HB 110: Combined Basic Tax Rate Reduction - Utah

Substitute #2 → Enrolled · 3 edits · Mar 27, 2025

MINOR

The bill was updated to include additional cosponsors and a new section clarifying how it coordinates with a companion bill (S.B. 37) to replace the term 'combined basic rate' with 'minimum basic tax rate' in the future. The effective date was extended from July 1, 2026, to July 1, 2026 (no change in year, but the timestamp indicates a later version). The core policy of repealing the WPU value rate remains unchanged, but the text now explicitly links the repeal to the upcoming legislative changes in S.B. 37.

Scope change

The bill's scope regarding the repeal of the WPU value rate remains the same, but the scope of coordination with other legislation was expanded to include specific terminology changes planned for S.B. 37.

TECHNICAL

Added a list of cosponsors (Stephanie Gricius, Jefferson Moss, Cheryl K. Acton, Jason B. Kyle, Candice B. Pierucci, Tyler Clancy, Trevor Lee, Calvin Roberts, Joseph Elison, Karianne Lisonbee, and R. Neil Walter) to the bill header.

REQUIREMENT

Added a new Section 5 that coordinates H.B. 110 with S.B. 37, intending to replace the term 'combined basic rate' with 'minimum basic tax rate' on July 1, 2026, to ensure consistency between the two bills.

TIMELINE

The timestamp at the end of the document changed from '2-5-25 8:59 PM' to '3-11-25 2:42 PM', indicating this is a later version of the bill.

Introduced → Substitute #1 · 5 edits

MODERATE

This bill simplifies Utah's school funding tax structure by repealing the 'Weighted Pupil Unit (WPU) value rate' and replacing the 'combined basic rate' with a single 'minimum basic tax rate.' The goal is to reduce revenue targets and streamline how property taxes fund public education. While the WPU rate is removed from the tax calculation, the bill explicitly states that ongoing funding for the Teacher and Student Success Program remains unaffected.

Scope change

The bill narrows the scope of the tax rate combination by removing the WPU component, but adds a coordination clause to ensure this change works alongside a separate bill (S.B. 37) that changes the name of the remaining tax rate.

DEFINITION

Removed the definition and calculation requirements for the 'WPU value rate' and 'WPU value amount' from the tax code.

Changed the definition of 'combined basic rate' to no longer include the WPU value rate, effectively making it synonymous with the 'minimum basic tax rate'.

REQUIREMENT

Added a coordination clause to clarify that if this bill and S.B. 37 both pass, the term 'minimum basic tax rate' will replace 'combined basic rate' in the law.

FISCAL

Added a specific provision stating that repealing the WPU rate does not affect ongoing appropriations to the Teacher and Student Success Account.

TIMELINE

Added a new section specifying that the bill takes effect on July 1, 2025, and included timestamps for the amendment process.

Substitute #1 → Substitute #2 · 6 edits

MODERATE

This bill repeals the Weighted Pupil Unit (WPU) value rate from Utah's combined basic property tax rate for public education, simplifying the tax structure by removing one component. The change affects how property taxes are calculated and certified for the basic school program starting July 1, 2025. The bill also coordinates with another bill (S.B. 37) to rename the 'combined basic rate' to 'minimum basic tax rate' and updates related notice requirements for property tax changes.

Scope change

The bill narrows the scope of property tax rates that fund public education by eliminating the WPU value rate component, affecting all Utah school districts and the State Tax Commission's certification process.

FISCAL

Removed the WPU value rate from the combination of property tax rates that fund public education, eliminating a separate tax rate component that was previously certified by the State Tax Commission.

DEFINITION

Removed definitions for 'WPU value', 'WPU value amount', 'WPU value increase limit', and 'WPU value rate' from the statute, as these terms are no longer applicable after the repeal.

REQUIREMENT

Modified the State Tax Commission's certification requirements to only certify the minimum basic tax rate instead of both the minimum basic tax rate and the WPU value rate.

Modified notice requirements in property tax notices to reference the 'minimum basic tax rate' instead of the 'combined basic rate' for fiscal years beginning on or after July 1, 2023.

TECHNICAL

Updated references in the statute to remove mentions of the WPU value rate and renamed 'combined basic rate' to 'minimum basic tax rate' to coordinate with S.B. 37.

TIMELINE

Added coordination clause specifying that the term 'minimum basic tax rate' will replace 'combined basic rate' when both HB 110 and S.B. 37 become law effective July 1, 2025.

Combined Basic Tax Rate Reduction

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