HB 236: Truth in Taxation Amendments - Utah

Substitute #2 → Substitute #3 · 6 edits

MODERATE

This substitute bill refines the 'Truth in Taxation' process for property tax increases in Utah, primarily clarifying requirements for fiscal year taxing entities (like counties) and addressing specific scenarios for towns without websites. It adds a preliminary public statement requirement for fiscal year entities before their budget is adopted and establishes a one-year grace period where the State Tax Commission cannot deny a tax rate increase solely for failing to meet certain notice requirements. The bill also updates definitions to exclude semiconductor manufacturing equipment from tax revenue calculations and clarifies how 'new growth' is calculated for various zones.

Scope change

The bill's scope remains focused on property tax increases, but the applicability of specific notice and hearing requirements is clarified for different types of taxing entities (calendar year vs. fiscal year) and specific government structures (county executive-council).

REQUIREMENT

Added a requirement for fiscal year taxing entities to make a preliminary statement at a public meeting regarding their consideration of a tax rate increase before adopting their tentative budget.

Clarified that towns without public websites must provide notice and post information at their physical town hall or principal place of business instead of online.

TIMELINE

Established a one-year period in which the State Tax Commission is not required to deny a proposed tax rate increase if the entity fails to comply with specific truth-in-taxation requirements.

DEFINITION

Updated definitions to explicitly exclude revenue from semiconductor manufacturing equipment and clarified calculations for 'eligible new growth' across various development zones.

ENFORCEMENT

Modified the State Tax Commission's authority to deny tax rate increases to include the new one-year grace period for certain compliance failures.

TECHNICAL

Made technical and conforming changes to align the bill with recent amendments made by S.B. 238 and corrected formatting inconsistencies.

Substitute #1 → Substitute #2 · 4 edits

MODERATE

This bill amends Utah's property tax increase laws to clarify that fiscal year taxing entities (like counties) must make a preliminary public statement about considering a tax rate increase, rather than just a tax revenue increase. It also adds a one-year grace period where the State Tax Commission cannot deny a fiscal year entity's tax increase proposal if they fail to meet certain truth-in-taxation requirements. Additionally, the bill includes a coordination clause to ensure consistency with recent changes made to the same section by a separate Senate bill.

Scope change

The bill specifically targets 'fiscal year taxing entities' (those with a July 1 to June 30 fiscal year) for new preliminary statement requirements, while the original bill focused on calendar year entities. It also adds a specific exemption for towns that do not have public websites regarding notice requirements.

REQUIREMENT

Requires fiscal year taxing entities to make a preliminary public statement at a meeting regarding their consideration of a tax rate increase before proceeding.

ENFORCEMENT

Establishes a one-year period during which the State Tax Commission is prohibited from denying a fiscal year taxing entity's proposed tax rate increase solely for failing to comply with certain truth-in-taxation requirements.

TECHNICAL

Clarifies notice and publication requirements for towns that do not have public websites.

Adds a coordination clause to incorporate changes made to Section 59-2-919 by a separate Senate bill (S.B. 238).

Amended 3/6/2026 21:03:347 → Substitute #1 · 4 edits

MODERATE

This bill updates the definitions and requirements for Utah cities regarding property tax increases. It adds new definitions for city budgeting terms, clarifies how 'certified tax rates' are defined for cities, and modifies the rules for when cities must present budgets and hold public hearings before raising taxes. The changes aim to ensure greater transparency and procedural consistency for municipalities proposing tax hikes.

Scope change

The bill's scope expanded from only county and fiscal-year taxing entities to explicitly include cities (municipalities), requiring them to follow specific budgeting and notice procedures before increasing property taxes.

DEFINITION

Added a new Section 10-6-106 to define specific budgeting terms (e.g., 'budget,' 'budget officer,' 'enterprise fund') specifically for cities, which were previously missing or inconsistent.

Modified the definition of 'certified tax rate' to explicitly reference the definition found in Section 59-2-924, ensuring consistency across different types of taxing entities.

REQUIREMENT

Changed the requirement for cities to adopt a 'tentative operating budget' that excludes proposed tax revenue before a tax increase is approved, replacing the previous language about 'interim budgets' used for fiscal-year entities.

Updated the public notice and hearing requirements to align city procedures with the existing rules for fiscal-year entities, ensuring cities provide specific notices and hold hearings before levying tax increases.

Amended 3/6/2026 19:03:604 → Amended 3/6/2026 21:03:347 · 3 edits

MINOR

The bill was amended to fix formatting errors and correct a typo in the coordination clause that referenced the wrong subsection number. The substantive policy content regarding property tax notice requirements, budgeting rules, and definitions remains unchanged.

TECHNICAL

Corrected a typo in the coordination clause where a subsection reference was incorrectly labeled as '(12)(c)' instead of '(10)(c)'.

Fixed inconsistent numbering and spacing in the bill text, such as stray numbers and misaligned subsection headers.

Removed redundant or duplicate text lines that appeared in the previous version of the bill.

