HB 124

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  Calvin R. Musselman proposes the following substitute bill:
1Veterans Amendments
  2026 GENERAL SESSION
  STATE OF UTAH
  Chief Sponsor: Jill Koford
  Senate Sponsor: Calvin R. Musselman
2
3   LONG TITLE
4   General Description:
5This bill amends provisions related to veterans.
6   Highlighted Provisions:
7This bill:
8▸ clarifies that a veteran claimant generally needs to apply only once for the property tax
9   exemption available to military members who are disabled or killed in the line of duty or
10   their surviving family members;
11▸ provides the circumstances under which a county may require reapplication;
12▸ provides the circumstances under which a county may require a statement of disability or
13   other proof of disability;
14▸ makes the accreditation requirements for a person assisting a veteran in applying for VA
15   benefits applicable only if federal law requires accreditation;
16▸ makes the prohibition on a person assisting a veteran in applying for VA benefits from
17   receiving compensation or guaranteeing benefits applicable only if federal law prohibits
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18   receipt of compensation or guaranteeing benefits;
19▸ requires disclosure of charges for assisting a veteran with an initial application, if any;
20   and
21▸ makes technical and conforming changes.
22   Money Appropriated in this Bill:
23None
24   Other Special Clauses:
25This bill provides retrospective operation.
26   Utah Code Sections Affected:
27   AMENDS:
2859-2a-501 (Effective 05/06/26) (Applies beginning 01/01/26), as renumbered and
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29amended by Laws of Utah 2025, Chapter 172
3059-2a-502 (Effective 05/06/26) (Applies beginning 01/01/26), as renumbered and
31amended by Laws of Utah 2025, Chapter 172
3271A-4-102 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 231
33
34   Be it enacted by the Legislature of the state of Utah:
35Section 1. Section 59-2a-501 is amended to read:
3659-2a-501 (Effective 05/06/26) (Applies beginning 01/01/26). Veteran armed
37   forces exemption amount.
38   (1) [In accordance with this part, the ] The amount of taxable value of eligible property
39described in Subsection (2) or (3) is exempt from taxation[ if the eligible property is
40owned by a veteran claimant].
41   (2)(a) Except as provided in Subsection (3), the amount of taxable value of eligible
42property that is exempt under Subsection (1) is equal to the percentage of disability
43described in the statement of disability multiplied by the adjusted taxable value limit.
44(b) The amount of an exemption calculated under Subsection (2)(a) may not exceed the
45taxable value of the eligible property.
46(c) A county shall consider a veteran with a disability to have a 100% disability,
47regardless of the percentage of disability described on the statement of disability, if
48the United States Department of Veterans Affairs certifies the veteran in the
49classification of individual unemployability.
50(d) A county may not allow an exemption claimed under this section if the percentage of
51disability listed on the statement of disability is less than 10%.
52   (3) The amount of taxable value of eligible property that is exempt under Subsection (1) is
53equal to the total taxable value of the veteran claimant's eligible property if the property
54is owned by:
55(a) the unmarried surviving spouse of a veteran who was killed in action or died in the
56line of duty;
57(b) a minor orphan of a veteran who was killed in action or died in the line of duty; or
58(c) the unmarried surviving spouse or minor orphan of a deceased veteran with a
59disability:
60(i) who served in the military service of the United States or the state [prior to] before
61January 1, 1921; and
62(ii) whose percentage of disability described in the statement of disability is 10% or
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63more.
64   (4) For purposes of this [section and Section 59-2a-502] exemption, an individual who
65received an honorable or general discharge from military service of an active component
66of the United States Armed Forces or a reserve component of the United States Armed
67Forces:
68(a) is presumed to be a citizen of the United States; and
69(b) may not be required to provide additional proof of citizenship to establish that the
70individual is a citizen of the United States.
71   (5) The Department of Veterans and Military Affairs created in Section 71A-1-201 shall,
72through an informal hearing held in accordance with Title 63G, Chapter 4,
73Administrative Procedures Act, resolve each dispute arising under this section
74concerning an individual's status as a veteran with a disability.
75Section 2. Section 59-2a-502 is amended to read:
7659-2a-502 (Effective 05/06/26) (Applies beginning 01/01/26). Application --
77   Rulemaking authority.
78   (1) A veteran claimant may claim an exemption [in accordance with] described in Section
7959-2a-501[ and this section] if the veteran claimant[ ] :
80(a) owns the property eligible for the exemption at any time during the calendar year for
81which the veteran claimant claims the exemption[.] ; and
82(b) complies with this section.
83   (2)(a) [Except as provided in ] Unless an exception described in Section 59-2a-108 or
84Subsection (3) or (5) applies, a veteran claimant shall file[,] an application for an
85exemption described in Section 59-2a-501 on or before September 1 of the calendar
86year for which the veteran claimant is first applying for the exemption[,] .
87(b) [an application for an exemption described in Section 59-2a-501] A veteran claimant
88shall file the application with the county in which the veteran claimant resides on
89September 1 of [that] the calendar year for which the veteran claimant is applying for
90the exemption.
