SB 243 amends tax increment financing rules for public transit-oriented developments in designated counties. It limits new projects to a 1/3-mile radius of transit hubs, restricts total project area to 125 noncontiguous acres, and caps the capture of property tax increases at 50% (not 80%) over a 15-year period per parcel. These changes apply specifically to projects approved under the bill's framework within a 30-year overall timeline. The bill is currently pending in the Senate Rules Committee after committee recommendations failed.
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 484 limits how much additional property tax revenue Utah school districts and local taxing entities can collect without voter approval, capping increases at 20% of their previous year's revenue. It requires voter approval for tax hikes exceeding this limit and eliminates a protection period that previously shielded school districts from losing state funding when lowering tax rates. The bill also phases out excess state funding over three years if a school district reduces its certified tax rate, ensuring funding aligns with current property valuations. This directly affects school districts' budgets and local tax collection processes under Utah law.
HJR 20 proposes a constitutional amendment to require voter approval for most tax increases and government debt in Utah. If passed, it would mandate that taxpayers vote to approve any rise in tax revenue or new borrowing by state or local governments, limit annual spending without voter consent, and require refunds of excess tax revenue. The amendment also specifies that residential property must be assessed using sales comparison (standard home valuation method) and allows the legislature to exempt business personal property from taxes. This change would affect all Utah taxpayers and government entities by shifting key budgetary decisions to voter approval.
SB 309 requires owners of single-family homes rented to register with local authorities, including property managers. It imposes an excise tax on owners who manage 25 or more rental homes and creates a grant program for municipalities to help transition rental properties to owner-occupied homes. The bill mandates that registration notices be included with 2026 property tax notices and requires the Division of Real Estate to share registered property data with county assessors. It affects rental property owners, local governments, and municipalities, with provisions set to take effect in 2026. The bill includes technical changes but does not appropriate funds for implementation.
HB 300 extends a 5-year "hold harmless" period for school districts that reduce their tax rates due to changes in property valuation. This protects districts from losing state funding guarantees if they proportionally lower all local tax levies (voted, board, and capital). The bill phases out excess state funding received in 2025 over three years (2026-2028), requiring districts to gradually reduce payments until 2029. It does not appropriate new funds but adjusts how existing state guarantee money is distributed to maintain stability during tax rate changes.
SB 231 modifies Utah's property tax system for large energy users (facilities with 100+ megawatts of cumulative electricity demand). It prohibits new tax increment financing agreements (a tool for funding development projects) for projects containing such "large load customers" after May 6, 2026, affecting cities, counties, and special districts. The bill also requires large load customers to notify county auditors and treasurers of their location. These changes adjust how tax revenue is distributed and restrict development funding for major energy consumers.
SB 78 modifies Utah's property tax relief programs, effective 2027, primarily affecting renters, homeowners, and elderly property owners. It expands eligibility for a renter's credit and adds a two-year recency requirement for homeowner credits and indigent abatements, while prohibiting multiple forms of relief (with exceptions). Key changes include removing annual inflation adjustments for homeowner credits, extending delinquency periods to 10 years for seniors 70+, and setting a 6% interest rate for seniors 65+. The bill also requires counties to provide clearer information about deferral programs and tax relief options on official notices.
HJR 7 proposes amending Utah's constitution to allow the legislature to exempt up to 60% of the fair market value of residential property from property tax (previously capped at 45%). If approved by voters, this would directly reduce property tax bills for most Utah homeowners by lowering the taxable portion of their primary residence. The amendment requires voter approval at the next general election, with implementation set for January 1, 2027, if passed. This change modifies Article XIII, Section 3 of the Utah Constitution, specifically updating the statutory exemption limit for residential property.
HB 236 requires local governments (like cities and school districts) proposing property tax increases to follow specific transparency steps. It mandates that these entities make a public statement about considering a tax hike before approval and submit two budgets: one without the proposed tax revenue and another including it if approved. The bill also clarifies the State Tax Commission's power to reject increases that don't meet these requirements. This directly affects how local taxing entities plan and present property tax changes, aiming to increase public accountability without new funding.
