Gavin Howe
In the state of Utah, there are several property tax exemption laws in place. These include a 45% exemption on primary residences, which applies to most homeowners in the state. This means that the taxable value of a property is 55% of its market value. Additionally, non-profit and charitable organizations can apply to have their real property and personal business property exempted from taxation. There are also provisions for properties used for educational purposes, religious exemptions, and properties used as nonprofit hospitals or nursing homes.
| Characteristics | Values |
|---|---|
| State law | The Assessor’s Office is required to verify and correctly classify all residential properties as primary or secondary residences. |
| State code | 59-2-103 allows for a 45% residential exemption on primary residences in Utah. |
| Definition of primary residence | A home that serves as the occupant’s primary domicile for at least 183 consecutive days in a year. |
| Who can occupy the residence | The owner, the owner’s spouse, another family member, or a tenant. |
| Number of exemptions per household | One |
| Non-profit organisations | Eligible to apply to have their real property and personal business property exempt from taxation. |
| Property used as a non-profit hospital or nursing home | Exempt from taxation. |
| Property owned by an individual or for-profit business, but leased by a non-profit organisation | Cannot be exempted. |
Explore related products
What You'll Learn
Primary residential exemption
The State of Utah allows for a 45% residential exemption on primary residences, meaning that those receiving the exemption only pay property tax on 55% of the home's fair market value. This is outlined in the Utah State Constitution, Article XIII, § 3, which allows County Assessors to exempt 45% of the fair market value of residential property and up to one acre of land.
To qualify for the primary residential exemption, a home must be the occupant's primary domicile for at least 183 consecutive days in a year. The owner, the owner's spouse, another family member, or a tenant may occupy the residence. A household may only claim one residential exemption in the State of Utah.
If a qualifying property is not currently receiving the exemption, the owner must apply for the primary residential exemption with the County Assessor. To do so, the owner must submit one of the following documents containing the physical address of the property in question as evidence: a driver's license, voter registration card, utility bill, rental agreement, or similar.
If the primary residential exemption is removed, the owner can reapply by submitting a new application to the County Assessor's Office and providing the necessary evidence.
Exploring the Constitutionality of Laws: Are They All Valid?
You may want to see also
Explore related products
Non-profit and charitable organisations
The Utah Supreme Court has ruled that "exclusive use" should be strictly construed, but minor deviations from it should not automatically disqualify an exemption application. For instance, clearly defined sections of a property can qualify for an exemption even if other sections are used for profit or another non-qualifying purpose.
To apply for a property tax exemption, non-profit organisations in Utah need to contact their local county tax assessor's office. They may also need to obtain 501c3 status from the federal government and submit Form TC-160 and a copy of the IRS' Letter of Determination to the Utah State Tax Commission.
Once the Board of Equalization grants an initial property tax exemption, the organisation must file an "Annual Statement for Continued Property Tax Exemption" every subsequent year by March 1st or March 31st with a late petition. This confirms that the organisation maintains its non-profit status and exclusive use of the property. If the form is not received by the deadline, the organisation will be notified of the Board's intention to revoke the exemption.
Martial Law in the Philippines: Understanding the Legal Basis
You may want to see also
Explore related products
![LLC Beginner's Guide [All-in-1]: Everything on How to Start, Run, and Grow Your First Company Without Prior Experience. Includes Essential Tax Hacks, Critical Legal Strategies, and Expert Insights](https://m.media-amazon.com/images/I/61SXdyvdqKL._AC_UY218_.jpg)
Property tax exemption criteria
The state of Utah offers a 45% exemption on property tax for primary residences, as outlined in the Utah State Constitution, Article XIII, § 3. This means that those receiving the exemption only pay property tax on 55% of the home's fair market value. To qualify as a primary residence, the property must be the occupant's primary domicile for at least 183 consecutive days in a year. This can include the owner, the owner's spouse, another family member, or a tenant. However, nightly and short-term rentals do not qualify for this exemption.
In addition, non-profit and charitable organizations can apply to have their real property and personal business property exempt from taxation. To qualify as a non-profit organization, the entity must meet specific criteria, including being organized on a non-profit basis, dedicating its property to its non-profit purpose, and not making any financial benefits available to private interests. Religious organizations with an IRS 501(c)(3) exemption also qualify for property tax exemption.
Furthermore, property used for educational purposes, such as schools or training facilities, may be exempt from property tax. The definition of "educational purposes" includes the physical or mental teaching, training, or conditioning of competitive athletes by a national governing body of sport recognized by the United States Olympic Committee.
For homeowners who believe they qualify for the primary residential exemption but are not currently receiving it, an application must be submitted to the County Assessor. This application requires supporting documentation, such as a driver's license, voter registration card, utility bills, or rental agreement.
Understanding Family Ties: Brother-in-Law Once Removed
You may want to see also
Explore related products
Part-year residential property
In Utah, "Part-Year residential property" refers to property that was not residential on January 1st but became residential property later in the calendar year. To qualify for the residential exemption, the property must be used as a primary residence for 183 or more consecutive calendar days during the calendar year in which the owner is applying for the exemption. This means that the owner, the owner's spouse, another family member, or a tenant must occupy the residence for at least 183 consecutive days in a year. Nightly and short-term rentals do not qualify for the exemption.
The Utah State Constitution, Article XIII, § 3, allows County Assessors to exempt from taxation 45% of the fair market value of residential property and up to one acre of land. This means that those receiving the exemption only pay property tax on 55% of the home's fair market value. The residential exemption applies to both homeowners and tenants, and it is the responsibility of the property owner to notify the county when they are no longer entitled to the exemption.
It is important to note that a household may only claim one residential exemption in the State of Utah. Additionally, if a property owner or owner's spouse claims a residential exemption for property in Utah as their primary residence, it creates a rebuttable presumption that they are domiciled in Utah for income tax purposes.
To determine if a property qualifies for the exemption, the Assessor's Office will verify and correctly classify all residential properties as primary or secondary residences. The Valuation Notice, received at the end of July, or the Tax Notice, received around the start of November, will indicate if the exemption has been granted.
Avogadro's Law: A Historical Perspective
You may want to see also
Explore related products
Residential Property Declaration
The State of Utah allows for a 45% exemption on the fair market value of residential property and up to one acre of land. This means that those receiving the exemption only pay property tax on 55% of the home's fair market value.
A primary residence is defined as a home that serves as someone's primary domicile and is occupied for at least 183 consecutive days in a year. The owner, the owner's spouse, another family member, or a tenant may occupy the residence. A household may only claim one residential exemption in the State of Utah.
If a qualifying property is not currently receiving the exemption, the owner will need to make an application with the County Assessor. When applying for the primary residential exemption, you will be required to submit one of the following documents containing the physical address of the property in question as evidence: a copy of your driver's license, voter registration card, utility bills, and/or rental agreement.
The PT-19A is required to be submitted to the County Assessor within 90 days after the day on which the owner receives notice from the County Assessor. The PT-19B is a one-time declaration sent to all residential property owners by May 2020, unless the mailing address, voter registration address, or driver's license address matches the physical location of the property.
Mastering First Amendment Law in a Week
You may want to see also
Frequently asked questions
Yes, Utah has a property tax exemption law. The Utah State Constitution, Article XIII, § 3, allows County Assessors to exempt from taxation 45% of the fair market value of an individual's primary residence and up to one acre of land.
A primary residence in Utah is defined as a home that serves as someone’s primary domicile and is occupied for at least 183 consecutive days in a year.
In addition to individuals with a primary residence in Utah, non-profit and charitable organizations are eligible to apply to have their real property and personal business property exempt from taxation.
