1     
PROPERTY TAX RELIEF AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Phil Lyman

5     
Senate Sponsor: Lincoln Fillmore

6     

7     LONG TITLE
8     Committee Note:
9          The Revenue and Taxation Interim Committee recommended this bill.
10               Legislative Vote:     13 voting for     0 voting against     5 absent
11     General Description:
12          This bill modifies provisions relating to the property tax relief commonly known as
13     "circuit breaker."
14     Highlighted Provisions:
15          This bill:
16          ▸     defines terms;
17          ▸     modifies the income qualifications for circuit breaker tax relief;
18          ▸     authorizes the State Tax Commission to make rules to establish the circumstances
19     that would allow an extension of the application deadline for circuit breaker tax
20     relief; and
21          ▸     makes technical and conforming changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          This bill provides retrospective operation.
26     Utah Code Sections Affected:
27     AMENDS:
28          59-2-1202, as last amended by Laws of Utah 2021, Chapter 391
29          59-2-1220, as last amended by Laws of Utah 2021, Chapter 391
30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 59-2-1202 is amended to read:
33          59-2-1202. Definitions.
34          As used in this part:
35          (1) (a) "Claimant" means a homeowner or renter who:
36          (i) files a claim under this part for a residence;
37          (ii) is domiciled in this state for the entire calendar year for which a claim for relief is
38     filed under this part; and
39          (iii) on or before December 31 of the year for which a claim for relief is filed under this
40     part, is:
41          (A) 66 years old or older if the individual was born on or before December 31, 1959; or
42          (B) 67 years old or older if the individual was born on or after January 1, 1960.
43          (b) Notwithstanding Subsection (1)(a), "claimant" includes a surviving spouse:
44          (i) regardless of:
45          (A) the age of the surviving spouse; or
46          (B) the age of the deceased spouse at the time of death;
47          (ii) if the surviving spouse meets the requirements of this part except for the age
48     requirement;
49          (iii) if the surviving spouse is part of the same household of the deceased spouse at the
50     time of death of the deceased spouse; and
51          (iv) if the surviving spouse is unmarried at the time the surviving spouse files the
52     claim.
53          (c) If two or more individuals of a household are able to meet the qualifications for a
54     claimant, they may determine among them as to who the claimant shall be, but if they are
55     unable to agree, the matter shall be referred to the county legislative body for a determination
56     of the claimant of an owned residence and to the commission for a determination of the
57     claimant of a rented residence.
58          (2) "Consumer price index housing" means the Consumer Price Index - All Urban
59     Consumers, Housing United States Cities Average, published by the Bureau of Labor Statistics
60     of the United States Department of Labor.
61          (3) (a) "Gross rent" means rent actually paid in cash or its equivalent solely for the
62     right of occupancy, at arm's-length, of a residence, exclusive of charges for any utilities,
63     services, furniture, furnishings, or personal appliances furnished by the landlord as a part of the
64     rental agreement.
65          (b) If a claimant occupies two or more residences in the year, "gross rent" means the
66     total rent paid for the residences during the one-year period for which the renter files a claim
67     under this part.
68          (4) (a) "Homeowner" means:
69          (i) an individual whose name is listed on the deed of a residence; or
70          (ii) if a residence is owned in a qualifying trust, an individual who is a grantor, trustor,
71     or settlor or holds another similar role in the trust.
72          (b) "Homeowner" does not include:
73          (i) if a residence is owned by any type of entity other than a qualifying trust, an
74     individual who holds an ownership interest in that entity; or
75          (ii) an individual who is listed on a deed of a residence along with an entity other than
76     a qualifying trust.
77          (5) "Homeowner's credit" means a credit against a claimant's property tax liability.
78          (6) "Household" means the association of individuals who live in the same dwelling,
79     sharing the dwelling's furnishings, facilities, accommodations, and expenses.
80          (7) (a) Except as provided in Subsection (7)(b), "household income" means all income
81     received by all members of a claimant's household in:
82          (i) for a claimant who owns a residence, the calendar year preceding the calendar year
83     in which property taxes are due; or
84          (ii) for a claimant who rents a residence, the year for which a claim is filed.
