H.B. 539
LEGISLATIVE GENERAL COUNSEL
6 Approved for Filing: A.V. Arthur 6
6 02-22-23 10:56 AM 6
H.B. 539
1 VETERAN PROPERTY TAX EXEMPTI ON
2 2023 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Jon Hawkins
5 Senate Sponsor: ____________
6
7LONG TITLE
8General Description:
9 This bill amends the veteran armed forces property tax exemption.
10Highlighted Provisions:
11 This bill:
12 <creates a process for a veteran with a 100% service-connected disability that is
13permanent and total to apply for a veteran armed forces property tax exemption
14before the veteran purchases a residence.
15Money Appropriated in this Bill:
16 None
17Other Special Clauses:
18 None
19Utah Code Sections Affected:
20AMENDS:
21 59-2-1904, as enacted by Laws of Utah 2019, Chapter 453
22
23Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 59-2-1904 is amended to read:
25 59-2-1904. Veteran armed forces exemption -- Application.
26 (1) As used in this section[, "default]:
27 (a) "Default application deadline" means the application deadline described in
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28Subsection (3)(a).
29 (b) "Qualifying disabled veteran claimant" means a veteran claimant who has a 100%
30service-connected disability rating by the Veterans Benefits Administration that is permanent
31and total.
32 (2) A veteran claimant may claim an exemption in accordance with Section 59-2-1903
33and this section if the veteran claimant owns the property eligible for the exemption at any time
34during the calendar year for which the veteran claimant claims the exemption.
35 (3) (a) Except as provided in Subsection (4) [or], (5), or (7), a veteran claimant shall
36file, on or before September 1 of the calendar year for which the veteran claimant is applying
37for the exemption, [file] an application for an exemption described in Section 59-2-1903 with
38the county in which the veteran claimant resides on September 1 of that calendar year.
39 (b) An application described in Subsection (3)(a) shall include:
40 (i) a copy of the veteran's certificate of discharge from military service or other
41satisfactory evidence of eligible military service; and
42 (ii) for an application submitted under the circumstances described in Subsection
43(5)(a), a statement, issued by a military entity, that gives the date on which the written decision
44described in Subsection (5)(a) takes effect.
45 (c) A veteran claimant who is claiming an exemption for a veteran with a disability or a
46deceased veteran with a disability, shall ensure that as part of the application described in this
47Subsection (3), the county has on file, for the veteran related to the exemption, a statement of
48disability:
49 (i) issued by a military entity; and
50 (ii) that lists the percentage of disability for the veteran with a disability or deceased
51veteran with a disability.
52 (d) If a veteran claimant is in compliance with Subsection (3)(c), a county may not
53require the veteran claimant to file another statement of disability, except under the following
54circumstances:
55 (i) the percentage of disability has changed for the veteran with a disability or the
56deceased veteran with a disability; or
57 (ii) the veteran claimant is not the same individual who filed an application for the
58exemption for the calendar year immediately preceding the current calendar year. 02-22-23 10:56 AM H.B. 539
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59 (e) A county that receives an application described in Subsection (3)(a) shall, within 30
60days after the day on which the county received the application, provide the veteran claimant
61with a receipt that states that the county received the veteran claimant's application.
62 (4) A county may extend the default application deadline for an initial or amended
63application until December 31 of the year for which the veteran claimant is applying for the
64exemption if the county finds that good cause exists to extend the default application deadline.
65 (5) A county shall extend the default application deadline by one additional year if, on
66or after January 4, 2004:
67 (a) a military entity issues a written decision that:
68 (i) (A) for a potential claimant who is a living veteran, determines the veteran is a
69veteran with a disability; or
70 (B) for a potential claimant who is the unmarried surviving spouse or minor orphan of
71a deceased veteran, determines the deceased veteran was a deceased veteran with a disability at
72the time the deceased veteran with a disability died; and
73 (ii) takes effect in a year before the current calendar year; or
74 (b) the county legislative body determines that:
75 (i) the veteran claimant or a member of the veteran claimant's immediate family had an
76illness or injury that prevented the veteran claimant from filing the application on or before the
77default application deadline;
78 (ii) a member of the veteran claimant's immediate family died during the calendar year
79of the default application deadline;
80 (iii) the veteran claimant was not physically present in the state for a time period of at
81least six consecutive months during the calendar year of the default application deadline; or
82 (iv) the failure of the veteran claimant to file the application on or before the default
83application deadline:
84 (A) would be against equity or good conscience; and
85 (B) was beyond the reasonable control of the veteran claimant.
