Single-family Home Rental Modifications

81
59-2-919.1
59-2-919.1
59-32-101
59-32-102
59-32-103
59-32-104
59-32-201
59-32-202
59-32-203
61-2-101
61-2-102
61-2-301
61-2-302
63I-1-259
63I-1-261
63I-1-263
63N-22-101
63N-22-102
63N-22-103
0
Single-family Home Rental Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: John D. Johnson
House Sponsor:
LONG TITLE
General Description:
This bill addresses rentals of single-family homes.
Highlighted Provisions:
This bill:
defines terms, including "single-family home";
establishes a registration requirement for owners, including property managers, of
single-family homes used for rental;
imposes a penalty for failure to register;
requires notice of the registration requirement to be included with the 2026 property
valuation notice;
subjects an owner of 25 or more single-family homes used for rental to an excise tax per
home;
requires the Division of Real Estate to provide owners who register with information
about the excise tax and to share information about registered property with the county
assessors for purposes of verifying eligibility for the primary residential exemption;
creates a competitive grant program for a municipality to obtain funding to transition
single-family homes to owner-occupied homes;
schedules the repeal of the registration requirement, the excise tax, and the grant program
but requires legislative review before repeal; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-2-919.1
Effective
05/06/26
Superseded
07/01/26
, as last amended by Laws of
Utah 2025, Chapter 337
59-2-919.1
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapter 518
59-32-101
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 339
59-32-102
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 339
59-32-103
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 339
59-32-104
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 339
61-2-102
Effective
05/06/26
, as enacted by Laws of Utah 2010, Chapter 379
63I-1-259
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 270
63I-1-261
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 385
63I-1-263
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapters 391,
512
ENACTS:
59-32-201
Effective
05/06/26
, Utah Code Annotated 1953
59-32-202
Effective
05/06/26
, Utah Code Annotated 1953
59-32-203
Effective
05/06/26
, Utah Code Annotated 1953
61-2-301
Effective
05/06/26
, Utah Code Annotated 1953
61-2-302
Effective
05/06/26
, Utah Code Annotated 1953
63N-22-101
Effective
05/06/26
, Utah Code Annotated 1953
63N-22-102
Effective
05/06/26
, Utah Code Annotated 1953
63N-22-103
Effective
05/06/26
, Utah Code Annotated 1953
REPEALS:
61-2-101
Effective
05/06/26
, as enacted by Laws of Utah 2010, Chapter 379
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
59-2-919.1
is amended to read:
59-2-919.1
Effective
05/06/26
Superseded
07/01/26
. Notice of property
valuation and tax changes.
(1)
In addition to the notice requirements of Section
59-2-919
, the county auditor, on or
before July 22 of each year, shall notify each owner of real estate who is listed on the
assessment roll.
(2)
The notice described in Subsection
(1)
shall:
(a)
except as provided in Subsection
(5)
(6)
, be sent to all owners of real property by
mail 10 or more days before the day on which:
(i)
the county board of equalization meets; and
(ii)
the taxing entity holds a public hearing on the proposed increase in the certified
tax rate;
(b)
be on a form that
is
:
(i)
approved by
the commission
approves
; and
(ii)
is
uniform in content in all counties in the state; and
(c)
contain for each property:
(i)
the assessor's determination of the value of the property;
(ii)
the taxable value of the property;
(iii)
for property
assessed by
the county assessor
assesses
:
(A)
instructions on how the taxpayer may file an application with the county
board of equalization to appeal the valuation or equalization of the property
under Section
59-2-1004
, including instructions for filing an application
through electronic means; and
(B)
the deadline for the taxpayer to make an application to appeal the valuation or
equalization of the property under Section
59-2-1004
;
(iv)
for property
assessed by
the commission
assesses
:
(A)
instructions on how the taxpayer may file an application with the commission
for a hearing on an objection to the valuation or equalization of the property
under Section
59-2-1007
;
(B)
the deadline for the taxpayer to apply to the commission for a hearing on an
objection to the valuation or equalization of the property under Section
59-2-1007
; and
(C)
a statement that the taxpayer may not appeal the valuation or equalization of
the property to the county board of equalization;
(v)
itemized tax information for all applicable taxing entities, including:
(A)
the dollar amount of the taxpayer's tax liability for the property in the prior
year; and
(B)
the dollar amount of the taxpayer's tax liability under the current rate;
(vi)
the following, stated separately:
(A)
the charter school levy described in Section
53F-2-703
;
(B)
the multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
(C)
the county assessing and collecting levy described in Subsection
59-2-1602(4)
;
(D)
levies for debt service voted on by the public;
(E)
levies imposed for special purposes under Section
10-6-133.4
;
(F)
the combined basic rate as defined in Section
53F-2-301
; and
(G)
if applicable, the annual payment described in Subsection
63H-1-501(4)(a)
;
(vii)
the tax impact on the property;
(viii)
the date, time, and place of the required public hearing for each entity;
(ix)
property tax information pertaining to:
(A)
taxpayer relief; and
(B)
the residential exemption described in Section
59-2-103
;
(x)
information specifically authorized to be included on the notice under this chapter;
(xi)
the last property review date of the property as described in
Subsection
59-2-303.1(1)(c)
Section
59-2-303.1
;
(xii)
instructions on how the taxpayer may obtain additional information regarding
the valuation of the property, including the characteristics and features of the
property, from:
(A)
a website maintained by the county; or
(B)
the statewide web portal developed and maintained by the Multicounty
Appraisal Trust under Subsection
59-2-1606
(5)(a)
for uniform access to
property characteristics and features; and
(xiii)
other information approved by the commission.
