as real property or personal property
taxes. For purposes of this subsection property taxes accrued are levied on the lien date. If a
claimant owns a residence on the lien date, property taxes accrued mean taxes levied on the lien
date, even if that claimant does not own a residence for the entire year. When a household owns and
occupies two or more different residences in this state in the same calendar year, property taxes
accrued shall relate only to the residence occupied on the lien date by the household as its principal
place of residence. If a residence is an integral part of a large unit such as a farm or a multipurpose
or multidwelling building, property taxes accrued shall be the same percentage of the total property
taxes accrued as the value of the residence is of the total value. For purposes of this subsection,
"unit" refers to the parcel of property covered by a single tax statement of which the residence is a
part.
(8) "Renter's credit" means a credit measured by reference to 10% of the gross rent.
(9) "Residence" means the dwelling, whether owned or rented, and so much of the land
surrounding it, not exceeding one acre, as is reasonably necessary for use of the dwelling as a home,
and may consist of a part of a multidwelling or multipurpose building and a part of the land upon
which it is built and includes a mobile home or houseboat but does not include personal property
such as furniture, furnishings, or appliances. For purposes of this subsection, "owned" includes a
vendee in possession under a land contract or one or more joint tenants or tenants in common.

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Section 2. Effective date.
This act takes effect on January 1, 1998.

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