SB 78: Property Tax Relief Amendments - Utah

Substitute #3 → Substitute #4 · 7 edits

MODERATE

This bill modifies Utah's property tax relief system by adding $1.15 million in funding, introducing new county-run relief programs, and updating eligibility for deferrals and exemptions. It requires counties to hold public hearings before approving new relief programs and mandates that the state fund active-duty military exemptions. The bill also adjusts income thresholds and interest rates for various deferral programs.

Scope change

The bill expands the scope of property tax relief by authorizing counties to create their own discretionary relief programs and by adding a new state-funded exemption for active-duty military members.

FISCAL

Added $1,148,000 in General Fund appropriations for fiscal year 2027 to support the new active-duty military exemption and other provisions.

ELIGIBILITY

Created a new exemption for active-duty military members who serve at least 200 days outside the state, with payments funded by the General Fund.

Adjusted income thresholds and liquid resource limits for discretionary and nondiscretionary deferral programs, and updated the age requirement for nondiscretionary deferrals to 65 or older.

REQUIREMENT

Mandated that counties must conduct public hearings and publish notices before approving any new county relief programs.

TIMELINE

Established January 1, 2027, as the effective date for most new provisions, including the new county relief programs and updated deferral rules.

ENFORCEMENT

Required counties to impose a separate 'county relief levy' to fund their relief programs and distribute revenue to impacted taxing entities.

TECHNICAL

Corrected the House Sponsor name from 'LONG TITLE' to 'R. Neil Walter' and updated the bill title to reflect the new funding amount.

Substitute #2 → Substitute #3 · 6 edits

MODERATE

This bill expands property tax relief by authorizing counties to create their own discretionary relief programs for specific groups, while simultaneously clarifying appeal rights and updating definitions for existing state relief programs. It also introduces new funding mechanisms, such as allowing the Multicounty Appraisal Trust to loan money to counties for deferral costs, and adds a coordination clause to align with other tax amendments.

Scope change

The bill expands the scope of property tax relief by adding a new layer of authority for counties to implement their own relief programs, whereas previously relief was primarily a state-level function.

SCOPE

Added authority for counties to establish their own discretionary property tax relief programs for specific demographics, subject to public hearings and ordinance approval.

FISCAL

Authorized the Multicounty Appraisal Trust to make loans from the Property Tax Valuation Fund to counties to cover the costs of providing property tax deferrals.

REQUIREMENT

Added new requirements for counties to conduct public hearings and publish notices before approving any new county relief program.

ENFORCEMENT

Clarified that individuals denied property tax relief by a county have the right to appeal the decision to the county board of equalization.

DEFINITION

Updated and expanded definitions for various relief categories, including specific age thresholds and income limits for elderly and indigent individuals.

TECHNICAL

Added a coordination clause to incorporate changes to Section 59-2-1602 from a separate tax amendments bill.

Substitute #1 → Substitute #2 · 8 edits

MODERATE

The bill shifts property tax relief from a state-managed system to a new model where counties have the discretion to create their own relief programs. It removes specific state-set income limits and credit amounts for renters and homeowners, replacing them with a requirement for counties to hold public hearings and pass ordinances to establish local programs. The bill also introduces a 'two-year rule' preventing taxpayers from receiving certain credits or abatements if they received them in the previous two years, and it changes interest rates for delinquent taxes for seniors to a flat 6%.

Scope change

The scope of the bill changed from state-mandated relief with fixed income thresholds to a system where counties must voluntarily opt-in and design their own relief programs through public processes.

ELIGIBILITY

Removed specific state-set income limits and credit amounts for renter's and homeowner's credits, replacing them with a requirement for counties to establish their own programs via ordinance.

REQUIREMENT

Added a requirement that counties must conduct public hearings and pass ordinances before implementing any discretionary property tax relief programs.

Added a 'two-year rule' prohibiting taxpayers from receiving a homeowner's credit, renter's credit, or indigent abatement if they received the same relief for the same property within the previous two years.

Required county treasurers to include specific information on tax notices regarding outstanding deferred taxes and interest for taxpayers using deferral programs.

ENFORCEMENT

Changed the interest rate for delinquent property taxes for individuals 65 or older from a variable rate to a fixed 6%.

