SB 238

Enrolled Copy  S.B. 238
1Property Tax Adjustments
                                      2026 GENERAL SESSION
                                             STATE OF UTAH
                                   Chief Sponsor: Chris H. Wilson
                                     House Sponsor: Steve Eliason
2
3  LONG TITLE
4  General Description:
5      This bill modifies property tax provisions.
6  Highlighted Provisions:
7      This bill:
8      ▸ requires residential property owners to apply to the county to receive a residential
9  exemption if the property was ineligible for the residential exemption in the prior year,
10  an ownership interest in the property changes, or the county has reason to believe the
11  property no longer qualifies for the residential exemption;
12      ▸ clarifies burden of proof requirements in appeals involving property assessed by the State
13  Tax Commission;
14      ▸ modifies the content and publication of the advertisement required for taxing entities to
15  impose a judgment levy;
16      ▸ clarifies the requirements for taxing entities to impose judgment levies and increase
17  property taxes through truth in taxation;
18      ▸ modifies the time frame in which the State Tax Commission is required to certify a taxing
19  entity's compliance with truth in taxation requirements; and
20      ▸ makes technical and conforming changes.
21  Money Appropriated in this Bill:
22      None
23  Other Special Clauses:
24      This bill provides a special effective date.
25      This bill provides retrospective operation.
26  Utah Code Sections Affected:
27  AMENDS:
S.B. 238  Enrolled Copy
2859-2-103.5 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 234
2959-2-109 (Effective 01/01/27), as repealed and reenacted by Laws of Utah 2024, Chapter
30263
3159-2-918.5 (Effective 05/06/26) (Applies beginning 01/01/26), as last amended by Laws
32of Utah 2024, Chapter 246
3359-2-919 (Effective 05/06/26) (Applies beginning 01/01/26), as last amended by Laws of
34Utah 2025, First Special Session, Chapter 17
3559-2-1330 (Effective 05/06/26) (Applies beginning 01/01/26), as last amended by Laws
36of Utah 2025, Chapter 172
37
38   Be it enacted by the Legislature of the state of Utah:
39Section 1. Section 59-2-103.5 is amended to read:
4059-2-103.5 (Effective 01/01/27). Procedures to obtain an exemption for
41   residential property -- Procedure if property owner or property no longer qualifies to
42   receive a residential exemption.
43   (1) Subject to Subsections (4), (5), and (6), [and (11), ]for residential property other than
44part-year residential property, [a county legislative body may adopt an ordinance that
45requires ]an owner [to] shall file an application with the county board of equalization
46before the county applies a residential exemption authorized under Section 59-2-103 to
47the value of the residential property if:
48(a) the residential property was ineligible for the residential exemption during the
49calendar year immediately preceding the calendar year for which the owner is
50seeking to have the residential exemption applied to the value of the residential
51property;
52(b) an ownership interest in the residential property changes; or
53(c) the county board of equalization determines that there is reason to believe that the
54residential property no longer qualifies for the residential exemption.
55   (2)(a) The application described in Subsection (1):
56(i) shall be on a form the commission provides by rule and makes available to the
57counties;
58(ii) shall be signed by the owner of the residential property; and
59(iii) may not request the sales price of the residential property.
60(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
61commission may make rules providing the contents of the form described in
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62Subsection (2)(a).
63      (c) For purposes of the application described in Subsection (1), a county may not request
64information from an owner of a residential property beyond the information in the
65form provided by the commission under this Subsection (2).
66  (3)(a) [Regardless of whether a county legislative body adopts an ordinance described in
67      Subsection (1), before] Before a county may apply a residential exemption to the
68      value of part-year residential property, an owner of the property shall:
69(i) subject to Subsection (6), file the application described in Subsection (2)(a) with
70the county board of equalization; and
71(ii) include as part of the application described in Subsection (2)(a) a statement that
72certifies:
73(A) the date the part-year residential property became residential property;
74(B) that the part-year residential property will be used as residential property for
75183 or more consecutive calendar days during the calendar year for which the
76owner seeks to obtain the residential exemption; and
77(C) that the owner, or a member of the owner's household, may not claim a
78residential exemption for any property for the calendar year for which the
79owner seeks to obtain the residential exemption, other than the part-year
80residential property, or as allowed under Section 59-2-103 with respect to the
81primary residence or household furnishings, furniture, and equipment of the
82owner's tenant.
83      (b) If an owner files an application under this Subsection (3) on or after May 1 of the
84calendar year for which the owner seeks to obtain the residential exemption, the
85county board of equalization may require the owner to pay an application fee not to
86exceed $50.
87  (4) Before a county allows residential property described in Subsection 59-2-102(35)(b)(ii)
88      a residential exemption authorized under Section 59-2-103, an owner of the residential
89      property shall file with the county assessor a written declaration that:
90      (a) states under penalty of perjury that, to the best of each owner's knowledge, upon
91completion of construction or occupancy of the residential property, the residential
92property will be used for residential purposes as a primary residence;
93      (b) is signed by each owner of the residential property; and
94      (c) is on a form approved by the commission.
95  (5)(a) Before a county allows residential property described in Subsection 59-2-103(6)(b)
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96a residential exemption authorized under Section 59-2-103, an owner of the
97residential property shall file with the county assessor a written declaration that:
98(i) states under penalty of perjury that, to the best of each owner's knowledge, the
99residential property will be used for residential purposes as a primary residence of
100a tenant;
101(ii) is signed by each owner of the residential property; and
102(iii) is on a form approved by the commission.
103(b)(i)(A) In addition to the declaration, a county assessor may request from an
104owner a current lease agreement signed by the tenant.
105(B) If the lease agreement is insufficient for a county assessor to make a
106determination about eligibility for a residential exemption, a county assessor
107may request a copy of the real estate insurance policy for the property.
108(C) If the real estate insurance policy is insufficient for a county assessor to make
109a determination about eligibility for a residential exemption, a county assessor
110may request a copy of a filing from the most recent federal tax return showing
111that the owner had profit or loss from the residential property as a rental.
112(ii) A county assessor may not request information from an owner's tenant.
113   (6)(a) Except as provided in Subsection (6)(b), the county board of equalization may not
114accept from a property owner an application to receive a residential exemption
115authorized under Section 59-2-103 for the property owner's primary residence that is
116filed after the later of:
117(i) September 15 of the calendar year for which the property owner seeks to receive
118the residential exemption; or
119(ii) the last day of a 45-day period beginning on the day on which the county auditor
120provides the notice under Section 59-2-919.1.
121(b)(i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
122the commission may make rules providing for circumstances under which the
123county board of equalization is required to accept a property owner's application
124for a residential exemption authorized under Section 59-2-103 that is filed after
125the time period described in Subsection (6)(a).
126(ii) The commission shall report to the Revenue and Taxation Interim Committee on
127any rules promulgated under this Subsection (6)(b).
128   (7) Except as provided in Subsection (8), if a property owner no longer qualifies to receive
129a residential exemption authorized under Section 59-2-103 for the property owner's
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130      primary residence, the property owner shall:
131      (a) file a written statement with the county board of equalization of the county in which
132the property is located:
133(i) on a form provided by the county board of equalization; and
134(ii) notifying the county board of equalization that the property owner no longer
135qualifies to receive a residential exemption authorized under Section 59-2-103 for
136the property owner's primary residence; and
137      (b) declare on the property owner's individual income tax return under Chapter 10,
138Individual Income Tax Act, for the taxable year for which the property owner no
139longer qualifies to receive a residential exemption authorized under Section 59-2-103
140for the property owner's primary residence, that the property owner no longer
141qualifies to receive a residential exemption authorized under Section 59-2-103 for the
142property owner's primary residence.
143  (8) A property owner is not required to file a written statement or make the declaration
144      described in Subsection (7) if the property owner:
145      (a) changes primary residences;
146      (b) qualified to receive a residential exemption authorized under Section 59-2-103 for
147the residence that was the property owner's former primary residence; and
148      (c) qualifies to receive a residential exemption authorized under Section 59-2-103 for the
149residence that is the property owner's current primary residence.
150  (9) Subsections (2) through (8) do not apply to qualifying exempt primary residential rental
151      personal property.
152  (10)(a) [Subject to Subsection (11), for] For the first calendar year in which a property
153      owner qualifies to receive a residential exemption under Section 59-2-103, a county
154      assessor may require the property owner to file a signed statement described in
155      Section 59-2-306.
156      (b) [Subject to Subsection (11) and notwithstanding] Notwithstanding Section 59-2-306,
157for a calendar year after the calendar year described in Subsection (10)(a) in which a
158property owner qualifies for an exemption authorized under Section 59-2-1115 for
159qualifying exempt primary residential rental personal property, a signed statement
160described in Section 59-2-306 with respect to the qualifying exempt primary
161residential rental personal property may only require the property owner to certify,
162under penalty of perjury, that the property owner qualifies for the exemption
163authorized under Section 59-2-1115.
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164   [(11)(a) After an ownership interest in residential property changes, the county assessor
165shall:]
166[(i) notify the owner of the residential property that the owner is required to submit a
167written declaration described in Subsection (11)(d) within 90 days after the day on
168which the county assessor mails the notice under this Subsection (11)(a); and]
169[(ii) provide the owner of the residential property with the form described in
170Subsection (11)(e) to make the written declaration described in Subsection (11)(d).]
171[(b) A county assessor is not required to provide a notice to an owner of residential
172property under Subsection (11)(a) if the situs address of the residential property is the
173same as any one of the following:]
174[(i) the mailing address of the residential property owner or the tenant of the
175residential property;]
176[(ii) the address listed on the:]
177[(A) residential property owner's driver license; or]
178[(B) tenant of the residential property's driver license; or]
179[(iii) the address listed on the:]
180[(A) residential property owner's voter registration; or]
181[(B) tenant of the residential property's voter registration.]
182[(c) A county assessor is not required to provide a notice to an owner of residential
183property under Subsection (11)(a) if:]
184[(i) the owner is using a post office box or rural route box located in the county where
185the residential property is located; and]
186[(ii) the residential property is located in a county of the fourth, fifth, or sixth class.]
187[(d) An owner of residential property that receives a notice described in Subsection
188(11)(a) shall submit a written declaration to the county assessor under penalty of
189perjury certifying the information contained in the form described in Subsection
190(11)(e).]
191[(e) The written declaration required by Subsection (11)(d) shall be:]
192[(i) signed by the owner of the residential property; and]
193   [(ii) in substantially the following form:
194"Residential Property Declaration
195This form must be submitted to the County Assessor's office where your new
196residential property is located within 90 days of receipt. Failure to do so will result in the
197county assessor taking action that could result in the withdrawal of the primary residential
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198      exemption from your residential property.
199Residential Property Owner Information
200Name(s):__________________________________________________
201Home Phone:_______________________________________________
202Work Phone:_______________________________________________
203Mailing Address:____________________________________________
204Residential Property Information
205Physical Address:___________________________________________
206Certification
2071. Is this property used as a primary residential property or part-year residential
208      property for you or another person?
209"Part-year residential property" means owned property that is not residential property
210      on January 1 of a calendar year but becomes residential property after January 1 of the
211      calendar year.
212Yes  No
2132. Will this primary residential property or part-year residential property be occupied
214      for 183 or more consecutive calendar days by the owner or another person?
215A part-year residential property occupied for 183 or more consecutive calendar days in
216      a calendar year by the owner(s) or a tenant is eligible for the exemption.
217Yes  No
218If a property owner or a property owner's spouse claims a residential exemption under
219      Utah Code Ann. §59-2-103 for property in this state that is the primary residence of the property
220      owner or the property owner's spouse, that claim of a residential exemption shall be considered
221      in determining whether the property owner and the property owner's spouse have domicile in
222      Utah for income tax purposes.
223Signature
224Under penalties of perjury, I declare to the best of my knowledge and belief, this
225      declaration and accompanying pages are true, correct, and complete.
226__________________(Owner signature) _____________________Date (mm/dd/yyyy)
227__________________(Owner printed name)]
228      [(f) For purposes of a written declaration described in this Subsection (11), a county may
229not request information from a property owner beyond the information described in
230the form provided in Subsection (11)(e).]
231      [(g)(i) If, after receiving a written declaration filed under Subsection (11)(d), the
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232county determines that the property has been incorrectly qualified or disqualified
233to receive a residential exemption, the county shall:]
234[(A) redetermine the property's qualification to receive a residential exemption;
235and]
236[(B) notify the claimant of the redetermination and the county's reason for the
237redetermination.]
238[(ii) The redetermination provided in Subsection (11)(g)(i)(A) is final unless:]
239[(A) except as provided in Subsection (11)(g)(iii), the property owner appeals the
240redetermination to the board of equalization in accordance with Subsection
24159-2-1004(2); or]
242[(B) the county determines that the property is eligible to receive a primary
243residential exemption as part-year residential property.]
244[(iii) The board of equalization may not accept an appeal that is filed after the later of:]
245[(A) September 15 of the current calendar year; or]
246[(B) the last day of the 45-day period beginning on the day on which the county
247auditor provides the notice under Section 59-2-919.1.]
248[(h)(i) If a residential property owner fails to file a written declaration required by
249Subsection (11)(d), the county assessor shall mail to the owner of the residential
250property a notice that:]
251[(A) the property owner failed to file a written declaration as required by
252Subsection (11)(d); and]
253[(B) the property owner will no longer qualify to receive the residential exemption
254authorized under Section 59-2-103 for the property that is the subject of the
255written declaration if the property owner does not file the written declaration
256required by Subsection (11)(d) within 30 days after the day on which the
257county assessor mails the notice under this Subsection (11)(h)(i).]
258[(ii) If a property owner fails to file a written declaration required by Subsection
259(11)(d) after receiving the notice described in Subsection (11)(h)(i), the property
260owner no longer qualifies to receive the residential exemption authorized under
261Section 59-2-103 in the calendar year for the property that is the subject of the
262written declaration unless:]
263[(A) except as provided in Subsection (11)(h)(iii), the property owner appeals the
264redetermination to the board of equalization in accordance with Subsection
26559-2-1004(2); or]
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266[(B) the county determines that the property is eligible to receive a primary
267residential exemption as part-year residential property.]
268[(iii) The board of equalization may not accept an appeal that is filed after the later of:]
269[(A) September 15 of the current calendar year; or]
270[(B) the last day of the 45-day period beginning on the day on which the county
271auditor provides the notice under Section 59-2-919.1.]
272[(iv) A property owner that is disqualified to receive the residential exemption under
273Subsection (11)(h)(ii) may file an application described in Subsection (1) to
274determine whether the owner is eligible to receive the residential exemption.]
275      [(i) The requirements of this Subsection (11) do not apply to a county assessor in a
276county that adopts and enforces an ordinance described in Subsection (1).]
277Section 2. Section 59-2-109 is amended to read:
27859-2-109 (Effective 01/01/27). Burden of proof.
279  (1)(a) For an appeal to the commission involving the valuation or equalization of [real ]
280      property assessed under Part 2, Assessment of Property, the party carrying the burden
281      of proof shall demonstrate:
282[(a)] (i) substantial error in the original assessed value; and
283[(b)] (ii) a sound evidentiary basis to support the value the party requests.
284      (b) The party carrying the burden of proof does not have to show substantial error as
285required by Subsection (1)(a)(i) if the party is requesting the original assessed value
286in an appeal to the commission.
287  (2)(a) For an appeal to the county board of equalization or the commission involving the
288      valuation or equalization of real property assessed under Part 3, County Assessment,
289      the party carrying the burden of proof shall demonstrate:
290(i) except as provided in Subsection (2)(b), substantial error in:
291(A) the original assessed value in an appeal to the county board of equalization; or
292(B) the value set by the county board of equalization in an appeal to the
293commission; and
294(ii) a sound evidentiary basis to support the value the party requests.
295      (b) The party carrying the burden of proof does not have to show substantial error as
296required by Subsection (2)(a)(i) if the party is requesting:
297(i) the original assessed value in an appeal to the county board of equalization; or
298(ii) the value set by the county board of equalization in an appeal to the commission.
299  (3) For property assessed under Part 2, Assessment of Property, the commission has the
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300burden of proof, if the commission is a party to the appeal that asserts that the fair
301market value of the assessed property is greater than the original assessed value for that
302calendar year.
303   (4) For property assessed under Part 3, County Assessment, the following shall carry the
304burden of proof before a county board of equalization or the commission:
305(a) the county assessor or the county board of equalization that is a party to the appeal
306has the burden of proof to support the value the county assessor or the county board
307of equalization requests; and
308(b) the taxpayer that is a party to the appeal has the burden of proof to support the value
309the taxpayer requests.
310   (5) A preponderance of the evidence suffices to sustain the burden for all parties.
311Section 3. Section 59-2-918.5 is amended to read:
31259-2-918.5 (Effective 05/06/26) (Applies beginning 01/01/26). Hearings on
313   judgment levies -- Advertisement.
314   (1) A taxing entity may not impose a judgment levy unless [it] the taxing entity first
315advertises [its] the taxing entity's intention to do so and holds a public hearing in
316accordance with the requirements of this section.
317   (2)(a) The advertisement required by this section may be combined with the
318advertisement described in Section 59-2-919.
319(b) The advertisement required by this section shall be [at least 1/8 of a page in size and
320shall meet the type, placement, and frequency requirements established under Section
32159-2-919.] published:
322(i) electronically in accordance with Section 45-1-101;
323(ii) as a class A notice under Section 63G-30-102; and
324(iii) for at least 14 days before the day on which the taxing entity conducts the public
325hearing required under this section.
326(c)(i) For taxing entities operating under a July 1 through June 30 fiscal year, the
327public hearing required under this section shall be held 10 or more days after
328notice is provided to property owners pursuant to Section 59-2-919.1.
329(ii) For taxing entities operating under a January 1 through December 31 fiscal year:
330(A) for an eligible judgment issued on or after March 1 but on or before
331September 15, the public hearing required under this section shall be held at
332the same time as the hearing at which the annual budget is adopted; or
333(B) for an eligible judgment issued on or after September 16 but on or before the
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334last day of February, the public hearing required under this section shall be
335held 10 or more days after notice is provided to property owners pursuant to
336Section 59-2-919.1.
337  (3) The advertisement required by this section shall specify:
338      (a) the date, time, and location of the public hearing at which the judgment levy will be
339considered[ and shall set forth the total amount of the eligible judgment and ] ;
340      (b) the amount of the judgment levy;
341      (c) the term of the judgment levy; and
342      (d) the tax impact on an average residential and business property located within the
343taxing entity that results from the judgment levy.
344  (4) If a final decision regarding the judgment levy is not made at the public hearing
345      required under this section, the taxing entity shall announce at the public hearing the
346      scheduled time and place for consideration and adoption of the judgment levy.
347  (5)(a) The [date, time, and place of a public hearing required under this section]
348      information described in Subsections (3)(a) through (c) regarding a judgment levy
349      shall be included on the notice provided to property owners pursuant to Section
350      59-2-919.1.
351      (b) The requirements of Subsections 59-2-919(8)(b)(i) and (c) through (f) apply to a
352public hearing required under this section.
353Section 4. Section 59-2-919 is amended to read:
35459-2-919 (Effective 05/06/26) (Applies beginning 01/01/26). Notice and public
355  hearing requirements for certain tax increases -- Exceptions -- Audit.
356  (1) As used in this section:
357      (a) "Additional ad valorem tax revenue" means ad valorem property tax revenue
358generated by the portion of the tax rate that exceeds the taxing entity's certified tax
359rate.
360      (b) "Ad valorem tax revenue" means ad valorem property tax revenue not including
361revenue from:
362(i) eligible new growth; or
363(ii) personal property that is:
364(A) assessed by a county assessor in accordance with Part 3, County Assessment;
365and
366(B) semiconductor manufacturing equipment.
367      (c) "Base year" means a taxing entity's fiscal year that immediately precedes the fiscal
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368year in which the taxing entity first adopted a budget below last year's property tax
369budgeted revenue.
370(d) "Base year budgeted revenue" means the property tax budgeted revenue, excluding
371eligible new growth, for the base year.
372(e) "Calendar year taxing entity" means a taxing entity that operates under a fiscal year
373that begins on January 1 and ends on December 31.
374(f) "County executive calendar year taxing entity" means a calendar year taxing entity
375that operates under the county executive-council form of government described in
376Section 17-62-203.
377(g) "Current calendar year" means the calendar year immediately preceding the calendar
378year for which a calendar year taxing entity seeks to levy a tax rate that exceeds the
379calendar year taxing entity's certified tax rate.
380(h) "Eligible new growth" means the same as that term is defined in Section 59-2-924.
381(i) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year that
382begins on July 1 and ends on June 30.
383(j) "Meeting" means the same as that term is defined in Section 52-4-103.
384(k) "Last year's property tax budgeted revenue" does not include:
385(i) revenue received by a taxing entity from a debt service levy voted on by the public;
386(ii) revenue generated by the combined basic rate as defined in Section 53F-2-301; or
387(iii) revenue generated by the charter school levy described in Section 53F-2-703.
388(l) "Truth-in-taxation exemption period" means a six-year period that begins with the
389base year.
390   (2) Except as provided in Subsection (11), a taxing entity may not levy a tax rate that
391exceeds the taxing entity's certified tax rate unless the taxing entity meets:
392(a) the requirements of this section that apply to the taxing entity; and
393(b) all other requirements as may be required by law.
394   (3)(a) Subject to Subsection (3)(b) and except as provided in Subsection (5), a calendar
395year taxing entity may levy a tax rate that exceeds the calendar year taxing entity's
396certified tax rate if the calendar year taxing entity:
397(i) 14 or more days before the date of the regular general election or municipal
398general election held in the current calendar year, states at a public meeting:
399(A) that the calendar year taxing entity intends to levy a tax rate that exceeds the
400calendar year taxing entity's certified tax rate;
401(B) the dollar amount of and purpose for additional ad valorem tax revenue that
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402would be generated by the proposed increase in the certified tax rate; and
403(C) the approximate percentage increase in ad valorem tax revenue for the taxing
404entity based on the proposed increase described in Subsection (3)(a)(i)(B);
405(ii) provides notice for the public meeting described in Subsection (3)(a)(i) in
406accordance with Title 52, Chapter 4, Open and Public Meetings Act, including
407providing a separate item on the meeting agenda that notifies the public that the
408calendar year taxing entity intends to make the statement described in Subsection
409(3)(a)(i);
410(iii) meets the advertisement requirements of Subsections (6) and (7) before the
411calendar year taxing entity conducts the public hearing required by Subsection
412(3)(a)(v);
413(iv) provides notice by mail:
414(A) seven or more days before the regular general election or municipal general
415election held in the current calendar year; and
416(B) as provided in Subsection (3)(c); and
417(v) conducts a public hearing that is held[:]
418[(A)]   in accordance with Subsections (8) and (9)[; and] .
419[(B) in conjunction with the public hearing required by Section 17-63-304 or
42017B-1-610.]
421      (b)(i) For a county executive calendar year taxing entity, the statement described in
422Subsection (3)(a)(i) shall be made by the:
423(A) county council;
424(B) county executive; or
425(C) both the county council and county executive.
