The enactment of HB 454 is set to significantly affect property tax laws in Utah by establishing specific measures for tax relief targeted at senior homeowners. The bill specifies criteria such as income thresholds (not exceeding $50,000), possession of the residence for the past calendar year, and restrictions on physical improvements that may increase tax liability. Additionally, it provides a framework for counties to process these applications and ensures that such tax relief operates in conjunction with other available relief programs. Overall, this bill aims to ease the financial strain on senior citizens, making homeownership more sustainable for this demographic.
Summary
House Bill 454 aims to modify property tax provisions for senior homeowners in Utah. The bill introduces limitations on the amount of property tax owed by seniors, specifically those aged 70 and older, who meet certain income and residency requirements. It allows eligible homeowners to pay property taxes that are capped at 5% higher than the amount they paid in the previous year. This measure is designed to provide financial relief to senior citizens who may struggle with rising tax burdens as they age, ensuring that they can remain in their homes without the fear of escalating property taxes becoming unaffordable.
Contention
Notably, the bill includes penalties for providing false information or failing to report a change in eligibility, which underscores the importance of accurate reporting in the application process for tax relief. If a homeowner is found to have misrepresented their situation, they can face significant consequences, including denial of their tax relief and back assessments of owed taxes with interest. This aspect may raise concerns among stakeholders about the potential for punitive actions against seniors who may inadvertently fail to comply with reporting requirements. Such provisions could be seen as a double-edged sword, aimed at protecting the integrity of the program while also imposing stricter regulations on vulnerable populations.
Individual income tax: property tax credit; credit percentages; modify. Amends secs. 508, 510 & 522 of 1967 PA 281 (MCL 206.508 et seq.). TIE BAR WITH: SB 0345'25
Individual income tax: income; certain references in the income tax act; make gender neutral. Amends secs. 311, 504 & 522 of 1967 PA 281 (MCL 206.311 et seq.). TIE BAR WITH: HJR F'23