H.B. 359

1

PROPERTY TAX EXEMPTION FOR VETERANS
2 2006 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Mark A. Wheatley
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill amends the Property Tax Act relating to exemptions for veterans.
10 Highlighted Provisions:
11 This bill:
12 . creates a property tax exemption for certain honorably discharged veterans and their
13 unmarried surviving spouses;
14 . modifies the application process for veterans' exemptions;
15 . defines terms; and
16 . makes technical changes.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill provides a contingent effective date of January 1, 2007 if H.J.R. 5, 2006
21 General Session, is approved at the next regular general election.
22 Utah Code Sections Affected:
23 AMENDS:
24 59-2-1104, as last amended by Chapter 237, Laws of Utah 2005
25 59-2-1105, as last amended by Chapter 333, Laws of Utah 2004
26
27 Be it enacted by the Legislature of the state of Utah:

28 Section 1. Section 59-2-1104 is amended to read:
29 59-2-1104. Definitions -- Veteran's exemption -- Amount of veteran's exemption.
30 (1) As used in this section and Section 59-2-1105 :
31 (a) "adjusted taxable value limit" means:
32 (i) for the year 2005, $200,000; and
33 (ii) for each year after 2005, the amount of the adjusted taxable value limit for the
34 previous year, plus an amount calculated by multiplying the amount of the adjusted taxable
35 value limit for the previous year by the actual percent change in the consumer price index
36 during the previous calendar year;
37 (b) "claimant" means:
38 (i) a disabled veteran who files an application under Section 59-2-1105 for a veteran's
39 exemption;
40 (ii) the unmarried surviving spouse:
41 (A) of a:
42 (I) deceased disabled veteran; or
43 (II) veteran who was killed in action or died in the line of duty; and
44 (B) who files an application under Section 59-2-1105 for a veteran's exemption;
45 (iii) a minor orphan:
46 (A) of a:
47 (I) deceased disabled veteran; or
48 (II) veteran who was killed in action or died in the line of duty; and
49 (B) who files an application under Section 59-2-1105 for a veteran's exemption;
50 (iv) an honorably discharged veteran who files an application under Section 59-2-1105
51 for an honorably discharged veteran's exemption; or
52 (v) the unmarried surviving spouse:
53 (A) of a deceased honorably discharged veteran; and
54 (B) who files an application under Section 59-2-1105 for an honorably discharged
55 veteran's exemption;
56 (c) "consumer price index" is as described in Section 1(f)(4), Internal Revenue Code,
57 and defined in Section 1(f)(5), Internal Revenue Code;
58 (d) "deceased disabled veteran" means a deceased person who was a disabled veteran

59 at the time the person died;
60 (e) "disabled veteran" means a disabled person who, during military training or a
61 military conflict, was disabled in the line of duty in the military service of the United States or
62 the state;
63 (f) "honorably discharged veteran" means:
64 (i) except as provided in Subsection (1)(f)(ii), an individual who:
65 (A) has served on active duty in the military service of the United States or the state for
66 at least 180 consecutive days; and
67 (B) has been separated or retired from the service described in Subsection (1)(f)(i)(A)
68 under honorable conditions; or
69 (ii) an individual who:
70 (A) incurs a service-related injury or disability in the line of duty whether or not that
71 person completed 180 days of active duty in the military service of the United States or the
72 state; and
73 (B) has been separated under honorable conditions;
74 (g) "honorably discharged veteran's exemption" means the property tax exemption
75 provided for in Subsection (3);
76 [(f)] (h) "military entity" means:
77 (i) the federal Department of Veterans Affairs; or
78 (ii) a component of the armed forces of:
79 (A) the United States; or
80 (B) the state;
81 [(g)] (i) "residence" is as defined in Section 59-2-1202 , except that a rented dwelling is
82 not considered to be a residence;
83 [(h)] (j) "veteran who was killed in action or died in the line of duty" means a person
84 who was killed in action or died in the line of duty in the military service of the United States
85 or the state, regardless of whether that person was disabled at the time that person was killed in
86 action or died in the line of duty; and
87 [(i)] (k) "veteran's exemption" means a property tax exemption provided for in
88 Subsection (2).
89 (2) (a) The amount of taxable value of the property described in Subsection (2)(b) is

