H.B. 198

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AMENDMENTS TO HOMESTEAD EXEMPTIONS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: John L. Valentine
5 AN ACT RELATING TO THE JUDICIAL CODE; AMENDING THE HOMESTEAD
6 EXEMPTION; PROVIDING FOR PROPERTY EXEMPT FROM EXECUTION; AND
7 MAKING TECHNICAL CORRECTIONS.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 78-23-3, as last amended by Chapter 142, Laws of Utah 1990
11 78-23-5, as last amended by Chapter 19, Laws of Utah 1989
12 78-23-8, as enacted by Chapter 111, Laws of Utah 1981
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 78-23-3 is amended to read:
15 78-23-3. Homestead exemption -- Excepted obligations -- Water rights and interests
16 -- Conveyance of homestead -- Sale and disposition of homestead -- Property right for federal
17 tax purposes.
18 (1) [A] (a) An individual is entitled to a homestead exemption consisting of property in
19 this state [shall be exempt] in an amount not exceeding [$8,000]:
20 (i) $5,000 in value [for a head of family, $2,000 in value for a spouse, and $500 in value
21 for each other dependent.] if the property consists in whole or in part of property which is not the
22 primary personal residence of the individual; or
23 (ii) $10,000 in value if the property claimed is the primary personal residence of the
24 individual.
25 (b) If the property claimed as exempt is jointly owned, each joint owner is entitled to a
26 homestead exemption, however:
27 (i) for property exempt under Subsection (1)(a), the maximum exemption may not exceed

1 $10,000; or
2 (ii) for property exempt under Subsection (1)(b), the maximum exemption may not exceed
3 $20,000 per household.
4 (c) For purposes of this Subsection (1):
5 (i) "Household" means a group of persons related by blood or marriage living together in
6 the same dwelling as an economic unit, sharing furnishings, facilities, accommodations, and
7 expenses.
8 (ii) "Primary personal residence" means a dwelling or mobile home and the land
9 surrounding it, not exceeding one acre, as is reasonably necessary for the use of the dwelling or
10 mobile home, in which the individual and the individual's household reside.
11 (d) A person may claim a homestead [may be claimed] exemption in [either or both of the
12 following: (a)] one or more parcels of real property together with appurtenances and
13 improvements[; or (b) a mobile home in which the claimant resides].
14 (2) A homestead [shall be] is exempt from judicial lien and from levy, execution, or forced
15 sale[,] except [upon the following obligations] for:
16 (a) statutory liens for property taxes and assessments on the property;
17 (b) security interests in the property and judicial liens for debts created for the purchase
18 price of [such] the property; [and]
19 (c) judicial liens obtained on debts created by failure to provide support or maintenance
20 for dependent children[.]; and
21 (d) consensual liens obtained on debts created by mutual contract.
22 [(3) The term "head of family" includes a single individual with or without dependents or
23 a husband or wife when the claimant is married; but in no case are both husband and wife entitled
24 each to claim a homestead except as otherwise provided by this chapter.]
25 [(4) Water] (3) (a) Except as provided in Subsection (b), water rights and interests, either
26 in the form of corporate stock or otherwise, owned by the homestead claimant [shall be] are
27 exempt from execution to the extent that [such] those rights and interests are necessarily employed
28 in supplying water to the homestead for domestic and irrigating purposes[; but such].
29 (b) Those water rights and interests [shall] are not [be] exempt from calls or assessments
30 and sale by the corporations issuing the stock.
31 [(5)] (4) (a) When a homestead is conveyed by the owner of the property, the conveyance