86 (6) (a) A county shall allow a veteran claimant to amend an application described in
87Subsection (3)(a) after the default application deadline if, on or after January 4, 2004, a military
88entity issues a written decision:
89 (i) that the percentage of disability has changed: H.B. 539 02-22-23 10:56 AM
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90 (A) for a veteran with a disability, if the veteran with a disability is the veteran
91claimant; or
92 (B) for a deceased veteran with a disability, if the claimant is the unmarried surviving
93spouse or minor orphan of a deceased veteran with a disability; and
94 (ii) that takes effect in a year before the current calendar year.
95 (b) A veteran claimant who files an amended application under Subsection (6)(a) shall
96include a statement, issued by a military entity, that gives the date on which the written
97decision described in Subsection (6)(a) takes effect.
98 (7) (a) A qualifying disabled veteran claimant may submit an application described in
99Subsection (3)(b) before the qualifying disabled veteran claimant owns a residence if the
100qualifying disabled veteran claimant:
101 (i) intends to purchase the residence as evidenced by a real estate purchase contract or
102similar documentation;
103 (ii) files the application in the county where the residence that the qualifying disabled
104veteran claimant intends to purchase is located; and
105 (iii) intends to use the residence as the qualifying disabled veteran claimant's primary
106residence.
107 (b) (i) The county shall process the application and send the qualifying disabled veteran
108claimant a receipt, which shall also include documentation that:
109 (A) the application is preliminarily approved or denied; and
110 (B) if the application is preliminarily approved, the amount of the qualifying disabled
111veteran claimant's tax exemption calculated in accordance with Section 59-2-1903.
112 (ii) The county shall provide the receipt within 15 business days after the day on which
113the county received the application.
114 (8) After issuing the receipt described in Subsection (3)(e) or (7)(b), a county may not
115require a veteran claimant to file another application under Subsection (3)(a) or (7)(a), except
116under the following circumstances relating to the veteran claimant:
117 (a) the veteran claimant applies all or a portion of an exemption to tangible personal
118property;
119 (b) the percentage of disability changes for a veteran with a disability or a deceased
120veteran with a disability; 02-22-23 10:56 AM H.B. 539
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121 (c) the veteran with a disability dies;
122 (d) a change in the veteran claimant's ownership of the veteran claimant's primary
123residence;
124 (e) a change in the veteran claimant's occupancy of the primary residence for which the
125veteran claimant claims an exemption under this section; or
126 (f) for an exemption relating to a deceased veteran with a disability or a veteran who
127was killed in action or died in the line of duty, the veteran claimant is not the same individual
128who filed an application for the exemption for the calendar year immediately preceding the
129current calendar year.
130 [(8)] (9) If a veteran claimant is the grantor of a trust holding title to real or tangible
131personal property for which an exemption described in Section 59-2-1903 is claimed, a county
132may allow the veteran claimant to claim a portion of the exemption and be treated as the owner
133of that portion of the property held in trust, if the veteran claimant proves to the satisfaction of
134the county that:
135 (a) title to the portion of the trust will revest in the veteran claimant upon the exercise
136of a power by:
137 (i) the veteran claimant as grantor of the trust;
138 (ii) a nonadverse party; or
139 (iii) both the veteran claimant and a nonadverse party;
140 (b) title will revest as described in Subsection [(8)(a)] (9)(a), regardless of whether the
141power described in Subsection [(8)(a)] (9)(a) is a power to revoke, terminate, alter, amend, or
142appoint; and
143 (c) the veteran claimant satisfies the requirements described in this part for the
144exemption described in Section 59-2-1903.
145 [(9)] (10) A county may verify that real property for which a veteran claimant applies
146for an exemption is the veteran claimant's primary residence.
147 [(10)] (11) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
148Act, the commission may, by rule:
149 (a) establish procedures and requirements for amending an application described in
150Subsection (3)(a);
151 (b) for purposes of Subsection (5)(b), define the terms: H.B. 539 02-22-23 10:56 AM
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152 (i) "immediate family"; or
153 (ii) "physically present"; [or]
154 (c) for purposes of Subsection (5)(b), [prescribe] provide the circumstances under
155which the failure of a veteran claimant to file an application on or before the default application
156deadline:
157 (i) would be against equity or good conscience; and
158 (ii) is beyond the reasonable control of a veteran claimant[.]; or
159 (d) for purposes of Subsection (7)(a), establish the type of documentation that is
160evidence of intent to purchase.