Property Tax Circuit Breaker

State

Utah

Year

2015

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

For homeowners, a tax credit is determined according to seven brackets based on income, with the maximum eligible income being $31,208. Homeowners are eligible for an additional credit, equal to the taxes on 20% of the home value. For renters, relief declines from 9.5% to 2.5% as income rises. The benefit is disbursed as a property tax credit for homeowners and as a direct rebate for renters. For homeowners and renters, the maximum relief in 2015 is $924.

How is Benefit Disbursed

Credit to the property tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Renter

Surviving Spouse

Other Criteria

Description of Eligibility Criteria

Homeowners, mobile homeowners, and renters who are 66 years of age or older as of December 31 whose household income is less than $31,208 in 2014 are eligible to apply in 2015. Surviving spouses of any age are also eligible. For the credit, the applicant must be born on or before December 31, 1942 and is 65 years or older. Going forward, the age requirement will increase to 66 for those born between 1943 and 1959 and 67 for those born on or after January 1, 1960. The household income eligibility for both homeowners and renters will be determined by a percentage equal to the difference between the consumer price index for the preceding calendar year and the consumer price index for calendar year 2006. A claimant's household income is decreased by $1,000 for a dependent.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

For renters, the applicant files directly with the State Tax Commission and it mails a payment directly to the applicant. For homeowners, the applicant files with the county. The county grants the credit and is reimbursed by the state.

Record ID

UT105_RR15

Footnotes

The renter’s credit may be claimed only for rent that does not constitute a “rental assistance payment.”

Sources

Utah Code § 59-2-1202 ~ § 59-2-1209 (in effect for 2015)
Source Constitution: 
Utah Const. art. XIII, § 3
Property Tax Relief Table (2015) Utah State Tax Commission, Property Tax Division
[http://propertytax.utah.gov/library/pdf/taxrate_pdfs/2015TaxReliefTable.pdf Accessed on 06/02/2016] View Archived Source

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