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 ▸ modifies the requirements for qualifying for a property tax exemption for tangible
13 personal property owned by a business; and
14 ▸ modifies the calculation of the inflation adjustment that applies to the property tax
15 exemption for tangible personal property that has an aggregate taxable value of
16 $15,000 or less.
17 Money Appropriated in this Bill:
19 Other Special Clauses:
20 This bill provides a special effective date.
21 This bill provides retrospective operation.
22 Utah Code Sections Affected:
24 59-2-1115, as last amended by Laws of Utah 2019, Chapter 463
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 $15,000
54 or less.
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) (A) the item is owned by a business and is not critical to the actual business
65 operation of the business; [
66 (B) beginning January 1, 2021, the item is owned by a business; and
67 (ii) the acquisition cost of the item is:
68 (A) less than $150[
69 (B) beginning January 1, 2021, less than $500.
70 (3) (a) For calendar years beginning on or after January 1, [
71 commission shall increase the dollar amount described in Subsection (2)(a):
72 (i) by a percentage equal to the percentage difference between the consumer price
73 index for the preceding calendar year and the consumer price index for calendar year [
74 2019; and
75 (ii) up to the nearest $100 increment.
76 (b) For purposes of this Subsection (3), the commission shall calculate the consumer
77 price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
78 (c) If the percentage difference under Subsection (3)(a)(i) is zero or a negative
79 percentage, the consumer price index increase for the year is zero.
80 (4) (a) For the first calendar year in which a taxpayer qualifies for an exemption
81 described in Subsection (2)(a), a county assessor may require the taxpayer to file a signed
82 statement described in Section 59-2-306.
83 (b) Notwithstanding Section 59-2-306 and subject to Subsection (5), for a calendar
84 year in which a taxpayer qualifies for an exemption described in Subsection (2)(a) after the
85 calendar year described in Subsection (4)(a), a signed statement described in Section 59-2-306
86 with respect to the taxable tangible personal property that is exempt under Subsection (2)(a)
87 may only require the taxpayer to certify, under penalty of perjury, that the taxpayer qualifies for
88 the exemption under Subsection (2)(a).
89 (c) If a taxpayer qualifies for an exemption described in Subsection (2)(a) for five
90 consecutive years and files a signed statement for each of those years in accordance with
91 Section 59-2-306 and Subsection (4)(b), a county assessor may not require the taxpayer to file a
92 signed statement for each continuing consecutive year for which the taxpayer qualifies for the
94 (d) If a taxpayer qualifies for an exemption described in Subsection (2)(b) or (c) for an
95 item of tangible taxable personal property, a county assessor may not require the taxpayer to
96 include the item on a signed statement described in Section 59-2-306.
97 (5) A signed statement with respect to qualifying exempt primary residential rental
98 personal property is as provided in Section 59-2-103.5.
99 (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
100 commission may make rules to administer this section and provide for uniform
102 Section 2. Effective date.
103 If approved by two-thirds of all the members elected to each house, this bill takes effect
104 upon approval by the governor, or the day following the constitutional time limit of Utah
105 Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
106 the date of veto override.
107 Section 3. Retrospective operation.
108 The actions affecting Subsection 59-2-1115(3) have retrospective operation to January
109 1, 2020.