(3)
If a taxing entity that is subject to the notice and hearing requirements of Subsection
59-2-919(4)
proposes a tax increase, the notice described in Subsection
(1)
shall state, in
addition to the information required by Subsection
(2)
:
(a)
the dollar amount of the taxpayer's tax liability if the
taxing entity approves the
proposed increase
is approved
;
(b)
the difference between the dollar amount of the taxpayer's tax liability if
the taxing
entity approves
the proposed increase
is approved
and the dollar amount of the
taxpayer's tax liability under the current rate, placed in close proximity to the
information described in Subsection
(2)(c)(viii)
;
(c)
the percentage increase that the dollar amount of the taxpayer's tax liability under the
proposed tax rate represents as compared to the dollar amount of the taxpayer's tax
liability under the current tax rate; and
(d)
for each taxing entity proposing a tax increase, the dollar amount of additional ad
valorem tax revenue, as defined in Section
59-2-919
, that would be generated each
year if
the taxing entity approves
the proposed tax increase
is approved
.
(4)
In addition to any other tax relief information required under Subsection
(2)(c)(ix)(A)
, a
notice sent to a residential property shall:
(a)
state, "If you are 65 years old or older, disabled, or experiencing extreme hardship,
and this property is your primary residence, you may be eligible to defer payment of
this property tax."; and
(b)
include a telephone number, or a website address on which a telephone number is
prominently listed, that the property owner may call to obtain additional information
about applying for a deferral.
(5)
A county shall include with the notice provided on or before July 22, 2026, information
about the requirement for an owner of a single-family home used as a rental to register
in accordance with Section
61-2-302
.
(5)
(6)
(a)
Subject to the other provisions of this Subsection
(5)
(6)
, a county auditor
may provide, at the county auditor's discretion, the notice required by this section to a
taxpayer by electronic means if a taxpayer makes an election, according to
procedures
determined by
the county auditor
determines
, to receive the notice by
electronic means.
(b)
(i)
If a county auditor sends a notice required by this section by electronic means,
the county auditor shall attempt to verify whether a taxpayer receives the notice.
(ii)
If the county auditor cannot verify receipt of the notice sent by electronic means
14 days or more before the county board of equalization meets and the taxing
entity holds a public hearing on a proposed increase in the certified tax rate, the
county auditor shall send the notice required by this section by mail as provided in
Subsection
(2)
.
(c)
A taxpayer may revoke an election to receive the notice required by this section by
electronic means if the taxpayer provides written notice to the county auditor on or
before April 30.
(d)
An election or a revocation of an election under this Subsection
(5)
(6)
:
(i)
does not relieve a taxpayer of the duty to pay a tax due under this chapter on or
before the due date for paying the tax; or
(ii)
does not alter the requirement that a taxpayer appealing the valuation or the
equalization of the taxpayer's real property submit the application for appeal
within the time period provided in Subsection
59-2-1004(3)
.
(e)
A county auditor shall provide the notice required by this section as provided in
Subsection
(2)
, until a taxpayer makes a new election in accordance with this
Subsection
(5)
(6)
, if:
(i)
the taxpayer revokes an election in accordance with Subsection
(5)(c)
(6)(c)
to
receive the notice required by this section by electronic means; or
(ii)
the county auditor finds that the taxpayer's electronic contact information is
invalid.
(f)
A person is considered to be a taxpayer for purposes of this Subsection
(5)
(6)

regardless of whether the property that is the subject of the notice required by this
section is exempt from taxation.
Section 2. Section
59-2-919.1
is amended to read:
59-2-919.1
Effective
07/01/26
. Notice of property valuation and tax changes.
(1)
In addition to the notice requirements of Section
59-2-919
, the county auditor, on or
before July 22 of each year, shall notify each owner of real estate who is listed on the
assessment roll.
