H.B. 153

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PROPERTY TAX RELIEF AMENDMENTS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Raymond W. Short
5 AN ACT RELATING TO THE PROPERTY TAX ACT; MODIFYING THE DEFINITION OF
6 INCOME; MAKING TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
7 This act affects sections of Utah Code Annotated 1953 as follows:
8 AMENDS:
9 59-2-1202, as last amended by Chapter 227, Laws of Utah 1993
10 Be it enacted by the Legislature of the state of Utah:
11 Section 1. Section 59-2-1202 is amended to read:
12 59-2-1202. Definitions.
13 As used in this part:
14 (1) "Claimant" means a homeowner or renter who has filed a claim under this part and is
15 domiciled in this state for the entire calendar year for which a claim for relief is filed under this
16 part and who has reached the age of 65 prior to the close of that calendar year. A surviving spouse,
17 who otherwise qualifies under this section, is an eligible claimant regardless of age. If two or more
18 individuals of a household are able to meet the qualifications for a claimant, they may determine
19 among them as to who the claimant shall be, but if they are unable to agree, the matter shall be
20 referred to the county legislative body for a determination of the claimant of an owned residence
21 and to the commission for a determination of the claimant of a rented residence.
22 (2) "Gross rent" means rental actually paid in cash or its equivalent solely for the right of
23 occupancy, at arm's-length, of a residence, exclusive of charges for any utilities, services, furniture,
24 furnishings, or personal appliances furnished by the landlord as a part of the rental agreement. If
25 a claimant occupies two or more residences in the year and does not own the residence as of the
26 lien date, gross rent means the total rent paid for the residences during the one-year period for
27 which the renter files a claim under this part.

1 (3) "Homeowner's credit" means a credit against a claimant's property tax liability.
2 (4) "Household" means the association of persons who live in the same dwelling, sharing
3 its furnishings, facilities, accommodations, and expenses.
4 (5) "Household income" means all income received by all persons of a household in the
5 calendar year next preceding the year in which property taxes are due or, in the case of renters, the
6 year in which a claim is filed.
7 (6) (a) (i) "Income" means [the sum of] federal adjusted gross income as defined in [the]
8 Section 62, Internal Revenue Code [and all], plus all nontaxable income[, including, but not
9 limited to, the amount of capital gains] as defined in Subsection (6)(b).
10 (ii) "Income" does not include:
11 (A) aid, assistance, or contributions from a tax-exempt nongovernmental source;
12 (B) surplus foods;
13 (C) relief in kind supplied by a public or private agency; or
14 (D) relief provided under this part, Section 59-2-1108, or Section 59-2-1109.
15 (b) For purposes of Subsection (6)(a)(i), "nontaxable income" means amounts excluded
16 from adjusted gross income[,] under the Internal Revenue Code, including:
17 (i) capital gains;
18 (ii) loss carry forwards claimed during the taxable year in which a claimant files for relief
19 under this part, Section 59-2-1108, or Section 59-2-1109;
20 (iii) depreciation claimed pursuant to the Internal Revenue Code by a claimant on the
21 residence for which the claimant files for relief under this part, Section 59-2-1108, or Section
22 59-2-1109;
23 (iv) alimony[,];
24 (v) support money[,];
25 (vi) nontaxable strike benefits[,];
26 (vii) cash public assistance[, and] or relief[,];
27 (viii) the gross amount of [any] a pension or annuity, including benefits under the Railroad
28 Retirement Act [benefits] of 1974, 45 U.S.C. Sec. 231, and veterans disability pensions[, all];
29 (ix) payments received under the [Federal] Social Security [and] Act;
30 (x) state unemployment insurance [laws,] amounts;
31 (xi) nontaxable interest received from the federal government or [any of its

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1 instrumentalities, workman's] an instrumentality of the federal government;
2 (xii) workers' compensation[, and];
3 (xiii) the gross amount of "loss of time" insurance[. Income does not include gifts from
4 nongovernmental sources or surplus foods, other relief in kind supplied by a public or private
5 agency, or relief provided under this part.]; and
6 (xiv) voluntary contributions to a tax-deferred retirement plan.
7 (7) "Property taxes accrued" means property taxes, exclusive of special assessments,
8 delinquent interest, and charges for service, levied on a claimant's residence in this state, and in
9 the case of a mobile home includes taxes imposed on both the land upon which the home is
10 situated and also on the structure of the home itself, whether classified as real property or personal
11 property taxes. For purposes of this subsection property taxes accrued are levied on the lien date.
12 If a claimant owns a residence on the lien date, property taxes accrued mean taxes levied on the
13 lien date, even if that claimant does not own a residence for the entire year. When a household
14 owns and occupies two or more different residences in this state in the same calendar year,
15 property taxes accrued shall relate only to the residence occupied on the lien date by the household
16 as its principal place of residence. If a residence is an integral part of a large unit such as a farm
17 or a multipurpose or multidwelling building, property taxes accrued shall be the same percentage
18 of the total property taxes accrued as the value of the residence is of the total value. For purposes
19 of this subsection, "unit" refers to the parcel of property covered by a single tax statement of which
20 the residence is a part.
21 (8) "Renter's credit" means a credit measured by reference to 10% of the gross rent.
22 (9) "Residence" means the dwelling, whether owned or rented, and so much of the land
23 surrounding it, not exceeding one acre, as is reasonably necessary for use of the dwelling as a
24 home, and may consist of a part of a multidwelling or multipurpose building and a part of the land
25 upon which it is built and includes a mobile home or houseboat but does not include personal
26 property such as furniture, furnishings, or appliances. For purposes of this subsection, "owned"
27 includes a vendee in possession under a land contract or one or more joint tenants or tenants in
28 common.
29 Section 2. Effective date.
30 This act takes effect on January 1, 1998.


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Legislative Review Note
as of 9-13-96 10:08 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

Committee Note

The Revenue and Taxation Interim Committee recommended this bill.

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