90 exempt from taxation as calculated under Subsections (2)(c) through (e) if the property
91 described in Subsection (2)(b) is owned by:
92 (i) a disabled veteran; or
93 (ii) the unmarried surviving spouse or a minor orphan of a:
94 (A) deceased disabled veteran; or
95 (B) veteran who was killed in action or died in the line of duty.
96 (b) Subsection (2)(a) applies to the following property:
97 (i) the claimant's primary residence;
98 (ii) tangible personal property that:
99 (A) is held exclusively for personal use; and
100 (B) is not used in a trade or business; or
101 (iii) a combination of Subsections (2)(b)(i) and (ii).
102 (c) Except as provided in Subsection (2)(d) or (e), the amount of taxable value of
103 property described in Subsection (2)(b) that is exempt under Subsection (2)(a) is:
104 (i) as described in Subsection (2)(f), if the property is owned by:
105 (A) a disabled veteran;
106 (B) the unmarried surviving spouse of a deceased disabled veteran; or
107 (C) a minor orphan of a deceased disabled veteran; or
108 (ii) equal to the total taxable value of the claimant's property described in Subsection
109 (2)(b) if the property is owned by:
110 (A) the unmarried surviving spouse of a veteran who was killed in action or died in the
111 line of duty; or
112 (B) a minor orphan of a veteran who was killed in action or died in the line of duty.
113 (d) Notwithstanding Subsection (2)(c)(i), a veteran's exemption may not be allowed
114 under this Subsection (2) if the percentage of disability listed on the certificate described in
115 Subsection 59-2-1105 (3)(a) is less than 10%.
116 (e) Notwithstanding Subsection (2)(c)(i), a claimant who is the unmarried surviving
117 spouse or minor orphan of a deceased disabled veteran may claim a veteran's exemption for the
118 total value of the property described in Subsection (2)(b) if:
119 (i) the deceased disabled veteran served in the military service of the United States or
120 the state prior to January 1, 1921; and

121 (ii) the percentage of disability listed on the certificate described in Subsection
122 59-2-1105 (3)(a) for the deceased disabled veteran is 10% or more.
123 (f) Except as provided in Subsection (2)(g), the amount of the taxable value of the
124 property described in Subsection (2)(b) that is exempt under Subsection (2)(c)(i) is equal to the
125 percentage of disability listed on the certificate described in Subsection 59-2-1105 (3)(a)
126 multiplied by the adjusted taxable value limit.
127 (g) Notwithstanding Subsection (2)(f), the amount of the taxable value of the property
128 described in Subsection (2)(b) that is exempt under Subsection (2)(c)(i) may not be greater than
129 the taxable value of the property described in Subsection (2)(b).
130 (3) (a) The amount of taxable value of the property described in Subsection (3)(b) is
131 exempt from taxation if the property described in Subsection (3)(b) is owned by:
132 (i) an honorably discharged veteran; or
133 (ii) the unmarried surviving spouse of an honorably discharged veteran.
134 (b) The honorably discharged veteran's exemption shall:
135 (i) be calculated by exempting $4,000 from the taxable value of the claimant's primary
136 residence; and
137 (ii) be made after making any reduction required by Section 59-2-103 .
138 (c) No more than one acre of land per residential unit may qualify for the exemption.
139 (d) The exemption allowed by this Subsection (3) is limited to one primary residence
140 per claimant.
141 (e) The honorably discharged veteran's exemption may be claimed in addition to any
142 other exemption allowed by this section.
143 Section 2. Section 59-2-1105 is amended to read:
144 59-2-1105. Application for veteran's exemption -- Rulemaking authority --
145 Statement -- County authority to make refunds.
146 (1) (a) A veteran's exemption or honorably discharged veteran's exemption may be
147 allowed only if the interest of the claimant is on record on January 1 of the year the exemption
148 is claimed.
149 (b) If the claimant has an interest in real property under a contract, the veteran's
150 exemption or honorably discharged veteran's exemption may be allowed if it is proved to the
151 satisfaction of the county that the claimant is:

152 (i) the purchaser under the contract; and
153 (ii) obligated to pay the taxes on the property beginning January 1 of the year the
154 exemption is claimed.
155 (c) If the claimant is the grantor of a trust holding title to real or tangible personal
156 property on which a veteran's exemption or honorably discharged veteran's exemption is
157 claimed, the claimant may claim the portion of the veteran's exemption or honorably
158 discharged veteran's exemption under Section 59-2-1104 and be treated as the owner of that
159 portion of the property held in trust for which the claimant proves to the satisfaction of the
160 county that:
161 (i) title to the portion of the trust will revest in the claimant upon the exercise of a
162 power:
163 (A) by:
164 (I) the claimant as grantor of the trust;
165 (II) a nonadverse party; or
166 (III) both the claimant and a nonadverse party; and
167 (B) regardless of whether the power is a power:
168 (I) to revoke;
169 (II) to terminate;
170 (III) to alter;
171 (IV) to amend; or
172 (V) to appoint;
173 (ii) the claimant is obligated to pay the taxes on that portion of the trust property
174 beginning January 1 of the year the claimant claims the exemption; and
175 (iii) the claimant meets the requirements under this part for the exemption.
176 (2) (a) (i) A claimant applying for a veteran's exemption or honorably discharged
177 veteran's exemption under this section shall file an application:
178 (A) with the county in which that person resides; and
179 (B) except as provided in Subsection (2)(b), on or before September 1 of the year in
180 which that claimant is applying for the veteran's exemption or honorably discharged veteran's
181 exemption in accordance with this section.
182 (ii) A county shall provide a claimant who files an application for a veteran's

183 exemption or honorably discharged veteran's exemption in accordance with this section with a
184 receipt:
185 (A) stating that the county received the claimant's application; and
186 (B) no later than 30 days after the day on which the claimant filed the application in
187 accordance with this section.
188 (b) Notwithstanding Subsection (2)(a)(i)(B):
189 (i) subject to Subsection (2)(b)(iv), for a claimant who applies for a veteran's
190 exemption on or after January 1, 2004, or an honorably discharged veteran's exemption on or
191 after January 1, 2007, a county shall extend the deadline for filing the application required by
192 Subsection (2)(a) to September 1 of the year after the year the claimant would otherwise be
193 required to file the application under Subsection (2)(a)(i)(B) if:
194 (A) [on or after January 1, 2004,] for a veteran's exemption on or after January 1, 2004,
195 or for a honorably discharged veteran's exemption or on or after January 1, 2007, a military
196 entity issues a written decision that the:
197 (I) disabled veteran is disabled; or
198 (II) deceased disabled veteran with respect to whom the claimant applies for a veteran's
199 exemption was disabled at the time the deceased disabled veteran died; and
200 (B) the date the written decision described in Subsection (2)(b)(i)(A) takes effect is in
201 any year prior to the current calendar year;
202 (ii) subject to Subsections (2)(b)(iv) and (2)(d), for a claimant who applies for a
203 veteran's exemption on or after January 1, 2004, a county shall allow the claimant to amend the
204 application required by Subsection (2)(a) on or before September 1 of the year after the year the
205 claimant filed the application under Subsection (2)(a)(i)(B) if:
206 (A) [on or after January 1, 2004,] for a veteran's exemption on or after January 1, 2004,
207 or for a honorably discharged veteran's exemption or on or after January 1, 2007, a military
208 entity issues a written decision that the percentage of disability has changed for the:
209 (I) disabled veteran; or
210 (II) deceased disabled veteran with respect to whom the claimant applies for a veteran's
211 exemption; and
212 (B) the date the written decision described in Subsection (2)(b)(ii)(A) takes effect is in
213 any year prior to the current calendar year;

214 (iii) subject to Subsections (2)(b)(iv) and (2)(d), for a claimant who applies for a
215 veteran's exemption on or after January 1, 2004, or for a honorably discharged veteran's
216 exemption or on or after January 1, 2007, a county shall extend the deadline for filing the
217 application required by Subsection (2)(a) to September 1 of the year after the year the claimant
218 would otherwise be required to file the application under Subsection (2)(a)(i)(B) if the county
219 legislative body determines that:
220 (A) the claimant or a member of the claimant's immediate family had an illness or
221 injury that prevented the claimant from filing the application on or before the deadline for
222 filing the application established in Subsection (2)(a)(i)(B);
223 (B) a member of the claimant's immediate family died during the calendar year the
224 claimant was required to file the application under Subsection (2)(a)(i)(B);
225 (C) the claimant was not physically present in the state for a time period of at least six
226 consecutive months during the calendar year the claimant was required to file the application
227 under Subsection (2)(a)(i)(B); or
228 (D) the failure of the claimant to file the application on or before the deadline for filing
229 the application established in Subsection (2)(a)(i)(B):
230 (I) would be against equity or good conscience; and
231 (II) was beyond the reasonable control of the claimant; and
232 (iv) a county may extend the deadline for filing an application or amending an
233 application under this Subsection (2) until December 31 if the county finds that good cause
234 exists to extend the deadline.
235 (c) The following shall accompany the initial application for a veteran's exemption or
236 honorably discharged veteran's exemption:
237 (i) a copy of the veteran's certificate of discharge from the military service of:
238 (A) the United States; or
239 (B) this state; or
240 (ii) other satisfactory evidence of eligible military service.
241 (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
242 commission may by rule:
243 (i) establish procedures and requirements for amending an application under
244 Subsection (2)(b)(ii);

