Tax Revenue Amendments

39
10-6-116
17-63-204
59-2-103
59-2-924
SB0097
SB0206
59-2-103 (05/06/26)
0
Tax Revenue Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Daniel McCay
House Sponsor:
LONG TITLE
General Description:
This bill modifies provisions related to tax revenue.
Highlighted Provisions:
This bill:
defines terms;
limits the amount of reserve funds maintained by cities and counties;
reduces the amount of the residential property tax exemption for rental properties, with
certain exceptions;
clarifies the applicability of the residential exemption for owners of multiple primary
residences in the state;
requires counties to provide information to the Multicounty Appraisal Trust regarding
business entities that receive the residential exemption;
excludes certain property valuation increases from the calculation of locally assessed new
growth;
excludes increases to the value of tangible personal property from the calculation of
project area new growth;
subtracts from a city's certified tax rate calculation any amount of reserve funds
maintained by the city in excess of the maximum amount authorized, beginning in fiscal
year 2032;
includes a coordination clause to incorporate changes to the Multicounty Appraisal Trust
in S.B. 206, Tax Amendments; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
This bill provides a coordination clause.
Utah Code Sections Affected:
AMENDS:
10-6-116
, as last amended by Laws of Utah 2021, Chapter 52
17-63-204
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 13
59-2-103
, as last amended by Laws of Utah 2025, Chapter 234
59-2-924
, as last amended by Laws of Utah 2025, First Special Session, Chapter 15
Utah Code Sections Affected by Coordination Clause:
59-2-103 (05/06/26)
, as last amended by Laws of Utah 2025, Chapter 234
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
10-6-116
is amended to read:
10-6-116
. Accumulated fund balances -- Limitations -- Excess balances --
Unanticipated excess of revenues -- Reserves for capital improvements.
(1)
(a)
A city may accumulate retained earnings or fund balances, as appropriate, in any
fund. With respect to the city general fund only, any accumulated fund balance is
restricted to the following purposes:
(i)
to provide working capital to finance expenditures from the beginning of the
budget period until general property taxes, sales taxes, or other applicable
revenues are collected, thereby reducing the amount the city must borrow during
the period;
(ii)
to provide a resource to meet emergency expenditures under Section
10-6-129
;
and
(iii)
to cover a pending year-end excess of expenditures over revenues from an
unavoidable shortfall in revenues.
(b)
Notwithstanding Subsection
(1)(a)(i)
, a city may not appropriate a fund balance for
budgeting purposes except as provided in Subsection
(4)
.
(c)
Notwithstanding Subsection
(1)(a)(iii)
, a city may not appropriate a fund balance to
avoid an operating deficit during any budget period except as provided under
Subsection
(4)
, or for emergency purposes under Section
10-6-129
.
(2)
(a)
As used in this Subsection (2), "excess amount" means any fund balance in a city
general fund for the current fiscal year period in excess of the maximum amount
permitted under Subsection (2)(b).
(b)
The accumulation of a fund balance in the city general fund may not exceed
:

(i)
35%
25%
of the total revenue of the city general fund for the current fiscal period
,
if the total amount of revenue in the city general fund is $50,000,000 or more;
(ii)
28% of the total revenue of the city general fund for the current fiscal period, if
the total amount of revenue in the city general fund is $25,000,000 or more but
less than $50,000,000; or
(iii)
30%
.
of the total revenue of the city general fund for the current fiscal period, if
the total amount of revenue in the city general fund is less than $25,000,000.
(c)
For a fiscal year beginning on or after July 1, 2031, a city's budgeted ad valorem
property tax revenue shall, for purposes of calculating the city's certified tax rate, be
reduced by any excess amount in accordance with Subsection 59-2-924(4)(a)(ii).
(3)
If the fund balance at the close of any fiscal period exceeds the amount permitted under
Subsection
(2)
, the excess shall be appropriated in the manner provided in Section
10-6-117
.
(4)
Any fund balance in excess of 5% of the total revenues of the city general fund may be
utilized for budget purposes.
