01-09 14:14 H.B. 155
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Personal Property Tax Exemption Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jason B. Kyle
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LONG TITLE
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General Description:
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This bill modifies provisions related to exemption of personal property from property tax.
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Highlighted Provisions:
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This bill:
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▸ modifies the qualifications for tangible personal property tax to be exempt from property
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tax.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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59-2-1115, as last amended by Laws of Utah 2022, Chapters 41, 275 and 293
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 59-2-1115 is amended to read:
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59-2-1115 . Exemption of certain tangible personal property.
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(1) As used in this section:
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(a)(i) "Item of taxable tangible personal property" does not include an improvement
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to real property or a part that will become an improvement.
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(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
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the commission may make rules defining the term "item of taxable tangible
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personal property."
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(b)(i) "Supply" means taxable tangible personal property that is:
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(A) not held for sale in the ordinary course of business;
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(B) either carried on hand and for which no record of consumption is taken in
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ordinary business or typically used up within the calendar year; and
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(C) used in the provision of the taxpayer's business activity. H.B. 155 01-09 14:14
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(ii) "Supply" includes an office supply, a shipping supply, a maintenance supply, a
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replacement part, a lubricating oil, a fuel, or an item consumed in the course of
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operating the business.
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(iii) "Supply" does not include furniture, a fixture, machinery, equipment, a
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computer, a cellular telephone, or a vehicle.
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(c)(i) "Taxable tangible personal property" means tangible personal property that is
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subject to taxation under this chapter.
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(ii) "Taxable tangible personal property" does not include:
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(A) tangible personal property required by law to be registered with the state
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before it is used on a public highway, public waterway, or public land or in the
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air;
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(B) a mobile home as defined in Section 41-1a-102; or
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(C) a manufactured home as defined in Section 41-1a-102.
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(2)(a) In accordance with Utah Constitution, Article XIII, Section 3, Subsection
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(2)(a)(vi), which provides that the Legislature may by statute exempt tangible
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personal property that, if subject to property tax, would generate an inconsequential
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amount of revenue, the Legislature exempts the tangible personal property described
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in this Subsection (2).
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(b) The taxable tangible personal property of a taxpayer is exempt from taxation if the
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taxable tangible personal property has a total aggregate taxable value per county of [
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$25,000] $100,000 or less.
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(c) For an item of taxable tangible personal property that is not exempt under Subsection
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(2)(b), the item is exempt from taxation if:
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(i) the item is owned by a business and is not critical to the actual business operation
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of the business; and
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(ii) the acquisition cost of the item is less than $500.
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(d) A supply, including the cost of freight-in, is exempt from taxation.
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(3)(a) For a calendar year beginning on or after January 1, [2023] 2027, the commission
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shall increase the dollar amount described in Subsection (2)(b):
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(i) by a percentage equal to the percentage difference between the consumer price
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index for the preceding calendar year and the consumer price index for calendar
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year [2021] 2025; and
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(ii) up to the nearest $100 increment.
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(b) For purposes of this Subsection (3), the commission shall calculate the consumer
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price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
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(c) If the percentage difference under Subsection (3)(a)(i) is zero or a negative
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percentage, the consumer price index increase for the year is zero.
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(4)(a) For the first calendar year in which a taxpayer qualifies for an exemption
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described in Subsection (2)(b), a county assessor may require the taxpayer to file a
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signed statement described in Section 59-2-306.
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(b) If a taxpayer qualifies for an exemption described in Subsection (2)(b) and files a
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signed statement in accordance with Subsection (4)(a), a county assessor may not
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require the taxpayer to file a signed statement for each continuing consecutive year
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for which the taxpayer qualifies for the exemption.
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(c) If a taxpayer qualifies for an exemption described in Subsection (2)(c) for an item of
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tangible taxable personal property or in Subsection (2)(d) for a supply, a county
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assessor may not require the taxpayer to include the item on a signed statement
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described in Section 59-2-306.
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(5)(a) [Beginning in 2023, a] A county assessor shall send a notice to a taxpayer who
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becomes eligible for the exemption described in Subsection (2)(b).
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(b) The county assessor shall:
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(i) send the notice during the calendar year in which the taxpayer becomes eligible
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for the exemption and before the deadline to file a signed statement; and
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(ii) in the notice, inform the taxpayer that:
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(A) in accordance with Subsection (4)(b), the taxpayer is not required to file a
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signed statement for each continuing consecutive year for which the taxpayer
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qualifies for the exemption; and
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(B) the taxpayer shall notify the county assessor if the taxpayer's taxable tangible
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personal property exceeds the total aggregate taxable value described in
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Subsection (2)(b).
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(6) A signed statement with respect to qualifying exempt primary residential rental personal
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property is as provided in Section 59-2-103.5.
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(7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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commission may make rules to administer this section and provide for uniform
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implementation.
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Section 2. Effective date.
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This bill takes effect on January 1, 2026.
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