Property Tax Circuit Breaker

State

Utah

Year

2022

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

The tax credit is determined according to seven brackets based on income. For renters, the value of the credit declines from 9.5% of rent to 2.5% of rent as income rises. The benefit is disbursed as a property tax credit for homeowners and as a direct rebate for renters. For purposes of calculating gross rent when a claimant's rent includes electricity or natural gas and the utility amount is not itemized, the commission shall deduct 7% of rent if the rent includes electricity or natural gas but not both; or 13% if the rent includes both electricity and natural gas. Homeowner applicants are also eligible for an additional exemption equal to a credit for the tax on 20% of the home's fair market value.

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 must have 2021 income that is less than $35,807 to qualify for the 2022 benefit. The applicant must own the property for the full calendar year for which the benefit is claimed. Applicants must be 66 or older as of December 31st of the year for which they are applying. Surviving spouses of any age are also eligible if they meet all of the other program requirements and were a part of the same household as the original claimant at the time of their death. The surviving spouse must not remarry. Individuals who are a dependent or claimed as a personal exemption on another individual's income tax return may not receive the homeowner's or renter's credit.

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 the commission 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_RR22

Footnotes

According to the state's web site, applications are available May 1. The renter’s credit may be claimed only for rent that does not constitute a “rental assistance payment". For homeowners, the application must be filed annually with the county by September 1. For renters, the Taxpayer Access Point (TAP) System for application submission is open from mid-April through 31 December annually. This is the fastest way to process a refund. All applications must be submitted before December 31 and can be submitted by mail, by fax, or in person.

Sources

Utah Code § 59-2-1202 ~ § 59-2-1209 (in effect for 2022)
Source Constitution: 
Utah Const. art. XIII, § 3
Utah, Tax Commission, Property Tax Relief Programs for Individuals, Publication 36 (February 2022)
[https://tax.utah.gov/forms/pubs/pub-36.pdf Accessed 09/21/2023]
View Archived Source

Utah, Tax Commission, Renter Refund Application (Circuit Breaker Application) Form TC-90CB (2022)
[https://tax.utah.gov/forms/current/tc-90cb.pdf Accessed 09/21/2023]
View Archived Source

Utah, Tax Commission, Low Income Abatement and Homeowners Tax Credit Application, Form TC-90CY (2022)
[https://tax.utah.gov/forms/current/tc-90cy.pdf Accessed 09/21/2023]
View Archived Source
Utah, Tax Commission, Property Tax Relief
[https://propertytax.utah.gov/tax-relief/ Accessed 09/21/2023]
View Archived Source

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