SB 197: Property Tax Amendments - Utah

Substitute #4 → Enrolled · 4 edits · Mar 8, 2025

MODERATE

This bill updates Utah's property tax relief system by adjusting income limits and credit amounts for homeowners and renters, introducing a two-year waiting period to prevent stacking multiple relief programs, and requiring tax notices to inform residents about deferral options and outstanding balances.

Scope change

The bill expands eligibility for renter's credits and modifies the rules for combining different types of property tax relief, while also shifting some sections to a new code structure in coordination with another bill.

ELIGIBILITY

Homeowners and renters can no longer receive certain tax credits or abatements if they received them within the previous two years, starting in 2026, to limit the total amount of relief a single household can claim.

Income thresholds and maximum credit amounts for the renter's credit are increased to allow more renters to qualify for financial assistance.

REQUIREMENT

County auditors must now include information about property tax deferral programs on valuation notices, and county treasurers must inform taxpayers about outstanding taxes and interest on their tax notices.

TECHNICAL

The bill includes a coordination clause that renumbers and adjusts specific sections to align with a separate property tax recodification bill (H.B. 20) if both pass.

Introduced → Substitute #1 · 6 edits

MODERATE

This bill significantly restricts property tax relief in Utah by eliminating the annual inflation adjustments for the homeowner's credit and requiring recipients to have received the credit in the prior year to continue receiving it. It also tightens eligibility for tax deferrals and abatement programs, changes interest rates on deferred taxes, and updates notice requirements to inform taxpayers about deferral options.

Scope change

The bill narrows the scope of available tax relief by adding a 'use-it-or-lose-it' requirement for the homeowner's credit and shifting from a discretionary to a mandatory grant for certain deferral programs.

ELIGIBILITY

Homeowner's credit recipients must have received the credit in the previous year to qualify for it again, effectively ending the program for those who previously did not claim it.

The automatic annual inflation adjustment (cost-of-living adjustment) for the homeowner's credit amount was removed, meaning the credit amounts will no longer increase with inflation.

Eligibility for discretionary tax deferrals now requires a lower household income threshold ($45,000) and proof of public assistance, while nondiscretionary deferrals are limited to owners aged 65 or older with income under $55,000.

ENFORCEMENT

Penalties and interest rates for delinquent property taxes were increased, with interest rates now calculated based on the federal funds rate plus a minimum of 7%.

REQUIREMENT

Property tax valuation notices must now include specific information about the availability of tax deferral programs and the amount of outstanding taxes for those with deferred payments.

TIMELINE

The bill includes a coordination clause to address conflicts if it passes alongside a separate property tax recodification bill (H.B. 20), ensuring consistent application of rules.

Substitute #3 → Substitute #4 · 7 edits

MODERATE

This bill updates Utah's property tax relief programs by increasing income limits and credit amounts for renters, removing annual inflation adjustments for homeowners, adding a two-year lookback requirement for certain tax credits and abatements starting in 2026, and modifying deferral program qualifications and interest rates. The changes aim to expand relief for lower-income renters while tightening eligibility for homeowners and indigent taxpayers to prevent stacking multiple benefits.

Scope change

The bill expands the scope of property tax relief for renters by increasing income thresholds and credit amounts, while narrowing the scope for homeowners and indigent taxpayers by adding a two-year recency requirement for receiving certain benefits.

ELIGIBILITY

Increased household income limits and maximum credit amounts for the renter's credit program, making more renters eligible for tax relief.

Added a two-year lookback requirement prohibiting taxpayers from receiving the homeowner's credit or indigent abatement unless they received it within the previous two years, starting in 2026.

Changed deferral program qualifications to adjust age thresholds and income limits for discretionary and nondiscretionary deferrals.

REQUIREMENT

Removed the requirement for annual inflation adjustments to the homeowner's credit, fixing the credit amount to fixed dollar amounts instead.

