1     
PERSONAL PROPERTY TAX AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Johnny Anderson

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill addresses a property tax exemption for certain tangible personal property.
10     Highlighted Provisions:
11          This bill:
12          ▸     addresses a property tax exemption for certain tangible personal property;
13          ▸     addresses State Tax Commission rulemaking authority; and
14          ▸     makes technical and conforming changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          This bill provides a special effective date.
19     Utah Code Sections Affected:
20     AMENDS:
21          59-2-1115, as last amended by Laws of Utah 2013, Chapters 19 and 147
22     REPEALS:
23          59-2-108, as last amended by Laws of Utah 2013, Chapter 248
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 59-2-1115 is amended to read:
27          59-2-1115. Exemption of certain tangible personal property.
28          (1) [For purposes of] As used in this section:
29          (a) (i) "Acquisition cost" means all costs required to put an item of tangible personal
30     property into service; and
31          (ii) includes:
32          (A) the purchase price for a new or used item;
33          (B) the cost of freight and shipping;
34          (C) the cost of installation, engineering, erection, or assembly; and
35          (D) sales and use taxes.
36          (b) (i) "Item of taxable tangible personal property" does not include an improvement to
37     real property or a part that will become an improvement.
38          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
39     commission may make rules defining the term "item of taxable tangible personal property."
40          (c) (i) "Taxable tangible personal property" means tangible personal property that is
41     subject to taxation under this chapter.
42          (ii) "Taxable tangible personal property" does not include:
43          (A) tangible personal property required by law to be registered with the state before it
44     is used:
45          (I) on a public highway;
46          (II) on a public waterway;
47          (III) on public land; or
48          (IV) in the air;
49          (B) a mobile home as defined in Section 41-1a-102; or
50          (C) a manufactured home as defined in Section 41-1a-102.
51          (2) (a) The taxable tangible personal property of a taxpayer is exempt from taxation if
52     the taxable tangible personal property has a total aggregate taxable value per county of $10,000
53     or less.
54          (b) In addition to the exemption under Subsection (2)(a), an item of taxable tangible
55     personal property[, except for an item of noncapitalized personal property as defined in Section
56     59-2-108,] is exempt from taxation if the item of taxable tangible personal property[:(i)] has an
57     acquisition cost of $1,000 or less[;].
58          [(ii) has reached a percent good of 15% or less according to a personal property
59     schedule published by the commission pursuant to Section 59-2-107; and]
60          [(iii) is in a personal property schedule with a residual value of 15% or less.]
61          (3) (a) For calendar years beginning on or after January 1, 2015, the commission shall
62     increase the dollar amount described in Subsection (2)(a):
63          (i) by a percentage equal to the percentage difference between the consumer price
64     index for the preceding calendar year and the consumer price index for calendar year 2013; and
65          (ii) up to the nearest $100 increment.
66          (b) For purposes of this Subsection (3), the commission shall calculate the consumer
67     price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
68          (c) If the percentage difference under Subsection (3)(a)(i) is zero or a negative
69     percentage, the consumer price index increase for the year is zero.
70          (4) (a) For the first calendar year in which a taxpayer qualifies for an exemption
71     described in Subsection (2), a county assessor may require the taxpayer to file a signed
72     statement described in Section 59-2-306.
73          (b) Notwithstanding Section 59-2-306 and subject to Subsection (5), for a calendar
74     year in which a taxpayer qualifies for an exemption described in Subsection (2) after the
75     calendar year described in Subsection (4)(a), a signed statement described in Section 59-2-306
76     with respect to the taxable tangible personal property that is exempt under Subsection (2) may
77     only require the taxpayer to certify, under penalty of perjury, that the taxpayer qualifies for the
78     exemption under Subsection (2).
79          (5) A signed statement with respect to qualifying exempt primary residential rental
80     personal property is as provided in Section 59-2-103.5.
81          (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
82     commission may make rules to administer this section and provide for uniform
83     implementation.
84          Section 2. Repealer.
85          This bill repeals:
86          Section 59-2-108, Election for assessment and taxation of noncapitalized personal
87     property according to a schedule.
88          Section 3. Effective date.
89          This bill takes effect on January 1, 2016.




Legislative Review Note
     as of 2-11-15 4:02 PM

Office of Legislative Research and General Counsel