Amended Excerpts 3/6/2026 21:03:347 → Amended 3/6/2026 19:03:604 · 6 edits

MODERATE

The bill was completely replaced with a new version focused on 'Truth in Taxation' for property tax increases. The new text establishes strict requirements for taxing entities proposing tax rate hikes, including mandatory public statements, specific notice procedures, and the creation of interim budgets with restricted funds. It also introduces new definitions for terms like 'additional ad valorem tax revenue' and sets a one-year grace period for compliance before the State Tax Commission can deny a proposed tax increase.

Scope change

The bill's scope shifted from a specific amendment to lines 190-195 regarding public hearings to a comprehensive overhaul of the entire property tax increase process, applying to both calendar and fiscal year taxing entities.

REQUIREMENT

Requires fiscal year taxing entities to prepare an interim budget including a property tax impact schedule and reserve general fund revenue in a restricted account.

Mandates that calendar year taxing entities make a preliminary public statement at a meeting 14+ days before an election regarding their intent to increase tax rates.

Clarifies notice and publication requirements for towns that do not have public websites.

DEFINITION

Introduces new definitions for 'additional ad valorem tax revenue', 'base year', 'truth-in-taxation exemption period', and other specific terms to clarify the tax calculation rules.

ENFORCEMENT

Grants the State Tax Commission authority to deny proposed tax rate increases if the entity fails to meet the new truth-in-taxation requirements, with a one-year period where denial is not required for certain failures.

TECHNICAL

Includes a coordination clause to incorporate future changes made to Section 59-2-919 by other legislation.

Amended Excerpts 3/6/2026 19:03:604 → Amended Excerpts 3/6/2026 21:03:347 · 3 edits

MINOR

The bill was amended to clarify who must follow specific public notification rules for tax rate increases. The changes distinguish between increases initiated by an executive officer, which require strict public meetings and schedules, and those initiated by the governing body, which follow different procedures. Additionally, the bill now requires a public hearing opportunity for all proposed tax increases, regardless of who initiates them.

Scope change

The scope of applicability was refined to apply different procedural requirements based on whether the tax rate increase is initiated by an executive officer or the governing body.

REQUIREMENT

Added a distinction in requirements based on who initiates the tax rate increase: executive officers must follow strict public meeting rules, while governing bodies must follow alternative notification and hearing procedures.

Mandated that all proposed tax rate increases, regardless of the initiator, must include notice of a public hearing where citizens can provide comments.

TIMELINE

Adjusted the timing and content of public notifications to align with the new distinction between executive and governing body initiatives.

Enrolled → Amended Excerpts 3/6/2026 19:03:604 · 4 edits

MODERATE

Senate amendments clarify who must initiate the public notice process for tax increases and adjust the timing for when certain statements must be made. The bill now requires specific notice procedures only if an executive officer initiates the tax increase proposal, exempting cases where the governing body initiates it. Additionally, the window for making preliminary statements about tax increases was slightly extended, and the requirement to present impact schedules was broadened to include meetings other than just budget hearings.

Scope change

The bill's applicability is now conditional on who initiates the tax increase proposal; the strictest notice requirements apply only when an executive officer initiates the process, while governing body initiatives follow a slightly different path.

ELIGIBILITY

Added a distinction requiring specific notice and hearing steps only if an executive officer initiates the tax rate increase proposal; if the governing body initiates it, different rules apply.

TIMELINE

Extended the deadline for making preliminary statements about considering a tax increase from June 13 to a period starting after May 1 but ending on or before June 13.

REQUIREMENT

Broadened the requirement to present property tax impact schedules to include any public meeting or discussion prior to June 30, not just specific budget hearings.

Changed the language regarding operational impact statements to require articulation of impacts 'in the event that' the tax increase is approved, rather than only if it is approved.

Introduced → Enrolled · 5 edits · Mar 23, 2026

MODERATE

This bill updates Utah's 'Truth in Taxation' laws to improve transparency when local governments propose property tax increases. It clarifies definitions, adds requirements for fiscal year entities to prepare interim budgets and reserve funds, and includes a one-year grace period for the State Tax Commission to deny tax increases that fail to meet new procedural rules.

Scope change

The bill expands requirements to fiscal year taxing entities and adds specific provisions for towns without public websites, while also incorporating changes from a related Senate bill regarding property tax adjustments.

REQUIREMENT

Fiscal year taxing entities must now prepare an interim budget with a property tax impact schedule and reserve a portion of general fund revenue in a restricted account before approving a tax increase.

TIMELINE

A one-year exemption period is established during which the State Tax Commission cannot deny a tax increase solely for failing to meet certain truth-in-taxation requirements.

DEFINITION

Several terms were reorganized and clarified, including 'Ad valorem property tax revenue' and 'Centrally assessed new growth,' to ensure consistent application across different taxing entities.

ENFORCEMENT

The bill clarifies that the State Tax Commission may deny certification of a proposed tax increase if the taxing entity fails to meet specific notice and public hearing requirements.

TECHNICAL

Minor formatting adjustments and coordination clauses were added to align this bill with concurrent legislation (S.B. 238) and correct section numbering.

Truth in Taxation Amendments

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