Added requirements for county auditors and treasurers to include information about tax deferral options and outstanding taxes on property tax notices.

FISCAL

Adjusted interest rates on deferred property taxes to use a formula based on Federal Reserve rates rather than fixed percentages.

TECHNICAL

Included a coordination clause to resolve conflicts if this bill and H.B. 20 (Property Tax Code Recodification) both pass.

Substitute #2 → Substitute #3 · 7 edits

MODERATE

This bill updates Utah's property tax laws to expand assistance for low-income homeowners and renters while adding new requirements for tax deferral programs and notice procedures. Key changes include increasing income limits for renter's credits, adding a two-year lookback requirement for homeowner's and indigent abatement credits starting in 2026, and modifying deferral interest rates. The bill also requires county auditors to include deferral program information in property tax notices and changes the House sponsor from Jason B. Kyle to Steve Eliason.

Scope change

The bill's scope expanded to include new requirements for county treasurers to report outstanding taxes and interest for deferral recipients, and added a new section to the list of nonlapsing appropriations for the State Tax Commission to reimburse counties for deferrals.

ELIGIBILITY

Added a two-year lookback requirement prohibiting taxpayers from receiving homeowner's credit or indigent abatement unless they received the benefit within the previous two years, effective 2026.

Increased household income limits and maximum credit amounts for renter's credit, with new percentage-based adjustments tied to consumer price index changes.

DEFINITION

Changed interest rate calculations for discretionary and nondiscretionary property tax deferrals, with discretionary deferrals using rates two percentage points below federal funds rate and nondiscretionary deferrals using rates one percentage point below federal funds rate.

REQUIREMENT

Added requirement for county treasurers to include information on outstanding taxes and interest for taxpayers receiving deferrals in tax notices.

Added 59-2-1317 to the list of amended sections for property tax notice requirements, expanding what information must be included in property tax valuation notices.

TIMELINE

Changed House Sponsor from Jason B. Kyle to Steve Eliason and added Steve Eliason as a proposer of the substitute bill.

FISCAL

Added the State Tax Commission to the list of programs receiving nonlapsing appropriations for reimbursing counties for deferrals under Section 59-2-1802.5.

Substitute #1 → Substitute #2 · 8 edits

MODERATE

This bill updates Utah's property tax relief programs for 2025 and beyond, modifying eligibility requirements, credit amounts, and deferral rules. Key changes include making homeowner's and indigent abatement credits require prior-year receipt to prevent new claimants, removing inflation adjustments for homeowner's credits, increasing renter's credit limits, and adjusting interest rates on deferred taxes.

Scope change

The bill applies to property tax years beginning on or after January 1, 2025, with some provisions extending to 2026 for eligibility restrictions.

ELIGIBILITY

Homeowner's credit and indigent abatement now require recipients to have received the same relief in the preceding calendar year, preventing new claimants from receiving these benefits.

Renter's credit household income limits and maximum credit amounts are increased, with annual inflation adjustments based on the consumer price index.

DEFINITION

Property tax deferral programs now have updated eligibility criteria, including specific age thresholds (75 for discretionary deferral, 65 for nondiscretionary) and income limits ($45,000 and $55,000 respectively).

FISCAL

Interest rates on deferred property taxes are adjusted to be based on the Federal Reserve's federal funds rate, with minimum rates of 7% and 1% respectively for different deferral programs.

REQUIREMENT

Property tax deferral programs now require minimum payments of 75% of base year taxes for discretionary deferrals and 100% for nondiscretionary deferrals.

County auditors must include information about tax deferral programs and outstanding tax amounts on property tax valuation notices for deferral recipients.

TIMELINE

Application deadlines for property tax deferrals and abatements remain on or before September 1, with possible extensions for good cause.

TECHNICAL

The bill includes a coordination clause to resolve conflicts if both this bill and H.B. 20 (Property Tax Code Recodification) become law.

Property Tax Amendments

What changed between versions

How they voted

Actions timeline

Sponsors