No. 29177 (Amendment): R884-24P-68. Property Tax Exemption for Taxable Tangible Personal Property with a Total Aggregate Fair Market Value of $3,500 or Less Pursuant to Utah Code Ann. Section 59-2-1115

DAR File No.: 29177
Filed: 10/31/2006, 01:45
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 338 (2006 General Session) provides a property tax exemption for certain tangible personal property. In administering this exemption, several issues have arisen. (DAR NOTE: H.B. 338 (2006) is found at Chapter 113, Laws of Utah 2006, and will be effective 01/01/2007.)

Summary of the rule or change:

This proposed section indicates that age-based vehicles do not qualify for this exemption; nor do items of personal property with a value before apportionment greater than $3,500. This proposed rule also indicates that aggregation is done on a county basis and requires a taxpayer to respond within 30 days to a request to indicate whether the taxpayer has less than $3,501 of taxable tangible personal property in the county.

State statutory or constitutional authorization for this rule:

Section 59-2-1115

Anticipated cost or savings to:

the state budget:

None--Any fiscal impacts were taken into account in H.B. 338 (2006).

local governments:

None--Any fiscal impacts were taken into account in H.B. 338 (2006).

other persons:

None--Any fiscal impacts were taken into account in H.B. 338 (2006).

Compliance costs for affected persons:

Individuals who qualify for this exemption may see a significant reduction in their property tax paperwork depending on the procedures adopted by the particular county.

Comments by the department head on the fiscal impact the rule may have on businesses:

Businesses who qualify for this exemption could see a reduction in their property tax paperwork in the County (or Counties) where they conduct business depending on the process adopted by that particular county. D'Arcy Dixon, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Property Tax
210 N 1950 W
SALT LAKE CITY UT 84134

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/15/2006

This rule may become effective on:

12/22/2006

Authorized by:

D'Arcy Dixon, Commissioner

RULE TEXT

R884. Tax Commission, Property Tax.

R884-24P. Property Tax.

R884-24P-68. Property Tax Exemption for Taxable Tangible Personal Property With a Total Aggregate Fair Market Value of $3,500 or Less Pursuant to Utah Code Ann. Section 59-2-1115.

(1) The purpose of this rule is to provide for the administration of the property tax exemption for a taxpayer whose taxable tangible personal property has a total aggregate fair market value of $3,500 or less.

(2) Total aggregate fair market value is determined by aggregating the fair market value of all taxable tangible personal property owned by a taxpayer within a county.

(3) "Taxable tangible personal property" does not include tangible personal property:

(a) subject to a uniform fee under Sections 59-2-405.1 or 59-2-405.2; and

(b) with a fair market value before apportionment greater than $3,500.

(4) A taxpayer shall apply for the exemption provided under Section 59-2-1115 within 30 days from the day the taxpayer is requested to indicate whether the taxpayer has less than $3501 of taxable tangible personal property in the county.

 

KEY: taxation, personal property, property tax, appraisals

Date of Enactment or Last Substantive Amendment: 2006

Notice of Continuation: April 5, 2002

Authorizing, and Implemented or Interpreted Law: 59-2-1115