All Roll Calls
Yes: 166 • No: 1
UtahS.B. 2062026 General SessionSenateWALLET
Tax Amendments
Sponsored By: Wayne A. Harper (Republican)
Signed by Governor
Community Reinvestment AgenciesPolitical Subdivisions (Local Issues)Property TaxState Tax CommissionProperty Tax CollectionUtah Inland Port AuthorityCounty OfficersDivision of FinanceMilitary Installation Development AuthorityState TreasurerTax Increment Financing
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Bill Overview
Analyzed Economic Effects
23 provisions identified: 9 benefits, 2 costs, 12 mixed.
Affordable housing rules in first-home zones
In first home investment zones, renters qualify as affordable if household income is 80% or less of the county median. Owner-occupied homes count as affordable if the price is 80% or less of the county median home price. A plan may use the ZIP code median instead if it proves this meets the zone’s goals and uses county tax data. An extraterritorial home in a plan must be owner-occupied for at least 25 years.
City homeownership zones: funding and limits
Starting May 6, 2026, counties must send cities 60% of property tax increment from properties inside a city homeownership zone. Cities can spend zone funds on listed improvements (like systems work, water exaction fees, lighting, and cleanup). Admin costs are capped at 3% of total zone funds. Cities may use zone money to pay bond costs and can create public infrastructure districts and pledge zone funds. Cities can pay participants, but only under a written agreement that limits how the money is used. Entities receiving increment for these zones must follow state tax‑increment reporting rules. A city can receive and use increment for up to 15 consecutive years.
Authority projects: longer tax capture, exemptions
An authority may receive up to 75% of a parcel’s property tax allocation for up to 25 years, and up to 15 more years if the board finds significant benefit. The 25‑year clock starts when the first allocation from that parcel is received, and an improved part of a parcel may be split into its own tax ID. Authority‑owned hotels and commercial condo units are exempt from state property and privilege taxes, even if run by a private operator under a long agreement.
Annual charge on unfinished project parcels
If a private parcel in a project area has no certificate of occupancy, the owner pays 1.2% each year on the value above the base value. The county bills and collects this like property tax. Late payments get the same penalties and interest as property tax. The charge ends when the parcel becomes subject to property tax.
New fund and county levies for property tax
The law creates the Property Tax Valuation Fund to run the statewide property tax system (STATS). Tangible assets and unspent money bought with the multicounty assessing levy move to the STATS program manager. Each county must impose a multicounty assessing and collecting levy, send revenue quarterly by the 10th day after each quarter, and pay 10% annual interest on late transfers. This levy is exempt from some levy limits and hearings. Counties may also levy an extra county property tax outside some limits to fund valuation, assessment, and reappraisal programs. Counties and the program manager must keep separate budgets and file an annual report by October 1 and a detailed budget by December 31 (for 2026, the detailed budget is due May 6, 2026).
First home zones: funds, caps, safeguards
Cities may receive and use first home investment zone funds for project and system improvements and zone setup. Admin costs are capped at 2% of total zone funds plus gap analysis costs. Cities can use zone money to pay bond costs and may pledge funds to back public infrastructure bonds. Payments to participants are allowed only with a written agreement that limits uses. A zone can stop collecting increment if funds are not used as allowed and no debts remain, and it cannot collect more than its approved projections. Administrators must follow state reporting and audit rules.
Rules for housing and convention center zones
Zone funds can pay for income‑targeted housing, parking, project costs, land, and admin (admin capped at 2% plus gap analysis). Child care construction is allowed but capped at 1% of housing and transit zone funds. Cities and public transit counties may use zone funds to pay bond costs and can create public infrastructure districts and pledge zone funds. Municipalities, public transit counties, and districts can receive and use these funds under interlocal agreements; funds are not counted as the taxing entity’s revenue. A zone committee can stop tax‑increment collection if money is not used for allowed purposes and there is no zone debt or binding obligations. Administrators have court standing to enforce proposals and must follow tax‑increment reporting and audit rules. The Governor’s Office must propose a convention center reinvestment zone (for a capital city by April 15, 2025; for others within 60 days of a petition).