91[(b)] (c) An application [described in Subsection (2)(a) ]shall include:
92(i) a copy of the veteran's certificate of discharge from military service or other
93satisfactory evidence of eligible military service; and
94(ii) for an application submitted under the circumstances described in Subsection
95(4)(a), a statement, issued by a military entity, that gives the date on which the
96written decision described in Subsection (4)(a) takes effect.
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97[(c)] (d) A veteran claimant who is claiming an exemption for a veteran with a disability
98or a deceased veteran with a disability shall ensure that[, as part of the application
99described in this Subsection (2),] the county has on file[, for the veteran related to the
100exemption,] a statement of disability for the veteran with a disability or the deceased
101veteran with a disability.
102[(d)] (e) If a veteran claimant is in compliance with Subsection [(2)(c)] (2)(d), a county
103may not require the veteran claimant to file another statement of disability or other
104proof of disability, except under the following circumstances:
105(i) the percentage of disability has changed for the veteran with a disability or the
106deceased veteran with a disability; or
107(ii) the veteran claimant is not the same individual who filed [an] the application for
108the exemption[ for the calendar year immediately preceding the current calendar
109year].
110[(e)] (f) A county that receives an application described in Subsection (2)(a) shall provide
111the veteran claimant, within 30 days after the day on which the county received the
112application, [provide the veteran claimant ]with a receipt that states that the county
113received the veteran claimant's application.
114   (3) A county shall extend the September 1 application deadline by one additional year if[,
115on or after January 4, 2004]:
116(a) a military entity issues a written decision on or after January 4, 2004, that:
117(i)(A) for a [potential] veteran claimant who is a living veteran, determines the
118veteran is a veteran with a disability; or
119(B) for a [potential] veteran claimant who is the unmarried surviving spouse or
120minor orphan of a deceased veteran, determines the deceased veteran was a
121deceased veteran with a disability at the time the deceased veteran with a
122disability died; and
123(ii) takes effect in a year before the current calendar year; or
124(b) the county legislative body determines that:
125(i) the veteran claimant or a member of the veteran claimant's immediate family had
126an illness or injury that prevented the veteran claimant from filing the application
127on or before the September 1 application deadline;
128(ii) a member of the veteran claimant's immediate family died during the calendar
129year of the September 1 application deadline;
130(iii) the veteran claimant was not physically present in the state for a time period of at
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131least six consecutive months during the calendar year of the September 1
132application deadline; or
133(iv) the failure of the veteran claimant to file the application on or before the
134September 1 application deadline:
135(A) would be against equity or good conscience; and
136(B) was beyond the reasonable control of the veteran claimant.
137   (4)(a) A county shall allow a veteran claimant to amend an application described in
138Subsection [(2)(b)] (2) after the application deadline if, on or after January 4, 2004, a
139military entity issues a written decision:
140(i) that the percentage of disability has changed:
141(A) for a veteran with a disability, if the veteran with a disability is the veteran
142claimant; or
143(B) for a deceased veteran with a disability, if the claimant is the unmarried
144surviving spouse or minor orphan of a deceased veteran with a disability; and
145(ii) that takes effect in a year before the current calendar year.
146(b) A veteran claimant who files an amended application under Subsection (4)(a) shall
147include a statement, issued by a military entity, that gives the date on which the
148written decision described in Subsection (4)(a) takes effect.
149   (5)(a) A qualifying disabled veteran claimant may submit an application described in
150Subsection [(2)(b)] (2) before the qualifying disabled veteran claimant owns a
151residence if the qualifying disabled veteran claimant:
152(i) intends to purchase the residence as evidenced by a real estate purchase contract or
153similar documentation;
154(ii) files the application in the county where the residence that the qualifying disabled
155veteran claimant intends to purchase is located; and
156(iii) intends to use the residence as the qualifying disabled veteran claimant's primary
157residence.
158(b)(i) The county shall process the application and send the qualifying disabled
159veteran claimant a receipt, which shall also include documentation that:
160(A) the application is preliminarily approved or denied; and
161(B) if the application is preliminarily approved, the amount of the qualifying
162disabled veteran claimant's tax exemption calculated in accordance with
163Section 59-2a-501.
164(ii) The county shall provide the receipt within 15 business days after the day on
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165which the county received the application.
166   (6) After issuing the receipt described in Subsection [(2)(e)] (2)(f) or (5)(b), a county may
167not require a veteran claimant to file another application under Subsection (2) or (5),
168except under the following circumstances relating to the veteran claimant:
169(a) the veteran claimant applies all or a portion of an exemption to tangible personal
170property;
171(b) the percentage of disability changes for a veteran with a disability or a deceased
172veteran with a disability;
173(c) the veteran with a disability dies;
174(d) [a change in the veteran claimant's ]ownership of the veteran claimant's primary
175residence changes;
176(e) [a change in ]the veteran claimant's occupancy of the primary residence for which the
177veteran claimant claims an exemption [under this section] changes; or
178(f) for an exemption relating to a deceased veteran with a disability or a veteran who was
179killed in action or died in the line of duty, the veteran claimant is not the same
180individual who filed an application for the exemption[ for the calendar year
181immediately preceding the current calendar year].