426(ii) If the county council makes the statement described in Subsection (3)(a)(i) or the
427county council states a dollar amount of additional ad valorem tax revenue that is
428greater than the amount of additional ad valorem tax revenue previously stated by
429the county executive in accordance with Subsection (3)(a)(i), the county executive
430calendar year taxing entity shall:
431(A) make the statement described in Subsection (3)(a)(i) 14 or more days before
432the county executive calendar year taxing entity conducts the public hearing
433under Subsection (3)(a)(v); and
434(B) provide the notice required by Subsection (3)(a)(iv) 14 or more days before
435the county executive calendar year taxing entity conducts the public hearing
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436required by Subsection (3)(a)(v).
437(c) The notice described in Subsection (3)(a)(iv):
438(i) shall be mailed to each owner of property:
439(A) within the calendar year taxing entity; and
440(B) listed on the assessment roll;
441(ii) shall be printed on a separate form that:
442(A) is developed by the commission;
443(B) states at the top of the form, in bold upper-case type no smaller than 18 point
444"NOTICE OF PROPOSED TAX INCREASE"; and
445(C) may be mailed with the notice required by Section 59-2-1317;
446(iii) shall contain for each property described in Subsection (3)(c)(i):
447(A) the value of the property for the current calendar year;
448(B) the tax on the property for the current calendar year; and
449(C) subject to Subsection (3)(d), for the calendar year for which the calendar year
450taxing entity seeks to levy a tax rate that exceeds the calendar year taxing
451entity's certified tax rate, the estimated tax on the property;
452   (iv) shall contain the following statement:
453"[Insert name of taxing entity] is proposing a tax increase for [insert applicable calendar
454year]. This notice contains estimates of the tax on your property and the proposed tax increase
455on your property as a result of this tax increase. These estimates are calculated on the basis of
456[insert previous applicable calendar year] data. The actual tax on your property and proposed
457tax increase on your property may vary from this estimate.";
458(v) shall state the dollar amount of additional ad valorem tax revenue that would be
459generated each year by the proposed increase in the certified tax rate;
460(vi) shall include a brief statement of the primary purpose for the proposed tax
461increase, including the taxing entity's intended use of additional ad valorem tax
462revenue described in Subsection (3)(c)(v);
463(vii) shall state the date, time, and place of the public hearing described in Subsection
464(3)(a)(v);
465(viii) shall state the [Internet] internet address for the taxing entity's public website;
466(ix) may contain other information approved by the commission; and
467(x) if sent in calendar year 2024, 2025, or 2026, shall contain:
468(A) notice that the taxpayer may request electronic notice as described in
469Subsection 17-71-302(1)(m); and
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470(B) instructions describing how to elect to receive a notice as described in
471Subsection 17-71-302(1)(m).
472      (d) For purposes of Subsection (3)(c)(iii)(C), a calendar year taxing entity shall calculate
473the estimated tax on property on the basis of:
474(i) data for the current calendar year; and
475(ii) the amount of additional ad valorem tax revenue stated in accordance with this
476section.
477  (4) Except as provided in Subsection (5), a fiscal year taxing entity may levy a tax rate that
478      exceeds the fiscal year taxing entity's certified tax rate if the fiscal year taxing entity:
479      (a) provides notice by meeting the advertisement requirements of Subsections (6) and (7)
480before the fiscal year taxing entity conducts the public meeting at which the fiscal
481year taxing entity's annual budget is adopted; and
482      (b) conducts a public hearing in accordance with Subsections (8) and (9) before the
483fiscal year taxing entity's annual budget is adopted.
484  (5)(a) A taxing entity is not required to meet the notice or public hearing requirements of
485      Subsection (3) or (4) if the taxing entity is expressly exempted by law from
486      complying with the requirements of this section.
487      (b) A taxing entity is not required to meet the notice requirements of Subsection (3) or
488(4) if:
489(i) Section 53F-8-301 allows the taxing entity to levy a tax rate that exceeds that
490certified tax rate without having to comply with the notice provisions of this
491section; or
492(ii) the taxing entity:
493(A) budgeted less than $20,000 in ad valorem tax revenue for the previous fiscal
494year; and
495(B) sets a budget during the current fiscal year of less than $20,000 of ad valorem
496tax revenue.
497  (6)(a) Before holding the public hearing described in Subsection (3)(a)(v) or (4)(b), a
498      taxing entity proposing a tax rate increase under this section shall publish an
499      advertisement regarding the proposed tax increase:
500(i) electronically in accordance with Section 45-1-101; and
501(ii) as a class A notice under Section 63G-30-102.
502      (b) The advertisement described in Subsection (6)(a) shall:
503(i) be published for at least 14 days before the day on which the taxing entity
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504conducts the public hearing described in Subsection (3)(a)(v) or (4)(b); and
505   (ii) substantially be in the following form and content:
506"NOTICE OF PROPOSED TAX INCREASE
507(NAME OF TAXING ENTITY)
508The (name of the taxing entity) is proposing to increase its property tax revenue.
509•    The (name of the taxing entity) tax on a (insert the average value of a residence in
510the taxing entity rounded to the nearest thousand dollars) residence would increase from
511$______ to $________, which is $_______ per year.
512•    The (name of the taxing entity) tax on a (insert the value of a business having the
513same value as the average value of a residence in the taxing entity) business would increase
514from $________ to $_______, which is $______ per year.
515•    If the proposed budget is approved, (name of the taxing entity) would receive an
516additional $______ in property tax revenue per year as a result of the tax increase.
517•    If the proposed budget is approved, (name of the taxing entity) would increase its
518property tax budgeted revenue by ___% above last year's property tax budgeted revenue
519excluding eligible new growth.
520The (name of the taxing entity) invites all concerned citizens to a public hearing for the
521purpose of hearing comments regarding the proposed tax increase and to explain the reasons
522for the proposed tax increase. You have the option to[ attend or] participate in the public
523hearing in person or [online] virtually.
524PUBLIC HEARING
525Date/Time:     (date) (time)
526Location:    (name of meeting place and address of meeting place)
527[Virtual Meeting Link:     (Internet address for remote participation and live streaming
528options)]
529To obtain more information regarding the tax increase, citizens may contact the (name
530of the taxing entity) at (phone number of taxing entity) or visit ([Internet] internet address for
531the taxing entity's public website). Instructions for virtual participation in the public hearing
532will be available at (internet address for the taxing entity's public website) no later than 24
533hours before the public hearing is scheduled to begin."
534   (7) The commission:
535(a) shall adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative
536Rulemaking Act, governing the joint use of one advertisement described in
537Subsection (6) by two or more taxing entities; and
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538      (b) subject to Section 45-1-101, may authorize a taxing entity's use of a
539commission-approved direct notice to each taxpayer if:
540(i) the direct notice is different and separate from the notice required under Section
54159-2-919.1; and
542(ii) the taxing entity petitions the commission for the use of a commission-approved
543direct notice.
544  (8)(a)(i) On or before June 1, a fiscal year taxing entity shall notify the commission
545      and the county auditor of the date, time, and place of the public hearing described
546      in Subsection (4)(b).
547(ii) On or before October 1 of the current calendar year, a calendar year taxing entity
548shall notify the commission and the county auditor of the date, time, and place of
549the public hearing described in Subsection (3)(a)(v).
550      (b)(i) A public hearing described in Subsection (3)(a)(v) or (4)(b) shall be:
551(A) open to the public;
552(B) held at a meeting of the taxing entity with no items on the agenda other than
553discussion and action on the taxing entity's intent to levy a tax rate that exceeds
554the taxing entity's certified tax rate, the taxing entity's budget, a special
555district's or special service district's fee implementation or increase, or a
556combination of these items; and
557(C) available for individuals to [attend or ]participate either in person or [remotely
558through electronic means] virtually, subject to Subsection (8)(g).
559(ii) The governing body of a taxing entity conducting a public hearing described in
560Subsection (3)(a)(v) or (4)(b) shall:
561(A) state the dollar amount of additional ad valorem tax revenue that would be
562generated each year by the proposed increase in the certified tax rate;
563(B) explain the reasons for the proposed tax increase, including the taxing entity's
564intended use of additional ad valorem tax revenue described in Subsection
565(8)(b)(ii)(A);
566(C) if the county auditor compiles the list required by Section 59-2-919.2, [present
567the list at the public hearing and ]make the list available [on] from the main
568page of the taxing entity's public website for a period that begins at least 14
569days before the date on which the public hearing is held and ends on or after
570the date on which the commission certifies the taxing entity's certified tax rate;
571and
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572(D) provide an interested party desiring to be heard an opportunity to present oral
573testimony within reasonable time limits and without unreasonable restriction
574on the number of individuals allowed to make public comment.
575(c)(i) Except as provided in Subsection (8)(c)(ii), a taxing entity may not schedule a
576public hearing described in Subsection (3)(a)(v) or (4)(b) at the same time as the
577public hearing of another overlapping taxing entity in the same county.
578(ii) The taxing entities in which the power to set tax levies is vested in the same
579governing board or authority may consolidate the public hearings described in
580Subsection (3)(a)(v) or (4)(b) into one public hearing.
581(d) The county auditor shall resolve any conflict in public hearing dates and times after
582consultation with each affected taxing entity.
583(e)[(i)] A taxing entity shall hold a public hearing described in Subsection (3)(a)(v) or
584(4)(b) beginning at or after 6 p.m.
585[(ii) If a taxing entity holds a public meeting for the purpose of addressing general
586business of the taxing entity on the same date as a public hearing described in
587Subsection (3)(a)(v) or (4)(b), the public meeting addressing general business
588items shall conclude before the beginning of the public hearing described in
589Subsection (3)(a)(v) or (4)(b).]
590(f)(i) Except as provided in Subsection (8)(f)(ii), a taxing entity may not hold the
591public hearing described in Subsection (3)(a)(v) or (4)(b) on the same date as:
592(A) a public meeting for the purpose of addressing general business of the taxing
593entity; or
594(B) another public hearing of the taxing entity.
595(ii) A taxing entity may hold the following hearings on the same date as a public
596hearing described in Subsection (3)(a)(v) or (4)(b):
597(A) a budget hearing;
598(B) if the taxing entity is a special district or a special service district, a fee
599hearing described in Section 17B-1-643;
600(C) if the taxing entity is a town, an enterprise fund hearing described in Section
60110-5-107.5; or
602(D) if the taxing entity is a city, an enterprise fund hearing described in Section
60310-6-135.5.
604(g) For purposes of facilitating virtual participation in a public hearing described in
605Subsection (3)(a)(v) or (4)(b), at least 24 hours before the public hearing is scheduled
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606to begin, a taxing entity shall:
607(i) post instructions on the taxing entity's public website as to how individuals can
608connect to and participate virtually in the public hearing; and
609(ii) ensure that individuals participating in the public hearing virtually have the
610ability to:
611(A) access the public hearing electronically through video and audio connection;
612(B) provide oral testimony through video, audio, or both video and audio
613connection; and
614(C) submit written comments electronically for inclusion in the public record, both
615before and during the public hearing.
616      (h) The county in which a taxing entity is located shall, at the request of the taxing
617entity, provide assistance to the taxing entity to meet the requirements of Subsection
618(8)(g).
619  (9)(a) If a taxing entity does not make a final decision on budgeting additional ad
620      valorem tax revenue at a public hearing described in Subsection (3)(a)(v) or (4)(b),
621      the taxing entity shall:
622(i) announce at that public hearing the scheduled time and place of the next public
623meeting at which the taxing entity will consider budgeting the additional ad
624valorem tax revenue; and
625(ii) if the taxing entity is a fiscal year taxing entity, hold the public meeting described
626in Subsection (9)(a)(i) before September 1.
627      (b) A calendar year taxing entity may not adopt a final budget that budgets an amount of
628additional ad valorem tax revenue that exceeds the largest amount of additional ad
629valorem tax revenue stated at a public meeting under Subsection (3)(a)(i).
