7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to the tax relief commonly known as "circuit
11 Highlighted Provisions:
12 This bill:
13 ▸ modifies the qualifications for circuit breaker tax relief;
14 ▸ changes the consumer price index used to adjust annual income qualifications; and
15 ▸ makes technical and conforming changes.
16 Money Appropriated in this Bill:
18 Other Special Clauses:
19 This bill provides retrospective operation.
20 Utah Code Sections Affected:
22 59-2-1202, as last amended by Laws of Utah 2020, Chapter 238
23 59-2-1203, as last amended by Laws of Utah 2020, Chapter 238
24 59-2-1206, as last amended by Laws of Utah 2020, Chapter 238
25 59-2-1208, as last amended by Laws of Utah 2018, Chapters 405 and 456
26 59-2-1209, as last amended by Laws of Utah 2018, Chapters 405 and 456
27 59-2-1220, as last amended by Laws of Utah 2020, Chapter 238
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 59-2-1202 is amended to read:
31 59-2-1202. Definitions.
32 As used in this part:
33 (1) (a) "Claimant" means a homeowner or renter who:
34 (i) files a claim under this part for a residence;
35 (ii) is domiciled in this state for the entire calendar year for which a claim for relief is
36 filed under this part; and
37 (iii) on or before [
38 under this part, is:
39 (A) 66 years [
40 1959; or
41 (B) 67 years [
42 (b) Notwithstanding Subsection (1)(a), "claimant" includes a surviving spouse:
43 (i) regardless of:
44 (A) the age of the surviving spouse; or
45 (B) the age of the deceased spouse at the time of death;
46 (ii) if the surviving spouse meets the requirements of this part except for the age
48 (iii) if the surviving spouse is part of the same household of the deceased spouse at the
49 time of death of the deceased spouse; and
50 (iv) if the surviving spouse is unmarried at the time the surviving spouse files the
52 (c) If two or more individuals of a household are able to meet the qualifications for a
53 claimant, they may determine among them as to who the claimant shall be, but if they are
54 unable to agree, the matter shall be referred to the county legislative body for a determination
55 of the claimant of an owned residence and to the commission for a determination of the
56 claimant of a rented residence.
57 (2) "Consumer price index housing" means the Consumer Price Index - All Urban
58 Consumers, Housing United States Cities Average, published by the Bureau of Labor Statistics
59 of the United States Department of Labor.
61 right of occupancy, at arm's-length, of a residence, exclusive of charges for any utilities,
62 services, furniture, furnishings, or personal appliances furnished by the landlord as a part of the
63 rental agreement.
64 (b) If a claimant occupies two or more residences in the year [
66 the one-year period for which the renter files a claim under this part.
68 (i) an individual whose name is listed on the deed of a residence; or
69 (ii) if a residence is owned in a qualifying trust, an individual who is a grantor, trustor,
70 or settlor or holds another similar role in the trust.
71 (b) "Homeowner" does not include:
72 (i) if a residence is owned by any type of entity other than a qualifying trust, an
73 individual who holds an ownership interest in that entity; or
74 (ii) an individual who is listed on a deed of a residence along with an entity other than
75 a qualifying trust.
79 dwelling, sharing the dwelling's furnishings, facilities, accommodations, and expenses.
81 (7) (a) Except as provided in Subsection (7)(b), "household income" means all income
82 received by all members of a claimant's household in:
84 year in which property taxes are due; or
86 (b) "Household income" does not include income received by a member of a claimant's
87 household who is:
88 (i) under the age of 18; or
89 (ii) a parent or a grandparent, through blood, marriage, or adoption, of the claimant or
90 the claimant's spouse.
93 Code; and
101 (v) Social Security Disability Income payments received under the Social Security Act.
103 (9) "Nontaxable income" means amounts excluded from adjusted gross income under
104 the Internal Revenue Code, including:
107 for relief under this part or Part 18, Tax Deferral and Tax Abatement;
109 the residence for which the claimant files for relief under this part or Part 18, Tax Deferral and
110 Tax Abatement;
115 Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231 et seq., and veterans disability pensions;
117 under the Social Security Act;
124 assessments, delinquent interest, and charges for service, levied on 35% of the fair market
125 value, as reflected on the assessment roll, of a claimant's residence in this state.
126 (b) For a mobile home, "property taxes accrued" includes taxes imposed on both the
127 land upon which the home is situated and on the structure of the home itself, whether classified
128 as real property or personal property taxes.
129 (c) The relief described in Subsection [
130 (i) a tax abatement for the poor in accordance with Utah Constitution, Article XIII,
131 Section 3; and
132 (ii) the residential exemption provided for in Section 59-2-103.
133 (d) [
134 the lien date.
137 (e) When a household owns and occupies two or more different residences in this state
138 in the same calendar year, and neither residence is acquired or sold during the calendar year for
139 which relief is claimed under this part, property taxes accrued shall relate only to the residence
140 occupied on the lien date by the household as the household's principal place of residence.
