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7 LONG TITLE
8 Committee Note:
9 The Revenue and Taxation Interim Committee recommended this bill.
10 Legislative Vote: 14 voting for 0 voting against 5 absent
11 General Description:
12 This bill addresses the subtraction of certain utilities from rent for purposes of
13 calculating the renter's credit in the Property Tax Act.
14 Highlighted Provisions:
15 This bill:
16 ▸ provides the percentage that the commission shall deduct from rent when
17 calculating a renter's credit if the rent includes electricity, natural gas, or both.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill provides retrospective operation.
22 Utah Code Sections Affected:
23 AMENDS:
24 59-2-1209, as last amended by Laws of Utah 2021, Chapter 391
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26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 59-2-1209 is amended to read:
28 59-2-1209. Amount of renter's credit -- Cost-of-living adjustment -- Renter's
29 credit may be claimed only for gross rent that does not constitute a rental assistance
30 payment -- Calculation of credit when rent includes utilities -- Limitation -- General Fund
31 as source of credit -- Maximum credit.
32 (1) (a) Subject to Subsections (2) and (3), for a calendar year beginning on or after
33 January 1, 2021, a claimant may claim a renter's credit for the previous calendar year that does
34 not exceed the following amounts:
| 35 | If household income is | Percentage of gross rent allowed as a credit | ||
| 36 | $0 -- $11,785 | 9.5% | ||
| 37 | $11,786 -- $15,716 | 8.5% | ||
| 38 | $15,717 -- $19,643 | 7.0% | ||
| 39 | $19,644 -- $23,572 | 5.5% | ||
| 40 | $23,573 -- $27,503 | 4.0% | ||
| 41 | $27,504 -- $31,198 | 3.0% | ||
| 42 | $31,199 -- $34,666 | 2.5% | ||
44 increase or decrease the household income eligibility amounts under Subsection (1)(a) by a
45 percentage equal to the percentage difference between the consumer price index housing for the
46 preceding calendar year and the consumer price index housing for calendar year 2020.
47 (2) A claimant may claim a renter's credit under this part only for gross rent that does
48 not constitute a rental assistance payment.
49 (3) For purposes of calculating gross rent when a claimant's rent includes electricity or
50 natural gas and the utility amount is not itemized in the statement provided in accordance with
51 Section 59-2-1213, the commission shall deduct from rent:
52 (a) 7% of rent if the rent includes electricity or natural gas but not both; or
53 (b) 13% of rent if the rent includes both electricity and natural gas.
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55 individual is:
56 (a) claimed as a personal exemption on another individual's federal income tax return
57 during any portion of a calendar year for which the individual seeks to claim the renter's credit
58 under this section; or
59 (b) a dependent with respect to whom another individual claims a tax credit under
60 Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for which the
61 individual seeks to claim the renter's credit under this section.
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63 Section 59-2-1204, shall be paid from the General Fund.
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65 homeowner's credit for each income bracket under Subsection 59-2-1208(1)(a).
66 Section 2. Retrospective operation.
67 This bill has retrospective operation to January 1, 2022.