(5)
(a)
Within a capital improvements fund, the governing body may, in any budget
period, appropriate from estimated revenue or fund balance to a reserve for capital
improvements for the purpose of financing future specific capital improvements,
under a formal long-range capital plan adopted by the governing body.
(b)
The reserves described in Subsection
(5)(a)
may accumulate from fiscal period to
fiscal period until the accumulated total is sufficient to permit economical
expenditure for the specified purposes.
(c)
Disbursements from reserves described in Subsection
(5)(a)
shall be made only by
transfer to a revenue or transfer account within the capital improvements fund, under
a budget appropriation in a budget for the fund adopted in the manner provided by
this chapter.
(d)
Expenditures from the above appropriation budget accounts shall conform to all
requirements of this chapter relating to execution and control of budgets.
Section 2. Section
17-63-204
is amended to read:
17-63-204
. Retained earnings -- Accumulation -- Restrictions -- Disbursements.
(1)
(a)
A county may accumulate:
(i)
retained earnings in any enterprise or internal service fund; and
(ii)
a fund balance in any fund that is not an enterprise or internal service fund.
(b)
Notwithstanding Subsection
(1)(a)
, use of the county general fund shall be restricted
to the following purposes:
(i)
to provide cash to finance expenditures from the beginning of the budget period
until general property taxes, sales taxes, or other revenues are collected;
(ii)
to provide a fund or reserve to meet emergency expenditures; and
(iii)
to cover unanticipated deficits for future years.
(2)
(a)
The maximum accumulated unappropriated surplus in the county general fund, as
determined before adoption of the tentative budget, may not exceed an amount equal
to
the greater of:
100% of the county's prior year budgeted property tax revenue.
(i)
(A)
for a county with a taxable value of $750,000,000 or more and a
population of 100,000 or more, 25% of the total revenues of the county general
fund for the current fiscal period; or
(B)
for any other county, 65% of the total revenues of the county general fund for
the current fiscal period; and
(ii)
the estimated total revenues from property taxes for the current fiscal period.
(b)
Any surplus balance in excess of the above computed maximum shall be included in
the estimated revenues of the county general fund budget for the next fiscal period.
(3)
Any fund balance exceeding 5% of the total county general fund revenues may be used
for budgetary purposes.
(4)
(a)
A county may appropriate funds from estimated revenue in any budget period to a
reserve for capital improvements within any capital improvements fund which has
been duly established by ordinance or resolution.
(b)
Money in the reserves shall be allowed to accumulate from fiscal period to fiscal
period until the accumulated total is sufficient to permit economical expenditure for
the specified purposes.
(c)
Disbursements from the reserves shall be made only by transfer to a revenue account
within a capital improvements fund in accordance with an appropriation for the fund.
(d)
Expenditures from the capital improvement budget accounts shall conform to all
requirements of this chapter as it relates to the execution and control of budgets.
The following section is affected by a coordination clause at the end of this bill.
Section 3. Section
59-2-103
is amended to read:
59-2-103
. Rate of assessment of property -- Residential property.
(1)
As used in this section:
(a)
(i)
"Business entity" means:
(A)
an association;
(B)
a corporation;
(C)
a limited liability company;
(D)
a partnership; or
(E)
a business entity similar to Subsections (1)(a)(i)(A) through (D).
(ii)
"Business entity" does not include a trust.
(a)
(b)
(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.
(c)
"Multicounty Appraisal Trust" means the same as that term is defined in Section
59-2-1601
.
(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)
(a)
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
:

(i)
a 45% reduction in the value of the property
if the residential property:
(A)
is the primary residence of one or more of the residential property's owners;
(B)
has only one parcel identification number; and
(C)
has fewer than three units; or
(ii)
except as provided in Subsection (3)(b), a 40% reduction in the value of the
property if the residential property:
(A)
does not qualify for a residential exemption under Subsection (3)(a)(i); and
(B)
is the primary residence of a tenant, regardless of whether the residential
property is the primary residence of one or more of the residential property's
owners
.
(b)
Notwithstanding Subsection (3)(a)(ii), the fair market value of residential property
that is the primary residence of a tenant is allowed a residential exemption equal to
45% for a calendar year if the residential property:
(i)
is a multi-family rental unit; and
(ii)
is subject to an extended low-income housing commitment and declaration of
restrictive covenants in accordance with the low-income housing tax credit
program described in Section 42, Internal Revenue Code.
