SB 65 Utah Senate · 2026 General Session

Minimum Basic Tax Rate Amendments

SB 65 amends rules for distributing minimum basic tax revenue to school districts. It requires the state treasurer to deposit county tax payments into a special fund and notify the state board within 35 days. The state board must then send school districts either the full deposit amount or their remaining unfunded program costs (whichever is less), but not exceeding the deposit. The bill also clarifies that the state isn't subject to certain notice requirements before implementing these tax rates.

Issues: ✓ Education

Bill status passed 3 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

House Passage

Feb 2026

Governor

Introduced Jan 20, 2026 Last action Mar 7, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Amended Excerpts 2/9/2026 15:02:01 → Amended 2/9/2026 15:02:01 · 6 edits

MODERATE

This bill fundamentally restructures Utah's school funding system by replacing the state-local contribution model with a new 'Minimum Basic Tax' system where school districts must remit tax revenue to the state, which then distributes funds to cover basic school program costs. The change shifts financial responsibility from shared state-local contributions to a dedicated revenue stream managed through a new Special Revenue Fund.

Scope change

Expands state oversight of school district funding by creating new administrative requirements for tax collection, remittance, and distribution, while eliminating previous provisions for state and local contributions toward basic school programs.

FISCAL

Creates a new Minimum Basic Tax Special Revenue Fund to collect and distribute tax revenue from school districts imposing the minimum basic tax rate.

Repeals all provisions regarding state and local contributions toward the basic school program.

REQUIREMENT

Requires school districts to remit tax revenue generated by the minimum basic tax to the state treasurer.

Mandates inclusion of a specific statement on property tax notices regarding the minimum basic tax.

TIMELINE

Establishes new effective dates of May 6, 2026 for most provisions, with some sections superseded on July 1, 2026.

TECHNICAL

Updates affected Utah Code sections including 11-13-302, 53F-2-205, 53F-2-301, 53F-2-515, 59-2-902, 59-2-904, 59-2-1317, and repeals 59-2-903.

Introduced → Amended Excerpts 2/9/2026 15:02:01 · 7 edits

MODERATE

This bill amends Utah's minimum basic tax rate for school districts to ensure state funding covers the total cost of the basic school program. Key changes include creating a special revenue fund for tax revenue, requiring school districts to remit tax revenue to the state, and adding a specific statement to property tax notices explaining how the tax funds are used. The bill also repeals certain provisions regarding state and local contributions and makes technical adjustments to tax rate calculations and effective dates.

Scope change

The bill expands state oversight of school district tax revenues by requiring remittance to the state and creating a dedicated special revenue fund, while maintaining the core requirement that school districts impose a minimum basic tax rate.

FISCAL

Created a new 'Minimum Basic Tax Special Revenue Fund' to hold money deposited by the state treasurer from the minimum basic tax rate revenue and interest earned on those funds.

Changed the state's distribution mechanism so that school districts receive the full amount of tax revenue deposited by the state treasurer, or the remaining unfunded cost of their basic school program if that amount is less than the deposited revenue.

Repealed provisions regarding state and local contributions toward the basic school program, replacing them with a new framework where the state covers the full cost of the basic school program.

REQUIREMENT

Added a mandatory statement to property tax notices explaining that the minimum basic tax generates revenue remitted to the state, which then provides equivalent state funds to the school district plus additional funds to ensure full program costs are covered.

Added a requirement for the state treasurer to communicate interest amounts generated in the special revenue fund to the state board upon request, with interest included in distributions to school districts.

TIMELINE

Established two effective dates: May 6, 2026 for most provisions, and July 1, 2026 for amendments affecting Section 53F-2-301.

TECHNICAL

Added specific instructions for calculating and reporting interest earned in the Minimum Basic Tax Special Revenue Fund, including requirements for the state treasurer to report interest amounts to the state board.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 5, 2026

Lower · Passed

House/ comm rpt/ sent to Rules [House Rules Committee]

lower

Mar 4, 2026

Lower · Passed

House Comm - Recommends Returned to Rules [House Education Committee]

lower

Mar 4, 2026

Lower · Passed

House Comm - Held [House Education Committee]

lower

Feb 27, 2026

Committee

House/ to standing committee [House Education Committee]

lower

Feb 18, 2026

Introduced

House/ 1st reading (Introduced)

lower

Feb 18, 2026

Lower · Passed

Senate/ passed 3rd reading

lower

Feb 9, 2026

Introduced

Senate/ floor amendment

upper

Jan 29, 2026

Upper · Passed

Senate/ committee report favorable [Senate Revenue and Taxation Committee]

upper

Jan 28, 2026

Upper · Passed

Senate Comm - Favorable Recommendation [Senate Revenue and Taxation Committee]

upper

Jan 20, 2026

Committee

Senate/ to standing committee [Senate Revenue and Taxation Committee]

upper

Jan 20, 2026

Introduced

Senate/ 1st reading (Introduced)

upper

1 primary · 1 co-sponsor