245 (ii) for purposes of Subsection (2)(b)(iii), define the terms:
246 (A) "immediate family"; or
247 (B) "physically present"; or
248 (iii) for purposes of Subsection (2)(b)(iii), prescribe the circumstances under which the
249 failure of a claimant to file an application on or before the deadline for filing the application
250 established in Subsection (2)(a)(i)(B):
251 (A) would be against equity or good conscience; and
252 (B) is beyond the reasonable control of a claimant.
253 (3) (a) (i) Subject to Subsection (3)(a)[(ii)](iii), a claimant who files an application for
254 a veteran's exemption shall have on file with the county a statement:
255 (A) issued by a military entity; and
256 (B) listing the percentage of disability for the disabled veteran or deceased disabled
257 veteran with respect to whom a claimant applies for a veteran's exemption.
258 (ii) Subject to Subsection (3)(a)(iii), a claimant who files an application for an
259 honorably discharged veteran's exemption on the basis of the honorably discharged veteran's
260 service-related injury or disability in the line of duty shall have on file with the county a
261 statement:
262 (A) issued by a military entity; and
263 (B) that states that the honorably discharged veteran incurred a service-related injury or
264 disability in the line of duty.
265 [(ii)] (iii) If a claimant has on file with the county the statement described in
266 Subsection (3)(a)(i) or (ii), the county may not require the claimant to file another statement
267 described in Subsection (3)(a)(i) or (ii) unless:
268 (A) the claimant who files an application under this section for a veteran's exemption
269 with respect to a deceased disabled veteran or veteran who was killed in action or died in the
270 line of duty is a person other than the claimant who filed the statement described in Subsection
271 (3)(a)(i) for a veteran's exemption:
272 (I) for the calendar year immediately preceding the current calendar year; and
273 (II) with respect to that deceased disabled veteran or veteran who was killed in action
274 or died in the line of duty; or
275 (B) the percentage of disability has changed for a:

276 (I) disabled veteran; or
277 (II) deceased disabled veteran with respect to whom the claimant applies for a veteran's
278 exemption under this section.
279 (b) For a claimant filing an application in accordance with Subsection (2)(b)(i), the
280 claimant shall include with the application required by Subsection (2) a statement issued by a
281 military entity listing the date the written decision described in Subsection (2)(b)(i)(A) takes
282 effect.
283 (c) For a claimant amending an application in accordance with Subsection (2)(b)(ii),
284 the claimant shall provide to the county a statement issued by a military entity listing the date
285 the written decision described in Subsection (2)(b)(ii)(A) takes effect.
286 (4) (a) For purposes of this Subsection (4):
287 (i) "Property taxes due" means the taxes due on a claimant's property:
288 (A) for which a veteran's exemption or honorably discharged veteran's exemption is
289 granted by a county; and
290 (B) for the calendar year for which the veteran's exemption or honorably discharged
291 veteran's exemption is granted.
292 (ii) "Property taxes paid" is an amount equal to the sum of:
293 (A) the amount of the property taxes the claimant paid for the calendar year for which
294 the claimant is applying for the veteran's exemption or honorably discharged veteran's
295 exemption; and
296 (B) the veteran's exemption or honorably discharged veteran's exemption the county
297 granted for the calendar year described in Subsection (4)(a)(ii)(A).
298 (b) A county granting a veteran's exemption or honorably discharged veteran's
299 exemption to a claimant shall refund to that claimant an amount equal to the amount by which
300 the claimant's property taxes paid exceed the claimant's property taxes due, if that amount is $1
301 or more.
302 Section 3. Effective date.
303 This bill provides a contingent effective date of January 1, 2007 if H.J.R. 5, 2006
304 General Session is approved at the next regular general election.

Legislative Review Note
as of 1-31-06 7:04 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel