HJR 7

01-06 15:52  H.J.R. 7
1Proposal to Amend Utah Constitution - Property Tax Modifications
  2026 GENERAL SESSION
  STATE OF UTAH
  Chief Sponsor: Jill Koford
  Senate Sponsor:
2
3   LONG TITLE
4   General Description:
5This joint resolution of the Utah Legislature proposes to amend the Utah Constitution
6   relating to the Legislature's authority to exempt a portion of the fair market value of residential
7   property from property tax.
8   Highlighted Provisions:
9This resolution proposes to amend the Utah Constitution to:
10▸ authorize the Legislature to exempt up to 60% of the fair market value of residential
11   property from property tax.
12   Other Special Clauses:
13This resolution directs the lieutenant governor to submit this proposal to voters.
14This resolution provides a contingent effective date of January 1, 2027 for this proposal.
15   Utah Constitution Sections Affected:
16   AMENDS:
17Article XIII, Section 3
18
19   Be it resolved by the Legislature of the state of Utah, two-thirds of all members elected to each
20   of the two houses voting in favor thereof:
21Section 1. It is proposed to amend Utah Constitution, Article XIII, Section 3, to read:
22Article XIII, Section 3 . [Property tax exemptions.]
23   (1) The following are exempt from property tax:
  H.J.R. 7
24(a) property owned by the State;
25(b) property owned by a public library;
26(c) property owned by a school district;
27(d) property owned by a political subdivision of the State, other than a school district,
28and located within the political subdivision;
29(e) property owned by a political subdivision of the State, other than a school district,
30and located outside the political subdivision unless the Legislature by statute
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31authorizes the property tax on that property;
32      (f) property owned by a nonprofit entity used exclusively for religious, charitable, or
33educational purposes;
34      (g) places of burial not held or used for private or corporate benefit;
35      (h) farm equipment and farm machinery as defined by statute;
36      (i) water rights, reservoirs, pumping plants, ditches, canals, pipes, flumes, power plants,
37and transmission lines to the extent owned and used by an individual or corporation
38to irrigate land that is:
39(i) within the State; and
40(ii) owned by the individual or corporation, or by an individual member of the
41corporation; and
42      (j)(i) if owned by a nonprofit entity and used within the State to irrigate land, provide
43domestic water, as defined by statute, or provide water to a public water supplier:
44(A) water rights; and
45(B) reservoirs, pumping plants, ditches, canals, pipes, flumes, and, as defined by
46statute, other water infrastructure;
47(ii) land occupied by a reservoir, ditch, canal, or pipe that is exempt under Subsection
48(1)(j)(i)(B) if the land is owned by the nonprofit entity that owns the reservoir,
49ditch, canal, or pipe; and
50(iii) land immediately adjacent to a reservoir, ditch, canal, or pipe that is exempt
51under Subsection (1)(j)(i)(B) if the land is:
52(A) owned by the nonprofit entity that owns the adjacent reservoir, ditch, canal, or
53pipe; and
54(B) reasonably necessary for the maintenance or for otherwise supporting the
55operation of the reservoir, ditch, canal, or pipe.
56  (2)(a) The Legislature may by statute exempt the following from property tax:
57(i) tangible personal property constituting inventory present in the State on January 1
58and held for sale in the ordinary course of business;
59(ii) tangible personal property present in the State on January 1 and held for sale or
60processing and shipped to a final destination outside the State within 12 months;
61(iii) subject to Subsection (2)(b), property to the extent used to generate and deliver
62electrical power for pumping water to irrigate lands in the State;
63(iv) up to [45] 60% of the fair market value of residential property, as defined by
64statute;
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65(v) household furnishings, furniture, and equipment used exclusively by the owner of
66that property in maintaining the owner's home; and
67(vi) tangible personal property that, if subject to property tax, would generate an
68inconsequential amount of revenue.
69(b) The exemption under Subsection (2)(a)(iii) shall accrue to the benefit of the users of
70pumped water as provided by statute.
71   (3) The following may be exempted from property tax as provided by statute:
72(a) property owned by a disabled person who, during military training or a military
73conflict, was disabled in the line of duty in the military service of the United States or
74the State;
75(b) property owned by the unmarried surviving spouse or the minor orphan of a person
76who:
77(i) is described in Subsection (3)(a); or
78(ii) during military training or a military conflict, was killed in action or died in the
79line of duty in the military service of the United States or the State; and
80(c) real property owned by a person in the military or the person's spouse, or both, and
81used as the person's primary residence, if the person serves under an order to federal
82active duty out of state for at least 200 days in a continuous 365-day period.
83   (4) The Legislature may by statute provide for the remission or abatement of the taxes of
84the poor.
85Section 2. Submittal to voters.
86   The lieutenant governor is directed to submit this proposed amendment to the voters of
87   the state at the next regular general election in the manner provided by law.
88Section 3. Contingent effective date.
89   If the amendment proposed by this joint resolution is approved by a majority of those
90   voting on it at the next regular general election, the amendment shall take effect on January 1,
91   2027.
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