141 (f) (i) If a residence is an integral part of a large unit such as a farm or a multipurpose
142 or multidwelling building, property taxes accrued shall be calculated on the percentage that the
143 value of the residence is of the total value of the unit.
144 (ii) For purposes of this Subsection [
145 property covered by a single tax statement of which the residence is a part.
147 property for which an individual:
148 (a) makes a claim under this part;
149 (b) proves to the satisfaction of the county that title to the portion of the trust will
150 revest in the individual upon the exercise of a power:
151 (i) by:
152 (A) the individual as grantor, trustor, settlor, or in another similar role of the trust;
153 (B) a nonadverse party; or
154 (C) both the individual and a nonadverse party; and
155 (ii) regardless of whether the power is a power:
156 (A) to revoke;
157 (B) to terminate;
158 (C) to alter;
159 (D) to amend; or
160 (E) to appoint; and
161 (c) is obligated to pay the taxes on that portion of the trust property beginning January
162 1 of the year the individual makes the claim.
164 payment that:
165 (i) is made by a:
166 (A) governmental entity;
167 (B) charitable organization; or
168 (C) religious organization; and
169 (ii) is specifically designated for the payment of rent of a claimant:
170 (A) for the calendar year for which the claimant seeks a renter's credit under this part;
172 (B) regardless of whether the payment is made to the[
175 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
176 commission may make rules defining the terms:
177 (i) "governmental entity";
178 (ii) "charitable organization"; or
179 (iii) "religious organization."
181 rented, and so much of the land surrounding the dwelling, not exceeding one acre, as is
182 reasonably necessary for use of the dwelling as a home.
183 (ii) "Residence" includes a dwelling that is:
184 (A) a part of a multidwelling or multipurpose building and a part of the land upon
185 which the multidwelling or multipurpose building is built; and
186 (B) a mobile home or houseboat.
187 (b) "Residence" does not include personal property such as furniture, furnishings, or
189 (c) For purposes of this Subsection [
190 possession under a land contract or one or more joint tenants or tenants in common.
191 Section 2. Section 59-2-1203 is amended to read:
192 59-2-1203. Right to file claim -- Death of claimant.
193 (1) (a) The right to file a claim under this part is personal to the claimant.
194 (b) The right to file a claim does not survive the claimant's death.
195 (c) The right to file a claim may be exercised on behalf of a claimant by:
196 (i) a legal guardian of the claimant; or
197 (ii) an attorney-in-fact of the claimant.
198 (2) (a) If a claimant dies after having filed a timely claim, the amount of the claim shall
199 be disbursed to another member of the household as determined by the commission by rule.
200 (b) If the claimant described in Subsection (2)(a) was the only member of the
201 household, the claim may be paid to the executor or administrator, except that if neither an
202 executor or administrator is appointed and qualified within two years of the filing of the claim,
203 the amount of the claim shall escheat to the state.
204 (3) If the claimant is the grantor, trustor, or settlor of or holds another similar role in a
205 qualifying trust and the claimant meets the requirements of this part, the claimant may claim
206 the portion of the credit and be treated as the owner of that portion of the property held in trust.
207 (4) The relief described in Subsection 59-2-1202[
208 exemption or reduction for which a homeowner may be eligible, including the homeowner's
209 credit provided for in Section 59-2-1206.
210 Section 3. Section 59-2-1206 is amended to read:
211 59-2-1206. Application for homeowner's credit -- Time for filing -- Payment from
212 General Fund.
213 (1) (a) A claimant applying for a homeowner's credit shall file annually an application
214 for the credit with the county in which the residence for which the claimant is seeking a
215 homeowner's credit is located before September 1.
216 (b) The application under this section shall:
217 (i) be on forms provided by[
218 59-2-1211; and
221 (ii) include a household income statement signed by the claimant stating that:
222 (A) the income statement is correct; and
223 (B) the claimant qualifies for the credit.
224 (c) (i) Subject to Subsection (1)(c)(ii), a county shall apply the credit in accordance
225 with this section and Section 59-2-1207 for the year in which the claimant applies for a
226 homeowner's credit if the claimant meets the criteria for obtaining a homeowner's credit as
227 provided in this part.
228 (ii) A homeowner's credit under this part may not exceed the claimant's property tax
229 liability for the residence for the year in which the claimant applies for a homeowner's credit
230 under this part.
231 (d) A claimant may qualify for a homeowner's credit under this part regardless of
232 whether the claimant owes delinquent property taxes.
233 (2) (a) (i) The county shall compile a list of claimants and the homeowner's credits
234 granted to the claimants for purposes of obtaining payment from the General Fund for the
235 amount of credits granted.
236 (ii) A county may not obtain payment from the General Fund for the amount described
237 in Subsection 59-2-1202[
238 (b) Upon certification by the commission the payment for the credits under this
239 Subsection (2) shall be made to the county on or before January 1 if the list of claimants and
240 the credits granted are received by the commission on or before November 30 of the year in
241 which the credits under this part are granted.
242 (c) If the commission does not receive the list under this Subsection (2) on or before
243 November 30, payment shall be made within 30 days of receipt of the list of claimants and
244 credits from the county.