Convention and sports zones: tax capture limits
A convention center zone can capture 100% of property tax and certain sales tax increments for 30 years. In a capital city, it may also capture up to 50% of an extra sales tax increment. Money goes to a convention center public infrastructure district in a capital city, or to the city or a district elsewhere as approved. Convention center zones do not count against the cap of eight housing and transit zones. Both housing‑transit and convention center zones cannot collect more than they disclosed in their proposals. Major sporting event venue zones can include certain local taxes as zone revenue and may add a connected secondary area within two miles and up to 50 acres.
Stronger tax-increment reporting and enforcement
The law creates the STATS program to support statewide property tax systems and appraisals. TIF entities must send project plans, budgets, maps, and deals by Jan 1, 2027 and file yearly progress starting Jan 1, 2028. The state posts a public TIF database and gives lawmakers an annual report and an independent audit every three years starting in 2030. If a TIF entity misses a filing by April 1 for two years in a row, the county treasurer withholds 20% of its tax increment until it complies. Any city, transit county, or public infrastructure district that gets tax increment must follow these reporting rules.
Clearer yearly property tax notice
Beginning July 1, 2026, county auditors send each property owner a standard notice by July 22 each year. It shows your assessed and taxable values, taxes by each taxing entity, appeal steps, and hearing dates. Notices to homeowners say people 65+, disabled, or in extreme hardship may defer taxes and list a phone number. You can get the notice by email if you opt in and the auditor verifies receipt; you can switch back by April 30. If email receipt is not verified, the auditor must mail the notice at least 10 days before hearings.
Statewide property data and appeals portal
Counties must adopt the statewide property tax system unless they prove they use a compliant mass‑appraisal system that can share data. The program manager must run a statewide portal with key property facts like parcel number, address, neighborhood, property type, year built, living area, acreage, market value, and taxable value. There is also a statewide portal to file appeals with county boards of equalization and to help counties track appeals.
Point of the Mountain tax shares
The Point of the Mountain State Land Authority is paid 75% of property tax augmentation from a transferred parcel for 25 years, starting January 1 after the transfer. The board may extend the period by 15 years with a resolution adopted before the initial 25 years end. Counties must distribute according to state law.
TIF projects: advance notice and caps
Beginning July 1, 2026, a TIF entity must hold a public authorization meeting with at least 10 days of Class A notice and then file a disclosure within 30 days. The disclosure must show the public good, the amount and type of increment, a cost analysis, a but‑for analysis, and how nearby residents and taxpayers get proportionate benefits. A present‑value analysis must compare tax‑increment outflows and taxing‑entity revenues over time. The entity must meet notice deadlines to taxing and collecting entities and the tax commission and must reauthorize if it does not act within five years. Extra increment above projections must pay down bonds or debt, and collections must stop once the disclosed amount is reached. The program manager helps set controls so collections are transparent and capped.
County homeownership zones: funds and bonds
Starting May 6, 2026, a county keeps 60% of the property tax increment from properties inside a county homeownership zone. The money is zone funds, not general county revenue, and must be used under state zone rules. Counties can use these funds to pay county bond costs and can pledge them to back public infrastructure district bonds.
Sporting venue zones: notice and reports
After a major sporting event venue zone is approved, the approving committee must notify the State Tax Commission within 90 days. The notice lists the establishment, effective dates, boundaries, and any sales and use tax base year and boundary. Each year after the zone takes effect, the creating entity must report by August 1 on implementation. By October 1 each year, the executive director sends a summary and any proposed law changes to three legislative committees.
New property tax rules for telecoms
Telecommunications providers must file a signed annual property list by March 31 for each county and tax area. The program manager values the equipment and sends tax notices by May 31. Taxes are due June 30. Counties must add the valued personal property to the provider’s real property before assessment. If a provider fails to file, it pays a penalty of 10% of estimated tax (at least $25).
1.5% heavy equipment rental recovery fee
Qualified rental businesses may charge a 1.5% recovery fee on each heavy equipment rental. Show the fee on the invoice. Do not charge government renters. The fee is not taxed and must reimburse the business for property taxes paid on the equipment in the same year. The commission will study the rate and report by Sept 30, 2027.
EITC data sharing ends in 2029
On July 1, 2029, the rule ends that required the State Tax Commission to tell Workforce Services who claimed the federal EITC. The reporting continues until that date. This changes agency data sharing but not who gets the credit.
Port authority annual tax reports
By November 1 each year, a port authority must report to local and state offices its estimated property tax differential for the current and next year. By November 30, the board must brief the state budget committee on fund use, including environmental spending, and progress on its plan and goals.
