This document includes Senate Committee Amendments incorporated into the bill on Wed, Feb 12, 2020 at 2:45 PM by lpoole.
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7 LONG TITLE
8 Committee Note:
9 The Revenue and Taxation Interim Committee recommended this bill.
10 Legislative Vote: 11 voting for 0 voting against 8 absent
11 General Description:
12 This bill modifies provisions relating to the tax relief commonly known as "circuit
13 breaker."
14 Highlighted Provisions:
15 This bill:
16 ▸ modifies the qualifications for circuit breaker tax relief;
17 ▸ changes the consumer price index used to adjust annual income qualifications; and
18 ▸ makes technical changes.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 This bill provides retrospective operation.
23 Utah Code Sections Affected:
24 AMENDS:
25 59-2-1202, as last amended by Laws of Utah 2019, Chapter 453
26 59-2-1203, as last amended by Laws of Utah 2001, Chapters 221 and 310
27 59-2-1206, as last amended by Laws of Utah 2001, Chapters 221 and 310
28 59-2-1208, as last amended by Laws of Utah 2018, Chapters 405 and 456
29 59-2-1209, as last amended by Laws of Utah 2018, Chapters 405 and 456
30 59-2-1220, as last amended by Laws of Utah 2001, Chapters 221 and 310
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 59-2-1202 is amended to read:
34 59-2-1202. Definitions.
35 As used in this part:
36 (1) (a) "Claimant" means a homeowner or renter who:
37 (i) files a claim under this part for a residence;
38 (ii) is domiciled in this state for the entire calendar year for which a claim for relief is
39 filed under this part; and
40 (iii) on or before the December 31 of the year for which a claim for relief is filed under
41 this part, is:
42 [
43 [
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45 [
46 January 1, 1960.
47 (b) Notwithstanding Subsection (1)(a), "claimant" includes a surviving spouse:
48 (i) regardless of:
49 (A) the age of the surviving spouse; or
50 (B) the age of the deceased spouse at the time of death;
51 (ii) if the surviving spouse meets the requirements of this part except for the age
52 requirement;
53 (iii) if the surviving spouse is part of the same household of the deceased spouse at the
54 time of death of the deceased spouse; and
55 (iv) if the surviving spouse is unmarried at the time the surviving spouse files the
56 claim.
57 (c) If two or more individuals of a household are able to meet the qualifications for a
58 claimant, they may determine among them as to who the claimant shall be, but if they are
59 unable to agree, the matter shall be referred to the county legislative body for a determination
60 of the claimant of an owned residence and to the commission for a determination of the
61 claimant of a rented residence.
62 (2) "Consumer price index housing" means the Consumer Price Index - All Urban
63 Consumers, Housing United States Cities Average, published by the Bureau of Labor Statistics
64 of the United States Department of Labor.
65 [
66 solely for the right of occupancy, at arm's-length, of a residence, exclusive of charges for any
67 utilities, services, furniture, furnishings, or personal appliances furnished by the landlord as a
68 part of the rental agreement.
69 (b) If a claimant occupies two or more residences in the year and does not own the
70 residence as of the lien date, "gross rent" means the total rent paid for the residences during the
71 one-year period for which the renter files a claim under this part.
72 (4) (a) "Homeowner" means:
73 (i) an individual whose name is listed on the deed of a residence; or
74 (ii) if a residence is owned in a qualifying trust, an individual who is a grantor, trustor,
75 or settlor or holds another similar role in the trust.
76 (b) "Homeowner" does not include:
77 (i) if a residence is owned by any type of entity other than a qualifying trust, an
78 individual who holds an ownership interest in that entity; or
79 (ii) an individual who is listed on a deed of a residence along with an entity other than
80 a qualifying trust.
81 [
82 liability.
83 [
84 same dwelling, sharing [
85 expenses.
86 [
87 (7) (a) Except as provided in Subsection (7)(b), "household income" means all income
88 received by all [
89 [
90 year in which property taxes are due; or
91 [
92 rents a residence, the year for which a claim is filed.
93 (b) "Household income" does not include income received by a member of a claimant's
94 household who is:
95 (i) under the age of 18; or
96 (ii) a parent or grandparent, through blood, marriage, or adoption, of the claimant or
97 the claimant's spouse.