(c)
Residential property that does not qualify for a residential exemption under
Subsection (3)(a) or (b) is not allowed a residential exemption.
(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)
Subsection (6)(c)
, a
residential exemption described in Subsection
(3)
is limited to one primary residence
per household
, regardless of the number of ownership interests an owner has in the
state, either as an individual or through a business entity
.
(b)
For purposes of Subsection (6)(a), primary residence is where domicile is established.
(b)
(c)
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)
(i)
each residential property that is the primary residence of a tenant; and
(iii)
(ii)
subject to Subsection
59-2-103.5
(4), each residential property described in
Subsection
59-2-102(35)(b)(ii)
.
(7)
If a business entity receives a residential exemption under this section, the county in
which the residential property is located shall provide information regarding the
property to the Multicounty Appraisal Trust for purposes of assisting counties in
identifying property owners who receive a residential exemption under this section in
more than one county.
(8)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes domicile.
Section 4. Section
59-2-924
is amended to read:
59-2-924
. Definitions -- Report of valuation of property to county auditor and
commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax
rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
commission.
(1)
As used in this section:

(a)
(i)
"Ad valorem property tax revenue" means revenue collected in accordance with
this chapter.
(ii)
"Ad valorem property tax revenue" does not include:
(A)
interest;
(B)
penalties;
(C)
collections from redemptions; or
(D)
revenue received by a taxing entity from personal property that is
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment.
(b)
"Adjusted tax increment" means the same as that term is defined in Section
17C-1-102
.
(c)
(i)
"Aggregate taxable value of all property taxed" means:
(A)
the aggregate taxable value of all real property a county assessor assesses in
accordance with Part 3, County Assessment, for the current year;
(B)
the aggregate taxable value of all real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for the current
year; and
(C)
the aggregate year end taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, contained on the prior
year's tax rolls of the taxing entity.
(ii)
"Aggregate taxable value of all property taxed" does not include the aggregate
year end taxable value of personal property that is:
(A)
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment; and
(B)
contained on the prior year's tax rolls of the taxing entity.
(d)
"Base taxable value" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
the same as that term is defined in Section
11-59-207
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(v)
for an authority created under Section
63H-1-201
, the same as that term is defined
in Section
63H-1-102
;
(vi)
for a host local government, the same as that term is defined in Section
63N-2-502
;
(vii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
(viii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part
5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80,
Part 5, Home Ownership Promotion Zone, a property's taxable value as shown
upon the assessment roll last equalized during the base year, as that term is
defined in Section
10-21-101
or Section
17-80-101
;
(ix)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, a property's taxable value as shown upon the
assessment roll last equalized during the base year, as that term is defined in
Section
63N-3-1601
;
(x)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part
17, Major Sporting Event Venue Zone Act, a property's taxable value as shown
upon the assessment roll last equalized during the property tax base year, as that
term is defined in Section
63N-3-1701
; or
(xi)
for an electrical energy development zone created under Section
79-6-1104
, the
value of the property within an electrical energy development zone, as shown on
the assessment roll last equalized before the creation of the electrical development
zone, as that term is defined in Section
79-6-1104
.
(e)
"Building area" means the total floor area of a structure measured from the exterior
dimensions of the structure's enclosing walls, including each level of finished or
unfinished space designed for occupancy or use.
(e)
(f)
"Centrally assessed benchmark value" means an amount equal to the average
year end taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous three calendar
years, adjusted for taxable value attributable to:
(i)
an annexation to a taxing entity;
(ii)
an incorrect allocation of taxable value of real or personal property the
commission assesses in accordance with Part 2, Assessment of Property; or
(iii)
a change in value as a result of a change in the method of apportioning the value
prescribed by the Legislature, a court, or the commission in an administrative rule
or administrative order.