Fairpark project tax revenue shares
For tax years starting January 1, 2025, the Fairpark district is paid 90% of enhanced property tax from each private parcel until that parcel’s transition date. The board may, with a qualified owner, designate parcels to pay up to 100%; payments start January 1 after designation. The district may treat an improved part of a parcel as a separate parcel for payments, and the recorder must assign a new tax ID. The host city must receive at least 25% of enhanced property tax from its levy to repay city services in the project area.
Homeownership zones: fund use and 15-year cap
Counties can collect tax increment for a home ownership promotion zone for up to 15 straight years. A municipal or county agency may manage zone funds after signing an interlocal agreement. Funds must be used in or for the direct benefit of the zone and do not become general city revenue. The law allows spending on project costs like water, lighting, and cleanup, but admin costs are capped at 3% of zone funds.
Tighter oversight of county property assessments
The commission must publish yearly studies and can order counties to adjust assessment rates to match market values. If a county does not factor as ordered, the commission does it and bills the county. Starting Jan 1, 2027, some improvements and prior partial completions are excluded from locally assessed new growth. The law also repeals the rule that governed allocations from the Property Tax Valuation Fund.
When these tax changes start
Most changes take effect May 6, 2026. Changes to Section 59‑2‑919.1 take effect July 1, 2026. Changes to Section 59‑2‑924 take effect January 1, 2027. Some listed tax code changes apply retroactively to January 1, 2026.
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Sponsors & Cosponsors
Sponsor
Wayne A. Harper
Republican • Senate
Cosponsors
R. Neil Walter
Republican • House
Roll Call Votes
House vote • 3/6/2026
House/ substituted
Yes: 0 • No: 0
Senate vote • 3/6/2026
Senate/ concurs with House amendment
Yes: 26 • No: 0
House vote • 3/6/2026
House/ passed 3rd reading
Yes: 64 • No: 1
House vote • 3/2/2026
House Comm - Favorable Recommendation
Yes: 9 • No: 0
House vote • 3/2/2026
House Comm - Amendment Recommendation
Yes: 9 • No: 0
Senate vote • 2/24/2026
Senate/ passed 3rd reading
Yes: 25 • No: 0
Senate vote • 2/23/2026
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/23/2026
Senate/ passed 2nd reading
Yes: 27 • No: 0
Senate vote • 2/23/2026
Senate/ substituted
Yes: 0 • No: 0
Senate vote • 2/20/2026
Senate/ circled
Yes: 0 • No: 0
House vote • 2/2/2026
Senate Comm - Favorable Recommendation
Yes: 3 • No: 0
House vote • 2/2/2026
Senate Comm - Substitute Recommendation
Yes: 3 • No: 0
Actions Timeline
Governor Signed
3/23/2026Senate/ to Governor
3/16/2026SenateSenate/ received enrolled bill from Printing
3/16/2026SenateSenate/ enrolled bill to Printing
3/12/2026SenateEnrolled Bill Returned to House or Senate
3/12/2026Draft of Enrolled Bill Prepared
3/11/2026Bill Received from Senate for Enrolling
3/11/2026Senate/ signed by President/ sent for enrolling
3/11/2026SenateSenate/ received from House
3/11/2026SenateHouse/ to Senate
3/7/2026HouseHouse/ signed by Speaker/ returned to Senate
3/7/2026HouseHouse/ received from Senate
3/7/2026HouseSenate/ to House
3/6/2026SenateSenate/ concurs with House amendment
3/6/2026SenateSenate/ placed on Concurrence Calendar
3/6/2026SenateSenate/ received from House
3/6/2026SenateHouse/ to Senate
3/6/2026HouseHouse/ passed 3rd reading
3/6/2026HouseHouse/ substituted
3/6/2026HouseHouse/ 3rd reading
3/6/2026HouseHouse/ Rules to 3rd Reading Calendar
3/6/2026HouseHouse/ 3rd Reading Calendar to Rules
3/3/2026HouseHouse/ 2nd reading
3/3/2026HouseHouse/ comm rpt/ amended
3/3/2026HouseHouse Comm - Favorable Recommendation
3/2/2026
Bill Text
Enrolled
3/12/2026
Substitute #4
3/4/2026
Amended 3/3/2026 10:03:297
3/3/2026
Substitute #3
2/22/2026
Substitute #2
2/17/2026
Substitute #1
2/2/2026
Introduced
1/27/2026
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