Q. What is the primary residential exemption?
A. The primary residential exemption is a provision of Utah code which grants a 45% decrease in the property tax of the property. A primary residence is defined as a dwelling that serves as someone's primary domicile and is occupied for at least 183 consecutive days in a year. Only one (1) exemption may be claimed per household within the State of Utah.
Q. I own multiple residences in the state of Utah. How is the primary residential exemption applied?
A. If you own multiple residences, they must be the primary residence of a tenant to receive the exemption. A tenant can be a family member and doesn't have to pay rent. Vacation rentals, summer homes, recreational cabins, or second homes do not qualify for the exemption.
Q. What happens if I don't submit the form to the Salt Lake County Assessor's Office?
A. Per Utah law, Salt Lake County will remove the exemption if you fail to complete the declaration within 30 days from the date of the mailing. Once the exemption is removed, you must reapply and submit evidence such as your driver's license, voter registration, rental agreement and/or documentation. However, if you submit your declaration timely using the online process, no supporting documentation is required.
Q. The declaration contains a statement that "creates a rebuttable presumption that the property owner and the property owner's spouse have domicile in Utah for income tax purposes." What does that mean?
A. Anyone claiming the residential exemption in Utah is also subject to Utah income tax. If you and your spouse own the property and claim the exemption, both of your incomes, regardless of where it is earned, may be subject to Utah state income tax. For most people, this isn't an issue. If you have concerns that it may affect you, please direct those questions to an income tax professional.