(2)
The notice described in Subsection
(1)
shall:
(a)
except as provided in Subsection
(5)
(6)
, be sent to all owners of real property by
mail 10 or more days before the day on which:
(i)
the county board of equalization meets; and
(ii)
the taxing entity holds a public hearing on the proposed increase in the certified
tax rate;
(b)
be on a form that
is
:
(i)
approved by
the commission
approves
; and
(ii)
is
uniform in content in all counties in the state; and
(c)
contain for each property:
(i)
the assessor's determination of the value of the property;
(ii)
the taxable value of the property;
(iii)
for property
assessed by
the county assessor
assesses
:
(A)
instructions on how the taxpayer may file an application with the county
board of equalization to appeal the valuation or equalization of the property
under Section
59-2-1004
, including instructions for filing an application
through electronic means; and
(B)
the deadline for the taxpayer to make an application to appeal the valuation or
equalization of the property under Section
59-2-1004
;
(iv)
for property
assessed by
the commission
assesses
:
(A)
instructions on how the taxpayer may file an application with the commission
for a hearing on an objection to the valuation or equalization of the property
under Section
59-2-1007
;
(B)
the deadline for the taxpayer to apply to the commission for a hearing on an
objection to the valuation or equalization of the property under Section
59-2-1007
; and
(C)
a statement that the taxpayer may not appeal the valuation or equalization of
the property to the county board of equalization;
(v)
itemized tax information for all applicable taxing entities, including:
(A)
the dollar amount of the taxpayer's tax liability for the property in the prior
year; and
(B)
the dollar amount of the taxpayer's tax liability under the current rate;
(vi)
the following, stated separately:
(A)
the charter school levy described in Section
53F-2-703
;
(B)
the multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
(C)
the county assessing and collecting levy described in Subsection
59-2-1602(4)
;
(D)
levies for debt service voted on by the public;
(E)
levies imposed for special purposes under Section
10-6-133.4
;
(F)
the minimum basic tax rate as defined in Section
53F-2-301
; and
(G)
if applicable, the annual payment described in Subsection
63H-1-501(4)(a)
;
(vii)
the tax impact on the property;
(viii)
the date, time, and place of the required public hearing for each entity;
(ix)
property tax information pertaining to:
(A)
taxpayer relief; and
(B)
the residential exemption described in Section
59-2-103
;
(x)
information specifically authorized to be included on the notice under this chapter;
(xi)
the last property review date of the property as described in
Subsection
59-2-303.1(1)(c)
Section
59-2-303.1
;
(xii)
instructions on how the taxpayer may obtain additional information regarding
the valuation of the property, including the characteristics and features of the
property, from:
(A)
a website maintained by the county; or
(B)
the statewide web portal developed and maintained by the Multicounty
Appraisal Trust under Subsection
59-2-1606
(5)(a)
for uniform access to
property characteristics and features; and
(xiii)
other information approved by the commission.
(3)
If a taxing entity that is subject to the notice and hearing requirements of Subsection
59-2-919(4)
proposes a tax increase, the notice described in Subsection
(1)
shall state, in
addition to the information required by Subsection
(2)
:
(a)
the dollar amount of the taxpayer's tax liability if
the taxing entity approves
the
proposed increase
is approved
;
(b)
the difference between the dollar amount of the taxpayer's tax liability if
the taxing
entity approves
the proposed increase
is approved
and the dollar amount of the
taxpayer's tax liability under the current rate, placed in close proximity to the
information described in Subsection
(2)(c)(viii)
;
(c)
the percentage increase that the dollar amount of the taxpayer's tax liability under the
proposed tax rate represents as compared to the dollar amount of the taxpayer's tax
liability under the current tax rate; and
(d)
for each taxing entity proposing a tax increase, the dollar amount of additional ad
valorem tax revenue, as defined in Section
59-2-919
, that would be generated each
year if
the taxing entity approves
the proposed tax increase
is approved
.
(4)
In addition to any other tax relief information required under Subsection
(2)(c)(ix)(A)
, a
notice sent to a residential property shall:
(a)
state, "If you are 65 years old or older, disabled, or experiencing extreme hardship,
and this property is your primary residence, you may be eligible to defer payment of
this property tax."; and
(b)
include a telephone number, or a website address on which a telephone number is
prominently listed, that the property owner may call to obtain additional information
about applying for a deferral.
(5)
A county shall include with the notice provided on or before July 22, 2026, information
about the requirement for an owner of a single-family home used as a rental to register
in accordance with Section
61-2-302
.
(5)
(6)
(a)
Subject to the other provisions of this Subsection
(5)
(6)
, a county auditor
may provide, at the county auditor's discretion, the notice required by this section to a
taxpayer by electronic means if a taxpayer makes an election, according to
procedures
determined by
the county auditor
determines
, to receive the notice by
electronic means.
(b)
(i)
If a county auditor sends a notice required by this section by electronic means,
the county auditor shall attempt to verify whether a taxpayer receives the notice.
(ii)
If the county auditor cannot verify receipt of the notice sent by electronic means
14 days or more before the county board of equalization meets and the taxing
entity holds a public hearing on a proposed increase in the certified tax rate, the
county auditor shall send the notice required by this section by mail as provided in
Subsection
(2)
.
(c)
A taxpayer may revoke an election to receive the notice required by this section by
electronic means if the taxpayer provides written notice to the county auditor on or
before April 30.
(d)
An election or a revocation of an election under this Subsection
(5)
(6)
:
(i)
does not relieve a taxpayer of the duty to pay a tax due under this chapter on or
before the due date for paying the tax; or
(ii)
does not alter the requirement that a taxpayer appealing the valuation or the
equalization of the taxpayer's real property submit the application for appeal
within the time period provided in Subsection
59-2-1004(3)
.
(e)
A county auditor shall provide the notice required by this section as provided in
Subsection
(2)
, until a taxpayer makes a new election in accordance with this
Subsection
(5)
(6)
, if:
(i)
the taxpayer revokes an election in accordance with Subsection
(5)(c)
(6)(c)
to
receive the notice required by this section by electronic means; or
(ii)
the county auditor finds that the taxpayer's electronic contact information is
invalid.