630      (c) A public hearing on levying a tax rate that exceeds a fiscal year taxing entity's
631certified tax rate may coincide with a public hearing on the fiscal year taxing entity's
632proposed annual budget.
633  (10)(a) A county auditor may conduct an audit to verify a taxing entity's compliance
634      with [Subsection (8)] this section.
635      (b) If the county auditor, after completing an audit, finds that a taxing entity has failed to
636meet the requirements of [Subsection (8)] this section, the county auditor shall
637prepare and submit a report of the auditor's findings to the commission.
638      [(c) The commission may not certify a tax rate that exceeds a taxing entity's certified tax
639rate if, on or before September 15 of the year in which the taxing entity is required to
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640hold the public hearing described in Subsection (3)(a)(v) or (4)(b), the commission
641determines that the taxing entity has failed to meet the requirements of Subsection (8).]
642   (11) For a fiscal year within a truth-in-taxation exemption period, a taxing entity may adopt
643a budget that is equal to or less than the base year budgeted revenue without complying
644with this section.
645   (12)(a) Subject to Subsection (12)(b), a taxing entity subject to this section shall provide
646to the commission all evidence of compliance with the requirements of this section
647within seven days from the date on which the taxing entity adopts a final budget.
648(b) A taxing entity shall furnish to the commission any information the commission
649requires to certify the taxing entity's compliance with the requirements of this section.
650(c) The commission may not certify a tax rate that exceeds a taxing entity's certified tax
651rate if, within 30 days from the date on which the taxing entity provides to the
652commission evidence of compliance under Subsection (12)(a), the commission
653determines that the taxing entity has failed to meet the requirements of this section.
654Section 5. Section 59-2-1330 is amended to read:
65559-2-1330 (Effective 05/06/26) (Applies beginning 01/01/26). Payment of
656   property taxes -- Payments to taxpayer by state or taxing entity -- Refund of penalties
657   paid by taxpayer -- Refund of interest paid by taxpayer -- Payment of interest to
658   taxpayer -- Judgment levy -- Objections to assessments by the commission -- Time
659   periods for making payments to taxpayer.
660   (1) Unless otherwise specifically provided by statute, property taxes shall be paid directly
661to the county treasurer:
662(a) on the date that the property taxes are due; and
663(b) as provided in this chapter.
664   (2)(a) The county treasurer shall apply a payment that is insufficient to cover both a tax
665or tax notice charge that is deferred in accordance with Chapter 2a, Part 7,
666Discretionary Deferral, Chapter 2a, Part 8, Nondiscretionary Deferral for Property
667with Qualifying Increase, or Chapter 2a, Part 9, Nondiscretionary Deferral for
668Elderly Property Owners, and a current year property tax or tax notice charge to the
669current tax year property tax or tax notice charge first.
670(b) The county treasurer shall send notice to the property owner:
671(i) that the payment was insufficient;
672(ii) that the county applied the payment to the tax or tax notice charges for the current
673tax year; and
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674(iii) of the amount of tax and tax notice charge that is outstanding.
675  (3) A taxpayer shall receive payment as provided in this section if a reduction in the amount
676      of any tax levied against any property for which the taxpayer paid a tax or any portion of
677      a tax under this chapter for a calendar year is required by a final and unappealable
678      judgment or order described in Subsection (4) issued by:
679      (a) a county board of equalization;
680      (b) the commission; or
681      (c) a court of competent jurisdiction.
682  (4)(a) For purposes of Subsection (3), the state or any taxing entity that has received
683      property taxes or any portion of property taxes from a taxpayer described in
684      Subsection (2) shall pay the taxpayer if:
685(i) the taxes the taxpayer paid in accordance with Subsection (3) are collected by an
686authorized officer of the:
687(A) county; or
688(B) state; and
689(ii) the taxpayer obtains a final and unappealable judgment or order:
690(A) from a county board of equalization, the commission, or a court of competent
691jurisdiction;
692(B) against:
693(I) the taxing entity or an authorized officer of the taxing entity; or
694(II) the state or an authorized officer of the state; and
695(C) ordering a reduction in the amount of any tax levied against any property for
696which a taxpayer paid a tax or any portion of a tax under this chapter for the
697calendar year.
698      (b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
699in accordance with Subsections (5) through (8).
700  (5) For purposes of Subsections (3) and (4), the amount the state shall pay to a taxpayer is
701      equal to the sum of:
702      (a) if the difference described in this Subsection (5)(a) is greater than $0, the difference
703between:
704(i) the tax the taxpayer paid to the state in accordance with Subsection (3); and
705(ii) the amount of the taxpayer's tax liability to the state after the reduction in the
706amount of tax levied against the property in accordance with the final and
707unappealable judgment or order described in Subsection (4);
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708(b) if the difference described in this Subsection (5)(b) is greater than $0, the difference
709between:
710(i) any penalties the taxpayer paid to the state in accordance with Section 59-2-1331;
711and
712(ii) the amount of penalties the taxpayer is liable to pay to the state in accordance
713with Section 59-2-1331 after the reduction in the amount of tax levied against the
714property in accordance with the final and unappealable judgment or order
715described in Subsection (4);
716(c) as provided in Subsection (7)(a), interest the taxpayer paid in accordance with
717Section 59-2-1331 on the amounts described in Subsections (5)(a) and (5)(b); and
718(d) as provided in Subsection (7)(b), interest on the sum of the amounts described in
719Subsections (5)(a), (5)(b), and (5)(c).
