H.B. 306

1

PROPERTY TAX RELIEF
2 2004 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: LaVar Christensen
5
6 LONG TITLE
7 General Description:
8 This bill amends the Property Tax Act.
9 Highlighted Provisions:
10 This bill:
11 . modifies the income eligibility amounts and credit amounts for the homeowner's
12 credit and renter's credit;
13 . requires the State Tax Commission to make certain adjustments to the income
14 eligibility and credit amounts for purposes of the homeowner's credit and to the
15 income eligibility amounts for purposes of the renter's credit; and
16 . makes technical changes.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill takes effect on January 1, 2005.
21 Utah Code Sections Affected:
22 AMENDS:
23 59-2-1208, as last amended by Chapter 272, Laws of Utah 2003
24 59-2-1209, as last amended by Chapter 272, Laws of Utah 2003
25
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 59-2-1208 is amended to read:

28 59-2-1208. Amount of homeowner's credit -- Cost-of-living adjustment --
29 Limitation -- General Fund as source of credit.
30 (1) (a) Subject to Subsection (2), for calendar years beginning on or after January 1,
31 [1998] 2005, a claimant may claim a homeowner's credit that does not exceed the following
32 amounts:
33 If household income is Homeowner's credit
34 $0 -- [$7,358] $8,557 [$577] $892
35 [$7,359] $8,558 -- [$9,812] $11,410 [$504] $778
36 [$9,813] $11,411 -- [$12,264] $14,262 [$432] $668
37 [$12,265] $14,263 -- [$14,717] $17,114 [$324] $500
38 [$14,718] $17,115 -- [$17,171] $19,968 [$252] $389
39 [$17,172] $19,969 -- [$19,479] $22,652 [$144] $223
40 [$19,480] $22,653 -- [$21,644] $25,170 [$71] $109
41 (b) (i) For the calendar year beginning on January 1, 2005 only, for a household income
42 amount listed under Subsection (1)(a), the commission shall:
43 (A) determine for the household income amount listed under Subsection (1)(a) the
44 corresponding household income amount that was in effect for calendar year 2004;
45 (B) after making the determination required by Subsection (1)(b)(i)(A), calculate an
46 amount determined by increasing or decreasing the household income amount described in
47 Subsection (1)(b)(i)(A) that was in effect for calendar year 2004, by a percentage equal to the
48 percentage difference between the consumer price index for 2004 and the consumer price index
49 for calendar year 2003; and
50 (C) after making the calculation required by Subsection (1)(b)(i)(B), if the household
51 income amount listed under Subsection (1)(a) is:
52 (I) greater than the amount calculated under Subsection (1)(b)(i)(B), decrease the
53 household income amount listed under Subsection (1)(a) by the amount by which the
54 household income amount listed under Subsection (1)(a) exceeds the amount calculated under
55 Subsection (1)(b)(i)(B); or
56 (II) less than the amount calculated under Subsection (1)(b)(i)(B), increase the
57 household income amount listed under Subsection (1)(a) by the amount by which the amount
58 calculated under Subsection (1)(b)(i)(B) exceeds the household income amount listed under

59 Subsection (1)(a).
60 [(b) (i) For] (ii) (A) Subject to Subsection (1)(b)(ii)(B), for calendar years beginning
61 on or after January 1, [1999] 2006, the commission shall increase or decrease the household
62 income [eligibility] amounts and the credits under Subsection (1)(a) by a percentage equal to
63 the percentage difference between the consumer price index for the preceding calendar year
64 and the consumer price index for calendar year [1997] 2004.
65 (B) If the commission increases or decreases a household income amount in
66 accordance with Subsection (1)(b)(i)(C), the commission shall make the increase or decrease
67 required by Subsection (1)(b)(ii)(A) to the household income amount determined under
68 Subsection (1)(b)(i)(C).
69 [(ii)] (iii) For purposes of [Subsection] Subsections (1)(b)(i) and (ii), the commission
70 shall calculate the consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal
71 Revenue Code.
72 (2) An individual who is claimed as a personal exemption on another individual's
73 individual income tax return during any portion of a calendar year for which the individual
74 seeks to claim a homeowner's credit under this section may not receive the homeowner's credit.
75 (3) The homeowner's credit allowed by this section, and provided for in Section
76 59-2-1204 , shall be derived from the General Fund and appropriate transfers made to effectuate
77 this credit.
78 Section 2. Section 59-2-1209 is amended to read:
79 59-2-1209. Amount of renter's credit -- Cost-of-living adjustment -- Limitation --
80 General Fund as source of credit -- Maximum credit -- Renter's credit may be claimed
81 only for rent that does not constitute a rental assistance payment.
82 (1) (a) Subject to Subsections (2) and (3), for [any calendar year] for calendar years
83 beginning on or after January 1, 2005, a claimant may claim a renter's credit for the previous
84 calendar year that does not exceed the following amounts:
85 If household income is Percentage of rent
86 allowed as a credit
87 $0 -- [$7,358] $8,557 [9.5%] 13.5%
88 [$7,359] $8,558 -- [$9,812] $11,410 [8.5%] 12%
89 [$9,813] $11,411 -- [$12,264] $14,262 [7.0%] 10%