(f)
A person is considered to be a taxpayer for purposes of this Subsection
(5)
(6)

regardless of whether the property that is the subject of the notice required by this
section is exempt from taxation.
Section 3. Section
59-32-101
is amended to read:
1. Oil and Gas Production Mitigation Tax Act
59-32-101
Effective
05/06/26
. Definitions.
As used in this
chapter
part
:
(1)
"Barrel" means an amount equal to 42 gallons of oil at atmospheric pressure and at a
temperature of 60 degrees Fahrenheit.
(2)
"Condensate" means hydrocarbons, regardless of gravity, that occur naturally in the
gaseous phase in the reservoir and are separated from the natural gas as liquids through
the process of condensation either in the reservoir, in the wellbore, or at the surface in
field separators.
(3)
"Crude oil" means hydrocarbons, regardless of gravity, that occur naturally in the liquid
phase in the reservoir and are produced at the wellhead in liquid form.
(4)
"Development well" means the same
at
as
that term is defined in Section
59-5-101
.
(5)
(a)
"Gas" means:
(i)
natural gas;
(ii)
natural gas liquids; or
(iii)
any mixture of natural gas and natural gas liquids.
(b)
"Gas" does not include any gaseous or liquid substance processed from coal, oil
shale, tar sands, or any other hydrocarbon substance that occurs naturally in solid
form.
(6)
"MCF" means an amount equal to 1,000 cubic feet of gas at a pressure of 14.73 pounds
per square inch and at a temperature of 60 degrees Fahrenheit.
(7)
"Natural gas" means hydrocarbons, other than oil and natural gas liquids, that occur
naturally in the gaseous phase in the reservoir and are produced and recovered at the
wellhead in gaseous form.
(8)
"Natural gas liquids" means hydrocarbons, regardless of gravity, that are separated from
natural gas as liquids in gas processing plants through the process of condensation,
absorption, adsorption, or other methods.
(9)
(a)
"Oil" means:
(i)
crude oil;
(ii)
condensate; or
(iii)
any mixture of crude oil and condensate.
(b)
"Oil" does not include any gaseous or liquid substance processed from coal, oil
shale, tar sands, or any other hydrocarbon substance that occurs naturally in solid
form.
(10)
(a)
"Oil or gas mitigation fee" means any fee or tax, whether one-time or ongoing,
that
is imposed by
a county
imposes
on oil or gas producers for purposes of
mitigating the direct impacts of oil or gas production on county roads.
(b)
"Oil or gas mitigation fee" includes:
(i)
a transportation service fee or other fee established under
Title 17,
Chapter 27a,
County Land Use, Development, and Management Act, meeting the requirements
of Subsection
(10)(a)
; and
(ii)
an impact fee established under Title 11, Chapter 36a, Impact Fees Act, meeting
the requirements of Subsection
(10)(a)
.
(c)
"Oil or gas mitigation fee" does not include the tax imposed by this
chapter
part
.
(11)
"Produced" means extracted at the wellhead.
(12)
"Producer" means the operator of the well from which oil or gas is produced.
(13)
"Qualifying road" means a paved public road that is:
(a)
a class B road as described in Section
72-3-103
; or
(b)
a class C road as described in Section
72-3-104
.
(14)
"Qualifying special service district" means a special service district under Title 17D,
Chapter 1, Special Service District Act, that provides construction, repair, maintenance,
or improvements for public roads.
(15)
"Recipient county" means a county that receives revenue collected from the tax
imposed by this
chapter
part
.
(16)
"Stripper well" means the same as that term is defined in Section
59-5-101
.
(17)
"Wildcat well" means the same as that term is defined in Section
59-5-101
.
Section 4. Section
59-32-102
is amended to read:
59-32-102
Effective
05/06/26
. Imposition of local impact mitigation tax -- Rate
-- Exemptions -- Shipment out-of-state -- Stockpiling -- Relation to other taxes --
Prohibition on county imposition of oil or gas mitigation fee.
(1)
(a)
Except as provided in Subsection
(2)
, a local impact mitigation tax is imposed at
the rate specified in Subsection
(1)(b)
on the total volume of oil and gas that is:
(i)
produced within the state on or after January 1, 2026, and before January 1, 2029;
and
(ii)
(A)
saved;
(B)
sold; or
(C)
transported from the field from which the oil or gas was produced.
(b)
The rate of the tax
under this chapter
is:
(i)
5 cents per barrel of oil described in Subsection
(1)(a)
; and
(ii)
1/4 cent per MCF of gas described in Subsection
(1)(a)
.
(2)
The tax under this
chapter
part
does not apply to:
(a)
oil or gas produced by the United States;
(b)
oil or gas produced by the state or a political subdivision of the state;
(c)
oil or gas produced by an Indian or Indian tribe as defined in Section
9-9-101
from
land under the jurisdiction of the United States;
(d)
oil or gas produced from a stripper well;
(e)
oil or gas produced from a wildcat well during the first 12 months of well production;
(f)
oil or gas produced from a development well during the first six months of well
production; or
(g)
gas produced or consumed for the purpose of processing oil or gas to a marketable
state by removing natural gas liquids or contaminants.