245 Section 4. Section 59-2-1208 is amended to read:
246 59-2-1208. Amount of homeowner's credit -- Cost-of-living adjustment --
247 Limitation -- General Fund as source of credit.
248 (1) (a) Subject to Subsections (2) and (4), for a calendar year beginning on or after
249 January 1, [
250 following amounts:
|251||If household income is||Homeowner's credit|
|252||$0 -- [||[|
260 commission shall increase or decrease the household income eligibility amounts and the credits
261 under Subsection (1)(a) by a percentage equal to the percentage difference between the
262 consumer price index housing for the preceding calendar year and the consumer price index
263 housing for calendar year [
266 (2) (a) An individual may not receive the homeowner's credit under this section or the
267 tax relief described in Subsection 59-2-1202(10)(a) on 20% of the fair market value of the
268 residence if:
270 federal income tax return during any portion of a calendar year for which the individual seeks
271 to claim the homeowner's credit under this section; [
273 a tax credit under Section 24(h)(4), Internal Revenue Code, during any portion of a calendar
274 year for which the individual seeks to claim the homeowner's credit under this section[
275 (iii) the individual did not own the residence for the entire calendar year for which the
276 individual claims the homeowner's credit.
277 (b) For a calendar year in which a residence is sold, the amount received as a
278 homeowner's credit under this section or as tax relief described in Subsection 59-2-1202(10)(a)
279 on 20% of the fair market value of the residence shall be repaid to the county on or before the
280 day on which the sale of the residence closes.
281 (3) A payment for a homeowner's credit allowed by this section, and provided for in
282 Section 59-2-1204, shall be paid from the General Fund.
283 (4) For a calendar year that begins on or after January 1, 2018, after the commission
284 has adjusted the homeowner credit amount under Subsection (1)(b), the commission shall
285 increase each homeowner credit amount under Subsection (1) by the following amounts:
286 (a) for a calendar year that begins on January 1, 2018, $14;
287 (b) for a calendar year that begins on January 1, 2019, $22;
288 (c) for a calendar year that begins on January 1, 2020, $31;
289 (d) for a calendar year that begins on January 1, 2021, $40; and
290 (e) for a calendar year that begins on or after January 1, 2022, $49.
291 Section 5. Section 59-2-1209 is amended to read:
292 59-2-1209. Amount of renter's credit -- Cost-of-living adjustment -- Renter's
293 credit may be claimed only for rent that does not constitute a rental assistance payment --
294 Limitation -- General Fund as source of credit -- Maximum credit.
295 (1) (a) Subject to Subsections (2) and (3), for a calendar year beginning on or after
296 January 1, [
297 that does not exceed the following amounts:
|298||If household income is||Percentage of rent allowed as a credit|
|299||$0 -- [||9.5%|
307 commission shall increase or decrease the household income eligibility amounts under
308 Subsection (1)(a) by a percentage equal to the percentage difference between the consumer
309 price index housing for the preceding calendar year and the consumer price index housing for
310 calendar year [
313 (2) A claimant may claim a renter's credit under this part only for rent that does not
314 constitute a rental assistance payment.
315 (3) An individual may not receive the renter's credit under this section if the individual
317 (a) claimed as a personal exemption on another individual's federal income tax return
318 during any portion of a calendar year for which the individual seeks to claim the renter's credit
319 under this section; or
320 (b) a dependent with respect to whom another individual claims a tax credit under
321 Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for which the
322 individual seeks to claim the renter's credit under this section.
323 (4) A payment for a renter's credit allowed by this section, and provided for in Section
324 59-2-1204, shall be paid from the General Fund.
325 (5) [
326 section may not exceed the maximum amount allowed as a homeowner's credit for each
327 income bracket under Subsection 59-2-1208(1)(a).
328 Section 6. Section 59-2-1220 is amended to read:
329 59-2-1220. Extension of time for filing application -- County authority to make
331 (1) The commission or a county may extend the time for filing [
332 until December 31 of the year the [
333 or county finds that good cause exists to extend the deadline.
334 (2) (a) For purposes of this Subsection (2):
335 (i) "Abatement" means the amount of property taxes accrued that constitutes a tax
336 abatement for the poor in accordance with Subsection 59-2-1202[
337 (ii) "Credit" means a homeowner's credit or renter's credit authorized by this part.
338 (iii) "Property taxes due" means the taxes due on a claimant's property:
339 (A) for which the county or the commission grants an abatement or a credit [
341 (B) for the calendar year for which the abatement or credit is granted.
342 (iv) "Property taxes paid" is an amount equal to the sum of:
343 (A) the amount of the property taxes paid for the taxable year for which the claimant is
344 applying for the abatement or credit; and
345 (B) the amount of the abatement or credit the county or the commission grants.
346 (b) A county or the commission granting an abatement or a credit to a claimant shall
347 refund to that claimant an amount equal to the amount by which the claimant's property taxes
348 paid exceed the claimant's property taxes due, if that amount is $1 or more.
349 Section 7. Retrospective operation.
350 This bill has retrospective operation to January 1, 2021.