Senator Todd D. Weiler proposes the following substitute bill:


1     
PROPERTY TAX INCOME REQUIREMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Todd D. Weiler

5     
House Sponsor: ____________

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 amount of the homeowner's credit based on income;
14          ▸     increases the income limit for a claimant to qualify for a renter's credit; and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          This bill provides retrospective operation.
20     Utah Code Sections Affected:
21     AMENDS:
22          59-2-1208, as last amended by Laws of Utah 2021, Chapter 391
23          59-2-1209, as last amended by Laws of Utah 2022, Chapter 196
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 59-2-1208 is amended to read:
27          59-2-1208. Amount of homeowner's credit -- Cost-of-living adjustment --
28     Limitation -- General Fund as source of credit.
29          (1) (a) Subject to [Subsections] Subsection (2) [and (4)], for a calendar year beginning
30     on or after January 1, [2021] 2024, a claimant may claim a homeowner's credit that does not
31     exceed the following amounts:     
32     
If household income is
Homeowner's credit
33     
$0 -- [$11,785] $18,000
[$1,027] $1,259
34     
[$11,786] $18,001 -- [$15,716] $22,000
[$896] $1,105
35     
[$15,717] $22,001 -- [$19,643] $26,000
[$768] $954
36     
[$19,644] $26,001 -- [$23,572] $30,000
[$575] $726
37     
[$23,573] $30,001 -- [$27,503] $34,000
[$448] $577
38     
[$27,504] $34,001 -- [$31,198] $38,000
[$256] $351
39     
[$31,199] $38,001 -- [$34,666] $42,000
[$126] $197
40          (b) For a calendar year beginning on or after January 1, [2022] 2025, the commission
41     shall increase or decrease the household income eligibility amounts and the credits under
42     Subsection (1)(a) by a percentage equal to the percentage difference between the [consumer
43     price index] Consumer Price Index housing for the preceding calendar year and the [consumer
44     price index] Consumer Price Index housing for calendar year [2020] 2023.
45          (2) (a) An individual may not receive the homeowner's credit under this section or the
46     tax relief described in Subsection 59-2-1202(10)(a) on 20% of the fair market value of the
47     residence if:
48          (i) the individual is claimed as a personal exemption on another individual's federal
49     income tax return during any portion of a calendar year for which the individual seeks to claim
50     the homeowner's credit under this section;
51          (ii) the individual is a dependent with respect to whom another individual claims a tax
52     credit under Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for
53     which the individual seeks to claim the homeowner's credit under this section; or
54          (iii) the individual did not own the residence for the entire calendar year for which the
55     individual claims the homeowner's credit.
56          (b) For a calendar year in which a residence is sold, the amount received as a
57     homeowner's credit under this section or as tax relief described in Subsection 59-2-1202(10)(a)
58     on 20% of the fair market value of the residence shall be repaid to the county on or before the
59     day on which the sale of the residence closes.
60          (3) A payment for a homeowner's credit allowed by this section, and provided for in
61     Section 59-2-1204, shall be paid from the General Fund.
62          [(4) For a calendar year that begins on or after January 1, 2018, after the commission
63     has adjusted the homeowner credit amount under Subsection (1)(b), the commission shall
64     increase each homeowner credit amount under Subsection (1) by the following amounts:]
65          [(a) for a calendar year that begins on January 1, 2018, $14;]
66          [(b) for a calendar year that begins on January 1, 2019, $22;]
67          [(c) for a calendar year that begins on January 1, 2020, $31;]
68          [(d) for a calendar year that begins on January 1, 2021, $40; and]
69          [(e) for a calendar year that begins on or after January 1, 2022, $49.]
70          Section 2. Section 59-2-1209 is amended to read:
71          59-2-1209. Amount of renter's credit -- Cost-of-living adjustment -- Renter's
72     credit may be claimed only for gross rent that does not constitute a rental assistance
73     payment -- Calculation of credit when rent includes utilities -- Limitation -- General Fund
74     as source of credit -- Maximum credit.
75          (1) (a) Subject to Subsections (2) and (3), for a calendar year beginning on or after
76     January 1, [2021] 2024, a claimant may claim a renter's credit for the previous calendar year
77     that does not exceed the following amounts:
78     
If household income is
Percentage of gross rent allowed as a credit
79     
$0 -- [$11,785] $18,000
9.5%
80     
[$11,786] $18,001 -- [$15,716] $22,000
8.5%
81     
[$15,717] $22,001 -- [$19,643] $26,000
7.0%
82     
[$19,644] $26,001 -- [$23,572] $30,000
5.5%
83     
[$23,573] $30,001 -- [$27,503] $34,000
4.0%
84     
[$27,504] $34,001 -- [$31,198] $38,000
3.0%
85     
[$31,199] $38,001 -- [$34,666] $42,000
2.5%
86          (b) For a calendar year beginning on or after January 1, [2022] 2025, the commission
87     shall increase or decrease the household income eligibility amounts under Subsection (1)(a) by
88     a percentage equal to the percentage difference between the [consumer price index] Consumer
89     Price Index housing for the preceding calendar year and the [consumer price index] Consumer
90     Price Index housing for calendar year [2020] 2023.
91          (2) A claimant may claim a renter's credit under this part only for gross rent that does
92     not constitute a rental assistance payment.
93          (3) For purposes of calculating gross rent when a claimant's rent includes electricity or
94     natural gas and the utility amount is not itemized in the statement provided in accordance with
95     Section 59-2-1213, the commission shall deduct from rent:
96          (a) 7% of rent if the rent includes electricity or natural gas but not both; or
97          (b) 13% of rent if the rent includes both electricity and natural gas.
98          (4) An individual may not receive the renter's credit under this section if the individual
99     is:
100          (a) claimed as a personal exemption on another individual's federal income tax return
101     during any portion of a calendar year for which the individual seeks to claim the renter's credit
102     under this section; or
103          (b) a dependent with respect to whom another individual claims a tax credit under
104     Section 24(h)(4), Internal Revenue Code, during any portion of a calendar year for which the
105     individual seeks to claim the renter's credit under this section.
106          (5) A payment for a renter's credit allowed by this section, and provided for in Section
107     59-2-1204, shall be paid from the General Fund.
108          (6) A credit under this section may not exceed the maximum amount allowed as a
109     homeowner's credit for each income bracket under Subsection 59-2-1208(1)(a).
110          Section 3. Effective date.
111          This bill takes effect on May 1, 2024.
112          Section 4. Retrospective operation.
113          This bill has retrospective operation for a taxable year beginning on or after January 1,
114     2024.