(3)
If oil or gas is shipped outside the state:
(a)
the shipment constitutes a sale; and
(b)
the oil or gas is subject to the tax imposed by this
chapter
part
.
(4)
(a)
Except as provided in Subsection
(4)(b)
, if oil or gas is stockpiled, the tax under
this
chapter
part
is not imposed until the oil or gas is:
(i)
sold;
(ii)
transported; or
(iii)
delivered.
(b)
If oil or gas is stockpiled for more than two years, the oil or gas is subject to the tax
imposed by this
chapter
part
.
(5)
The tax under this
chapter
part
:
(a)
is separate from and in addition to all other taxes provided by law, including the
severance tax imposed under Chapter 5, Part 1, Oil and Gas Severance Tax;
(b)
does not affect the requirements applicable to the severance tax imposed under
Chapter 5, Part 1, Oil and Gas Severance Tax, including the requirements for the
disposition of severance tax revenue under Sections
59-5-116
and
59-5-119
; and
(c)
is not a severance tax for purposes of Utah Constitution, Article XIII, Section 5,
Subsection
(9)
.
(6)
Unless specifically authorized by statute, a county may not impose an oil or gas
mitigation fee.
Section 5. Section
59-32-103
is amended to read:
59-32-103
Effective
05/06/26
. Payment of tax -- Revenue distribution --
Expenditure of tax revenue -- Administration.
(1)
(a)
The
producer of oil or gas subject to the
tax imposed by this
chapter shall be paid
part shall pay the tax
:
(i)
by the producer of oil or gas subject to the tax
to the commission; and
(ii)
on a quarterly basis on or before the last day of the month following each
calendar quarterly period electronically in a manner
prescribed by
the
commission
approves
.
(b)
For purposes of this Subsection
(1)
, the commission may require necessary
information from producers regarding oil or gas production.
(2)
The commission shall distribute the revenue collected from the tax under this
chapter
part
:
(a)
to the county within which the revenue is collected from oil or gas production; and
(b)
within 60 days from the date on which the tax is paid.
(3)
(a)
(i)
If a county has created a qualifying special service district, the county
treasurer shall transfer the revenue distributed to the county under Subsection
(2)

to the qualifying special service district.
(ii)
A qualifying special service district described in Subsection
(3)(a)(i)
shall expend
the revenue as provided in Subsection
(4)
.
(b)
(i)
If a county has not created a qualifying special service district, the county
treasurer shall deposit the revenue distributed to the county under Subsection
(2)

into a special revenue fund that is created to hold the revenue and is separate from
the county's general fund.
(ii)
A county described in Subsection
(3)(b)(i)
shall expend the revenue as provided
in Subsection
(4)
.
(4)
The revenue collected from the tax under this
chapter
part
may only be expended for
transportation projects that mitigate the direct impacts of oil or gas production on
qualifying roads located within the recipient county.
(5)
The commission shall:
(a)
administer, collect, and enforce the tax under this
chapter
part
in accordance with
Chapter 1, General Taxation Policies; and
(b)
retain and deposit an administrative charge in accordance with Section
59-1-306

from the revenue the commission collects from the tax under this
chapter
part
.
Section 6. Section
59-32-104
is amended to read:
59-32-104
Effective
05/06/26
. County report to Legislature.
(1)
Each recipient county shall submit a written report to the Natural Resources,
Agriculture, and Environment Interim Committee on or before September 1, 2029.
(2)
The report described in Subsection
(1)
shall include:
(a)
an accounting of the county's use of revenue received by the county from the tax
under this
chapter
part
, including information regarding each transportation project
for which the revenue has provided funding;
(b)
for each transportation project described under Subsection
(2)(a)
:
(i)
an explanation as to how the transportation project mitigates the direct impacts of
oil or gas production on qualifying roads located within the county; and
(ii)
a description of any other funding sources in addition to the revenue from the tax
under this chapter; and
(c)
any recommendations for legislative action to reauthorize the tax for the purpose
described in Subsection
59-32-103(4)
.
(3)
The Natural Resources, Agriculture, and Environment Interim Committee shall:
(a)
study any recommendations provided by a recipient county under Subsection
(2)(c)
;
and
(b)
if the Natural Resources, Agriculture, and Environment Interim Committee decides
to recommend legislative action to the Legislature, prepare legislation for
consideration by the Legislature in the next general session.
Section 7. Section
59-32-201
is enacted to read:
2. Single-family Housing Rental Excise Tax
59-32-201
Effective
05/06/26
. Definitions.
As used in this part, "single-family home" means a detached residential structure,
designed to be occupied by an individual household, that the owner rents or will rent during
the calendar year.
Section 8. Section
59-32-202
is enacted to read:
59-32-202
Effective
05/06/26
. Imposition of excise tax.
