1     
RENTER'S CREDIT AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Steve Eliason

5     
Senate Sponsor: Gene Davis

6     

7     LONG TITLE
8     General Description:
9          This bill addresses the subtraction of certain utilities from rent for purposes of
10     calculating the renter's credit in the Property Tax Act.
11     Highlighted Provisions:
12          This bill:
13          ▸     provides the percentage that the commission shall deduct from rent when
14     calculating a renter's credit if the rent includes electricity, natural gas, or both.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          This bill provides retrospective operation.
19     Utah Code Sections Affected:
20     AMENDS:
21          59-2-1209, as last amended by Laws of Utah 2021, Chapter 391
22     

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 59-2-1209 is amended to read:
25          59-2-1209. Amount of renter's credit -- Cost-of-living adjustment -- Renter's
26     credit may be claimed only for gross rent that does not constitute a rental assistance
27     payment -- Calculation of credit when rent includes utilities -- Limitation -- General Fund
28     as source of credit -- Maximum credit.
29          (1) (a) Subject to Subsections (2) and (3), for a calendar year beginning on or after
30     January 1, 2021, a claimant may claim a renter's credit for the previous calendar year that does
31     not exceed the following amounts:

32      If household income isPercentage of gross rent allowed as a
credit
33      $0 -- $11,7859.5%
34      $11,786 -- $15,7168.5%
35      $15,717 -- $19,6437.0%
36      $19,644 -- $23,5725.5%
37      $23,573 -- $27,5034.0%
38      $27,504 -- $31,1983.0%
39      $31,199 -- $34,6662.5%
40          (b) For a calendar year beginning on or after January 1, 2022, the commission shall
41     increase or decrease the household income eligibility amounts under Subsection (1)(a) by a
42     percentage equal to the percentage difference between the consumer price index housing for the
43     preceding calendar year and the consumer price index housing for calendar year 2020.
44          (2) A claimant may claim a renter's credit under this part only for gross rent that does
45     not constitute a rental assistance payment.
46          (3) For purposes of calculating gross rent when a claimant's rent includes electricity or
47     natural gas and the utility amount is not itemized in the statement provided in accordance with
48     Section 59-2-1213, the commission shall deduct from rent:
49          (a) 7% of rent if the rent includes electricity or natural gas but not both; or
50          (b) 13% of rent if the rent includes both electricity and natural gas.
51          [(3)] (4) An individual may not receive the renter's credit under this section if the
52     individual is:
53          (a) claimed as a personal exemption on another individual's federal income tax return
54     during any portion of a calendar year for which the individual seeks to claim the renter's credit
55     under this section; or
56          (b) a dependent with respect to whom another individual claims a tax credit under
57     Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for which the
58     individual seeks to claim the renter's credit under this section.
59          [(4)] (5) A payment for a renter's credit allowed by this section, and provided for in
60     Section 59-2-1204, shall be paid from the General Fund.
61          [(5)] (6) A credit under this section may not exceed the maximum amount allowed as a
62     homeowner's credit for each income bracket under Subsection 59-2-1208(1)(a).
63          Section 2. Retrospective operation.
64          This bill has retrospective operation to January 1, 2022.