Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                           H.B. 298
Approved for Filing: A.V. Arthur 6
         6 01-25-23 12:31 PM 6
                       VETERAN PROPERTY TAX AMENDMENTS
                                     2023 GENERAL SESSION
                                          STATE OF UTAH
                             Chief Sponsor: Candice B. Pierucci
                                Senate Sponsor: ____________
 6
 LONG TITLE
 General Description:
        This bill amends the veteran armed forces property tax exemption.
 Highlighted Provisions:
        This bill:
        < defines terms;
        < increases the amount of taxable value that a disabled veteran may have exempted
 from property tax;
        < provides that a veteran with a 100% service-connected disability that is permanent
 and total may choose between the existing exemption from property tax or an
 exemption equal to 100% of the taxable value of the veteran's primary residence;
        < provides the circumstances under which a veteran who exercises a choice between
 the existing property tax exemption and a 100% primary residential exemption has
 to reapply for the exemption; and
        < makes technical and conforming changes.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        This bill provides retrospective operation.
                                                                                                   H.B. 298
 Utah Code Sections Affected:
 AMENDS:
     *HB0298*
       H.B. 298                                                                 01-25-23 12:31 PM
        59-2-1901, as enacted by Laws of Utah 2019, Chapter 453
        59-2-1903, as enacted by Laws of Utah 2019, Chapter 453
        59-2-1904, as enacted by Laws of Utah 2019, Chapter 453
31
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 59-2-1901 is amended to read:
        59-2-1901. Definitions.
        As used in this section:
        (1) "Active component of the United States Armed Forces" means the same as that
 term is defined in Section 59-10-1027.
        (2) "Active duty claimant" means a member of an active component of the United
 States Armed Forces or a reserve component of the United States Armed Forces who:
        (a) performed qualifying active duty military service; and
        (b) applies for an exemption described in Section 59-2-1902.
        (3) "Adjusted taxable value limit" means:
        (a) for the calendar year that begins on January 1, [2015, $252,126] 2023, $479,504; or
        (b) for each calendar year after the calendar year that begins on January 1, [2015] 2023,
 the amount of the adjusted taxable value limit for the previous year plus an amount calculated
 by multiplying the amount of the adjusted taxable value limit for the previous year by the
 actual percent change in the consumer price index during the previous calendar year.
        (4) "Consumer price index" means the same as that term is described in Section 1(f)(4),
 Internal Revenue Code, and defined in Section 1(f)(5), Internal Revenue Code.
        (5) "Deceased veteran with a disability" means a deceased individual who was a
 veteran with a disability at the time the individual died.
        (6) "Military entity" means:
        (a) the United States Department of Veterans Affairs;
        (b) an active component of the United States Armed Forces; or
        (c) a reserve component of the United States Armed Forces.
        (7) "Primary residence" includes the residence of a individual who does not reside in
 the residence if the individual:
        (a) does not reside in the residence because the individual is admitted as an inpatient at
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       01-25-23 12:31 PM                                                                       H.B. 298
 a health care facility as defined in Section 26-55-102; and
        (b) otherwise meets the requirements of this part.
        (8) "Qualifying active duty military service" means at least 200 days, regardless of
 whether consecutive, in any continuous 365-day period of active duty military service outside
 the state in an active component of the United States Armed Forces or a reserve component of
 the United States Armed Forces, if the days of active duty military service:
        (a) were completed in the year before an individual applies for an exemption described
 in Section 59-2-1902; and
        (b) have not previously been counted as qualifying active duty military service for
 purposes of qualifying for an exemption described in Section 59-2-1902 or applying for the
 exemption described in Section 59-2-1902.
        (9) "Statement of disability" means the statement of disability described in Section
 59-2-1904.
        (10) "Reserve component of the United States Armed Forces" means the same as that
 term is defined in Section 59-10-1027.
        (11) "Residence" means real property where an individual resides, including:
        (a) a mobile home, as defined in Section 41-1a-102; or
        (b) a manufactured home, as defined in Section 41-1a-102.
        (12) "Veteran claimant" means one of the following individuals who applies for an
 exemption described in Section 59-2-1903:
        (a) a veteran with a disability;
        (b) the unmarried surviving spouse:
        (i) of a deceased veteran with a disability; or
        (ii) a veteran who was killed in action or died in the line of duty; or
        (c) a minor orphan:
        (i) of a deceased veteran with a disability; or
        (ii) a veteran who was killed in action or died in the line of duty.
