Utah 2025 Regular Session

Utah House Bill HB0155 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	01-09 14:14 H.B. 155
2	2	1
3	3	Personal Property Tax Exemption Amendments
4	4	2025 GENERAL SESSION
5	5	STATE OF UTAH
6	6	Chief Sponsor: Jason B. Kyle
7	7	2
8	8
9	9	3
10	10	LONG TITLE
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12	12	General Description:
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14	14	This bill modifies provisions related to exemption of personal property from property tax.
15	15	6
16	16	Highlighted Provisions:
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18	18	This bill:
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20	20	▸ modifies the qualifications for tangible personal property tax to be exempt from property
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22	22	tax.
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24	24	Money Appropriated in this Bill:
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26	26	None
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28	28	Other Special Clauses:
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30	30	This bill provides a special effective date.
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32	32	Utah Code Sections Affected:
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34	34	AMENDS:
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36	36	59-2-1115, as last amended by Laws of Utah 2022, Chapters 41, 275 and 293
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38	38
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40	40	Be it enacted by the Legislature of the state of Utah:
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42	42	Section 1. Section 59-2-1115 is amended to read:
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44	44	59-2-1115 . Exemption of certain tangible personal property.
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46	46	(1) As used in this section:
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48	48	(a)(i) "Item of taxable tangible personal property" does not include an improvement
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50	50	to real property or a part that will become an improvement.
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52	52	(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
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54	54	the commission may make rules defining the term "item of taxable tangible
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56	56	personal property."
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58	58	(b)(i) "Supply" means taxable tangible personal property that is:
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60	60	(A) not held for sale in the ordinary course of business;
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62	62	(B) either carried on hand and for which no record of consumption is taken in
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64	64	ordinary business or typically used up within the calendar year; and
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66	66	(C) used in the provision of the taxpayer's business activity. H.B. 155 01-09 14:14
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68	68	(ii) "Supply" includes an office supply, a shipping supply, a maintenance supply, a
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70	70	replacement part, a lubricating oil, a fuel, or an item consumed in the course of
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72	72	operating the business.
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74	74	(iii) "Supply" does not include furniture, a fixture, machinery, equipment, a
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76	76	computer, a cellular telephone, or a vehicle.
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78	78	(c)(i) "Taxable tangible personal property" means tangible personal property that is
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80	80	subject to taxation under this chapter.
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82	82	(ii) "Taxable tangible personal property" does not include:
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84	84	(A) tangible personal property required by law to be registered with the state
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86	86	before it is used on a public highway, public waterway, or public land or in the
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88	88	air;
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90	90	(B) a mobile home as defined in Section 41-1a-102; or
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92	92	(C) a manufactured home as defined in Section 41-1a-102.
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94	94	(2)(a) In accordance with Utah Constitution, Article XIII, Section 3, Subsection
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96	96	(2)(a)(vi), which provides that the Legislature may by statute exempt tangible
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98	98	personal property that, if subject to property tax, would generate an inconsequential
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100	100	amount of revenue, the Legislature exempts the tangible personal property described
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102	102	in this Subsection (2).
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104	104	(b) The taxable tangible personal property of a taxpayer is exempt from taxation if the
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106	106	taxable tangible personal property has a total aggregate taxable value per county of [
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108	108	$25,000] $100,000 or less.
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110	110	(c) For an item of taxable tangible personal property that is not exempt under Subsection
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112	112	(2)(b), the item is exempt from taxation if:
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114	114	(i) the item is owned by a business and is not critical to the actual business operation
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116	116	of the business; and
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118	118	(ii) the acquisition cost of the item is less than $500.
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120	120	(d) A supply, including the cost of freight-in, is exempt from taxation.
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122	122	(3)(a) For a calendar year beginning on or after January 1, [2023] 2027, the commission
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124	124	shall increase the dollar amount described in Subsection (2)(b):
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126	126	(i) by a percentage equal to the percentage difference between the consumer price
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128	128	index for the preceding calendar year and the consumer price index for calendar
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130	130	year [2021] 2025; and
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132	132	(ii) up to the nearest $100 increment.
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134	134	(b) For purposes of this Subsection (3), the commission shall calculate the consumer
135	135	- 2 - 01-09 14:14 H.B. 155
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137	137	price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
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139	139	(c) If the percentage difference under Subsection (3)(a)(i) is zero or a negative
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141	141	percentage, the consumer price index increase for the year is zero.
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143	143	(4)(a) For the first calendar year in which a taxpayer qualifies for an exemption
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145	145	described in Subsection (2)(b), a county assessor may require the taxpayer to file a
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147	147	signed statement described in Section 59-2-306.
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149	149	(b) If a taxpayer qualifies for an exemption described in Subsection (2)(b) and files a
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151	151	signed statement in accordance with Subsection (4)(a), a county assessor may not
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153	153	require the taxpayer to file a signed statement for each continuing consecutive year
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155	155	for which the taxpayer qualifies for the exemption.
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157	157	(c) If a taxpayer qualifies for an exemption described in Subsection (2)(c) for an item of
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159	159	tangible taxable personal property or in Subsection (2)(d) for a supply, a county
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161	161	assessor may not require the taxpayer to include the item on a signed statement
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163	163	described in Section 59-2-306.
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165	165	(5)(a) [Beginning in 2023, a] A county assessor shall send a notice to a taxpayer who
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167	167	becomes eligible for the exemption described in Subsection (2)(b).
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169	169	(b) The county assessor shall:
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171	171	(i) send the notice during the calendar year in which the taxpayer becomes eligible
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173	173	for the exemption and before the deadline to file a signed statement; and
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175	175	(ii) in the notice, inform the taxpayer that:
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177	177	(A) in accordance with Subsection (4)(b), the taxpayer is not required to file a
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179	179	signed statement for each continuing consecutive year for which the taxpayer
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181	181	qualifies for the exemption; and
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183	183	(B) the taxpayer shall notify the county assessor if the taxpayer's taxable tangible
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185	185	personal property exceeds the total aggregate taxable value described in
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187	187	Subsection (2)(b).
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189	189	(6) A signed statement with respect to qualifying exempt primary residential rental personal
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191	191	property is as provided in Section 59-2-103.5.
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193	193	(7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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195	195	commission may make rules to administer this section and provide for uniform
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197	197	implementation.
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199	199	Section 2. Effective date.
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201	201	This bill takes effect on January 1, 2026.
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