Read the full stored bill text
4
Article XIII, Section 3
0
Proposal to Amend Utah Constitution - Property Tax Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jill Koford
Senate Sponsor:
LONG TITLE
General Description:
This joint resolution of the Utah Legislature proposes to amend the Utah Constitution
relating to the Legislature's authority to exempt a portion of the fair market value of residential
property from property tax.
Highlighted Provisions:
This resolution proposes to amend the Utah Constitution to:
authorize the Legislature to exempt up to 60% of the fair market value of residential
property from property tax.
Other Special Clauses:
This resolution directs the lieutenant governor to submit this proposal to voters.
This resolution provides a contingent effective date of
January 1, 2027
for this proposal.
Utah Constitution Sections Affected:
AMENDS:
Article XIII, Section 3
Be it resolved by the Legislature of the state of Utah, two-thirds of all members elected to each
of the two houses voting in favor thereof:
Section 1. It is proposed to amend Utah Constitution, Article XIII, Section 3 to read
Article XIII, Section 3
. [Property tax exemptions.]
(1)
The following are exempt from property tax:
(a)
property owned by the State;
(b)
property owned by a public library;
(c)
property owned by a school district;
(d)
property owned by a political subdivision of the State, other than a school district,
and located within the political subdivision;
(e)
property owned by a political subdivision of the State, other than a school district,
and located outside the political subdivision unless the Legislature by statute
authorizes the property tax on that property;
(f)
property owned by a nonprofit entity used exclusively for religious, charitable, or
educational purposes;
(g)
places of burial not held or used for private or corporate benefit;
(h)
farm equipment and farm machinery as defined by statute;
(i)
water rights, reservoirs, pumping plants, ditches, canals, pipes, flumes, power plants,
and transmission lines to the extent owned and used by an individual or corporation
to irrigate land that is:
(i)
within the State; and
(ii)
owned by the individual or corporation, or by an individual member of the
corporation; and
(j)
(i)
if owned by a nonprofit entity and used within the State to irrigate land, provide
domestic water, as defined by statute, or provide water to a public water supplier:
(A)
water rights; and
(B)
reservoirs, pumping plants, ditches, canals, pipes, flumes, and, as defined by
statute, other water infrastructure;
(ii)
land occupied by a reservoir, ditch, canal, or pipe that is exempt under Subsection
(1)(j)(i)(B)
if the land is owned by the nonprofit entity that owns the reservoir,
ditch, canal, or pipe; and
(iii)
land immediately adjacent to a reservoir, ditch, canal, or pipe that is exempt
under Subsection
(1)(j)(i)(B)
if the land is:
(A)
owned by the nonprofit entity that owns the adjacent reservoir, ditch, canal, or
pipe; and
(B)
reasonably necessary for the maintenance or for otherwise supporting the
operation of the reservoir, ditch, canal, or pipe.
(2)
(a)
The Legislature may by statute exempt the following from property tax:
(i)
tangible personal property constituting inventory present in the State on January 1
and held for sale in the ordinary course of business;
(ii)
tangible personal property present in the State on January 1 and held for sale or
processing and shipped to a final destination outside the State within 12 months;
(iii)
subject to Subsection
(2)(b)
, property to the extent used to generate and deliver
electrical power for pumping water to irrigate lands in the State;
(iv)
up to
45
60
% of the fair market value of residential property, as defined by
statute;
(v)
household furnishings, furniture, and equipment used exclusively by the owner of
that property in maintaining the owner's home; and
(vi)
tangible personal property that, if subject to property tax, would generate an
inconsequential amount of revenue.
(b)
The exemption under Subsection
(2)(a)(iii)
shall accrue to the benefit of the users of
pumped water as provided by statute.
(3)
The following may be exempted from property tax as provided by statute:
(a)
property owned by a disabled person who, during military training or a military
conflict, was disabled in the line of duty in the military service of the United States or
the State;
(b)
property owned by the unmarried surviving spouse or the minor orphan of a person
who:
(i)
is described in Subsection
(3)(a)
; or
(ii)
during military training or a military conflict, was killed in action or died in the
line of duty in the military service of the United States or the State; and
(c)
real property owned by a person in the military or the person's spouse, or both, and
used as the person's primary residence, if the person serves under an order to federal
active duty out of state for at least 200 days in a continuous 365-day period.
(4)
The Legislature may by statute provide for the remission or abatement of the taxes of
the poor.
Section 2.
Submittal to voters.
The lieutenant governor is directed to submit this proposed amendment to the voters of
the state at the next regular general election in the manner provided by law.
Section 3.
Contingent effective date.
If the amendment proposed by this joint resolution is approved by a majority of those
voting on it at the next regular general election, the amendment shall take effect on January 1,
2027.
1-6-26 3:52 PM