98 [
99 (A) federal adjusted gross income as defined in Section 62, Internal Revenue Code;
100 and
101 (B) all nontaxable income as defined in Subsection [
102 (ii) "Income" does not include:
103 (A) aid, assistance, or contributions from a tax-exempt nongovernmental source;
104 (B) surplus foods;
105 (C) relief in kind supplied by a public or private agency; [
106 (D) relief provided under this part or Part 18, Tax Deferral and Tax Abatement[
107 (E) Social Security Disability Income payments received under the Social Security Act.
108 (b) For purposes of Subsection [
109 excluded from adjusted gross income under the Internal Revenue Code, including:
110 (i) capital gains;
111 (ii) loss carry forwards claimed during the taxable year in which a claimant files for
112 relief under this part or Part 18, Tax Deferral and Tax Abatement;
113 (iii) depreciation claimed pursuant to the Internal Revenue Code by a claimant on the
114 residence for which the claimant files for relief under this part or Part 18, Tax Deferral and Tax
115 Abatement;
116 (iv) support money received;
117 (v) nontaxable strike benefits;
118 (vi) cash public assistance or relief;
119 (vii) the gross amount of a pension or annuity, including benefits under the Railroad
120 Retirement Act of 1974, 45 U.S.C. Sec. 231 et seq., and veterans disability pensions;
121 (viii) except for payments described in Subsection (8)(a)(ii)(E), payments received
122 under the Social Security Act;
123 (ix) state unemployment insurance amounts;
124 (x) nontaxable interest received from any source;
125 (xi) workers' compensation;
126 (xii) the gross amount of "loss of time" insurance; and
127 (xiii) voluntary contributions to a tax-deferred retirement plan.
128 [
129 assessments, delinquent interest, and charges for service, levied on 35% of the fair market
130 value, as reflected on the assessment Ŝ→ [
131 (b) For a mobile home, "property taxes accrued" includes taxes imposed on both the
132 land upon which the home is situated and on the structure of the home itself, whether classified
133 as real property or personal property taxes.
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139 XIII, Section 3; and
140 [
141 (d) (i) For purposes of this Subsection [
142 the lien date.
143 (ii) If a claimant owns a residence on the lien date, property taxes accrued mean taxes
144 levied on the lien date, even if that claimant does not own a residence for the entire year.
145 (e) When a household owns and occupies two or more different residences in this state
146 in the same calendar year, property taxes accrued shall relate only to the residence occupied on
147 the lien date by the household as [
148 (f) (i) If a residence is an integral part of a large unit such as a farm or a multipurpose
149 or multidwelling building, property taxes accrued shall be [
150
151 total value of the unit.
152 (ii) For purposes of this Subsection [
153 covered by a single tax statement of which the residence is a part.
154 (10) "Qualifying trust" means a trust holding title to real or tangible personal property
155 for which an individual:
156 (a) makes a claim under this part;
157 (b) proves to the satisfaction of the county that title to the portion of the trust will
158 revest in the individual upon the exercise of a power:
159 (i) by:
160 (A) the individual as grantor, trustor, settlor, or in another similar role of the trust;
161 (B) a nonadverse party; or
162 (C) both the individual and a nonadverse party; and
163 (ii) regardless of whether the power is a power:
164 (A) to revoke;
165 (B) to terminate;
166 (C) to alter;
167 (D) to amend; or
168 (E) to appoint; and
169 (c) is obligated to pay the taxes on that portion of the trust property beginning January
170 1 of the year the individual makes the claim.
171 [
172 that:
173 (i) is made by a:
174 (A) governmental entity; [
175 (B) [
176 [
177 (ii) is specifically designated for the payment of rent of a claimant:
178 (A) for the calendar year for which the claimant seeks a renter's credit under this part;
179 and
180 (B) regardless of whether the payment is made to the:
181 (I) claimant; or
182 (II) landlord[
183 (b) [
184 the commission may make rules defining the terms:
185 (i) "governmental entity";
186 (ii) "charitable organization"; or
187 (iii) "religious organization."
188 [
189 much of the land surrounding [
190 necessary for use of the dwelling as a home[
191 (ii) "Residence" includes a dwelling that is:
192 (A) a part of a multidwelling or multipurpose building and a part of the land upon
193 which [
194 (B) a mobile home or houseboat.
