H.B. 154 Enrolled

PROPERTY TAX - CIRCUIT BREAKER
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Raymond W. Short
Gene Davis

AN ACT RELATING TO REVENUE AND TAXATION; MODIFYING THE CALCULATION
OF THE PROPERTY TAX CREDITS ALLOWABLE FOR CERTAIN HOMEOWNERS
AND RENTERS; MODIFYING THE MAXIMUM AMOUNT ALLOWABLE AS A
RENTER'S CREDIT; MAKING TECHNICAL CORRECTIONS; 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
59-2-1208, as last amended by Chapter 248, Laws of Utah 1989
59-2-1209, as last amended by Chapter 248, Laws of Utah 1989
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) (a) "Claimant" means a homeowner or renter who:
(i) has filed a claim under this part [and];
(ii) is domiciled in this state for the entire calendar year for which a claim for relief is filed
under this part; and [who]
(iii) has reached the age of 65 prior to the close of that calendar year.
(b) A surviving spouse, who otherwise qualifies under this section, is an eligible claimant
regardless of age.
(c) 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) (a) "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.
(b) 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) "Income" means the sum of federal adjusted gross income as defined in the Internal
Revenue Code and all nontaxable income, including, but not limited to, the amount of capital gains
excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash
public assistance, and relief, the gross amount of any pension or annuity, including Railroad
Retirement Act benefits and veterans disability pensions, all payments received under the Federal
Social Security and state unemployment insurance laws, nontaxable interest received from the
federal government or any of its instrumentalities, workman's compensation, and the gross amount
of "loss of time" insurance.
(b) "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.
(7) (a) "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

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also on the structure of the home itself, whether classified as real property or personal property taxes.
(b) 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.
(c) 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.
(d) (i) 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.
(ii) 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)] (8) (a) "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].
(b) "Residence" does not include personal property such as furniture, furnishings, or
appliances.
(c) 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.
Section 2. Section 59-2-1208 is amended to read:
59-2-1208. Amount of homeowner's credit -- Cost-of-living adjustment -- Limitation
-- General Fund as source of credit.
(1) (a) For [any] taxable [year] years beginning on or after January 1, 1998, a claimant is
entitled to a homeowner's credit that does not [to] exceed the following amounts:
If household income is Homeowner's credit
$0 -- [$5,099] $7,358 [$400] $577

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[$5,100 -- $6,799] $7,359 -- $9,812 [$350] $504
[$6,800 -- $8,499] $9,813 -- $12,264 [$300] $432
[$8,500 -- $10,199] $12,265 -- $14,717 [$225] $324
[$10,200 -- $11,899] $14,718 -- $17,171 [$175] $252
[$11,900 -- $13,499] $17,172 -- $19,479 [$100] $144
[$13,500 -- $15,000] $19,480 -- $21,644 [$50] $71
[In all tax years beginning] (b) (i) For taxable years beginning on or after January 1, [1990]
1999, [and thereafter, both the household income eligibility amount and the credit shall be increased
or decreased by the commission in accordance with the cost-of-living adjustment established under
Section (1)(f)(3), Internal Revenue Code of 1986. If any increase or decrease determined by the
commission is not a multiple of $25, the increase or decrease shall be rounded to the next lowest
multiple of $25.] the commission shall increase or decrease the household income eligibility amounts
and the credits under Subsection (1)(a) in a percentage equal to the percentage difference between
the consumer price index for the preceding calendar year and the consumer price index for calendar
year 1997.
(ii) For purposes of Subsection (1)(b)(i), the commission shall calculate the consumer price
index as provided in Sections (1)(f)(4) and (1)(f)(5), Internal Revenue Code.
(2) [No] An individual who is claimed as a personal exemption on another individual's return
may not receive a homeowner's credit.
(3) The homeowner's credit allowed by this section [is to], and provided for in Section
59-2-1204, shall be derived from the General Fund and appropriate transfers made to effectuate this
credit.
Section 3. Section 59-2-1209 is amended to read:
59-2-1209. Amount of renter's credit -- Cost-of-living adjustment -- Limitation --
General Fund as source of credit -- Maximum credit.
(1) (a) For any taxable year a claimant is entitled to a renter's credit for the previous year that
does not [to] exceed the following amounts:
If household income is Percentage of rent constituting

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property taxes accrued allowed as a credit
$0 -- [$5,099] $7,358 [95.0%] 9.5%
[$5,100 -- $6,799] $7,359 -- $9,812 [85.0%] 8.5%
[$6,800 -- $8,499] $9,813 -- $12,264 [70.0%] 7.0%
[$8,500 -- $10,199] $12,265 -- $14,717 [55.0%] 5.5%
[$10,200 -- $11,899] $14,718 -- $17,171 [40.0%] 4.0%
[$11,900 -- $13,499] $17,172 -- $19,479 [30%] 3.0%
[$13,500 -- $15,000] $19,480 -- $21,644 [25%] 2.5%
[In all tax] (b) (i) For taxable years beginning on or after January 1, [1990] 1999, [and
thereafter, only the household income eligibility amount shall be increased or decreased by the
commission in accordance with the cost-of-living adjustment established under Section (1)(f)(3),
Internal Revenue Code of 1986. If any increase or decrease determined by the commission is not
a multiple of $25, the increase or decrease shall be rounded to the next lowest multiple of $25.] the
commission shall increase or decrease the household income eligibility amounts under Subsection
(1)(a) in a percentage equal to the percentage difference between the consumer price index for the
preceding calendar year and the consumer price index for calendar year 1997.
(ii) For purposes of Subsection (1)(b)(i), the commission shall calculate the consumer price
index as provided in Sections (1)(f)(4) and (1)(f)(5), Internal Revenue Code.
(2) [No] An individual who is claimed as a personal exemption on another individual's return
may not receive a renter's credit.
(3) The renter's credit allowed by this section, and provided for in Section 59-2-1204, [is to]
shall be derived from the General Fund and appropriate transfers made to effectuate this credit.
(4) [No] For taxable years beginning on or after January 1, 1998, a credit under this section
may not exceed [$400] the maximum amount allowed as a homeowner's credit for each income
bracket under Subsection 59-2-1208(1)(a).
Section 4. Effective date.
This act takes effect on January 1, 1998.

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