H.B. 154

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PROPERTY TAX - CIRCUIT BREAKER
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Raymond W. Short
5 AN ACT RELATING TO REVENUE AND TAXATION; MODIFYING THE CALCULATION
6 OF THE PROPERTY TAX CREDITS ALLOWABLE FOR CERTAIN HOMEOWNERS AND
7 RENTERS; MODIFYING THE MAXIMUM AMOUNT ALLOWABLE AS A RENTER'S
8 CREDIT; MAKING TECHNICAL CORRECTIONS; AND PROVIDING AN EFFECTIVE
9 DATE.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 59-2-1202, as last amended by Chapter 227, Laws of Utah 1993
13 59-2-1208, as last amended by Chapter 248, Laws of Utah 1989
14 59-2-1209, as last amended by Chapter 248, Laws of Utah 1989
15 Be it enacted by the Legislature of the state of Utah:
16 Section 1. Section 59-2-1202 is amended to read:
17 59-2-1202. Definitions.
18 As used in this part:
19 (1) (a) "Claimant" means a homeowner or renter who:
20 (i) has filed a claim under this part [and];
21 (ii) is domiciled in this state for the entire calendar year for which a claim for relief is filed
22 under this part; and [who]
23 (iii) has reached the age of 65 prior to the close of that calendar year.
24 (b) A surviving spouse, who otherwise qualifies under this section, is an eligible claimant
25 regardless of age.
26 (c) If two or more individuals of a household are able to meet the qualifications for a
27 claimant, they may determine among them as to who the claimant shall be, but if they are unable

1 to agree, the matter shall be referred to the county legislative body for a determination of the
2 claimant of an owned residence and to the commission for a determination of the claimant of a
3 rented residence.
4 (2) (a) "Gross rent" means rental actually paid in cash or its equivalent solely for the right
5 of occupancy, at arm's-length, of a residence, exclusive of charges for any utilities, services,
6 furniture, furnishings, or personal appliances furnished by the landlord as a part of the rental
7 agreement.
8 (b) If a claimant occupies two or more residences in the year and does not own the
9 residence as of the lien date, gross rent means the total rent paid for the residences during the
10 one-year period for which the renter files a claim under this part.
11 (3) "Homeowner's credit" means a credit against a claimant's property tax liability.
12 (4) "Household" means the association of persons who live in the same dwelling, sharing
13 its furnishings, facilities, accommodations, and expenses.
14 (5) "Household income" means all income received by all persons of a household in the
15 calendar year next preceding the year in which property taxes are due or, in the case of renters, the
16 year in which a claim is filed.
17 (6) (a) "Income" means the sum of federal adjusted gross income as defined in the Internal
18 Revenue Code and all nontaxable income, including, but not limited to, the amount of capital gains
19 excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash
20 public assistance, and relief, the gross amount of any pension or annuity, including Railroad
21 Retirement Act benefits and veterans disability pensions, all payments received under the Federal
22 Social Security and state unemployment insurance laws, nontaxable interest received from the
23 federal government or any of its instrumentalities, workman's compensation, and the gross amount
24 of "loss of time" insurance.
25 (b) "Income" does not include gifts from nongovernmental sources or surplus foods, other
26 relief in kind supplied by a public or private agency, or relief provided under this part.
27 (7) (a) "Property taxes accrued" means property taxes, exclusive of special assessments,
28 delinquent interest, and charges for service, levied on a claimant's residence in this state, and in
29 the case of a mobile home includes taxes imposed on both the land upon which the home is
30 situated and also on the structure of the home itself, whether classified as real property or personal
31 property taxes.

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1 (b) For purposes of this subsection property taxes accrued are levied on the lien date. If
2 a claimant owns a residence on the lien date, property taxes accrued mean taxes levied on the lien
3 date, even if that claimant does not own a residence for the entire year.
4 (c) When a household owns and occupies two or more different residences in this state in
5 the same calendar year, property taxes accrued shall relate only to the residence occupied on the
6 lien date by the household as its principal place of residence.
7 (d) (i) If a residence is an integral part of a large unit such as a farm or a multipurpose or
8 multidwelling building, property taxes accrued shall be the same percentage of the total property
9 taxes accrued as the value of the residence is of the total value.
10 (ii) For purposes of this subsection, "unit" refers to the parcel of property covered by a
11 single tax statement of which the residence is a part.
12 [(8) "Renter's credit" means a credit measured by reference to 10% of the gross rent.]
13 [(9)] (8) (a) "Residence" means the dwelling, whether owned or rented, and so much of
14 the land surrounding it, not exceeding one acre, as is reasonably necessary for use of the dwelling
15 as a home, and may consist of a part of a multidwelling or multipurpose building and a part of the
16 land upon which it is built and includes a mobile home or houseboat [but].
17 (b) "Residence" does not include personal property such as furniture, furnishings, or
18 appliances.
19 (c) For purposes of this subsection, "owned" includes a vendee in possession under a land
20 contract or one or more joint tenants or tenants in common.
21 Section 2. Section 59-2-1208 is amended to read:
22 59-2-1208. Amount of homeowner's credit -- Cost-of-living adjustment -- Limitation
23 -- General Fund as source of credit.
24 (1) (a) For [any] taxable [year] years beginning on or after January 1, 1998, a claimant is
25 entitled to a homeowner's credit that does not [to] exceed the following amounts:
26 If household income is Homeowner's credit
27 $ 0 -- [$5,099] $7,358 [$400] $577
28 [$5,100 -- $6,799] $7,359 -- $9,812 [$350] $504
29 [$6,800 -- $8,499] $9,813 -- $12,264 [$300] $432
30 [$8,500 -- $10,199] $12,265 -- $14,717 [$225] $324
31 [$10,200 -- $11,899] $14,718 -- $17,171 [$175] $252