(f)
(g)
"Centrally assessed industry" means the following industry classes the
commission assesses in accordance with Part 2, Assessment of Property:
(i)
air carrier;
(ii)
coal;
(iii)
coal load out property;
(iv)
electric generation;
(v)
electric rural;
(vi)
electric utility;
(vii)
gas utility;
(viii)
ground access property;
(ix)
land only property;
(x)
liquid pipeline;
(xi)
metalliferous mining;
(xii)
nonmetalliferous mining;
(xiii)
oil and gas gathering;
(xiv)
oil and gas production;
(xv)
oil and gas water disposal;
(xvi)
railroad;
(xvii)
sand and gravel; and
(xviii)
uranium.
(g)
(h)
(i)
"Centrally assessed new growth" means the greater of:
(A)
for each centrally assessed industry, zero; or
(B)
the amount calculated by subtracting the centrally assessed benchmark value
for each centrally assessed industry, adjusted for prior year end incremental
value, from the taxable value of real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for each centrally
assessed industry for the current year, adjusted for current year incremental
value.
(ii)
"Centrally assessed new growth" does not include a change in value for a
centrally assessed industry as a result of a change in the method of apportioning
the value prescribed by the Legislature, a court, or the commission in an
administrative rule or administrative order.
(h)
(i)
"Certified tax rate" means a tax rate that will provide the same ad valorem
property tax revenue for a taxing entity as was budgeted by that taxing entity for the
prior year.
(i)
(j)
"Community reinvestment agency" means the same as that term is defined in
Section
17C-1-102
.
(j)
(k)
"Eligible new growth" means the greater of:
(i)
zero; or
(ii)
the sum of:
(A)
locally assessed new growth;
(B)
centrally assessed new growth; and
(C)
project area new growth or hotel property new growth.
(k)
(l)
"Host local government" means the same as that term is defined in Section
63N-2-502
.
(l)
(m)
"Hotel property" means the same as that term is defined in Section
63N-2-502
.
(m)
(n)
"Hotel property new growth" means an amount equal to the incremental value
that is no longer provided to a host local government as incremental property tax
revenue.
(n)
(o)
"Incremental property tax revenue" means the same as that term is defined in
Section
63N-2-502
.
(o)
(p)
"Incremental value" means:
(i)
for an authority created under Section
11-58-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a project area and on which property tax
differential is collected; and
(B)
the number that represents the percentage of the property tax differential that
is paid to the authority;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
an amount calculated by multiplying:
(A)
the difference between the current assessed value of the property and the base
taxable value; and
(B)
the number that represents the percentage of the property tax augmentation, as
defined in Section
11-59-207
, that is paid to the Point of the Mountain State
Land Authority;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the amount calculated by multiplying:
(A)
the difference between the taxable value for the current year and the base
taxable value of the property that is located within a project area; and
(B)
the number that represents the percentage of enhanced property tax revenue,
as defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which tax increment is collected;
and
(B)
the number that represents the adjusted tax increment from that project area
that is paid to the agency;
(v)
for an authority created under Section
63H-1-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which property tax allocation is
collected; and
(B)
the number that represents the percentage of the property tax allocation from
that project area that is paid to the authority;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created in accordance with Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a housing and transit reinvestment zone or
convention center reinvestment zone and on which tax increment is collected;
and
(B)
the number that represents the percentage of the tax increment that is paid to
the housing and transit reinvestment zone or convention center reinvestment
zone;
(vii)
for a host local government, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
hotel property on which incremental property tax revenue is collected; and
(B)
the number that represents the percentage of the incremental property tax
revenue from that hotel property that is paid to the host local government;
(viii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part
5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80,
Part 5, Home Ownership Promotion Zone, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a home ownership promotion zone and on which
tax increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the home ownership promotion zone;
(ix)
for a first home investment zone created in accordance with Title 63N, Chapter
3, Part 16, First Home Investment Zone Act, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a first home investment zone and on which tax
increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the first home investment zone;
(x)
for a major sporting event venue zone created pursuant to Title 63N, Chapter 3,
Part 17, Major Sporting Event Venue Zone Act, an amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a qualified development zone for a major sporting
event venue zone and upon which property tax increment is collected; and
(B)
the number that represents the percentage of tax increment that is paid to the
major sporting event venue zone, as approved by a major sporting event venue
zone committee described in Section
63N-1a-1706
; or
(xi)
for an electrical energy development zone created under Section
79-6-1104
, the
amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within the electrical energy developmental zone; and
(B)
the number that represents the percentage of the tax increment that is paid to a
community reinvestment agency and the Electrical Energy Development
Investment Fund created in Section
79-6-1105
.
