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First Substitute H.B. 41

Representative Patrick Painter proposes the following substitute bill:





Chief Sponsor: Patrick Painter

Senate Sponsor: Curtis S. Bramble

             8      LONG TITLE
             9      General Description:
             10          This bill adjusts a property tax exemption for business personal property.
             11      Highlighted Provisions:
             12          This bill:
             13          .    increases a property tax exemption for business personal property; and
             14          .    makes technical and conforming changes.
             15      Money Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          This bill takes effect on January 1, 2013.
             19      Utah Code Sections Affected:
             20      AMENDS:
             21          59-2-1115, as last amended by Laws of Utah 2008, Chapters 61 and 382
             23      Be it enacted by the Legislature of the state of Utah:
             24          Section 1. Section 59-2-1115 is amended to read:
             25           59-2-1115. Exemption of certain tangible personal property.

             26          (1) For purposes of this section:
             27          (a) (i) "Acquisition cost" means all costs required to put an item of tangible personal
             28      property into service; and
             29          (ii) includes:
             30          (A) the purchase price for a new or used item;
             31          (B) the cost of freight and shipping;
             32          (C) the cost of installation, engineering, erection, or assembly; and
             33          (D) sales and use taxes.
             34          (b) (i) "Item of taxable tangible personal property" does not include an improvement to
             35      real property or a part that will become an improvement.
             36          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             37      commission may make rules defining the term "item of taxable tangible personal property."
             38          (c) (i) "Taxable tangible personal property" means tangible personal property that is
             39      subject to taxation under this chapter.
             40          (ii) "Taxable tangible personal property" does not include:
             41          (A) tangible personal property required by law to be registered with the state before it
             42      is used:
             43          (I) on a public highway;
             44          (II) on a public waterway;
             45          (III) on public land; or
             46          (IV) in the air;
             47          (B) a mobile home as defined in Section 41-1a-102 ; or
             48          (C) a manufactured home as defined in Section 41-1a-102 .
             49          (2) (a) The taxable tangible personal property of a taxpayer is exempt from taxation if
             50      the taxable tangible personal property has a total aggregate fair market value per county of
             51      [$3,500] $15,000 or less.
             52          (b) [An] In addition to the exemption under Subsection (2)(a), an item of taxable
             53      tangible personal property is exempt from taxation if the item of taxable tangible personal
             54      property:
             55          (i) has an acquisition cost of $1,000 or less;
             56          (ii) has reached a percent good of 15% or less according to a personal property

             57      schedule:
             58          (A) published by the commission pursuant to Section 59-2-107 ; or
             59          (B) for an item of personal property that is designated as expensed personal property in
             60      accordance with Section 59-2-108 , described in Section 59-2-108 ; and
             61          (iii) is in a personal property schedule with a residual value of 15% or less.
             62          (3) (a) For calendar years beginning on or after January 1, [2008] 2014, the
             63      commission shall increase the dollar amount described in Subsection (2)(a):
             64          (i) by a percentage equal to the percentage difference between the consumer price
             65      index for the preceding calendar year and the consumer price index for calendar year [2006]
             66      2012; and
             67          (ii) up to the nearest $100 increment.
             68          (b) For purposes of this Subsection(3), the commission shall calculate the consumer
             69      price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
             70          (c) If the percentage difference under Subsection(3)(a)(i) is zero or a negative
             71      percentage, the consumer price index increase for the year is zero.
             72          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             73      commission may make rules to administer this section and provide for uniform
             74      implementation.
             75          Section 2. Effective date.
             76          This bill takes effect on January 1, 2013.

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