195 (b) "Residence" does not include personal property such as furniture, furnishings, or
196 appliances.
197 (c) For purposes of this Subsection [
198 under a land contract or one or more joint tenants or tenants in common.
199 Section 2. Section 59-2-1203 is amended to read:
200 59-2-1203. Right to file claim -- Death of claimant.
201 (1) (a) The right to file a claim under this part is personal to the claimant.
202 (b) The right to file a claim does not survive the claimant's death.
203 (c) The right to file a claim may be exercised on behalf of a claimant by:
204 (i) a legal guardian of the claimant; or
205 (ii) an attorney-in-fact of the claimant.
206 (2) (a) If a claimant dies after having filed a timely claim, the amount of the claim shall
207 be disbursed to another member of the household as determined by the commission by rule.
208 (b) If the claimant described in Subsection (2)(a) was the only member of the
209 household, the claim may be paid to the executor or administrator, except that if neither an
210 executor or administrator is appointed and qualified within two years of the filing of the claim,
211 the amount of the claim shall escheat to the state.
212 (3) If the claimant is the grantor [
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214 qualifying trust and the claimant meets the requirements of this part, the claimant may claim
215 the portion of the credit and be treated as the owner of that portion of the property held in trust
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232 (4) The [
233 addition to any other exemption or reduction for which a homeowner may be eligible,
234 including the homeowner's credit provided for in Section 59-2-1206.
235 Section 3. Section 59-2-1206 is amended to read:
236 59-2-1206. Application for homeowner's credit -- Time for filing -- Payment from
237 General Fund.
238 (1) (a) A claimant applying for a homeowner's credit shall file annually [
239 application for the credit with the county before September 1.
240 (b) The application under this section shall:
241 (i) be on forms provided by:
242 (A) the commission; or
243 (B) the county in which the applicant resides; and
244 (ii) include a household income statement signed by the claimant stating that:
245 (A) the income statement is correct; and
246 (B) the claimant qualifies for the credit.
247 (c) (i) Subject to Subsection (1)(c)(ii), a county shall apply the credit in accordance
248 with this section and Section 59-2-1207 for the year in which the claimant applies for a
249 homeowner's credit if the claimant meets the criteria for obtaining a homeowner's credit as
250 provided in this part.
251 (ii) A homeowner's credit under this part may not exceed the claimant's property tax
252 liability for the year in which the claimant applies for a homeowner's credit under this part.
253 (d) A claimant may qualify for a homeowner's credit under this part regardless of
254 whether the claimant owes delinquent property taxes.
255 (2) (a) (i) The county shall compile a list of claimants and the homeowner's credits
256 granted to the claimants for purposes of obtaining payment from the General Fund for the
257 amount of credits granted.
258 (ii) A county may not obtain payment from the General Fund for the amount described
259 in Subsection 59-2-1202[
260 (b) Upon certification by the commission the payment for the credits under this
261 Subsection (2) shall be made to the county on or before January 1 if the list of claimants and
262 the credits granted are received by the commission on or before November 30 of the year in
263 which the credits under this part are granted.
264 (c) If the commission does not receive the list under this Subsection (2) on or before
265 November 30, payment shall be made within 30 days of receipt of the list of claimants and
266 credits from the county.
267 Section 4. Section 59-2-1208 is amended to read:
268 59-2-1208. Amount of homeowner's credit -- Cost-of-living adjustment --
269 Limitation -- General Fund as source of credit.
270 (1) (a) Subject to Subsections (2) and (4), for a calendar year beginning on or after
271 January 1, [
272 following amounts:
273 | If household income is | Homeowner's credit | ||
274 | $0 -- [ | [ | ||
275 | [ $18,493 | [ | ||
276 | [ $22,364 | [ | ||
277 | [ $26,236 | [ | ||
278 | [ $30,111 | [ | ||
279 | [ $33,754 | [ | ||
280 | [ $37,173 | [ |
282 commission shall increase or decrease the household income eligibility amounts and the credits
283 under Subsection (1)(a) by a percentage equal to the percentage difference between the
284 consumer price index housing for the preceding calendar year and the consumer price index
285 housing for calendar year [
286 [
287
288 (2) An individual may not receive the homeowner's credit under this section if:
289 (a) the individual is claimed as a personal exemption on another individual's federal
290 income tax return during any portion of a calendar year for which the individual seeks to claim
291 the homeowner's credit under this section; or
292 (b) the individual is a dependent with respect to whom another individual claims a tax
293 credit under Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for
294 which the individual seeks to claim the homeowner's credit under this section.
