Property Tax Modifications

3
59-2-103
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Property Tax Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jill Koford
Senate Sponsor:
LONG TITLE
General Description:
This bill modifies the property tax exemption for primary residential property.
Highlighted Provisions:
This bill:
contingent on passage of a proposed constitutional amendment, increases the percentage
of the fair market value of primarily residential property that is exempt from property
tax.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-2-103
Contingently Effective
1/1/27
, as last amended by Laws of Utah 2025, Chapter 234
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
59-2-103
is amended to read:
59-2-103
Contingently Effective
1/1/27
. Rate of assessment of property -- Residential property.
(1)
As used in this section:
(a)
(i)
"Household" means the association of individuals who live in the same
dwelling, sharing the dwelling's furnishings, facilities, accommodations, and
expenses.
(ii)
"Household" includes married individuals, who are not legally separated, who
have established domiciles at separate locations within the state.
(b)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "domicile."
(2)
All tangible taxable property located within the state shall be assessed and taxed at a
uniform and equal rate on the basis of its fair market value, as valued on January 1,
unless otherwise provided by law.
(3)
Subject to Subsections
(4)
through
(6)
and Section
59-2-103.5
, for a calendar year, the
fair market value of residential property located within the state is allowed a residential
exemption equal to a
45%
60%
reduction in the value of the property.
(4)
Part-year residential property located within the state is allowed the residential
exemption described in Subsection
(3)
if the part-year residential property is used as
residential property for 183 or more consecutive calendar days during the calendar year
for which the owner seeks to obtain the residential exemption.
(5)
No more than one acre of land per residential unit may qualify for the residential
exemption described in Subsection
(3)
.
(6)
(a)
Except as provided in Subsections
(6)(b)(ii)
and
(iii)
, a residential exemption
described in Subsection
(3)
is limited to one primary residence per household.
(b)
An owner of multiple primary residences located within the state is allowed a
residential exemption under Subsection
(3)
for:
(i)
subject to Subsection
(6)(a)
, the primary residence of the owner;
(ii)
each residential property that is the primary residence of a tenant; and
(iii)
subject to Subsection
59-2-103.5
(4), each residential property described in
Subsection
59-2-102(35)(b)(ii)
.
Section 2.
Effective Date.
This bill takes effect on January 1, 2027, if the amendment to the Utah Constitution
proposed by H.J.R. 7, Proposal to Amend Utah Constitution - Property Tax Modifications,
2026 General Session, passes the Legislature and is approved by a majority of those voting on
it at the next regular general election.
1-6-26 4:09 PM