7 LONG TITLE
8 General Description:
9 This bill amends provisions related to tax exemptions for tangible personal property.
10 Highlighted Provisions:
11 This bill:
12 ▸ adjusts the amount of total aggregate taxable value of personal property that
13 qualifies for a certain personal property tax exemption;
14 ▸ adds a tax exemption for certain items of business tangible personal property;
15 ▸ amends filing requirements for a person who qualifies for certain tax exemptions
16 from tangible personal property; and
17 ▸ makes technical and conforming changes.
18 Money Appropriated in this Bill:
20 Other Special Clauses:
21 This bill provides a special effective date.
22 Utah Code Sections Affected:
24 59-2-1115, as last amended by Laws of Utah 2013, Chapters 19 and 147
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 59-2-1115 is amended to read:
28 59-2-1115. Exemption of certain tangible personal property.
29 (1) For purposes of this section:
30 (a) (i) "Acquisition cost" means all costs required to put an item of tangible personal
31 property into service; and
32 (ii) includes:
33 (A) the purchase price for a new or used item;
34 (B) the cost of freight and shipping;
35 (C) the cost of installation, engineering, erection, or assembly; and
36 (D) sales and use taxes.
37 (b) (i) "Item of taxable tangible personal property" does not include an improvement to
38 real property or a part that will become an improvement.
39 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
40 commission may make rules defining the term "item of taxable tangible personal property."
41 (c) (i) "Taxable tangible personal property" means tangible personal property that is
42 subject to taxation under this chapter.
43 (ii) "Taxable tangible personal property" does not include:
44 (A) tangible personal property required by law to be registered with the state before it
45 is used:
46 (I) on a public highway;
47 (II) on a public waterway;
48 (III) on public land; or
49 (IV) in the air;
50 (B) a mobile home as defined in Section 41-1a-102; or
51 (C) a manufactured home as defined in Section 41-1a-102.
52 (2) (a) The taxable tangible personal property of a taxpayer is exempt from taxation if
53 the taxable tangible personal property has a total aggregate taxable value per county of
55 (b) In addition to the exemption under Subsection (2)(a), an item of taxable tangible
56 personal property, except for an item of noncapitalized personal property as defined in Section
57 59-2-108, is exempt from taxation if the item of taxable tangible personal property:
58 (i) has an acquisition cost of $1,000 or less;
59 (ii) has reached a percent good of 15% or less according to a personal property
60 schedule published by the commission pursuant to Section 59-2-107; and
61 (iii) is in a personal property schedule with a residual value of 15% or less.
62 (c) For an item of taxable tangible personal property that is not exempt under
63 Subsection (2)(a) or (b), the item is exempt from taxation if:
64 (i) the item is owned by a business and is not critical to the actual business operation of
65 the business; and
66 (ii) the acquisition cost of the item is less than $150.
67 (3) (a) For calendar years beginning on or after January 1, 2015, the commission shall
68 increase the dollar amount described in Subsection (2)(a):
69 (i) by a percentage equal to the percentage difference between the consumer price
70 index for the preceding calendar year and the consumer price index for calendar year 2013; and
71 (ii) up to the nearest $100 increment.
72 (b) For purposes of this Subsection (3), the commission shall calculate the consumer
73 price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
74 (c) If the percentage difference under Subsection (3)(a)(i) is zero or a negative
75 percentage, the consumer price index increase for the year is zero.
76 (4) (a) For the first calendar year in which a taxpayer qualifies for an exemption
77 described in Subsection (2)(a), a county assessor may require the taxpayer to file a signed
78 statement described in Section 59-2-306.
79 (b) Notwithstanding Section 59-2-306 and subject to Subsection (5), for a calendar
80 year in which a taxpayer qualifies for an exemption described in Subsection (2)(a) after the
81 calendar year described in Subsection (4)(a), a signed statement described in Section 59-2-306
82 with respect to the taxable tangible personal property that is exempt under Subsection (2)(a)
83 may only require the taxpayer to certify, under penalty of perjury, that the taxpayer qualifies for
84 the exemption under Subsection (2)(a).
85 (c) If a taxpayer qualifies for an exemption described in Subsection (2)(a) for five
86 consecutive years and files a signed statement for each of those years in accordance with
87 Section 59-2-306 and Subsection (4)(b), a county assessor may not require the taxpayer to file a
88 signed statement for each continuing consecutive year for which the taxpayer qualifies for the
90 (d) If a taxpayer qualifies for an exemption described in Subsection (2)(b) or (c) for an
91 item of tangible taxable personal property, a county assessor may not require the taxpayer to
92 include the item on a signed statement described in Section 59-2-306.
93 (5) A signed statement with respect to qualifying exempt primary residential rental
94 personal property is as provided in Section 59-2-103.5.
95 (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
96 commission may make rules to administer this section and provide for uniform
98 Section 2. Effective date.
99 This bill takes effect on January 1, 2020.