720   (6) For purposes of Subsections (3) and (4), the amount a taxing entity shall pay to a
721taxpayer is equal to the sum of:
722(a) if the difference described in this Subsection (6)(a) is greater than $0, the difference
723between:
724(i) the tax the taxpayer paid to the taxing entity in accordance with Subsection (3);
725and
726(ii) the amount of the taxpayer's tax liability to the taxing entity after the reduction in
727the amount of tax levied against the property in accordance with the final and
728unappealable judgment or order described in Subsection (4);
729(b) if the difference described in this Subsection (6)(b) is greater than $0, the difference
730between:
731(i) any penalties the taxpayer paid to the taxing entity in accordance with Section
73259-2-1331; and
733(ii) the amount of penalties the taxpayer is liable to pay to the taxing entity in
734accordance with Section 59-2-1331 after the reduction in the amount of tax levied
735against the property in accordance with the final and unappealable judgment or
736order described in Subsection (4);
737(c) as provided in Subsection (7)(a), interest the taxpayer paid in accordance with
738Section 59-2-1331 on the amounts described in Subsections (6)(a) and (6)(b); and
739(d) as provided in Subsection (7)(b), interest on the sum of the amounts described in
740Subsections (6)(a), (6)(b), and (6)(c).
741   (7) Except as provided in Subsection (8):
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742      (a) interest shall be refunded to a taxpayer on the amount described in Subsection (5)(c)
743or (6)(c) in an amount equal to the amount of interest the taxpayer paid in accordance
744with Section 59-2-1331; and
745      (b) interest shall be paid to a taxpayer on the amount described in Subsection (5)(d) or
746(6)(d):
747(i) beginning on the later of:
748(A) the day on which the taxpayer paid the tax in accordance with Subsection (3);
749or
750(B) January 1 of the calendar year immediately following the calendar year for
751which the tax was due;
752(ii) ending on the day on which the state or a taxing entity pays to the taxpayer the
753amount required by Subsection (5) or (6); and
754(iii) at the interest rate earned by the state treasurer on public funds transferred to the
755Public Treasurers' Investment Fund as defined in Section 51-7-3.
756  (8)(a) The state may not pay or refund interest to a taxpayer under Subsection (7) on any
757      tax the taxpayer paid in accordance with Subsection (3) that exceeds the amount of
758      tax levied by the state for that calendar year as stated on the notice required by
759      Section 59-2-1317.
760      (b) A taxing entity may not pay or refund interest to a taxpayer under Subsection (7) on
761any tax the taxpayer paid in accordance with Subsection (3) that exceeds the amount
762of tax levied by the taxing entity for that calendar year as stated on the notice
763required by Section 59-2-1317.
764  (9)(a) Each taxing entity may levy a tax to pay the taxing entity's share of the final and
765      unappealable judgment or order described in Subsection (4) if:
766(i) the final and unappealable judgment or order is issued no later than 15 days prior
767to the date the certified tax rate is set under Section 59-2-924;
768(ii) the following information is included on the notice under Section 59-2-919.1:
769(A) the date, time, and location of the public hearing at which the judgment levy
770will be considered;
771[(A)] (B) the amount of the judgment levy; and
772[(B)] (C) the term of the judgment levy;[ and]
773(iii) the taxing entity complies with the requirements of Section 59-2-918.5; and
774[(iii)] (iv) the final and unappealable judgment or order is an eligible judgment, as
775defined in Section 59-2-102.
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776(b) The levy under Subsection (9)(a) is in addition to, and exempt from, the maximum
777levy established for the taxing entity.
778(c) A taxing entity may divide a judgment levy under this Subsection (9) and impose the
779judgment levy in more than one subsequent tax year.
780   (10)(a) A taxpayer that objects to the assessment of property assessed by the
781commission shall pay, on or before the property tax due date established under
782Subsection 59-2-1331(1) or Section 59-2-1332, the full amount of taxes stated on the
783notice required by Section 59-2-1317 if:
784(i) the taxpayer has applied to the commission for a hearing in accordance with
785Section 59-2-1007 on the objection to the assessment; and
786(ii) the commission has not issued a written decision on the objection to the
787assessment in accordance with Section 59-2-1007.
788(b) A taxpayer that pays the full amount of taxes due under Subsection (10)(a) is not
789required to pay penalties or interest on an assessment described in Subsection (10)(a)
790unless:
791(i) a final and unappealable judgment or order establishing that the property
792described in Subsection (10)(a) has a value greater than the value stated on the
793notice required by Section 59-2-1317 is issued by:
794(A) the commission; or
795(B) a court of competent jurisdiction; and
796(ii) the taxpayer fails to pay the additional tax liability resulting from the final and
797unappealable judgment or order described in Subsection (10)(b)(i) within a 45-day
798period after the county bills the taxpayer for the additional tax liability.
799   (11)(a) Except as provided in Subsection (11)(b), a payment that is required by this
800section shall be paid to a taxpayer:
801(i) within 120 days after the day on which the final and unappealable judgment or
802order is issued in accordance with Subsection (4); or
803(ii) if a judgment levy is imposed in accordance with Subsection (9):
804(A) if the payment to the taxpayer required by this section is $15,000 or more, no
805later than December 31 of the first year in which the judgment levy is imposed;
806and
807(B) if the payment to the taxpayer required by this section is less than $15,000,
808within 120 days after the date the final and unappealable judgment or order is
809issued in accordance with Subsection (4).
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810      (b) A taxpayer may enter into an agreement:
811(i) that establishes a time period other than a time period described in Subsection
812(11)(a) for making a payment to the taxpayer that is required by this section; and
813(ii) with:
814(A) an authorized officer of a taxing entity for a tax imposed by a taxing entity; or
815(B) an authorized officer of the state for a tax imposed by the state.
816Section 6. Effective Date.
817  (1) Except as provided in Subsection (2), this bill takes effect May 6, 2026.
818  (2) The actions affecting the following sections take effect on January 1, 2027:
819      (a) Section 59-2-103.5 (Effective 01/01/27); and
820      (b) Section 59-2-109 (Effective 01/01/27).
821Section 7. Retrospective operation.
822  (1) Except as provided in Subsection (2), this bill has retrospective operation for a taxable
823      year beginning on or after January 1, 2026.
824  (2) The following sections have no retrospective operation:
825      (a) Section 59-2-103.5 (Effective 01/01/27); and
826      (b) Section 59-2-109 (Effective 01/01/27).
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