Second Substitute S.B. 151

Senator Craig A. Peterson proposes to substitute the following bill:

1 PROPERTY TAX EXEMPTION FOR DISABLED VETERANS
2 1998 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Craig A. Peterson
5 AN ACT RELATING TO THE PROPERTY TAX ACT; REPEALING THE MAXIMUM
6 INCOME LIMIT FOR ELIGIBILITY FOR PURPOSES OF THE DISABLED VETERANS'
7 PROPERTY TAX EXEMPTION; MODIFYING THE DISABLED VETERAN'S PROPERTY
8 TAX EXEMPTION TO APPLY ONLY TO A RESIDENCE; INCREASING THE AMOUNT
9 OF TAXABLE VALUE THAT IS EXEMPT UNDER THE DISABLED VETERANS'
10 PROPERTY TAX EXEMPTION; MODIFYING THE PROVISION DISALLOWING AN
11 EXEMPTION FOR VETERANS THAT ARE LESS THAN 25% DISABLED; MAKING
12 TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
13 This act affects sections of Utah Code Annotated 1953 as follows:
14 AMENDS:
15 59-2-1104, as repealed and reenacted by Chapter 3, Laws of Utah 1988
16 59-2-1105, as last amended by Chapters 87 and 256, Laws of Utah 1996
17 Be it enacted by the Legislature of the state of Utah:
18 Section 1. Section 59-2-1104 is amended to read:
19 59-2-1104. Exemption of property owned by disabled veterans or their unremarried
20 surviving spouses and minor orphans -- Amount of exemption.
21 (1) As used in this section "residence" is as defined in Section 59-2-1202, except that the
22 term "residence" does not include a rented dwelling.
23 (2) The first [$30,000] $82,500 of taxable value of [the real and tangible personal property
24 located] a residence in this state [which is owned by any of the following persons] is exempt from

1 taxation, subject to the conditions and limitations of Section 59-2-1105, if the residence is owned
2 by:
3 [(1) disabled persons] (a) a person:
4 (i) who served in the military service of the United States or of this state in any armed
5 conflict prior to January 1, 1921; and
6 (ii) is disabled;
7 [(2) persons] (b) a person who [are] is disabled [as a result of serving in the military
8 service] in the line of duty during any war, international conflict, or military training in the military
9 service of the United States or of this state [subsequent to 1920; and] on or after January 1, 1921;
10 or
11 [(3)] (c) the unremarried surviving spouse and minor orphans of any person described in
12 Subsection (1) or (2), or of a person who [died as a result of service in the military service of the
13 United States or of this state], during any war, international conflict, or military training in the
14 military service of the United States or of this state, were killed in action or died in the line of duty
15 as a result of the military service.
16 Section 2. Section 59-2-1105 is amended to read:
17 59-2-1105. Application for disabled veteran's exemption -- Proof requirements and
18 limitations.
19 (1) (a) The exemptions authorized by Section 59-2-1104 may be allowed only if the
20 interest of the claimant is on record on January 1 of the year the exemption is claimed.
21 (b) If the claimant has an interest in real property under a contract, the exemption may be
22 allowed if it is proved to the satisfaction of the county legislative body that the claimant is the
23 purchaser under the contract and is obligated to pay the taxes on the property beginning January
24 1 of that year.
25 (2) (a) On or before September 1 each year, any person applying for a veteran's exemption
26 shall file an application with the county legislative body of the county in which that person resides.
27 (b) A copy of the veteran's certificate of discharge from the military service of the United
28 States or of this state, or other satisfactory evidence of eligible military service, shall accompany
29 the initial application for exemption.
30 (3) If the application is made by a veteran who served in the military of the United States
31 or of this state prior to January 1, 1921, or by the unremarried surviving spouse or minor orphan

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1 of that veteran, a certificate from the Department of Veterans Affairs or from any other source
2 required by the county legislative body showing the percentage of disability of the veteran shall
3 accompany the application.
4 (4) Any application made by a veteran who served in the military service of the United
5 States or of this state on or after [the year 1920] January 1, 1921 or by the unremarried surviving
6 spouse or minor orphan of that veteran, shall be accompanied by[: (a)] a certificate from the
7 Department of Veterans Affairs, or from any other source required by the county legislative body,
8 showing the percentage of disability incurred or aggravated [as the result of] in the line of duty
9 during any war, international conflict, or military training in the military service[; and] of the
10 United States or of this state.
11 [(b) an affidavit by or on behalf of the person claiming the exemption that the veteran, an
12 unremarried surviving spouse, or unremarried surviving spouse and minor children together, or
13 the orphaned minor children, had a federal adjusted gross income, as defined by Section 62,
14 Internal Revenue Code, minus income included in federal adjusted gross income from a disability
15 compensation granted because the veteran served in the armed forces of the United States or of the
16 state, of less than $30,000 for the previous year.]
17 (5) (a) If the veteran is 100% disabled, the full [$30,000] $82,500 exemption is allowed
18 as provided in Section 59-2-1104.
19 (b) If the certificate under this section shows a lesser percentage of disability, the
20 exemption allowed as provided in Section 59-2-1104 is that percentage of [$30,000,] $82,500,
21 except that no exemption is allowed for any disability below [25%] 10%.
22 (6) The unremarried surviving spouse and minor orphans of a deceased veteran are entitled
23 to the greater of:
24 (a) the full exemption if the veteran's disability was [25%] 10% or more and the veteran
25 served prior to January 1, 1921; or
26 (b) the same exemption to which the disabled veteran would have been entitled, if the
27 veteran served on or after [1920] January 1, 1921.
28 (7) The county legislative body may adopt rules to effectuate the exemptions from taxation
29 under Section 59-2-1104.
30 Section 3. Effective date.
31 This act takes effect on January 1, 1999.

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