(1)
Beginning in 2027, an owner that owns, in whole or in part, 25 or more single-family
homes in the state is subject to an annual tax equal to:
(a)
for 25 to 29 single-family homes, $2,000 for each single-family home;
(b)
for 30 to 49 single-family homes:
(i)
$2,000 for each of the first five single-family homes; and
(ii)
$4,000 for each single-family home above 29; and
(c)
for 50 or more single-family homes:
(i)
$2,000 for each of the first five single-family homes;
(ii)
$4,000 for each of the next 20
single-family homes; and
(iii)
$6,000 for each single-family home above 49.
(2)
(a)
An owner shall calculate the amount of tax due based on the number of
single-family homes the owner owns, in whole or in part, on January 1.
(b)
The tax is due on April 15 of each year.
(3)
An owner shall submit a return and remit the tax this section imposes:
(a)
on or before the due date; and
(b)
in an electronic format the commission approves.
(4)
An owner shall retain records to determine the amount of tax due for the same time
period a person is required to keep books and records under Section
59-1-1406
.
Section 9. Section
59-32-203
is enacted to read:
59-32-203
Effective
05/06/26
. Administration of tax -- Distribution of revenue
-- Uses.
(1)
Except as provided in Subsection
(2)
, the commission shall administer, collect, and
enforce a tax under this chapter in accordance with Chapter 1, General Taxation Policies.
(2)
The commission shall transfer annually to the Division of Real Estate an amount equal
to the lesser of:
(a)
1.5% of the revenue the commission collects under this part; or
(b)
the amount sufficient to cover the cost to the Division of Real Estate for
administering the Residential Rental Property Registration Act.
(3)
The commission shall deposit the revenue the commission collects, after making the
transfer described in Subsection
(2)
, into the Housing Transition Redevelopment Fund
created in Section
63N-22-102
.
Section 10. Section
61-2-102
is amended to read:
61-2-102
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"Corporation" means the same as that term is defined in Section
59-7-101
.
(2)
"Department" means the Department of Commerce.
(2)
(3)
"Director" means the director of the division appointed under Section
61-2-201
.
(3)
(4)
"Division" means the Division of Real Estate created in Section
61-2-201
.
(4)
(5)
"Executive director" means the executive director of the department appointed
under Section
13-1-3
.
(6)
"Owner" means:
(a)
an individual that reports income or loss from the rental of at least one single-family
home on a federal or state income tax return; or
(b)
if an individual described in Subsection
(6)(a)
uses a property manager for property
management, the property manager.
(7)
"Pass-through entity taxpayer" means the same as that term is defined in Section
59-10-1402
.
(8)
"Property management" means the same as that term is defined in Section
61-2f-102
.
(9)
"Property manager" means the same as that term is defined in Section
61-2f-102
.
(10)
"Single-family home" means a detached residential structure, designed to be occupied
by an individual household.
Section 11. Section
61-2-301
is enacted to read:
3. Residential Rental Property Registration Act
61-2-301
Effective
05/06/26
. Registration -- Penalty -- Notice to county
assessors.
(1)
An owner shall register with the division each single-family home that the owner rents
or manages in the state on or before the later of:
(a)
October 1, 2026; or
(b)
30 days after the day on which the owner rents the single-family home in the state.
(2)
The registration shall include:
(a)
the county and parcel identification number for each single-family home used as a
rental; and
(b)
the name and identifying information, including mailing address or electronic
address, of each corporation, pass-through entity taxpayer, or individual that receives
income or loss from each single-family home used as a rental.
(3)
(a)
An owner shall update a registration if the owner:
(i)
no longer owns a previously registered single-family home; or
(ii)
stops renting a previously registered single-family home for a period of more than
three months.
(b)
The owner shall update the registration within 30 days after the day on which:
(i)
the owner sells the single-family home, or an interest in the single-family home; or
(ii)
the three-month period of non-rental ends.
(4)
(a)
An owner is subject to a penalty of $100 for each month that the owner fails to
register each single-family home.
(b)
The division shall remit penalties to the Division of Finance for deposit into the
Housing Transition Redevelopment Fund created in Section
63N-22-102
.
(5)
The division shall provide the address of each single-family home that an owner
registers in accordance with this section to the county assessors for purposes of verifying
compliance with Subsection
59-2-103.5(5)
.
Section 12. Section
61-2-302
is enacted to read:
61-2-302
Effective
05/06/26
. Notice of tax obligation.
(1)
(a)
The division shall provide notice of the obligation to pay the excise tax imposed
under Section
59-32-202
:
(i)
through signage at any physical or electronic address at which an owner may
register in accordance with Section
61-2-301
; and
(ii)
by mail, or with the owner's consent, electronic mail, to any owner the division
identifies as renting 25 or more single-family homes in the state.
(b)
The division is not liable for mistakes in identifying an owner that rents 25 or more
single-family homes in the state.
(2)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
division may make rules to administer the notice requirements of this section.
Section 13. Section
63I-1-259
is amended to read:
63I-1-259
Effective
05/06/26
. Repeal dates: Title 59.
(1)
Subsection
59-1-403(4)(aa)
, regarding a requirement for the State Tax Commission to
inform the Department of Workforce Services whether an individual claimed a federal
earned income tax credit, is repealed July 1, 2029.
(2)
Section
59-2-1603
, Allocation of money in the Property Tax Valuation Fund -- Use of
funds, is repealed July 1, 2030.
