DAR File No. 27419

Community and Economic Development, Community Development, Community Services

R202-203-328

Self-Employment Income

NOTICE OF PROPOSED RULE

DAR File No.: 27419
Filed: 09/10/2004, 05:09
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed amendment includes the previous year's tax return as proof of self-employment income.

Summary of the rule or change:

The previous year's tax return information may be used by an applicant for Home Energy Assistance Target (HEAT) program assistance as proof of their income.

State statutory or constitutional authorization for this rule:

Sections 9-12-101 through 9-12-105

Anticipated cost or savings to:

the state budget:

The rule change is the result of an internal programmatic change to facilitate the application process by allowing applicants to use their tax return as proof of self-employment income. HEAT is a federal program administered by the U.S. Department of Health and Human Services known as the Low Income Home Energy Assistance Program (LIHEAP). It is 100% federally funded and requires no state or local government funds; nor does it require funds from any other person or entity. Thus there are no cost or savings to the state.

local governments:

The rule change is the result of an internal programmatic change to facilitate the application process by allowing applicants to use their tax return as proof of self-employment income. HEAT is a federal program administered by the U.S. Department of Health and Human Services known as the Low Income Home Energy Assistance Program (LIHEAP). It is 100% federally funded and requires no state or local government funds; nor does it require funds from any other person or entity. Thus there are no cost or savings to local government.

other persons:

The rule change is the result of an internal programmatic change to facilitate the application process by allowing applicants to use their tax return as proof of self-employment income. HEAT is a federal program administered by the U.S. Department of Health and Human Services known as the Low Income Home Energy Assistance Program (LIHEAP). It is 100% federally funded and requires no state or local government funds; nor does it require funds from any other person or entity. Thus there are no cost or savings to other persons or entities.

Compliance costs for affected persons:

No person or other entity are required to pay any costs to comply with this rule or to participate in the HEAT Program. All costs are borne by the HEAT Program and as explained under Other Persons above is 100% federally funded.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no fiscal impacts on businesses associated with this rule.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Sherm Roquiero at the above address, by phone at 801-538-8644, by FAX at 801-538-8888, or by Internet E-mail at shermr@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/01/2004

This rule may become effective on:

11/02/2004

Authorized by:

David Harmer, Executive Director

RULE TEXT

R202. Community and Economic Development, Community Development, Community Services.

R202-203. Energy Assistance Income Standards, Income Eligibility, and Payment Determination.

R202-203-328. Self-Employment Income.

1. A self-employed person actively earns income directly from their own business, trade, or profession.

2. Self-employment income will be determined by using the previous year's tax return or as follows:

a. All gross self-employment income is counted.

i. Capital gains will be included.

ii. The proceeds from the sale of capital goods or equipment will be calculated in the same way as a capital gain for Federal income tax purposes. Even if only part of the proceeds from the sale of capital goods or equipment is taxed, the full amount of the capital gain will be counted as income for HEAT program purposes.

b. The cost of doing business will be deducted.

i. Allowable business costs include:

A. labor;

B. stock;

C. raw materials;

D. seed and fertilizer;

E. interest paid toward the purchase of income producing property;

F. insurance premiums;

G. taxes paid on income producing property;

ii. Transportation costs will be allowed only if the person must move from place to place in the course of business.

iii. The following items will not be allowed as business expenses:

A. Payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery and other durable goods.

B. Net losses from previous periods.

C. Federal, state and local income taxes, money set aside for retirement purposes, and other work related personal expenses.

D. Depreciation.

KEY: energy assistance, self-employment income, income eligibility, payment determination

[1994]2004

Notice of Continuation June 14, 2002

9-12-10

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Sherm Roquiero at the above address, by phone at 801-538-8644, by FAX at 801-538-8888, or by Internet E-mail at shermr@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.