85          (b) "Household income" does not include income received by a member of a claimant's
86     household who is:
87          (i) under the age of 18; or
88          (ii) a parent or a grandparent, through blood, marriage, or adoption, of the claimant or
89     the claimant's spouse.
90          (8) [(a)] "Income" means the sum of:
91          [(i)] (a) federal adjusted gross income as defined in Section 62, Internal Revenue Code;
92     and
93          [(ii)] (b) nontaxable income.
94          [(b) "Income" does not include:]
95          [(i) aid, assistance, or contributions from a tax-exempt nongovernmental source;]
96          [(ii) surplus foods;]
97          [(iii) relief in kind supplied by a public or private agency;]
98          [(iv) relief provided under this part or Part 18, Tax Deferral and Tax Abatement; or]
99          [(v) Social Security Disability Income payments received under the Social Security
100     Act.]
101          (9) (a) "Nontaxable income" means amounts excluded from adjusted gross income
102     under the Internal Revenue Code, including:
103          [(a)] (i) capital gains;
104          [(b)] (ii) loss carry forwards claimed during the taxable year in which a claimant files
105     for relief under this part or Part 18, Tax Deferral and Tax Abatement;
106          [(c)] (iii) depreciation claimed pursuant to the Internal Revenue Code by a claimant on
107     the residence for which the claimant files for relief under this part or Part 18, Tax Deferral and
108     Tax Abatement;
109          [(d)] (iv) support money received;
110          [(e)] (v) nontaxable strike benefits;
111          [(f) cash public assistance or relief;]
112          [(g)] (vi) the gross amount of a pension or annuity, including benefits under the
113     Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231 et seq., and veterans disability pensions;
114          [(h)] (vii) except for payments described in Subsection [(8)(b)(v)] (9)(b)(vi), payments
115     received under the Social Security Act;
116          [(i)] (viii) state unemployment insurance amounts;
117          [(j)] (ix) nontaxable interest received from any source;
118          [(k)] (x) workers' compensation;
119          [(l)] (xi) the gross amount of "loss of time" insurance; and
120          [(m)] (xii) voluntary contributions to a tax-deferred retirement plan.
121          (b) "Nontaxable income" does not include:
122          (i) public assistance;
123          (ii) aid, assistance, or contributions from a tax-exempt nongovernmental source;
124          (iii) surplus foods;
125          (iv) relief in kind supplied by a public or private agency;
126          (v) relief provided under this part of Part 18, Tax Deferral and Tax Abatement;
127          (vi) Social Security Disability Income payments received under the Social Security
128     Act;
129          (vii) federal tax refunds;
130          (viii) federal child tax credits received under 26 U.S.C. Sec. 24;
131          (ix) federal earned income tax credits received under 26 U.S.C. Sec. 32;
132          (x) payments received under a reverse mortgage;
133          (xi) payments or reimbursements to senior program volunteers under 42 U.S.C. Sec.
134     5058; or
135          (xii) gifts or bequests.
136          (10) (a) "Property taxes accrued" means property taxes, exclusive of special
137     assessments, delinquent interest, and charges for service, levied on 35% of the fair market
138     value, as reflected on the assessment roll, of a claimant's residence in this state.
139          (b) For a mobile home, "property taxes accrued" includes taxes imposed on both the
140     land upon which the home is situated and on the structure of the home itself, whether classified
141     as real property or personal property taxes.
142          (c) The relief described in Subsection (10)(a) constitutes:
143          (i) a tax abatement for the poor in accordance with Utah Constitution, Article XIII,
144     Section 3; and
145          (ii) the residential exemption provided for in Section 59-2-103.
146          (d) For purposes of this Subsection (10), property taxes accrued are levied on the lien
147     date.
148          (e) When a household owns and occupies two or more different residences in this state
149     in the same calendar year, and neither residence is acquired or sold during the calendar year for
150     which relief is claimed under this part, property taxes accrued shall relate only to the residence
151     occupied on the lien date by the household as the household's principal place of residence.
152          (f) (i) If a residence is an integral part of a large unit such as a farm or a multipurpose
153     or multidwelling building, property taxes accrued shall be calculated on the percentage that the
154     value of the residence is of the total value of the unit.
155          (ii) For purposes of this Subsection (10)(f), "unit" refers to the parcel of property
156     covered by a single tax statement of which the residence is a part.
