HB 237: Rollback Tax Amendments - Utah

Amended 2/27/2025 15:02:942 → Substitute #1 · 5 edits

MODERATE

This bill changes how Utah counties handle rollback taxes collected when agricultural land is converted to other uses. Previously, counties split the tax revenue between themselves and other taxing entities. Now, counties can keep 100% of the revenue to use for open land and agricultural preservation. Any funds not spent within five years must be transferred to the LeRay McAllister Working Farm and Ranch Fund. The bill also updates definitions and clarifies how certain land acquisitions and exemptions are handled.

Scope change

The bill expands county control over rollback tax revenue, allowing counties to retain 100% of funds instead of the previous 20% allocation. It also adds a five-year deadline for spending these funds before they must be transferred to a state fund.

FISCAL

Counties now receive 100% of rollback tax revenue instead of 20%, with 80% previously going to other taxing entities.

The LeRay McAllister Working Farm and Ranch Fund now includes rollback tax and fee-in-lieu revenue as a source of funding.

TIMELINE

Counties must spend or obligate 100% of rollback tax funds within five years, or transfer the balance to the LeRay McAllister Working Farm and Ranch Fund.

DEFINITION

Updated definitions for 'open land' and 'rollback tax funds' to clarify what types of land and revenue are covered.

TECHNICAL

Technical corrections to section numbering and formatting throughout the bill.

Amended 2/13/2025 09:02:927 → Amended 2/27/2025 15:02:942 · 7 edits

MODERATE

This bill amends Utah's rollback tax system to give counties full control over rollback tax revenue for five years, then require any unused funds to be transferred to a state agricultural fund. It also clarifies how rollback taxes are distributed between counties and taxing entities, and updates definitions related to open land and agricultural use.

Scope change

The bill expands county control over rollback tax revenue from 80% to 100% for initial use, with a five-year sunset provision requiring remaining funds to be transferred to the state fund.

FISCAL

Changed county deposit requirement from 20% to 100% of rollback tax funds for preserving open and agricultural land.

Added requirement that unspent rollback tax funds after five years must be transferred to the LeRay McAllister Working Farm and Ranch Fund.

Updated distribution rules for fee-in-lieu payments to allocate 20% to counties and 80% to other taxing entities.

DEFINITION

Added definition of 'open land' to include land preserved for wildlife habitat, cultural/recreational use, watershed protection, or natural conditions.

Added definition of 'public land county' as counties where over 50% of land area is publicly owned.

REQUIREMENT

Clarified that eminent domain cannot be used or threatened when purchasing land with rollback tax funds.

TECHNICAL

Made technical corrections to section numbering and formatting throughout the bill.

Amended Excerpts 2/27/2025 15:02:942 → Amended 2/13/2025 09:02:927 · 5 edits

MODERATE

This bill modifies Utah's rollback tax system to give counties full control over tax revenue when agricultural land is converted to other uses. Counties can now keep 100% of the revenue for local conservation purposes, and any unspent funds after five years must be transferred to a state working farm and ranch fund. The bill also updates definitions to clarify what counts as 'open land' and expands the sources of funding for the state's working farm and ranch fund.

Scope change

The bill expands the scope of the LeRay McAllister Working Farm and Ranch Fund to include rollback tax and fee-in-lieu revenue as funding sources, and clarifies how counties should handle unspent conservation funds.

FISCAL

Counties can now use 100% of rollback tax revenue for open land and agricultural conservation purposes within their county, up from a previous 20% requirement.

The LeRay McAllister Working Farm and Ranch Fund now includes rollback tax and fee-in-lieu revenue as an additional source of funding.

TIMELINE

Unspent rollback tax funds must be transferred to the state Working Farm and Ranch Fund within five years, rather than the previous ten-year period.

DEFINITION

New definition of 'open land' includes land preserved for natural conditions, wildlife habitat, cultural or recreational use, and watershed protection, while excluding developed sports facilities.

REQUIREMENT

Purchases of land in public land counties using rollback funds now require the governmental entity to transfer equivalent land back to private ownership simultaneously.

Amended Excerpts 2/13/2025 09:02:927 → Amended Excerpts 2/27/2025 15:02:942 · 1 edit

MINOR

The amendment modifies the timeline requirement for counties to spend rollback tax funds. Previously, counties had to spend 100% of these funds within five years. The change now allows counties to choose between keeping the five-year requirement or extending it to ten years, providing more flexibility in how long they can retain these funds before spending them.

Scope change

The bill's scope regarding fund retention timelines was expanded to offer counties a choice between two spending deadlines.

TIMELINE

Changed the mandatory spending deadline for rollback tax funds from a fixed five-year period to a flexible option allowing either five or ten years, giving counties more time to utilize collected funds.

Enrolled → Amended Excerpts 2/13/2025 09:02:927 · 5 edits

MODERATE

This bill modifies Utah's agricultural rollback tax system to give counties full control over tax revenue for open land and agricultural preservation, with unused funds after 10 years going to a state working farm fund. The changes clarify how counties can use rollback tax money and establish clearer distribution rules between county and taxing entities.

Scope change

The bill's scope remains focused on agricultural land taxation, but the funding distribution and usage rules have been modified to give counties greater flexibility in spending rollback tax revenues.

FISCAL

Counties can now use 100% of rollback tax revenue for open land and agricultural purposes, rather than a split distribution.

Distribution rules for fee-in-lieu payments now require 20% to county open land programs and 80% to taxing entities, consistent with rollback tax distribution.

TIMELINE

The deadline for counties to spend rollback tax funds changed from 10 years to 5 years before funds must be transferred to the state Working Farm and Ranch Fund.

DEFINITION

Added clearer definitions for 'open land' including specific uses like wildlife habitat, cultural/recreational use, and watershed protection.

REQUIREMENT

Updated language regarding eminent domain restrictions and requirements for transferring equivalent property in public land counties.

Introduced → Enrolled · 5 edits · Mar 24, 2025

MODERATE

This bill modifies Utah's agricultural rollback tax system by redirecting unused county-level tax revenue to a state fund after 10 years, updating definitions of 'open land' and 'agricultural land', and clarifying how counties must use rollback tax funds for conservation purposes. The changes ensure counties can use 100% of collected rollback taxes for open land and agricultural use, with any unspent funds after 10 years automatically transferred to the LeRay McAllister Working Farm and Ranch Fund.

Scope change

The bill expands the scope of the rollback tax system by adding a new state-level fund destination for unspent county revenues and updating definitions to better align with conservation goals

FISCAL

Counties must now deposit 100% of rollback tax funds into a designated account for open land and agricultural use, replacing the previous 20/80 split between county and taxing entities

Unspent rollback tax funds remaining in county accounts after 10 years must be transferred to the LeRay McAllister Working Farm and Ranch Fund

DEFINITION

Added new definitions for 'open land' and 'public land county' to clarify eligibility criteria for conservation purchases

REQUIREMENT

Restrictions added preventing use of rollback tax funds for eminent domain purchases and requiring equivalent property transfers in public land counties

TECHNICAL

Updated code sections to reflect new fund distribution requirements and clarified the relationship between county-level and state-level rollback tax provisions

Rollback Tax Amendments

What changed between versions

How they voted

Actions timeline

Sponsors