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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


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