Property Tax Relief Programs in Utah

Property taxes in Utah are assessed at the local level by counties, cities, towns, school districts and special districts. Residential real property is assessed at 55% of its fair market value and property tax rates vary by location. A list of the tax rates is available on the Utah State Tax Commission website. There is property tax relief available in Utah for homeowners who are age 66 or older or disabled, depending on income, disabled veterans and surviving spouses, and blind homeowners. There is also an indigent abatement or deferral program for homeowners age 66 or older who are disabled or are undergoing extreme hardship.

Circuit breaker

Utah residents who are at least 66 years old can claim a tax credit under the circuit breaker program if their household income is below a certain amount. The income limit is subject to change each year and for credits in 2010, the limit was $28,785 (based on 2009 household income). The amount of the credit depends on household income and ranged from $105 up to $853 in 2010. Homeowners can qualify for an additional credit equal to the property tax on 20% of the fair market value of the residence.

Homeowners, mobile homeowners, and renters can qualify for this credit. Surviving spouses under age 66 who meet the income requirements also qualify. To claim the credit, homeowners and mobile homeowners should file Form TC-40CY with the local county government office by September 1. Information on the individual county governments can be looked up on the Utah State Government website. Renters claim the credit by filing Form TC-40CB with the Utah State Tax Commission by December 31.

Disabled veterans

Veterans who have more than a 10% disability from military service can qualify for a property tax exemption in Utah. The maximum exemption is $228,931 (for 2010) and the amount of the exemption is based on the percentage of disability as certified by the Veterans’ Administration. Unmarried surviving spouses of qualifying veterans can also qualify for this exemption. To claim the exemption, proof of military service and disability must be filed with the local county government,

Blind exemption

Homeowners in Utah who are legally blind can qualify for a property tax exemption of up to $11,500 of the taxable value of their property regardless of their age or income. To claim this exemption an application must be filed with the local county government with a statement signed by an ophthalmologist. Surviving spouses of legally blind homeowners can also qualify for the exemption.

Indigent abatement or deferral

Homeowners in Utah who are at least 66 years old and qualify for the circuit breaker program may also qualify for an indigent abatement or deferral. These abatements or deferrals, which are granted at each county’s discretion, may also be available to homeowners under age 66 who have a disability or are facing extreme hardship.

The abatement can be a reduction of up to 50 percent of the tax due, up to a certain maximum amount. With a deferral, the property taxes do not have to be paid until there is a change of ownership of the property, but interest accrues on the unpaid taxes. Applications for the abatement or deferral should be made with the local county government by September 1, along with proof of ownership, income, disability or hardship.

Sources:
City & County Government – Utah State Government
Form TC-40CB – Renter Refund Application – Utah State Tax Commission
Form TC-40CY – Low Income Abatement and Homeowner’s Tax Credit Application – Utah State Tax Commission
Property Tax Abatement, Deferral and Exemption Programs for Individuals – Utah State Government
Tax Rates – Utah State Tax Commission
Tax Relief Programs – Salt Lake County Treasurer

Reference:

• The Facts on Utah’s Tax Climate: www.taxfoundation.org/research/topic/61.html
• Property Taxes ‘” Utah Tax Commission: propertytax.utah.gov/
• Three Primary Taxes, Property Tax ‘” Utah State Government: www.tax.utah.gov/training/understanding/propertytax.html