(p)
(q)
(i)
"Locally assessed new growth" means the greater of:
(A)
zero; or
(B)
the amount calculated by subtracting the year end taxable value of real
property the county assessor assesses in accordance with Part 3, County
Assessment, for the previous year, adjusted for prior year end incremental
value from the taxable value of real property the county assessor assesses in
accordance with Part 3, County Assessment, for the current year, adjusted for
current year incremental value.
(ii)
"Locally assessed new growth" does not include a change in:
(A)
value as a result of factoring in accordance with Section
59-2-704
, reappraisal,
or another adjustment;
(B)
assessed value based on whether a property is allowed a residential exemption
for a primary residence under Section
59-2-103
;
(C)
assessed value based on whether a property is assessed under Part 5, Farmland
Assessment Act;
or
(D)
assessed value based on whether a property is assessed under Part 17, Urban
Farming Assessment Act
.
; or
(E)
subject to Subsection (10), taxable value attributable to physical
improvements to an existing structure or the construction of a new structure
that does not add new building area related to residential or commercial use,
and excluding any increase in taxable value for property that was assessed in
the previous year as partially completed new growth.
(q)
(r)
"Project area" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iii)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(iv)
for an authority created under Section
63H-1-201
, the same as that term is
defined in Section
63H-1-102
;
(v)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
(vi)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, the same as that term is defined in Section
10-21-101
or Section
17-80-101
;
(vii)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, the same as that term is defined in Section
63N-3-1601
; or
(viii)
for a major sporting event venue zone established under Title 63N, Chapter 3,
Part 17, Major Sporting Event Venue Zone Act, the qualified development zone,
as defined in Section
63N-3-1701
.
(r)
(s)
(i)
"Project area new growth" means:
(i)
(A)
for an authority created under Section
11-58-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
differential;
(ii)
(B)
for the Point of the Mountain State Land Authority created in Section
11-59-201
, an amount equal to the incremental value that is no longer provided
to the Point of the Mountain State Land Authority as property tax
augmentation, as defined in Section
11-59-207
;
(iii)
(C)
for the Utah Fairpark Area Investment and Restoration District created in
Section
11-70-201
, an amount equal to the incremental value that is no longer
provided to the Utah Fairpark Area Investment and Restoration District;
(iv)
(D)
for an agency created under Section
17C-1-201.5
, an amount equal to the
incremental value that is no longer provided to an agency as tax increment;
(v)
(E)
for an authority created under Section
63H-1-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
allocation;
(vi)
(F)
for a housing and transit reinvestment zone or convention center
reinvestment zone created under Title 63N, Chapter 3, Part 6, Housing and
Transit Reinvestment Zone Act, an amount equal to the incremental value that
is no longer provided to a housing and transit reinvestment zone or convention
center reinvestment zone as tax increment;
(vii)
(G)
for a home ownership promotion zone created under Title 10, Chapter
21, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 17,
Chapter 80, Part 5, Home Ownership Promotion Zone, an amount equal to the
incremental value that is no longer provided to a home ownership promotion
zone as tax increment;
(viii)
(H)
for a first home investment zone created under Title 63N, Chapter 3,
Part 16, First Home Investment Zone Act, an amount equal to the incremental
value that is no longer provided to a first home investment zone as tax
increment; or
(ix)
(I)
for a major sporting event venue zone created under Title 63N, Chapter 3,
Part 17, Major Sporting Event Venue Zone Act, an amount equal to the
incremental value that is no longer provided to the creating entity of a major
sporting event venue zone as property tax increment.
(ii)
"Project area new growth" does not include, for any entity listed under Subsection
(1)(s)(i)
, tangible personal property.
(s)
(t)
"Project area incremental revenue" means the same as that term is defined in
Section
17C-1-1001
.
