59-2-1115 - Exemption of certain tangible personal property.
59-2-1115. Exemption of certain tangible personal property.
(1) For purposes of this section:
(a) (i) "Acquisition cost" means all costs required to put an item of tangible personalproperty into service; and
(ii) includes:
(A) the purchase price for a new or used item;
(B) the cost of freight and shipping;
(C) the cost of installation, engineering, erection, or assembly; and
(D) sales and use taxes.
(b) (i) "Item of taxable tangible personal property" does not include an improvement toreal property or a part that will become an improvement.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may make rules defining the term "item of taxable tangible personal property."
(c) (i) "Taxable tangible personal property" means tangible personal property that issubject to taxation under this chapter.
(ii) "Taxable tangible personal property" does not include:
(A) tangible personal property required by law to be registered with the state before it isused:
(I) on a public highway;
(II) on a public waterway;
(III) on public land; or
(IV) in the air;
(B) a mobile home as defined in Section 41-1a-102; or
(C) a manufactured home as defined in Section 41-1a-102.
(2) (a) The taxable tangible personal property of a taxpayer is exempt from taxation if thetaxable tangible personal property has a total aggregate fair market value per county of $3,500 orless.
(b) An item of taxable tangible personal property is exempt from taxation if the item oftaxable tangible personal property:
(i) has an acquisition cost of $1,000 or less;
(ii) has reached a percent good of 15% or less according to a personal property schedule:
(A) published by the commission pursuant to Section 59-2-107; or
(B) for an item of personal property that is designated as expensed personal property inaccordance with Section 59-2-108, described in Section 59-2-108; and
(iii) is in a personal property schedule with a residual value of 15% or less.
(3) (a) For calendar years beginning on or after January 1, 2008, the commission shallincrease the dollar amount described in Subsection (2)(a):
(i) by a percentage equal to the percentage difference between the consumer price indexfor the preceding calendar year and the consumer price index for calendar year 2006; and
(ii) up to the nearest $100 increment.
(b) For purposes of this Subsection(3), the commission shall calculate the consumer priceindex as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(c) If the percentage difference under Subsection(3)(a)(i) is zero or a negative percentage,the consumer price index increase for the year is zero.
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules to administer this section and provide for uniform implementation.
Amended by Chapter 61, 2008 General Session
Amended by Chapter 382, 2008 General Session