HB 161

01-06 16:09  H.B. 161
1Property Tax Modifications
  2026 GENERAL SESSION
  STATE OF UTAH
  Chief Sponsor: Jill Koford
  Senate Sponsor:
2
3   LONG TITLE
4   General Description:
5This bill modifies the property tax exemption for primary residential property.
6   Highlighted Provisions:
7This bill:
8▸ contingent on passage of a proposed constitutional amendment, increases the percentage
9   of the fair market value of primarily residential property that is exempt from property
10   tax.
11   Money Appropriated in this Bill:
12None
13   Other Special Clauses:
14This bill provides a special effective date.
15   Utah Code Sections Affected:
16   AMENDS:
1759-2-103 (Contingently Effective 1/1/27), as last amended by Laws of Utah 2025, Chapter 234
18
19   Be it enacted by the Legislature of the state of Utah:
20Section 1. Section 59-2-103 is amended to read:
2159-2-103 (Contingently Effective 1/1/27). Rate of assessment of property -- Residential
   property.
22   (1) As used in this section:
  H.B. 161
23(a)(i) "Household" means the association of individuals who live in the same
24dwelling, sharing the dwelling's furnishings, facilities, accommodations, and
25expenses.
26(ii) "Household" includes married individuals, who are not legally separated, who
27have established domiciles at separate locations within the state.
28(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
29commission may make rules defining the term "domicile."
 H.B. 161  01-06 16:09
30  (2) All tangible taxable property located within the state shall be assessed and taxed at a
31      uniform and equal rate on the basis of its fair market value, as valued on January 1,
32      unless otherwise provided by law.
33  (3) Subject to Subsections (4) through (6) and Section 59-2-103.5, for a calendar year, the
34      fair market value of residential property located within the state is allowed a residential
35      exemption equal to a [45%] 60% reduction in the value of the property.
36  (4) Part-year residential property located within the state is allowed the residential
37      exemption described in Subsection (3) if the part-year residential property is used as
38      residential property for 183 or more consecutive calendar days during the calendar year
39      for which the owner seeks to obtain the residential exemption.
40  (5) No more than one acre of land per residential unit may qualify for the residential
41      exemption described in Subsection (3).
42  (6)(a) Except as provided in Subsections (6)(b)(ii) and (iii), a residential exemption
43      described in Subsection (3) is limited to one primary residence per household.
44      (b) An owner of multiple primary residences located within the state is allowed a
45residential exemption under Subsection (3) for:
46(i) subject to Subsection (6)(a), the primary residence of the owner;
47(ii) each residential property that is the primary residence of a tenant; and
48(iii) subject to Subsection 59-2-103.5(4), each residential property described in
49Subsection 59-2-102(35)(b)(ii).
50Section 2. Effective Date.
51  This bill takes effect on January 1, 2027, if the amendment to the Utah Constitution
52  proposed by H.J.R. 7, Proposal to Amend Utah Constitution - Property Tax Modifications,
53  2026 General Session, passes the Legislature and is approved by a majority of those voting on
54  it at the next regular general election.
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