90 [$12,265] $14,263 -- [$14,717] $17,114 [5.5%] 7.5%
91 [$14,718] $17,115 -- [$17,171] $19,968 [4.0%] 5.5%
92 [$17,172] $19,969 -- [$19,479] $22,652 [3.0%] 4%
93 [$19,480] $22,653 -- [$21,644] $25,170 [2.5%] 3.5%
94 (b) (i) For the calendar year beginning on January 1, 2005 only, for a household income
95 amount listed under Subsection (1)(a), the commission shall:
96 (A) determine for the household income amount listed under Subsection (1)(a) the
97 corresponding household income amount that was in effect for calendar year 2004;
98 (B) after making the determination required by Subsection (1)(b)(i)(A), calculate an
99 amount determined by increasing or decreasing the household income amount described in
100 Subsection (1)(b)(i)(A) that was in effect for calendar year 2004, by a percentage equal to the
101 percentage difference between the consumer price index for 2004 and the consumer price index
102 for calendar year 2003; and
103 (C) after making the calculation required by Subsection (1)(b)(i)(B), if the household
104 income amount listed under Subsection (1)(a) is:
105 (I) greater than the amount calculated under Subsection (1)(b)(i)(B), decrease the
106 household income amount listed under Subsection (1)(a) by the amount by which the
107 household income amount listed under Subsection (1)(a) exceeds the amount calculated under
108 Subsection (1)(b)(i)(B); or
109 (II) less than the amount calculated under Subsection (1)(b)(i)(B), increase the
110 household income amount listed under Subsection (1)(a) by the amount by which the amount
111 calculated under Subsection (1)(b)(i)(B) exceeds the household income amount listed under
112 Subsection (1)(a).
113 [(b) (i)] (ii) (A) For calendar years beginning on or after January 1, [1999] 2006, the
114 commission shall increase or decrease the household income [eligibility] amounts under
115 Subsection (1)(a) by a percentage equal to the percentage difference between the consumer
116 price index for the preceding calendar year and the consumer price index for calendar year
117 [1997] 2004.
118 (B) If the commission increases or decreases a household income amount in
119 accordance with Subsection (1)(b)(i)(C), the commission shall make the increase or decrease
120 required by Subsection (1)(b)(ii)(A) to the household income amount determined under

121 Subsection (1)(b)(i)(C),
122 [(ii)] (iii) For purposes of [Subsection] Subsections (1)(b)(i) and (ii), the commission
123 shall calculate the consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal
124 Revenue Code.
125 (2) A claimant may claim a renter's credit under this part only for rent that does not
126 constitute a rental assistance payment.
127 (3) An individual who is claimed as a personal exemption on another individual's
128 individual income tax return during any portion of a calendar year for which the individual
129 seeks to claim a renter's credit under this section may not receive a renter's credit.
130 (4) The renter's credit allowed by this section, and provided for in Section 59-2-1204 ,
131 shall be derived from the General Fund and appropriate transfers made to effectuate this credit.
132 (5) For calendar years beginning on or after January 1, 1998, a credit under this section
133 may not exceed the maximum amount allowed as a homeowner's credit for each income
134 bracket under Subsection 59-2-1208 (1)(a).
135 Section 3. Effective date.
136 This bill takes effect on January 1, 2005.




Legislative Review Note
as of 2-3-04 9:16 AM

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

Office of Legislative Research and General Counsel