Second Substitute H.B. 338

Representative John Dougall proposes the following substitute bill:

1 PROPERTY TAX EXEMPTION FOR BUSINESS
2 PERSONAL PROPERTY
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: John Dougall
6 Senate Sponsor: John W. Hickman
7
8 LONG TITLE
9 General Description:
10 This bill amends the Property Tax Act relating to exemptions for certain personal
11 property from assessment and taxation.
12 Highlighted Provisions:
13 This bill:
14 . exempts certain personal property of a taxpayer if the tangible personal property has
15 a total value of $3,500 or less;
16 . gives the State Tax Commission rulemaking authority;
17 . defines terms; and
18 . makes technical changes.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 This bill provides an effective date.
23 Utah Code Sections Affected:
24 ENACTS:
25 59-2-1115, Utah Code Annotated 1953

26
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 59-2-1115 is enacted to read:
29 59-2-1115. Exemption of certain tangible personal property.
30 (1) The taxable tangible personal property of a taxpayer is exempt from taxation if the
31 taxable tangible personal property has a total aggregate fair market value of $3,500 or less.
32 (2) (a) For calendar years beginning on or after January 1, 2008, the commission shall
33 increase the dollar amount described in Subsection (1) by a percentage equal to the percentage
34 difference between the consumer price index for the preceding calendar year and the consumer
35 price index for calendar year 2006.
36 (b) For purposes of this Subsection (2), the commission shall calculate the consumer
37 price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
38 (c) If the percentage difference under Subsection (2)(a) is zero or a negative
39 percentage, the consumer price index increase for the year is zero.
40 (3) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
41 commission may make rules to administer this section and provide for uniform
42 implementation.
43 Section 2. Effective date.
44 If the constitutional amendment proposed by H.J.R. 1, 2006 General Session is
45 approved by a majority of those voting on it at the next regular general election, this bill takes
46 effect on January 1, 2007.