Budget & Taxes (State Budget)

HB 485 limits how much revenue school districts and other local taxing entities can collect from new property value growth (e.g., increases in property values beyond the base assessment). It caps this revenue at the lesser of two amounts: (1) new growth multiplied by a set tax rate, or (2) an inflation-adjusted budget increase. This change affects school districts' ability to raise funds from new property values and adjusts how state contributions to basic school programs are calculated. The bill makes technical updates to property tax laws without appropriating new state funds, effective January 1, 2027.

HB 449 would require Utah voters to approve most increases in state or local government taxes or debt, as well as any spending above a set limit in a fiscal year. It also eliminates automatic tax increases and mandates refunds of excess revenue collected beyond approved spending limits. These changes would apply to all state and local government entities and require voter approval of a constitutional amendment before taking effect. The bill does not appropriate new funds and is contingent on passage of the proposed constitutional amendment.

HB 157 amends various Utah laws related to the Department of Natural Resources (DNR). It changes how the DNR handles employee work periods, allows water rights records to be kept electronically or physically, and adjusts rules for water rights after contract issues. The bill removes a cap on low-interest loans for water metering, ends the Alternative Energy Development Tax Credit Act, and repeals funding rules for a watershed program. It appropriates $5 million from the General Fund for DNR operations in fiscal year 2027. The changes primarily affect DNR staff, water rights holders, and entities managing water resources in Utah.

SB 97 limits how much surplus funds cities and counties can accumulate in their general funds (capping it at 25% of annual revenue) and changes residential property tax rules. It restricts property tax exemptions to one primary residence per household, requires homeowners to reapply for exemptions if ownership changes or eligibility is questioned, and creates a presumption that business-owned property doesn't qualify for residential exemptions. The bill also prohibits using property tax revenue for capital improvement reserves after a set date and adjusts how property value increases are counted for tax calculations. These changes directly affect local governments managing tax revenues and homeowners seeking property tax exemptions.