Budget & Taxes (Property Tax)

SB 243 amends tax increment financing rules for public transit-oriented developments in designated counties. It limits new projects to a 1/3-mile radius of transit hubs, restricts total project area to 125 noncontiguous acres, and caps the capture of property tax increases at 50% (not 80%) over a 15-year period per parcel. These changes apply specifically to projects approved under the bill's framework within a 30-year overall timeline. The bill is currently pending in the Senate Rules Committee after committee recommendations failed.

HB 485 limits how much revenue school districts and other local taxing entities can collect from new property value growth (e.g., increases in property values beyond the base assessment). It caps this revenue at the lesser of two amounts: (1) new growth multiplied by a set tax rate, or (2) an inflation-adjusted budget increase. This change affects school districts' ability to raise funds from new property values and adjusts how state contributions to basic school programs are calculated. The bill makes technical updates to property tax laws without appropriating new state funds, effective January 1, 2027.

HB 484 limits how much additional property tax revenue Utah school districts and local taxing entities can collect without voter approval, capping increases at 20% of their previous year's revenue. It requires voter approval for tax hikes exceeding this limit and eliminates a protection period that previously shielded school districts from losing state funding when lowering tax rates. The bill also phases out excess state funding over three years if a school district reduces its certified tax rate, ensuring funding aligns with current property valuations. This directly affects school districts' budgets and local tax collection processes under Utah law.

HJR 20 proposes a constitutional amendment to require voter approval for most tax increases and government debt in Utah. If passed, it would mandate that taxpayers vote to approve any rise in tax revenue or new borrowing by state or local governments, limit annual spending without voter consent, and require refunds of excess tax revenue. The amendment also specifies that residential property must be assessed using sales comparison (standard home valuation method) and allows the legislature to exempt business personal property from taxes. This change would affect all Utah taxpayers and government entities by shifting key budgetary decisions to voter approval.

SB 231 modifies Utah's property tax system for large energy users (facilities with 100+ megawatts of cumulative electricity demand). It prohibits new tax increment financing agreements (a tool for funding development projects) for projects containing such "large load customers" after May 6, 2026, affecting cities, counties, and special districts. The bill also requires large load customers to notify county auditors and treasurers of their location. These changes adjust how tax revenue is distributed and restrict development funding for major energy consumers.

SB 97 limits how much surplus funds cities and counties can accumulate in their general funds (capping it at 25% of annual revenue) and changes residential property tax rules. It restricts property tax exemptions to one primary residence per household, requires homeowners to reapply for exemptions if ownership changes or eligibility is questioned, and creates a presumption that business-owned property doesn't qualify for residential exemptions. The bill also prohibits using property tax revenue for capital improvement reserves after a set date and adjusts how property value increases are counted for tax calculations. These changes directly affect local governments managing tax revenues and homeowners seeking property tax exemptions.