Representative Joel K. Briscoe proposes the following substitute bill:


1     
PROPERTY TAX INCOME REQUIREMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Joel K. Briscoe

5     
Senate Sponsor: Michael K. McKell

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions of the Property Tax Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     increases the income limit for a claimant to qualify for a homeowner's credit;
13          ▸     increases the income limit for a claimant to qualify for a renter's credit; and
14          ▸     makes technical and conforming changes.
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          59-2-1208, as last amended by Laws of Utah 2021, Chapter 391
22          59-2-1209, as last amended by Laws of Utah 2022, Chapter 196
23     

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 59-2-1208 is amended to read:
26          59-2-1208. Amount of homeowner's credit -- Cost-of-living adjustment --
27     Limitation -- General Fund as source of credit.
28          (1) (a) Subject to [Subsections] Subsection (2) [and (4),], for a calendar year beginning
29     on or after January 1, [2021] 2023, a claimant may claim a homeowner's credit that does not
30     exceed the following amounts:
31      If household income isHomeowner's credit
32      $0 -- [$11,785] $16,000[$1,027] $1,186
33      [$11,786] $16,001-- [$15,716]
$21,500		[$896] $1,041
34      [$15,717] $21,501 -- [$19,643]
$27,000		[$768] $899
35      [$19,644] $27,001-- [$23,572]
$32,500		[$575] $685
36      [$23,573] $32,501-- [$27,503]
$38,000		[$448] $545
37      [$27,504] $38,001-- [$31,198]
$44,000		[$256] $332
38      [$31,199] $44,001-- [$34,666]
$50,000		[$126] $188
39          (b) For a calendar year beginning on or after January 1, [2022] 2024, the commission
40     shall increase or decrease the household income eligibility amounts and the credits under
41     Subsection (1)(a) by a percentage equal to the percentage difference between the consumer
42     price index housing for the preceding calendar year and the consumer price index housing for
43     calendar year [2020] 2022.
44          (2) (a) An individual may not receive the homeowner's credit under this section or the
45     tax relief described in Subsection 59-2-1202(10)(a) on 20% of the fair market value of the
46     residence if:
47          (i) the individual is claimed as a personal exemption on another individual's federal
48     income tax return during any portion of a calendar year for which the individual seeks to claim
49     the homeowner's credit under this section;
50          (ii) the individual is a dependent with respect to whom another individual claims a tax
51     credit under Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for
52     which the individual seeks to claim the homeowner's credit under this section; or
53          (iii) the individual did not own the residence for the entire calendar year for which the
54     individual claims the homeowner's credit.
55          (b) For a calendar year in which a residence is sold, the amount received as a
56     homeowner's credit under this section or as tax relief described in Subsection 59-2-1202(10)(a)
57     on 20% of the fair market value of the residence shall be repaid to the county on or before the
58     day on which the sale of the residence closes.
59          (3) A payment for a homeowner's credit allowed by this section, and provided for in
60     Section 59-2-1204, shall be paid from the General Fund.
61          [(4) For a calendar year that begins on or after January 1, 2018, after the commission
62     has adjusted the homeowner credit amount under Subsection (1)(b), the commission shall
63     increase each homeowner credit amount under Subsection (1) by the following amounts:]
64          [(a) for a calendar year that begins on January 1, 2018, $14;]
65          [(b) for a calendar year that begins on January 1, 2019, $22;]
66          [(c) for a calendar year that begins on January 1, 2020, $31;]
67          [(d) for a calendar year that begins on January 1, 2021, $40; and]
68          [(e) for a calendar year that begins on or after January 1, 2022, $49.]
69          Section 2. Section 59-2-1209 is amended to read:
70          59-2-1209. Amount of renter's credit -- Cost-of-living adjustment -- Renter's
71     credit may be claimed only for gross rent that does not constitute a rental assistance
72     payment -- Calculation of credit when rent includes utilities -- Limitation -- General Fund
73     as source of credit -- Maximum credit.
74          (1) (a) Subject to Subsections (2) and (3), for a calendar year beginning on or after
75     January 1, [2021] 2023, a claimant may claim a renter's credit for the previous calendar year
76     that does not exceed the following amounts:     
77      If household income isPercentage of gross rent allowed as a
credit
78      $0 -- [$11,785] $16,0009.5%
79      [$11,786] $16,001 -- [$15,716]
$21,500		8.5%
80      [$15,717] $21,501 -- [$19,643]
$27,000		7.0%
81      [$19,644] $27,001 -- [$23,572]
$32,500		5.5%
82      [$23,573] $32,501 -- [$27,503]
$38,000		4.0%
83      [$27,504] $38,001 -- [$]
$44,000[31,198]		3.0%
84      [$31,199] $44,001 -- [$]
$50,000[34,666]		2.5%
85          (b) For a calendar year beginning on or after January 1, [2022] 2024, the commission
86     shall increase or decrease the household income eligibility amounts under Subsection (1)(a) by
87     a percentage equal to the percentage difference between the consumer price index housing for
88     the preceding calendar year and the consumer price index housing for calendar year [2020]
89     2022.
90          (2) A claimant may claim a renter's credit under this part only for gross rent that does
91     not constitute a rental assistance payment.
92          (3) For purposes of calculating gross rent when a claimant's rent includes electricity or
93     natural gas and the utility amount is not itemized in the statement provided in accordance with
94     Section 59-2-1213, the commission shall deduct from rent:
95          (a) 7% of rent if the rent includes electricity or natural gas but not both; or
96          (b) 13% of rent if the rent includes both electricity and natural gas.
97          (4) An individual may not receive the renter's credit under this section if the individual
98     is:
99          (a) claimed as a personal exemption on another individual's federal income tax return
100     during any portion of a calendar year for which the individual seeks to claim the renter's credit
101     under this section; or
102          (b) a dependent with respect to whom another individual claims a tax credit under
103     Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for which the
104     individual seeks to claim the renter's credit under this section.
105          (5) A payment for a renter's credit allowed by this section, and provided for in Section
106     59-2-1204, shall be paid from the General Fund.
107          (6) A credit under this section may not exceed the maximum amount allowed as a
108     homeowner's credit for each income bracket under Subsection 59-2-1208(1)(a).
109          Section 3. Retrospective operation.
110          This bill has retrospective operation for a taxable year beginning on or after January 1,
111     2023.