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1 [$11,900 -- $13,499] $17,172 -- $19,479 [$100] $144
2 [$13,500 -- $15,000] $19,480 -- $21,644 [$50] $71
3 [In all tax years beginning] (b) (i) For taxable years beginning on or after January 1, [1990]
4 1999, [and thereafter, both the household income eligibility amount and the credit shall be
5 increased or decreased by the commission in accordance with the cost-of-living adjustment
6 established under Section (1)(f)(3), Internal Revenue Code of 1986. If any increase or decrease
7 determined by the commission is not a multiple of $25, the increase or decrease shall be rounded
8 to the next lowest multiple of $25.] the commission shall increase or decrease the household
9 income eligibility amounts and the credits under Subsection (1)(a) in a percentage equal to the
10 percentage difference between the consumer price index for the preceding calendar year and the
11 consumer price index for calendar year 1997.
12 (ii) For purposes of Subsection (1)(b)(i), the commission shall calculate the consumer
13 price index as provided in Sections (1)(f)(4) and (1)(f)(5), Internal Revenue Code.
14 (2) [No] An individual who is claimed as a personal exemption on another individual's
15 return may not receive a homeowner's credit.
16 (3) The homeowner's credit allowed by this section [is to], and provided for in Section
17 59-2-1204, shall be derived from the General Fund and appropriate transfers made to effectuate
18 this credit.
19 Section 3. Section 59-2-1209 is amended to read:
20 59-2-1209. Amount of renter's credit -- Cost-of-living adjustment -- Limitation --
21 General Fund as source of credit -- Maximum credit.
22 (1) (a) For any taxable year a claimant is entitled to a renter's credit for the previous year
23 that does not [to] exceed the following amounts:
24 If household income is Percentage of rent constituting
25 property taxes accrued allowed as a credit
26 $ 0 -- [$5,099] $7,358 [95.0%] 9.5%
27 [$5,100 -- $6,799] $7,359 -- $9,812 [85.0%] 8.5%
28 [$6,800 -- $8,499] $9,813 -- $12,264 [70.0%] 7.0%
29 [$8,500 -- $10,199] $12,265 -- $14,717 [55.0%] 5.5%
30 [$10,200 -- $11,899] $14,718 -- $17,171 [40.0%] 4.0%
31 [$11,900 -- $13,499] $17,172 -- $19,479 [30%] 3.0%

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1 [$13,500 -- $15,000] $19,480 -- $21,644 [25%] 2.5%
2 [In all tax] (b) (i) For taxable years beginning on or after January 1, [1990] 1999, [and
3 thereafter, only the household income eligibility amount shall be increased or decreased by the
4 commission in accordance with the cost-of-living adjustment established under Section (1)(f)(3),
5 Internal Revenue Code of 1986. If any increase or decrease determined by the commission is not
6 a multiple of $25, the increase or decrease shall be rounded to the next lowest multiple of $25.]
7 the commission shall increase or decrease the household income eligibility amounts under
8 Subsection (1)(a) in a percentage equal to the percentage difference between the consumer price
9 index for the preceding calendar year and the consumer price index for calendar year 1997.
10 (ii) For purposes of Subsection (1)(b)(i), the commission shall calculate the consumer
11 price index as provided in Sections (1)(f)(4) and (1)(f)(5), Internal Revenue Code.
12 (2) [No] An individual who is claimed as a personal exemption on another individual's
13 return may not receive a renter's credit.
14 (3) The renter's credit allowed by this section, and provided for in Section 59-2-1204, [is
15 to] shall be derived from the General Fund and appropriate transfers made to effectuate this credit.
16 (4) [No] For taxable years beginning on or after January 1, 1998, a credit under this section
17 may not exceed [$400] the maximum amount allowed as a homeowner's credit for each income
18 bracket under Subsection 59-2-1208(1)(a).
19 Section 4. Effective date.
20 This act takes effect on January 1, 1998.




Legislative Review Note
as of 9-13-96 10:01 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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