(t)
(u)
"Property tax allocation" means the same as that term is defined in Section
63H-1-102
.
(u)
(v)
"Property tax differential" means the same as that term is defined in Sections
11-58-102
and
79-6-1104
.
(v)
(w)
"Tax increment" means:
(i)
for a project created under Section
17C-1-201.5
, the same as that term is defined
in Section
17C-1-102
;
(ii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as the term "property tax increment" is defined
in Section
63N-3-602
;
(iii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, the same as that term is defined in Section
10-21-101
or Section
17-80-101
;
(iv)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, the same as that term is defined in Section
63N-3-1601
; or
(v)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part
17, Major Sporting Event Venue Zone Act, property tax increment, as that term is
defined in Section
63N-3-1701
.
(2)
Before June 1 of each year, each county assessor shall deliver to the county auditor and
the commission the following statements:
(a)
a statement containing the aggregate valuation of all taxable real property a county
assessor assesses in accordance with Part 3, County Assessment, for each taxing
entity; and
(b)
a statement containing the taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, from the prior year end
values.
(3)
The county auditor shall, on or before June 8, transmit to the governing body of each
taxing entity:
(a)
the statements described in Subsections
(2)(a)
and
(b)
;
(b)
an estimate of the revenue from personal property;
(c)
the certified tax rate; and
(d)
all forms necessary to submit a tax levy request.
(4)
(a)
(i)
Except as otherwise provided in this section
and subject to Subsection
(4)(a)(ii)
, the certified tax rate shall be calculated by dividing the ad valorem
property tax revenue that a taxing entity budgeted for the prior year by the amount
calculated under Subsection
(4)(b)
.
(ii)
For a fiscal year beginning on or after July 1, 2031, the legislative body of a
taxing entity that is a city shall subtract any excess amount, as defined in
Subsection 10-6-116(2), from the ad valorem property tax revenue that the taxing
entity budgeted for the prior year.
(b)
For purposes of Subsection
(4)(a)
, the legislative body of a taxing entity shall
calculate an amount as follows:
(i)
calculate for the taxing entity the difference between:
(A)
the aggregate taxable value of all property taxed; and
(B)
any adjustments for current year incremental value;
(ii)
after making the calculation required by Subsection
(4)(b)(i)
, calculate an amount
determined by increasing or decreasing the amount calculated under Subsection
(4)(b)(i)
by the average of the percentage net change in the value of taxable
property for the equalization period for the three calendar years immediately
preceding the current calendar year;
(iii)
after making the calculation required by Subsection
(4)(b)(ii)
, calculate the
product of:
(A)
the amount calculated under Subsection
(4)(b)(ii)
; and
(B)
the percentage of property taxes collected for the five calendar years
immediately preceding the current calendar year; and
(iv)
after making the calculation required by Subsection
(4)(b)(iii)
, calculate an
amount determined by:
(A)
multiplying the percentage of property taxes collected for the five calendar
years immediately preceding the current calendar year by eligible new growth;
and
(B)
subtracting the amount calculated under Subsection
(4)(b)(iv)(A)
from the
amount calculated under Subsection
(4)(b)(iii)
.
(5)
A certified tax rate for a taxing entity described in this Subsection
(5)
shall be calculated
as follows:
(a)
except as provided in Subsection
(5)(b)
or
(c)
, for a new taxing entity, the certified
tax rate is zero;
(b)
for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
(i)
in a county of the first, second, or third class, the levy imposed for municipal-type
services under Title 17, Chapter 78, Part 5, Provision of Municipal-Type Services
to Unincorporated Areas; and
(ii)
in a county of the fourth, fifth, or sixth class, the levy imposed for general county
purposes and such other levies imposed solely for the municipal-type services
identified in Section
17-78-501
and Subsection
17-63-101(23)
;
(c)
for a community reinvestment agency that received all or a portion of a taxing
entity's project area incremental revenue in the prior year under Title 17C, Chapter 1,
Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in
Subsection
(4)
except that the commission shall treat the total revenue transferred to
the community reinvestment agency as ad valorem property tax revenue that the
taxing entity budgeted for the prior year; and
(d)
for debt service voted on by the public, the certified tax rate is the actual levy
imposed by that section, except that a certified tax rate for the following levies shall
be calculated in accordance with Section
59-2-913
and this section:
(i)
a school levy provided for under Section
53F-8-301
,
53F-8-302
, or
53F-8-303
; and
(ii)
a levy to pay for the costs of state legislative mandates or judicial or
administrative orders under Section
59-2-1602
.