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1 [shall] may not subject the property to any lien to which it would not be subject in the hands of the
2 owner[; and the].
3 (b) The proceeds of any sale, to the amount of the exemption existing at the time of sale,
4 [shall be] is exempt from levy, execution, or other process for one year after the receipt of the
5 proceeds by the person entitled to the exemption.
6 [(6) If the homestead claimant is married, the homestead may be selected from the separate
7 property of the husband, or with the consent of the wife from her separate property.]
8 [(7) A] (5) The sale and disposition of one homestead [shall] does not prevent the
9 selection or purchase of another.
10 [(8)] (6) For purposes of any claim or action for taxes brought by the United States Internal
11 Revenue Service, a homestead exemption claimed on real property in this state is considered to
12 be a property right.
13 Section 2. Section 78-23-5 is amended to read:
14 78-23-5. Property exempt from execution.
15 (1) (a) An individual is entitled to exemption of the following property:
16 [(a)] (i) a burial plot for the individual and his family;
17 [(b)] (ii) health aids reasonably necessary to enable the individual or a dependent to work
18 or sustain health;
19 [(c)] (iii) benefits the individual or his dependent have received or are entitled to receive
20 [by reason] because of disability, illness, or unemployment from any source;
21 [(d)] (iv) benefits paid or payable for medical, surgical, or hospital care to the extent they
22 are used by an individual or his dependent to pay for [such] that care;
23 [(e)] (v) veterans benefits;
24 [(f)] (vi) money or property received, and rights to receive money or property for child
25 support;
26 [(g)] (vii) one clothes washer and dryer, one refrigerator, one freezer, one stove, one
27 microwave oven, one sewing machine, all carpets in use, provisions sufficient for [three] 12
28 months actually provided for individual or family use, all wearing apparel of every individual and
29 dependent, not including jewelry or furs, and all beds and bedding for every individual or
30 dependent;
31 [(h)] (viii) works of art depicting the debtor or the debtor and his resident family, or

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1 produced by the debtor or the debtor and his resident family, except works of art held by the debtor
2 as part of a trade or business;
3 [(i)] (ix) proceeds of insurance, a judgment, or a settlement, or other rights accruing as a
4 result of bodily injury of the individual or of the wrongful death or bodily injury of another
5 individual of whom the individual was or is a dependent to the extent that [such] those proceeds
6 are compensatory;
7 [(j)] (x) except as provided in Subsection (b), any money or other assets held for or
8 payable to the individual as a participant or beneficiary from or an interest of the individual as a
9 participant or beneficiary in a retirement plan or arrangement [which] that is described in
10 [Sections] Section 401(a), 401(h), 401(k), 403(a), 403(b), 408, 409, 414(d), or 414(e) of the United
11 States Internal Revenue Code of 1986, as amended[. This exemption shall not apply:]; and
12 [(i) to an alternate payee under a qualified domestic relations order, as those terms are
13 defined in Section 414(p) of the United States Internal Revenue Code of 1986, as amended; or]
14 [(ii) to amounts contributed or benefits accrued by or on behalf of a debtor within 180 days
15 before the debtor files for bankruptcy; or]
16 [(iii) to the assets of bankruptcy proceedings filed before January 1, 1989;]
17 [(k)] (xi) the interest of or any money or other assets payable to an alternate payee under
18 a qualified domestic relations order as those terms are defined in Section 414(p) of the United
19 States Internal Revenue Code of 1986, as amended.
20 (b) The exemption granted by Subsection (1)(a)(x) does not apply to:
21 (i) an alternate payee under a qualified domestic relations order, as those terms are defined
22 in Section 414(p) of the United States Internal Revenue Code of 1986, as amended; or
23 (ii) amounts contributed or benefits accrued by or on behalf of a debtor within one year
24 before the debtor files for bankruptcy.
25 (2) Exemptions under this section do not limit items which may be claimed as exempt
26 under Section 78-23-8.
27 Section 3. Section 78-23-8 is amended to read:
28 78-23-8. Value of exempt property -- Exemption of implements, professional books,
29 tools, and motor vehicle.
30 (1) An individual is entitled to exemption of the following property up to an aggregate
31 value of items in each [subparagraph] subsection of $500:

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1 (a) sofas, chairs, and related furnishings [and appliances] reasonably necessary for one
2 household;
3 (b) dining and kitchen tables and chairs reasonably necessary for one household;
4 [(b)] (c) animals, books, and musical instruments, if reasonably held for the personal use
5 of the individual or his dependents;
6 [(c) an heirloom] (d) heirlooms or other [item] items of particular sentimental value to the
7 individual[.]; and
8 (e) any other property.
9 (2) An individual is entitled to an exemption, not exceeding $3,500 in aggregate value, of
10 implements, professional books, or tools of [the] his trade [of the individual, all having an
11 aggregate value not exceeding $1,500; and one motor vehicle having a value not exceeding $1,500
12 where such motor vehicle is used for the claimant's business or profession. Business or
13 professional use of a motor vehicle does not include transportation to and from a claimant's place
14 of work or business].
15 (3) An individual is entitled to an exemption, not exceeding $2,500 in value, of one motor
16 vehicle.
17 [(3)] (4) This section does not affect property exempt under Section 78-23-5.




Legislative Review Note
as of 12-4-96 9:38 AM

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

Office of Legislative Research and General Counsel

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