HB 365: Taxation Notification Requirements - Utah

Amended 2/26/2026 19:02:399 → Substitute #1 · 5 edits

MODERATE

This bill modifies truth-in-taxation notice requirements for fiscal year taxing entities (like school districts) that propose property tax rate increases. The primary change shifts the timing of required public notices from after the budget is adopted to before the budget is adopted, ensuring taxpayers are informed earlier in the process. It also adds a specific definition for 'specified taxing entity' to clarify which entities must follow these new pre-budget notice rules.

Scope change

The bill specifically targets fiscal year taxing entities (those with a July 1 to June 30 fiscal year) when a mayor or budget officer proposes a tax rate increase in a tentative budget. It clarifies the applicability of notice requirements to these entities prior to the final budget adoption.

DEFINITION

Added a new definition for 'specified taxing entity' to define a fiscal year taxing entity where a mayor or budget officer proposes a tax rate increase in a tentative budget.

REQUIREMENT

Changed the timing for fiscal year taxing entities to require posting a meeting notice with a statement about the proposed tax increase before the public meeting where the tentative budget is presented to the governing body.

Modified the notice requirements for fiscal year taxing entities to include posting the meeting notice on the entity's website (or at the town hall for towns without websites) at least seven calendar days after the public meeting.

Removed the requirement for fiscal year taxing entities to publish a notice by April 1 stating the approximate dollar amount of revenue increase, replacing it with the requirement to provide notice via meeting advertisement and post the meeting notice after the public meeting.

TECHNICAL

Corrected cross-references in Section 59-2-919 to ensure consistency between the sections governing calendar year and fiscal year taxing entities.

Amended 2/17/2026 09:02:679 → Amended 2/26/2026 19:02:399 · 3 edits

MINOR

This bill updates the notice and hearing requirements for local governments proposing property tax increases. The main changes involve shifting the deadline for fiscal year entities to publish their intent from April 1 to May 1, correcting a citation error in the law regarding claim payments, and fixing formatting inconsistencies in the text of the statute.

Scope change

The scope of the bill remains focused on truth-in-taxation notice requirements for fiscal year and calendar year taxing entities, with no change to which entities are covered.

TIMELINE

The deadline for fiscal year taxing entities to publish their intent to raise taxes was moved from April 1 to May 1 of the year the increase is intended.

TECHNICAL

A citation error in Section 63G-7-704 regarding compliance with notice requirements was corrected to reference the correct subsections of Section 59-2-919.

Several formatting errors in the text of Section 59-2-919, such as duplicated words and broken sentence structures, were cleaned up to improve readability and legal clarity.

Amended Excerpts 2/26/2026 19:02:399 → Amended 2/17/2026 09:02:679 · 7 edits

MODERATE

This bill updates Utah's property tax notification rules to ensure taxpayers are informed before tax rates increase. It clarifies deadlines for public notices, standardizes the content of tax increase advertisements, and adds specific exemptions for small districts with budgets under $250,000. The changes aim to improve transparency and streamline the process for local governments seeking to raise property taxes.

Scope change

The bill expands applicability by adding a specific exemption for special districts with small budgets and clarifies rules for county executive calendar year taxing entities.

TIMELINE

The deadline for fiscal year taxing entities to publish a notice of intent to raise taxes was changed from May 1 to April 1.

ELIGIBILITY

A new exemption was added for special districts with an annual operating budget of less than $250,000, allowing them to satisfy notice requirements by mailing notices to voters and posting them in three public places instead of publishing a class A notice.

REQUIREMENT

The required content for public tax increase notices was updated to include specific examples of tax increases on an average residence and a business, along with virtual meeting links.

Public hearings for tax increases must now be held at or after 6 p.m. to avoid conflicts with other business meetings.

Direct mail notices to property owners must now include instructions on how taxpayers can opt to receive electronic notices instead.

ENFORCEMENT

New provisions allow county auditors to conduct audits to verify compliance with public hearing and notice requirements.

TECHNICAL

Several sections were renumbered and reorganized to align with new statutory numbering conventions.

Amended Excerpts 2/17/2026 09:02:679 → Amended Excerpts 2/26/2026 19:02:399 · 4 edits

MODERATE

The bill was amended to clarify and tighten the process for taxing entities proposing property tax rate increases. Key changes include updating the deadline for public notice from May to April 1st, requiring that the tax rate not exceed the revenue amount stated in the notice, and standardizing the citation for public hearing notices across different sections of the law.

Scope change

The scope of the bill remains focused on property tax increases, but the applicability of the notice and hearing requirements was refined to ensure consistency and stricter adherence to revenue caps.

TIMELINE

The deadline for providing public notice before adopting a budget exceeding the certified tax rate was changed from May 1 to April 1.

REQUIREMENT

Added a specific prohibition preventing taxing entities from setting a tax rate that would generate more revenue than the approximate amount stated in the public notice.

Updated cross-references in the text to consistently cite Subsection (4)(a)(ii) regarding public hearing requirements, replacing previous references to Subsection (4)(b).

TECHNICAL

Adjusted line numbers and citation references throughout the document to reflect the new structure of the bill.

Introduced → Amended Excerpts 2/17/2026 09:02:679 · 4 edits

MODERATE

This bill amends Utah's truth-in-taxation laws to strengthen notice requirements for property tax increases. It clarifies how fiscal year taxing entities must publish notices and conduct public hearings, ensuring taxpayers are informed before budgets are adopted. The changes also update formatting references and add specific rules for small special districts regarding notice methods.

Scope change

The bill applies to fiscal year taxing entities (those with a July 1 to June 30 fiscal year) and adds specific exemptions for special districts with budgets under $250,000.

REQUIREMENT

Clarified that fiscal year taxing entities must publish a notice by April 1 and conduct a public hearing before adopting an annual budget that increases property tax revenue.

Added a specific exemption allowing special districts with annual operating budgets under $250,000 to satisfy notice requirements by mailing notices to voters and posting them in three public places instead of publishing a class A notice.

TECHNICAL

Corrected formatting and citation references in the text to align with current statutory numbering and administrative rulemaking standards.

TIMELINE

Established a specific April 1 deadline for fiscal year taxing entities to publish their intent to increase tax revenue.

Taxation Notification Requirements

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