        (13) "Veteran who was killed in action or died in the line of duty" means an individual
 who was killed in action or died in the line of duty in an active component of the United States
 Armed Forces or a reserve component of the United States Armed Forces, regardless of
 whether that individual had a disability at the time that individual was killed in action or died
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        H.B. 298                                                                     01-25-23 12:31 PM
 in the line of duty.
         (14) "Veteran with a disability" means an individual with a disability who, during
 military training or a military conflict, acquired a disability in the line of duty in an active
 component of the United States Armed Forces or a reserve component of the United States
 Armed Forces, as determined by a military entity.
         Section 2. Section 59-2-1903 is amended to read:
         59-2-1903. Veteran armed forces exemption -- Amount.
         (1) As used in this section:[, "eligible property" means property owned by a veteran
 claimant that is:]
         [(a) the veteran claimant's primary residence; or]
         [(b) tangible personal property that:]
         [(i) is held exclusively for personal use; and]
         [(ii) is not used in a trade or business.]
         (a) "Eligible property" means:
         (i) residential property; and
         (ii) tangible personal property that the veteran claimant:
         (A) owns;
         (B) holds exclusively for personal use; and
         (C) does not use in a trade or business.
         (b) "Qualifying disabled veteran claimant" means a veteran claimant who has a 100%
 service-connected disability rating by the Veterans Benefits Administration that is permanent
 and total.
         (c) "Residential property" means a residence that:
         (i) the veteran claimant owns; and
         (ii) is the veteran claimant's primary residence.
         [(2) In accordance with this part, the amount of taxable value of eligible property
 described in Subsection (3) or (4) is exempt from taxation if the eligible property is owned by a
 veteran claimant.]
         [(3)] (2) (a) Except as provided in [Subsection (4) and in accordance with this
 Subsection (3), the amount of] Subsection (3), a veteran claimant other than a qualifying
 disabled veteran claimant may claim an exemption against the taxable value of eligible
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        01-25-23 12:31 PM                                                                         H.B. 298
 property [that is exempt under Subsection (2) is] in an amount equal to the percentage of
 disability described in the statement of disability multiplied by the adjusted taxable value limit.
           (b) The amount of an exemption calculated under Subsection [(3)(a)] (2)(a) may not
 exceed the taxable value of the eligible property.
           (c) A county shall consider a veteran with a disability to have a 100% disability,
 regardless of the percentage of disability described on the statement of disability, if the United
 States Department of Veterans Affairs certifies the veteran in the classification of individual
 unemployability.
           (d) A county may not allow an exemption claimed under this [section] Subsection (2)
 if the percentage of disability listed on the statement of disability is less than 10%.
           [(4)]
           (3) The amount of taxable value of eligible property that is exempt [under Subsection
 (2)] is equal to the total taxable value of the [veteran claimant's] eligible property if the
 property is owned by:
           (a) the unmarried surviving spouse of a veteran who was killed in action or died in the
 line of duty;
           (b) a minor orphan of a veteran who was killed in action or died in the line of duty; or
           (c) the unmarried surviving spouse or minor orphan of a deceased veteran with a
 disability:
           (i) who served in the military service of the United States or the state prior to January
 1, 1921; and
           (ii) whose percentage of disability described in the statement of disability is 10% or
 more.
           (4) A qualifying disabled veteran claimant is eligible to claim an exemption equal to
 either:
           (a) 100% of the total taxable value of the qualifying disabled veteran claimant's
 residential property; or
           (b) the exemption amount described in Subsection (2).
           (5) For purposes of this section and Section 59-2-1904, an individual who received an
 honorable or general discharge from military service of an active component of the United
 States Armed Forces or a reserve component of the United States Armed Forces:
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        H.B. 298                                                                    01-25-23 12:31 PM
         (a) is presumed to be a citizen of the United States; and
         (b) may not be required to provide additional proof of citizenship to establish that the
 individual is a citizen of the United States.
         (6) The Department of Veterans and Military Affairs created in Section 71-8-2 shall,
 through an informal hearing held in accordance with Title 63G, Chapter 4, Administrative
 Procedures Act, resolve each dispute arising under this section concerning an individual's
 status as a veteran with a disability.
         Section 3. Section 59-2-1904 is amended to read:
         59-2-1904. Veteran armed forces exemption -- Application.
         (1) As used in this section, "default application deadline" means the application
 deadline described in Subsection (3)(a).