295 (3) A payment for a homeowner's credit allowed by this section, and provided for in
296 Section 59-2-1204, shall be paid from the General Fund.
297 (4) For a calendar year that begins on or after January 1, 2018, after the commission
298 has adjusted the homeowner credit amount under Subsection (1)(b), the commission shall
299 increase each homeowner credit amount under Subsection (1) by the following amounts:
300 (a) for a calendar year that begins on January 1, 2018, $14;
301 (b) for a calendar year that begins on January 1, 2019, $22;
302 (c) for a calendar year that begins on January 1, 2020, $31;
303 (d) for a calendar year that begins on January 1, 2021, $40; and
304 (e) for a calendar year that begins on or after January 1, 2022, $49.
305 Section 5. Section 59-2-1209 is amended to read:
306 59-2-1209. Amount of renter's credit -- Cost-of-living adjustment -- Renter's
307 credit may be claimed only for rent that does not constitute a rental assistance payment --
308 Limitation -- General Fund as source of credit -- Maximum credit.
309 (1) (a) Subject to Subsections (2) and (3), for a calendar year beginning on or after
310 January 1, [
311 that does not exceed the following amounts:
312 | If household income is | Percentage of rent allowed as a credit | ||
313 | $0 -- [ | 9.5% | ||
314 | [ $18,493 | 8.5% | ||
315 | [ $22,364 | 7.0% | ||
316 | [ $26,236 | 5.5% | ||
317 | [ $30,111 | 4.0% | ||
318 | [ $33,754 | 3.0% | ||
319 | [ $37,173 | 2.5% |
321 commission shall increase or decrease the household income eligibility amounts under
322 Subsection (1)(a) by a percentage equal to the percentage difference between the consumer
323 price index housing for the preceding calendar year and the consumer price index housing for
324 calendar year [
325 [
326
327 (2) A claimant may claim a renter's credit under this part only for rent that does not
328 constitute a rental assistance payment.
329 (3) An individual may not receive the renter's credit under this section if the individual
330 is:
331 (a) claimed as a personal exemption on another individual's federal income tax return
332 during any portion of a calendar year for which the individual seeks to claim the renter's credit
333 under this section; or
334 (b) a dependent with respect to whom another individual claims a tax credit under
335 Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for which the
336 individual seeks to claim the renter's credit under this section.
337 (4) A payment for a renter's credit allowed by this section, and provided for in Section
338 59-2-1204, shall be paid from the General Fund.
339 (5) [
340 section may not exceed the maximum amount allowed as a homeowner's credit for each
341 income bracket under Subsection 59-2-1208(1)(a).
342 Section 6. Section 59-2-1220 is amended to read:
343 59-2-1220. Extension of time for filing claim -- County authority to make refunds.
344 (1) The commission or a county may extend the time for filing a claim until December
345 31 of the year the claim is required to be filed, if the commission or county finds that good
346 cause exists to extend the deadline.
347 (2) (a) For purposes of this Subsection (2):
348 (i) "Abatement" means the amount of property taxes accrued that constitutes a tax
349 abatement for the poor in accordance with Subsection 59-2-1202[
350 (ii) "Credit" means a homeowner's credit or renter's credit authorized by this part.
351 (iii) "Property taxes due" means the taxes due on a claimant's property:
352 (A) for which an abatement or a credit is granted by a county or the commission; and
353 (B) for the calendar year for which the abatement or credit is granted.
354 (iv) "Property taxes paid" is an amount equal to the sum of:
355 (A) the amount of the property taxes [
356 the claimant is applying for the abatement or credit; and
357 (B) the amount of the abatement or credit the county or the commission grants.
358 (b) A county or the commission granting an abatement or a credit to a claimant shall
359 refund to that claimant an amount equal to the amount by which the claimant's property taxes
360 paid exceed the claimant's property taxes due, if that amount is $1 or more.
361 Section 7. Retrospective operation.
362 This bill has retrospective operation to January 1, 2020.