1     
TAX RELIEF AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Travis M. Seegmiller

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to property tax relief.
10     Highlighted Provisions:
11          This bill:
12          ▸     increases the household income threshold to qualify for a homeowner's or renter's
13     credit;
14          ▸     increases the maximum amount of a homeowner's or renter's credit; and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          This bill provides a special effective date.
20          This bill provides a coordination clause.
21     Utah Code Sections Affected:
22     AMENDS:
23          59-2-1208, as last amended by Laws of Utah 2018, Chapters 405 and 456
24          59-2-1209, as last amended by Laws of Utah 2018, Chapters 405 and 456
25     Utah Code Sections Affected by Coordination Clause:
26          59-2-1803, Utah Code Annotated 1953
27     

28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 59-2-1208 is amended to read:
30          59-2-1208. Amount of homeowner's credit -- Cost-of-living adjustment --
31     Limitation -- General Fund as source of credit.
32          (1) (a) Subject to [Subsections (2) and (4)] Subsection (2), for a calendar year
33     beginning on or after January 1, [2007] 2020, a claimant whose household income is equal to
34     or less than $52,260 may claim a homeowner's credit [that does not exceed the following
35     amounts:] of $1,797, adjusted in accordance with Subsection (1)(b).
36      [If household income is][Homeowner's credit]
37      [$0 -- $9,159][$798]
38      [$9,160 -- $12,214][$696]
39      [$12,215 -- $15,266][$597]
40      [$15,267 -- $18,319][$447]
41      [$18,320 -- $21,374][$348]
42      [$21,375 -- $24,246][$199]
43      [$24,247 -- $26,941][$98]
44          (b) A credit allowed under Subsection (1)(a) shall decrease by $0.04 for each dollar
45     that a claimant's household income exceeds $9,799.
46          [(b)] (c) (i) For a calendar year beginning on or after January 1, [2008] 2021, the
47     commission shall increase or decrease the household income eligibility [amounts and the
48     credits] threshold amount and credit under Subsection (1)(a) and the household income
49     threshold under Subsection (1)(b) by a percentage equal to the percentage difference between
50     the consumer price index for the preceding calendar year and the consumer price index for
51     calendar year [2006] 2020.
52          (ii) For purposes of Subsection [(1)(b)(i)] (1)(c)(i), the commission shall calculate the
53     consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
54          (2) An individual may not receive the homeowner's credit under this section if:
55          (a) the individual is claimed as a personal exemption on another individual's federal
56     income tax return during any portion of a calendar year for which the individual seeks to claim
57     the homeowner's credit under this section; or
58          (b) the individual is a dependent with respect to whom another individual claims a tax
59     credit under Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for
60     which the individual seeks to claim the homeowner's credit under this section.
61          (3) A payment for a homeowner's credit allowed by this section, and provided for in
62     Section 59-2-1204, shall be paid from the General Fund.
63          [(4) For a calendar year that begins on or after January 1, 2018, after the commission
64     has adjusted the homeowner credit amount under Subsection (1)(b), the commission shall
65     increase each homeowner credit amount under Subsection (1) by the following amounts:]
66          [(a) for a calendar year that begins on January 1, 2018, $14;]
67          [(b) for a calendar year that begins on January 1, 2019, $22;]
68          [(c) for a calendar year that begins on January 1, 2020, $31;]
69          [(d) for a calendar year that begins on January 1, 2021, $40; and]
70          [(e) for a calendar year that begins on or after January 1, 2022, $49.]
71          Section 2. Section 59-2-1209 is amended to read:
72          59-2-1209. Amount of renter's credit -- Cost-of-living adjustment -- Renter's
73     credit may be claimed only for rent that does not constitute a rental assistance payment --
74     Limitation -- General Fund as source of credit -- Maximum credit.
75          (1) (a) Subject to Subsections (2) and (3), for a calendar year beginning on or after
76     January 1, [2007] 2020, a claimant whose household income is equal to or less than $52,260
77     may claim a renter's credit [for the previous calendar year that does not exceed the following
78     amounts:] equal to 15% of the claimant's rent paid during the previous calendar year, adjusted
79     in accordance with Subsection (1)(b).
80      [If household income is][Percentage of rent                                    allowed as a
credit]
81      [$0 -- $9,159][9.5%]
82      [$9,160 -- $12,214][8.5%]
83      [$12,215 -- $15,266][7.0%]
84      [$15,267 -- $18,319][5.5%]
85      [$18,320 -- $21,374][4.0%]
86      [$21,375 -- $24,246][3.0%]
87      [$24,247 -- $26,941][2.5%]
88          (b) A credit allowed under Subsection (1)(a) shall decrease by 0.03% for each dollar
89     that a claimant's household income exceeds $9,799.
90          [(b)] (c) (i) For a calendar year beginning on or after January 1, [2008] 2021, the
91     commission shall increase or decrease the household income eligibility [amounts] thresholds
92     under [Subsection (1)(a)] Subsections (1)(a) and (b) by a percentage equal to the percentage
93     difference between the consumer price index for the preceding calendar year and the consumer
94     price index for calendar year [2006] 2020.
95          (ii) For purposes of Subsection [(1)(b)(i)] (1)(c)(i), the commission shall calculate the
96     consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
97          (2) A claimant may claim a renter's credit under this part only for rent that does not
98     constitute a rental assistance payment.
99          (3) An individual may not receive the renter's credit under this section if the individual
100     is:
101          (a) claimed as a personal exemption on another individual's federal income tax return
102     during any portion of a calendar year for which the individual seeks to claim the renter's credit
103     under this section; or
104          (b) a dependent with respect to whom another individual claims a tax credit under
105     Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for which the
106     individual seeks to claim the renter's credit under this section.
107          (4) A payment for a renter's credit allowed by this section, and provided for in Section
108     59-2-1204, shall be paid from the General Fund.
109          (5) For calendar years beginning on or after January 1, 2007, a credit under this section
110     may not exceed the maximum amount allowed as a homeowner's credit for [each income
111     bracket] the claimant's household income under Subsection 59-2-1208(1)[(a)].
112          Section 3. Effective date.
113          This bill takes effect on January 1, 2020.
114          Section 4. Coordinating H.B. 497 with H.B. 24 -- Substantive amendment.
115          If this H.B. 497 and H.B. 24, Property Tax Exemptions, Deferrals, and Abatements
116     Amendments, both pass and become law, it is the intent of the Legislature that the Office of
117     Legislative Research and General Counsel shall prepare the Utah Code database for publication
118     by replacing the word "bracket" in Subsection 59-2-1803(1)(a) with "threshold".