182   (7) A county may verify that real property for which a veteran claimant applies for an
183exemption is the veteran claimant's primary residence.
184   (8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
185commission may, by rule:
186(a) establish procedures and requirements for amending an application described in
187Subsection (2);
188(b) for purposes of Subsection (3)(b), define the terms:
189(i) "immediate family"; or
190(ii) "physically present";
191(c) for purposes of Subsection (3)(b), provide the circumstances under which the failure
192of a veteran claimant to file an application on or before the September 1 application
193deadline:
194(i) would be against equity or good conscience; and
195(ii) is beyond the reasonable control of a veteran claimant; or
196(d) for purposes of Subsection (5)(a), establish the type of documentation that is
197evidence of intent to purchase.
198Section 3. Section 71A-4-102 is amended to read:
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19971A-4-102 (Effective 05/06/26). Requirements and prohibitions regarding
200   assisting a claimant.
201   (1) [Each] If required by federal law, a person offering to assist [veterans] a veteran in
202applying for VA benefits shall[:]
203[(a)] be accredited, in compliance with the provisions of C.F.R.[,] Title 38, Pensions,
204Bonuses, and Veterans' Relief, or, if under the supervision of an accredited attorney,
205meet the provisions of C.F.R.[,] Title 38, pertaining to authorized claim
206representation under an attorney[; and] .
207[(b) disclose in writing, in a format approved by the department that the claimant can
208retain, the federal laws, regulations, and rules governing assistance for VA benefits.]
209   (2)(a) A person offering to assist a veteran in applying for VA benefits shall disclose in
210writing that a claimant can retain and in a format the department approves the federal
211laws, regulations, and rules governing assistance for VA benefits.
212(b) The disclosure [required by Subsection (1)(b) ]shall specifically include:
213[(a)] (i) the person's:
214[(i)] (A) name;
215[(ii)] (B) business address;
216[(iii)] (C) business phone number; and
217[(iv)] (D) the registration number from the VA;
218[(b)] (ii) a statement of the claimant's rights regarding the assistance for VA benefits,
219including that there is no charge or, if allowed by federal law, the charges, to the
220claimant or a member of the claimant's family for assistance with the initial
221benefits application; and
222[(c)] (iii) a statement that if, as a result of the person providing assistance for a claim,
223income is accrued to the assisting person from the sale of a product or other
224services to the claimant, the income is both justified and reasonable as compared
225with income from similar products and services available in the state.
226   (3) No provisions of the form may be struck out or designated as nonapplicable.
227   (4) Disclosure forms, when completed, shall be:
228(a) signed by both the person providing assistance and the claimant; and
229(b) retained for three years by the assisting person.
230   (5) [Copies ] The assisting person shall provide a copy of the disclosure form [shall be
231provided ]to:
232(a) the veteran on the day the form is completed and signed; and
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233(b) the department within five working days.
234   (6) A person seeking to receive compensation for preparation, presentation or prosecution
235of, or advising, consulting or assisting an individual with a VA benefits matter that is
236allowed by federal law, regulation, and rule governing the assistance for VA benefits
237shall, before rendering any services, document in a written agreement the terms of the
238compensation signed by both parties that complies with 38 C.F.R. Sec. 14.636.
239   (7) [A ] Except as permitted by federal law or regulation governing the assistance for VA
240benefits, a person may not:
241(a) receive compensation for preparation, presentation, or prosecution of, or advising,
242consulting or assisting an individual with, a VA benefits matter[, except as permitted
243under federal law or regulation governing the assistance for VA benefits];
244(b) receive compensation for referring an individual to another person to prepare, present
245or prosecute, or advise, consult or assist the individual with, a VA benefits matter;
246(c) receive, with respect to an individual's VA benefits matter, compensation for services
247rendered before the date on which a notice of disagreement, decision review, or
248appeal is filed, whichever comes first;
249(d) guarantee, either directly or by implication, that any individual will receive specific
250VA benefits or that any individual will receive a specific level, percentage, or amount
251of VA benefits; or
252(e) receive excessive or unreasonable fees as compensation for preparation, presentation
253or prosecution of, or advising, consulting or assisting an individual with, a VA
254benefits matter as described in 38 C.F.R. Sec. 14.636.
255   (8) The division may:
256(a) accept complaints alleging violations of this section; and
257(b) bring an enforcement action under Title 13, Chapter 11, Utah Consumer Sales
258Practices Act, against a person [who] that violates this section.
259   (9) Nothing in this chapter precludes a person from acting in a manner permitted by federal
260law.
261Section 4. Effective Date.
262   This bill takes effect on May 6, 2026.
263Section 5. Retrospective operation.
264   The actions affecting the following sections have retrospective operation to January 1,
265   2026:
266   (1) Section 59-2-501; and
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267   (2) Section 59-2-502.
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