         (2) A veteran claimant may claim an exemption in accordance with Section 59-2-1903
 and this section if the veteran claimant owns the property eligible for the exemption at any time
 during the calendar year for which the veteran claimant claims the exemption.
         (3) (a) Except as provided in Subsection (4) or (5), a veteran claimant shall, on or
 before September 1 of the calendar year for which the veteran claimant is applying for the
 exemption, file an application for an exemption described in Section 59-2-1903 with the county
 in which the veteran claimant resides on September 1 of that calendar year.
         (b) An application described in Subsection (3)(a) shall include:
         (i) a copy of the veteran's certificate of discharge from military service or other
 satisfactory evidence of eligible military service; and
         (ii) for an application submitted under the circumstances described in Subsection
 (5)(a), a statement, issued by a military entity, that gives the date on which the written decision
 described in Subsection (5)(a) takes effect.
         (c) A veteran claimant who is claiming an exemption for a veteran with a disability or a
 deceased veteran with a disability, shall ensure that as part of the application described in this
 Subsection (3), the county has on file, for the veteran related to the exemption, a statement of
 disability:
         (i) issued by a military entity; and
         (ii) that lists the percentage of disability for the veteran with a disability or deceased
 veteran with a disability.
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        01-25-23 12:31 PM                                                                       H.B. 298
        (d) If a veteran claimant is in compliance with Subsection (3)(c), a county may not
 require the veteran claimant to file another statement of disability, except under the following
 circumstances:
        (i) the percentage of disability has changed for the veteran with a disability or the
 deceased veteran with a disability; or
        (ii) the veteran claimant is not the same individual who filed an application for the
 exemption for the calendar year immediately preceding the current calendar year.
        (e) A county that receives an application described in Subsection (3)(a) shall, within 30
 days after the day on which the county received the application, provide the veteran claimant
 with a receipt that states that the county received the veteran claimant's application.
        (4) A county may extend the default application deadline for an initial or amended
 application until December 31 of the year for which the veteran claimant is applying for the
 exemption if the county finds that good cause exists to extend the default application deadline.
        (5) A county shall extend the default application deadline by one additional year if, on
 or after January 4, 2004:
        (a) a military entity issues a written decision that:
        (i) (A) for a potential claimant who is a living veteran, determines the veteran is a
 veteran with a disability; or
        (B) for a potential claimant who is the unmarried surviving spouse or minor orphan of
 a deceased veteran, determines the deceased veteran was a deceased veteran with a disability at
 the time the deceased veteran with a disability died; and
        (ii) takes effect in a year before the current calendar year; or
        (b) the county legislative body determines that:
        (i) the veteran claimant or a member of the veteran claimant's immediate family had an
 illness or injury that prevented the veteran claimant from filing the application on or before the
 default application deadline;
        (ii) a member of the veteran claimant's immediate family died during the calendar year
 of the default application deadline;
        (iii) the veteran claimant was not physically present in the state for a time period of at
 least six consecutive months during the calendar year of the default application deadline; or
        (iv) the failure of the veteran claimant to file the application on or before the default
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        H.B. 298                                                                   01-25-23 12:31 PM
 application deadline:
        (A) would be against equity or good conscience; and
        (B) was beyond the reasonable control of the veteran claimant.
        (6) (a) A county shall allow a veteran claimant to amend an application described in
 Subsection (3)(a) after the default application deadline if, on or after January 4, 2004, a military
 entity issues a written decision:
        (i) that the percentage of disability has changed:
        (A) for a veteran with a disability, if the veteran with a disability is the veteran
 claimant; or
        (B) for a deceased veteran with a disability, if the claimant is the unmarried surviving
 spouse or minor orphan of a deceased veteran with a disability; and
        (ii) that takes effect in a year before the current calendar year.
        (b) A veteran claimant who files an amended application under Subsection (6)(a) shall
 include a statement, issued by a military entity, that gives the date on which the written
 decision described in Subsection (6)(a) takes effect.
        (7) After issuing the receipt described in Subsection (3)(e), a county may not require a
 veteran claimant to file another application under Subsection (3)(a), except under the following
 circumstances relating to the veteran claimant:
        (a) the veteran claimant applies all or a portion of an exemption to tangible personal
 property;
        (b) the percentage of disability changes for a veteran with a disability or a deceased
 veteran with a disability;
        (c) the veteran with a disability dies;
        (d) a change in the veteran claimant's ownership of the veteran claimant's