(3)
Section
59-5-304
, Tax credit for mining exploration, is repealed July 1, 2037.
(4)
Section
59-7-618.1
, Tax credit related to alternative fuel heavy duty vehicles, is
repealed July 1, 2029.
(5)
Section
59-9-102.5
, Offset for occupational health and safety related donations, is
repealed December 31, 2030.
(6)
Section
59-10-1033.1
, Tax credit related to alternative fuel heavy duty vehicles, is
repealed July 1, 2029.
(7)
Subsection
59-28-103(5)
, regarding a tax rate on certain transactions that take place
within a county of the first class, is repealed July 1, 2047.
(8)
Title 59, Chapter 32, Part 2, Single-family Housing Rental Excise Tax, is repealed July
1, 2032.
Section 14. Section
63I-1-261
is amended to read:
63I-1-261
Effective
05/06/26
. Repeal dates: Title 61.
(1)
Title 61, Chapter 2, Part 3, Residential Rental Property Registration Act, is repealed
July 1, 2032.
(2)
Section
61-2c-104
, Residential Mortgage Regulatory Commission, is repealed July
1, 2031.
Section 15. Section
63I-1-263
is amended to read:
63I-1-263
Effective
05/06/26
. Repeal dates: Titles 63A to 63O.
(1)
Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July 1,
2028.
(2)
Title 63C, Chapter 18, Behavioral Health Crisis Response Committee, is repealed
December 31, 2026.
(3)
Title 63C, Chapter 25, State Finance Review Commission, is repealed July 1, 2027.
(4)
Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
(5)
Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
(6)
Title 63C, Chapter 31, State Employee Benefits Advisory Commission, is repealed July
1, 2028.
(7)
Section
63G-6a-805
, Purchase from community rehabilitation programs, is repealed
July 1, 2026.
(8)
Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1, 2028.
(9)
Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1, 2029.
(10)
Subsection
63J-1-602.2(16)
, related to the Communication Habits to reduce
Adolescent Threats (CHAT) Pilot Program, is repealed July 1, 2029.
(11)
Subsection
63J-1-602.2(26)
, regarding the Utah Seismic Safety Commission, is
repealed January 1, 2025.
(12)
Section
63L-11-204
, Canyon resource management plan, is repealed July 1, 2027.
(13)
Title 63L, Chapter 11, Part 4, Resource Development Coordinating Committee, is
repealed July 1, 2027.
(14)
Title 63M, Chapter 7, Part 7, Domestic Violence Offender Treatment Board, is
repealed July 1, 2027.
(15)
Section
63M-7-902
, Creation -- Membership -- Terms -- Vacancies -- Expenses, is
repealed July 1, 2029.
(16)
Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2026.
(17)
Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
(18)
Subsection
63N-2-511(1)(b)
, regarding the Board of Tourism Development, is
repealed July 1, 2030.
(19)
Section
63N-2-512
, Hotel Impact Mitigation Fund, is repealed July 1, 2028.
(20)
Title 63N, Chapter 3, Part 9, Strategic Innovation Grant Pilot Program, is repealed July
1, 2027.
(21)
Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant Program, is
repealed July 1, 2028.
(22)
Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed July
1, 2028.
(23)
Section
63N-4-804
, Rural Opportunity Advisory Committee, is repealed July 1, 2027.
(24)
Subsection
63N-4-805(5)(b)
, regarding the Rural Employment Expansion Program, is
repealed July 1, 2028.
(25)
Subsection
63N-7-101(1)
, regarding the Board of Tourism Development, is repealed
July 1, 2030.
(26)
Subsection
63N-7-102(3)(c)
, regarding a requirement for the Utah Office of Tourism
to receive approval from the Board of Tourism Development, is repealed July 1, 2030.
(27)
Title 63N, Chapter 7, Part 2, Board of Tourism Development, is repealed July 1, 2030.
(28)
Title 63N, Chapter 22, Housing Transition Redevelopment Grant Program, is repealed
July 1, 2032.
Section 16. Section
63N-22-101
is enacted to read:
22. Housing Transition Redevelopment Grant Program
63N-22-101
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"Attainable home" means a single-family home that costs the purchaser no more than
the amount a qualifying residential unit may be purchased for in accordance with
Section
63H-8-501
.
(2)
"Deed-restricted property" means an attainable home that is subject to a recorded
covenant running with the land that requires the property to be an owner-occupied
single-family home.
(3)
"Fund" means the Housing Transition Redevelopment Fund created in Section
63N-22-102
.
(4)
"Grant program" means the Housing Transition Redevelopment Grant Program created
in Section
63N-22-103
.
(5)
"Institutional investor" means a person that reports income or loss from the rental of at
least 25 single-family homes in the state on the federal or state income tax return.
(6)
"Municipality" means the same as that term is defined in Section
10-1-104
.
(7)
"Owner-occupied" means an owner uses as a primary residence for at least 10 months of
the calendar year.
(8)
"Project area" means the same as that term is defined in Section
17C-1-102
.
(9)
"Qualified transition zone" means:
(a)
a geographic area in which one or more institutional owners own, in whole or in part,
at least 25% of the single-family homes; or
(b)
a project area.