157          (11) "Public assistance" means:
158          (a) medical assistance provided under Title 26B, Chapter 3, Health Care -
159     Administration and Assistance;
160          (b) SNAP benefits as defined in Section 35A-1-102;
161          (c) services or benefits provided under Title 35A, Chapter 3, Employment Support Act;
162     and
163          (d) foster care maintenance payments provided from the General Fund or under Title
164     IV-E of the Social Security Act.
165          [(11)] (12) "Qualifying trust" means a trust holding title to real or tangible personal
166     property for which an individual:
167          (a) makes a claim under this part;
168          (b) proves to the satisfaction of the county that title to the portion of the trust will
169     revest in the individual upon the exercise of a power:
170          (i) by:
171          (A) the individual as grantor, trustor, settlor, or in another similar role of the trust;
172          (B) a nonadverse party; or
173          (C) both the individual and a nonadverse party; and
174          (ii) regardless of whether the power is a power:
175          (A) to revoke;
176          (B) to terminate;
177          (C) to alter;
178          (D) to amend; or
179          (E) to appoint; and
180          (c) is obligated to pay the taxes on that portion of the trust property beginning January
181     1 of the year the individual makes the claim.
182          [(12)] (13) (a) "Rental assistance payment" means any payment that:
183          (i) is made by a:
184          (A) governmental entity;
185          (B) charitable organization; or
186          (C) religious organization; and
187          (ii) is specifically designated for the payment of rent of a claimant:
188          (A) for the calendar year for which the claimant seeks a renter's credit under this part;
189     and
190          (B) regardless of whether the payment is made to the claimant or the landlord.
191          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
192     commission may make rules defining the terms:
193          (i) "governmental entity";
194          (ii) "charitable organization"; or
195          (iii) "religious organization."
196          [(13)] (14) (a) (i) "Residence" means the dwelling in this state, whether owned or
197     rented, and so much of the land surrounding the dwelling, not exceeding one acre, as is
198     reasonably necessary for use of the dwelling as a home.
199          (ii) "Residence" includes a dwelling that is:
200          (A) a part of a multidwelling or multipurpose building and a part of the land upon
201     which the multidwelling or multipurpose building is built; and
202          (B) a mobile home or houseboat.
203          (b) "Residence" does not include personal property such as furniture, furnishings, or
204     appliances.
205          (c) For purposes of this Subsection [(13)] (14), "owned" includes a vendee in
206     possession under a land contract or one or more joint tenants or tenants in common.
207          Section 2. Section 59-2-1220 is amended to read:
208          59-2-1220. Extension of time for filing application -- Rulemaking authority --
209     County authority to make refunds.
210          (1) (a) The commission or a county may extend the time for filing an application until
211     December 31 of the year the application is required to be filed[,] if, subject to any rules made
212     by the commission under Subsection (1)(b), the commission or county finds that good cause
213     exists to extend the deadline.
214          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
215     commission may make rules to establish the circumstances under which the commission or a
216     county may, for good cause, extend the deadline for filing an application under Subsection
217     (1)(a).
218          (2) (a) For purposes of this Subsection (2):
219          (i) "Abatement" means the amount of property taxes accrued that constitutes a tax
220     abatement for the poor in accordance with Subsection 59-2-1202(10).
221          (ii) "Credit" means a homeowner's credit or renter's credit authorized by this part.
222          (iii) "Property taxes due" means the taxes due on a claimant's property:
223          (A) for which the county or the commission grants an abatement or a credit; and
224          (B) for the calendar year for which the abatement or credit is granted.
225          (iv) "Property taxes paid" is an amount equal to the sum of:
226          (A) the amount of the property taxes paid for the taxable year for which the claimant is
227     applying for the abatement or credit; and
228          (B) the amount of the abatement or credit the county or the commission grants.
229          (b) A county or the commission granting an abatement or a credit to a claimant shall
230     refund to that claimant an amount equal to the amount by which the claimant's property taxes
231     paid exceed the claimant's property taxes due, if that amount is $1 or more.
232          Section 3. Effective date.
233          This bill takes effect on May 1, 2024.
234          Section 4. Retrospective operation.
235          This bill has retrospective operation for a taxable year beginning on or after January 1,
236     2024.