TIMELINE

Extended the period before a tax sale can be listed for individuals 70 or older from four years to 10 years.

DEFINITION

Added a new definition for 'household' to clarify that it includes individuals sharing a dwelling, furnishings, and expenses.

FISCAL

Removed the automatic annual inflation adjustments for homeowner's and renter's credit amounts, as counties will now set their own funding levels.

Amended 3/6/2026 22:03:177 → Substitute #1 · 7 edits

MODERATE

The bill transitions from a version that expanded property tax relief funding and created new county relief programs to a substitute version that significantly restricts relief. The substitute removes the $1.1 million appropriation for county loans, eliminates the new discretionary county relief program, and tightens eligibility for existing credits and deferrals by adding a two-year recency requirement and excluding veterans with high liquid assets.

Scope change

The bill's scope shifted from expanding property tax relief options and funding to restricting access to relief and removing the funding mechanism for a new county-run program.

FISCAL

The $1,148,000 appropriation for the Multicounty Appraisal Trust to make loans to counties for deferral costs was removed.

ELIGIBILITY

The new 'County Relief Program' allowing counties to create discretionary tax abatements for low-income residents was removed entirely.

A new requirement was added preventing taxpayers from receiving property tax relief (credits, abatements, or deferrals) if they received similar relief within the previous two years.

Veterans are now excluded from the veteran property tax exemption if their household liquid resources exceed a specific threshold.

DEFINITION

The definition of 'Eligible Owner' for deferrals was changed to increase the income limit from $35,000 to $75,000.

REQUIREMENT

Requirements were added for county auditors to include information about deferral program availability on property tax notices.

ENFORCEMENT

The interest rate on delinquent taxes for individuals aged 65 or older was increased from 3% to 6%, and the tax sale delinquency period for seniors was extended from four to ten years.

Amended Excerpts 3/6/2026 22:03:177 → Amended 3/6/2026 22:03:177 · 3 edits

MINOR

The bill was reformatted to include a full title page, summary, and list of affected statutes, while removing a specific line-by-line edit instruction. The substantive policy content regarding property tax relief definitions and amendments remains unchanged in this excerpt.

Scope change

The bill's scope is now clearly defined with a general description and highlighted provisions, whereas the previous version only contained a specific editing instruction for line 1120.

TECHNICAL

Added a formal title page with sponsor names, a long title describing the bill's purpose, and a list of Utah Code sections affected.

Removed a specific instruction to edit lines 1120 through 1133, which previously contained the actual text changes.

SUMMARY

Included a 'Long Title' section that summarizes the bill's intent to modify property tax relief, define terms, and repeal certain programs.

Introduced → Amended Excerpts 3/6/2026 22:03:177 · 8 edits

MODERATE

This bill updates Utah's property tax relief system to take effect on January 1, 2027, by expanding income limits and credit amounts for renters and homeowners while simultaneously restricting access to certain relief programs to prevent stacking multiple benefits. It also introduces new requirements for tax notices to inform residents about deferral options and clarifies the rules for property tax deferrals and penalties.

Scope change

The bill applies to all Utah property tax relief programs starting January 1, 2027, with specific new restrictions on receiving more than one form of relief simultaneously.

ELIGIBILITY

Increased household income eligibility limits and maximum credit amounts for both the Renter's Credit and Homeowner's Credit to help more low-income residents.

REQUIREMENT

Added a two-year waiting period requirement, effective 2027, preventing taxpayers from receiving the Homeowner's Credit or Indigent Abatement if they received it within the previous two years.

Removed the annual inflation adjustment requirement for the Homeowner's Credit, replacing it with a fixed annual increase of $49 to credit amounts.

Mandated that county tax notices must include specific information about property tax deferral programs and contact details for applying.

Established a prohibition on receiving more than one form of property tax relief (such as combining a credit with a deferral) for the same property, with specific exceptions.

DEFINITION

Updated the definition of a 'claimant' to lower the age threshold from 67 to 66 for filing certain tax relief claims.

Changed the age requirement for 'Eligible Owners' qualifying for discretionary and nondiscretionary deferrals from 75 to 65 years old.

TIMELINE

Set the effective date for all new provisions to January 1, 2027.

Property Tax Relief Amendments

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