(6)
(a)
A taxing entity may impose a judgment levy under Section
59-2-1328
or
59-2-1330
at a rate that is sufficient to generate only the revenue required to satisfy
one or more eligible judgments.
(b)
The ad valorem property tax revenue generated by a judgment levy described in
Subsection
(6)(a)
may not be considered in establishing a taxing entity's aggregate
certified tax rate.
(7)
(a)
For the purpose of calculating the certified tax rate, the county auditor shall use:
(i)
the taxable value of real property:
(A)
the county assessor assesses in accordance with Part 3, County Assessment;
and
(B)
contained on the assessment roll;
(ii)
the year end taxable value of personal property:
(A)
a county assessor assesses in accordance with Part 3, County Assessment; and
(B)
contained on the prior year's assessment roll; and
(iii)
the taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property.
(b)
For purposes of Subsection
(7)(a)
, taxable value does not include eligible new
growth.
(8)
(a)
On or before June 30 of each year, a taxing entity shall adopt a tentative budget.
(b)
If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify
the county auditor of:
(i)
the taxing entity's intent to exceed the certified tax rate; and
(ii)
the amount by which the taxing entity proposes to exceed the certified tax rate.
(c)
The county auditor shall notify property owners of any intent to levy a tax rate that
exceeds the certified tax rate in accordance with Sections
59-2-919
and
59-2-919.1
.
(9)
(a)
Subject to Subsection
(9)(d)
, the commission shall provide notice, through
electronic means on or before July 31, to a taxing entity and the Revenue and
Taxation Interim Committee if:
(i)
the amount calculated under Subsection
(9)(b)
is 10% or more of the year end
taxable value of the real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous year, adjusted
for prior year end incremental value; and
(ii)
the amount calculated under Subsection
(9)(c)
is 50% or more of the total year
end taxable value of the real and personal property of a taxpayer the commission
assesses in accordance with Part 2, Assessment of Property, for the previous year.
(b)
For purposes of Subsection
(9)(a)(i)
, the commission shall calculate an amount by
subtracting the taxable value of real and personal property the commission assesses
in accordance with Part 2, Assessment of Property, for the current year, adjusted for
current year incremental value, from the year end taxable value of the real and
personal property the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year, adjusted for prior year end incremental value.
(c)
For purposes of Subsection
(9)(a)(ii)
, the commission shall calculate an amount by
subtracting the total taxable value of real and personal property of a taxpayer the
commission assesses in accordance with Part 2, Assessment of Property, for the
current year, from the total year end taxable value of the real and personal property of
a taxpayer the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year.
(d)
The notification under Subsection
(9)(a)
shall include a list of taxpayers that meet the
requirement under Subsection
(9)(a)(ii)
.
(10)
For purposes of Subsection
(1)(q)(i)(B)
, a county assessor may not use permit value to
determine the market value of construction in progress as of January 1.
Section 5.
Effective Date.
This bill takes effect on January 1, 2027.
Section 6.
Coordinating S.B. 97 with S.B. 206.
If S.B. 97, Tax Revenue Amendments, and S.B. 206, Tax Amendments, both pass and
become law, the Legislature intends that, on January 1, 2027:
(1)
Subsection 59-2-103(1)(c), enacted in S.B. 97, be amended to read:
"(c) "Program manager" means the same as that term is defined in Section
59-2-1601."; and
(2)
Subsection 59-2-103(7), enacted in S.B. 97, be amended to read:
"(7) If a business entity receives a residential exemption under this section, the
county in which the residential property is located shall provide information regarding
the property to the program manager for purposes of assisting counties in identifying
property owners who receive a residential exemption under this section in more than one
county.".
3-3-26 7:07 PM