(10)
"Single-family home" means a detached residential structure, designed to be occupied
by an individual household.
Section 17. Section
63N-22-102
is enacted to read:
63N-22-102
Effective
05/06/26
. Housing Transition Redevelopment Fund.
(1)
There is created an expendable special revenue fund, known as the "Housing Transition
Redevelopment Fund."
(2)
The fund shall consist of:
(a)
tax revenue from the excise tax imposed by Section
59-32-202
; and
(b)
penalties the Division of Real Estate imposes and deposits in accordance with
Section
61-2-301
.
(3)
The office shall use money in the fund for the grant program.
Section 18. Section
63N-22-103
is enacted to read:
63N-22-103
Effective
05/06/26
. Housing Transition Redevelopment Grant
Program.
(1)
To facilitate a targeted and locally driven conversion of single-family rental housing
owned by institutional investors to owner-occupied attainable homes, there is
established the Housing Transition Redevelopment Grant Program to award grants to
municipalities for use in a qualified transition zone.
(2)
(a)
The office shall administer the grant program.
(b)
The office may use no more than 10% of funds within the grant program for
administration costs.
(3)
(a)
A municipality submitting an application for a grant to the office shall include:
(i)
the location of the qualified transition zone and evidence that the municipality
used to identify the area as suitable for transitioning to owner-occupied attainable
homes;
(ii)
the requested grant amount;
(iii)
a commitment, as evidenced by the municipality adopting a resolution:
(A)
to rezone or subdivide land to transition single-family homes from
institutional investor ownership to owner-occupied attainable homes within the
qualified transition zone;
(B)
to require, as conditions of approving development within the qualified
investment zone, that the developer sell the property as a deed-restricted
property and prohibit homeowner association fees; and
(C)
to provide matching funding at a minimum of 20% of the requested grant
amount;
(iv)
a detailed budget for use of a grant and matching funds;
(v)
if the municipality submits an application for an additional grant amount after an
initial grant, evidence of a decrease in the number of single-family homes owned
by an institutional investor within the qualified transition zone since the initial
grant; and
(vi)
other information the office determines necessary to evaluate the application.
(b)
When evaluating an application for a grant, the office shall consider:
(i)
the likelihood the municipality's proposal will accomplish the purpose described in
Subsection
(1)
;
(ii)
the cost of the proposal;
(iii)
the extent to which any matching funding sources or existing or planned
partnerships may benefit the proposal; and
(iv)
the viability and sustainability of the proposal.
(4)
(a)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the office shall make rules governing:
(i)
subject to Subsection
(4)(b)
, the uses for which a municipality may spend a grant
to accomplish the purpose described in Subsection
(1)
;
(ii)
the form and process for submitting an application for a grant to the office;
(iii)
the method and formula for determining a grant amount;
(iv)
the method for prioritizing grant applications;
(v)
the monitoring of a grant recipient's compliance with conditions of the grant
program; and
(vi)
reporting requirements for a grant recipient.
(b)
A municipality that receives a grant may not use grant funds to:
(i)
facilitate ownership of a single-family home from one institutional investor to
another;
(ii)
subsidize development of market-rate rentals if the development:
(A)
does not include a requirement for rental units that are affordable housing, as
that term is defined in Section
35A-8-501
; or
(B)
facilitates institutional investor ownership of single-family homes;
(iii)
assist institutional investors with payment of taxes due under Title 59, Chapter
32, Part 2, Single-family Housing Rental Excise Tax; or
(iv)
provide funding to a development that is not zoned or approved for development
in accordance with Subsection
(3)(a)(iii)
.
(5)
A municipality that receives a grant shall repay the amount of the grant if the
municipality:
(a)
waives, releases, or modifies a deed restriction on deed-restricted property; or
(b)
misuses grant funds.
(6)
On or before January 1, April 1, July 1, and October 1 of each year, the office shall post
on the office's website a report that includes:
(a)
the location of each qualified transition zone for which a municipality receives a
grant;
(b)
residence ownership data within a qualified transition zone for which a municipality
receives a grant;
(c)
data on attainable homes created within the qualified transition zone, including:
(i)
the number of deed-restricted properties and the number of single-family homes
that are rentals; and
(ii)
the affordability of single-family homes;
(d)
the number of grant applications, including:
(i)
the ratio of grant approvals and denials; and
(ii)
for the applications denied, the reasons for the denial;
(e)
the dollar amount the office grants to each grant recipient;
(f)
administrative costs as a percentage of total funds within the grant program; and
(g)
emerging trends or unintended market effects from the award of grants.
(7)
The office shall include in the annual report to the Legislature required by Section
63N-1a-306
:
(a)
a summary of the information posted on the office's website in accordance with
Subsection
(6)
;
(b)
an analysis of the grant program's effectiveness in accomplishing the purpose
described in Subsection
(1)
;
(c)
the geographic distribution of grant recipients; and
(d)
any barrier to implementation or other recommendations for adjustments to the grant
program.
Section 19.
Repealer.
Title.
Section 20.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect May 6, 2026.
(2)
The actions affecting Section 59-2-919.1 (Effective 07/01/26) take effect on July 1,
2026.
2-19-26 8:40 AM